FY24-25 Draft Sonoma Water Transmission System Budget — Cotati City Council, March 12, 2024

Sonoma Water i Draft 2/29/2024
Water Transmission FY 2024/2025 Draft Budget and Rates
Infrastructure Investments
Sonoma Water’s critical infrastructure, including aqueducts, pipelines, pump stations, storage tanks, and wells, are gradually aging after decades of service. A significant portion of it is approaching the end of its useful lifespan. The age of the infrastructure, combined with substantial levels of deferred maintenance, underscores the importance of making investments to guarantee a dependable and sustainable water source for the future.

This budget is a crucial and essential step in that direction.

Sonoma Water has been successful in securing grants from various sources and has utilized fund balances and bond proceeds to help moderate rate increases. In fact, Sonoma Water’s wholesale rates (the rates that are charged to water contractors) are among the lowest in the greater Bay Area. Future proposed budgets will continue to prioritize ongoing infrastructure maintenance, replacement, and improvement to ensure a sustainable source of water for the benefit of the communities served.

The terms of the Restructured Agreement for Water Supply require that budgeted deliveries be the lesser of the preceding twelve months of water delivered, or the average annual amount of water delivered during the preceding 36 months. This requirement is to ensure Sonoma Water can meet its obligation to set rates at an amount that covers the projected costs for the following year. Sonoma Water must also generate sufficient revenue to cover debt obligations and maintain a debt coverage ratio as stipulated in outstanding bond issuances.

The Restructured Agreement for Water Supply also states that “If because of drought or other water-supply reduction, state or federal order, or other similar condition, the Agency anticipates that any such quantities will not be predictive of future usage, the Agency may use a different amount with the prior approval of the Water Advisory Committee.” For the FY 2024/2025 Water Transmission Budget, the prior 12 months of water deliveries (which is lower than the average of the last 36 months) is 40,844 acre-feet (AF). Due to the historic drought and mandated state conservation measures deliveries were historically low for the preceding 12-month period. All water contractors except Town of Windsor had deliveries below budget which contributed significantly to the lower deliveries figures. The spring 2023 landslide that curtailed use of the North Marin Aqueduct contributed a minor amount to the reduction in deliveries. Sonoma Water staff have analyzed supply/demand conditions and propose that budgeted deliveries for the FY 2024/2025 Water Transmission Budget be based on the 36-month average water deliveries of 42,826 AF. Budgeted deliveries of 42,826 AF represent a 2.3% increase compared to the FY 2023/2024 budget of 41,847 AF, while 40,844 AF for the preceding 12-month period would have resulted in a 2.4% decrease compared to prior year and put further pressure on rates. The FY 2024/2025 Water Transmission draft budget shown below has been developed based on the 36-month average water deliveries of 42,826 AF.

FY23-24 FY24-25
Budget
(in Millions)
Budget
(in
Millions)
Change
(in Millions)
Operations and Maintenance $40.41 $45.41 $5.00
Capital Projects $12.28 $15.66 $3.39
Biological Opinion Compliance, Water
Supply Planning, Water Conservation $9.78 $7.53 ($2.25) Debt Service $5.83 $5.83 $0.00
Totals $68.30 $74.43 $6.14
Grants, Use of Fund Balance, and Bond
Proceeds $18.15 $18.13 ($0.02)
Sonoma Water ii Draft 2/29/2024
Budget and Rate Reduction Measures: Changes made since January 17, 2024 Draft Water Transmission Budget:
• Decreased rate increase from 14.57% to 9.88% (Santa Rosa Aqueduct), 14.71% to 9.98% (Petaluma Aqueduct) and 12.06% to 8.14% (Sonoma Aqueduct).
• Reduced O&M contract services by an additional $2.45 million by deferring additional funds for the Tank Recoat Program. This reduction cuts the FY 2024/2025 rate increase by 4.7%. The consequences of reducing the tank recoat program budget are that for the subsequent two fiscal years (FY 2025/2026 and FY 2026/2027), there will be less of a buffer for cost overruns, less water sales revenue, reduced capacity to build fund balance to smooth rates, and on top of the rate increase needed to operate and maintain the water transmission system, there would be an additional 2.35% increase in rates each year just from the tank recoat program. The additional funding for the tank recoat program has been included in the budget to smooth rates over the 10-year tank recoat program. • Revised bond and loan charges: a) corrected/updated debt service figures; b) Storage Bond Charges are increasing because of the higher expenditures in the Storage Facilities Fund and the need for additional Storage Bond Funds; and c) Common Bond Charges decreased because funds were allocated to Storage Bonds for Storage Projects. Total Bond and Loan Charges have decreased compared to the current FY 2023/2024 budget because higher deliveries (36-month average water deliveries) are being used for the rate calculation.

FY 2024/2025 Draft Budget Financial Summary compared to FY 2023/2024 Adopted Budget: Factors affecting the rate increase:

The three years of historic drought and mandated conservation measures resulted in historically low FY 2022/2023 water deliveries of 36,032 AF, low water sales revenue, and significantly reduced fund balance reserves. Even with a 2.3% increase in budgeted deliveries of 42,826 AF, low reserves, and increasing operations and maintenance costs to keep pace with critically needed infrastructure improvements has contributed to needed rate increases. Significant efforts have been made to cut and defer maintenance projects to reduce the rate increase. Sonoma Water is not alone in facing rate pressures, as decreasing water sales are forcing other wholesalers and retailers to raise rates beyond historical averages.

Operations and Maintenance (O&M)
• 2.3% increase in budgeted deliveries.
• 12.3% increase in water sales revenue due to an increase in deliveries and the rate needed to cover budgeted expenditures.
• FY 2024/2025 budgeted expenditures: $45.41 million. An increase of $5.00 million or 12.4%. • Budgeted expenditures increase is mostly attributable to the tank maintenance program, tank recoat program, and cathodic protection, as well as, increased costs for equipment rentals and leases, chemicals, laboratory costs, and staff labor costs tied to negotiated labor agreements. • Must have sufficient net operating revenues to meet 1.15x debt coverage bond covenant requirement. • Water Sales Revenue Shortfall:
o FY 2021/2022: $1 million; FY2022/2023: $10.2M; FY 2023/2024: estimated $3 million to $4 million below budget. The estimated shortfall in FY23/24 is a result of our projection model predicting that deliveries will fall roughly 2.6% below budget compounded by fact that MMWD prepaid for some FY 2023/2024 deliveries under the Take or Pay provision in FY 2022/2023.

Sonoma Water iii Draft 2/29/2024
• FY 2022/2023 Actual Expenditures plus Encumbrances were $48.8 million compared to the Adjusted Budget of $47.5 million or 103% of the Adjusted Budget. FY 2023/2024 expenditures are anticipated to align closely with the adjusted budget with the exception of the cathodic protection project which is not sufficiently funded to award in the current fiscal year. Unspent budget is rolled forward to subsequent budget years to avoid being included in the rate calculation more than once. • Budgeted projects have been thoroughly reviewed and edited and represent the budgeted work that can reasonably occur in FY 2024/2025. Budgeted maintenance projects are a priority, and further delays and cuts pose detrimental operational impact or risk.
• O&M budget has been reduced by $3 million by deferring maintenance costs, and by reducing the Tank Recoat ask by $2.5 million for a total of $5.5 million in reductions. These deferrals could result in rate spikes in future years as the projects cannot be deferred indefinitely. • Deferring maintenance projects reduced the O&M rate increase from more than 31% to 12.41%.

Maintenance costs were deferred for the following projects:
• Tank Recoating Program
• Transmission System Condition Assessments
• SCADA
• Emergency Inventory Procurement
• Seismic Response Concept of Operations Planning
Capital Projects
Capital Projects: FY 2024/2025 draft budgeted expenditures of $15.66 million increased by $3.39 million or

27.61%.

Capital budget has been reduced by $2.9 million by deferring the Mirabel 12kV Resiliency and Warm Springs Dam Hydroturbine Retrofit projects.

Hazard mitigation projects ($8.4 million) and infrastructure improvement projects/drought resiliency projects ($7.2 million) are fully funded by Water Revenue Bonds, grants, and Fund Balance. $2.9 million in planned capital expenditures were deferred to ensure there would be no effect on the rate.

