Colton City Council
February 26, 2024

1 NOTICE AND CALL OF SPECIAL MEETING
It is hereby noticed that the City Council of the City of Colton has called a Special Meeting on February 26, 2024 at 5:00 PM. for the purpose of discussing the item(s) listed below.

The Meeting will be held in the City Council Chambers at City Hall, 650 N. La Cadena Drive, Colton, CA 92324.

CITY OF COLTON
City Hall, Council Chambers
650 N. La Cadena Drive
Colton, CA 92324
Website: www.coltonca.gov

Mayor Frank J. Navarro
Council Members:

David J. Toro – District 1
Kelly J. Chastain – District 2
Dr. Luis S. Gonzalez – District 3
John R. Echevarria – District 4

City Treasurer Aurelio De La Torre

City Manager William R. Smith
City Attorney Carlos Campos
Deputy City Clerk Stephanie M. Vargas

AGENDA

CITY COUNCIL,

COLTON UTILITY AUTHORITY, COLTON PUBLIC FINANCING AUTHORITY,

COLTON HOUSING AUTHORITY

SPECIAL MEETING
MONDAY, FEBRUARY 26, 2024 – 5:00 P.M.

CITY HALL, COUNCIL CHAMBERS

OPEN SESSION
5:00 P.M.

ROLL CALL

MAYOR AND COUNCIL ITEMS

GIFT DISCLOSURES
Prior to rendering a decision in any proceeding involving a license, permit, contract or other entitlement pending before the City Council, any Council Member who has received been promised a gift or gifts aggregating $50.00 or more in value within the preceding twelve months from a party or participant in the proceeding shall disclose that fact either orally or in writing during open session. This disclosure shall be made part of the official public record of the proceeding, either as part of the minutes of the meeting or a s a separate writing filed with the city. (CMC Section 2.04.030)

2 AB 1234 ORAL REPORTS
Members of the City Council shall provide brief reports on meetings attended at the expense of the city. (GC Section 53232.3(d))

MAYOR AND COUNCIL DISCUSSION ITEMS

BUSINESS ITEMS
To speak on business items, it is requested that you obtain a card from the City Clerk and complete it by noting the agenda item number, as well as whether you are in favor, opposition or neither, and give it to the City Clerk. The applicant will be allowed 5 minutes to address the Council and all other persons will be allowed 3 minutes; provided, however, that the presiding officer shall have certain discretion to extend or limit time as provided for in the City Council Manual of Procedure.

(1) Water and Wastewater Rate Study - Water and Wastewater Rate Study [Staff Person: Brian Dickinson]

ADJOURNMENT

3 I, Stephanie M. Vargas, Deputy City Clerk or my designee, hereby certify that a true and correct, accurate copy of the foregoing agenda was posted , at least twenty-four (24) hours prior to the meeting per Government Code 54956, at the following locations:

City of Colton City Hall 650 N. La Cadena Drive
City of Colton Website, www.coltonca.gov <http://www.coltonca.gov>

PROCEDURES FOR ADDRESSING CITY COUNCIL

For the Official Record, it is requested that you obtain a card from the Deputy City Clerk and complete it by noting a specific item number on the Agenda, if applicable, or you can identify the subject that you wish to address under the Public Comment portion of the Agenda. The City Council encourages public input on all City issues within the Rules of Decorum. Speakers will be limited to the time periods provided on the Agenda; provided, however, that the presiding officer shall have c ertain discretion to extend or limit time as provided for in the City Council Manual of Procedure.

RULES OF DECORUM

To help conduct the business of the City Council in an orderly fashion, the City Council has adopted rules pertaining to decorum and order , as provided for in the City Council Manual of Procedure. The City Council will strictly enforce these rules in order to allow full expression of ideas and opinions by councilmembers, staff and the public. Generally, the City's rules of decorum prohibit comments or actions which willfully disrupt the meeting. All remarks and questions shall be addressed to the Council as a whole and not to any particular member. No individual Councilmember or member of the City staff shall be questioned without first o btaining permission from the Presiding Officer. The City Council asks that all persons - including councilmembers, staff and the public - act and speak respectfully.

NOTICE TO PUBLIC

Staff reports or other written documentation relating to each item re ferred to, on the Agenda, are available for public inspection at the following locations: Office of the City Clerk, 650 N. La Cadena Drive, Colton, CA; City of Colton Public Library, 656 9 th St., Colton, CA; or the City of Colton Internet Website, www.coltonca.gov. Any person having questions concerning any item on the Agenda may call the City Clerk at 370 -5191 to make inquiry concerning the nature of the item described on the Agenda. The City Clerk shall direct inquiries to the appropriate office.

All matters listed under the Consent Calendar are considered by the City Council to be routine and will all be enacted by one motion. There will be no separate discussion of these items prior to the time the City Council v otes on the motion, unless councilmembers, staff or the public request that specific items be discussed and/or removed for separate discussions or action.

4 In compliance with the American with Disabilities Act, if you need special assistance to participate in a City Meeting, please contact the City Clerk’s Office at 909 -370-5001. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

LEGAL CHALLENGES

If you challenge in co urt any discussion or action taken concerning an item on this Agenda, you may be limited to raising only those issues you or someone else raised during the meeting or in written correspondence delivered to the City at or prior to the City's consideration o f the item at the meeting.

MANUAL OF PROCEDURE

The City Council adopted its Manual of Procedure pursuant to Resolution No. R-41-18. Copies are available in the Office of the City Clerk.

ITEM NO. 1

STAFF REPORT

DATE: FEBRUARY 26, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: BILL SMITH, CITY MANAGER
PREPARED BY: BRIAN DICKINSON, PUBLIC WORKS DIRECTOR
SUBJECT: WATER AND WASTEWATER RATE STUDY

RECOMMENDED ACTION

Staff recommends that the City Council take the following action:

Approve Water and Wastewater Rate Studies, and set future Public Hearing for the regular City Council meeting of May 7, 2024, Proposed Adjustment to Water and Wastewater Rates.

BACKGROUND

The City of Colton Public Works and Utility Services Department operates and maintains the water and wastewater systems. The Water system consists of approximately 158 miles of pipelines ranging in size from 2 inches to 30 inches in diameter, within four distinct p ressure zones. Water supply consists of 100% groundwater produced from X active wells, 3 booster pump stations, and 5 storage reservoirs with 11.3 million gallons capacity, to meet max day and peak hour demands and fire flows. The Wastewater system consists of approximately 170 miles of gravity flow pipelines up to 30 inches diameter, of which approximately 126 miles are City of Colton, and approximately 41 miles are the City of Grand Terrace, which Colton operates and maintains under agreement. The City al so operates and maintains 9 pumping lift stations, a Wastewater Treatment Facility and also is a participant with the City of San Bernardino in the RIX facility.

The City and Colton Utility Authority’s (CUA) water rates pay for all operating expenses as w ell as fund, on a pay -as-you go basis, capital projects and debt services (annual principal + interest payments on outstanding debt and any future debt obligations). When the City and CUA issued bonds in the past to fund significant capital projects, the C ity and CUA guaranteed, and committed in these agreements, to establish and maintain water rates at levels sufficient to cover 1 Packet Pg. 5
Staff Report to the Mayor and City Council
Water and Wastewater Rate Study
February 26, 2024

or pay for all debt service payments. The City and CUA are committed to replacing aging water infrastructure and securing an adequate water supply to meet current and future demands.

The study concluded that the current revenues from the City’s water rates are and will be insufficient to cover (1) Current and projected operations and maintenance costs for the water system - in part icular energy, chemical supplies, water treatment costs, and debt service obligations; and (2) The capital infrastructure improvements needed to maintain, repair and update the City’s aging water system. Accordingly, the study determined that rate increas es are necessary to avoid operational deficits, further depletion of reserves, and an inability to address infrastructure and water quality improvements.

Water Rates were last adjusted in Fiscal Year 2015/16 through 2019/20.

Wastewater Rates were last adjusted in Fiscal Year 2014/15 through 2017/18.

ISSUES/ANALYSIS

On April 5, 2022, the City Council and CUA approved the Professional Services Agreement with NBS, Inc. in the amount of $88,160 for the Water and Wastewater Cost of Service Rate Studies.

NBS determined an updated Rate structure that would meet the fiscal needs of the City and CUA. Key components of the rate structure to be proposed are: (1) conformity with current state laws, (2) fair and objective rates (3) establish a methodology to retire debt in a reasonable time frame (4) accountable and stable (5) easy to administer and explain to customers (6) meet revenue requirements of existing bond and any future bond sales.

At the January 16, 2024 City Council meeting staff and Consultant made a presentation on the Water and Wastewater Rates study. Staff was directed to bring back for a Workshop, and include the full study, including Capital Improvement Projects list. Staff was also requested to provide a timeline of previous rate studies. Followi ng are timelines of the Water and Wastewater rate studies and rate implementation:

Water

 September 13, 2013, City Council awarded contract to NBS to conduct a Water Rate Study. Study was delayed due to newly implemented State requirements for conservation.
 May 15, 2015, City Council awarded amended contract to include water conservation analysis.
 Water Rate Study was presented to Utilities Commission on July 13, 2015, at which it was requested that Water Rate Study and Financial Plan be brought back to meeting of August 10, 2015.
1 Packet Pg. 6
Staff Report to the Mayor and City Council
Water and Wastewater Rate Study
February 26, 2024

 At the August 10, 2015, Utilities Commission meeting, commissioners made additional recommendations and requested one last review and recommendations at the September 14, 2015 meeting. Commissioners made recommendation to proceed with Option 2 of the presented options.
 At the October 6, 2015, City Council meeting a Rate Study was presented and Public Hearing was set for December 1, 2015.
 The City Council conducted a Public Hearing at the April 5, 2016, City Council meeting.  At the April 19, 2016, City Council meeting, Water rates were adopted effective July 1, 2016.
 Rates were implemented for FY 2016/17 through 2019/20.  At the April 5, 2022, City Council meeting the City Council approved a contract with NBS to Conduct the current Water and Wastewater Rate studies.

Wastewater

 December 17, 2013, City Council awarded contract to NBS to conduct Wastewater Rate Study.
 At the June 13, 2014, City Council meeting, City Council had a presentation of Wastewater rates with proposed Ordinance O-07-14. Rates were not Adopted.  At the July 1, 2014, City Council meeting Ordinance O-07-14 was approved, adopting new Wastewater rates effective July 1, 2014 through June 30, 2018.  At the April 5, 2022, City Council meeting, the City Council approved a contract with NBS to Conduct the current Water and Wastewater Rate studies.

FISCAL IMPACTS

Rate increases will provide the following: 1) Increase revenues to cover increasing operations and maintenance costs. 2) Provide funding to bond t he major Capital Improvement Projects (reservoir construction, new wells, transmission and distribution water lines, water efficiency and water quality improvements).

ALTERNATIVES

Provide alternative direction to staff.

ATTACHMENT

1. 2024_02_26_Colton City Council Presentation_DRAFT_v2

2. Colton_Technical Memorandum_Presentation Appendices
1 Packet Pg. 7
1 City of Colton
Water and Sewer Rates
February 26, 2024

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Attachment: 2024_02_26_Colton City Council Presentation_DRAFT_v2 (4382 : Water and Wastewater 2 Rate Study Overview

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Attachment: 2024_02_26_Colton City Council Presentation_DRAFT_v2 (4382 : Water and Wastewater 3 Rate Study Purpose & Methodology
Why Prepare a Rate Study?

1. Required to comply with Prop 218

2. Typically prepared every 5 years

3. They demonstrate the fairness & equity of customer rates General Rate Study Methodology:

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Attachment: 2024_02_26_Colton City Council Presentation_DRAFT_v2 (4382 : Water and Wastewater 4 Timeline of Water Rates in Colton
• September 13, 2013 City Council awarded contract to NBS to conduct Water Rate Study. Study was delayed due to newly implemented State requirements for conservation.
• May 15, 2015 City Council awarded amended contract to include water conservation analysis.
• Water Rate Study was presented to Utilities Commission on July 13, 2105, to which it was requested Water Rate Study and Financial Plan be brought back to meeting of August 10, 2015.
• At the August 10, 2015 Utilities Commission meeting, commissioners made additional recommendations and requested one last review and recommendations at the September 14, 2015 meeting. Commissioners made recommendation to proceed with Option 2 of the presented options.
• At the October 6, 2015 City Council meeting a Rate Study was presented and Public Hearing was set for December 1, 2015.
• The City Council conducted a Public Hearing at the April 5, 2016 City Council meeting. • At the April 19, 2016 Water Rates were adopted effective July 1, 2016 • Rates were implemented for FY 2016/17 through 2019/20. • At the April 5, 2022 City Council meeting the City Council approved a contract with NBS to Conduct the current Water and Wastewater Rate studies.

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Attachment: 2024_02_26_Colton City Council Presentation_DRAFT_v2 (4382 : Water and Wastewater 5 Timeline of Sewer Rates in Colton
• December 17, 2013 City Council awarded contract to NBS to conduct Wastewater Rate Study.
• At the June 13, 2014 City Council meeting City Council had presentation of wastewater rates with Resolution R-51-14. Rates were not Adopted. • At the July 1, 2014 City Council meeting Ordinance O-007-14 was approved adopting new Wastewater rates effective July 1, 2014 through June 30, 2018.

Water Rates were last adjusted in Fiscal Year 2015/16 through 2019/20.

Wastewater Rates were last adjusted in Fiscal Year 2014/15 through 2017/18.

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Attachment: 2024_02_26_Colton City Council Presentation_DRAFT_v2 (4382 : Water and Wastewater 6 Inflation Since Last Rate Increases
Below provides a general overview of price increases since the last rate increases based on the U.S. Bureau of Labor Statistics Consumer Price Index (CPI).
• Water Rates:
• Last Rate Increase: 7/1/2020
• Change in prices due inflation: 18.39%
• Sewer Rates:
• Last Increase: 7/1/2017
• Change in prices due inflation: 25.31%

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Attachment: 2024_02_26_Colton City Council Presentation_DRAFT_v2 (4382 : Water and Wastewater 7 Capital Improvement Needs
Below provides a general overview of the Capital
Improvement needs for the Water and Sewer Utilities.
• Water Utility:
• $118 million in CIP identified for next 5 years
• Required investments identified include reservoir,
well rehabilitation, trucks & equipment, pipeline
projects
• Sewer Utility:
• $87 million in CIP identified for next 5 years
• Required investments identified include $55 million
for Water Reclamation Plant

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Attachment: 2024_02_26_Colton City Council Presentation_DRAFT_v2 (4382 : Water and Wastewater 8 Rate Study Methodology – Financial Plan
What are “Net Revenue Requirements”?
The Financial Plan estimates the costs to be recovered from customer rates:

These costs should also include funding for adequate levels of reserves.

O&M Costs
+ Debt Service
+ Capital Costs
- Non-Rate Revenues*
Net Revenue Requirements
* licenses, fines, application fees, etc.

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Attachment: 2024_02_26_Colton City Council Presentation_DRAFT_v2 (4382 : Water and Wastewater 9 Water Rate Study:

Rate Adjustment Alternatives

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Attachment: 2024_02_26_Colton City Council Presentation_DRAFT_v2 (4382 : Water and Wastewater 10 Water Rate Study Objectives
• Ensuring water rates will be able to cover all operating and maintenance costs.
• Ensuring sufficient funding for essential Capital Improvement Projects. • Maintaining appropriate reserve funds.
• Complying with legal requirements of Prop 218.

Purpose of a Water Rate Study:

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Attachment: 2024_02_26_Colton City Council Presentation_DRAFT_v2 (4382 : Water and Wastewater 11 Rate Increases and CIP Program Costs
Rate Alternative Adjustment Options:

Water rate model analysis investigated numerous revenue adjustment scenarios based on CIP and Debt Funding options.

Below are three options to consider based on the alternatives analysis:
1 CIP & FUNDING OPTION FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 1 50% CIP + $30M SRF 15% 10% 10% 6% 6%
2 50% CIP + $30M SRF 10% 10% 10% 10% 10%
3 40% CIP + $10M SRF 6% 6% 6% 6% 6%
PROP 218 RATE PERIOD
50% CIP + $30M SRF 47%
50% CIP + $30M SRF 50%
40% CIP + $10M SRF 30%
CUMULATIVE INCREASES OVER PROP 218 RATE PERIOD

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Attachment: 2024_02_26_Colton City Council Presentation_DRAFT_v2 (4382 : Water and Wastewater 12 Water Rate Adjustment: Scenario 1
Scenario 1: 50% CIP + $30M SRF Loan
“Declining Block Structure ” Rate Adjustments: 15%, 10%, 10%, 6%, 6% • Key Considerations:
• Meets minimum reserve targets and debt coverage requirements

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Attachment: 2024_02_26_Colton City Council Presentation_DRAFT_v2 (4382 : Water and Wastewater 13 Water Rate Adjustment: Scenario 2
Scenario 2: 50% CIP + $30M SRF Loan
Flat Annual Rate Adjustments: 10% Annually
• Key Considerations:
• Flat annual increase results in smaller reserve by end of five-year period • Slightly larger cumulative rate increase compared to Scenario 1

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Attachment: 2024_02_26_Colton City Council Presentation_DRAFT_v2 (4382 : Water and Wastewater 14 Water Rate Adjustment: Scenario 3
Scenario 3: 40% CIP + $10M SRF Loan
Flat Annual Rate Adjustments: 6% Annually
• Key Considerations:
• Reduced budget for CIP compared to Scenario 1 and 2
• Debt service coverage below minimum for FY 26/27 and
FY 27/28, returns above minimum in FY 28/29

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Attachment: 2024_02_26_Colton City Council Presentation_DRAFT_v2 (4382 : Water and Wastewater 15 Regional Monthly Water Bill Comparison

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Attachment: 2024_02_26_Colton City Council Presentation_DRAFT_v2 (4382 : Water and Wastewater 16 Sewer Rate Study:

Rate Adjustment Alternatives

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Attachment: 2024_02_26_Colton City Council Presentation_DRAFT_v2 (4382 : Water and Wastewater 17 Sewer Rate Study Objectives
• Ensuring sewer rates will be able to cover all operating and maintenance costs.
• Ensuring sufficient funding for essential Capital Improvement Projects. • Maintaining appropriate reserve funds.
• Complying with legal requirements of Prop 218.

Purpose of a Sewer Rate Study:

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Attachment: 2024_02_26_Colton City Council Presentation_DRAFT_v2 (4382 : Water and Wastewater 18 Rate Increases and CIP Program Costs
Rate Alternative Adjustment Options:

Sewer rate model analysis investigated numerous revenue adjustment scenarios based on CIP and Debt Funding options.

Below are three options to consider based on the alternatives analysis:
1 CIP & FUNDING OPTION FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 1 40% CIP + $70M SRF 30% 20% 10% 8% 8%
2 40% CIP + $70M SRF 18% 18% 18% 18% 18%
3 20% CIP + $40M SRF 10% 10% 10% 10% 10%
PROP 218 RATE PERIOD
CUMULATIVE INCREASES OVER PROP 218 RATE PERIOD
40% CIP + $70M SRF 76%
40% CIP + $70M SRF 90%
20% CIP + $40M SRF 50%

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Attachment: 2024_02_26_Colton City Council Presentation_DRAFT_v2 (4382 : Water and Wastewater 19 Sewer Rate Adjustment: Scenario 1
Scenario 1: 40% CIP + $70M SRF Loan
“Declining Block Structure ” Rate Adjustments: 30%, 20%, 10%, 8%, 8% • Key Considerations:
• Meets minimum reserve targets and debt coverage requirements

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Attachment: 2024_02_26_Colton City Council Presentation_DRAFT_v2 (4382 : Water and Wastewater 20 Sewer Rate Adjustment: Scenario 2
Scenario 2: 40% CIP + $70M SRF Loan
Flat Annual Rate Adjustments: 18% Annually
• Key Considerations:
• Flat annual increase results in reserve targets below minimum • Debt service coverage also drops below minimum during 5-year period

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Attachment: 2024_02_26_Colton City Council Presentation_DRAFT_v2 (4382 : Water and Wastewater 21 Sewer Rate Adjustment: Scenario 3
Scenario 3: 20% CIP + $40M SRF Loan
Flat Annual Rate Adjustments: 10% Annually
• Key Considerations:
• Reduced budget for CIP compared to Scenario 1 and 2
• Debt service coverage below minimum for FY 26/27 and
FY 27/28, returns above minimum in FY 28/29

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Attachment: 2024_02_26_Colton City Council Presentation_DRAFT_v2 (4382 : Water and Wastewater 22 Regional Monthly Sewer Bill Comparison

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Attachment: 2024_02_26_Colton City Council Presentation_DRAFT_v2 (4382 : Water and Wastewater 23 Regional Rate Comparison:

Combined Water & Sewer Bills

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Attachment: 2024_02_26_Colton City Council Presentation_DRAFT_v2 (4382 : Water and Wastewater 24 1.a
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Attachment: 2024_02_26_Colton City Council Presentation_DRAFT_v2 (4382 : Water and Wastewater 25 Questions & Discussion

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Attachment: 2024_02_26_Colton City Council Presentation_DRAFT_v2 (4382 : Water and Wastewater

helping communities
fund tomorrow since 1996
nbsgov.com | 800.676.7516
NBS

TECHNICAL MEMORANDUM
TO: Brian Dickinson, Director of Public Works and Utility Services, City of Colton FROM: Jeremy Tamargo, NBS
DATE: February 20, 2024
SUBJECT: City of Colton Special Council Meeting on Preliminary Proposed Water and Sewer Rates – Supplemental Appendices for Council Presentation
s
Executive Summary
During the January 16, 2024, City Council requested additional supplemental handouts for the rate study presentation on the preliminary draft water and sewer rates. Specifically, Council requested handouts containing the details of the rate study components for both the water and sewer utility rate studies.

This handout provides the requested details to supplement the upcoming February 26, 2024 City Council presentation on the preliminary results for both the water and sewer utility rate studies.

Once City staff receive direction from Council on the preferred alternatives for the water and sewer rate adjustments, NBS will prepare the full rate study report in accordance with Prop 218 requirements to be presented to City Council at a future date. The Council has the final decision regarding the adoption of the proposed rates and whether to proceed with the Prop 218 approval process.

Water Rate Study – Preliminary Draft Results
Appendix A provides the preliminary draft results for the water rate study for the preferred CIP & Funding Alternative #1 (50% CIP + 30M SRF), namely:
• Financial Plan: Tables 1-8, Charts 1-3
• Capital Improvement Plan: Tables 9-14
• Debt Obligations: Table 15
• Current Water Rate Schedule: Table 16
• Cost of Service Analysis: Tables 17-23
• Rate Design: Tables 24-30
• Current vs. Proposed Water Rates: Table 31
• Bill Comparisons: Pages 28-29

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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study)

City of Colton
Technical Memorandum Page 2
Sewer Rate Study – Preliminary Draft Results
Appendix B provides the preliminary draft results for the sewer rate study for the preferred CIP & Funding Alternative #1 (40% CIP + 70M SRF), namely:
• Financial Plan: Tables 1-7, Charts 1-3
• Capital Improvement Plan: Tables 8-13
• Debt Obligations: Tables 14-17
• Current Sewer Rate Schedule: Table 18
• Cost of Service Analysis: Tables 19-27
• Rate Design: Tables 28-30
• Current vs. Proposed Water Rates: Table 31
• Bill Comparisons: Pages 28-31

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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study) CITY OF COLTON Financial Plan & Reserve Summary

WATER RATE STUDY
Financial Plan and Reserve Projections
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute 1 CIP & FUNDING OPTION FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 FY 2033/34 1 50% CIP + $30M SRF 0% 15% 10% 10% 6% 6% 5% 5% 5% 5% 5% 2 50% CIP + $30M SRF 0% 10% 10% 10% 10% 10% 5% 5% 5% 5% 5% 3 40% CIP + $10M SRF 0% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6%
50% CIP + $30M SRF 47% 0.5
50% CIP + $30M SRF 50% 0.5
40% CIP + $10M SRF 30% 0.4
TABLE 1 : FINANCIAL PLAN AND SUMMARY OF REVENUE REQUIREMENTS Budget Projected
FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 FY 2033/34 Sources of Water Funds
Rate Revenue Under Prevailing Rates1,2 13,486,900$ 13,621,769$ 13,757,987$ 13,895,567$ 14,034,522$ 14,174,867$ 14,316,616$ 14,459,782$ 14,604,380$ 14,750,424$ 14,897,928$ 15,046,907$ Non-Rate Revenues 315,536 318,691 321,878 325,097 328,348 331,632 334,948 338,297 341,680 345,097 348,548 352,035 Interest Earnings (in Operating & Capital Res 32,300 444,866 475,094 409,756 247,221 150,281 83,161 102,847 138,638 225,952 325,419 440,743 Total Sources of Funds 13,834,736$ 14,385,326$ 14,554,959$ 14,630,420$ 14,610,092$ 14,656,780$ 14,734,725$ 14,900,926$ 15,084,699$ 15,321,473$ 15,571,896$ 15,839,685$ Uses of Water Funds
Operating Expenses4
Water Operations
Salaries and Benefits 2,038,862$ 2,091,872$ 2,146,261$ 2,202,064$ 2,259,318$ 2,318,060$ 2,378,329$ 2,440,166$ 2,503,610$ 2,568,704$ 2,635,490$ 2,704,013$ Maintenance and Operations 2,832,154 2,910,640 2,992,266 3,077,156 3,165,443 3,257,260 3,352,751 3,452,061 3,555,343 3,662,757 3,774,467 3,890,646 Maint. & Operations - Perchlorate Resin 360,711 375,139 390,145 405,751 421,981 438,860 456,414 474,671 493,658 513,404 533,940 555,298 Maint. & Operations - Utilities 2,000,000 2,100,000 2,205,000 2,315,250 2,431,013 2,552,563 2,680,191 2,814,201 2,954,911 3,102,656 3,257,789 3,420,679 Other Expenses - - - - - - - - - - - - Cost Allocations 2,054,441 2,135,473 2,219,716 2,307,299 2,398,354 2,493,018 2,591,436 2,693,757 2,800,137 2,910,735 3,025,721 3,145,269 Water/Wastewater Admin/Tech
Salaries and Benefits 1,322,382 1,356,764 1,392,040 1,428,233 1,465,367 1,503,466 1,542,557 1,582,663 1,623,812 1,666,031 1,709,348 1,753,791 Maintenance and Operations 67,100 70,974 75,217 79,883 85,033 90,742 95,538 100,643 106,081 110,583 115,278 120,174 Cost Allocations (577,439) (600,537) (624,558) (649,540) (675,522) (702,543) (730,645) (759,870) (790,265) (821,876) (854,751) (888,941) Water Conservation Program 192,500 200,165 208,136 216,424 225,043 234,006 243,327 253,019 263,098 273,579 284,478 295,812 Subtotal: Operating Expenses 10,290,711$ 10,640,491$ 11,004,223$ 11,382,520$ 11,776,029$ 12,185,433$ 12,609,899$ 13,051,311$ 13,510,385$ 13,986,574$ 14,481,762$ 14,996,741$ Other Expenditures:

Existing Debt Service 1,506,173$ 1,383,223$ 1,380,923$ 1,006,269$ 1,004,519$ 1,001,769$ 1,003,019$ 1,003,019$ 1,001,769$ 1,004,269$ 1,001,869$ 1,001,869$ New Debt Service - - - - 1,481,533 1,481,533 1,481,533 1,481,533 1,481,533 1,481,533 1,481,533 1,481,533 Rate-Funded Capital Expenses - - 2,500,000 3,000,000 4,000,000 5,000,000 5,000,000 5,000,000 2,839,507 3,025,085 3,011,657 5,000,000 Subtotal: Other Expenditures 1,506,173$ 1,383,223$ 3,880,923$ 4,006,269$ 6,486,051$ 7,483,301$ 7,484,551$ 7,484,551$ 5,322,808$ 5,510,886$ 5,495,058$ 7,483,401$ Total Uses of Water Funds 11,796,884$ 12,023,714$ 14,885,146$ 15,388,788$ 18,262,080$ 19,668,735$ 20,094,451$ 20,535,862$ 18,833,193$ 19,497,461$ 19,976,820$ 22,480,143$ plus: Revenue from Rate Increases5 - - 2,063,698 3,682,325 5,494,515 6,732,920 8,067,261 9,278,320 10,569,877 11,946,876 13,414,558 13,548,704 Annual Surplus/(Deficit) - Before Rate Incre 2,037,852$ 2,361,612$ (330,186)$ (758,368)$ (3,651,989)$ (5,011,954)$ (5,359,726)$ (5,634,936)$ (3,748,494)$ (4,175,987)$ (4,404,924)$ (6,640,458)$ Annual Surplus/(Deficit) - Including Add'l. R 2,037,852$ 2,361,612$ 1,733,512$ 2,923,957$ 1,842,527$ 1,720,966$ 2,707,536$ 3,643,384$ 6,821,383$ 7,770,889$ 9,009,634$ 6,908,246$ Net Revenue Reqt. (Total Uses less Non-Rat 11,449,048$ 11,260,157$ 14,088,173$ 14,653,935$ 17,686,511$ 19,186,822$ 19,676,342$ 20,094,718$ 18,352,874$ 18,926,411$ 19,302,852$ 21,687,366$ Total Rate Revenue After Rate Increases 13,486,900$ 13,621,769$ 15,821,685$ 17,577,892$ 19,529,038$ 20,907,788$ 22,383,878$ 23,738,102$ 25,174,257$ 26,697,300$ 28,312,487$ 28,595,611$ Projected Annual Rate Revenue Increase 0.00% 0.00% 15.00% 10.00% 10.00% 6.00% 6.00% 5.00% 5.00% 5.00% 5.00% 5.00% Cumulative Increase from Annual Revenue I 0.00% 0.00% 15.00% 26.50% 39.15% 47.50% 56.35% 64.17% 72.37% 80.99% 90.04% 99.55% Debt Coverage After Rate Increase 6 2.35 2.71 2.26 3.91 1.74 1.69 2.09 2.47 3.75 4.13 4.63 3.78

1. Revenues for FY 2022/23 were provided by City Staff. Source file: 521 - Water Rev BUD FY 22-23.

2. Per City Staff, customer growth is estimated to be approximately 1% annually.

3. Interest earnings for 2022/23 are per City budget estimates. For all years beyond, it is calculated here based on historical LAIF returns and projected cash balances.

