4 - Draft FY25-26_WT Budget Package_20250226_TAC — Cotati City Council, March 11, 2025

March 3, 2025 TAC Meeting
Water Transmission FY 2025/2026 Draft Budget and Rates Agenda Item 4 Sonoma Water
Sonoma Water is a wholesale water supplier to nine cities and water districts that serve more than 600,000 residents in portions of Sonoma and Marin counties. The Russian River provides most of Sonoma Water's water supply with groundwater supply from the Santa Rosa Plain as a secondary source.

Under agreements with the U.S. Army Corps of Engineers, Sonoma Water manages the water supply storage in Lake Mendocino and Lake Sonoma to provide a reliable water supply and maintain minimum instream flow requirements for fish and wildlife protection and recreation in the Russian River and Dry Creek. Sonoma Water holds water-right permits issued by the State Water Resources Control Board that authorize Sonoma Water to store up to 122,500 acre-feet per year of water in Lake Mendocino and up to 245,000 acre-feet/year of water in Lake Sonoma.

The primary points of Sonoma Water's diversion facilities near Forestville include six radial collector wells that extract Russian River underflow that has been filtered through approximately 100 feet of natural sand and gravel. This highly efficient, natural filtration process, with chlorination treatment, produces high-quality, potable water. This water is then fed directly into Sonoma Water's aqueduct system.

The Water Transmission System extends from Sonoma Water's Russian River diversion facilities located near Forestville to the Santa Rosa, Petaluma, and Sonoma valleys. The Water Transmission System consists of over 85 miles of pipelines, seven booster-pump stations, and 18 storage tanks with a combined storage capacity of 128.8 million gallons. The major pipelines that comprise the system and range in diameter from 16 to 54 inches are:
the Santa Rosa Aqueduct (built in 1959), the Sonoma Aqueduct (built in 1963), the Petaluma Aqueduct (built in 1962), and the Cotati Intertie (built in 1977).

Sonoma Water remains dedicated to serving our communities and securing our future through responsible resource and environmental stewardship, continued technical innovation, investment in critical infrastructure and effective fiscal management. A few highlights of programs and projects that Sonoma Water accomplishes in collaboration with the water contractors and other partners that benefit the community are summarized below.

More information can be found on Sonoma Water's website at: https://www.sonomawater.org.

Santa Rosa Plain Water Supply Resiliency: Reactivate three Santa Rosa Plain Wells, utilizing $6.9 million in Department of Water Resources grant funding for two of the wells, and implement Aquifer Storage and Recovery for additional water supply reliability and alleviate drought impacts to the water contractors and their customers.
• Regional Water Supply Resiliency: Sonoma Water has worked collaboratively with the water contractors to improve the region's water supply reliability during periods of water supply shortage due to drought, seismic, and other hazard events. Using Sonoma Water's transmission system as the backbone, Sonoma Water will pursue development of a Regional Water Bank Implementation Strategy to integrate the most significant regional water storage facilities (Lake Sonoma, groundwater basins, Lake Stafford, and Marin Water reservoirs).
• Hazard Mitigation: Sonoma Water and its water contractors have invested substantially in efforts to protect water supply infrastructure with continued emphasis on implementing high priority seismic and flood hazard mitigation projects.
• Sonoma-Marin Saving Water Partnership (SMSWP): Sonoma Water is administering a $4 million regional drought resiliency program with a $2 million United States Bureau of Reclamation grant that is being passed through to the water contractors to implement critical drought resiliency programs.

Sonoma Water Draft 2/26/2025
• Water, Stormwater, and Energy Education Program: Sonoma Water collaborates with the SMSWP and Sonoma Clean Power to bring its education program annually to more than 16,000 local students. • Dry Creek Habitat Enhancement: Sonoma Water, the water contractors, and the U.S. Army Corps have completed 5 miles of restoration to date. The U.S. Army Corps agreement with Sonoma Water provides a 65 percent cost share to complete fishery habitat restoration work in Dry Creek.

Sonoma Water leverages partnerships to implement programs funded from other sources that also benefit the water contractors and the community they serve:
• Quagga Mussels: Sonoma Water collaborates with the U.S. Army Corps of Engineers, the California Department of Fish and Wildlife, and the California Department of Boating and Waterways on a boat inspection strategy to prevent invasive mussel infestations in Lake Mendocino and Lake Sonoma. • Forecast Informed Reservoir Operations (FIRO): FIRO is an ongoing collaborative program with Sonoma Water, the U.S. Army Corps of Engineers, and a multi-agency steering committee that began in 2012.

FIRO is a flexible water management approach that uses data from watershed monitoring and improved weather forecasting to help water managers selectively retain or release water from reservoirs for increased resilience to droughts and floods.
• San Francisco Bay Advanced Quantitative Precipitation Information System (AQPI): A $20 million grant from the Department of Water Resources was awarded to Sonoma Water and its partners to install four X-Band radars in the Bay Area to provide improved precipitation and hydrologic information to water agencies, flood control managers, and emergency personnel. The radar data will result in improved management of water supply reservoirs, and improved operations of wastewater systems and flood protection facilities.

Infrastructure Investments
The draft FY 2025/2026 Water Transmission Budget supports Sonoma Water's five-year strategic plan by continuing investments to upgrade aging infrastructure and systems. Sonoma Water's critical water infrastructure, including aqueducts, pipelines, pump stations, storage tanks, and wells supply essential water to all water contractors and ultimately 600,000 residents in Sonoma and Marin county. Undervaluing the actual costs to operate, maintain, and improve this system could jeopardize this essential service with drastic consequences given our role as a wholesaler. Our critical infrastructure is gradually aging after decades of reliable service. A significant portion of it is approaching the end of its useful lifespan. Sonoma Water is currently developing an Asset Management Program. Preliminary assessments of the water production/transmission systems indicate that a large portion is in less than acceptable (i.e. fair, poor, or failed) condition. The age of the infrastructure, current condition of assets, combined with substantial levels of deferred maintenance, underscores the importance of making investments to guarantee a reliable water source for more than 600,000 residents in portions of Sonoma and Marin counties. Furthermore, Sonoma Water is also currently working to prepare a 20-year Comprehensive Water Master Plan on the water production/transmission system. The assessment data collected under the Asset Management Program will be incorporated, along with recommendations of other current seismic and regional resilience planning efforts, into the 20-year Comprehensive Water Master Plan.