Investing in Infrastructure:

Construction: Hazard Mitigation Projects $7,228,402
Ely BPS Flood Control & Electrical Upgrade 318,000
RDS Pump and Motor Control Center Replacement 4,250,600 Seismic Retrofit of Storage Tanks 136,786
Wilfred Booster Station 2,523,016
Design: Hazard Mitigation Projects $1,232,600
Bennett Valley Fault Crossing 346,400
Collectors 3 and 5 Liquefaction Mitigation 886,200
Construction: Other Capital Projects $4,868,600
Mirabel Fiber Resiliency 2,987,000
Sonoma Water iv Draft 2/29/2024
Occidental Road Well 563,300
Ralphine Tanks Flow Thru Conversion 26,700
Sebastopol Road Well 639,400
Warm Springs Dam Hydroturbine Retrofit 652,200
Design Other Capital Projects $2,333,500
Kawana-Ralphine SBS Pipeline, Phase 1 908,400
Mirabel/Wohler Storage Building 354,900
Water System Treatment Upgrades 1,070,200
Biological Opinion
• 2.3% increase in deliveries.
• 17.56% increase in revenue due to an increase in deliveries and the rate. • Subfund budget has been reduced by $313,000 or a 31% decrease in expenditures due to reduced anticipated cost share related to Dry Creek and costs savings related to RRIFR Lagoon Outlet Channel Implementation and Algae/Water Quality Monitoring.
• $1.74 million in Use of Fund Balance reduces rate increase from 124.52% to 11.37%. • 11.37% rate increase compared to 9.94% increase in FY 2023/2024 when $3.5 million in Use of Fund Balance was budgeted.
• Expenditures will continue to range from $3 million to $4.5 million annually in this subfund. A rate of $40/AF at 42,826 AF generates $1.7 million in revenue. If more fund balance were used, there would be a significant rate spike in subsequent years to generate sufficient revenue for the subfund. The rate increase is intended to smooth future rate increases.

Dry Creek Habitat Enhancement Phase 4 construction activities are underway and will be complete in FY 2024/2025. Sonoma Water has pending expenditure credits under review by the U.S. Army Corp. The credits may offset a portion of Sonoma Water’s 35% cost share for Phases 4, 5, and 6 construction costs. The draft budget includes Dry Creek Habitat Enhancement design and right-of-way for phase 6, and construction for phases 4, and 5, as well as other required biological opinion activities.

Among other ongoing biological opinion activities, Sonoma Water staff submitted a Biological Assessment to NMFS and CDFW on August 23, 2023 as a precursor to the issuance of a new Biological Opinion.

Water Conservation
• 2.3% increase in deliveries.
• 12.4% decrease in revenue due to a reduction in the rate increase. • 15.6% decrease in expenditures to reduce the rate increase due to cuts to the QWEL program, spatial analysis, public outreach, and education efforts.
• Subfund budget has been reduced by $145,000 by deferring costs. • $250,000 in Use of Fund Balance. Reduces rate increase from 20.90% to 10.11%. o FY 2023/2024 Adopted Budget used $418,000 in Fund Balance to reduce the Water Conservation Rate Increase to 13.85%.
o Without the Use of Fund Balance in the FY 2023/2024 Adopted budget, the Water Conservation rate increase would have been 34.88%.
o Due to historic low deliveries in FY 2022/2023, there is limited capacity to use Fund Balance in the FY 2024/2025 Adopted Budget.
• 10.11% rate increase compared to 13.85% increase in FY 2023/2024 when $418,000 in Use of Fund Balance was budgeted.

Sonoma Water v Draft 2/29/2024
Sonoma Water and the Sonoma Marin Saving Water Partnership plan to continue work on conservation related initiatives and corresponding outreach and education activities.

There was an expansion of programs (at the direction of the Water Contractors) to respond to the historical drought conditions after rates were set in FY 2021/2022 and FY 2022/2023. The costs of these programs were not captured in the previous years’ rates and the expenses were therefore paid for by fund balance.

Furthermore, historically low deliveries in FY 2022/2023 resulted in revenue shortfalls further depleting fund balance.

This year the Water Conservation Subfund budget is only inclusive of what is needed to maintain existing successful regional programs of the Partnership, including the Water Education Program, Green Business Program, Garden Sense Program, Water Loss Working Group and Validation Services, QWEL Program, DIY Toolkit, Eco-Friendly Garden Tour, WaterSmart Plant Label Program. The budget also includes funds for continued administration and coordination of USBR WEEG grant award and the Prop 1 Bay Area and North Coast grant awards for the Partnership.

Water Management and Recycled Water and Local Supply
For both of these subfunds, low budgeted expenditures, low rates, and use of fund balance have minimal impact (less than 0.03%) on the overall rate increase.

Water Management rate is increasing for budget needed for the upcoming Urban Water Management Plan (UWMP). The slight increase in the rate is to smooth the rate increases over multiple years as previously agreed upon with the water contractors.

Recycled Water and Local Supply costs are for Sonoma Water’s share of the groundwater sustainability agency costs. The rate is set to $0/AF since there is sufficient fund balance to cover these costs and there are no other anticipated expenditures in the next couple of years.

Debt Service
Debt Service Expenditures remain the same as last year.

Summary
The draft proposed budget for FY 2024/2025 is based on accomplishing the required elements of the Biological Opinion, maintenance of facilities, continued implementation of hazard mitigation and reliability projects, and projects responsive to the conditions of critical infrastructure.

Sonoma Water recognizes the profound impact of natural hazards, the remnants of the COVID-19 pandemic, and current economic circumstances to many residents, businesses, and our retail water contractors throughout our county and beyond. In response to the far-reaching financial hardships, Sonoma Water made a conscious effort to reduce rate increases while continuing to maintain system reliability and public health and safety. Sonoma Water was able to keep average rate increases at 6.0% and 5.2% over the past five and ten years respectively, even with the 10.56% rate increase in FY 2023/2024.

Due to the age of our critical infrastructure, rising costs, the backlog of repeatedly deferred maintenance, and continued low deliveries, our previous goal of 4-6% is no longer adequate. The Long Range Financial Plan is projecting future higher rate increases.

Sonoma Water’s rate is fully volumetric meaning that lower deliveries drive rates higher. Budgeted deliveries averaged over the 3- and 10-year periods and actual deliveries averaged over the past 3, 5, and 10-year periods have been negative, which has put continuous pressure on rates.

Sonoma Water vi Draft 2/29/2024
Budgeted Deliveries Actual Deliveries
3-year
average
5-year
average
10-year
average
3-year
average
5-year
average
10-year
average
-1.27% 0.17% -1.14% -6.62% -0.49% -2.13%
Sources of revenue include water sales and charges for services, federal and state grants, existing fund balances, contributions, interest, and bond financing.

Revenues
FY 2024/2025
Draft Budget
Increase/(Decrease)
over FY 2023/2024
Water Sales & Charges for Services 56,410,448 12%
Operating Grants 1,036,360 (44%)
Capital Grants 0 (100%)
Contributions 301,055 (1%)
Interest & Investment Earnings 1,100,172 9%
TOTAL 58,848,035 7.9%
Fund Balance FY 2024/2025 Draft
Budget
Increase/(Decrease)
over FY 2023/2024
Use of Fund Balance: 11% from
Operating Funds; 89% from
Capital Funds 10,635,639 (13%)
Bond Funds FY 2024/2025 Draft
Budget
Increase/(Decrease)
over FY 2023/2024
Use of Bond Funds 6,460,000 126%
Budget Requirements:
• Maintain 3-month operating reserve.
• Maintain 1.15x debt coverage bond covenant.
• Rates collect 1.15x debt service in accordance with the provisions of the Water Transmission System Master Ordinance.