4. The FY 2022/23 operating expenses are from the City's Suggested Budget. Inflationary factors are applied to these expenses to project costs in 2023/24 and beyond.

5. Revenue from rate increases assumes an implementation date of July 1, 2023 for new rates. For each year thereafter, the assumption is that new rates will be implemented on July 1st of each year.

6. Per the Installment Purchase Agreement for the 1998 Water Revenue Bonds, the Utility is required to collect net revenues (revenue less maintenance & operations expenses) equal to 125% of the installment payment and debt service on any parity obligations.

RATE REVENUE REQUIREMENTS

SUMMARY
PROP 218 RATE PERIOD
5-Year Rate Adoption Period Projected
CUM. INCREASES OVER PROP 218 RATE PERIOD
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Financial Plan, Page 1 of 29

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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study) CITY OF COLTON Financial Plan & Reserve Summary

WATER RATE STUDY
Financial Plan and Reserve Projections
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute 1 CIP & FUNDING OPTION FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 FY 2033/34 1 50% CIP + $30M SRF 0% 15% 10% 10% 6% 6% 5% 5% 5% 5% 5% 2 50% CIP + $30M SRF 0% 10% 10% 10% 10% 10% 5% 5% 5% 5% 5% 3 40% CIP + $10M SRF 0% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6%
50% CIP + $30M SRF 47% 0.5
50% CIP + $30M SRF 50% 0.5
40% CIP + $10M SRF 30% 0.4
PROP 218 RATE PERIOD
CUM. INCREASES OVER PROP 218 RATE PERIOD
TABLE 2 : RESERVE FUND SUMMARY
Budget Projected
FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 FY 2033/34 Total Beginning Cash1 26,785,175$
Operating Reserve
Beginning Reserve Balance2 3,000,000$ 2,573,000$ 2,660,000$ 2,751,000$ 2,846,000$ 2,944,000$ 3,046,000$ 3,152,000$ 3,263,000$ 3,378,000$ 3,497,000$ 3,620,000$ Plus: Net Cash Flow (After Rate Increases) 2,037,852 2,361,612 1,733,512 2,923,957 1,842,527 1,720,966 2,707,536 3,643,384 6,821,383 7,770,889 9,009,634 6,908,246 Less: Transfer Out to Capital Replacement (2,464,852) (2,274,612) (1,642,512) (2,828,957) (1,744,527) (1,618,966) (2,601,536) (3,532,384) (6,706,383) (7,651,889) (8,886,634) (6,779,246) Ending Operating Reserve Balance 2,573,000$ 2,660,000$ 2,751,000$ 2,846,000$ 2,944,000$ 3,046,000$ 3,152,000$ 3,263,000$ 3,378,000$ 3,497,000$ 3,620,000$ 3,749,000$ Target Ending Balance (90-days of O&M) 2,573,000$ 2,660,000$ 2,751,000$ 2,846,000$ 2,944,000$ 3,046,000$ 3,152,000$ 3,263,000$ 3,378,000$ 3,497,000$ 3,620,000$ 3,749,000$ Capital Rehabilitation & Replacement Reserve
Beginning Reserve Balance 29,717,283$ 32,182,135$ 34,456,747$ 29,261,225$ 16,468,170$ 8,796,732$ 3,450,956$ 4,882,899$ 7,568,124$ 14,274,508$ 21,926,396$ 30,813,030$ Plus: Grant Proceeds - - - - - - - - - - - - Plus: Transfer of Operating Reserve Surplus 2,464,852 2,274,612 1,642,512 2,828,957 1,744,527 1,618,966 2,601,536 3,532,384 6,706,383 7,651,889 8,886,634 6,779,246 Less: Use of Reserves for Capital Projects - - (6,838,034) (15,622,012) (9,415,965) (6,964,742) (1,169,593) (847,158) - - - (2,604,328) Ending Capital Improvement & Depreciation 32,182,135$ 34,456,747$ 29,261,225$ 16,468,170$ 8,796,732$ 3,450,956$ 4,882,899$ 7,568,124$ 14,274,508$ 21,926,396$ 30,813,030$ 34,987,948$ Target Ending Balance (50% of Avg. CIP $/Yr 3,000,000$ 3,100,000$ 3,200,000$ 3,300,000$ 3,400,000$ 3,500,000$ 3,600,000$ 3,700,000$ 3,800,000$ 3,900,000$ 4,000,000$ 8,100,000$ Ending Balance - Excludes Debt Reserve & B 34,755,135$ 37,116,747$ 32,012,225$ 19,314,170$ 11,740,732$ 6,496,956$ 8,034,899$ 10,831,124$ 17,652,508$ 25,423,396$ 34,433,030$ 38,736,948$ Minimum Target Ending Balance - Excl. Deb 5,573,000$ 5,760,000$ 5,951,000$ 6,146,000$ 6,344,000$ 6,546,000$ 6,752,000$ 6,963,000$ 7,178,000$ 7,397,000$ 7,620,000$ 11,849,000$ Ending Surplus/(Deficit) Compared to Reser 29,182,135$ 31,356,747$ 26,061,225$ 13,168,170$ 5,396,732$ (49,044)$ 1,282,899$ 3,868,124$ 10,474,508$ 18,026,396$ 26,813,030$ 26,887,948$ No. Days Cash On Hand 1,075 1,127 943 569 335 180 215 281 444 619 812 884 Restricted Reserves:

Bond Reserve Requirement
Beginning Reserve Balance4 1,112,000$ 1,112,000$ 1,112,000$ 1,112,000$ 1,112,000$ 1,112,000$ 1,112,000$ 1,112,000$ 1,112,000$ 1,112,000$ 1,112,000$ 1,112,000$ Plus: Lease-Purchase Financing Proceeds - - - - - - - - - - - - Plus: Revenue Bond Proceeds - - - - - - - - - - - - Less: Use of Bond & Loan Funds for Capital P - - - - - - - - - - - - Ending Bond Project Fund Balance 1,112,000$ 1,112,000$ 1,112,000$ 1,112,000$ 1,112,000$ 1,112,000$ 1,112,000$ 1,112,000$ 1,112,000$ 1,112,000$ 1,112,000$ 1,112,000$ Target Ending Balance 1,112,000$ 1,006,269$ 1,006,269$ 1,006,269$ 1,004,519$ 1,004,269$ 1,004,269$ 1,004,269$ 1,004,269$ 1,004,269$ 1,001,869$ 1,001,870$ Capacity Fee Reserve
Beginning Reserve Balance4 -$ 700,000$ 1,718,960$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Plus: Interest Earnings - 8,960 22,003 - - - - - - - - - Plus: Capacity Fee Revenue5 1,000,000 1,010,000 1,020,100 1,030,301 1,040,604 1,051,010 1,061,520 1,072,135 1,082,857 1,093,685 1,104,622 1,115,668 Less: Use of Reserves for Capital Projects (300,000) - (2,761,063) (1,030,301) (1,040,604) (1,051,010) (1,061,520) (1,072,135) (1,082,857) (1,093,685) (1,104,622) (1,115,668) Ending Connection Fee Fund Balance 700,000$ 1,718,960$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Annual Interest Earnings Rate 6 1.28% 1.28% 1.28% 1.28% 1.28% 1.28% 1.28% 1.28% 1.28% 1.28% 1.28% 1.28%

1. Beginning cash balance is from July 2022. Source file: 521-Water TrialBal-Jul22.pdf

2. The beginning Operating Reserve balance is equal to the amount in the Cash in Banks account, per the City's Trial Balance report for July 2021. Source file: Water TrialBal-Jul22.pdf

3. The Capital Rehab & Replacement reserve target is set to 3% of net assets.

4. Per City Staff, the City isn't holding any previously paid capacity fees in reserves.

5. NBS assumes that capacity fee revenue in future years will be consistent with FY 2022/23 budget, and the funds will be available to spend on future capital projects.

6. Historical interest earning rates were referenced on the California Treasurer's Office website for funds invested in LAIF. Historical 5-year average.

SUMMARY OF CASH ACTIVITY 5-Year Rate Adoption Period Projected Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Financial Plan, Page 2 of 29

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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study)

CITY OF COLTON

WATER RATE STUDY
Rate Adjustment Charts and Report Tables
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute CHART 1
$.0 Mil
$5.0 Mil
$10.0 Mil
$15.0 Mil
$20.0 Mil
$25.0 Mil
2024 2025 2026 2027 2028 2029
Fiscal Year Ending June 30
Water Revenue Requirements vs.

Revenue Under Existing and Increased Rates
Rate Funded Capital Expenses
Debt Service
O&M Expenses
Revenues under Existing Rates
Revenues under Increased Rates
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Charts and Tables, Page 3 of 29

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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater

CITY OF COLTON

WATER RATE STUDY
Rate Adjustment Charts and Report Tables
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute CHART 2
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
2024 2025 2026 2027 2028 2029
Fiscal Year Ending June 30
Ending Cash Balances vs.

Recommended Reserve Targets
Ending Unrestricted Cash Reserves
Minimum Target Reserve Balance
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Charts and Tables, Page 4 of 29

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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater

CITY OF COLTON

WATER RATE STUDY
Rate Adjustment Charts and Report Tables
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute CHART 3

15.0%

10.0% 10.0%

6.0% 6.0%
0%
2%
4%
6%
8%
10%
12%
14%
16%
2025 2026 2027 2028 2029
Fiscal Year Ending June 30
Projected Increases to Rate Revenue
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Charts and Tables, Page 5 of 29

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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater CITY OF COLTON Exhibit 1

WATER RATE STUDY
Operating Revenue and Expenses
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 3 : REVENUE FORECAST
Budget Projected
FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 FY 2033/34 5600 - Use of Money and Property
5601 Pooled Interest Ref to FP 30,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 5604 Trustee Interest Income2 Ref to FP 2,000 - - - - - - - - - - - 5606 Interest on Interfund Loans Ref to FP 300 - - - - - - - - - - - 5900 - Transfers
5924 Extend or Shorten Water Svc Line 1 622$ 628$ 635$ 641$ 647$ 654$ 660$ 667$ 674$ 680$ 687$ 694$ 6700 - Charges for Current Services
6702 Sale of Maps and Pubs 1 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 6729 Plan Check Fees 1 40,605 41,011 41,421 41,835 42,254 42,676 43,103 43,534 43,969 44,409 44,853 45,302 6758 Inspection Fees 1 45,000 45,450 45,905 46,364 46,827 47,295 47,768 48,246 48,729 49,216 49,708 50,205 6788 Fee for Temp Fire Hydrant 1 500 505 510 515 520 526 531 536 541 547 552 558 6792 Customer Service Charge 1 12,809 12,937 13,066 13,197 13,329 13,462 13,597 13,733 13,870 14,009 14,149 14,291 6793 Mtr Conn Chg/Reimbmt for Wtr Meter 1 - - - - - - - - - - - - 6794 Frontage/Land Use Fee for Water Line 1 40,000 40,400 40,804 41,212 41,624 42,040 42,461 42,885 43,314 43,747 44,185 44,627 6796 Water Meter Installation Fee 1 30,000 30,300 30,603 30,909 31,218 31,530 31,846 32,164 32,486 32,811 33,139 33,470 6800 - Charges for Current Services
6800 Residential Sales 1 8,225,719$ 8,307,976$ 8,391,056$ 8,474,967$ 8,559,716$ 8,645,313$ 8,731,766$ 8,819,084$ 8,907,275$ 8,996,348$ 9,086,311$ 9,177,174$ 6803 Commercial Sales 1 4,845,246 4,893,698 4,942,635 4,992,062 5,041,982 5,092,402 5,143,326 5,194,760 5,246,707 5,299,174 5,352,166 5,405,688 6806 Sales To City Depts 1 379,935 383,734 387,572 391,447 395,362 399,316 403,309 407,342 411,415 415,529 419,685 423,881 6888 Construction Water 1 36,000 36,360 36,724 37,091 37,462 37,836 38,215 38,597 38,983 39,373 39,766 40,164 7800 - Miscellaneous Revenue
7820 Refunds, Rebates & Reimbursements 1 70,000$ 70,700$ 71,407$ 72,121$ 72,842$ 73,571$ 74,306$ 75,049$ 75,800$ 76,558$ 77,324$ 78,097$ 7822 Damage to City Property-Recovery 1 6,000 6,060 6,121 6,182 6,244 6,306 6,369 6,433 6,497 6,562 6,628 6,694 7830 Miscellaneous Revenue3 1 20,000 20,200 20,402 20,606 20,812 21,020 21,230 21,443 21,657 21,874 22,092 22,313 7900 - Miscellaneous Revenue - Enterprise
7907 Sales to Outside Agencies 1 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 7908 Connection Fees 1 1,000,000 1,010,000 1,020,100 1,030,301 1,040,604 1,051,010 1,061,520 1,072,135 1,082,857 1,093,685 1,104,622 1,115,668 7910 5% Late Charge 1 50,000 50,500 51,005 51,515 52,030 52,551 53,076 53,607 54,143 54,684 55,231 55,783 -- Revenue from Sale of Property 1 - - - - - - - - - - 1 TOTAL: REVENUE 14,834,736$ 14,950,460$ 15,099,965$ 15,250,965$ 15,403,474$ 15,557,509$ 15,713,084$ 15,870,215$ 16,028,917$ 16,189,206$ 16,351,098$ 16,514,610$ TABLE 4 : SUMMARY OF REVENUES
Budget Projected
FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 FY 2033/34 Water Rate Revenue 13,486,900$ 13,621,769$ 13,757,987$ 13,895,567$ 14,034,522$ 14,174,867$ 14,316,616$ 14,459,782$ 14,604,380$ 14,750,424$ 14,897,928$ 15,046,907$ Capacity Charges/Connection Fees 1,000,000 1,010,000 1,020,100 1,030,301 1,040,604 1,051,010 1,061,520 1,072,135 1,082,857 1,093,685 1,104,622 1,115,668 Interest Income 32,300 - - - - - - - - - - - All Other Operating Revenue 315,536 318,691 321,878 325,097 328,348 331,632 334,948 338,297 341,680 345,097 348,548 352,035 - - - - - - - - - - - - BasisSOURCES OF REVENUE1

REVENUE SUMMARY
5-Year Rate Adoption Period Projected
5-Year Rate Adoption Period Projected
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Exhibit 1 (O&M), Page 6 of 29

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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study) CITY OF COLTON Exhibit 1

WATER RATE STUDY
Operating Revenue and Expenses
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 5 : OPERATING EXPENSE FORECAST
Budget Projected
FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 FY 2033/34 1000 - Salaries & Benefits
1010 Salaries - Miscellaneous 3 1,084,529$ 1,112,727$ 1,141,658$ 1,171,341$ 1,201,796$ 1,233,042$ 1,265,101$ 1,297,994$ 1,331,742$ 1,366,367$ 1,401,893$ 1,438,342$ 1040 Salaries - Part time 3 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 1050 Salaries - Overtime 3 260,000 266,760 273,696 280,812 288,113 295,604 303,290 311,175 319,266 327,567 336,083 344,821 1100 Salary Related Benefits 3 150,086 153,988 157,992 162,100 166,314 170,638 175,075 179,627 184,297 189,089 194,005 199,050 1101 Non-Persable Benefits 3 248,918 255,390 262,030 268,843 275,833 283,004 290,362 297,912 305,658 313,605 321,758 330,124 1107 PERS Unfunded Liability 3 255,829 262,481 269,305 276,307 283,491 290,862 298,424 306,183 314,144 322,312 330,692 339,290 1160 Education & Training 3 7,000 7,182 7,369 7,560 7,757 7,959 8,165 8,378 8,596 8,819 9,048 9,284 1161 Certification-Training/Renew 3 4,500 4,617 4,737 4,860 4,987 5,116 5,249 5,386 5,526 5,669 5,817 5,968 1170 Uniforms 3 21,000 21,546 22,106 22,681 23,271 23,876 24,496 25,133 25,787 26,457 27,145 27,851 1180 Safety Equipment 3 7,000 7,182 7,369 7,560 7,757 7,959 8,165 8,378 8,596 8,819 9,048 9,284 2000 - Maintenance and Operations
2210 Vehicle Operating Expense 2 45,000$ 46,800$ 48,672$ 50,619$ 52,644$ 54,749$ 56,939$ 59,217$ 61,586$ 64,049$ 66,611$ 69,275$ 2240 Misc. Equipment Maint. 2 1,000 1,040 1,082 1,125 1,170 1,217 1,265 1,316 1,369 1,423 1,480 1,539 2241 Permits 2 52,000 54,080 56,243 58,493 60,833 63,266 65,797 68,428 71,166 74,012 76,973 80,052 2280 Travel & Meetings 2 5,000 5,200 5,408 5,624 5,849 6,083 6,327 6,580 6,843 7,117 7,401 7,697 2301 Operating Supp./Equip. 2 193,354 201,088 209,132 217,497 226,197 235,245 244,654 254,441 264,618 275,203 286,211 297,660 2303 Unsch. Immed. Line Repair 2 10,000 10,400 10,816 11,249 11,699 12,167 12,653 13,159 13,686 14,233 14,802 15,395 2308 Hypochlorite Solution Purchases 2 120,000 124,800 129,792 134,984 140,383 145,998 151,838 157,912 164,228 170,797 177,629 184,734 2309 Perchlorate Resin 2 360,711 375,139 390,145 405,751 421,981 438,860 456,414 474,671 493,658 513,404 533,940 555,298 2310 Telecommunication Expense 2 20,000 20,800 21,632 22,497 23,397 24,333 25,306 26,319 27,371 28,466 29,605 30,789 2315 Software Licensing Support 2 40,000 41,600 43,264 44,995 46,794 48,666 50,613 52,637 54,743 56,932 59,210 61,578 2320 Utilities Expense5 4 2,000,000 2,100,000 2,205,000 2,315,250 2,431,013 2,552,563 2,680,191 2,814,201 2,954,911 3,102,656 3,257,789 3,420,679 2331 Purchased Water 2 135,000 140,400 146,016 151,857 157,931 164,248 170,818 177,651 184,757 192,147 199,833 207,826 2340 Legal Printing 2 6,000 6,240 6,490 6,749 7,019 7,300 7,592 7,896 8,211 8,540 8,881 9,237 2350 Professional Services 2 1,069,000 1,111,760 1,156,230 1,202,480 1,250,579 1,300,602 1,352,626 1,406,731 1,463,000 1,521,520 1,582,381 1,645,676 2352 PTF Legal Fees 2 35,000 36,400 37,856 39,370 40,945 42,583 44,286 46,058 47,900 49,816 51,809 53,881 2380 Administrative Charges 2 7,000 7,280 7,571 7,874 8,189 8,517 8,857 9,212 9,580 9,963 10,362 10,776 2381 Lease Payment To Gen Fund6 6 870,000 870,000 870,000 870,000 870,000 870,000 870,000 870,000 870,000 870,000 870,000 870,000 2411 Production Maintenance 2 90,000 93,600 97,344 101,238 105,287 109,499 113,879 118,434 123,171 128,098 133,222 138,551 2420 Equipment Lease 2 35,000 36,400 37,856 39,370 40,945 42,583 44,286 46,058 47,900 49,816 51,809 53,881 2421 Space Rent 2 7,000 7,280 7,571 7,874 8,189 8,517 8,857 9,212 9,580 9,963 10,362 10,776 2500 Principal7 Ref Ex 3 - - - - - - - - - - - 2510 Interest Expense7 Ref Ex 3 - - - - - - - - - - - 2540 Fines, Penalties & Interest 2 300 312 324 337 351 365 380 395 411 427 444 462 2560 Bad Debt Expense 2 15,000 15,600 16,224 16,873 17,548 18,250 18,980 19,739 20,529 21,350 22,204 23,092 2570 Property Tax Expense 2 2,500 2,600 2,704 2,812 2,925 3,042 3,163 3,290 3,421 3,558 3,701 3,849 2600 Cost Of Issuance 2 2,000 2,080 2,163 2,250 2,340 2,433 2,531 2,632 2,737 2,847 2,960 3,079 2670 Bank Fees 2 72,000 74,880 77,875 80,990 84,230 87,599 91,103 94,747 98,537 102,478 106,578 110,841 Other Expenses
3888 Stores Write Off 2 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 5000 - Total Cost Allocations
5990 Alloc. From Other Departments8 2 1,972,607$ 2,051,511$ 2,133,572$ 2,218,915$ 2,307,671$ 2,399,978$ 2,495,977$ 2,595,816$ 2,699,649$ 2,807,635$ 2,919,940$ 3,036,738$ 5991 Transfer Out - PERS Bond 3 81,834 83,962 86,145 88,384 90,682 93,040 95,459 97,941 100,488 103,100 105,781 108,531 Total: Water Operations Expenses 9,286,168$ 9,613,125$ 9,953,388$ 10,307,520$ 10,676,107$ 11,059,762$ 11,459,122$ 11,874,856$ 12,307,659$ 12,758,257$ 13,227,408$ 13,715,905$ Projected5-Year Rate Adoption PeriodWATER OPERATIONS4 Basis Prepared by NBS
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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study) CITY OF COLTON Exhibit 1

WATER RATE STUDY
Operating Revenue and Expenses
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 6 : OPERATING EXPENSE FORECAST
Budget Projected
FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 FY 2033/34 1000 - Salaries & Benefits
1010 Salaries - Miscellaneous 3 746,627$ 766,039$ 785,956$ 806,391$ 827,357$ 848,869$ 870,939$ 893,584$ 916,817$ 940,654$ 965,111$ 990,204$ 1040 Salaries - Part Time 3 130,000 133,380 136,848 140,406 144,056 147,802 151,645 155,588 159,633 163,783 168,042 172,411 1050 Salaries - Overtime 3 8,000 8,208 8,421 8,640 8,865 9,096 9,332 9,575 9,824 10,079 10,341 10,610 1100 Salary Related Benefits 3 96,512 99,021 101,596 104,237 106,948 109,728 112,581 115,508 118,511 121,593 124,754 127,998 1101 Non-Persable Benefits 3 152,610 156,578 160,649 164,826 169,111 173,508 178,019 182,648 187,397 192,269 197,268 202,397 1160 PERS Unfunded Liability 3 177,833 182,457 187,201 192,068 197,062 202,185 207,442 212,835 218,369 224,047 229,872 235,849 1160 Education & Training 3 5,800 5,951 6,106 6,264 6,427 6,594 6,766 6,942 7,122 7,307 7,497 7,692 1161 Certification - Training/Renew 3 4,000 4,104 4,211 4,320 4,433 4,548 4,666 4,787 4,912 5,039 5,171 5,305 1170 Uniforms 3 500 513 526 540 554 568 583 598 614 630 646 663 1180 Safety equipment 3 500 513 526 540 554 568 583 598 614 630 646 663 2000 - Maintenance and Operations
2210 Vehicle Operating Expense 5 6,500$ 7,670$ 9,051$ 10,680$ 12,602$ 14,870$ 16,357$ 17,993$ 19,793$ 20,782$ 21,821$ 22,912$ 2230 Vehicle Allowance 5 2,000 2,360 2,785 3,286 3,878 4,576 5,033 5,536 6,090 6,395 6,714 7,050 2240 Misc. Equipment Maint. 2 1,500 1,560 1,622 1,687 1,755 1,825 1,898 1,974 2,053 2,135 2,220 2,309 2250 Bldg & Grnds Maintenance 2 - - - - - - - - - - - 2270 Dues & Publications 2 19,000 19,760 20,550 21,372 22,227 23,116 24,041 25,003 26,003 27,043 28,125 29,250 2280 Travel & Meetings 2 8,600 8,944 9,302 9,674 10,061 10,463 10,882 11,317 11,770 12,240 12,730 13,239 2300 Office Supplies/Postage 2 18,000 18,720 19,469 20,248 21,057 21,900 22,776 23,687 24,634 25,620 26,644 27,710 2340 Legal Printing 2 2,000 2,080 2,163 2,250 2,340 2,433 2,531 2,632 2,737 2,847 2,960 3,079 2350 Professional Services 2 3,000 3,120 3,245 3,375 3,510 3,650 3,796 3,948 4,106 4,270 4,441 4,618 2354 Printing & Publications 2 2,500 2,600 2,704 2,812 2,925 3,042 3,163 3,290 3,421 3,558 3,701 3,849 2420 Equipment Lease 2 4,000 4,160 4,326 4,499 4,679 4,867 5,061 5,264 5,474 5,693 5,921 6,158 5000 - Total Cost Allocations
5990 Alloc from Gen Fund Depts.8 2 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 5991 Transfer Out - POBs 2 56,885 59,160 61,527 63,988 66,547 69,209 71,978 74,857 77,851 80,965 84,204 87,572 5995 Alloc Admin/Tech to Wastewater9 2 (634,324) (659,697) (686,085) (713,528) (742,069) (771,752) (802,622) (834,727) (868,116) (902,841) (938,954) (976,513) Total: Water Admin/Tech Expenses 812,043$ 827,201$ 842,699$ 858,575$ 874,878$ 891,665$ 907,450$ 923,436$ 939,628$ 954,738$ 969,875$ 985,025$ TABLE 7 : OPERATING EXPENSE FORECAST
Budget Projected
FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 FY 2033/34 1000 - Salaries & Benefits
1160 Education & Training 3 2,500$ 2,565$ 2,632$ 2,700$ 2,770$ 2,842$ 2,916$ 2,992$ 3,070$ 3,150$ 3,232$ 3,316$ 2000 - Maintenance and Operations
2041 Rebates - Water Conservation 2 40,000$ 41,600$ 43,264$ 44,995$ 46,794$ 48,666$ 50,613$ 52,637$ 54,743$ 56,932$ 59,210$ 61,578$ 2270 Dues & Publications 2 3,000 3,120 3,245 3,375 3,510 3,650 3,796 3,948 4,106 4,270 4,441 4,618 2280 Travel & Meetings 2 5,500 5,720 5,949 6,187 6,434 6,692 6,959 7,238 7,527 7,828 8,141 8,467 2300 Office Supplies/Postage 2 3,500 3,640 3,786 3,937 4,095 4,258 4,429 4,606 4,790 4,982 5,181 5,388 2301 Operating Supplies/Equipment 2 50,000 52,000 54,080 56,243 58,493 60,833 63,266 65,797 68,428 71,166 74,012 76,973 2341 Advertising 2 35,000 36,400 37,856 39,370 40,945 42,583 44,286 46,058 47,900 49,816 51,809 53,881 2350 Professional Services 2 53,000 55,120 57,325 59,618 62,003 64,483 67,062 69,744 72,534 75,436 78,453 81,591 Total: Water Conservation Program Expenses 192,500$ 200,165$ 208,136$ 216,424$ 225,043$ 234,006$ 243,327$ 253,019$ 263,098$ 273,579$ 284,478$ 295,812$ Grand Total: Operating Expenses 10,290,711$ 10,640,491$ 11,004,223$ 11,382,520$ 11,776,029$ 12,185,433$ 12,609,899$ 13,051,311$ 13,510,385$ 13,986,574$ 14,481,762$ 14,996,741$ 5-Year Rate Adoption Period Projected
5-Year Rate Adoption Period ProjectedBasis
WATER/WASTEWATER ADMIN/TECH4
WATER CONSERVATION PROGRAMS10
Basis
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Exhibit 1 (O&M), Page 8 of 29

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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study) CITY OF COLTON Exhibit 1

WATER RATE STUDY
Operating Revenue and Expenses
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 8 : FORECASTING ASSUMPTIONS
ECONOMIC VARIABLES11 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 FY 2033/34 1 Customer Growth12 - 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 2 General Cost Inflation - 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 3 Labor Cost Inflation - 2.60% 2.60% 2.60% 2.60% 2.60% 2.60% 2.60% 2.60% 2.60% 2.60% 2.60% 4 Energy Cost Inflation - 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5 Fuel Cost Inflation13 - 18.00% 18.00% 18.00% 18.00% 18.00% 10.00% 10.00% 10.00% 5.00% 5.00% 5.00% 6 No Escalation - 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

1. Revenues for FY 2022/23 were provided by City Staff. Source file: 521 - Water Rev BUD FY 22-23 . This excludes the Loan/Bond proceeds, which are accounted for in Exhibit 2.