Sonoma Water, our water retailers, and the industry at-large are facing very similar challenges: aging infrastructure, rising operating and maintenance costs, water usage fluctuations resulting in lower revenues, etc.

These challenges drive rate increases which have a financial impact on end users but are necessary to upgrade infrastructure and ensure reliable service. Similar to the water contractors, Sonoma Water has deferred maintenance and capital projects in an effort to keep water rate increases as low as possible, while providing clean, reliable, essential water for the benefit of the water contractors and the 600,000 customers they serve every day. As presented, the draft budget does not address the full needs of maintenance and improvements for the water transmission system but allows significant progress toward that goal. There will continue to be pressure on rates in the coming years as additional infrastructure investments are required to fully meet the needs of the system. In this budget, Sonoma Water has cut and deferred more than $16.69 million in O&M, subfund, and capital projects from the FY 2025/2026 budget and $87.93 million in additional capital project Sonoma Water ii Draft 2/26/2025
costs that would occur in the 3-year required time frame for expending revenue bonds to finance improvements resulting in rate increases of nearly 40 percent, to the proposed rates within this package (7.60% for Sonoma Aqueduct/8.68% for Santa Rosa Aqueduct/10.76% for Petaluma Aqueduct).

Sonoma Water works diligently to secure alternate funding and utilize cost effective financing mechanisms to moderate rate increases. Sonoma Water has been successful in securing grants from various sources and has utilized fund balances and bond proceeds in this effort. In fact, Sonoma Water's wholesale rates (the rates tha re charged to water contractors) continue to be among the lowest in the greater Bay Area. Future proposed udgets will continue to prioritize ongoing infrastructure maintenance, replacement, and improvement to ensure a sustainable source of water for the benefit of the communities served This draft FY 2025/2026 Water Transmission Budget has been developed based on the 36-month average water deliveries of 42,407 Acre-Feet (AF) and is shown below.

FY24-25 FY25-26
Budget Budget Change
(in Millions) | (in Millions) (in Millions)
Operations and Maintenance $45.41 $45.87 $0.46
Capital Projects $15.66 $18.28 $2.62
Biological Opinion Compliance, Water $7.53 $8.80 $1.27
Supply Planning, Water Conservation
Debt Service $5.83 $9.07 $3.25
Totals $74.43 $82.02 $7.60
Grants, Use of Fund Balance, and Bond $18.13 $21.22 $3.09 Proceeds
Sonoma Water Draft 2/26/2025
Budget and Rate Reduction Measures:
• Reduced rate increase from 10.67% to 8.68% (Santa Rosa Aqueduct), 11.97% to 10.76% (Petaluma Aqueduct) and 9.37% to 7.60% (Sonoma Aqueduct).

Changes made since January 17, 2025 Draft Water Transmission Budget:
• Reduced O&M contract services by an additional $871,000 by deferring the Collector Capacity Study, and portions of the Natural Hazard reliability study, Wohler-Mirabel Flood Resilience Alternatives Evaluation, Transmission System Condition Assessments, and the Tank Recoating Program. The consequences of reducing the tank recoat program budget are that for the subsequent two fiscal years (FY 2026/2027 and FY 2027/2028), 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 up to an additional 3% increase in rates each year just from the tank recoat program. Note that we also deferred Tank recoat costs in the prior year's budget as a rate reduction measure. The additional funding for the tank recoat program has been included in the budget to smooth rates over the 10-year tank recoat program. • Reduced Watershed Planning/Restoration contract services by $100,000 for the Dry Creek Habitat Enhancement - Phase 4.
• Reduced Common Facilities FY25/26 budget request by $1.5 million by deferring design costs for the Water Treatment System Modernization - Phase 2 and deferring project construction of the Collector 3 and 5 Liquefaction Mitigation to FY28/29.

Incorporated additional revenue of $860,854 tied to the Warm Springs Dam Hydropower Retrofit Project for FY24/25 in Common Facilities. This revenue reflects a new request for reimbursement from the Power and Water Resources Pooling Authority Cap-and-Trade Program. It has a dollar-for-dollar reduction on the amount of bond funding needed in Common Facilities over the 3-year bond window. • Revised bond and loan charges: a) updated debt service figures; b) Common Bond Charges are decreasing due to removal of costs tied to the Water Treatment System Modernization - Phase 2 Project, Collector 3 and 5 Liquefaction Mitigation Project, and factoring in the additional revenue to reimburse costs for the Warm Springs Dam Hydropower Retrofit Project. • Updated Exhibit A to reflect changes noted above and to fix typographical errors in the amount of reductions from the Tank Recoating Program and Ely BPS Flood Control and Electrical Upgrade Project. • Fixed sum error in calculation of rate for Water Management Planning. This resulted in an additional $20,000 in expenses, increasing the rate by $0.47 A/F.
• Various other typographical or sum errors not affecting the rate.

Changes made since February 24, 2025 Draft Water Transmission Budget:
• Increased the discretionary Petaluma Aqueduct Capital Charge from $0 to $10/AF at the request of the contractors served from the Aqueduct and updated figures throughout book to reflect this change. • Other typographical fixes not affecting the rate.

FY 2025/2026 Draft Budget Financial Summary compared to FY 2024/2025 Adopted Budget: Factors affecting the rate increase:

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 Sonoma Water iv Draft 2/26/2025
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.