Budget and Rate Reduction Measures reflected in the February 20 draft budget:
• Decreased rate increase from 26% to 9.88% by deferring a total of $8.9 million in projects: $5.5 million in operations and maintenance projects, $2.9 million in capital projects, and $500 thousand in Subfund projects. Sonoma Water has been deferring millions of dollars of capital and maintenance projects annually to reduce rate increases.
• Total expenditures budget is 8.99% higher than FY 2023/2024. • Capital Program is fully funded by the $15 million in 2022 Revenue Bonds, grants, and fund balance. No contribution from Water Transmission O&M Fund.
• The FY 2023/2024 Santa Rosa Aqueduct Discretionary Capital Charge of $11/AF is included in this draft budget resulting in a total rate increase of 9.88%. This charge contributes approximately 0.8% to the overall rate increase. The FY 2023/2024 Petaluma Aqueduct Discretionary Capital Charge of $0/AF is included in this draft budget resulting in a total rate increase of 9.98%. The FY 2023/2024 Sonoma Sonoma Water vii Draft 2/29/2024
Aqueduct Discretionary Capital Charge of $34.90/AF is included in this draft budget resulting in a total rate increase of 8.14%. This charge contributes approximately 2.6% to the overall rate increase. • Use of $18.13 million in grants, fund balance, and bond proceeds reduces the rate increase from 50.7% to 9.88%.
o Use of Fund Balance: $10.64 million.
o Grant revenue: $1.04 million
o Bond proceeds: $6.46 million
• $2.25 million of Prudent reserve is being utilized to ensure we meet our O&M Reserve requirement of 3 months of operating costs.
• Water Transmission System Total Cost per Gallon is $0.004.

Factors affecting the Rate Increase:
• 2.3% increase in deliveries
• Two years with actual water deliveries 4% and 21.2% less than budget and a third year estimated at 2.4% less than budget.
• 12.5% increase in total revenue.
• 12.4%. increase in O&M costs.
• 96.7% of the rate increase is attributable to the O&M budget, -5.2% to debt service, and 8.5% to the subfunds (Water Management, Watershed Planning and Restoration, Recycled Water and Local Supply, and Water Conservation).
• The net effect of the Water Conservation Rate Increase on the Total Water Transmission Rate Increase is

0.46%.
• MMWD is receiving 474 AF of water paid for in FY 2022/2023 under their take or pay provision in FY 2023/2024. This results in less revenue than budgeted in FY 2023/2024 and lower Fund Balance. • Increases in material and equipment costs for aging infrastructure and priority maintenance projects that can no longer be deferred, continued supply chain disruptions, long lead times on equipment, and the current inflationary environment are putting upward pressure on the Water Transmission System budget.
* Increase in actual deliveries in FY20-21 was partially due to the backfilling of Stafford Lake by NMWD. In FY21-22, MMWD took excess winter instream flows.

Sonoma Water viii Draft 2/29/2024
Sonoma Water continues to have one of the lowest wholesale water rates in the San Francisco Bay Area. The chart below compares the proposed FY24/25 rate per AF to the current rates of other wholesale water agencies in the bay area.

Sonoma Water ix Draft 2/29/2024
Proposed rates are shown in the table below:

Charge / Aqueduct Santa Rosa Petaluma Sonoma
Deliveries (Acre-Feet) 42,826
O&M $1015.39 $1015.39 $1015.39
Water Management Planning $0.35 $0.35 $0.35
Watershed Planning & Restoration $40.04 $40.04 $40.04
Recycled Water and Local Supply $0.00 $0.00 $0.00
Water Conservation $59.55 $59.55 $59.55
Total O&M $1,115.33 $1,115.33 $1,115.33
Storage & Common Bond/Loan Charges $162.69 $162.69 $162.69 Sonoma Aqueduct Bond/Loan Charge $145.49
Prime Contractors $1,278.02 $1,278.02 $1,423.51
Discretionary Charges
Capital Charges - to build fund balance for
future projects $11.00 $0.00 $34.90
Total Prime Contractors $1,289.02 $1,278.02 $1,458.41
Total Overall Increase: 9.88% 9.98% 8.14%
Entity Rate per AF Rate Increase
Town of Windsor $1,289.02 9.88%
Town of Windsor (Diverted Water) $99.94 11.00%
NMWD 1,385.15 11.74%
MMWD $1,610.09 10.64%
• Deliveries: (Budget Packet Pages 9-14):

FY 2021/2022
Budget
FY 2021/2022
Actuals
FY 2022/2023
Budget
FY 2022/2023
Actuals
FY 2023/2024
Budget
FY 2023/2024
Estimated
Actuals
FY 2024/2025
Estimated
Budget
3-year Average 3-year average 12-months 3-year average
46,095.00 44,236.90 45,748.00 36,031.60 41,847.20 40,845.00 42,826 4% less than
budget

21.2% less than
budget

2.4% less than
budget
FY23-24 vs
FY24-25 Budget
Variance (1,858.10) (9,716.40) (1,002.20) 1,981
FY 2023/2024 Budgeted Deliveries vs FY
2024/2025 Budgeted Deliveries

2.3% increase
FY 2022/2023 Actuals vs FY 2023/2024 Estimated
Actuals

13.1% increase
Sonoma Water x Draft 2/29/2024
• Operations and Maintenance (O&M) – Water Transmission O&M Fund (Budget Packet Pages 15-25):
o In accordance with the Restructured Agreement for Water Supply:
 The rate is calculated by dividing operations and maintenance expenditures (less specific cash and noncash revenues and expenditures) by budgeted deliveries.

O&M Fund
Increase
(Decrease)
in Dollars
Percent
Change Description
Rate per AF $112.09 12.41% Increase is attributable to increased infrastructure maintenance needs coupled with elevated material and labor costs.

Revenue $6,194,000 12.29% Increase in revenue is attributable to the rate increase.

Expenditures $5,019,000 8.58%
Increase is attributable to an increase in maintenance projects (cathodic protection, tank recoats, tank maintenance,
pump/meter/valve replacements, collector maintenance, SCADA upgrades), studies (arc flash studies, hydrogeologic investigations, Regional Water Supply Resiliency, Seismic Mitigation Studies, Water System Comprehensive Master Plan, Wohler and Mirabel Collector Variable Frequency Drive (VFD) Study, and emergency inventory procurement, and other expenditures increases described below.

Factors affecting the O&M rate:

O&M Fund
Expenditures
Increase
(Decrease)
in Dollars
Percent
Change Description
Labor $1,830,000 9.96%
Increase is attributable to an increase in labor costs for maintenance projects (cathodic protection, tank recoats, tank maintenance, pump/meter/valve replacements, collector
maintenance, SCADA upgrades), studies (arc flash studies, hydrogeologic investigations, Regional Water Supply Resiliency, Seismic Mitigation Studies, Water System Comprehensive Master Plan, Wohler and Mirabel Collector Variable Frequency Drive (VFD) Study, emergency inventory procurement, and mitigation monitoring for recently completed FEMA projects, offset by projects deferred to reduce the rate increase. Approximately, 5% of this increase is due to negotiated labor rates.

Power $0 0.00% Power demand and costs are expected to align with the FY 2023/2024 budget.

Chemicals $425,000 54.84%
Increase due to elevated chlorine and caustic soda costs. Input costs grew by 71% in FY 2022/2023 and are on track to increase further in FY 2024/2025.

Testing/Analysis $40,000 20.00%
Increase associated with expanded sampling and analysis tied to the Santa Rosa Plain Wells Projects as well as additional microplastics and Perfluoroalkyl/Polyfluoroalkyl Substances (PFAS) testing.

Contract Services $981,000 8.88%
Increase attributable to increased maintenance project costs related to collector maintenance, cathodic protection, tank recoats, tank maintenance, arc flash studies, hydrogeologic investigations, and water system comprehensive master planning, offset by $4.42M in projects that have been deferred to reduce the rate increase.

Sonoma Water xi Draft 2/29/2024
O&M Fund
Expenditures
Increase
(Decrease)
in Dollars
Percent
Change Description
Maintenance -
Equipment ($380,000) -13.22% Decrease attributable to lower budgeted expenses and $260,000 in projects that have been deferred to reduce the rate increase.

Rents and Leases
- Heavy Eqt $200,000 100.00% Increase attributable to elevated equipment needs to implement current suite of maintenance projects.

Equipment
Usage Charges $200,000 22.22% Increase attributable to increased use of Sonoma Water equipment to implement routine maintenance projects.

SCADA $2,191,000 N/A Increase attributable to Water Transmission System’s share of SCADA capital projects.