2. Interest earnings are zeroed out here because they are calculated in the Financial Plan section of this model, in Table 2 (Reserve Fund Summary).

3. Per City Staff, miscellaneous revenue is estimated to be approximately $20,000 per year.

4. FY 2022/23 expenses are from the City's Budget in source file: 521 - Water Exps BUD FY 22-23 . Inflationary factors are applied to these expenses to project costs in 2023/24 and beyond.

5. Utility Expense consists of: wells & boosters Time of Use (TOU) electric bills, Well 19-Edison, corporate yard electricity, So California Gas Co-Corporate Yard and City Departments Water.

6. Lease payment to General Fund is the Joint Powers Authority (JPA) 55 Year General Lease Payment for Corporate Yard/Water Facilities (Lease Ends 2055).

7. Principal and interest payments on outstanding debt is accounted for in Exhibit 3 of this module.

8. This is for General Fund allocations to supporting departments (Finance, City Clerk, City Manager, City Attorney, IS, HR, Purchasing, Auto Shop, etc.).

9. Allocation of Admin/Tech to Wastewater is for Wastewater's share of Admin/Tech expenditures (Water’s Admin Staff does the Wastewater budget, A/P, contracts, inspections, engineering, etc.). 50% of costs due to positional changes were added to budgeted values.

10. This excludes capital projects as included in exhibit 2.

11. Inflation factors estimated using the Bureau of Labor Statistics 5-year average for each variable.

12. Per City Staff, customer growth is estimated to be approximately 1% annually.

13. Fuel cost inflation estimated per BLS Fuel Oil 5-year average through FY 2027/28, and 10% for 3 years and 5% thereafter Prepared by NBS
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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study) CITY OF COLTON Exhibit 2

WATER RATE STUDY
Capital Improvement Plan Expenditures 5-year CIP Costs
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute 59,223,730$ TABLE 9 : CAPITAL FUNDING SUMMARY
CAPITAL FUNDING FORECAST Budget Projected
FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 FY 2033/34 Grants -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Use of Capacity Fee Reserves 300,000 - 2,761,063 1,030,301 1,040,604 1,051,010 1,061,520 1,072,135 1,082,857 1,093,685 1,104,622 1,115,668 Use of Existing Bond Proceeds - - - - - - - - - - - - Lease-Purchase Financing - - - - - - - - - - - - Use of New Revenue Bond Proceeds1 - - - - - - - - - - - - Rate Revenue - - 2,500,000 3,000,000 4,000,000 5,000,000 5,000,000 5,000,000 2,839,507 3,025,085 3,011,657 5,000,000 Use of Capital Rehab. & Replacement Reserve - 6,838,034 15,622,012 9,415,965 6,964,742 1,169,593 847,158 - - - 2,604,328 Total Sources of Capital Funds 300,000$ -$ 12,099,096$ 19,652,313$ 14,456,569$ 13,015,752$ 7,231,113$ 6,919,294$ 3,922,363$ 4,118,770$ 4,116,279$ 8,719,996$ Uses of Capital Funds:

Project Costs (excluding water conservation projects) 150,000$ -$ 12,099,096$ 19,652,313$ 14,456,569$ 13,015,752$ 7,231,113$ 6,919,294$ 3,922,363$ 4,118,770$ 4,116,279$ 8,719,996$ Water Conservation Projects
Capital Funding Surplus (Deficiency) (150,000)$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ New SRF Loan Funding -$ 15,000,000$ 15,000,000$ -$ -$ -$ -$ -$ -$ -$ -$ New Lease-Purchase Financing -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ New Revenue Bond Proceeds -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ CAPITAL IMPROMENT PLAN OPTIONS 1
1 50% CIP + $30M SRF 150,000$ -$ 12,099,096$ 19,652,313$ 14,456,569$ 13,015,752$ 7,231,113$ 6,919,294$ 3,922,363$ 4,118,770$ 4,116,279$ 8,719,996$ 2 50% CIP + $30M SRF 150,000$ -$ 12,099,096$ 19,652,313$ 14,456,569$ 13,015,752$ 7,231,113$ 6,919,294$ 3,922,363$ 4,118,770$ 4,116,279$ 8,719,996$ 3 40% CIP + $10M SRF 120,000$ -$ 9,679,277$ 15,721,850$ 11,565,255$ 10,412,601$ 5,784,891$ 5,535,435$ 3,137,891$ 3,295,016$ 3,293,023$ 6,975,997$ CAPITAL IMPROVEMENT PLAN OPTION 150,000$ -$ 12,099,096$ 19,652,313$ 14,456,569$ 13,015,752$ 7,231,113$ 6,919,294$ 3,922,363$ 4,118,770$ 4,116,279$ 8,719,996$ 5-YEAR CIP PLAN
50% CIP + $30M SRF 59,373,730$ 0.5
50% CIP + $30M SRF 59,373,730$ 0.5
40% CIP + $10M SRF 47,498,984$ 0.4
100% CIP Over 20-Year Planning Period 94,401,545$
5-Year Rate Adoption Period Projected
Funding Sources:

Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Exhibit 2 (CIP), Page 10 of 29

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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study) CITY OF COLTON Exhibit 2

WATER RATE STUDY
Capital Improvement Plan Expenditures 5-year CIP Costs
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute 59,223,730$ TABLE 10 : CAPITAL IMPROVEMENT PROGRAM COSTS (in Current-Year Dollars) 1 Project Description 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034

CAPACITY RELATED PROJECTS
Fire Flow Improvements
West laurel St. 69,750$ 69,750$ 69,750$ -$ -$ -$ -$ -$ -$ F St./ 2nd St. 205,750 205,750 205,750 - - - - - - Shasta Ave./ Sperry Dr. 164,000 164,000 164,000 - - - - - - East Cooley Dr. 73,500 73,500 73,500 - - - - - - Southwest of East Cooley Dr. 38,000 38,000 38,000 - - - - - - Alley south of D St./ E St./ Colton Ave. 143,250 143,250 143,250 - - - - - - West Olive St. 46,750 46,750 46,750 - - - - - - North 7th St. 16,750 16,750 16,750 - - - - - - North Miller Dr. 133,250 133,250 133,250 - - - - - - North Pennsylvania Ave. 1,250 1,250 1,250 - - - - - - Alley North of West J St. 108,750 108,750 108,750 - - - - - - Southwest Corner of Citrus St. & La Cadena 7,750 7,750 7,750 - - - - - - Highland Ave. & East Olive St. 750 750 750 - - - - - - De Berry St. 52,750 52,750 52,750 - - - - - - De Berry St. 114,000 114,000 114,000 - - - - - - Center Dr. 92,500 92,500 92,500 - - - - - - Parking lot East of Meadow Ln. 52,500 52,500 52,500 - - - - - - Chumash Ave./ Batron Rd. 77,250 77,250 77,250 - - - - - - Barton Rd./ East Chumash Ave. 24,500 24,500 24,500 - - - - - - North Harbor Dr. & Orange Groove Ave. 750 750 750 - - - - - - North Harbor Dr. & North Illinois Ave. 5,750 5,750 5,750 - - - - - - San Bernardino Co. Med Ctr. Fire Line 11,500 11,500 11,500 - - - - - - South Rancho Ave. 149,750 149,750 149,750 - - - - - - South Iowa Ave. 133,250 133,250 133,250 - - - - - - South Mt. Vernon Ave 132,500 132,500 132,500 - - - - - - Mt. Vernon Ave. & Washington St. 3,000 3,000 3,000 - - - - - - South Iowa Ave. & South La Cadena Dr. 22,750 22,750 22,750 - - - - - - WWTP driveway 39,000 39,000 39,000 - - - - - - Mary Knoll Dr. 43,750 43,750 43,750 - - - - - - West La Cadena Dr./ South Iowa Ave. 123,250 123,250 123,250 - - - - - - South La Cadena Dr. 52,250 52,250 52,250 - - - - - - Under US-215 58,000 58,000 58,000 - - - - - - San Bernardino Ave. 15,250 15,250 15,250 - - - - - - Rialto Avenue 35,750 35,750 35,750 - - - - - - North Fairview Ave. 3,000 3,000 3,000 - - - - - - East Grant Ave. 46,750 46,750 46,750 - - - - - - Mohave Dr. 108,750 108,750 108,750 - - - - - - West K St. 83,000 83,000 83,000 - - - - - - East Washington St. 5,250 5,250 5,250 - - - - - - West B St. 35,750 35,750 35,750 - - - - - - West Valley Blvd. 21,500 21,500 21,500 - - - - - - South Walin St. 48,750 48,750 48,750 - - - - - - East Washington St. 1,000 1,000 1,000 - - - - - - Sub-Total: Capital Improvement Program Costs (Current-Year Dollars) -$ -$ 2,603,250$ 2,603,250$ 2,603,250$ -$ -$ -$ -$ -$ -$ -$ Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Exhibit 2 (CIP), Page 11 of 29

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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study) CITY OF COLTON Exhibit 2

WATER RATE STUDY
Capital Improvement Plan Expenditures 5-year CIP Costs
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute 59,223,730$ TABLE 11 : CAPITAL IMPROVEMENT PROGRAM COSTS, cont. (in Current-Year Dollars) 1 Project Description 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Transmission & Distribution Main
Well 23 -$ 26,500$ 26,500$ 26,500$ 26,500$ -$ -$ -$ -$ -$ -$ Fairway Dr. - 477,250 477,250 477,250 477,250 - - - - - - F St. - 346,000 346,000 346,000 346,000 - - - - - - Watwood Ave. - 59,750 59,750 59,750 59,750 - - - - - - North Pepper Ave. to West Poema Dr. - 5,250 5,250 5,250 5,250 - - - - - - Mohave Dr. - - - - - 5,333 5,333 5,333 5,333 5,333 5,333 East M St. / South Mt. Vernon Ave. - - - - - 124,467 124,467 124,467 124,467 124,467 124,467 Well 24 Storage Tank Transmission Main - - - - - 3,667 3,667 3,667 3,667 3,667 3,667 Well 24 Storage Tank Transmission Main - - - - - 6,333 6,333 6,333 6,333 6,333 6,333 Reche Canyon Rd. - - - - - 3,200 3,200 3,200 3,200 3,200 3,200 Reche Canyon PS - - - - - 2,933 2,933 2,933 2,933 2,933 2,933 Macy St. - - - - - 22,600 22,600 22,600 22,600 22,600 22,600 Ellen Ave. - - - - - 7,533 7,533 7,533 7,533 7,533 7,533 Watwood Ave. - - - - - 28,667 28,667 28,667 28,667 28,667 28,667 Mohave Dr. - - - - - 22,533 22,533 22,533 22,533 22,533 22,533 Pump Stations - - - - - - - - - - - Walnut West PS - 1,500,000 - - - - - - - - - Walnut Central PS - 2,500,000 - - - - - - - - - Well 24 PS - - - - - 61,333 61,333 61,333 61,333 61,333 61,333 Mohave PS - - - - - 96,133 96,133 96,133 96,133 96,133 96,133 Walnut Central PS Expansion - - - - - 10,000 10,000 10,000 10,000 10,000 10,000 Future PS Needs (Reche Canyon) 500,000 2,000,000 Wells - - - - - - - - - - - Construc WELL 32 PROJECT CANCLED, NEW LOCATION TBD - 1,250,000 1,250,000 1,250,000 1,250,000 - - - - - - Construct Well 33 - 1,250,000 1,250,000 1,250,000 1,250,000 - - - - - - Construction of New Wells 50,000 1,000,000 3,000,000 3,000,000 3,000,000 3,000,000 Storage/Reservoir - - - - - - - - - - - La Loma Reservoir 2 - 2,589,750 2,589,750 2,589,750 2,589,750 - - - - - - Rialto Reservoir Field - 2,072,000 2,072,000 2,072,000 2,072,000 - - - - - - Rialto Reservoir Field - 159,500 159,500 159,500 159,500 - - - - - - Well 24 Reservoir on empty Lot - - - - - 497,267 497,267 497,267 497,267 497,267 497,267 Rouqet Ranch Development - - - - - 333,333 333,333 333,333 333,333 333,333 333,333 Future Reservoir needs (Reche Canyon) 1,000,000 10,000,000 Valves - - - - - - - - - - - Reche Canyon 1 & Central Zone - - - - - 22,133 22,133 22,133 22,133 22,133 22,133 Mohave Dr.& Laurelwood Ave. - - - - - 22,133 22,133 22,133 22,133 22,133 22,133

REHABILITATION RELATED PROJECTS - - - - - - - - - - - Transmission & Distribution Main - - - - - - - - - - - Pipeline Rehabilitation/Replacement 300,000 2,000,000 4,000,000 4,000,000 4,000,000 4,543,267 4,543,267 4,543,267 4,543,267 4,543,267 4,543,267 Wells - - - - - - - - - - - Well 19 - 150,000 - - - - - - Well 21 - 200,000
Well 26 WELL HAS BEEN DESTROYED 2022 - - - - - - - Well 27 - 225,000 - - - - - - Well 28 Not an Active Well in the System -
Well 15 Well is on Stand-by due to Clean-up Efforts with EPA - - - - - - 250,000 Well 17 WELL IS INACTIVE AND REMOVED FROM SERVICE -
Well 22 - 200,000
Well 23 - 225,000
Well 24 - 300,000
Well 30 - 250,000 - - - - - - Well 31 New Well going into service 2023 100,000
Wells 32 WELL 32 PROJECT CANCLED, NEW LOCATION TBD - - - - - - - Pump Stations - - - - - - - - - - - Domecq Pump Station - 2,500 2,500 2,500 2,500 1,667 1,667 1,667 1,667 1,667 1,667 Prado Pump Station - 5,000 5,000 5,000 5,000 667 667 667 667 667 667 Reche Canyon Pump Station - - - - - 5,000 5,000 5,000 5,000 5,000 5,000 Reservoir/Storage - - - - - - - - - - - Domecq Reservoirs 1 & 2 - 2,200,000 1,750,000 La Loma Reservoir - 2,400,000 Montecito Reservoir - 2,000,000 Rialto 2 Reservoir - 2,300,000 Wild Canyon Reservoir - 2,100,000 Vehicles/Equipment
Hydro Excavator 100,077 100,077 100,077 100,077 100,077 100,077 100,077 100,077 Service Truck 300,000 300,000
Dump Truck 5 yard 130,000 - - - - - - - - Portable Generator 500,000 600,000 300,000 Vehicles 100,000 115,000 132,250 152,088 Chlorine on-site Generation 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 Leak deterction Equipment/Services 100,000 200,000 Well Site Buildings/Structures 200,000
Landscape Services offsite facilities 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 Contracted Flushing services 500,000 500,000 GIS Moblie Services/Hydraulic Modeling/Asset Management 100,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 Net-Zero Yard Administration Building 4,000,000 4,000,000 4,000,000 Sub-Total: Capital Improvement Program Costs (Current-Year Dollars) 300,000$ -$ 20,073,577$ 33,053,577$ 22,788,577$ 22,130,827$ 11,902,364$ ########## 6,050,277$ 6,150,277$ 5,950,200$ 6,200,200$ Grand Total: Capital Improvement Program Costs (Current-Year Dolla 300,000$ -$ 22,676,827$ 35,656,827$ 25,391,827$ 22,130,827$ 11,902,364$ ########## 6,050,277$ 6,150,277$ 5,950,200$ 6,200,200$ Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Exhibit 2 (CIP), Page 12 of 29

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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study) CITY OF COLTON Exhibit 2

WATER RATE STUDY
Capital Improvement Plan Expenditures 5-year CIP Costs
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute 59,223,730$ TABLE 12 : CAPITAL IMPROVEMENT PROGRAM COSTS (in Future-Year Dollars) 2 Project Description 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034

CAPACITY RELATED PROJECTS
Fire Flow Improvements -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ West laurel St. - - 74,429 76,886 79,423 - - - - - - F St./ 2nd St. - - 219,554 226,799 234,283 - - - - - - Shasta Ave./ Sperry Dr. - - 175,003 180,778 186,743 - - - - - - East Cooley Dr. - - 78,431 81,019 83,693 - - - - - - Southwest of East Cooley Dr. - - 40,549 41,888 43,270 - - - - - - Alley south of D St./ E St./ Colton Ave. - - 152,860 157,905 163,116 - - - - - - West Olive St. - - 49,886 51,533 53,233 - - - - - - North 7th St. - - 17,874 18,464 19,073 - - - - - - North Miller Dr. - - 142,190 146,882 151,729 - - - - - - North Pennsylvania Ave. - - 1,334 1,378 1,423 - - - - - - Alley North of West J St. - - 116,046 119,875 123,831 - - - - - - Southwest Corner of Citrus St. & La Cadena - - 8,270 8,543 8,825 - - - - - - Highland Ave. & East Olive St. - - 800 827 854 - - - - - - De Berry St. - - 56,289 58,146 60,065 - - - - - - De Berry St. - - 121,648 125,663 129,809 - - - - - - Center Dr. - - 98,706 101,963 105,328 - - - - - - Parking lot East of Meadow Ln. - - 56,022 57,871 59,781 - - - - - - Chumash Ave./ Batron Rd. - - 82,433 85,153 87,963 - - - - - - Barton Rd./ East Chumash Ave. - - 26,144 27,006 27,898 - - - - - - North Harbor Dr. & Orange Groove Ave. - - 800 827 854 - - - - - - North Harbor Dr. & North Illinois Ave. - - 6,136 6,338 6,547 - - - - - - San Bernardino Co. Med Ctr. Fire Line - - 12,272 12,676 13,095 - - - - - - South Rancho Ave. - - 159,797 165,070 170,517 - - - - - - South Iowa Ave. - - 142,190 146,882 151,729 - - - - - - South Mt. Vernon Ave - - 141,389 146,055 150,875 - - - - - - Mt. Vernon Ave. & Washington St. - - 3,201 3,307 3,416 - - - - - - South Iowa Ave. & South La Cadena Dr. - - 24,276 25,077 25,905 - - - - - - WWTP driveway - - 41,616 42,990 44,408 - - - - - - Mary Knoll Dr. - - 46,685 48,226 49,817 - - - - - - West La Cadena Dr./ South Iowa Ave. - - 131,519 135,859 140,342 - - - - - - South La Cadena Dr. - - 55,755 57,595 59,496 - - - - - - Under US-215 - - 61,891 63,934 66,043 - - - - - - San Bernardino Ave. - - 16,273 16,810 17,365 - - - - - - Rialto Avenue - - 38,148 39,407 40,708 - - - - - - North Fairview Ave. - - 3,201 3,307 3,416 - - - - - - East Grant Ave. - - 49,886 51,533 53,233 - - - - - - Mohave Dr. - - 116,046 119,875 123,831 - - - - - - West K St. - - 88,568 91,491 94,510 - - - - - - East Washington St. - - 5,602 5,787 5,978 - - - - - - West B St. - - 38,148 39,407 40,708 - - - - - - West Valley Blvd. - - 22,942 23,700 24,482 - - - - - - South Walin St. - - 52,021 53,737 55,511 - - - - - - East Washington St. - - 1,067 1,102 1,139 - - - - - - Sub-Total: Capital Improvement Program Costs (Future-Year Dollars) -$ -$ 2,777,899$ 2,869,570$ 2,964,266$ -$ -$ -$ -$ -$ -$ -$ Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Exhibit 2 (CIP), Page 13 of 29

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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study) CITY OF COLTON Exhibit 2