Deliveries remain low by historical standards and trends show negative or flat growth both in the near and long term. Sonoma Water's rate is fully volumetric meaning that lower deliveries drive rates higher. Year-to-year differences in budgeted deliveries averaged over the 3-, 5-, and 10-year periods have been negative, even when including the deviation proposed and approved in FY 2024/2025 to use the higher of the delivery numbers. Year- to-year differences in actual deliveries inherently have more variability but have also shown flat growth when averaged over the 3-, 5-, and 10-year periods.

Difference in Year-to-Year Budgeted Difference in Year-to-Year Actual Deliveries Deliveries
3-year 5-year 10-year 3-year 5-year 10-year
average average average average average average
-2.31% -0.37% -0.37% 1.30% 0.56% 0.44%
Water Deliveries - Budget to Actual
70,000
65,000
60,000
55,000
Acre-Feet
50,000
45,000
40,000
35,000
FY08-09 FY09-10 FY10-11 FY11-12 1712-13 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 FY18-19 FY19-20 FY20-21 FY21-22 FY22-23 FY23-24 Fiscal Year
—Budget -Actuals
* 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. FY22-23 was an historic low at 36,032 AF.

Multiple years of drought and mandated conservation measures resulted in low water deliveries, low water sales revenue, and significantly reduced fund balance reserves. The FY budgeted deliveries of 42,407 AF represent a 1% decrease (419 AF) from the FY 2024/2025 budget, and the combination of low reserves, increasing operations and maintenance costs to keep pace with critically needed infrastructure improvements, and capital projects to replace aging infrastructure, has contributed to needed rate increases.

Sources of revenue including water sales and charges for services, federal and state grants, existing fund balances, contributions, interest, and bond financing are detailed below:

Sonoma Water Draft 2/26/2025
FY 2025/2026 Increase/(Decrease)
Revenues Draft Budget over FY 2024/2025
Water Sales & Charges for Services $61,064,924 8.4%
Operating Grants 73,000 (93%)
Capital Grants 0%
Contributions 593,870 97.3%
Interest & Investment Earnings 1,091,434 (.8%)
TOTAL $62,823,228 6.9%
*Operating Grant decrease associated with $1 million Sonoma Marin Drought Resiliency USB WEEG Grant. Grant budgeted in FY24/25. This is a multi-year project and projec revenues/expenses will be rolled forward into the adjusted budget. *Contributions include TOW diverted revenue and WUE Passthroughs including the new $250,000 Spatial Analysis Project which is rate neutral. Without spatial analysis the increase would be

15.7%.

FY 2025/2026 Increase/(Decrease)
Fund Balance Draft Budget over FY 2024/2025
Use of Fund Balance: 34% from Operating
Funds; 66% from Capital Funds $ 7,932,963 (25%)
FY 2025/2026 Increase/(Decrease)
Bond Funds Draft Budget over FY 2024/2025
Use of Bond Funds (FY 2025/2026: issuing
$32.96 million in revenue bonds) $ 13,215,000 105%
Budget Requirements:
: Maintain 3-menth 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.

Significant efforts have been made to cut and defer more than $16.69 million in 0&M, subfund, and capital projects from the FY 2025/2026 budget and $87.93 million in additional capital project costs that would occur in the 3-year required time frame for expending revenue bonds (see Exhibit A). The proposed rate increases are

7.60% to 10.76% for prime contractors served from the three aqueducts. See page xi which also includes rates for Town of Windsor, NMWD, and MMWD. 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 to address maintenance and capital needs.

Operations and Maintenance (0&M)
• 8.4% increase in water sales revenue due to a decrease in deliveries and the rate needed to cover budgeted expenditures.
• 1.0% increase in budgeted expenditures. Budgeted expenditures increase is mostly attributable to cost increases for maintenance equipment, equipment rentals and leases, SCADA system contributions, Sonoma Water vi Draft 2/26/2025
utilities, and staff labor costs tied to negotiated labor agreements, offset by decreases in other contract services.
• O&M budget has been reduced by $10.04 million by deferring maintenance costs, studies, and projects.

Included in this amount is a $3.21 million reduction to the Tank Recoat Program and a $3.05 million reduction to the SR AQ Cathodic Protection project. These deferrals could result in rate spikes in future years as the projects cannot be deferred indefinitely. See list of deferrals in Exhibit A. • Deferring maintenance projects reduced the O&M rate increase from more than 21.7% to 1.4%. • Budgeted projects have been thoroughly reviewed and edited and represent the budgeted work that can reasonably occur in FY 2025/2026. Budgeted maintenance projects are a priority, and further delays and cuts pose detrimental operational impact and risk.
• Must have sufficient net operating revenues to meet 1.15x debt coverage bond covenant requirement.

Note that this budget includes a $32.96M bond issuance to fund the capital program. • Water Sales Revenue Shortfall:
• FY2022/2023: $10.2M
• FY 2023/2024: $1.6M
• FY 2024/2025:Currently estimating we will meet budgeted deliveries • FY 2024/2025 expenditures are anticipated to align with the adjusted budget. Unspent budget is rolled forward to subsequent budget years to avoid being included in the rate calculation more than once.

See pages 19-26 for details on major services & supplies, maintenance - equipment, and consulting/contractual services occurring in FY25/26.

Capital Projects
Capital Projects: FY 2025/2026 draft budgeted expenditures of $18.28 million increased by $2.62 million or

16.73%. The capital program is fully funded by grants, bonds, and use of fund balance. See detailed list of capital projects on page xvii.

Capital budget has been reduced by $5.37 million by deferring design of Water Treatment System Modernization - Phase 2, construction awards for Collectors 3 and 5 Liquefaction Mitigation, and the Bennett Valley Fault Crossing Project pending availability of grant funding. Capital budget also reduced by $87.93 million in additional capital project costs that would have occurred in the 3-year required time frame for expending revenue bonds. See list of deferrals in Exhibit A.