Operating
Transfers $503,000 8.00%
Operating Transfers (OT’s) move revenue generated by rates into respective funds (debt service funds, subfunds, aqueduct capital funds and Common Facilities) and maintain appropriate fund balance.
• Subfunds: (Budget Packet Pages 26-35):
o Subfund rates are calculated by dividing subfund expenditures minus grant revenue by budgeted water deliveries.
o Water Management Planning:
 Expenditures are for Urban Water Management Planning (UWMP) which is required to be updated every five years and the Annual Water Supply & Demand Assessment.

Water
Management
Planning
Increase
(Decrease)
in Dollars
Percent
Change Description
Rate per AF $0.35
NA – last
FY rate was
$0.

Fiscal Year 2023/2024 rate is $0.00. Fund is for Urban Water Management Plan updates and the Annual Water Supply &
Demand Assessment. Rate of $3.39/AF based on $145,000 in expenditures and 42,826 AF is reduced to $0.35/AF by using $130,000 in fund balance. Rate increase is in anticipation of work needed to submit the 2025 Urban Water Management Plan.

Revenue $18,000 333.4%
Increase due to subfund rate increase and higher interest earnings offset by use of fund balance. Decreasing use of fund balance to smooth rate increases.

Expenditures $45,000 45.0%
Budget increase is due to staff time related to the annual water supply and demand assessment. Budget request is for follow-up meetings, responding to State Department of Water Resources and contractor requests, tracking regulatory compliance changes, and coordinating with climate adaption strategic planning efforts.

Sonoma Water xii Draft 2/29/2024
o Watershed Planning and Restoration:
 Expenditures are for planning, design, and implementation of watershed restoration projects and projects required under the Biological Opinion.

Watershed
Planning and
Restoration
Increase
(Decrease) in
Dollars
Percent
Change Description
Rate per AF $4.09 11.4%
Fiscal Year 2023/2024 rate is $35.96. Rate increase is primarily a result of not being able to utilize as much fund balance to offset rate as was used in prior year. Rate of $80.73/AF based on $3.5M in expenditures and 42,826 AF is reduced to $40.04/AF by using $1.7M in fund balance. In Fiscal Year 2023/2024 $3.5M in fund balance was utilized to offset rate increases.

Revenue $295,000 17.6%
Increase due to subfund rate increase and higher interest earnings offset by use of fund balance to reduce and smooth overall rate increase.

Expenditures ($1,547,000) -30.9%
Decrease in expenditures is a result of reduced budgeted cost share due to U.S. Army Corps credits for Sonoma Water’s share of costs for construction of Dry Creek Habitat Enhancement phases 4, 5, and 6, and reduced efforts for RRIFR Lagoon Outlet Channel Implementation and Algae/Water Quality Monitoring.

Budget includes ongoing costs for Dry Creek Habitat
Enhancement Phases 4, 5, 6, and other required biological opinion activities.

Sonoma Water xiii Draft 2/29/2024
o Recycled Water and Local Supply:
 Expenditures are for planning, design, and implementation of recycled water and local supply projects. The fund previously included water contractor projects under the Local Recycled Water Tier 2 (LRT2) Program.

Recycled Water
and Local Supply
Increase
(Decrease)
in Dollars
Percent
Change Description
Rate per AF $0.00
NA – last
FY rate was
$0.

Fiscal Year 2023/2024 rate is $0.00. Due to accumulated fund balance rate remains at $0 in FY24/25.

Revenue $2,000 33.2%
Using an estimated $31,000 in fund balance to keep rate at $0.

Increase in revenue is associated with higher anticipated interest earnings.

Expenditures ($25,000) -44.6%
Decrease is due to lower anticipated expenditures. Expenditures are for Sonoma Water's share of Groundwater Sustainability Agencies' budgets.

Water Conservation:
 Expenditures are for water use efficiency projects, outreach, and education.

Water
Conservation
Increase
(Decrease)
in Dollars
Percent
Change Description
Rate per AF $5.47 10.1%
Fiscal Year 2023/2024 rate is $54.08. Rate increase is primarily a result of not being able to utilize as much fund balance to offset rate as was used in prior year. Rate of $65.38/AF based on $2.8M of net expenditures and 42,826 AF is reduced to $59.55/AF by using $250,000 in fund balance. In Fiscal Year 2023/2024 $418,000 in fund balance was utilized to offset rate increase.

Revenue ($540,000) -12.4% Decrease due to subfund rate increase and higher interest earnings offset by lower anticipated grant funding than prior year budget.

Expenditures ($721,000) -15.6%
Decrease is associated with decreased planned expenditures due to lack of a new grant funded project. Expenditures used to implement water use efficiency, outreach and education projects, address ongoing water conservation needs, and pass-through grant funds to water contractors and other partners.

Sonoma Water xiv Draft 2/29/2024
• Storage, Common, and Sonoma Bond/Loan Charges: (Budget Packet Pages 46-57):
o The rates are calculated by dividing the annual debt service and reserve requirements (2015A, 2019A, and 2022A Water Revenue Bonds) by water deliveries.

Storage and
Common
Bond/Loan
Charges
Increase
(Decrease)
in Dollars
Percent
Change Description
Storage
Bond/Loan
Charge
$2.32 8.0%
Fiscal Year 2023/2024 rate is $33.38. Rate is based on revenue requirement for debt service divided by water deliveries. Total Debt service higher than previous year due to reallocation of 2022 bond proceeds to fund capital projects in the Storage Fund. Rate increase is due to additional project funding needs offset by increase in budgeted water deliveries.

Common
Bond/Loan
Charge
($8.39) -6.0%
Fiscal Year 2023/2024 rate is $127.89. Rate is based on revenue requirement for debt service divided by water deliveries. Total Debt service lower than previous year due to reallocation of 2022 bond proceeds to fund capital projects in the Storage Fund. Rate decrease is due to decrease in bond proceeds needed for capital projects in the fund and an increase in budgeted water deliveries.

Sonoma
Aqueduct
Bond/Loan
Charge
($6.19) -4.1%
Fiscal Year 2023/2024 rate is $143.41. Sonoma Aqueduct pays an additional revenue bond charge for the bonds associated with Sonoma Booster Station Electrical Upgrade and Pumping Reliability Project, Bennett Valley Fault Crossing Project, and other Creek Crossing Projects on the Aqueduct. Total Debt service lower than previous year due to savings associated with refunding in the 2022 Revenue Bond Issuance. Rate decrease is due to increase in budgeted water deliveries.

Aqueduct Capital Charge: (Budget Packet Page 1):
o A discretionary charge is added by the water contractors to build fund balance for future aqueduct capital projects and to provide rate stabilization capacity. o The FY 2023-2024 budget included an $11 per Acre-Foot charge for the Santa Rosa Aqueduct, a $0 per Acre-Foot charge for the Petaluma Aqueduct, and a $34.90 per Acre-Foot charge for the Sonoma Aqueduct.
o The FY 2024-2025 draft budget includes a $11 per Acre-Foot charge for the Santa Rosa Aqueduct, a $0 per Acre-Foot charge for the Petaluma Aqueduct, and a $34.90 per Acre-Foot charge for the Sonoma Aqueduct.
• Overall Draft Proposed Rate Increases: (Budget Packet Pages 1-8):
o 9.88% (Santa Rosa Aqueduct); 9.98% (Petaluma Aqueduct); 8.14% (Sonoma Aqueduct) o FY2024/2025 budgeted deliveries are based on 36-month average water deliveries (42,826AF) instead of the 12-month water deliveries (40,844AF). FY2024/2025 budgeted deliveries are 2.3% more than FY 2023/2024 budgeted deliveries.
o The FY2024/2025 budget accommodates an increase in maintenance projects (cathodic protection, tank recoats, tank maintenance, pump/meter/valve replacements, collector maintenance, SCADA upgrades), studies (arc flash studies, hydrogeologic investigations, Regional Water Supply Resiliency, Seismic Mitigation Studies, Water System Comprehensive Master Plan, Wohler and Mirabel Collector Variable Frequency Drive (VFD) Study, emergency inventory purchases, Water Conservation, Biological Opinion and Dry Creek Habitat Enhancement design and right-of-way for phase 6, and construction for phases 4, and 5, and investment in hazard mitigation and other capital infrastructure projects, all in an environment of increasing input costs.