WATER RATE STUDY
Capital Improvement Plan Expenditures 5-year CIP Costs
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute 59,223,730$ TABLE 13 : CAPITAL IMPROVEMENT PROGRAM COSTS, cont. (in Future-Year Dollars) 2 Project Description 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Transmission & Distribution Main
Well 23 -$ -$ 28,278$ 29,211$ 30,175$ 31,171$ -$ -$ -$ -$ -$ -$ Fairway Dr. -$ -$ 509,268$ 526,074$ 543,435$ 561,368$ -$ -$ -$ -$ -$ -$ F St. -$ -$ 369,213$ 381,397$ 393,983$ 406,984$ -$ -$ -$ -$ -$ -$ Watwood Ave. -$ -$ 63,759$ 65,863$ 68,036$ 70,281$ -$ -$ -$ -$ -$ -$ North Pepper Ave. to West Poema Dr. -$ -$ 5,602$ 5,787$ 5,978$ 6,175$ -$ -$ -$ -$ -$ -$ Mohave Dr. -$ -$ -$ -$ -$ -$ 6,480$ 6,694$ 6,915$ 7,143$ 7,379$ 15,002$ East M St. / South Mt. Vernon Ave. -$ -$ -$ -$ -$ -$ 151,236$ 156,227$ 161,382$ 166,708$ 172,209$ 350,101$ Well 24 Storage Tank Transmission Main -$ -$ -$ -$ -$ -$ 4,455$ 4,602$ 4,754$ 4,911$ 5,073$ 10,314$ Well 24 Storage Tank Transmission Main -$ -$ -$ -$ -$ -$ 7,695$ 7,949$ 8,212$ 8,483$ 8,763$ 17,814$ Reche Canyon Rd. -$ -$ -$ -$ -$ -$ 3,888$ 4,017$ 4,149$ 4,286$ 4,427$ 9,001$ Reche Canyon PS -$ -$ -$ -$ -$ -$ 3,564$ 3,682$ 3,803$ 3,929$ 4,058$ 8,251$ Macy St. -$ -$ -$ -$ -$ -$ 27,461$ 28,367$ 29,303$ 30,270$ 31,269$ 63,570$ Ellen Ave. -$ -$ -$ -$ -$ -$ 9,154$ 9,456$ 9,768$ 10,090$ 10,423$ 21,190$ Watwood Ave. -$ -$ -$ -$ -$ -$ 34,832$ 35,982$ 37,169$ 38,395$ 39,663$ 80,634$ Mohave Dr. -$ -$ -$ -$ -$ -$ 27,380$ 28,283$ 29,216$ 30,181$ 31,177$ 63,382$ Pump Stations -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Walnut West PS -$ -$ 1,600,634$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Walnut Central PS -$ -$ 2,667,723$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Well 24 PS -$ -$ -$ -$ -$ -$ 74,524$ 76,984$ 79,524$ 82,148$ 84,859$ 172,519$ Mohave PS -$ -$ -$ -$ -$ -$ 116,809$ 120,664$ 124,645$ 128,759$ 133,008$ 270,405$ Walnut Central PS Expansion -$ -$ -$ -$ -$ -$ 12,151$ 12,552$ 12,966$ 13,394$ 13,836$ 28,128$ Future PS Needs (Reche Canyon) -$ -$ 533,545$ 2,204,606$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Wells -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Construct Well 32 -$ -$ 1,333,861$ 1,377,879$ 1,423,349$ 1,470,319$ -$ -$ -$ -$ -$ -$ Construct Well 33 -$ -$ 1,333,861$ 1,377,879$ 1,423,349$ 1,470,319$ -$ -$ -$ -$ -$ -$ Construction of New Wells -$ -$ 53,354$ 1,102,303$ 3,416,037$ 3,528,766$ 3,645,215$ 3,765,507$ -$ -$ -$ -$ Storage/Reservoir -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ La Loma Reservoir 2 -$ -$ 2,763,494$ 2,854,689$ 2,948,894$ 3,046,207$ -$ -$ -$ -$ -$ -$ Rialto Reservoir Field -$ -$ 2,211,008$ 2,283,972$ 2,359,343$ 2,437,201$ -$ -$ -$ -$ -$ -$ Rialto Reservoir Field -$ -$ 170,201$ 175,817$ 181,619$ 187,613$ -$ -$ -$ -$ -$ -$ Well 24 Reservoir on empty Lot -$ -$ -$ -$ -$ -$ 604,215$ 624,154$ 644,751$ 666,028$ 688,007$ 1,398,717$ Rouqet Ranch Development -$ -$ -$ -$ -$ -$ 405,024$ 418,390$ 432,197$ 446,459$ 461,192$ 937,604$ Future Reservoir needs (Reche Canyon) -$ -$ 1,067,089$ 11,023,029$ -$ -$ -$ -$ -$ -$ -$ -$ Valves -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Reche Canyon 1 & Central Zone -$ -$ -$ -$ -$ -$ 26,894$ 27,781$ 28,698$ 29,645$ 30,623$ 62,257$ Mohave Dr.& Laurelwood Ave. -$ -$ -$ -$ -$ -$ 26,894$ 27,781$ 28,698$ 29,645$ 30,623$ 62,257$ REHABILITATION RELATED PROJECTS -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Transmission & Distribution Main -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Pipeline Rehabilitation/Replacement 300,000$ -$ 2,134,178$ 4,409,212$ 4,554,716$ 4,705,021$ 5,520,395$ 5,702,568$ 5,890,753$ 6,085,148$ 6,285,958$ 12,779,352$ Wells -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Well 19 -$ -$ -$ 165,345$ -$ -$ -$ -$ -$ -$ -$ -$ Well 21 -$ -$ -$ -$ 227,736$ -$ -$ -$ -$ -$ -$ -$ Well 26 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Well 27 -$ -$ -$ -$ -$ 264,657$ -$ -$ -$ -$ -$ -$ Well 28 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Well 15 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 703,203$ Well 17 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Well 22 -$ -$ 213,418$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Well 23 -$ -$ -$ -$ -$ -$ -$ 282,413$ -$ -$ -$ -$ Well 24 -$ -$ -$ -$ -$ -$ 364,522$ -$ -$ -$ -$ -$ Well 30 -$ -$ 266,772$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Well 31 -$ -$ -$ -$ -$ -$ -$ -$ -$ 133,938$ -$ -$ Wells 32 & 33 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Pump Stations -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Domecq Pump Station -$ -$ 2,668$ 2,756$ 2,847$ 2,941$ 2,025$ 2,092$ 2,161$ 2,232$ 2,306$ 4,688$ Prado Pump Station -$ -$ 5,335$ 5,512$ 5,693$ 5,881$ 810$ 837$ 864$ 893$ 922$ 1,875$ Reche Canyon Pump Station -$ -$ -$ -$ -$ -$ 6,075$ 6,276$ 6,483$ 6,697$ 6,918$ 14,064$ Reservoir/Storage -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Domecq Reservoirs 1 & 2 -$ -$ -$ -$ 2,505,094$ -$ -$ 2,196,546$ -$ -$ -$ -$ La Loma Reservoir -$ -$ -$ -$ -$ -$ 2,916,172$ -$ -$ -$ -$ -$ Montecito Reservoir -$ -$ 2,134,178$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Rialto 2 Reservoir -$ -$ -$ -$ -$ 2,705,387$ -$ -$ -$ -$ -$ -$ Wild Canyon Reservoir -$ -$ -$ 2,314,836$ -$ -$ -$ -$ -$ -$ -$ -$ Vehicles/Equipment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Hydro Excavator -$ -$ 106,791$ 110,315$ 113,955$ 117,716$ 121,601$ 125,613$ 129,759$ 134,041$ -$ -$ Service Truck -$ -$ 320,127$ 330,691$ -$ -$ -$ -$ -$ -$ -$ -$ Dump Truck 5 yard -$ -$ -$ 143,299$ -$ -$ -$ -$ -$ -$ -$ -$ Portable Generator -$ -$ 533,545$ 661,382$ 341,604$ -$ -$ -$ -$ -$ -$ -$ Vehicles -$ -$ -$ 110,230$ 130,948$ 155,560$ 184,797$ -$ -$ -$ -$ -$ Chlorine on-site Generation -$ -$ -$ 55,115$ 56,934$ 58,813$ 60,754$ 62,758$ 64,829$ 66,969$ 69,179$ 140,641$ Leak deterction Equipment/Services -$ -$ 106,709$ 220,461$ -$ -$ -$ -$ -$ -$ -$ -$ Well Site Buildings/Structures -$ -$ 213,418$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Landscape Services offsite facilities -$ -$ 32,013$ 33,069$ 34,160$ 35,288$ 36,452$ 37,655$ 38,898$ 40,181$ 41,507$ 84,384$ Contracted Flushing services -$ -$ 533,545$ -$ 569,339$ -$ -$ -$ -$ -$ -$ -$ GIS Moblie Services/Hydraulic Modeling/Asset Management -$ -$ 106,709$ 55,115$ 56,934$ 58,813$ 60,754$ 62,758$ 64,829$ 66,969$ 69,179$ 140,641$ Net-Zero Yard Administration Building -$ -$ -$ 4,409,212$ 4,554,716$ 4,705,021$ -$ -$ -$ -$ -$ -$ Sub-Total: Capital Improvement Program Costs (Future-Year Dollars) 300,000$ -$ 21,420,293$ 36,435,055$ 25,948,872$ 26,031,503$ 14,462,227$ ########## 7,844,727$ 8,237,540$ 8,232,558$ 17,439,992$ Grand Total: Capital Improvement Program Costs (Future-Year Dollars 300,000$ -$ 24,198,193$ 39,304,625$ 28,913,138$ 26,031,503$ 14,462,227$ ########## 7,844,727$ 8,237,540$ 8,232,558$ 17,439,992$ Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Exhibit 2 (CIP), Page 14 of 29

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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study) CITY OF COLTON Exhibit 2

WATER RATE STUDY
Capital Improvement Plan Expenditures 5-year CIP Costs
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute 59,223,730$ TABLE 14 : FORECASTING ASSUMPTIONS
Economic Variables 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Annual Construction Cost Inflation, Per Engineering News Record3,4 0.00% 3.30% 3.30% 3.30% 3.30% 3.30% 3.30% 3.30% 3.30% 3.30% 3.30% 103.30% Cumulative Construction Cost Multiplier from 2023 1.00 1.03 1.07 1.10 1.14 1.18 1.22 1.26 1.30 1.34 1.38 2.81

1. Capital project cost data was provided originally by City Staff in source file: Water and Wastewater CIP 03-22-2022.xlsx

2. Future Capital projects inflated by CCI to account for future inflation.

3. Project costs are inflated by 3.3% per year, Engineering News Record estimates of construction cost inflation.

4. For reference purposes, the annual Construction Cost Inflation percentage is the 10 year average change in the Construction Cost Index for 2012-2022. Source: Engineering News Record website (http://enr.construction.com).

Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Exhibit 2 (CIP), Page 15 of 29

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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study) CITY OF COLTON Exhibit 3

WATER RATE STUDY
Debt Service
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 15 : EXISTING DEBT OBLIGATIONS
Budget Projected
FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 FY 2033/34 2017 Water Revenue Bonds
Principal Payment 515,000$ 410,000$ 420,000$ 435,000$ 455,000$ 475,000$ 500,000$ 525,000$ 550,000$ 580,000$ 595,000$ 595,000$ Interest Payment 614,119 596,169 583,869 571,269 549,519 526,769 503,019 478,019 451,769 424,269 406,869 406,869 Subtotal: Annual Debt Service 1,129,119$ 1,006,169$ 1,003,869$ 1,006,269$ 1,004,519$ 1,001,769$ 1,003,019$ 1,003,019$ 1,001,769$ 1,004,269$ 1,001,869$ 1,001,869$ Coverage Requirement(% above annual payment)1 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 125% Reserve Requirement (total fund balance)2 1,112,000$ 1,006,269$ 1,006,269$ 1,006,269$ 1,004,519$ 1,004,269$ 1,004,269$ 1,004,269$ 1,004,269$ 1,004,269$ 1,001,869$ 1,001,869$ Bank of America - 10 Year AMR Loan
Principal Payment 350,132$ 358,885$ 367,857$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Interest Payment 26,922$ 18,169$ 9,196$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Subtotal: Annual Debt Service 377,054$ 377,054$ 377,054$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Coverage Requirement(% above annual payment) 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 100% Reserve Requirement (total fund balance) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 1$ Grand Total: Existing Annual Debt Service 1,506,173$ 1,383,223$ 1,380,923$ 1,006,269$ 1,004,519$ 1,001,769$ 1,003,019$ 1,003,019$ 1,001,769$ 1,004,269$ 1,001,869$ 1,001,869$ Grand Total: Existing Annual Coverage Requirement 282,280$ 251,542$ 250,967$ 251,567$ 251,130$ 250,442$ 250,755$ 250,755$ 250,442$ 251,067$ 250,467$ 1,252,336$ Grand Total: Existing Debt Reserve Target 1,112,000$ 1,006,269$ 1,006,269$ 1,006,269$ 1,004,519$ 1,004,269$ 1,004,269$ 1,004,269$ 1,004,269$ 1,004,269$ 1,001,869$ 1,001,870$

1. Per the Installment Purchase Agreement for the 1998 Water Revenue Bonds, the Utility is required to maintain a debt coverage ratio of 1.25 for this bond issue and all future debt.

2. The Reserve Requirement in future years is equal to the least of: 10% of the principal amount of the original principal amount of the bonds, the maximum annual debt service payment, or 125% of the average annual debt service payment.

In all years the reserve requirement is equal to the maximum annual debt service payment.

ANNUAL REPAYMENT SCHEDULES 5-Year Rate Adoption Period Projected Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Exhibit 3 (Debt), Page 16 of 29

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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study) CITY OF COLTON Exhibit 4

WATER RATE STUDY
Projected Water Rates Under Existing Rate Schedule
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 16 : CURRENT WATER RATE SCHEDULE
WATER RATE SCHEDULE Current Rates
Single-Family Residential
Tier 1 (0-18 hcf) $1.69 $1.69
Tier 2 (19+ hcf) $2.47 $2.47
All Other Customers (uniform) $1.91
Monthly Service Charge by Meter Size:
5/8 and 3/4-inch $26.06
1-inch $42.31

1.5-inch $82.96
2-inch $131.73
3-inch $261.79
4-inch $408.11
6-inch $814.54
8-inch $1,464.84
10-inch $1,952.56
12-inch $2,745.11
Fireline Meter Service Charge:
4-inch $90.69
6-inch $205.14
8-inch $357.74
10-inch $561.21

1. Water rates from source file: WaterRateIncrease2016.pdf for 2020 Prepared by NBS
Web: www.nbsgov.com Toll-Free:800.676.7516 Exhibit 4 (Current Rates), Page 17 of 29

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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study)

CITY OF COLTON

WATER RATE STUDY
Cost of Service Analysis
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 17 : CLASSIFICATION OF EXPENSES
FY 2024/25 (COM) (CONS) (CAP) (CA) (FP) (COM) (CONS) (CAP) (CA) (FP) Water Operations Expenses
1000 - Salaries & Benefits
1010 Salaries - Miscellaneous 1,141,658$ 285,414$ -$ 707,828$ 57,083$ 91,333$ 25% 0% 62% 5% 8% 1040 Salaries - Part time -$ - - - - - 25% 0% 62% 5% 8% 1050 Salaries - Overtime 273,696$ 68,424 - 169,691 13,685 21,896 25% 0% 62% 5% 8% 1100 Salary Related Benefits 157,992$ 39,498 - 97,955 7,900 12,639 25% 0% 62% 5% 8% 1101 Non-Persable Benefits 262,030$ 65,508 - 162,459 13,102 20,962 25% 0% 62% 5% 8% 1107 PERS Unfunded Liability 269,305$ 67,326 - 166,969 13,465 21,544 25% 0% 62% 5% 8% 1160 Education & Training 7,369$ 1,842 - 4,569 368 589 25% 0% 62% 5% 8% 1161 Certification-Training/Renew 4,737$ 1,184 - 2,937 237 379 25% 0% 62% 5% 8% 1170 Uniforms 22,106$ 5,527 - 13,706 1,105 1,768 25% 0% 62% 5% 8% 1180 Safety Equipment 7,369$ 1,842 - 4,569 368 589 25% 0% 62% 5% 8% 2000 - Maintenance and Operations
2210 Vehicle Operating Expense 48,672$ 12,168 - 30,177 2,434 3,894 25% 0% 62% 5% 8% 2240 Misc. Equipment Maint. 1,082$ 270 - 671 54 87 25% 0% 62% 5% 8% 2241 Permits 56,243$ 14,061 - 39,370 2,812 - 25% 0% 70% 5% 0% 2280 Travel & Meetings 5,408$ 1,352 - 3,353 270 433 25% 0% 62% 5% 8% 2301 Operating Supp./Equip. 209,132$ 52,283 - 129,662 10,457 16,731 25% 0% 62% 5% 8% 2303 Unsch. Immed. Line Repair 10,816$ 2,704 - 6,706 541 865 25% 0% 62% 5% 8% 2308 Hypochlorite Solution Purchases 129,792$ 129,792 - - - - 100% 0% 0% 0% 0% 2309 Perchlorate Resin 390,145$ 390,145 - - - - 100% 0% 0% 0% 0% 2310 Telecommunication Expense 21,632$ 5,408 - 13,412 1,082 1,731 25% 0% 62% 5% 8% 2315 Software Licensing Support 43,264$ 10,816 - 26,824 2,163 3,461 25% 0% 62% 5% 8% 2320 Utilities Expense5 2,205,000$ 2,205,000 - - - - 100% 0% 0% 0% 0% 2331 Purchased Water 146,016$ - 146,016 - - - 0% 100% 0% 0% 0% 2340 Legal Printing 6,490$ 1,622 - 3,699 649 519 25% 0% 57% 10% 8% 2350 Professional Services 1,156,230$ 289,058 - 659,051 115,623 92,498 25% 0% 57% 10% 8% 2352 PTF Legal Fees 37,856$ 9,464 - 21,578 3,786 3,028 25% 0% 57% 10% 8% 2380 Administrative Charges 7,571$ 1,893 - 4,694 379 606 25% 0% 62% 5% 8% 2381 Lease Payment To Gen Fund 870,000$ 217,500 - 539,400 43,500 69,600 25% 0% 62% 5% 8% 2411 Production Maintenance 97,344$ - - 89,556 - 7,788 0% 0% 92% 0% 8% 2420 Equipment Lease 37,856$ - - 34,828 - 3,028 0% 0% 92% 0% 8% 2421 Space Rent 7,571$ - - 7,571 - - 0% 0% 100% 0% 0% 2540 Fines, Penalties & Interest 324$ 81 - 227 16 - 25% 0% 70% 5% 0% 2560 Bad Debt Expense 16,224$ 4,056 - 11,357 811 - 25% 0% 70% 5% 0% 2570 Property Tax Expense 2,704$ 676 - 1,676 135 216 25% 0% 62% 5% 8% 2600 Cost Of Issuance 2,163$ 541 - 1,341 108 173 25% 0% 62% 5% 8% 2670 Bank Fees 77,875$ 19,469 - 48,283 3,894 6,230 25% 0% 62% 5% 8% 5000 - Total Cost Allocations
5990 Alloc. From Other Departments 2,133,572$ 533,393 106,679 1,216,136 106,679 170,686 25% 5% 57% 5% 8% 5991 Transfer Out - PERS Bond 86,145$ 21,536 - 53,410 4,307 6,892 25% 0% 62% 5% 8% Total: Water Operations Expenses 9,953,388$ 4,459,853$ 252,695$ 4,273,663$ 407,012$ 560,166$ 44.8% 2.5% 42.9% 4.1% 5.6% Budget Categories Basis of ClassificationFire
ProtectionCustomerCapacityConservation
ChargeCommodityTotal Revenue
Requirements1
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Packet Pg. 52
Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study)

CITY OF COLTON

WATER RATE STUDY
Cost of Service Analysis
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 18 : CLASSIFICATION OF EXPENSES
Total Revenue
Requirements1 Commodity Conservation
Charge Capacity Customer Fire
Protection
FY 2024/25 (COM) (CONS) (CAP) (CA) (FP) (COM) (CONS) (CAP) (CA) (FP) WATER/WASTEWATER ADMIN/TECH4
1000 - Salaries & Benefits
1010 Salaries - Miscellaneous 785,956$ 196,489$ -$ 487,293$ 39,298$ 62,877$ 25% 0% 62% 5% 8% 1040 Salaries - Part Time 136,848$ 34,212 - 84,846 6,842 10,948 25% 0% 62% 5% 8% 1050 Salaries - Overtime 8,421$ 2,105 - 5,221 421 674 25% 0% 62% 5% 8% 1100 Salary Related Benefits 101,596$ 25,399 - 62,989 5,080 8,128 25% 0% 62% 5% 8% 1101 Non-Persable Benefits 160,649$ 40,162 - 99,602 8,032 12,852 25% 0% 62% 5% 8% 1160 PERS Unfunded Liability 187,201$ 46,800 - 116,064 9,360 14,976 25% 0% 62% 5% 8% 1160 Education & Training 6,106$ 1,526 - 3,785 305 488 25% 0% 62% 5% 8% 1161 Certification - Training/Renew 4,211$ 1,053 - 2,611 211 337 25% 0% 62% 5% 8% 1170 Uniforms 526$ 132 - 326 26 42 25% 0% 62% 5% 8% 1180 Safety equipment 526$ 132 - 326 26 42 25% 0% 62% 5% 8% 2000 - Maintenance and Operations
2210 Vehicle Operating Expense 9,051$ 2,263 - 5,611 453 724 25% 0% 62% 5% 8% 2230 Vehicle Allowance 2,785$ 696 - 1,727 139 223 25% 0% 62% 5% 8% 2240 Misc. Equipment Maint. 1,622$ 406 - 1,006 81 130 25% 0% 62% 5% 8% 2270 Dues & Publications 20,550$ 5,138 - 12,741 1,028 1,644 25% 0% 62% 5% 8% 2280 Travel & Meetings 9,302$ 2,325 - 5,767 465 744 25% 0% 62% 5% 8% 2300 Office Supplies/Postage 19,469$ 4,867 - 12,071 973 1,558 25% 0% 62% 5% 8% 2340 Legal Printing 2,163$ 541 - 1,341 108 173 25% 0% 62% 5% 8% 2350 Professional Services 3,245$ 811 - 2,012 162 260 25% 0% 62% 5% 8% 2354 Printing & Publications 2,704$ 676 - 1,676 135 216 25% 0% 62% 5% 8% 2420 Equipment Lease 4,326$ 1,082 - 2,682 216 346 25% 0% 62% 5% 8% 5000 - Total Cost Allocations
5991 Transfer Out - POBs 61,527$ 15,382 - 38,147 3,076 4,922 25% 0% 62% 5% 8% 5995 Alloc Admin/Tech to Wastewater (686,085)$ (171,521) - (425,373) (34,304) (54,887) 25% 0% 62% 5% 8% Total: Water Admin/Tech Expenses 842,699$ 210,675$ -$ 522,473$ 42,135$ 67,416$ 25.0% 0.0% 62.0% 5.0% 8.0%

WATER CONSERVATION PROGRAMS
1000 - Salaries & Benefits
1160 Education & Training 2,632$ -$ 2,632$ -$ -$ -$ 0% 100% 0% 0% 0% 2000 - Maintenance and Operations
2041 Rebates - Water Conservation 43,264$ - 43,264 - - - 0% 100% 0% 0% 0% 2270 Dues & Publications 3,245$ - 3,245 - - - 0% 100% 0% 0% 0% 2280 Travel & Meetings 5,949$ - 5,949 - - - 0% 100% 0% 0% 0% 2300 Office Supplies/Postage 3,786$ - 3,786 - - - 0% 100% 0% 0% 0% 2301 Operating Supplies/Equipment 54,080$ - 54,080 - - - 0% 100% 0% 0% 0% 2341 Advertising 37,856$ - 37,856 - - - 0% 100% 0% 0% 0% 2350 Professional Services 57,325$ - 57,325 - - - 0% 100% 0% 0% 0% Total: Water Conservation Program Expenses 208,136$ -$ 208,136$ -$ -$ -$ 0.0% 100.0% 0.0% 0.0% 0.0% Grand Total: Operating Expenses 11,004,223$ 4,670,528$ 460,830$ 4,796,136$ 449,147$ 627,582$ 42.4% 4.2% 43.6% 4.1% 5.7% check to financial plan -$
Basis of ClassificationBudget Categories
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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study)

CITY OF COLTON

WATER RATE STUDY
Cost of Service Analysis
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 19 : CLASSIFICATION OF EXPENSES
Total Revenue
Requirements1 Commodity Conservation
Charge Capacity Customer Fire
Protection
FY 2024/25 (COM) (CONS) (CAP) (CA) (FP) (COM) (CONS) (CAP) (CA) (FP) Debt Service
Current Debt Obligations 1,380,923$ -$ -$ 1,380,923$ -$ -$ 0% 0% 100% 0% 0% Total: Debt Service 1,380,923$ -$ -$ 1,380,923$ -$ -$ 0.0% 0.0% 100.0% 0.0% 0.0% Rate Funded Capital Expenses
Rate Funded Capital Expenses 2,500,000$ -$ -$ 2,500,000$ -$ -$ 0% 0% 100% 0% 0% Total Expenses 14,885,146$ 4,670,528$ 460,830$ 8,677,059$ 449,147$ 627,582$ 31.4% 3.1% 58.3% 3.0% 4.2% Non-Rate Revenues
Interest Earnings (in Operating & Capital Reserves) (475,094)$ (149,071)$ (14,708)$ (276,949)$ (14,336)$ (20,031)$ 31.4% 3% 58.3% 3.0% 4.2% 5900 - Transfers
5924 Extend or Shorten Water Svc Line (635) (199) (20) (370) (19) (27) 31.4% 3% 58.3% 3.0% 4.2% 6700 - Charges for Current Services
6729 Plan Check Fees (41,421) (12,997) (1,282) (24,146) (1,250) (1,746) 31.4% 3% 58.3% 3.0% 4.2% 6758 Inspection Fees (45,905) (14,404) (1,421) (26,759) (1,385) (1,935) 31.4% 3% 58.3% 3.0% 4.2% 6788 Fee for Temp Fire Hydrant (510) (160) (16) (297) (15) (22) 31.4% 3% 58.3% 3.0% 4.2% 6792 Customer Service Charge (13,066) (4,100) (405) (7,617) (394) (551) 31.4% 3% 58.3% 3.0% 4.2% 6794 Frontage/Land Use Fee for Water Line (40,804) (12,803) (1,263) (23,786) (1,231) (1,720) 31.4% 3% 58.3% 3.0% 4.2% 6796 Water Meter Installation Fee (30,603) (9,602) (947) (17,840) (923) (1,290) 31.4% 3% 58.3% 3.0% 4.2% 6800 - Charges for Current Services
6800 Residential Sales
6803 Commercial Sales
6806 Sales To City Depts
6888 Construction Water
7800 - Miscellaneous Revenue
7820 Refunds, Rebates & Reimbursements (71,407) (22,405)$ (2,211)$ (41,626)$ (2,155)$ (3,011)$ 31.4% 3% 58.3% 3.0% 4.2% 7822 Damage to City Property-Recovery (6,121) (1,920) (189) (3,568) (185) (258) 31.4% 3% 58.3% 3.0% 4.2% 7830 Miscellaneous Revenue3 (20,402) (6,402) (632) (11,893) (616) (860) 31.4% 3% 58.3% 3.0% 4.2% 7900 - Miscellaneous Revenue - Enterprise
7908 Connection Fees
7910 5% Late Charge (51,005) (16,004) (1,579) (29,733) (1,539) (2,150) 31.4% 3% 58.3% 3.0% 4.2% NET REVENUE REQUIREMENTS 14,088,173$ 4,420,461$ 436,157$ 8,212,476$ 425,099$ 593,980$ Allocation of Revenue Requirements 100.0% 31.4% 3.1% 58.3% 3.0% 4.2%

1. Fiscal Year 2023/24 is used as the test year for establishing rates, since it is more representative of the City's cost profile going forward.

Check to Financial Plan -$
Basis of ClassificationBudget Categories
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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study)

CITY OF COLTON

WATER RATE STUDY
Cost of Service Analysis
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 20 : ADJUSTMENT TO CLASSIFICATION OF EXPENSES
Adjustment for Current Rate Level: Total (COM) (CONS) (CAP) (CA) (FP) Target Rate Rev. After Rate Increases, FY 2023/24 $15,821,685 Projected Rate Revenue at Current Rates $13,621,769
FY 2023/24 Projected Rate Adjustment 15.0%
Adjusted Net Revenue Req'ts 15,821,685$ 4,964,387$ 489,825$ 9,222,999$ 477,406$ 667,068$ Percent of Revenue 31.4% 3.1% 58.3% 3.0% 4.2%
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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study)

CITY OF COLTON

WATER RATE STUDY
Water Cost of Service Analysis
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 21 : DEVELOPMENT OF THE COMMODITY ALLOCATION FACTOR Customer Class
July '21 -
Jun '22
Volume (hcf)1
Percent of
Total Volume
% Adjustment
for
Conservation2
Estimated
Volume
Adjusted for
Conservation
Estimated
Percent of
Total Volume
Single-Family Residential 2,056,674 53.5% 0% 2,056,674 53.5% Commercial, Multi-Family & Industrial 1,635,957 42.6% 0% 1,635,957 42.6% Municipal 132,113 3.4% 0% 132,113 3.4% Subtotal 3,824,744 99.6% 0% 3,824,744 99.6% Commercial Fire 16,492 0.4% 0% 16,492 0.4% Total 3,841,236 100% 0% 3,841,236 100%

1. Consumption data source: City of Colton utility billing system data for July 2021 - June 2022 Source file: Billing Stat FY 21-22.xlsx

2. Assumed conservation is 0%
Commodity Related Costs: These costs are associated with the total consumption (flow) of water over a specified period of time (e.g. annual).

TABLE 22 : DEVELOPMENT OF THE CAPACITY ALLOCATION FACTORS Customer Class
Average
Monthly Use
(hcf)
Peak
Month Use
(hcf)1
Peak Month
Factor
Max Month
Capacity
Factor
Single-Family Residential 171,390 242,933 1.42 48.4%
Commercial, Multi-Family & Industrial 136,330 244,517 1.79 48.8% Municipal 11,009 13,857 1.26 2.8%
Commercial Fire 190 206 1.08 0.0%
Total 318,919 501,513 1.57 100%

1. Based on peak monthly data (peak day data not available). the maximum size of facilities required to meet this demand.

Development of the COMMODITY Allocation Factor
Capacity Related Costs: Costs associated with the maximum demand required at one point in time or Prepared by NBS
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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study)

CITY OF COLTON

WATER RATE STUDY
Water Cost of Service Analysis
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 23 : DEVELOPMENT OF THE CUSTOMER ALLOCATION FACTOR Customer Class Number of
Meters1,2
Percent of
Total
Single-Family Residential 9,253 86.7%
Commercial, Multi-Family & Industrial 1,071 10.0% Municipal 154 1.4%
Commercial Fire 190 1.8%
Total 10,668 100.0%

1. Number of meters is per the City of Colton's utility billing data as of June 2022.

2. Construction hydrants are excluded.

Customer Related Costs : Costs associated with having a customer on the water system. These costs vary with the addition or deletion of customers on the system. Examples: Meter-reading, Postage and billing.