Hazard mitigation projects ($8.31 million) and infrastructure improvement projects/drought resiliency projects ($9.97 million) are fully funded by Water Revenue Bonds, Grants, and Fund Balance.

Investing in Infrastructure:

Construction: Hazard Mitigation Projects $8,176,284
Ely BPS Flood Control & Electrical Upgrade 426,440
River Diversion Structure (RDS) Upgrade Project 4,000,000 Seismic Retrofit of Storage Tanks 1,057,177
Wilfred Booster Station 2,692,667
Design: Hazard Mitigation Projects $130,247
Santa Rosa Creek Crossing 130,247
Sonoma Water vii Draft 2/26/2025
Construction: Other Capital Projects $7,259,724
Mirabel Collector Wells Pump Hoist Upgrades 2,431,357
Occidental Road Well 920,949
Ralphine Tanks Flow Thru Conversion 280,540
Sebastopol Road Well 707,215
Todd Rd Well Discharge Connection 597,110
Warm Springs Dam Hydropower Retrofit 2,322,553
Design Other Capital Projects $2,714,165
Kawana-Ralphine SBS Pipeline 767,250
Mirabel/Wohler Storage Building 411,130
Water Treatment System Modernization - Phase 1 526,880
Water Treatment System Modernization - Phase 3 (River Road) 1,008,905 • 9.6% increase in revenue due to a decrease in deliveries and the rate needed to cover budgeted expenditures.
• Subfund budget has been reduced by $1,062,000 by deferring costs. See list of deferrals in Exhibit A. $3.2 million in Use of Fund Balance reduces rate increase from 202.58% to 14.14%. • 14.14% rate increase compared to 11.37% increase in FY 2024/2025 when $1.7 million in Use of Fund Balance was budgeted.
• Expenditures are anticipated to range from $3 million to $4.5 million annually in this subfund. A rate of $45.71/AF at 42,407 AF generates $1.93 million in revenue. There is a need to increase revenue in this fund to cover a greater portion of annual costs as we continue to utilize fund balance to keep the rate low. 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. • See pages 34-36 for list of consulting/contractual services occurring in FY25/26.

Water Conservation
• 14.1% decrease in revenue due to a reduction in anticipated grant revenue partially offset by rate needed to cover budgeted expenditures.

15.11% decrease in expenditures.
• Subfund budget has been reduced by $126,000 by deferring costs. See list of reductions in Exhibit A. • $210,000 in Use of Fund Balance. Reduces rate increase from 15.51% to 7.20%. • FY 2024/2025 Adopted Budget used $250,000 in Fund Balance to reduce the Water Conservation Rate Increase to 10.11%.
• Without the Use of Fund Balance in the FY 2024/2025 Adopted budget, the Water Conservation rate increase would have been 20.90%.
• See pages 34-36 for list of consulting/contractual services occurring in FY25/26.

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, Eco- Friendly Garden Tour, and WaterSmart Plant Label Program. The budget also includes funds to implement a Sonoma Water viii Draft 2/26/2025
spatial analysis project for the Sonoma-Marin Saving Water Partnership that has offsetting revenue contributed outside the subfund rate by participating members.

Water Management Planning and Recycled Water and Local Supply For both of these subfunds, low budgeted expenditures, low rates, and use of fund balance have minimal impact (3.3% and 0.1% respectfully) on the overall rate increase.

Water Management Planning rate is increasing for budget needed for the Annual Water Supply & Demand Assessment and upcoming 2025 Urban Water Management Plan (UWMP). The increase in the rate is to fund a new consultant agreement for these tasks and associated staff time. Sonoma Water used $156,000 in Fund Balance towards this effort. See pages 34-36 for list of consulting/contractual services occurring in FY25/26.

Recycled Water and Local Supply costs have historically been for Sonoma Water's share of the groundwater sustainability agency's contributions. Sonoma Water's share of mandatory fees has been included in the Agency Operating fund since FY 2024/2025. The rate is set to $0.14/AF which covers depreciation expenses incurred in the fund.

Debt Service
Debt Service Expenditures increase by $3.25M or 55.8% resulting from the planned issuance of $32.96M in 2025 Water Revenue Bonds to fund critical infrastructure projects in Petaluma AQ, and Storage and Common capital funds.

Debt service is driving the majority of the rate increase. A list of capital projects that we anticipate funding with revenue bond proceeds in the 3-year required time frame is shown in the Long-Range Financial Plan.

Summary
The draft proposed budget for FY 2025/2026 is based on accomplishing the required elements of the Biological Opinion, maintenance of facilities, continued implementation of hazard mitigation and reliability projects, and projects to maintain, replace, and improve critical infrastructure.

Significant efforts have been made to cut and defer more than $16.69 million in O&M, subfund, and capital projects from the FY 2025/2026 budget and $87.93 million in additional capital project costs that would occur in the 3-year required time frame for expending revenue bonds (see Exhibit A). The proposed rate increases are

7.60% to 10.76% for prime contractors served from the three aqueducts. See page xi which also includes rates for Town of Windsor, NMWD, and MMWD.

Sonoma Water recognizes the profound impact of natural hazards, the remnants of the COVID-19 pandemic, inflationary pressures, and other 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.

Factors affecting the Rate Increase:
• 1.0% decrease in deliveries
• Three years with actual water deliveries at 4%, 21.2%, and 1.2% less than budget. Total budget shortfall over three years is 12,105 AF. This resulted in a $12.8M revenue shortfall over 3 years. • 1.0% increase in O&M costs.
• 16.7% increase in Capital Project costs mostly attributable to capital project construction costs. • 16.9% increase in Subfund costs.