Sonoma Water xv Draft 2/29/2024
FY 2024-2025 Capital Projects (Budget Packet Pages 36-45):

Water Transmission Budget FY24-25
Capital Projects Summary
Project Category Amount Status
Ely BPS Flood Control & Electrical Upgrade Petaluma AQ 318,000 Award Q3 FY21/22; Delayed due to Elec Supply Chain issues; Construction FY24/25 - FY25/26 Wilfred Booster Station Petaluma AQ 2,523,016 90% design; Prepurchase Elec Equipt Q4 FY23/24; Anticipate Constuction Award Q4 FY24/25 Bennett Valley Fault Crossing Sonoma AQ 173,200 30% design complete. Engaging consultant for final design FY23/24. Anticipate award in FY25/26 Kawana-Ralphine SBS Pipeline Storage 908,400 Consultant Selection 24/25; Anticpate construction award in FY25/26 Bennett Valley Fault Crossing Storage 173,200 30% design complete. Engaging consultant for final design FY23/24. Anticipate award in FY25/26 Seismic Retrofit of Storage Tanks Storage 136,786 Preliminary design; Tied to Tank Recoat schedule Ralphine Tanks Flow Thru Conversion Storage 26,700 Engaging consultant for design FY23/24; Anticipate construction award in FY24/25 Collectors 3 and 5 Liquefaction Mitigation Common 886,200 Preliminary Design; Anticpate award in FY26/27 Mirabel 12kV Resiliency Common - Design Phase in FY25/26; Anticipate award in FY27/28 Mirabel/Wohler Storage Building Common 354,900 Design Advancing; Anticipate award FY25/26 Mirabel Fiber Resiliency Common 2,987,000 Design Phase; Anticipate award in FY24/25 RDS Pump and Motor Control Center Replacement Common 4,250,600 Design Advancing; Anticipate award in FY24/25 Occidental Road Well Common 563,300 Construction initiated FY23/24; Anticipate construction complete in FY24/25 Sebastopol Road Well Common 639,400 Construction initiated FY22/23; Anticipate construction complete in FY24/25 Warm Springs Dam Hydroturbine Retrofit Common 652,200 Re-issuing equipt. RFP. Switchgear purchase in FY23/24. Anticipate award in FY24/25 Water System Treatment Upgrades Common 1,070,200 Preliminary design underway; Engage consultant for final design FY 24/25 TOTAL 15,663,102
Santa Rosa AQ -
Petaluma AQ 2,841,016
Sonoma AQ 173,200
Storage 1,245,086
Common 11,403,800
15,663,102
Sonoma County Water Agency
Fiscal Year 2024/2025 Draft Water Transmission Budget and Rates Budget Packet Page
Rates
Prime Contractor Rates Summary 1-2
Water Charges Per Acre-Foot 3
Revenue Summary 4
Water Rates 5
O&M Rate 6
Line Item Rate Comparison 7
Russian River Projects and Conservation Charges 8
Deliveries
Deliveries (36 Mo) 9
Deliveries (12 Mo) 10
Deliveries and Revenue - All Aqueducts 11
Deliveries and Revenue - Santa Rosa Aqueduct 12
Deliveries and Revenue - Petaluma Aqueduct 13
Deliveries and Revenue - Sonoma Aqueduct 14
Agency O&M Fund
Agency Fund Cash Summary 15-18
Major Services and Supplies Expenditure Items 19
Equipment Maintenance, Contracts, Consulting Services 20-21 Contract Services & Contributions Project Information 22-25 Subfunds
Water Management Subfund 26
Watershed Planning and Restoration Subfund 27-28
Recycled Water and Local Supply Subfund 29-30
Water Conservation Subfund 31-32
Subfund Contract Services 33-35
Facilities and Other Funds
Santa Rosa Aqueduct Capital Fund 36-37
Petaluma Aqueduct Capital Fund 38-39
Sonoma Aqueduct Capital Fund 40
Storage Facilities Cash Summary 41-42
Common Facilities Cash Summary 43-44
North Marin Water Deposit Fund 45
Bonds and Loans
State Revolving Loan Debt Service Fund 46
State Revolving Loan Reserve Fund 47
Storage Bonds 2015 Cash Summary 48
Common Bonds 2015 Cash Summary 49
Sonoma Bonds 2015 Cash Summary 50
Common Bonds 2019 Cash Summary 51
Sonoma Bonds 2019 Cash Summary 52
Storage Bonds 2022 Cash Summary 53
Common Bonds 2022 Cash Summary 54
Sonoma Bonds 2022 Cash Summary 55
Bond & Loan Charges 56-57
Fund Balances and Operating Transfers 58
DRAFT
Fiscal Year 2024/2025 Prime Contractor Rates Summary
Santa Rosa Petaluma Sonoma
Aqueduct Aqueduct Aqueduct FY23-24
Percent
Change
SR Pet Son
O&M Charge [4.2] 1,015.39 1,015.39 1,015.39 $903.30 $903.30 $903.30 12.41% Water Management Planning Sub-charge [4.13] 0.35 0.35 0.35 $0.00 $0.00 $0.00 N/A Watershed Planning/Restoration Sub-charge [4.14] 40.04 40.04 40.04 $35.96 $35.96 $35.96 11.37% Recycled Water & Local Supply Sub-charge [4.15] 0.00 0.00 0.00 $0.00 $0.00 $0.00 N/A Water Conservation Sub-charge [4.16] 59.55 59.55 59.55 $54.08 $54.08 $54.08 10.11% O&M Charge 1,115.33 1,115.33 1,115.33 $993.34 $993.34 $993.34 12.28% Storage and Common Bond & Loan Charges 162.69 162.69 162.69 $168.75 $168.75 $168.75 -3.59% Sonoma Aqueduct Bond Charge 145.49 $151.68 -4.1%
PRIME CONTRACTORS $1,278.02 $1,278.02 $1,423.51 $1,162.09 $1,162.09 $1,313.77 9.98% Capital Charges - to build fund balance
for future projects 11.00 0.00 34.90 $11.00 $0.00 $34.90 0% PRIME CONTRACTORS 11.00 0.00 34.90 $11.00 $0.00 $34.90 0% TOTAL PRIME CONTRACTORS $1,289.02 $1,278.02 $1,458.41 $1,173.09 $1,162.09 $1,348.67 9.88% Increase from Fiscal Year 2023/2024 9.88% 9.98% 8.14% 21.32% 20.18% 21.81% With No Capital Charge 8.94% 9.98% 5.55%
Deliveries:
12-month 36-month
FY14-15 46,000
FY15-16 50,590
FY16-17 40,524
FY17-18 41,446
FY18-19 41,768
FY19-20 43,870
FY20-21 43,707
FY21-22 46,095
FY22-23 45,748
FY23-24 41,847
FY24-25 42,826
CHARGE PER ACRE FOOT:
2/29/2024
DRAFT 1
Fiscal Year 2024/2025 Prime Contractor Rates Summary
CHARGE PER ACRE FOOT:

Petaluma AQ

NMWD NMWD
Percent
Change
FY24-25 FY23-24
O&M Charge [4.2] 1,015.39 $903.30 12.41%
Water Management Planning Sub-charge [4.13] 0.35 $0.00 N/A Watershed Planning/Restoration Sub-charge [4.14] 40.04 $35.96 11.37% Recycled Water & Local Supply Sub-charge [4.15] 0.00 $0.00 N/A Water Conservation Sub-charge [4.16] 59.55 $54.08 10.11% O&M Charge 1,115.33 $993.34 12.28%
North Marin Bond & Loan Charge [4.9] 90.54 $93.16 -2.81% Russian River Conservation Charge [4.18 (a)] 159.28 $137.33 15.98% Russian River Projects Charge [4.18 (b)] 20.00 $15.79 26.69% TOTAL NMWD $1,385.15 $1,239.61 11.74%
Rates Rate Increase
Town of Windsor $1,289.02 9.88%
Town of Windsor (Diverted Water) $99.94 11.00%
NMWD 1,385.15 11.74%
MMWD $1,610.09 10.64%
2/29/2024
DRAFT 2
SANTA
ROSA

AQUEDUCT
% INCR.
(DECR.)

