3/2/2023
1 Clean. Reliable. Essential. Every day.
sonomawater.org
FY 2023-2024
Water Transmission System
Proposed Budget and Rates
Lynne Rosselli
ADMINISTRATIVE SERVICES
DIVISION MANAGER
[email protected]
Jake Spaulding
FINANCE MANAGER
[email protected]
1 2
21 3/2/2023
2 Transparent and collaborative process to bring
rates to Board of Directors by end of April
Sonoma
of Directors
Water Board
(April)
Water
Advisory
Committee
(April)
Water
Boards &
Contractor
Councils
(March)
Committee
Advisory
Technical
(Jan-March)
sonomawater.org 4
Budget includes multiple water transmission
system activities and funds
• Debt Service Funds• Five Capital Funds• Four Subfunds• Operations and Maintenance 43 3/2/2023
3 sonomawater.org 5
Challenges
• Natural Hazard Vulnerabilities• Increased Repairs• Maintenance Needs• Aging Infrastructure 6 Wilfred Booster StationSeismic Retrofit of Storage TanksRDS Pump and Motor Control Center ReplacementEly Booster Pump Station Flood MitigationBennett Valley Fault Crossing $6.34 million budgeted for hazard mitigation
projects to reduce risks
65 3/2/2023
4 7
$5.94 million budgeted for other capital projects
to increase resiliency
Kawana-Ralphine SBS Pipeline Acquisition
$12.28Mincluding Hazard Mitigation Projects: Total FY23-24 Capital Budget Wohler Bridge Fiber Optic CableWarm Springs Dam Hydroturbine RetrofitRalphine Tanks Flow Thru ConversionOccidental Road and Sebastopol Road WellsMirabel/Wohler Storage Building (SE Greenway)
8 $40.4 million budgeted for operations and maintenance to protect, improve and maintain system reliability
Collector Well, Pump, Pipeline, Valve RehabilitatioAqueduct Cathodic Protection Projects
ns/Replacements
Transmission System Modeling & Condition AssessmentRegional Water Supply Resiliency StudyGroundwater Banking Feasibility StudyDeMuth Property Hydrogeologic InvestigationStudiesTank Recoats & Tank Maintenance ProgramEmergency Inventory Procurement s Programs
87 3/2/2023
5 9
$9.78 million for Biological Opinion, Water
Supply Planning and Water Conservation
Expenditures compared to FY 22-23
10 FY22-23 FY23-24
Budget
(in Millions)
Budget
(in Millions)
Change
(in Millions)
Capital Projects $13.25 $12.28Operations and Maintenance $38.68 $40.41 $1.73 ($0.97)
Planning, Water ConservationBO Compliance, Water Supply $13.89 $9.78 ($4.11)Debt Service $6.01 $5.83 ($0.18)Totals $71.83 $68.30 ($3.53)and Bond ProceedsGrants, Use of Fund Balance, $15.31 $18.15 $2.84 109
3/2/2023
6 11
Operations and
Maintenance
$40.41 Million,
59%
Capital Projects
$12.28 Million,
18%
BO
Water Supply
Compliance,
Planning,
Water
$9.78 Million,
Conservation
14%
$5.83 Million,
Debt Service
9%
FY 23-24 Budgeted Expenditures Grants, Bond Proceeds, and Use of $18.15 MillionFund Balance
Example of how rates are
calculated
Cost of Operations
and Maintenance
Water Sold
= (Dollars per acre-foot)
Cost of Water
Water Sold = Lesser of:
Average of last 3
years annual
water deliveries
of actual water
Last 12 months
deliveries
or 45,128 AF
41,847 AF
$49,090,000 $1,173/ Acre
Foot
41,847 AF
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3/2/2023
7 sonomawater.org 13
Result:
dropped from
Rate increase
over 20% to
10.56%
Total cost per
$0.004
gallon is
Steps taken to reduce budget and rate
Deferred nonroutine
maintenance
projects = $2.44
million
Use of grants, bond
proceeds,
and fund balance =
$18.15 million
Water contractors
further reduced rates
by cutting
discretionary
aqueduct capital
charges
sonomawater.org
Proposed Rates for FY 23-24
14 O&MDeliveries (Acre-Feet) 41,847Charge / Aqueduct Santa Rosa Petaluma Sonoma $903.30 $903.30 $903.30
Watershed Planning & RestorationWater Management Planning $0.00 $0.00 $0.00 $35.96 $35.96 $35.96
Recycled Water and Local Supply $0.00 $0.00 $0.00 Storage & Common Bond/Loan Charges $168.75 $168.75 $16Total O&M $993.34 $993.34 $993.34 Water Conservation $54.08 $54.08 $54.08
8.75 Prime ContractorsSonoma Aqueduct Bond/Loan Charge $151.68 $1,162.09 $1,162.09 $1,313.77
for future projectsCapital Charges - to build fund balance Discretionary Charges $11.00 $0.00 $34.90
Prime Contractors $11.00 $0.00 $34.90 Total Prime Contractors $1,173.09 $1,162.09 $1,348.67 Total Overall Increase: 10.56% 9.42% 10.56%
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8 2023 wholesale water rates per Acre-Foot
15 $-
$100 $200 $300 $400 $500 $600 $700 $800 $900
$1,000 $1,100 $1,200 $1,300 $1,400 $1,500 $1,600 $1,700 $1,800 $1,900 $2,000 $2,100 $2,200 Water Agency
Sonoma County Santa Clara Valley
Water District
Zone 7 Water
Agency
(Pleasanton,
Livermore)
Public Utilities
San Francisco
Commission
Water District
Contra Costa
sonomawater.org
•
in MarchTown Councils, and Water District Boards Presentations upon Request to City and • Water Advisory Committee Vote – April 3•
18Adoption by Sonoma Water’s Board – April
Next steps
16 1615
3/2/2023
9 sonomawater.org
Lynne Rosselli
Administrative Services Division Manager
[email protected]
Jake Spaulding
Finance Manager
[email protected]
17 17