Sonoma Water ix Draft 2/26/2025
• 55.8% increase in debt service tied to 2025 Water Revenue Bond necessary to fund near-term critical capital improvement projects.
• 12.3% of the rate increase is attributable to the O&M budget, 74.9% to capital projects and debt service, and 12.8% to the subfunds (Water Management, Watershed Planning and Restoration, Recycled Water and Local Supply, and Water Conservation).
• Increases in material and equipment costs for aging infrastructure and priority maintenance projects that can no longer be deferred, supply chain disruptions, long lead times on equipment, and the current inflationary environment are putting continued upward pressure on the Water Transmission System Sonoma Water continues to have one of the lowest wholesale water rates in the San Francisco Bay Area. The chart below compares the proposed FY25/26 (if known) rate per AF to the current rates of other wholesale water agencies in the bay area.
$2,400
$2,200
$2,000
$1,800
$1,600
$1,400
$1,200
$1,000
$800
$600
$400
$200
$-
Sonoma County Water Zone 7 Water Agency Valley Water San Francisco Public Utilities Contra Costa Water District Agency Commission
* SFPUC and Valley Water rates for FY25/26 not available and FY24/25 rates are used as a placeholder.

Sonoma Water Draft 2/26/2025
Proposed rates are shown in the table below:

Charge / Aqueduct Santa Rosa | Petaluma | Sonoma
Deliveries (Acre-Feet) 42,407
0&M $1,029.16 $1,029.16 $1,029.16
Water Management Planning $4.57 $4.57 $4.57
Watershed Planning & Restoration $45.71 $45.71 $45.71
Recycled Water and Local Supply $0.14 $0.14 $0.14
Water Conservation $63.83 $63.83 $63.83
Total O&M $1,143.41 $1,143.41 $1,143.41
Storage & Common Bond/Loan Charges $246.45 $246.45 $246.45 Petaluma Aqueduct Bond/Loan Charge $15.66
Sonoma Aqueduct Bond/Loan Charge $144.56
Prime Contractors $1,389.86 $1,405.52 $1,534.42
Discretionary Charges
Capital Charges - to build fund balance for $11.00 $10.00 $34.90 future projects
Total Prime Contractors $1,400.86 $1,415.52 $1,569.32
Total Overall Increase: 8.68% 10.76% 7.60%|
Entity Rate per AF Rate Increase
Town of Windsor $1,400.86 8.68%
Town of Windsor (Diverted Water) $114.26 14.32%
NMWD 1,472.48 6.30%
MMWD $1,740.53 8.79%
• Deliveries: (Budget Packet Pages 9-14):

FY 2022/2023 FY 2022/2023| FY 2023/2024 FY 2023/2024 FY 2024/2025 FY 2025/2026 Budget Actuals Budget Actuals Budget Est. Budget
3-year average 12-months 3-year average 3-year average
45,748 36,032 41,847 41,317 42,826 42,407

21.2% less 1.3% less than
than budget budget
A/F change (9,716) (530)
/ FY 2024/2025 Budgeted Deliveries vs FY 2025/2026 T 1.0% decrease Budgeted Deliveries
Sonoma Water xi Draft 2/26/2025
• Operations and Maintenance (0&M) - Water Transmission O&M Fund (Budget Packet Pages 15-26):
• 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.

Increase
Percent
0&M Fund (Decrease) Description
in Dollars Change
Rate per AF $13.77 1.36% Increase is attributable to increased infrastructure maintenance needs.

Revenue $4,681,000 8.27% Increase in revenue is attributable to the rate increase.

Increase is attributable to cost increases for maintenance equipment, equipment rentals and leases, SCADA system
Expenditures $4,401,000 6.93% contributions, utilities, staff labor costs tied to negotiated labor agreements, and other expenditures increases described below, offset by decreases in contract services. OT also increased due to increase in Petaluma Aqueduct Capital Charge.

Factors affecting the O&M rate:
0&M Fund Increase
Percent
(Decrease) Change Description
Expenditures
in Dollars
Increase is attributable to an increase in labor costs for Labor $1,022,000 5.06% maintenance projects, offset by projects deferred to reduce the rate increase. The majority of this increase is due to negotiated labor rates.

Power demand and costs expected to increase roughly 13%. The Power $553,000 13.00% majority of this increase is associated with increased transmission and distribution costs.

Chemicals ($1,000) -0.06% Costs expected to remain stable after several years of large increases.

Increase associated with expanded sampling and analysis tied to Testing/Analysis $10,000 4.17% the Santa Rosa Plain Wells Projects as well as additional microplastics and Perfluoroalkyl/Polyfluoroalkyl Substances (PFAS) testing.

Contract Services ($2,462,000) -20.46% Decrease attributable to deferring cathodic protection and tank recoats.

Maintenance - Increase attributable to increased costs of the Pump 9 replacement $169,000 6.78% offset by $270,000 in projects that have been deferred to reduce Equipment the rate increase.

Rents and Leases
$175,000 43.75% Increase to align with FY23/24 actuals. - Heavy Eqt
Sonoma Water xii Draft 2/26/2025
Increase
0&M Fund Percent
(Decrease) Description
Expenditures in Dollars Change
Equipment $105,000 crease attributable to increased use of Sonoma Water equipmer

9.55%
Usage Charges implement routine maintenance project
SCADA $354,351 16.17% Increase attributable to water transmission system's share of SCADA maintenance expenses and capital project costs.
perating Transfers (OT's) move revenue generated by rates into Operating espective funds (debt service funds, subfunds, aqueduct capita Transfers $3,946,000 8.00% funds and Common Facilities) and maintain an appropriate fund balance. OT also increased due to increase in Petaluma Aqueduct Capital Charge.
• Subfunds: (Budget Packet Pages 27-36):
• Subfund rates are calculated by dividing subfund expenditures minus grant revenue by budgeted water deliveries.

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 Increase
Percent
Management (Decrease) Description
Planning in Dollars Change
Fiscal Year 2024/2025 rate is $0.35. Fund is for Urban Water Management Plan updates and the Annual Water Supply &
Rate per AF $4.22 1206.1% Demand Assessment. Using $156,000 in fund balance. Rate increase is due to use of fund balance to reduce rates in prior years and work needed to submit the 2025 Urban Water Management Plan.