PETALUMA

AQUEDUCT
% INCR.
(DECR.)
SONOMA

AQUEDUCT
% INCR.
(DECR.)
2024 - 2025 1289.02 9.88% 1278.02 9.98% 1458.41 8.14%
2023 - 2024 1173.09 10.56% 1162.09 9.42% 1348.67 10.56% 2022 - 2023 1061.04 6.05% 1062.04 6.15% 1219.90 6.52%
2021 - 2022 1000.46 3.47% 1000.46 3.47% 1145.18 3.43%
2020 - 2021 966.95 5.30% 966.95 5.30% 1107.21 5.57%
2019 - 2020 918.30 4.60% 918.30 4.60% 1048.80 4.77%
2018 - 2019 877.88 3.67% 877.88 3.67% 1001.06 5.98%
2017 - 2018 846.78 4.98% 846.78 4.98% 944.56 5.58%
2016 - 2017 806.59 5.98% 806.59 5.98% 894.62 6.94%
2015 - 2016 761.05 4.16% 761.05 4.16% 836.55 5.46%
2014 - 2015 730.68 3.60% 730.68 3.60% 793.24 3.19%
2013 - 2014 705.30 4.95% 705.30 4.95% 768.75 3.84%
2012 - 2013 672.03 5.98% 672.03 5.98% 740.34 5.26%
2011 - 2012 634.11 5.00% 634.11 5.00% 703.33 4.28%
2010 - 2011 603.92 6.93% 603.92 6.93% 674.47 8.42%
2009 - 2010 564.78 19.88% 564.78 10.50% 622.11 27.95%
2008 - 2009 471.13 6.66% 511.13 10.71% 486.22 7.22%
2007 - 2008 441.70 2.41% 461.70 2.31% 453.49 2.46%
2006 - 2007 431.29 4.51% 451.29 4.30% 442.60 4.26%
2005 - 2006 412.68 2.53% 432.68 2.41% 424.53 2.44%
2004 - 2005 402.51 2.19% 422.51 2.08% 414.42 1.59%

WATER TRANSMISSION SYSTEM
FY24-25 WATER CHARGES PER ACRE-FOOT

FOR PRIME CONTRACTORS
FISCAL
YEAR
DRAFT
A-2 2/29/2024
3 FY24-25 FY23-24 FY24-25
WATER CUSTOMER Budgeted Water
Use (Acre-Feet)
Rate
$/Acre-Foot
Proposed Rate
$/Acre-Foot Dollar Change Percent Change
Santa Rosa Aqueduct 15,554 $1,173.09 $1,289.02 $115.93 9.88% Petaluma Aqueduct 8,726 1,162.09 1,278.02 $115.93 9.98% Sonoma Aqueduct 3,521 1,348.67 1,458.41 $109.74 8.14%
North Marin Water District 5,436 1,239.61 1,385.15 $145.54 11.74% Marin Municipal – Fourth
Off Peak 4,300 1,455.24 1,610.09 $154.85 10.64%
Marin Municipal –
Supplemental 3,405 1,455.24 1,610.09 $154.85 10.64%
Forestville Aqueduct 357 1,173.09 1,289.02 $115.93 9.88% Wholesale/Municipal 944 1,618.39 1750.084 $131.69 8.14% Surplus 48 1,192.01 1,338.40 $146.39 12.28%
Windsor 534 1,173.09 1,289.02 $115.93 9.88%
TOTAL 42,826

WATER TRANSMISSION SYSTEM
FY24-25 REVENUE SUMMARY CHART
DRAFT
2/29/2024
4 [x] ESTIMATED [ ] OFFICIAL CHARGE PER ACRE FOOT:

Santa Rosa Petaluma Sonoma
Aqueduct Aqueduct Aqueduct

PRIME CONTRACTORS
O&M Charge [4.2] $1,015.39 $1,015.39 $1,015.39
Water Management Planning Sub-charge [4.13] $0.35 $0.35 $0.35 Watershed Planning/Restoration Sub-charge [4.14] $40.04 $40.04 $40.04 Recycled Water & Local Supply Sub-charge [4.15] $0.00 $0.00 $0.00 Water Conservation Sub-charge [4.16] $59.55 $59.55 $59.55 O&M Charge $1,115.33 $1,115.33 $1,115.33
Bond & Loan Charges - to pay for existing debt service
Storage Facilities Capital Charge [4.7] 31.47 31.47 31.47 Common Facilities Capital Charge [4.8] 131.22 131.22 131.22 Sonoma Aqueduct Facilities Capital Charges [4.6 b] 145.49 Total Bond & Loan Charges $162.69 $162.69 $308.18
Discretionary:

Aqueduct Capital Charges - to build fund balance for future projects Aqueduct Facilities Capital Charges [4.6 e] 11.00 0.00 34.90 LRT2 - included in Recycled Water & Local Supply Sub-Charge above.

TOTAL PRIME CONTRACTORS $1,289.02 $1,278.02 $1,458.41
Charge without LRT2 and voluntary AQ Capital Charge $1,278.02 $1,278.02 $1,423.51

OTHER AGENCY CUSTOMERS/WHOLESALE CHARGES
(WATER CO’S & PUBLIC AGENCIES)
O&M Charge $1,115.33 $1,115.33 $1,115.33
Capital Charges 162.69 162.69 308.18
Aqueduct Facilities Capital Charge [4.12] $472.06 $472.06 $326.57 TOTAL OTHER AGENCY CUSTOMERS/WHOLESALE CHARGES (4.12) $1,750.08 $1,750.08 $1,750.08 (120% OF HIGHEST PRIME)

FORESTVILLE
O&M Charge [4.2] * $1,015.39
Water Management Planning Sub-charge [4.13] 0.35
Watershed Planning/Restoration Sub-charge [4.14] 40.04
Recycled Water & Local Supply Sub-charge [4.15] -
Water Conservation Sub-charge [4.16] 59.55
O&M Charge $1,115.33
Bond & Loan Charges - to pay for existing debt service
Aqueduct Facilities Capital Charges [4.6] 11.00
Storage Facilities Capital Charge [4.7] 31.47
Common Facilities Capital Charge [4.8] 131.22
Total Capital Charges $173.69
TOTAL FORESTVILLE $1,289.02
* Forestville Water District was exempt from Santa Rosa Aqueduct sub-charge from FY 06/07 to FY 16/17 [4.12].

NORTH MARIN WATER DISTRICT
O&M Charge $1,115.33 Note: N. Marin pays
North Marin Bond & Loan Charge [4.9] 90.54 bond and loan charge Russian River Conservation Charge [4.18 (a)] 159.28 in lieu of Capital Charge.

Russian River Projects Charge [4.18 (b)] 20.00
TOTAL NORTH MARIN WATER DISTRICT 1,385.15

FOURTH OFF-PEAK (MARIN MUNICIPAL)
Highest Prime on SR and PET AQ x 1.11 $1,430.81
Russian River Conservation Charge 159.28
Russian River Projects Charge 20.00
TOTAL FOURTH OFF-PEAK $1,610.09

SUPPLEMENTAL (MARIN MUNICIPAL)
Highest Prime on SR and PET AQ x 1.11 $1,430.81
Russian River Conservation Charge 159.28
Russian River Projects Charge 20.00
TOTAL SUPPLEMENTAL $1,610.09

SURPLUS
Non-Municipal / Municipal [4.11 (a)] $1,338.40 $1,338.40 $1,338.40 (120% of O&M Charge)
Town of Windsor $1,289.02
$1,289.02
The applicable section of the Restructured Agreement has been indicated in brackets.

Beginning in FY22/23 all water delivered to Town of Windsor is charged at the the Santa Rosa Aqueduct rate [4.17 (a)]. Town of Windsor pays all subcharges [4.13, 4.14, 4.15, and 4.16] on all water they divert from the Russian River using their equipment [4.17 (b)].