Prepared by NBS
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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study)

CITY OF COLTON

WATER RATE STUDY
Water Cost of Service Analysis/Rate Design
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 24 : ALLOCATION OF WATER REVENUE REQUIREMENTS
Classification Components
Commodity-Related Costs 8,686,752$ 55%
Conservation-Related Costs 489,825 3%
Capacity-Related Costs 5,500,634 35%
Customer-Related Costs 477,406 3%
Fire Protection-Related Costs 667,068 4%
Net Revenue Requirement 15,821,685$ 100%
Fixed 42%
Variable 58%
Total 100%
TABLE 25 : ALLOCATION OF NET REVENUE REQUIREMENTS Proposed Alternative Allocation
Factor %
Allocated
Costs
Standard
Commodity
Allocated
Costs
Conservation
Allocation
Factor %
Allocated
Costs
Allocation
Factor %
Allocated
Costs
Allocation
Factor %
Allocated
Costs
Allocated Costs $ 8,686,752 $ 489,825 $ 5,500,634 $ 477,406 $ 667,068 $ 15,821,685 Single-Family Residential 53.5% 4,651,060$ 262,262$ 48.4% 2,664,508$ 86.7% 414,093$ 0% -$ 7,991,923$ 51% Commercial, Multi-Family & Industrial 42.6% 3,699,630 208,613 48.8% 2,681,881 10.0% 47,922 0% - 6,638,047 42% Municipal 3.4% 298,767 16,847 2.8% 151,985 1.4% 6,869 0% - 474,467 3% Commercial Fire 0.4% 37,296 2,103 0.0% 2,259 1.8% 8,522 100% 667,068 717,248 5% Total 100.0% 8,686,752$ 489,825$ 100.0% 5,500,634$ 100.0% 477,406$ 100% 667,068$ 15,821,685$ 100%

TRUE TRUE TRUE TRUE TRUE TRUE
Customer Class
Commodity Related Costs Capacity Related Costs Customer Related Costs Fire Protection Related Costs Proposed Alternative
% of COS Net
Revenue
Reqts
Cost of Service
Net Revenue
Reqts
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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study)

CITY OF COLTON

WATER RATE STUDY
Water Cost of Service Analysis/Rate Design
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 26 : CALCULATION OF MONTHLY FIXED METER SERVICE CHARGES (EXCLUDING COMMERCIAL FIRE METERS) Proposed Alternative 3/4 inch 1 inch 1.5 inch 2 inch 3 inch 4 inch 6 inch 8 inch 10 inch 12 inch Single-Family Residential 4,850 4,279 61 20 - - - - - - 9,210 Commercial, Multi-Family & Industrial 228 211 217 360 10 25 7 5 1 - 1,064 Municipal 17 46 33 51 - 5 - - - - 152 Total Meters/Accounts 5,095 4,536 311 431 10 30 7 5 1 - 10,426 Hydraulic Capacity Factor2 1.00 1.67 3.33 5.33 10.67 16.67 33.33 60.00 80.00 112.50 Total Equivalent Meters 5,095 7,560 1,037 2,299 107 500 233 300 80 - 17,210 Monthly Fixed Service Charges
Customer Costs ($/Acct/mo.)3 $3.75 $3.75 $3.75 $3.75 $3.75 $3.75 $3.75 $3.75 $3.75 $3.75 Capacity Costs ($/Acct/mo.)4 $26.62 $44.37 $88.74 $141.99 $283.98 $443.72 $887.45 $1,597.40 $2,129.87 $2,995.13 Total Monthly Meter Charge $30.37 $48.12 $92.49 $145.74 $287.73 $447.47 $891.19 $1,601.15 $2,133.62 $2,998.88 Annual Fixed Costs Allocated to Monthly Meter Charges
Customer Costs (w/o Comm. Fire Meters) $ 468,885 Capacity Costs 5,498,374
Total Fixed Meter Costs 5,967,259$
Annual Revenue from Mo. Meter Charges
Customer Charges 229,136$ 203,996$ 13,986$ 19,383$ 450$ 1,349$ 315$ 225$ 45$ -$ 468,885$ Capacity Charges 1,627,756 2,415,276 331,195 734,380 34,078 159,740 74,546 95,844 25,558 - 5,498,374 Total Revenue from Mo. Meter Charges 1,856,891$ 2,619,272$ 345,182$ 753,763$ 34,528$ 161,090$ 74,860$ 96,069$ 25,603$ -$ 5,967,259$

1. From the City's utility billing system data, as of June 2022. Source File: Billing Stat FY 21-22.xlsx

2. Source: AWWA Manual M1, "Safe Maximum Operating Capacity by Meter Type", Table B-1. Assumes displacement meters for 3/4 to 2-inch, singlejet meters for 3 to 6-inch and propeller meters for 8 to 12-inch meters.

3. Customer costs are allocated to each customer by dividing the total customer costs by the total number of customers.

4. Capacity costs are allocated by meter size and the hydraulic capacity of the meter.

TABLE 27 : CALCULATION OF COMMERCIAL FIRE METER MONTHLY FIXED METER SERVICE CHARGES Proposed Alternative 3 inch 4 inch 6 inch 8 inch 10 inch
Commercial Fire Meters 0 42 51 77 29 199
Total Meters/Accounts 0 42 51 77 29 199
Hydraulic Capacity Factor2 11.67 23.33 53.33 93.33 146.67 Total Equivalent Meters 0 980 2,720 7,187 4,253 15,140
Monthly Fixed Service Charges
Customer Costs ($/Acct/mo.)3 - $3.57 $3.57 $3.57 $3.57 Capacity Costs ($/Acct/mo.)4 - $85.96 $196.49 $343.85 $540.33 Total Monthly Meter Charge - $89.53 $200.05 $347.42 $543.90 Annual Fixed Costs Allocated to Monthly Meter Charges
Customer Costs $ 8,522
Capacity & Fire Protection Costs 669,327
Total Fixed Meter Costs 677,849$
Annual Revenue from Mo. Meter Charges
Customer Charges -$ 1,799$ 2,184$ 3,297$ 1,242$ 8,522$ Capacity Charges - 43,325 120,249 317,717 188,036 669,327 Total Revenue from Mo. Meter Charges -$ 45,124$ 122,433$ 321,014$ 189,278$ 677,849$

1. From the City's utility billing system data, as of June 2022. Source File: Billing Stat FY 21-22.xlsx

2. Source: AWWA Manual M6, "Water Meters - Selection, Installation, Testing, and Maintenance", Table 5-3. Fire Service Type (C703) for 4"-10" meters.

Number of Meters by Class and Size1 FY 2024/25
Number of Meters by Class and Size1 Total FY 2024/25
Total
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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study)

CITY OF COLTON

WATER RATE STUDY
Water Cost of Service Analysis/Rate Design
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 28 : PROPOSED VOLUMETRIC CHARGES Proposed Alternative Customer Classes Number of
Meters1
Water
Consumption
(hcf/yr.)2
Target Rev.

Req't from
Vol. Charges3
% of Total
Rate Revenue
Uniform
Commodity
Rates ($/hcf)
Proposed
Rate Structure
Single-Family Residential 9,253 2,056,674 4,913,322$ 31% $2.39 Uniform Commercial & Industrial 1,071 1,635,957 3,908,243 25% $2.39 Uniform Municipal 154 132,113 315,613 2% $2.39 Uniform Commercial Fire 190 16,492 39,399 0% $2.39 Uniform Total 10,668 3,841,236 9,176,577$ 58%

1. From the City's utility billing system data, as of June 2022. Source File: Billing Stat FY 21-22.xlsx

2. Water consumption is adjusted to account for conservation.

3. Commercial Fire meters class does not pay for conservation costs.

TABLE 29 : ESTIMATED SFR WATER CONSUMPTION BY TIER Proposed Alternative Customer Class Upper Tier
Breakpoint1
Applicable
Water
Consumption
2 % of SFR
Consumption
Commodity
Costs to
Recover2
Conservation
Costs to
Recover2
Total Vol.

Costs to
Recover
% of Vol. Rate
Rev.

Tiered Rates
($/hcf)
SFR - Tier 1 ≤ 25 hcf 1,480,805 72% 3,348,763$ -$ 3,348,763$ 68.2% $2.26 SFR - Tier 2 > 25 hcf 575,869 28% 1,302,297$ 262,262$ 1,564,559$ 31.8% $2.72 Total 2,056,674 100% 4,651,060$ 262,262$ 4,913,322$ 100%

1. The Tier 1 breakpoint is set to 25 hcf, the average SFR summer consumption per month. Tier 2 is above 25 hcf, which is 28% of total annual consumption.

TABLE 30 : ESTIMATED REVENUE BY CUSTOMER CLASS Proposed Alternative Tier 1 Tier 2 Uniform
Single-Family Residential 1,480,805 575,869 N.A. 4,913,322$ 3,078,601$ 7,991,923$ Commercial & Industrial N.A. N.A. 1,635,957 3,908,243 2,729,804 6,638,047 Municipal N.A. N.A. 132,113 315,613 158,854 474,467 Commercial Fire N.A. N.A. 16,492 39,399 677,849 717,248 Total 1,480,805 575,869 1,784,562 9,176,577$ 6,645,108$ 15,821,685$ Estimated
Fixed Rate
Revenue
Estimated
Total Rate
Revenue
Customer Class
Estimated Consumption Estimated
Volumetric
Rate Revenue
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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study)

CITY OF COLTON

WATER RATE STUDY
Water Cost of Service Analysis/Rate Design
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 31 : CURRENT VS. PROPOSED WATER RATES
FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29
Projected Annal Revenue Increase 15.00% 10.00% 10.00% 6.00% 6.00% Fixed Service Charge
5/8-inch meter $26.06 $30.37 $33.41 $36.75 $38.95 $41.29 3/4-inch meter $26.06 $30.37 $33.41 $36.75 $38.95 $41.29 1-inch meter $42.31 $48.12 $52.93 $58.23 $61.72 $65.42

1.5-inch meter $82.96 $92.49 $101.74 $111.92 $118.63 $125.75 2-inch meter $131.73 $145.74 $160.31 $176.34 $186.93 $198.14 3-inch meter $261.79 $287.73 $316.50 $348.15 $369.04 $391.19 4-inch meter $408.11 $447.47 $492.22 $541.44 $573.93 $608.36 6-inch meter $814.54 $891.19 $980.31 $1,078.35 $1,143.05 $1,211.63 8-inch meter $1,464.84 $1,601.15 $1,761.27 $1,937.39 $2,053.64 $2,176.86 10-inch meter $1,952.56 $2,133.62 $2,346.98 $2,581.68 $2,736.58 $2,900.78 Commercial Fire Meters - Fixed Service Charge
4-inch meter $90.69 $89.53 $98.48 $108.33 $114.83 $121.72 6-inch meter $205.14 $200.05 $220.06 $242.07 $256.59 $271.98 8-inch meter $357.74 $347.42 $382.16 $420.38 $445.60 $472.33 10-inch meter $561.21 $543.90 $598.29 $658.12 $697.61 $739.47 Commodity Charges for All Water Consumed
Single Family Residential Volumetric Rates:

Tier 1: 0 - 18 hcf $1.69 N.A. N.A. N.A. N.A. N.A.

Tier 2: 19+ hcf $2.47 N.A. N.A. N.A. N.A. N.A.

New, Uniform Rate
Rate Per HCF of Water Consumed N.A. $2.39 $2.63 $2.89 $3.06 $3.25 All Other Customers
Rate Per HCF of Water Consumed $1.91 $2.39 $2.63 $2.89 $3.06 $3.25 Water Rate Schedule Current
Rates
Proposed Water Rates
Prepared by NBS
www.nbsgov.com | Toll-Free: 800.676.7516 Current & Proposed Rates, Page 27 of 29

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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study) Prepared by NBS
Web: www.nbsgov.com Toll-Free:800.676.7516 SFR Bill Comp, Page 28 of 29 $34.51
$41.27
$48.03
$53.10
$58.95
$66.36
$73.77
$86.12
$98.47
$42.32
$51.87
$61.43
$68.59
$75.76
$82.93
$90.10
$102.04
$113.98
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
$110
$120
$130
5 9 13 16 19 22 25 30 35
Monthly Bill
Monthly Water Consumption (HCF)
Single-Family Residential Bill Comparison
Current vs. Proposed Rates (3/4" meter)
SFR Bill - Current Rates
SFR Bill - Proposed Alternative
Average
ANNUAL
Monthly Bill
(19 hcf)
Average
WINTER
Monthly Bill
(13 hcf)
Average
SUMMER
Monthly Bill
(25 hcf)

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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Prepared by NBS
Web: www.nbsgov.com Toll-Free:800.676.7516 Commercial Bill Comp, Page 29 of 29 $265.43
$294.08
$322.73
$351.38
$376.21
$404.86
$433.51
$465.98
$513.73
$312.97
$348.80
$384.64
$420.47
$451.53
$487.36
$523.20
$563.81
$623.53
$0
$100
$200
$300
$400
$500
$600
$700
70 85 100 115 128 143 158 175 200
Monthly Bill
Monthly Water Consumption (HCF)
Commercial Customer Bill Comparison
Current vs. Proposed Rates (2" meter)
Commercial Bill - Current Rates
Comm. Bill - Proposed Alternative
Average
WINTER
Monthly Bill
(100 hcf)
Average
ANNUAL
Monthly Bill
(128 hcf)
Average
SUMMER
Monthly Bill
(158 hcf)

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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater CITY OF COLTON Financial Plan & Reserve Summary

SEWER RATE STUDY
Financial Plan and Reserve Projections
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute 1 CIP & FUNDING OPTION FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 FY 2033/34 FY 2034/35 1 40% CIP + $70M SRF 0% 30% 20% 10% 8% 8% 6% 6% 6% 6% 6% 6% 2 40% CIP + $70M SRF 0% 18% 18% 18% 18% 18% 6% 6% 6% 6% 6% 6% 3 20% CIP + $40M SRF 0% 10% 10% 10% 10% 10% 6% 6% 6% 6% 6% 6% CUMULATIVE INCREASES OVER PROP 218 RATE PERIOD
40% CIP + $70M SRF 76% 0.4
40% CIP + $70M SRF 90% 0.4
20% CIP + $40M SRF 50% 0.2
TABLE 1 : FINANCIAL PLAN AND SUMMARY OF REVENUE REQUIREMENTS Budget Projected
FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 FY 2033/34 FY 2034/35 Sources of Sewer Funds
Colton Rate Revenue Under Prevailing Rates1,2 7,443,910$ 7,518,349$ 7,593,533$ 7,669,468$ 7,746,163$ 7,823,624$ 7,901,860$ 7,980,879$ 8,060,688$ 8,141,295$ 8,222,708$ 8,304,935$ 8,387,984$ Grand Terrace Rate Revenue Under Prevailing Rat 2,169,802$ 2,191,500$ 2,213,415$ 2,235,549$ 2,257,905$ 2,280,484$ 2,303,289$ 2,326,321$ 2,349,585$ 2,373,080$ 2,396,811$ 2,420,779$ 2,444,987$ Non-Rate Revenues 50,500 51,005 51,515 52,030 52,551 53,076 53,607 54,143 54,684 55,231 55,783 56,341 56,905 Interest Earnings (in Operating & Capital Reserves 7,512 146,697 135,820 154,861 213,608 52,813 57,858 85,189 - - - 75,389 194,113 Total Sources of Funds 9,671,724$ 9,907,551$ 9,994,283$ 10,111,908$ 10,270,225$ 10,209,997$ 10,316,614$ 10,446,533$ 10,464,957$ 10,569,606$ 10,675,302$ 10,857,444$ 11,083,989$ Uses of Sewer Funds
Operating Expenses4
Salaries and Benefits 2,508,329$ 2,512,559$ 2,536,763$ 2,562,131$ 2,587,752$ 2,613,630$ 2,639,766$ 2,666,164$ 2,692,826$ 2,719,754$ 2,746,951$ 2,774,421$ 2,802,165$ Maintenance and Operations 4,515,750 4,673,052 4,837,312 5,008,847 5,187,989 5,375,083 5,570,493 5,774,599 5,987,800 6,210,513 6,443,176 6,686,248 6,940,207 Capital Outlay 196,600 204,464 212,643 221,148 229,994 239,194 248,762 258,712 269,061 279,823 291,016 302,657 314,763 Total Cost Allocations 2,359,004 2,450,075 2,544,755 2,643,190 2,745,528 2,851,926 2,962,545 3,077,555 3,197,131 3,321,454 3,450,714 3,585,109 3,724,843 Additional Expenses Related to Grand Terrace 603,091 607,439 611,890 616,447 621,116 625,898 630,799 635,821 640,970 646,249 651,663 657,216 662,914 Subtotal: Operating Expenses 10,182,774$ 10,447,588$ 10,743,363$ 11,051,764$ 11,372,379$ 11,705,730$ 12,052,365$ 12,412,851$ 12,787,787$ 13,177,793$ 13,583,521$ 14,005,650$ 14,444,892$ Other Expenditures:

Existing Debt Service 1,275,192$ 721,822$ 719,684$ 412,658$ 409,408$ 410,658$ 410,868$ 410,313$ 409,313$ 412,144$ 408,950$ 409,988$ -$ New Debt Service5 - - - - 3,474,194 3,474,194 3,474,194 3,474,194 3,474,194 3,474,194 3,474,194 3,474,194 3,474,194 Rate-Funded Capital Expenses - - - - 1,881,824 2,655,891 2,010,963 14,888,230 9,638,477 1,920,284 1,983,654 889,383 - Subtotal: Other Expenditures 1,275,192$ 721,822$ 719,684$ 412,658$ 5,765,425$ 6,540,742$ 5,896,025$ 18,772,736$ 13,521,984$ 5,806,622$ 5,866,798$ 4,773,564$ 3,474,194$ Total Uses of Sewer Funds 11,457,966$ 11,169,410$ 11,463,047$ 11,464,421$ 17,137,804$ 18,246,473$ 17,948,390$ 31,185,587$ 26,309,771$ 18,984,414$ 19,450,318$ 18,779,214$ 17,919,086$ plus: Revenue from Rate Increases - - 2,942,084 5,546,810 7,162,912 8,621,633 10,220,889 11,560,916 13,041,096 14,592,660 16,260,073 18,051,577 19,975,996 Annual Surplus/(Deficit) (1,786,242)$ (1,261,859)$ 1,473,320$ 4,194,297$ 295,334$ 585,157$ 2,589,114$ (9,178,138)$ (2,803,718)$ 6,177,852$ 7,485,057$ 10,129,806$ 13,140,899$ Net Revenue Reqt. (Total Uses less Non-Rate Reve 11,399,954$ 10,971,708$ 11,275,712$ 11,257,530$ 16,871,646$ 18,140,584$ 17,836,925$ 31,046,255$ 26,255,086$ 18,929,183$ 19,394,535$ 18,647,484$ 17,668,069$ Total Rate Revenue After Rate Increases 9,613,712$ 9,709,849$ 12,749,032$ 15,451,827$ 17,166,979$ 18,725,741$ 20,426,038$ 21,868,117$ 23,451,368$ 25,107,035$ 26,879,592$ 28,777,291$ 30,808,968$ Projected Annual Increase to Rate Revenue 0.0% 0.0% 30.0% 20.0% 10.0% 8.0% 8.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% Cumulative Increase from Annual Revenue Increas 0.00% 0.00% 30.00% 56.00% 71.60% 85.33% 100.15% 112.16% 124.89% 138.39% 152.69% 167.85% 183.92% Debt Coverage After Rate Increase (Excludes Rate-Fu (0.40) (0.75) 3.05 11.16 1.08 1.15 2.18 2.47 2.76 3.08 3.44 3.84 4.78

RATE REVENUE REQUIREMENTS SUMMARY
PROP 218 RATE PERIOD
5-Year Rate Adoption Period Projected
NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516
Financial Plan, 1 of 31

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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study) CITY OF COLTON Financial Plan & Reserve Summary

SEWER RATE STUDY
Financial Plan and Reserve Projections
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 2 : RESERVE FUND SUMMARY
Budget
FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 FY 2033/34 FY 2034/35 Total Beginning Cash1 9,743,016$
Operating Reserve
Beginning Reserve Balance 5,500,000$ 2,550,000$ 1,700,257$ 2,690,000$ 2,760,000$ 2,840,000$ 2,930,000$ 3,010,000$ (6,160,871)$ (8,956,774)$ (2,775,912)$ 3,400,000$ 3,800,000$ Plus: Net Cash Flow (After Rate Increases) (1,786,242) (1,261,859) 1,473,320 4,194,297 295,334 585,157 2,589,114 (9,178,138) (2,803,718) 6,177,852 7,485,057 10,129,806 13,140,899 Plus: Transfer of Debt Reserve Surplus 3,524,324 712,116 14,221 395,298 10,665 4,988 6,308 7,268 7,815 3,010 10,586 5,246 519,044 Plus: Transfer from/Use of Rate Stabilization Re - - - - - - - - - - - 300,000 - Less: Transfer Out to Capital Replacement Reser (4,688,082) - (497,799) (4,519,595) (225,999) (500,145) (2,515,422) - - - (1,319,732) (10,035,053) (13,849,943) Less: Transfer Out to Rate Stabilization Reserve - (300,000) - - - - - - - - - - - Ending Operating Reserve Balance 2,550,000$ 1,700,257$ 2,690,000$ 2,760,000$ 2,840,000$ 2,930,000$ 3,010,000$ (6,160,871)$ (8,956,774)$ (2,775,912)$ 3,400,000$ 3,800,000$ 3,610,000$ Target Ending Balance (90-days of O&M) 2,550,000$ 2,610,000$ 2,690,000$ 2,760,000$ 2,840,000$ 2,930,000$ 3,010,000$ 3,100,000$ 3,200,000$ 3,290,000$ 3,400,000$ 3,500,000$ 3,610,000$ Capital Rehabilitation & Replacement Reserve
Beginning Reserve Balance 4,243,016$ 8,910,698$ 8,910,698$ 9,408,497$ 13,928,092$ 1,285,999$ 1,590,145$ 3,645,422$ 1,170,000$ 1,170,000$ 1,170,000$ 2,489,732$ 11,365,053$ Plus: Grant Proceeds - - - - - - - - - - - - - Plus: Transfer of Operating Reserve Surplus 4,688,082 - 497,799 4,519,595 225,999 500,145 2,515,422 - - - 1,319,732 10,035,053 13,849,943 Less: Use of Reserves for Capital Projects (20,400) - - - (12,868,092) (195,999) (460,145) (2,475,422) - - - (1,159,732) (2,116,735) Ending Capital Improvement & Depreciation Res 8,910,698$ 8,910,698$ 9,408,497$ 13,928,092$ 1,285,999$ 1,590,145$ 3,645,422$ 1,170,000$ 1,170,000$ 1,170,000$ 2,489,732$ 11,365,053$ 23,098,261$ Target Ending Balance (3% of Assets) 2 1,004,100$ 970,000$ 1,000,000$ 1,030,000$ 1,060,000$ 1,090,000$ 1,130,000$ 1,170,000$ 1,210,000$ 1,250,000$ 1,290,000$ 1,330,000$ 1,370,000$ Rate Stabilization Reserve 3
Beginning Reserve Balance -$ -$ 300,000$ 300,000$ 300,000$ 300,000$ 300,000$ 300,000$ 300,000$ 300,000$ 300,000$ 300,000$ -$ Plus: Transfers from Operating Reserve - 300,000 - - - - - - - - - - - Less: Use of Reserve/Transfer to Operating Reserv - - - - - - - - - - - (300,000) - Ending Rate Stabilization Reserve Balance -$ 300,000$ 300,000$ 300,000$ 300,000$ 300,000$ 300,000$ 300,000$ 300,000$ 300,000$ 300,000$ -$ -$ Target Ending Balance 300,000$ 300,000$ 300,000$ 300,000$ 300,000$ 300,000$ 300,000$ 300,000$ 300,000$ 300,000$ 300,000$ 300,000$ -$ Ending Balance - Excludes Debt Reserve & Bond F 11,460,698$ 10,910,956$ 12,398,497$ 16,988,092$ 4,425,999$ 4,820,145$ 6,955,422$ (4,690,871)$ (7,486,774)$ (1,305,912)$ 6,189,732$ 15,165,053$ 26,708,261$ Minimum Target Ending Balance - Excl. Debt Res 3,854,100$ 3,880,000$ 3,990,000$ 4,090,000$ 4,200,000$ 4,320,000$ 4,440,000$ 4,570,000$ 4,710,000$ 4,840,000$ 4,990,000$ 5,130,000$ 4,980,000$ Ending Surplus/(Deficit) Compared to Reserve Ta 7,606,598$ 7,030,956$ 8,408,497$ 12,898,092$ 225,999$ 500,145$ 2,515,422$ (9,260,871)$ ########### (6,145,912)$ 1,199,732$ 10,035,053$ 21,728,261$ Restricted Reserves:

Bond Project Fund
Beginning Reserve Balance -$ -$ -$ (35,000,000)$ (70,000,000)$ -$ -$ -$ -$ -$ -$ -$ -$ Plus: Lease-Purchase Financing Proceeds - - - - 70,000,000 - - - - - - - - Plus: Revenue Bond Proceeds - - - - - - - - - - - - - Less: Use of Bond & Loan Funds for Capital Projec - - (35,000,000) (35,000,000) - - - - - - - - - Ending Bond Project Fund Balance -$ -$ (35,000,000)$ (70,000,000)$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Target Ending Balance -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Debt Reserve
Beginning Reserve Balance4 5,053,628$ 1,593,990$ 902,277$ 899,605$ 515,822$ 511,759$ 513,322$ 513,584$ 512,891$ 511,641$ 515,179$ 511,188$ 512,484$ Plus: Reserve Funding from New Debt Obligatio - - - - - - - - - - - - - Plus: Interest Earnings 64,686 20,403 11,549 11,515 6,603 6,551 6,571 6,574 6,565 6,549 6,594 6,543 6,560 Less: Transfer of Surplus to Operating Reserve (3,524,324) (712,116) (14,221) (395,298) (10,665) (4,988) (6,308) (7,268) (7,815) (3,010) (10,586) (5,246) (519,044) Ending Debt Reserve Balance 1,593,990$ 902,277$ 899,605$ 515,822$ 511,759$ 513,322$ 513,584$ 512,891$ 511,641$ 515,179$ 511,188$ 512,484$ -$ Target Ending Balance 1,593,990$ 902,277$ 899,605$ 515,822$ 511,759$ 513,322$ 513,584$ 512,891$ 511,641$ 515,179$ 511,188$ 512,484$ -$ Connection Fee Reserve
Beginning Reserve Balance -$ 659,656$ 1,334,352$ 2,024,347$ 2,729,903$ 3,451,286$ 4,188,768$ 4,942,622$ 5,713,128$ 6,500,569$ 7,305,233$ 8,127,410$ 8,967,398$ Plus: Interest Earnings - 8,444 17,080 25,912 34,943 44,176 53,616 63,266 73,128 83,207 93,507 104,031 114,783 Plus: Capacity Fee Revenue5 659,656 666,253 672,915 679,644 686,441 693,305 700,238 707,241 714,313 721,456 728,671 735,957 743,317 Less: Use of Reserves for Capital Projects - - - - - - - - - - - - - Ending Connection Fee Fund Balance 659,656$ 1,334,352$ 2,024,347$ 2,729,903$ 3,451,286$ 4,188,768$ 4,942,622$ 5,713,128$ 6,500,569$ 7,305,233$ 8,127,410$ 8,967,398$ 9,825,498$ Annual Interest Earnings Rate6 1.28% 1.28% 1.28% 1.28% 1.28% 1.28% 1.28% 1.28% 1.28% 1.28% 1.28% 1.28% 1.28%

1. From the City's trial balance as of July 1, 2022. Source file: 522-Sewer TrialBal-Jul22.pdf

2. The Capital Rehab & Replacement reserve target is set to 3% of net assets as of FY'23/24. It does not increase as "Assets Net of Depreciation" more than triples over the next 5 years.

3. Per the Official Statement for the 2000 Wastewater Bonds, the City is required to maintain a rate stabilization reserve of $300,000.

4. The total cash with the Fiscal Agent per the City's ACFR as of July 1, 2021 is the debt reserve fund.

5. NBS assumes that capacity fee revenue in future years will be consistent with FY 2022/23 estimates, and the funds will be available to spend on future capital projects.

6. Historical interest earning rates were referenced on the California Treasurer's Office website for funds invested in LAIF. Historical 5-year average.