Increase due to subfund rate increase and decreased interest Revenue $186,000 803.1% earnings offset by use of fund balance. Increasing use of fund balance to smooth rate increases.

Budget increase is due to contract service and staff time related to he Annual Water Supply & Demand Assessment and 2025 Urbar Expenditures $205,000 141.4% Water Management Plan. Low budgeted expenditures, low rates, and use of fund balance have minimal impact (2.7%) on the overall rate increase.

Sonoma Water xili Draft 2/26/2025
• Watershed Planning and Restoration:
• Expenditures are for planning, design, and implementation of watershed restoration projects and projects required under the Biological Opinion.

Watershed Increase
Percent
Planning and (Decrease) in Description
Change
Restoration Dollars
Biological Opinion, and fire fuel reduction offset by the increased Rate per AF $5.66 14.1% use of fund balance. Rate of $121.17/AF based on $5.1M in expenditures and 42,407 AF is reduced to $45.71/AF by using $3.2M in fund balance. In Fiscal Year 2024/2025, $1.7M in fund balance was utilized to offset rate increases.

Increase due to subfund rate increase and higher interest $190,000 9.6% earnings offset by use of fund balance to reduce and smooth Revenue
overall rate increase.

Increase in expenditures for maintenance of Dry Creek Habitat Enhancement Phases 4 and 5, increased efforts for RRIFR Expenditures $1,681,000 48.6% Estuary Management & Monitoring, fire fuel reduction, and required efforts for the new biological opinion.

Sonoma Water xiV Draft 2/26/2025
• 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.

Increase
Recycled Water Percent
(Decrease) Description
and Local Supply in Dollars Change
NA - last Fiscal Year 2024/2025 rate is $0.00. Rate increase of $0.14 for Rate per AF $0.14 FY rate was depreciation.
$0.

Revenue ($2,000) -22.2% Using an estimated $0 in fund balance. Decrease in revenue is associated with decreased expenses in the subfund.

Decrease is due to Sonoma Water's share of Groundwater
Expenditures ($25,000) -80.6% Sustainability Agency mandatory fees moving to the Agency Operating Fund.

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

Increase
Water Percent
(Decrease) Description
Conservation Change
in Dollars
Fiscal Year 2024/2025 rate is $59.55. Rate increase is primarily a as loused i prior ear rize or i A Dated on orie rate
Rate per AF $4.29 7.2% net expenditures and 42,407 AF is reduced to $63.83/AF by using $210,000 in fund balance. In Fiscal Year 2024/2025, net expenditures were $2.8M and $250,000 in fund balance was utilized to offset rate increases.

Decrease due to subfund rate increase offset by lower anticipated Revenue ($539,000) -14.1% grant funding than prior year budget.

Expenditures ($589,000) -15.1%
and address ongoing water conservation needs.

Sonoma Water xV Draft 2/26/2025
• Storage, Common, and Sonoma Bond/Loan Charges: (Budget Packet Pages 48-62):

The rates are calculated by dividing the annual debt service and reserve requirements (2015A, 2019A, 2022A, and anticipated 2025A Water Revenue Bonds) by water deliveries.

Storage and
Increase
Common Percent
Bond/Loan (Decrease) Description
in Dollars Change
Charges
Fiscal Year 2024/2025 rate is $31.47. Rate is based on revenue Storage
Bond/Loan $18.63 59.2%
Charge
water deliveries.

Fiscal Year 2024/2025 rate is $131.22. Rate is based on revenue Common requirement for debt service divided by water deliveries. Total Deb Bond/Loan $65.13 49.6% service higher than previous year due to issuance of 2025 Bonds Charge for capital projects in the Common Fund and decrease in budgeted water deliveries.

Fiscal Year 2024/2025 rate is $O. Petaluma Aqueduct pays an Petaluma additional revenue bond charge for the bonds associated with Ely Aqueduct NA- last BPS Flood Control and Electrical Upgrade and Wilfred Booster Bond/Loan $15.66 FY rate was Station Projects. Reduced Aqueduct Capital Charge and use of Charge $0. Fund Balance in prior years results in total Debt service and rate increase that are higher in FY 2025/2026 as Petaluma AQ will be bonding for the first time with the 2025 Revenue Bond Issuance.

Fiscal Year 2024/2025 rate is $145.49. Sonoma Aqueduct pays an additional revenue bond charge for the bonds associated with Sonoma Sonoma Booster Station Electrical Upgrade and Pumping Reliability Aqueduct ($0.93) -0.6% Project, Bennett Valley Fault Crossing Project, and other Creek Bond/Loan Crossing Projects on the Aqueduct. Total Debt service lower than Charge previous year due to structure of the bond payments and the fact that Sonoma AQ will not be utilizing funds from the 2025 Revenue Aqueduct Capital Charge: (Budget Packet Page 1):
• A discretionary charge is added by the water contractors to build fund balance for future aqueduct capital projects and to provide rate stabilization capacity. • The FY 2024-2025 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.
• The FY 2025-2026 draft budget includes a $11 per Acre-Foot charge for the Santa Rosa Aqueduct, a $10 per Acre-Foot charge for the Petaluma Aqueduct, and a $34.90 per Acre-Foot charge for the Sonoma Aqueduct pending input from the water contractors
• Overall Draft Proposed Rate Increases: (Budget Packet Pages 1-8):
• 8.68% (Santa Rosa Aqueduct); 10.76% (Petaluma Aqueduct); 7.60% (Sonoma Aqueduct) • FY2025/2026 budgeted deliveries are based on 36-month average water deliveries (42,407 AF).

FY2025/2026 budgeted deliveries are 1.0% less than FY 2024/2025 budgeted deliveries.