SONOMA COUNTY WATER AGENCY RATES FOR WATER DELIVERIES IN FY24-25 DRAFT 5
FY 2024-25 BUDGET

SONOMA COUNTY WATER AGENCY
Operations and Maintenance Rate Computation

O & M REVENUE REQUIREMENT
ESTIMATED FISCAL YEAR EXPENDITURES $63,503,959
LESS:

Depreciation Amortization 7,569,000
Investment Income, Interest on Pooled Cash, Charges for Services 285,142 Power Sales 100,000
PWRPA Pre-paid Expense - FY 08/09 Rate Reduction-One time only "Mandatory Prudent Reserve" charge
Use of Fund Balance
Recycled Water funds (Sub-object 7277) taken from special reserve 0 Transfers Out 10,522,486
REVENUE REQUIREMENT (Net Expenditures) $45,027,331

O & M ACRE FOOT BASE
DELIVERIES: 42,826.4
LESS:

Marin Municipal 7,705.4
Surplus (Irrigation) 47.8
TOTAL BASE DELIVERIES 35,073.2
O & M RATE COMPUTATION:

Rate = Revenue Requirement - (Marin Municipal Deliveries x 1.11 x 0.92568 x Highest Prime Rate on Petaluma or Santa Rosa Aqueduct - Subfunds)
Total Deliveries - Surplus Deliveries - Marin Muni Deliveries = 45,027,331 - (4,300.00 x 1221.79) - (3,405.35 x 1221.79) 42,826.4 - 47.8 - 7,705.4
* = 1,015.39
FY24-25
2/29/2024
DRAFT 6
FY23-24 FY24-25
(Actual) (Proposed) % Change
O&M Charge 903.30 1015.39 12.41%
Water Management Planning Sub-Charge 0.00 0.35 N/A
Watershed Planning/Restoration Sub-Charge 35.96 40.04 11.37% Recycled Water Sub-Charge 0.00 0.00 N/A
Water Conservation Sub-Charge 54.08 59.55 10.11%
Total O&M Charge 993.34 1115.33 12.28%
Santa Rosa Aqueduct Rate
O&M Charge 993.34 1115.33 12.28%
Aqueduct Facilities Capital Charges [4.6 e] 11.00 11.00 0.0% Storage Facilities Capital Charge [4.7] 29.14 31.47 7.98% Common Facilities Capital Charge [4.8] 139.61 131.22 -6.01% TOTAL 1173.09 1289.02 9.88%
Petaluma Aqueduct Rate
O&M Charge 993.34 1115.33 12.28%
Aqueduct Facilities Capital Charges [4.6 e] 0.00 0.00 N/A Storage Facilities Capital Charge [4.7] 29.14 31.47 7.98% Common Facilities Capital Charge [4.8] 139.61 131.22 -6.01% TOTAL 1162.09 1278.02 9.98%
Sonoma Aqueduct Rate
O&M Charge 993.34 1115.33 12.28%
Aqueduct Facilities Capital Charges [4.6 e] 34.90 34.90 0.0% Storage Facilities Capital Charge [4.7] 29.14 31.47 7.98% Common Facilities Capital Charge [4.8] 139.61 131.22 -6.01% Sonoma Aqueduct Facilities Capital Charges 151.68 145.49 -4.08% TOTAL 1348.67 1458.41 8.14%
FY24-25
Proposed Water Rates
2/29/2024
DRAFT 7

SONOMA COUNTY WATER AGENCY

RUSSIAN RIVER CONSERVATION CHARGE COMPUTATION
FISCAL YEAR 2024-25
PROPERTY ASSESSMENT VALUES AS OF FY23-24:

TAX CODE ENTITY SECURED UNSECURED TOTAL VALUE
14000 Forestville Co Water District 542,444,046 3,413,480 $545,857,526 42800 City of Cotati 1,399,056,857 32,178,953 1,431,235,810 43500 City of Petaluma 12,424,566,199 511,958,530 12,936,524,729 43800 City of Rohnert Park 7,183,113,523 179,756,461 7,362,869,984 44500 City of Santa Rosa 29,956,887,027 1,024,563,740 30,981,450,767 45000 City of Sonoma 3,559,377,730 105,785,078 3,665,162,808 N/A Valley of the Moon Water District 4,435,638,466 20,265,437 4,455,903,903 TOTAL $59,501,083,848 $1,877,921,679 $61,379,005,527
Notes:
1 Total value of secured and unsecured property in service areas of Prime Water Contractors of Sonoma County (see above) $61,379,005,527 2 2016-17 Sonoma County tax rate per $100 of full cash value assessed for payment of Warm Springs Dam Project Obligations 0.007 3 Total tax levied on citizens residing in service areas of Prime Water Contractors of Sonoma County, i.e., (Line 1/100) x Line 2 $4,296,530
4 Total acre feet of water delivered to Prime Water Contractors of Sonoma County (excluding North Marin and Town of Windsor) plus deliveries to Forestville 26,975.13 during the prior 12 month period ending March 31.
5 Total Russian River Conservation Charge per Acre Foot (Line 3 / Line 4) $159.28 Russian River Projects Charge RR Conservation Charge
Historical calculations Historical calculations
For FY Calculated Actual Charge
06-07 17.02 $17.02 $48.33
07-08 21.4 $20.00 $52.70
08-09 25.08 $20.00 $58.44
09-10 24.68 $20.00 $57.70
10-11 24.4 $20.00 $74.62
11-12 23.44 $20.00 $72.27
12-13 20.38 $20.00 $72.08
13-14 14.72 $14.72 $63.30
14-15 8.72 $8.72 $63.90
15-16 12.39 $12.39 $69.38
16-17 12.96 $12.96 $78.73
17-18 13.08 $13.08 $105.78
18-19 9.13 $9.13 $109.75
19-20 8.34 $8.34 $102.09
20-21 8.68 $8.68 $106.12
21-22 10.63 $10.63 $115.94
22-23 13.92 $13.92 $115.36
23-24 15.79 $15.79 $137.33
24-25 20.37 $20.00 $159.28
2/29/2024
DRAFT 8

SCHEDULE OF WATER DELIVERIES BY AQUEDUCT
PAST 36 MONTHS / 12 MONTHS AVERAGE
DELIVERING AQUEDUCT Monthly
Santa Rosa Petaluma Forestville Sonoma Total
36 Jan-21 1,341.2 2,161.8 25.8 251.8 3,780.6
35 Feb-21 1,137.9 1,750.8 20.3 176.2 3,085.1
34 Mar-21 1,066.4 2,050.6 21.7 170.9 3,309.6
33 Apr-21 1,617.8 3,025.1 36.1 373.9 5,052.9
32 May-21 1,402.9 2,533.3 40.4 388.6 4,365.2
31 Jun-21 1,450.2 2,468.5 40.2 421.5 4,380.3
30 Jul-21 1,863.3 2,297.6 51.0 466.7 4,678.6
29 Aug-21 1,507.9 1,705.1 39.5 315.6 3,568.1
28 Sep-21 1,455.3 1,654.3 36.8 298.1 3,444.4
27 Oct-21 1,514.3 1,842.1 36.7 306.9 3,700.0
26 Nov-21 968.6 1,552.0 17.4 215.8 2,753.9
25 Dec-21 1,228.0 2,149.4 23.5 268.1 3,669.0
24 Jan-22 1073.2 1423.2 18.6 205.2 2,720.2
23 Feb-22 1041.5 1861.2 20.0 195.4 3,118.1
22 Mar-22 1227.5 2175.2 26.0 237.7 3,666.4
21 Apr-22 1233.9 2107.2 24.0 250.7 3,615.8
20 May-22 1649.3 2923.1 33.1 378.7 4,984.0
19 Jun-22 1448.3 2456.3 33.3 380.6 4,318.5
18 Jul-22 1415.9 1538.8 34.9 358.4 3,348.0
17 Aug-22 1752.9 1762.2 44.6 382.9 3,942.7
16 Sep-22 1459.2 1453.6 35.2 277.2 3,225.2
15 Oct-22 1430.9 1549.8 30.9 274.3 3,285.8
14 Nov-22 1132.2 1427.5 23.3 231.8 2,814.8
13 Dec-22 1091.1 1487.9 18.5 210.2 2,807.7
12 Jan-23 1111.4 1374.6 24.5 240.3 2,750.7
11 Feb-23 976.6 1058.4 18.4 171.8 2,225.2
10 Mar-23 1055.7 946.1 19.2 147.2 2,168.1
9 Apr-23 872.7 665.8 20.7 166.8 1,726.0
8 May-23 1388.0 1896.0 30.3 328.2 3,642.6
7 Jun-23 1413.1 2301.5 31.4 348.8 4,094.8
6 Jul-23 1853.3 2813.1 42.0 456.0 5,164.4
5 Aug-23 1832.4 2669.5 42.4 452.9 4,997.1
4 Sep-23 1552.3 2229.6 34.3 427.0 4,243.2
3 Oct-23 1600.8 2423.0 33.1 410.8 4,467.7
2 Nov-23 1201.5 1505.0 25.3 225.0 2,956.7
1 Dec-23 1039.9 1196.3 19.2 152.3 2,407.7
Total Deliveries 48,407.4 68,435.2 1,072.4 10,564.2 128,479.3 3-Year Annual Average 16,135.8 22,811.7 357.5 3,521.4 42,826.4 Past 12 Months 15,897.7 21,078.8 340.8 3,527.1 40,844.4 Total Deliveries 48,407.4 68,435.2 1,072.4 10,564.2 128,479.3 Less: North Marin 16,308.2 16,308.2
Marin Municipal 23,116.1 23,116.1
Sonoma Co. Deliveries 48,407.4 29,011.0 1,072.4 10,564.2 89,055.1 3-Year Annual Average 16,135.8 9,670.3 357.5 3,521.4 29,685.0 2/29/2024
DRAFT 9