SUMMARY OF CASH ACTIVITY ProjectedProjected
NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516
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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study)

CITY OF COLTON

SEWER RATE STUDY
Rate Adjustment Charts and Report Tables
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute $0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
2024 2025 2026 2027 2028 2029
Fiscal Year Ending June 30
Sewer Revenue Requirements vs.

Revenue Under Existing and Increased Rates
Rate Funded Capital Expenses Debt Service
O&M Expenses Revenues under Existing Rates
Revenues under Increased Rates
NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516
Charts and Tables, 3 of 31

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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater

CITY OF COLTON

SEWER RATE STUDY
Rate Adjustment Charts and Report Tables
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute $-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
2024 2025 2026 2027 2028 2029
Fiscal Year Ending June 30
Ending Cash Balances vs.

Recommended Reserve Targets
Ending Cash Balance (Unrestricted)
Minimum Target Reserve Balance
NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516
Charts and Tables, 4 of 31

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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater

CITY OF COLTON

SEWER RATE STUDY
Rate Adjustment Charts and Report Tables
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute

30.0%

20.0%

10.0%

8.0% 8.0%
0%
5%
10%
15%
20%
25%
30%
35%
2025 2026 2027 2028 2029
Fiscal Year Ending June 30
Projected Increases to Rate Revenue
NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516
Charts and Tables, 5 of 31

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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater CITY OF COLTON EXHIBIT 1

SEWER RATE STUDY
Operating Revenue and Expenses
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 3 : REVENUE FORECAST
SOURCES OF REVENUE1 Basis 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 5600 - Use of Money and Property
5601 Pooled Interest2 Ref to FP 7,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 5602 Interest on Investment2 Ref to FP -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 5604 Trustee Interest Income2 Ref to FP 512$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 6700 - Charges for Current Services
6711 Industrial Discharge Permit 1 7,500$ 7,575$ 7,651$ 7,727$ 7,805$ 7,883$ 7,961$ 8,041$ 8,121$ 8,203$ 8,285$ 8,368$ 8,451$ 6729 Plan Check Fees 1 3,000$ 3,030$ 3,060$ 3,091$ 3,122$ 3,153$ 3,185$ 3,216$ 3,249$ 3,281$ 3,314$ 3,347$ 3,380$ 6743 Grand Terrace WW Cap Chg 1 57,500$ 58,075$ 58,656$ 59,242$ 59,835$ 60,433$ 61,037$ 61,648$ 62,264$ 62,887$ 63,516$ 64,151$ 64,792$ 6758 Inspection Fees 1 10,000$ 10,100$ 10,201$ 10,303$ 10,406$ 10,510$ 10,615$ 10,721$ 10,829$ 10,937$ 11,046$ 11,157$ 11,268$ 6800 - Charges for Current Services
6812 Sewer Chgs - Residential 1 6,360,292$ 6,423,895$ 6,488,134$ 6,553,015$ 6,618,545$ 6,684,731$ 6,751,578$ 6,819,094$ 6,887,285$ 6,956,158$ 7,025,719$ 7,095,976$ 7,166,936$ 6813 Sewer Chgs - Commercial 1 1,060,785$ 1,071,393$ 1,082,107$ 1,092,928$ 1,103,857$ 1,114,896$ 1,126,045$ 1,137,305$ 1,148,678$ 1,160,165$ 1,171,767$ 1,183,484$ 1,195,319$ 6814 Sewer Chgs - City Dept 1 22,833$ 23,061$ 23,292$ 23,525$ 23,760$ 23,998$ 24,238$ 24,480$ 24,725$ 24,972$ 25,222$ 25,474$ 25,729$ 6821 Sewer Chgs - GT Res 1 1,497,202$ 1,512,174$ 1,527,296$ 1,542,569$ 1,557,994$ 1,573,574$ 1,589,310$ 1,605,203$ 1,621,255$ 1,637,468$ 1,653,842$ 1,670,381$ 1,687,085$ 6822 Sewer Chgs - GT Comm 1 672,600$ 679,326$ 686,119$ 692,980$ 699,910$ 706,909$ 713,978$ 721,118$ 728,329$ 735,613$ 742,969$ 750,399$ 757,903$ 7800 - Miscellaneous Revenue
7820 Refunds, Rebates & Reimbursements 1 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 7822 Damage to City Property-Recovery 1 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 7830 Miscellaneous Revenue 1 10,000$ 10,100$ 10,201$ 10,303$ 10,406$ 10,510$ 10,615$ 10,721$ 10,829$ 10,937$ 11,046$ 11,157$ 11,268$ 7900 - Miscellaneous Revenue - Enterprise
7908 Connection Fees-Colton 1 602,156$ 608,178$ 614,259$ 620,402$ 626,606$ 632,872$ 639,201$ 645,593$ 652,049$ 658,569$ 665,155$ 671,806$ 678,524$ 7910 5% Late Charge 1 20,000$ 20,200$ 20,402$ 20,606$ 20,812$ 21,020$ 21,230$ 21,443$ 21,657$ 21,874$ 22,092$ 22,313$ 22,537$ TOTAL: REVENUE 10,331,380$ 10,427,107$ 10,531,378$ 10,636,692$ 10,743,058$ ########## ########## 11,068,584$ 11,179,270$ 11,291,062$ 11,403,973$ 11,518,013$ 11,633,193$ TABLE 4 : REVENUE SUMMARY
SOURCES OF REVENUE 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 CITY OF COLTON - SEWER RATE REVENUE 7,443,910$ 7,518,349$ 7,593,533$ 7,669,468$ 7,746,163$ 7,823,624$ 7,901,860$ 7,980,879$ 8,060,688$ 8,141,295$ 8,222,708$ 8,304,935$ 8,387,984$ CITY OF GRAND TERRACE - SEWER RATE REVENUE 2,169,802$ 2,191,500$ 2,213,415$ 2,235,549$ 2,257,905$ 2,280,484$ 2,303,289$ 2,326,321$ 2,349,585$ 2,373,080$ 2,396,811$ 2,420,779$ 2,444,987$ CITY OF COLTON - CAPACITY CHARGES/CONNECTION FEES 602,156$ 608,178$ 614,259$ 620,402$ 626,606$ 632,872$ 639,201$ 645,593$ 652,049$ 658,569$ 665,155$ 671,806$ 678,524$ CITY OF GRAND TERRACE - CAPACITY CHARGES/CONNECTION FE 57,500$ 58,075$ 58,656$ 59,242$ 59,835$ 60,433$ 61,037$ 61,648$ 62,264$ 62,887$ 63,516$ 64,151$ 64,792$ ONE-TIME REVENUE FROM GRAND TERRACE -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ INTEREST REVENUE 7,512$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ ALL OTHER OPERATING REVENUE 50,500$ 51,005$ 51,515$ 52,030$ 52,551$ 53,076$ 53,607$ 54,143$ 54,684$ 55,231$ 55,783$ 56,341$ 56,905$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516
Exhibit 1 (O&M), 6 of 31

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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study) CITY OF COLTON EXHIBIT 1

SEWER RATE STUDY
Operating Revenue and Expenses
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 5 : OPERATING EXPENSE FORECAST
Wastewater Operations3 Basis 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 1000 - Salaries & Benefits
1010 Salaries - Miscellaneous 3 1,372,172$ 1,343,839$ 1,357,278$ 1,370,850$ 1,384,559$ 1,398,404$ 1,412,389$ 1,426,512$ 1,440,778$ 1,455,185$ 1,469,737$ 1,484,435$ 1,499,279$ 1040 Salaries - Part time 3 -$ 9,130$ 8,300$ 8,383$ 8,467$ 8,551$ 8,637$ 8,723$ 8,811$ 8,899$ 8,988$ 9,078$ 9,168$ 1050 Salaries - Overtime 3 260,000$ 288,860$ 291,749$ 294,666$ 297,613$ 300,589$ 303,595$ 306,631$ 309,697$ 312,794$ 315,922$ 319,081$ 322,272$ 1070 GASB 68 Pension Expense 3 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 1085 OPEB Contra Expense 3 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 1100 Salary Related Benefits 3 174,435$ 195,468$ 197,423$ 199,397$ 201,391$ 203,405$ 205,439$ 207,493$ 209,568$ 211,664$ 213,780$ 215,918$ 218,077$ 1101 Non-Persable Benefits 3 314,926$ 305,418$ 308,472$ 311,557$ 314,672$ 317,819$ 320,997$ 324,207$ 327,449$ 330,724$ 334,031$ 337,371$ 340,745$ 1107 PERS Unfunded Liability 3 342,796$ 346,224$ 349,686$ 353,183$ 356,715$ 360,282$ 363,885$ 367,524$ 371,199$ 374,911$ 378,660$ 382,447$ 386,271$ 1150 Retiree Health Insurance 3 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 1160 Education & Training 3 12,000$ 1,000$ 1,010$ 1,020$ 1,030$ 1,041$ 1,051$ 1,062$ 1,072$ 1,083$ 1,094$ 1,105$ 1,116$ 1161 Certification-Training/Renew 3 4,000$ 4,040$ 4,080$ 4,121$ 4,162$ 4,204$ 4,246$ 4,289$ 4,331$ 4,375$ 4,418$ 4,463$ 4,507$ 1170 Uniforms 3 20,000$ 10,500$ 10,605$ 10,711$ 10,818$ 10,926$ 11,036$ 11,146$ 11,257$ 11,370$ 11,484$ 11,599$ 11,715$ 1180 Safety Equipment 3 8,000$ 8,080$ 8,161$ 8,242$ 8,325$ 8,408$ 8,492$ 8,577$ 8,663$ 8,749$ 8,837$ 8,925$ 9,015$ 2000 - Maintenance and Operations
2210 Vehicle Operating Expense 5 47,000$ 50,760$ 54,821$ 59,206$ 63,943$ 69,058$ 74,583$ 80,550$ 86,994$ 93,953$ 101,469$ 109,587$ 118,354$ 2230 Vehicle Allowance-CM Rod Foster 5 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 2240 Misc. Equipment Maint. 2 1,000$ 1,040$ 1,082$ 1,125$ 1,170$ 1,217$ 1,265$ 1,316$ 1,369$ 1,423$ 1,480$ 1,539$ 1,601$ 2241 Permits 2 32,000$ 33,280$ 34,611$ 35,996$ 37,435$ 38,933$ 40,490$ 42,110$ 43,794$ 45,546$ 47,368$ 49,263$ 51,233$ 2250 Buildings & Grounds Maint. 2 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 2255 WWT Plant Operations & Maint. 2 210,000$ 218,400$ 227,136$ 236,221$ 245,670$ 255,497$ 265,717$ 276,346$ 287,400$ 298,895$ 310,851$ 323,285$ 336,217$ 2256 Lift Station Operations & Maint. 2 20,000$ 20,800$ 21,632$ 22,497$ 23,397$ 24,333$ 25,306$ 26,319$ 27,371$ 28,466$ 29,605$ 30,789$ 32,021$ 2257 Collection Systems Oper & Maint 2 40,000$ 41,600$ 43,264$ 44,995$ 46,794$ 48,666$ 50,613$ 52,637$ 54,743$ 56,932$ 59,210$ 61,578$ 64,041$ 2270 Dues & Publications 2 2,632$ 2,737$ 2,847$ 2,961$ 3,079$ 3,202$ 3,330$ 3,464$ 3,602$ 3,746$ 3,896$ 4,052$ 4,214$ 2280 Travel & Meeting 2 4,000$ 4,160$ 4,326$ 4,499$ 4,679$ 4,867$ 5,061$ 5,264$ 5,474$ 5,693$ 5,921$ 6,158$ 6,404$ 2301 Operating Supp./Equip. 2 74,171$ 77,138$ 80,223$ 83,432$ 86,770$ 90,240$ 93,850$ 97,604$ 101,508$ 105,568$ 109,791$ 114,183$ 118,750$ 2303 Unsch. Immediate Line Rep 2 7,000$ 7,280$ 7,571$ 7,874$ 8,189$ 8,517$ 8,857$ 9,212$ 9,580$ 9,963$ 10,362$ 10,776$ 11,207$ 2310 Telecommunication Expense 2 17,000$ 17,680$ 18,387$ 19,123$ 19,888$ 20,683$ 21,510$ 22,371$ 23,266$ 24,196$ 25,164$ 26,171$ 27,218$ 2315 Software/Licensing/Support 2 32,000$ 33,280$ 34,611$ 35,996$ 37,435$ 38,933$ 40,490$ 42,110$ 43,794$ 45,546$ 47,368$ 49,263$ 51,233$ 2320 Utilities Expense 4 1,032,556$ 1,084,184$ 1,138,393$ 1,195,313$ 1,255,078$ 1,317,832$ 1,383,724$ 1,452,910$ 1,525,555$ 1,601,833$ 1,681,925$ 1,766,021$ 1,854,322$ 2340 Legal Printing 2 4,000$ 4,160$ 4,326$ 4,499$ 4,679$ 4,867$ 5,061$ 5,264$ 5,474$ 5,693$ 5,921$ 6,158$ 6,404$ 2350 Professional Services 2 1,014,254$ 1,054,824$ 1,097,017$ 1,140,898$ 1,186,534$ 1,233,995$ 1,283,355$ 1,334,689$ 1,388,077$ 1,443,600$ 1,501,344$ 1,561,397$ 1,623,853$ 2380 Administrative Charges 2 5,000$ 5,200$ 5,408$ 5,624$ 5,849$ 6,083$ 6,327$ 6,580$ 6,843$ 7,117$ 7,401$ 7,697$ 8,005$ 2381 JPALease Payment To Gen Fund 6 570,000$ 570,000$ 570,000$ 570,000$ 570,000$ 570,000$ 570,000$ 570,000$ 570,000$ 570,000$ 570,000$ 570,000$ 570,000$ 2381 Lease Payment to Grand Terrace 6 318,349$ 318,349$ 318,349$ 318,349$ 318,349$ 318,349$ 318,349$ 318,349$ 318,349$ 318,349$ 318,349$ 318,349$ 318,349$ 2420 Equipment Lease/Rental 2 35,000$ 36,400$ 37,856$ 39,370$ 40,945$ 42,583$ 44,286$ 46,058$ 47,900$ 49,816$ 51,809$ 53,881$ 56,036$ 2421 Space Rent 2 6,500$ 6,760$ 7,030$ 7,312$ 7,604$ 7,908$ 8,225$ 8,554$ 8,896$ 9,252$ 9,622$ 10,006$ 10,407$ 2500 Principal Ref Ex 3
2510 Interest Expense Ref Ex 3
2550 Depreciation Expense 2
2555 Amortization Expense 2 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 2560 Bad Debt Expense 2 48,000$ 49,920$ 51,917$ 53,993$ 56,153$ 58,399$ 60,735$ 63,165$ 65,691$ 68,319$ 71,052$ 73,894$ 76,850$ 2600 Cost Of Issuance 6 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 2650 Operations & Maint. RIX 2 786,288$ 817,740$ 850,449$ 884,467$ 919,846$ 956,640$ 994,905$ 1,034,701$ 1,076,089$ 1,119,133$ 1,163,898$ 1,210,454$ 1,258,872$ 2651 Operations & Maint. SARI Line 2 155,000$ 161,200$ 167,648$ 174,354$ 181,328$ 188,581$ 196,124$ 203,969$ 212,128$ 220,613$ 229,438$ 238,615$ 248,160$ 2670 Bank Fees 2 54,000$ 56,160$ 58,406$ 60,743$ 63,172$ 65,699$ 68,327$ 71,060$ 73,903$ 76,859$ 79,933$ 83,131$ 86,456$ Capital Outlay
4900 Office Equipment 2 126,600$ 131,664$ 136,931$ 142,408$ 148,104$ 154,028$ 160,189$ 166,597$ 173,261$ 180,191$ 187,399$ 194,895$ 202,691$ 4910 Automobile 2 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 4920 Radio Equipmt 2 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 4930 Miscellaneous Equipment 2 20,000$ 20,800$ 21,632$ 22,497$ 23,397$ 24,333$ 25,306$ 26,319$ 27,371$ 28,466$ 29,605$ 30,789$ 32,021$ 4955 Operations Equipment 2 50,000$ 52,000$ 54,080$ 56,243$ 58,493$ 60,833$ 63,266$ 65,797$ 68,428$ 71,166$ 74,012$ 76,973$ 80,052$ 5000 - Total Cost Allocations
5990 Allocations To Gen Fund Depts.4 2 1,615,027$ 1,679,628$ 1,746,813$ 1,816,686$ 1,889,353$ 1,964,927$ 2,043,524$ 2,125,265$ 2,210,276$ 2,298,687$ 2,390,634$ 2,486,260$ 2,585,710$ 5991 Transfer Out - PERS 3 109,653$ 110,750$ 111,857$ 112,976$ 114,105$ 115,246$ 116,399$ 117,563$ 118,738$ 119,926$ 121,125$ 122,336$ 123,560$ 5995 Alloc. From Water to Wwtr5 2 634,324$ 659,697$ 686,085$ 713,528$ 742,069$ 771,752$ 802,622$ 834,727$ 868,116$ 902,841$ 938,954$ 976,513$ 1,015,573$ Total: Wastewater Operations Expenses 9,579,683$ 9,840,149$ 10,131,473$ 10,435,316$ 10,751,263$ ########## ########## 11,777,030$ 12,146,817$ 12,531,544$ 12,931,858$ 13,348,434$ 13,781,978$ NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516
Exhibit 1 (O&M), 7 of 31

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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study) CITY OF COLTON EXHIBIT 1

SEWER RATE STUDY
Operating Revenue and Expenses
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 6 : OPERATING EXPENSE FORECAST
Additional Expenses Related to Grand Terrace Custome Basis 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Annual Salaries & Benefits Expense 3 234,742$ 237,090$ 239,461$ 241,855$ 244,274$ 246,717$ 249,184$ 251,676$ 254,192$ 256,734$ 259,302$ 261,895$ 264,513$ Annual Lease Payment to Grand Terrace (Approx.) 6 318,349$ 318,349$ 318,349$ 318,349$ 318,349$ 318,349$ 318,349$ 318,349$ 318,349$ 318,349$ 318,349$ 318,349$ 318,349$ Annual Sewer Line Repairs 2 35,000$ 36,400$ 37,856$ 39,370$ 40,945$ 42,583$ 44,286$ 46,058$ 47,900$ 49,816$ 51,809$ 53,881$ 56,036$ Annual Vehicle Expenses 2 15,000$ 15,600$ 16,224$ 16,873$ 17,548$ 18,250$ 18,980$ 19,739$ 20,529$ 21,350$ 22,204$ 23,092$ 24,015$ One-Time Payment to Grand Terrace 6 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total: Additional Expenses for Grand Terrace 603,091$ 607,439$ 611,890$ 616,447$ 621,116$ 625,898$ 630,799$ 635,821$ 640,970$ 646,249$ 651,663$ 657,216$ 662,914$ Grand Total: Wastewater Operating Expenses 10,182,774$ 10,447,588$ 10,743,363$ 11,051,764$ 11,372,379$ ########## ########## 12,412,851$ 12,787,787$ 13,177,793$ 13,583,521$ 14,005,650$ 14,444,892$ TABLE 7 : FORECASTING ASSUMPTIONS
ECONOMIC VARIABLES6 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 1 Customer Growth7 - 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 2 General Cost Inflation - 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 3 Labor Cost Inflation (Shasta County) - 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 4 Energy Cost Inflation - 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5 Fuel Cost Inflation - 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 6 No Escalation - 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

1. Revenues for FY 2022/23 are the actual revenues for 2012/13, per the City's Sewer Budget. Source file: 522-Sewer Exps BUD FY 22-23.pdf

2. Interest earnings beyond 2022/23 are zeroed out here because it is calculated in the Financial Plan section of this model, in Table 2 (Reserve Fund Summary).

3. The FY 2020/21 operating expenses are from the City's Budget, unless otherwise noted. Inflationary factors are applied to these expenses to project costs in 2021/22 and beyond.

Budget files provided by City: sewer exps_fy 20-21.xls

4. This is for General Fund allocations to supporting departments (Finance, City Clerk, City Manager, City Attorney, IS, HR, Purchasing, Auto Shop, etc.).

5. This is the allocation of Admin/Tech expenses to the Wastewater utility (Water’s Admin Staff does the Wastewater budget, A/P, contracts, inspections, engineering, etc.).

6. Per Sewer Master Plan and California State demographics data, customer growth is estimated to be approximately 1%.

Forecasting assumptions from the Bureau of Labor Statistics average of previous 5 years.

7. Estimated expenses related to Grand Terrace, provided by City Staff in source file: Sewer GT Est Costs_Rate Study 21-22.xlsx NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516
Exhibit 1 (O&M), 8 of 31

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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study) CITY OF COLTON EXHIBIT 2

SEWER RATE STUDY
Capital Improvement Plan Expenditures
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 8 : CAPITAL FUNDING SUMMARY
CAPITAL FUNDING FORECAST Budget Projected
FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 FY 2033/34 FY 2034/35 Grants -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Use of Capacity Fee Reserves - - - - - - - - - - - - - Use of Existing Bond Proceeds - - - - - - - - - - - - - SRF Loan Funding - - 35,000,000 35,000,000 - - - - - - - - - Use of Capital Rehab and Replacement Reserve 20,400 - - - 12,868,092 195,999 460,145 2,475,422 - - - 1,159,732 2,116,735 Rate Revenue - - - - 1,881,824 2,655,891 2,010,963 14,888,230 9,638,477 1,920,284 1,983,654 889,383 - Total Sources of Capital Funds 20,400$ -$ 35,000,000$ 35,000,000$ 14,749,916$ 2,851,889$ 2,471,109$ 17,363,651$ 9,638,477$ 1,920,284$ 1,983,654$ 2,049,114$ 2,116,735$ Uses of Capital Funds:

Total Project Costs 20,400$ -$ 7,073,235$ 2,366,130$ 14,749,916$ 2,851,889$ 2,471,109$ 17,363,651$ 9,638,477$ 1,920,284$ 1,983,654$ 2,049,114$ 2,116,735$ Capital Funding Surplus (Deficiency) -$ -$ 27,926,765$ 32,633,870$ -$ -$ -$ -$ -$ -$ -$ -$ -$ New SRF Loan Funding -$ 35,000,000$ 35,000,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ New Revenue Bond Proceeds -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ CAPITAL IMPROMENT PLAN OPTIONS 1
1 40% CIP + $70M SRF 20,400$ -$ 7,073,235$ 2,366,130$ 14,749,916$ 2,851,889$ 2,471,109$ 17,363,651$ 9,638,477$ 1,920,284$ 1,983,654$ 2,049,114$ 2,116,735$ 2 40% CIP + $70M SRF 20,400$ -$ 7,073,235$ 2,366,130$ 14,749,916$ 2,851,889$ 2,471,109$ 17,363,651$ 9,638,477$ 1,920,284$ 1,983,654$ 2,049,114$ 2,116,735$ 3 20% CIP + $40M SRF 10,200$ -$ 3,536,618$ 1,183,065$ 7,374,958$ 1,425,945$ 1,235,554$ 8,681,826$ 4,819,239$ 960,142$ 991,827$ 1,024,557$ 1,058,367$ CAPITAL IMPROVEMENT PLAN OPTION 20,400$ -$ 7,073,235$ 2,366,130$ 14,749,916$ 2,851,889$ 2,471,109$ 17,363,651$ 9,638,477$ 1,920,284$ 1,983,654$ 2,049,114$ 2,116,735$ 5-YEAR CIP PLAN
40% CIP + $70M SRF 27,061,570$ 0.4
40% CIP + $70M SRF 27,061,570$ 0.4
20% CIP + $40M SRF 13,530,785$ 0.2
100% CIP Over 20-Year Planning Period 62,487,859$
For reference (from Financial Plan): `
Annual Surplus/(Deficit) (1,786,242)$ (1,261,859)$ 1,473,320$ 4,194,297$ 295,334$ 585,157$ Debt Coverage Ratio (0.40) (0.75) 3.05 11.16 1.08 1.15 5-Year Rate Adoption Period
Funding Sources:

NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516
Exhibit 2 (CIP), 9 of 31

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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study) CITY OF COLTON EXHIBIT 2

SEWER RATE STUDY
Capital Improvement Plan Expenditures
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute

CAPITAL IMPROVEMENT PROGRAM
TABLE 9 : CAPITAL IMPROVEMENT PROGRAM COSTS (in Current-Year Dollars) Project Description1 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Capacity Related Projects
Gravity Mains
Agua Mansa Road to the WRF 321,667$ 321,667$ 321,667$ South 5th Street to Rancho Avenue 184,333$ 184,333$ 184,333$ Georgia Street to West Congress Street 76,000$ 76,000$ 76,000$ Alley North of West M Street to West O Street 116,000$ 116,000$ 116,000$ South 11th Street to South 7th Street 295,333$ 295,333$ 295,333$ West J Street to West K Street 181,333$ 181,333$ 181,333$ Alley North of Eas Valley Blvd. to South of Fwy. 235,333$ 235,333$ 235,333$ East of Pennsylvania Avenue to West D Street 57,333$ 57,333$ 57,333$ West 7th Street to West 5th Street 169,333$ 169,333$ 169,333$ North Mt. Vernon to West of North 12th Street 206,000$ 206,000$ 206,000$ West G Street to the Freeway -$ -$ -$ 325,000$ Lift Stations and Force Mains
WWTP Lift Station - Add 1,400 GPM Capacity 66,667$ 66,667$ 66,667$ Rehabilitation Related Projects
Pipes Reaching End of Useful Life Before 2020 631,333$ 631,333$ 631,333$ Pipes Reaching End of Useful Life 2021-2040 2,782,286$ 2,782,286$ 2,782,286$ 2,782,286$ 2,782,286$ 2,782,286$ 2,782,286$ 2,782,286$ Rehabilitation Projects from Condition Assessment 27,667$ 27,667$ 27,667$ Rehabilitation Projects from Condition Assessment 8,333$ 8,333$ 8,333$ Rehabilitation Projects from Condition Assessment 84,214$ 84,214$ 84,214$ 84,214$ 84,214$ 84,214$ 84,214$ 84,214$ Rehabilitation Projects from Condition Assessment 4,667$ 4,667$ 4,667$ 12,214$ 12,214$ 12,214$ 12,214$ 12,214$ 12,214$ 12,214$ 12,214$ Rehabilitation Projects from Condition Assessment 5,333$ 5,333$ 5,333$ 11,786$ 11,786$ 11,786$ 11,786$ 11,786$ 11,786$ 11,786$ 11,786$ Rehabilitation Projects from Condition Assessment 24,667$ 24,667$ 24,667$ 13,000$ 13,000$ 13,000$ 13,000$ 13,000$ 13,000$ 13,000$ 13,000$ Rehabilitation Projects from Condition Assessment 620,667$ 620,667$ 620,667$ 117,000$ 117,000$ 117,000$ 117,000$ 117,000$ 117,000$ 117,000$ 117,000$

DEVELOPER SPECIFIC PROJECTS
Gravity Mains
New Mains to Extend Service to Roquet Ranch 30,071$ 30,071$ 30,071$ 30,071$ 30,071$ 30,071$ 30,071$ 30,071$ New Mains to Extend Service to Roquet Ranch 19,429$ 19,429$ 19,429$ 19,429$ 19,429$ 19,429$ 19,429$ 19,429$ New Mains to Extend Service to Roquet Ranch 24,500$ 24,500$ 24,500$ 24,500$ 24,500$ 24,500$ 24,500$ 24,500$ Extend Main from Lake Cadena LS to Center St. Main 30,071$ 30,071$ 30,071$ 30,071$ 30,071$ 30,071$ 30,071$ 30,071$ New Main to Extend Service to Iron Horse 43,357$ 43,357$ 43,357$ 43,357$ 43,357$ 43,357$ 43,357$ 43,357$ New Main to Extend Service to Agua Mansa Project 89,643$ 89,643$ 89,643$ 89,643$ 89,643$ 89,643$ 89,643$ 89,643$ New Main to Serve La Cadena Dr. & La Loma Ave. 49,000$ 49,000$ 49,000$ 49,000$ 49,000$ 49,000$ 49,000$ 49,000$ Lift Stations and Force Mains
New Force Main to Connect Center Street LS 29,857$ 29,857$ 29,857$ 29,857$ 29,857$ 29,857$ 29,857$ 29,857$ New Force Main to Connect Center Street LS 121,143$ 121,143$ 121,143$ 121,143$ 121,143$ 121,143$ 121,143$ 121,143$ New Lift Station to Replace Lake Cadena LS & Serve Roquet Ran 120,714$ 120,714$ 120,714$ 120,714$ 120,714$ 120,714$ 120,714$ 120,714$ Other Projects
Wet Weather Flow Monitoring During Rainy Season 13,333$ 13,333$ 13,333$ Water Tank interior/EXTERIOR REHABILITATION Coating Replacement (La Loma Reservoir & Domeq) 220,000$ Annual Un-Planned Replacement Needs
SubTotal: Capital Improvement Program Costs (Current-Year Dolla -$ -$ 3,465,333$ 3,245,333$ 3,245,333$ 3,903,286$ 3,578,286$ 3,578,286$ 3,578,286$ 3,578,286$ 3,578,286$ 3,578,286$ 3,578,286$ NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516
Exhibit 2 (CIP), 10 of 31

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Packet Pg. 73
Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study) CITY OF COLTON EXHIBIT 2

SEWER RATE STUDY
Capital Improvement Plan Expenditures
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 10 : CAPITAL IMPROVEMENT PROGRAM COSTS, CONTINUED (in Current-Year Dollars) Project Description1 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Wastewater Collection System (City of Colton)
Center Street Lift Station and Sewer Main5 3,500,000$
Rehab of Sewer Mains & Lift Station 1,500,000$ 2,000,000$ 2,000,000$ 2,000,000$ 1,500,000$ Wastewater treatment Plant
Control and Administration Building 6,500,000$
Water Reclamation Plant (Colton & Grand Terrace)
Upgrade and Expansion of Plant 3 27,000,000$ 31,000,000$ $15,000,000.00 Headworks, including New Screens & Screenings Disposal Systems.