Sonoma Water xvi Draft 2/26/2025
FY 2025-2026 Capital Projects (Budget Packet Pages 37-46):

Water Transmission Budget FY25-26
Capital Projects Summary
Project Category Amount Status
Santa Rosa Creek Crossing Santa Rosa AQ 130,247 Funding de-obligated; re-evaluating project design and schedule Ely BPS Flood Control & Electrical Upgrade Awarded Q3 FY21/22; Delayed due to Elec Supply Chain issues; Substantial Completion Petaluma AQ anticipated Oct 2025
Wilfred Booster Station Petaluma AQ 90% design; Prepurchase Elec Equip in fabrication; Anticipate Construction Award Q1 FY25/26 Kawana-Ralphine SBS Pipeline Storage Consultant Selection 24/25; multi year design; construction award anticipated FY28/29 Seismic Retrofit of Storage Tanks Storage Site specific geotech planned at each tank; seismic upgrades tied to Tank Recoat schedule Ralphine Tanks Flow Thru Conversion Storage 1st tank design underway; flow mixing system upgrades tied to Tank Recoat schedule Mirabel Collector Wells Pump Hoist Upgrades Common Design agrmt anticipated Q3 FY24/25; construction award anticipated Q4 FY25/26 Mirabel/Wohler Storage Building Common Design Advancing; CEQA/permitting commencing Q4 FY24/25; Anticipate award FY26/27 River Diversion Structure (RDS) Upgrade Project Common Design Advancing; Anticipate award in FY25/26 Occidental Road Well Well drilling contract complete FY23/24; topside design complete FY24/25; construction award Common
Sebastopol Road Well Construction ongoing; delays in electrical equipment delivery; Substantial Completion anticipated Common 707,215 |Q4 FY24/25
Todd Rd Well Discharge Connection Common Design and Construction award in 25/26 Warm Springs Dam Hydropower Retrofit Common Switchgear pre-purchased in FY24/25. Design being finalized; Anticipate award in Q2 FY25/26 Water Treatment System Modemization - Phase 1 Common 1,08,960 Dani acquit on cing ed FY 24256268 Design agrmt anticipated Q4 FY24/25; construction award anticipated FY26/27 Water Treatment System Modemization - Phase 3 (River Road) Common TOTAL 18,280,420
Santa Rosa AQ 130,247
Petaluma AQ 3,119,107
Sonoma AQ
Storage 2,104,967
Common 12,926,099

18.280,420
Sonoma Water xvii Draft 2/26/2025
Sonoma County Water Agency
Fiscal Year 2025/2026 Draft Water Transmission Budget and Rates Budget Packet Page
Rates
Prime Contractor Rates Summary 1-2
Water Charges Per Acre-Foot
Revenue Summary
O&M Rate
Line Item Rate Comparison
Russian River Projects and Conservation Charges
Deliveries
Deliveries (36 Mo) 9
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 22-26 Subfunds
Water Management Subfund 27
Watershed Planning and Restoration Subfund 28-29
Recycled Water and Local Supply Subfund 30-31
Water Conservation Subfund 32-33
Subfund Contract Services 34-36
Facilities and Other Funds
Santa Rosa Aqueduct Capital Fund 37-38
Petaluma Aqueduct Capital Fund 39-40
Sonoma Aqueduct Capital Fund 41-42
Storage Facilities Cash Summary 43-44
Common Facilities Cash Summary 45-46
North Marin Water Deposit Fund 47
Common Bonds 2015 Cash Summary
Sonoma Bonds 2015 Cash Summary
Common Bonds 2019 Cash Summary
Sonoma Bonds 2019 Cash Summary
Storage Bonds 2022 Cash Summary # 8 8 81291
Common Bonds 2022 Cash Summary
Sonoma Bonds 2022 Cash Summary
Petaluma Bonds 2025 Cash Summary
Storage Bonds 2025 Cash Summary
ommon Bonds 2025 Cash Summa
'ond & Loan Charge
Fund Balances and Operating Transfers
Fiscal Year 2025/2026 Prime Contractor Rates Summary
CHARGE PER ACRE FOOT:

Santa Rosa Petaluma Sonoma Percent
Change
Aqueduct Aqueduct Aqueduct
O&M Charge 1.36%
Water Manacge [4.21 $1,029.16 $1,029.16 $1,029.16 $1,015.39 $1,015.39 1206.12% Watershed Pragement Planning Sub-charge [4.13] 4.57 4.57 4.57 $0.35 $0.35 14.14% Recycled Wal Planning/Restoration Sub-charge [4.14] 45.71 45.71 45.71 S40.04 $40.04 N/A Water ConseNater & Local Supply Sub-charge [4.15] 0.14 0.14 7.20% O&M Chargeservation Sub-charge [4.16] 63.83 63.83 $59.55 $59.55 2.52% $1,143.41 $1,143.41 $1,143.41 $1,115.33
Storage and 9e 51.49%
Petaluma Aqnd Common Bond & Loan Charges 246.45 246.45 246.45 $162.69 $162.69 $162 NA Sonoma AquAqueduct Bond Charge 15.66 $0.00 -0.64%
queduct Bond Charge 144.56 $145
PRIME CONT 8.75%
INTRACTORS $1,389.86 $1,405.52 $1,534.42 $1,278.02$1,278.02 $1,423.

Capital Char!
for future proarges - to build fund balance 0.00%
PRIME CONiprojects 11.00 10.00 34.90 $11.00 0.00%
INTRACTORS 11.00 10.00 34.90 $11.00 $34
TOTAL PRIM 8.68%
PIME CONTRACTORS $1,400.86 $1,415.52 $1,569.32 $1,289.02 $1,278.02 $1,458.