SONOMA COUNTY WATER AGENCY SONOMA COUNTY WATER AGENCY
SCHEDULE OF ACTUAL PRIOR 12 MONTHS WATER DELIVERIES IN ACRE FEET (BY CUSTOMER TYPE) ACTUAL WATER DELIVERY DISTRIBUTION BY AQUEDUCT (ACRE FEET) JANUARY THROUGH DECEMBER PRIOR 12 MONTHS
Aqueduct * * * * DELIVERING AQUEDUCT * * * *
No. Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 TOTAL Santa Rosa Petaluma Sonoma TOTAL PRIMES DELIVERED TO:
1 City of Santa Rosa 1,068.0 940.8 1,002.8 799.8 1,319.5 1,324.0 1,754.5 1,734.8 1,467.7 1,516.3 1,140.3 990.4 15,058.9 2 City of Petaluma 454.7 382.1 386.4 406.2 668.5 631.1 793.7 786.4 677.6 722.7 512.8 411.2 6,833.4 CITY OF SANTA ROSA (A) 2 North Marin Water Dist. 371.8 322.6 222.7 73.9 217.8 287.8 480.2 407.0 286.0 286.2 380.1 336.9 3,673.2 Jan 2023 882.0 0.0 186.1 1,068.0 2 City of Rohnert Park 166.2 143.5 163.7 138.4 211.9 254.2 291.3 250.4 213.3 210.4 168.8 133.8 2,345.9 Feb 2023 783.6 0.0 157.2 940.8 2 City of Cotati 29.7 24.0 23.9 26.5 53.3 50.9 62.6 63.0 38.8 66.3 30.5 22.5 492.0 Mar 2023 839.3 0.0 163.6 1,002.8 1 Town of Windsor 26.1 22.6 44.4 66.3 54.8 54.8 49.5 49.3 48.5 40.8 39.1 37.9 534.0 Apr 2023 671.6 0.0 128.2 799.8 4 City of Sonoma 99.7 85.5 82.6 100.2 180.5 181.1 230.6 219.5 189.0 159.8 83.6 65.1 1,677.2 May 2023 1,061.4 0.0 258.1 1,319.5 4 Valley of the Moon Dist. 130.9 76.0 56.3 58.2 127.3 155.8 208.7 211.4 217.9 232.3 125.4 74.1 1,674.3 Jun 2023 1,180.1 0.0 143.9 1,324.0 TOTAL PRIMES 2,347.2 1,997.1 1,982.9 1,669.4 2,833.7 2,939.6 3,871.1 3,721.8 3,138.7 3,234.9 2,480.6 2,072.0 32,289.0 Jul 2023 1,629.1 0.0 125.4 1,754.5 Aug 2023 1,425.5 0.0 309.3 1,734.8
OTHER AGENCY CUSTOMERS Sep 2023 1,208.8 0.0 258.9 1,467.7 1 Cal-American Water 16.2 12.9 7.9 6.1 12.7 32.7 42.5 42.1 31.9 37.4 17.1 10.9 270.6 Oct 2023 1,213.2 0.0 303.1 1,516.3 2 Penngrove Water Co 11.0 9.4 10.3 11.0 17.8 16.9 20.7 21.0 16.6 17.2 13.7 9.5 175.1 Nov 2023 957.1 0.0 183.2 1,140.3 4 Lawndale Mutual 1.5 1.7 1.2 1.7 3.8 3.8 5.6 5.6 4.9 5.0 7.3 2.7 44.9 Dec 2023 836.1 0.0 154.3 990.4 4 Kenwood Village Water Co 0.6 0.6 0.7 0.8 0.8 0.7 0.9 0.9 0.9 1.2 0.9 1.4 10.6 TOTAL SANTA ROSA 12,687.7 0.0 2,371.2 15,058.9 3 Forestville Co Water Dist. 24.5 18.4 19.2 20.7 30.3 31.4 42.0 42.4 34.3 33.1 25.3 19.2 340.8 1 Other Gov-Santa Rosa Aq 1.0 0.3 0.6 0.6 0.9 0.7 1.0 0.8 0.7 0.9 0.7 0.7 8.8 OTHER PRIME CONTRACTORS (B) 2 Other Gov-Petaluma Aq 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 CITY OF PETALUMA 0.0 6,833.4 6,833.4 4 Other Gov-Sonoma Aq 5.8 6.8 4.8 4.6 5.8 4.7 6.7 10.9 10.9 9.9 5.6 7.5 84.0 NORTH MARIN WATER DISTRICT 3,673.2 3,673.2 TOTAL OTHER AGY. CUST 60.6 50.0 44.8 45.5 72.0 91.0 119.5 123.8 100.3 104.7 70.6 51.9 934.8 CITY OF ROHNERT PARK 91.5 2,254.4 2,345.9 CITY OF COTATI 3.7 488.2 492.0
OFF-PEAK CUSTOMERS TOWN OF WINDSOR 534.0 534.0
2 Marin Municipal 341.3 176.8 139.0 9.8 726.7 1,060.6 1,164.6 1,141.6 997.4 1,120.1 399.0 282.3 7,559.3 CITY OF SONOMA 1,677.2 1,677.2 VALLEY OF THE MOON DISTRICT 1,674.3 1,674.3
SURPLUS CUSTOMERS TOTAL OTHER PRIME CONTRACTORS 629.3 13,249.2 3,351.6 17,230.1 1 Irrigation-Santa Rosa Aq 0.0 0.0 0.0 0.0 0.1 1.0 5.7 5.3 3.5 5.4 4.3 0.0 25.3 2 Irrigation-Petaluma Aq 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 TOTAL DELIVERIES TO PRIMES 13,317.0 13,249.2 5,722.8 32,289.0 4 Irrigation-Sonoma Aq 1.6 1.3 1.5 1.3 10.1 2.5 3.5 4.5 3.4 2.6 2.2 1.5 36.0 TOTAL SURPLUS CUST. 1.6 1.3 1.5 1.3 10.1 3.5 9.2 9.8 6.9 8.0 6.5 1.5 61.3 LESS: NORTH MARIN (3,673.2) (3,673.2) TOTAL DELIVERIES 2,750.7 2,225.2 2,168.1 1,726.0 3,642.6 4,094.8 5,164.4 4,997.1 4,243.2 4,467.7 2,956.7 2,407.7 40,844.4 TOTAL SONOMA COUNTY DELIVERIES 13,317.0 9,576.0 5,722.8 28,615.8 2/29/2024
DRAFT 10
FY 2024-25 BUDGET
Water Transmission System Agency Fund
ESTIMATED WATER DELIVERIES AND WATER SALES - O&M plus Surcharges

ESTIMATED