New Vortex Grit Chamber and influent Pump Station
Two new Clarifier
Two new additional oxidation ditch
DAF wastewater treatment - Dissolved air flotation
New RAS, WAS, and Scum Pump Stations.

Rotary Drum Sludge Thickener Facility
Polymer System Facility
Digester Heating System and Boiler + New Digester
Site Improvements including Paved Roads for Access to Main Process Units.

New Piping for Conveyance of Wastewater, Secondary Effluent, Sludges, and Utility Water.

New PLC/SCADA systems upgrades
New Electrical Buildings and Electrical Power Distribution Systems Removals of structures
Vehicles/Equipment
Collection system Camera Truck 500,000$
Collection System Combo Truck 800,000$
Wastewater Operations yard carts 45,000$
Wastewater Operations Dump Truck 200,000$
Wastewater Vehicles 100,000$ 115,000$ 132,500$ 152,088$ Landscape Maintenance Services WWTP/Lift Stations 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ 6,000$ Sub-Total: Capital Improvement Program Costs (Current-Year Dolla 51,000$ -$ 13,106,000$ 2,121,000$ 29,138,500$ 2,158,088$ 1,506,000$ 31,006,000$ 15,006,000$ 6,000$ 6,000$ 6,000$ 6,000$ NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516
Exhibit 2 (CIP), 11 of 31

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Packet Pg. 74
Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study) CITY OF COLTON EXHIBIT 2

SEWER RATE STUDY
Capital Improvement Plan Expenditures
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 11 : CAPITAL IMPROVEMENT PROGRAM COSTS (in Future-Year Dollars) Project Description2 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Capacity Related Projects
Gravity Mains -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Agua Mansa Road to the WRF -$ -$ 343,247$ 354,574$ 366,275$ -$ -$ -$ -$ -$ -$ -$ -$ South 5th Street to Rancho Avenue -$ -$ 196,700$ 203,191$ 209,896$ -$ -$ -$ -$ -$ -$ -$ -$ Georgia Street to West Congress Street -$ -$ 81,099$ 83,775$ 86,540$ -$ -$ -$ -$ -$ -$ -$ -$ Alley North of West M Street to West O Street -$ -$ 123,782$ 127,867$ 132,087$ -$ -$ -$ -$ -$ -$ -$ -$ South 11th Street to South 7th Street -$ -$ 315,147$ 325,547$ 336,290$ -$ -$ -$ -$ -$ -$ -$ -$ West J Street to West K Street -$ -$ 193,499$ 199,884$ 206,480$ -$ -$ -$ -$ -$ -$ -$ -$ Alley North of Eas Valley Blvd. to South of Fwy. -$ -$ 251,122$ 259,409$ 267,969$ -$ -$ -$ -$ -$ -$ -$ -$ East of Pennsylvania Avenue to West D Street -$ -$ 61,180$ 63,199$ 65,284$ -$ -$ -$ -$ -$ -$ -$ -$ West 7th Street to West 5th Street -$ -$ 180,694$ 186,657$ 192,816$ -$ -$ -$ -$ -$ -$ -$ -$ North Mt. Vernon to West of North 12th Street -$ -$ 219,820$ 227,074$ 234,568$ -$ -$ -$ -$ -$ -$ -$ -$ West G Street to the Freeway -$ -$ -$ -$ -$ 382,283$ -$ -$ -$ -$ -$ -$ -$ Lift Stations and Force Mains -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ WWTP Lift Station - Add 1,400 GPM Capacity -$ -$ 71,139$ 73,487$ 75,912$ -$ -$ -$ -$ -$ -$ -$ -$ Rehabilitation Related Projects -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Pipes Reaching End of Useful Life Before 2020 -$ -$ 673,689$ 695,921$ 718,886$ -$ -$ -$ -$ -$ -$ -$ -$ Pipes Reaching End of Useful Life 2021-2040 -$ -$ -$ -$ -$ 3,272,678$ 3,380,677$ 3,492,239$ 3,607,483$ 3,726,530$ 3,849,505$ 3,976,539$ 4,107,765$ Rehabilitation Projects from Condition Assessment -$ -$ 29,523$ 30,497$ 31,503$ -$ -$ -$ -$ -$ -$ -$ -$ Rehabilitation Projects from Condition Assessment -$ -$ 8,892$ 9,186$ 9,489$ -$ -$ -$ -$ -$ -$ -$ -$ Rehabilitation Projects from Condition Assessment -$ -$ -$ -$ -$ 99,058$ 102,326$ 105,703$ 109,191$ 112,795$ 116,517$ 120,362$ 124,334$ Rehabilitation Projects from Condition Assessment -$ -$ 4,980$ 5,144$ 5,314$ 14,367$ 14,841$ 15,331$ 15,837$ 16,360$ 16,899$ 17,457$ 18,033$ Rehabilitation Projects from Condition Assessment -$ -$ 5,691$ 5,879$ 6,073$ 13,863$ 14,320$ 14,793$ 15,281$ 15,786$ 16,306$ 16,845$ 17,400$ Rehabilitation Projects from Condition Assessment -$ -$ 26,322$ 27,190$ 28,087$ 15,291$ 15,796$ 16,317$ 16,856$ 17,412$ 17,986$ 18,580$ 19,193$ Rehabilitation Projects from Condition Assessment -$ -$ 662,307$ 684,163$ 706,740$ 137,622$ 142,163$ 146,855$ 151,701$ 156,707$ 161,878$ 167,220$ 172,739$ DEVELOPER SPECIFIC PROJECTS -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Gravity Mains -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ New Mains to Extend Service to Roquet Ranch -$ -$ -$ -$ -$ 35,372$ 36,539$ 37,745$ 38,990$ 40,277$ 41,606$ 42,979$ 44,397$ New Mains to Extend Service to Roquet Ranch -$ -$ -$ -$ -$ 22,853$ 23,607$ 24,386$ 25,191$ 26,022$ 26,881$ 27,768$ 28,684$ New Mains to Extend Service to Roquet Ranch -$ -$ -$ -$ -$ 28,818$ 29,769$ 30,752$ 31,766$ 32,815$ 33,898$ 35,016$ 36,172$ Extend Main from Lake Cadena LS to Center St. Main -$ -$ -$ -$ -$ 35,372$ 36,539$ 37,745$ 38,990$ 40,277$ 41,606$ 42,979$ 44,397$ New Main to Extend Service to Iron Horse -$ -$ -$ -$ -$ 50,999$ 52,682$ 54,421$ 56,216$ 58,072$ 59,988$ 61,968$ 64,012$ New Main to Extend Service to Agua Mansa Project -$ -$ -$ -$ -$ 105,443$ 108,923$ 112,517$ 116,230$ 120,066$ 124,028$ 128,121$ 132,349$ New Main to Serve La Cadena Dr. & La Loma Ave. -$ -$ -$ -$ -$ 57,637$ 59,539$ 61,503$ 63,533$ 65,629$ 67,795$ 70,032$ 72,344$ Lift Stations and Force Mains -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ New Force Main to Connect Center Street LS -$ -$ -$ -$ -$ 35,120$ 36,279$ 37,476$ 38,712$ 39,990$ 41,310$ 42,673$ 44,081$ New Force Main to Connect Center Street LS -$ -$ -$ -$ -$ 142,495$ 147,197$ 152,055$ 157,073$ 162,256$ 167,610$ 173,142$ 178,855$ New Lift Station to Replace Lake Cadena LS & Serve Roquet Ran -$ -$ -$ -$ -$ 141,991$ 146,677$ 151,517$ 156,517$ 161,682$ 167,017$ 172,529$ 178,222$ Other Projects -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Wet Weather Flow Monitoring During Rainy Season -$ -$ 14,228$ 14,697$ 15,182$ -$ -$ -$ -$ -$ -$ -$ -$ Water Tank interior/EXTERIOR REHABILITATION Coating Replace -$ -$ 234,760$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Annual Un-Planned Replacement Needs -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -- -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -- -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -- -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Sub-Total: Capital Improvement Program Costs (Future-Year Dolla -$ -$ 3,697,819$ 3,577,340$ 3,695,393$ 4,591,261$ 4,347,874$ 4,491,354$ 4,639,568$ 4,792,674$ 4,950,832$ 5,114,210$ 5,282,979$ NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516
Exhibit 2 (CIP), 12 of 31

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Packet Pg. 75
Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study) CITY OF COLTON EXHIBIT 2

SEWER RATE STUDY
Capital Improvement Plan Expenditures
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 12 : CAPITAL IMPROVEMENT PROGRAM COSTS, CONTINUED (in Future-Year Dollars) Project Description1 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Wastewater Collection System (City of Colton)
Center Street Lift Station and Sewer Main5 -$ -$ 3,734,812$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Rehab of Sewer Mains & Lift Station -$ -$ 1,600,634$ 2,204,606$ 2,277,358$ 2,352,511$ 1,822,608$ -$ -$ -$ -$ -$ -$ Wastewater treatment Plant -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Control and Administration Building -$ -$ 6,936,079$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Water Reclamation Plant (Colton & Grand Terrace) -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Upgrade and Expansion of Plant 3 -$ -$ -$ -$ 30,744,331$ -$ -$ 38,910,243$ 19,448,846$ -$ -$ -$ -$ Headworks, including New Screens & Screenings Disposal System -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ New Vortex Grit Chamber and influent Pump Station -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Two new Clarifier -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Two new additional oxidation ditch -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ DAF wastewater treatment - Dissolved air flotation -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ New RAS, WAS, and Scum Pump Stations. -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Rotary Drum Sludge Thickener Facility -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Polymer System Facility -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Digester Heating System and Boiler + New Digester -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Site Improvements including Paved Roads for Access to Main Proce -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ New Piping for Conveyance of Wastewater, Secondary Effluent, S -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ New PLC/SCADA systems upgrades -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ New Electrical Buildings and Electrical Power Distribution System -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Removals of structures -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -- -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Vehicles/Equipment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Collection system Camera Truck -$ -$ 533,545$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Collection System Combo Truck -$ -$ 853,671$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Wastewater Operations yard carts 45,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Wastewater Operations Dump Truck -$ -$ 213,418$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Wastewater Vehicles -$ -$ 106,709$ 126,765$ 150,875$ 178,894$ -$ -$ -$ -$ -$ -$ -$ Landscape Maintenance Services WWTP/Lift Stations 6,000$ -$ 6,403$ 6,614$ 6,832$ 7,058$ 7,290$ 7,531$ 7,780$ 8,036$ 8,301$ 8,575$ 8,858$ -- -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -- -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -- -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Sub-Total: Capital Improvement Program Costs (Future-Year Dolla 51,000$ -$ 13,985,268$ 2,337,985$ 33,179,396$ 2,538,463$ 1,829,898$ 38,917,774$ 19,456,625$ 8,036$ 8,301$ 8,575$ 8,858$ Grand Total: Capital Improvement Program Costs (Future-Year Do 51,000$ -$ 17,683,088$ 5,915,325$ 36,874,789$ 7,129,723$ 6,177,772$ 43,409,128$ 24,096,194$ 4,800,710$ 4,959,134$ 5,122,785$ 5,291,837$ -$
TABLE 13 : FORECASTING ASSUMPTIONS
Economic Variables 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Annual Construction Cost Inflation, Per Engineering News Record 0.00% 3.30% 3.30% 3.30% 3.30% 3.30% 3.30% 3.30% 3.30% 3.30% 3.30% 3.30% 3.30% Cumulative Construction Cost Multiplier from 2023 1.00 1.03 1.07 1.10 1.14 1.18 1.22 1.26 1.30 1.34 1.38 1.43 1.48

1. Capital project cost data was provided originally by City Staff in source file: Copy of Colton CIP_City Review.xlsx

2. Project costs are inflated by 3.5% per year, per Engineering News Record 10-year average estimates of construction cost inflation .

3. For reference purposes, the annual Construction Cost Inflation percentage is the 10 year average change in the Construction Cost Index for 2012-2022. Source: Engineering News Record website (http://enr.construction.com).

NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516
Exhibit 2 (CIP), 13 of 31

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Packet Pg. 76
Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study) CITY OF COLTON EXHIBIT 3

SEWER RATE STUDY
Debt Service
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 14 : EXISTING DEBT OBLIGATIONS
Annual Repayment Schedules: FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 FY 2033/34 FY 2034/35 2000 Wastewater Revenue Bonds Refinance 2017 ($9,347,003)1 Principal Payment 230,000$ 240,000$ 250,000$ 265,000$ 275,000$ 290,000$ 305,000$ 320,000$ 335,000$ 355,000$ 370,000$ 390,000$ -$ Interest Payment 182,238 171,428 159,908 147,658 134,408 120,658 105,868 90,313 74,313 57,144 38,950 19,988 - Subtotal: Annual Debt Service 412,238$ 411,428$ 409,908$ 412,658$ 409,408$ 410,658$ 410,868$ 410,313$ 409,313$ 412,144$ 408,950$ 409,988$ -$ Coverage Requirement(% above annual payment)2 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% Reserve Requirement (total fund balance)2 515,297$ 514,284$ 512,384$ 515,822$ 511,759$ 513,322$ 513,584$ 512,891$ 511,641$ 515,179$ 511,188$ 512,484$ -$ SRF Loan - RIX Full Scale Plant
Principal Payment 285,732$ 293,732$ 301,339$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Interest Payment 24,662 16,662 8,438 - - - - - - - - - - Subtotal: Annual Debt Service 310,394$ 310,394$ 309,777$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Coverage Requirement(% above annual payment) 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% Reserve Requirement (total fund balance) 387,993$ 387,993$ 387,221$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 1998 SRF Loan - WWTP Expansion ($8,114,108)3
Principal Payment 544,395$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Interest Payment 8,166 - - - - - - - - - - - - Subtotal: Annual Debt Service 552,560$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Coverage Requirement(% above annual payment) 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% Reserve Requirement (total fund balance) 690,701$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Grand Total: Existing Annual Debt Service 1,275,192$ 721,822$ 719,684$ 412,658$ 409,408$ 410,658$ 410,868$ 410,313$ 409,313$ 412,144$ 408,950$ 409,988$ -$ Grand Total: Existing Annual Coverage Requirement 318,798$ 180,455$ 179,921$ 103,164$ 102,352$ 102,664$ 102,717$ 102,578$ 102,328$ 103,036$ 102,238$ 102,497$ -$ Grand Total: Existing Debt Reserve Target 1,593,990$ 902,277$ 899,605$ 515,822$ 511,759$ 513,322$ 513,584$ 512,891$ 511,641$ 515,179$ 511,188$ 512,484$ -$

1. Source file: 2000 WW Bonds Refinance plus $7M Loan Amortization Scheule.pdf

2. Per the Official Statement for the 2000 Wastewater Revenue Bonds, the Utility is required to maintain a debt coverage ratio of 1.25 for this bond issue and all future debt.

The Reserve Requirement in future years is assumed to be 125% of the average annual debt service payment to maintain a bond coverage ratio of 1.25.

In all years the reserve requirement is equal to the maximum annual debt service payment.

3. Source file: Colton City of - Project No. 4251-110 - Amortization -WW.pdf NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516
Exhibit 3 (Debt), 14 of 31

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Packet Pg. 77
Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study) CITY OF COLTON EXHIBIT 3

SEWER RATE STUDY
Debt Service
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 15 : NEW DEBT FINANCING ASSUMPTIONS
Long-Term Debt Terms
State
Revolving
Fund Loans
Revenue
Bonds
Issuance Cost 0.50% 2.00%
Annual Interest Cost (%) 2.75% 5.50%
Term 30 30
Debt Reserve Funded? No Yes
Coverage Requirement (% above annual pmt) 25% 25%
TABLE 16 : NEW DEBT OBLIGATIONS
Annual Repayment Schedules 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 SRF Loan Funding
Principal Payment -$ -$ -$ -$ 1,539,569$ 1,581,907$ 1,625,410$ 1,670,108$ 1,716,036$ 1,763,227$ 1,811,716$ 1,861,538$ 1,912,731$ Interest Payment - - - - 1,934,625 1,892,287 1,848,784 1,804,086 1,758,158 1,710,967 1,662,478 1,612,656 1,561,463 Subtotal: Annual Debt Service -$ -$ -$ -$ 3,474,194$ 3,474,194$ 3,474,194$ 3,474,194$ 3,474,194$ 3,474,194$ 3,474,194$ 3,474,194$ 3,474,194$ Grand Total: New Annual Debt Service -$ -$ -$ -$ 3,474,194$ 3,474,194$ 3,474,194$ 3,474,194$ 3,474,194$ 3,474,194$ 3,474,194$ 3,474,194$ 3,474,194$ Grand Total: New Annual Coverage Requirement -$ -$ -$ -$ 868,548$ 868,548$ 868,548$ 868,548$ 868,548$ 868,548$ 868,548$ 868,548$ 868,548$ Grand Total: New Debt Reserve Target -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ TABLE 17 : TOTAL DEBT SERVICE
Annual Obligations 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Annual Debt Service 1,275,192$ 721,822$ 719,684$ 412,658$ 3,883,601$ 3,884,851$ 3,885,061$ 3,884,506$ 3,883,506$ 3,886,337$ 3,883,144$ 3,884,181$ 3,474,194$ Annual Coverage Requirement 318,798$ 180,455$ 179,921$ 103,164$ 970,900$ 971,213$ 971,265$ 971,127$ 970,877$ 971,584$ 970,786$ 971,045$ 868,548$ Total Debt Reserve Target 1,593,990$ 902,277$ 899,605$ 515,822$ 511,759$ 513,322$ 513,584$ 512,891$ 511,641$ 515,179$ 511,188$ 512,484$ -$ NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516
Exhibit 3 (Debt), 15 of 31

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Packet Pg. 78
Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study) CITY OF COLTON EXHIBIT 4

SEWER RATE STUDY
Existing Sewer Rates
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 18 : EXISTING SEWER RATES
Residential Users
Monthly Charge, per dwelling unit
Homes/Mobile Homes $34.33
Churches $34.33
Multi-Family and Condominium Units
Multi-Family and Condo - per dwelling unit $29.87
Schools
Charge per 100 students $77.52
Commercial/Industrial
Charge per hcf
Low Strength $0.82
Medium Strength $1.19
High Strength $2.42
Significant Industrial Users
Charge per hcf
Angelica (bought by Emerald) $1.06
Arrowhead Regional Medical Center $1.26
Rise Baking $2.94
Source file: Wastewater Rates 2016.pdf
Current Rates
NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516
Exhibit 4 (Current Rates), 16 of 31
2/15/2024

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Packet Pg. 79
Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study)

CITY OF COLTON

SEWER RATE STUDY
Cost of Service Analysis
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 19 : CLASSIFICATION OF EXPENSES
Total Revenue
Requirements Flow Customer
2024/25 (VOL) (BOD) (TSS) (CA) (VOL) (BOD) (TSS) (CA)
Wastewater Operations Expenses
1000 - Salaries & Benefits
1010 Salaries - Miscellaneous 1,357,278$ 746,503$ 271,456$ 271,456$ 67,864$ 55% 20% 20% 5% 1040 Salaries - Part time 8,300$ 4,565$ 1,660$ 1,660$ 415$ 55% 20% 20% 5% 1050 Salaries - Overtime 291,749$ 160,462$ 58,350$ 58,350$ 14,587$ 55% 20% 20% 5% 1070 GASB 68 Pension Expense -$ -$ -$ -$ -$ 55% 20% 20% 5% 1085 OPEB Contra Expense -$ -$ -$ -$ -$ 55% 20% 20% 5% 1100 Salary Related Benefits 197,423$ 108,582$ 39,485$ 39,485$ 9,871$ 55% 20% 20% 5% 1101 Non-Persable Benefits 308,472$ 169,660$ 61,694$ 61,694$ 15,424$ 55% 20% 20% 5% 1107 PERS Unfunded Liability 349,686$ 192,327$ 69,937$ 69,937$ 17,484$ 55% 20% 20% 5% 1150 Retiree Health Insurance -$ -$ -$ -$ -$ 55% 20% 20% 5% 1160 Education & Training 1,010$ 556$ 202$ 202$ 51$ 55% 20% 20% 5% 1161 Certification-Training/Renew 4,080$ 2,244$ 816$ 816$ 204$ 55% 20% 20% 5% 1170 Uniforms 10,605$ 5,833$ 2,121$ 2,121$ 530$ 55% 20% 20% 5% 1180 Safety Equipment 8,161$ 4,488$ 1,632$ 1,632$ 408$ 55% 20% 20% 5% 2000 - Maintenance and Operations
2210 Vehicle Operating Expense 54,821$ 30,151$ 10,964$ 10,964$ 2,741$ 55% 20% 20% 5% 2230 Vehicle Allowance-CM Rod Foster -$ -$ -$ -$ -$ 55% 20% 20% 5% 2240 Misc. Equipment Maint. 1,082$ 595$ 216$ 216$ 54$ 55% 20% 20% 5% 2241 Permits 34,611$ 19,036$ 6,922$ 6,922$ 1,731$ 55% 20% 20% 5% 2250 Buildings & Grounds Maint. -$ -$ -$ -$ -$ 55% 20% 20% 5% 2255 WWT Plant Operations & Maint. 227,136$ 136,282$ 45,427$ 45,427$ -$ 60% 20% 20% 0% 2256 Lift Station Operations & Maint. 21,632$ 21,632$ -$ -$ -$ 100% 0% 0% 0% 2257 Collection Systems Oper & Maint 43,264$ 43,264$ -$ -$ -$ 100% 0% 0% 0% 2270 Dues & Publications 2,847$ 854$ 285$ 285$ 1,423$ 30% 10.0% 10.0% 50% 2280 Travel & Meeting 4,326$ 1,298$ 433$ 433$ 2,163$ 30% 10.0% 10.0% 50% 2301 Operating Supp./Equip. 80,223$ 44,123$ 16,045$ 16,045$ 4,011$ 55% 20% 20% 5% 2303 Unsch. Immediate Line Rep 7,571$ 2,271$ 757$ 757$ 3,786$ 30% 10.0% 10.0% 50% 2310 Telecommunication Expense 18,387$ 5,516$ 1,839$ 1,839$ 9,194$ 30% 10.0% 10.0% 50% 2315 Software/Licensing/Support 34,611$ 10,383$ 3,461$ 3,461$ 17,306$ 30% 10.0% 10.0% 50% 2320 Utilities Expense 1,138,393$ 796,875$ 170,759$ 170,759$ -$ 70% 15% 15% 0% 2340 Legal Printing 4,326$ 2,163$ 973$ 973$ 216$ 50% 22.5% 22.5% 5% 2350 Professional Services 1,097,017$ 329,105$ 109,702$ 109,702$ 548,509$ 30% 10% 10% 50% 2380 Administrative Charges 5,408$ 1,622$ 541$ 541$ 2,704$ 30% 10.0% 10.0% 50% 2381 JPALease Payment To Gen Fund 570,000$ 313,500$ 114,000$ 114,000$ 28,500$ 55% 20% 20% 5% 2381 Lease Payment to Grand Terrace 318,349$ 175,092$ 63,670$ 63,670$ 15,917$ 55% 20% 20% 5% 2420 Equipment Lease/Rental 37,856$ 20,821$ 7,571$ 7,571$ 1,893$ 55% 20% 20% 5% 2421 Space Rent 7,030$ 3,867$ 1,406$ 1,406$ 352$ 55% 20% 20% 5% 2560 Bad Debt Expense 51,917$ 28,554$ 10,383$ 10,383$ 2,596$ 55% 20% 20% 5% 2600 Cost Of Issuance -$ -$ -$ -$ -$ 55% 20% 20% 5% 2650 Operations & Maint. RIX 850,449$ 467,747$ 170,090$ 170,090$ 42,522$ 55% 20% 20% 5% 2651 Operations & Maint. SARI Line 167,648$ 92,206$ 33,530$ 33,530$ 8,382$ 55% 20% 20% 5% 2670 Bank Fees 58,406$ 17,522$ 5,841$ 5,841$ 29,203$ 30% 10.0% 10.0% 50% Total: Wastewater Operations Expenses 7,374,075$ 3,959,701$ 1,282,167$ 1,282,167$ 850,041$ 54% 17% 17% 12% Basis of ClassificationBudget Categories Strength
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Web: www.nbsgov.com Toll-Free:800.676.7516
Funct. & Classification, 17 of 31

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Packet Pg. 80
Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study)

CITY OF COLTON

SEWER RATE STUDY
Cost of Service Analysis
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 20 : CLASSIFICATION OF EXPENSES
Total Revenue
Requirements Flow Customer
2024/25 (VOL) (BOD) (TSS) (CA) (VOL) (BOD) (TSS) (CA)
Wastewater Operations Expenses
Capital Outlay
4900 Office Equipment 136,931$ 68,465$ 27,386$ 27,386$ 13,693$ 50% 20% 20% 10% 4910 Automobile -$ -$ -$ -$ -$ 45% 25% 25% 5% 4920 Radio Equipmt -$ -$ -$ -$ -$ 45% 25% 25% 5% 4930 Miscellaneous Equipment 21,632$ 10,816$ 4,326$ 4,326$ 2,163$ 50% 20% 20% 10% 4955 Operations Equipment 54,080$ 27,040$ 10,816$ 10,816$ 5,408$ 50% 20% 20% 10% 5000 - Total Cost Allocations
5990 Allocations To Gen Fund Depts.4 1,746,813$ 786,066$ 436,703$ 436,703$ 87,341$ 45% 25% 25% 5% 5991 Transfer Out - PERS 111,857$ 50,336$ 27,964$ 27,964$ 5,593$ 45% 25% 25% 5% 5995 Alloc. From Water to Wwtr5 686,085$ 308,738$ 171,521$ 171,521$ 34,304$ 45% 25% 25% 5% Additonal Expenses Related to Grand Terrace Customers
Annual Salaries & Benefits Expense 239,461$ 128,585$ 41,636$ 41,636$ 27,604$ 54% 17% 17% 12% Annual Lease Payment to Grand Terrace (Approx.) 318,349$ 170,946$ 55,353$ 55,353$ 36,697$ 54% 17% 17% 12% Annual Pre-Treatment Costs -$ -$ -$ -$ -$ 54% 17% 17% 12% Annual Sewer Line Repairs 37,856$ 20,328$ 6,582$ 6,582$ 4,364$ 54% 17% 17% 12% Annual Vehicle Expenses 16,224$ 8,712$ 2,821$ 2,821$ 1,870$ 54% 17% 17% 12% One-Time Payment to Grand Terrace -$ -$ -$ -$ -$ 54% 17% 17% 12% Total: Additional Expenses for Grand Terrace 611,890$ 328,570$ 106,392$ 106,392$ 70,535$ 54% 17% 17% 12% Grand Total: Water Operating Expenses 10,743,363$ 5,539,732$ 2,067,277$ 2,067,277$ 1,069,078$ 52% 19% 19% 10% Basis of ClassificationBudget Categories Strength
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Funct. & Classification, 18 of 31

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Packet Pg. 81
Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study)

CITY OF COLTON

SEWER RATE STUDY
Cost of Service Analysis
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 21 : CLASSIFICATION OF EXPENSES
Total Revenue
Requirements Flow Customer
Actual
2024/25 (VOL) (BOD) (TSS) (CA) (VOL) (BOD) (TSS) (CA)
Debt Service Payments
2000 Wastewater Revenue Bonds Refinance 2017 ($9,347,003 409,908$ 204,954$ 102,477$ 102,477$ -$ 50% 25% 25% 0% SRF Loan - RIX Full Scale Plant 309,777$ 154,888$ 77,444$ 77,444$ -$ 50% 25% 25% 0% 1998 SRF Loan - WWTP Expansion ($8,114,108)3 -$ -$ -$ -$ -$ 50% 25% 25% 0% New Debt Issue - SRF Loan -$ -$ -$ -$ -$ 50% 25% 25% 0% New Debt Issue - Revenue Bond -$ -$ -$ -$ -$ 50% 25% 25% 0% Total Debt Service Payments 719,684$ 359,842$ 179,921$ 179,921$ -$ 50% 25% 25% 0% Capital Expenditures
Rate Funded Capital Expenses -$ -$ -$ -$ -$ 50% 25% 25% 0% TOTAL REVENUE REQUIREMENTS 11,463,047$ 5,899,574$ 2,247,198$ 2,247,198$ 1,069,078$ 51% 20% 20% 9% Less: Non-Rate Revenues
Interest Earnings (135,820)$ (69,901)$ (26,626)$ (26,626)$ (12,667)$ 51% 20% 20% 9% 6700 - Charges for Current Services
6711 Industrial Discharge Permit (7,651)$ (3,938)$ (1,500)$ (1,500)$ (714)$ 51% 20% 20% 9% 6729 Plan Check Fees (3,060)$ (1,575)$ (600)$ (600)$ (285)$ 51% 20% 20% 9% 6743 Grand Terrace WW Cap Chg
6758 Inspection Fees (10,201)$ (5,250)$ (2,000)$ (2,000)$ (951)$ 51% 20% 20% 9% 6800 - Charges for Current Services
6812 Sewer Chgs - Residential
6813 Sewer Chgs - Commercial
6814 Sewer Chgs - City Dept
6821 Sewer Chgs - GT Res
6822 Sewer Chgs - GT Comm
7800 - Miscellaneous Revenue
7820 Refunds, Rebates & Reimbursements -$ -$ -$ -$ -$ 51% 20% 20% 9% 7822 Damage to City Property-Recovery -$ -$ -$ -$ -$ 51% 20% 20% 9% 7830 Miscellaneous Revenue (10,201)$ (5,250)$ (2,000)$ (2,000)$ (951)$ 51% 20% 20% 9% 7900 - Miscellaneous Revenue - Enterprise -$
7908 Connection Fees-Colton
7910 5% Late Charge (20,402)$ (10,500)$ (4,000)$ (4,000)$ (1,903)$ 51% 20% 20% 9% NET REVENUE REQUIREMENTS 11,275,712$ 5,803,160$ 2,210,473$ 2,210,473$ 1,051,607$ Allocation of Revenue Requirements 100% 51% 20% 20% 9%
check to financial plan -$
TABLE 22 : CLASSIFICATION OF EXPENSES
Adjustments to Classification of Expenses Flow Customer Adjustment for Current Rate Level: Total (VOL) (BOD) (TSS) (CA) Target Rate Rev. After Rate Increases $12,749,032
Projected Rate Revenue at Current Rates $9,709,849
Projected Rate Increase 30%
Adjusted Net Revenue Req'ts 12,749,032$ 6,561,419$ 2,499,300$ 2,499,300$ 1,189,013$ Percent of Revenue 51.5% 19.6% 19.6% 9.3%
Rate-Design Adjustments to Fixed/Variable % 51% 20% 20% 9% Rate-Design Adjustments to Fixed/Variable ($) $6,561,419 $2,499,300 $2,499,300 $1,189,013 Basis of ClassificationBudget Categories Strength
Strength
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Funct. & Classification, 19 of 31

1.b
Packet Pg. 82
Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study)

CITY OF COLTON

SEWER RATE STUDY
Cost of Service Analysis
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 23 : WATER CONSUMPTION BY CUSTOMER CLASS
Customer Class Annual Water
Use (hcf/yr.)
Winter Water
Use 3 months5
Annualized or
Annual Water
Use
% Allocation
Colton & Grand Terrace Customers1:

Residential2 2,625,475 368,851 1,652,452 55.7% Multi-Family Residential3 954,078 134,038 696,996 23.5% Schools4 41,997 5,900 30,680 1.0% Commercial (Low) 237,668 45,092 180,368 6.1% Commercial (Med) 100,461 16,156 64,624 2.2% Commercial (Med - GT) 31,868 6,503 26,012 0.9% Commercial (High) 135,224 25,622 102,488 3.5% Commercial (High - GT) 18,630 4,029 16,116 0.5% Municipal 8,781 1,667 6,668 0.2% Colton Commercial Customers
Special Commercial:

Emerald 91,401 20,630 82,519 2.8% Special Med Consumption:

A-Z Bus Sales 33,838 5,453 21,813 0.73% Inland Logistics, LLC - Lineage 14,314 2,228 8,912 0.30% Nichols Egg Ranch 14,273 2,777 11,106 0.37% Rancho Coin Laundry 1,202 189 755 0.03% Wood Springs Hotel 3,659 298 1,190 0.04% Special High Consumption:

Rise Baking 15,788 3,386 13,545 0.5% Arrowhead Regional Med Ctr 57,157 11,819 47,276 1.6% C.R. England, Inc 7,388 1,178 4,712 0.2% Total 4,393,201 655,815 2,968,233 100%

1. Source of Water Consumption Data for Non-Residential Customers is the following files: Sewer FY18-21_R1_jt1, 21-22 GT Billing - Commercial-June22_manipulated

2. Annual consumption is used from the water consumption data for Colton in water rate model. Source file: Billing Stat FY 21-22.xlsx Grand Terrace is estimated assuming the same average consumption as Colton (i.e., it's proportional to no. of SFR accounts).

3. Based on SFR consumption adjusted for MFR DUs in Grand Terrace vs. Colton. Assumes MFR use is 87% of SFR per unit.

4. Colton City Schools are billed based on number of students so don't have consumption. This is an estimation based on SFR consumption and number of students.

5. The lowest 3 months of water use; either Nov-Jan or Dec-Feb.

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Packet Pg. 83
Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study)

CITY OF COLTON

SEWER RATE STUDY
Cost of Service Analysis
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 24 : DEVELOPMENT OF FLOW AND STRENGTH ALLOCATION FACTORS Est. Annual
Flow (hcf)6
Calibrated
Ann. Flow
(hcf)
Percent of
Total
Avg Strength
Factor1 (mg/l)
Calculated
BOD (lbs./yr.)
Adjusted BOD
(lbs./yr.) Percent of Total Avg Strength
Factor1 (mg/l)
Calculated TSS
(lbs./yr.)
Adjusted TSS
(lbs./yr.)
Percent of
Total
Residential 1,652,452 1,413,565 55.67% 200 2,061,705 2,291,654 49.32% 200 2,061,705 2,330,965 55.18% Multi-Family Residential 696,996 596,235 23.48% 200 869,617 966,608 20.80% 200 869,617 983,189 23.28% Schools 30,680 26,245 1.03% 200 38,279 42,548 0.92% 200 38,279 43,278 1.02% Commercial (Low) 180,368 154,293 6.08% 130 146,275 162,590 3.50% 80 90,015 101,772 2.41% Commercial (Med) 64,624 55,282 2.18% 310 124,975 138,914 2.99% 120 48,377 54,696 1.29% Commercial (Med - GT) 26,012 22,252 0.88% 310 50,304 55,915 1.20% 120 19,473 22,016 0.52% Commercial (High) 102,488 87,672 3.45% 800 511,482 568,530 12.24% 600 383,612 433,712 10.27% Commercial (High - GT) 16,116 13,786 0.54% 800 80,429 89,400 1.92% 600 60,322 68,200 1.61% Municipal 6,668 5,704 0.22% 130 5,408 6,011 0.13% 80 3,328 3,762 0.09% Special Commercial:

Emerald 82,519 70,589 2.78% 130 66,921 74,385 1.60% 80 41,182 46,561 1.10% Special Med Consumption:

A-Z Bus Sales 21,813 18,660 0.73% 130 17,690 19,663 0.42% 80 10,886 12,308 0.29% Inland Logistics, LLC - Lineage 8,912 7,624 0.30% 130 7,227 8,034 0.17% 80 4,448 5,029 0.12% Nichols Egg Ranch 11,106 9,501 0.37% 130 9,007 10,011 0.22% 80 5,543 6,267 0.15% Rancho Coin Laundry 755 646 0.03% 150 706 785 0.02% 110 518 586 0.01% Wood Springs Hotel 1,190 1,018 0.04% 310 2,301 2,558 0.06% 120 891 1,007 0.02% Special High Consumption:

Rise Baking 13,545 11,587 0.46% 1,000 84,498 93,922 2.02% 600 50,699 57,320 1.36% Arrowhead Regional Med Ctr 47,276 40,442 1.59% 250 73,731 81,954 1.76% 100 29,492 33,344 0.79% C.R. England, Inc 4,712 4,031 0.16% 1,000 29,395 32,673 0.70% 600 17,637 19,940 0.47% Total 2,968,233 2,539,129 100.00% -- 4,179,951 4,646,155 100.00% -- 3,736,024 4,223,950 100.00% 2,539,129 hcf/year 4,646,155 lbs./yr. 4,223,950 lbs./yr.

0.855 Flow Adj. Factor 1.112 BOD Adj. Factor 1.131 TSS Adj. Fact.

1. Average Strength factors for BOD and TSS are derived from the State Water Resources Control Board Revenue Program Guidelines, Appendix G.

WWTP Annual Flow (hcf) Biochemical Oxygen Demand (BOD)
Customer Class
Total Suspended Solids (TSS)
Target Loadings, from WWTP Data
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1.b
Packet Pg. 84
Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study)

CITY OF COLTON

SEWER RATE STUDY
Cost of Service Analysis
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 25 : DEVELOPMENT OF CUSTOMER ALLOCATION FACTOR
Residential1 10,616 2,936 13,552 13,552 93.81% Multi-Family Residential1 4,202 48 1,459 17 5,661 65 0.45% Schools2 78 2 18 4 96 6 0.04% Commercial (Low) 379 92 471 471 3.26% Commercial (Med) 111 111 111 0.77% Commercial (Med - GT) 72 72 72 0.50% Commercial (High) 115 115 115 0.80% Commercial (High - GT) 9 9 9 0.06% Municipal 36 0 36 36 0.25% Special Commercial:

Emerald 1 - 1 1 0.01% Special Med Consumption:

A-Z Bus Sales 1 - 1 1 0.01% Inland Logistics, LLC - Lineage 1 - 1 1 0.01% Nichols Egg Ranch 1 - 1 1 0.01% Rancho Coin Laundry 1 - 1 1 0.01% Wood Springs Hotel 1 - 1 1 0.01% Special High Consumption:

Rise Baking 1 - 1 1 0.01% Arrowhead Regional Med Ctr 1 - 1 1 0.01% C.R. England, Inc 1 - 1 1 0.01% Total 15,546 4,586 20,131 14,446 100.0%

1. Number of customers from source files: Sewer FY18-21_R1_jt1, 21-22 GT Billing - Commercial-June22_manipulated Source files for special commercial customers: Emerald_Angelica Transaction History Sewer Fees.xlsx, ARMC Transaction History Sewer Fees.xlsx, CSM Transaction History Sewer Fees.xlsx

2. Colton City Schools are billed based on number of students from source files for CCS: Colton Joint Unified School District-Enrollment FY21-22 for FY 23 (002).pdf But Customer Allocaton Factors are based on number of accounts, not students).

Customer Class
Colton - No. of
MFR and
School
Accounts
(Only)
Grand
Terrace - No.
of MFR and
School
Accounts
(Only)
Total of
Colton/Grand
Terrace
Accounts
(for Customer
Alloc. %'s)
Colton - No. of
Accounts (MFR
Units, Schools
are 100's of
students)1
Grand Terrace
- No. of
Accounts
(MFR Units,
Schools are
100's of
students)1
Total of
Colton/Grand
Terrace
Accounts/
Units
% of Combined
Total - All Classes
NBS - Local Government Solutions
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1.b
Packet Pg. 85
Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study)

CITY OF COLTON

SEWER RATE STUDY
Cost of Service Analysis
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 26 : RATE REVENUE FROM EXISTING RATES
Fixed Charges Variable
Charges Total % of Total
City of Colton Customers1:

Residential 4,580,106$ -$ 4,580,106$ 51% 11,118 Multi-Family Residential 1,714,372$ -$ 1,714,372$ 19% Colton City Schools -$ 75,513$ 75,513$ 1% Commercial (Low) -$ 248,384$ 248,384$ 3% Commercial (Med) -$ 116,281$ 116,281$ 1% Commercial (High) -$ 329,719$ 329,719$ 4% Municipal -$ 18,692$ 18,692$ 0% Special Commercial:

Emerald -$ 96,885$ 96,885$ 1% Special Med Consumption:

A-Z Bus Sales -$ 40,267$ 40,267$ 0% Inland Logistics, LLC - Lineage -$ 17,034$ 17,034$ 0% Nichols Egg Ranch -$ 16,985$ 16,985$ 0% Rancho Coin Laundry -$ 1,430$ 1,430$ 0% Wood Springs Hotel -$ 4,354$ 4,354$ 0% Special High Consumption:

Rise Baking -$ 46,417$ 46,417$ 1% Arrowhead Regional Med Ctr -$ 72,018$ 72,018$ 1% C.R. England, Inc -$ 17,879$ 17,879$ 0% Subtotal: City of Colton 6,294,478$ 1,101,857$ 7,396,335$ Grand Terrace Customers3
Residential
Multi-Family Residential
Schools -$ -$ -$ 0% Commercial - Low Strength -$ -$ -$ 0% Commercial - Medium Strength -$ 48,870$ 48,870$ 1% Commercial - High Strength -$ 45,085$ 45,085$ 1% Subtotal: City of Grand Terrace 1,498,081$ 93,955$ 1,592,036$ Total 7,792,559$ 1,195,812$ 8,988,371$
% Revenue from Fixed vs. Variable 87% 13% 100% 100%

1. Revenues from source files: Sewer FY18-21_R1_jt1, 21-22 GT Billing - Commercial-June22_manipulated Source files for special commercial customers: Emerald_Angelica Transaction History Sewer Fees.xlsx, ARMC Transaction History Sewer Fees.xlsx, CSM Transaction History Sewer Fees.xlsx 17%1,498,081$ -$ 1,498,081$
Customer Class
FY 2020/21
NBS - Local Government Solutions
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1.b
Packet Pg. 86
Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study)

CITY OF COLTON

SEWER RATE STUDY
Cost of Service Analysis
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 27 : ALLOCATION OF REVENUE REQUIREMENTS

BOD TSS
Net Revenue Requirements 1 6,561,419$ 2,499,300$ 2,499,300$ 1,189,013$ 12,749,032$ -- 51% 20% 20% 9% 100.0%
Residential 3,652,825$ 1,232,747$ 1,379,226$ 1,115,463$ 7,380,259$ 57.9% Multi-Family Residential 1,540,743$ 519,966$ 581,750$ 5,323$ 2,647,782$ 20.8% Schools 67,821$ 22,888$ 25,608$ 494$ 116,810$ 0.9%
Subtotal 5,261,388$ 1,775,601$ 1,986,584$ 1,121,279$ 10,144,852$ 79.6% Commercial
Commercial (Low) 398,712$ 87,462$ 60,218$ 38,761$ 585,152$ 4.6% Commercial (Med) 142,854$ 74,726$ 32,363$ 9,136$ 259,080$ 2.0% Commercial (Med - GT) 57,501$ 30,078$ 13,027$ 5,926$ 106,532$ 0.8% Commercial (High) 226,555$ 305,828$ 256,626$ 9,466$ 798,475$ 6.3% Commercial (High - GT) 35,625$ 48,091$ 40,354$ 741$ 124,811$ 1.0% Municipal 14,740$ 3,233$ 2,226$ 2,963$ 23,163$ 0.2%
Special Commercial:

Emerald 182,411$ 40,014$ 27,550$ 82$ 250,057$ 2.0%
Special Med Consumption:

A-Z Bus Sales 48,219$ 10,577$ 7,283$ 82$ 66,162$ 0.5%
Inland Logistics, LLC - Lineage 19,700$ 4,321$ 2,975$ 82$ 27,080$ 0.2% Nichols Egg Ranch 24,551$ 5,385$ 3,708$ 82$ 33,726$ 0.3% Rancho Coin Laundry 1,668$ 422$ 346$ 82$ 2,519$ 0.0%
Wood Springs Hotel 2,631$ 1,376$ 596$ 82$ 4,685$ 0.0%
Special High Consumption:

Rise Baking 29,942$ 50,523$ 33,916$ 82$ 114,463$ 0.9%
Arrowhead Regional Med Ctr 104,506$ 44,085$ 19,730$ 82$ 168,403$ 1.3% C.R. England, Inc 10,416$ 17,576$ 11,799$ 82$ 39,873$ 0.3% Subtotal 1,300,031$ 723,699$ 512,716$ 67,734$ 2,604,180$ 20.4% Total 6,561,419$ 2,499,300$ 2,499,300$ 1,189,013$ 12,749,032$ 100.0%

1. The revenue requirement from each cost classification times the allocation factors for each customer class. $-Amt Check -$ -$ -$ -$ -$
Customer Class Volume Customer
Related
Cost Classification Components Cost-of-
Service Net
Revenue
% of COS Net
Revenue
Requirements
Treatment
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1.b
Packet Pg. 87
Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study)

CITY OF COLTON

SEWER RATE STUDY
Cost of Service Analysis
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 28 : CALCULATION OF RESIDENTIAL AND SCHOOL SEWER RATES Customer Class
(Includes both Colton and Grand
Terrace)
No. of
Accounts, MFR
Units, or 100
Students
Annual Rev.

Req't
Mo. Fixed
Charge/
Account, Unit
or 100
Students
Residential, Mobile Homes, Churches 13,552 7,380,259$ $45.38 Multi-Family and Condo - per dwelling u 5,661 2,647,782$ $38.98 Schools (per 100 students) 96 116,810$ $101.40
Total 19,309 10,144,852$ --
TABLE 29 : CALCULATION OF NON-RESIDENTIAL SEWER RATES BASED ON ANNUAL WATER CONSUMPTION Annual COS Revenue Requirements and Charges by Customer Class Customer Class Number of
Accounts
Annualized or
Annual Water
Use (hcf/yr.)
Annual Rev.

Req't
Monthly
Charge Per
Unit ($/hcf)
Colton & Grand Terrace Customers:

Commercial (Low) 476 304,954 719,324$ $2.36 Commercial (Med) 221 289,668 807,234$ $2.79 Commercial (High) 126 177,030 1,077,622$ $6.09 Total Commercial 823 771,651 2,604,180$
Changes to City of Colton Customers:

Commercial (Med - GT)
Commercial (High - GT)
Municipal
Special Commercial:

Emerald
Special Med Consumption:

A-Z Bus Sales
Inland Logistics, LLC - Lineage
Nichols Egg Ranch
Rancho Coin Laundry
Wood Springs Hotel
Special High Consumption:

Rise Baking
Arrowhead Regional Med Ctr
C.R. England, Inc
New Customer Class
Move to Commercial (Med)
Move to Commercial (Med)
Move to Commercial (Low)
Move to Commercial (Low)
Move to Commercial (Low)
Move to Commercial (Low)
Move to Commercial (Low)
Move to Commercial (High)
Recommended New Commercial Customer Classes and Rates
Move to Commercial (High)
Move to Commercial (Med)
Move to Commercial (High)
Move to Commercial (Med)
NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516 COSA - Sewer Rates, Page 25 of 31

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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study)

CITY OF COLTON

SEWER RATE STUDY
Cost of Service Analysis
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 30 : CALCULATION OF NON-RESIDENTIAL SEWER RATES BASED ON ANNUAL WATER CONSUMPTION Annual COS Revenue Requirements and Charges by Customer Class Existing Structure
Customer Class Number of
Accounts
Annualized or
Annual Water
Use (hcf/yr.)
Annual Rev.

Req't
Monthly
Charge Per
Unit ($/hcf)
Colton & Grand Terrace Customers:

Commercial (Low) 471 237,668 585,152$ $2.46 Commercial (Med) 111 100,461 259,080$ $2.58 Commercial (Med - GT) 72 31,868 106,532$ $3.34 Commercial (High) 115 135,224 798,475$ $5.90 Commercial (High - GT) 9 18,630 124,811$ $6.70 Municipal 36 8,781 23,163$ $2.64 City of Colton Customers:

Special Commercial:

Emerald 1 91,401 250,057$ $2.74
Special Med Consumption:

A-Z Bus Sales 1 33,838 66,162$
Inland Logistics, LLC - Lineage 1 14,314 27,080$ Nichols Egg Ranch 1 14,273 33,726$
Rancho Coin Laundry 1 1,202 2,519$
Wood Springs Hotel 1 3,659 4,685$
Special High Consumption:

Rise Baking 1 15,788 114,463$ $7.25
Arrowhead Regional Med Ctr 1 57,157 168,403$ $2.95 C.R. England, Inc 1 7,388 39,873$ $5.40 Total 823 771,651 2,604,180$ --
12,749,032$ Check
$1.99
NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516 COSA - Sewer Rates, Page 26 of 31

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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate Study)

CITY OF COLTON

SEWER RATE STUDY
Current and Proposed Sewer Rates
Preliminary Draft Subject to Material Revision, Do Not Cite or Distribute TABLE 31 : CURRENT AND PROPOSED SEWER RATES
Current
FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 Projected Annual Revenue Increase 30.00% 20.00% 10.00% 8.00% 8.00% Residential, Mobile Homes, Churches $34.33 $45.38 $54.46 $59.90 $64.70 $69.87 Multi-Family and Condo - per dwelling unit $29.87 $38.98 $46.78 $51.45 $55.57 $60.02 Charge per 100 students $77.52 $101.40 $121.68 $133.84 $144.55 $156.12 Low Strength $0.82 $2.36 $2.83 $3.11 $3.36 $3.63
Medium Strength $1.19 $2.79 $3.34 $3.68 $3.97 $4.29
High Strength $2.42 $6.09 $7.30 $8.04 $8.68 $9.37
Municipal
Emerald $1.06
A-Z Bus Sales $1.19
Inland Logistics, LLC - Lineage $1.19
Nichols Egg Ranch $1.19
Rancho Coin Laundry $1.19
Wood Springs Hotel $1.19
Rise Baking $2.42
Arrowhead Regional Med Ctr $2.42
C.R. England, Inc $2.94
Recommended RatesCURRENT VS. PROJECTED SEWER RATES
Move to Commercial (Med)
Move to Commercial (Med)
Move to Commercial (Low)
Move to Commercial (Low)
Move to Commercial (Low)
Move to Commercial (Low)
Move to Commercial (Low)
Move to Commercial (High)
Move to Commercial (Med)
Move to Commercial (High)
Significant Industrial Users - Charge per hcf
Special Commercial:

Special Med Consumption:

Special High Consumption:

Residential Users ($/mo. dwelling unit)
Schools
Commercial/Industrial ($/hcf/mo.)
NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516
Current vs. Proposed Rates, 27 of 31
2/15/2024

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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater Rate NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516 SFR Bill Comp, Page 28 of 31 $34.33
$45.38
$54.46
$59.90
$64.70
$69.87
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
$55
$60
$65
$70
$75
Residential, Mobile Homes, Churches
Monthly Bill
Single- and Multi-Family Residential Sewer Bill Comparison Current vs. Proposed Rates
current rate
FY 2024/25
FY 2025/26
FY 2026/27
FY 2027/28
FY 2028/29

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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516 Comm Low Bill Comp, Page 29 of 31 $43.46
$125.02
$150.02
$165.02
$178.22
$192.48
$0
$25
$50
$75
$100
$125
$150
$175
$200
$225
Commercial Low
Monthly Bill
Commercial (Low) Sewer Bill Comparisons
Current vs. Proposed Rates
Current Rates
FY 2024/25
FY 2025/26
FY 2026/27
FY 2027/28
FY 2028/29
Bills based on Average Monthly
Water Use of 53 hcf

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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516 Comm Med Bill Comp, Page 30 of 31 $129.71
$303.76
$364.51
$400.96
$433.04
$467.68
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
Commercial Medium
Monthly Bill
Commercial (Medium) Sewer Bill Comparisons
Current vs. Proposed Rates
Current Rates
FY 2024/25
FY 2025/26
FY 2026/27
FY 2027/28
FY 2028/29
Bills based on Average Monthly
Water Use of 109 hcf

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Packet Pg. 93
Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater NBS - Local Government Solutions
Web: www.nbsgov.com Toll-Free:800.676.7516 Comm High Bill Comp, Page 31 of 31 $283.14
$712.21
$854.65
$940.11
$1,015.32
$1,096.55
$0
$200
$400
$600
$800
$1,000
$1,200
Commercial High
Monthly Bill
Commercial (High) Sewer Bill Comparisons
Current vs. Proposed Rates
Current Rates
FY 2024/25
FY 2025/26
FY 2026/27
FY 2027/28
FY 2028/29
Bills based on Average Monthly
Water Use of 117 hcf

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Attachment: Colton_Technical Memorandum_Presentation Appendices (4382 : Water and Wastewater