Increase from Fiscal Year 2024/2025 8.68% 10.76% 7.60% 9.88% 9.98% 8.1 With No Capital Charge 7.82% 9.98%
Deliveries:
12-month 36-month
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
FY25-26 42,407
2/26/2025
Fiscal Year 2025/2026 Prime Contractor Rates Summary
• IOUGE I GaI GURUIGUEU
CHARGE PER ACRE FOOT:

Petaluma AQ
Percent
NMWD NMWD Change
0&M Cha FY25-26 FY24-25
Water Malarge [4.21 $1,029.16 $1,015.39 1.36%
Watershellanagement Planning Sub-charge [4.13] 4.57 0.35 1206.12% Recycled led Planning/Restoration Sub-charge [4.14] 45.71 40.04 14.14% Water Coid Water & Local Supply Sub-charge [4.15] 0.14 0.00 N/A O&M Cha onservation Sub-charge [4.16] 63.83 $59.55 7.20% narge $1,143.41 $1,115.33 2.52%
North Malarin Bond & Loan Charge 14.91 148.66 90.54 64.19% Russian F
1 River Conservation Charge [4.18 (a)] 160.41 159.28 0.71% Russian F
1 River Projects Charge [4.18 (b)] 20.00 20.00 0.00%

TOTAL NE
NMWD $1,472.47 S1,385.15 6.30%
Town of Winc Rates Rate Increase
Town of Windindsor 1,400.86 8.68%
NMWD indsor (Diverted Water) 114.26 14.32%
MMWD 1,472.48 6.30%
1,751.63 8.79%
2/26/2025

WATER TRANSMISSION SYSTEM
FY25-26 WATER CHARGES PER ACRE-FOOT
FY25-26 WATER CHARGES PER ACRE-FOOT

FOR PRIME CONTRACTORS

FISCAL SANTA SONOMA
% INCR PETALUMA % INCR. % INCR.

YEAR ROSA AQUEDUCT AQUEDUCT
AQUEDUCT (DECR.) (DECR.) (DECR.)
2025 - 2026 1400.86 8.68% 1415.52 10.76% 1569.32 7.60%
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 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%
2/26/2025

WATER TRANSMISSION SYSTEM
FY25-26 REVENUE SUMMARY CHART
FY25-26 FY24-25 FY25-26
WATER CUSTOMER Budgeted Water Rate Proposed Rate Dollar Change Percent Use (Acre-Feet) $/Acre-Foot $/Acre-Foot Change
Santa Rosa Aqueduct 15,733 $1,289.02 $1,400.86 $111.84 8.68% Petaluma Aqueduct 8,949 1,278.02 1,415.52 137.50 10.76% Sonoma Aqueduct 3,565 1,458.41 1,569.32 110.91 7.60%
North Marin Water District 5,357 1,38515 1,472.48 87.33 6.30% Marin Municipal - Fourth 1,751.63 141.54 8.79%
Off Peak 4,300 1,610.09
Marin Municipal - 2,568 1,610.09 1,751.63 141.54 8.79%
Supplemental
Forestville Aqueduct 351 1,289.02| 1,400.86 111.84 8.68% Wholesale/Municipal 965 1,750.08 1,883.18 133.10 7.61%
Surolus 96 1,338.40 1,372.09 33.69 2.52%
Windsor 522 1,289.02 1,400.86 111.84 8.68%
TOTAL 42,407
2/26/2025
SONOMA COUNTY WATER AGENCY RATES FOR WATER DELIVERIES IN FY25-26 [x] ESTIMATED [] OFFICIAL CHARGE PER ACRE FOOT:

Santa Rosa Petaluma Sonoma
Aqueduct Aqueduct Aqueduct

PRIME CONTRACTORS
O&M Charge [4.2] $1,029.16 $1,029.16 $1,029,16
Water Management Planning Sub-charge [4.13] $4.57 $4.57 $4.57 Vatershed Planning/Restoration Sub-charge [4.14] $45.71 $45.71 $45.71 Recycled Water & Local Supply Sub-charge (4.15 $0.14 $0.14 $0.14 Water Conservation Sub-charge [4.16] $63.83 $63.83 $63.83 O&M Charge $1,143.41 $1,143.41 $1,143.41
Bond & Loan Charges - to pay for existing debt service
Storage Facilities Capital Charge (4.7] 50.09 50.09 50.09 Common Facilities Capital Charge (4.8] 196.36 196.36 196.36 Petaluma Aqueduct Facilities Capital Charges [4.6 b] 15.66 Sonoma Aqueduct Facilities Capital Charges [4.6 b] 144.56 Total Bond & Loan Charges 246.45 $262.11 $391.01
Discre Total Bond & Loan Charges 246.45 $262.11 $391.01 Agscretionary:

Aqueduct Capital Charges - to build fund balance for future projects Aqueduct Facilities Capital Charges [4.6 e] 11.00 10.00 34.9 LF
TOTALRT2 - included in Recycled Water & Local Supply Sub-Charge above.

OTAL PRIME CONTRACTORS $1,400.86 $1,415.52 $1,569.32
OTHE $1,389.86 $1,405.52 $1,534.42
Charge without LRT2 and voluntary AQ Capital Charge
(WAITHER AGENCY CUSTOMERS/WHOLESALE CHARGES

OVATER CO'S & PUBLIC AGENCIES)
Cế O&M Charge $1,143.41 $1,143.41 $1,143.41
AQ Capital Charges 246.45 262.11 391.01
TOTA Aqueduct Facilities Capital Charge [4.12] $493.32 $477.66 $348.76 (120%TAL OTHER AGENCY CUSTOMERS/WHOLESALE CHARGES (4.12) 51,883.18 $1,883.18 S1,88318 FORE20% OF HIGHEST PRIME)
OgRESTVILLE
O&M Charge [4.2] * $1,029.16
Water Management Planning Sub-charge [4.13] $4.57
Watershed Planning/Restoration Sub-charge [4.14]| $45.71 Recycled Water & Local Supply Sub-charge (4.15] $0.14
Water Conservation Sub-charge [4.16] $63.83
Bc O&M Charge $1,143.41
Bond & Loan Charges - to pay for existing debt service
Aqueduct Facilities Capital Charges [4.6] 11.00
Storage Facilities Capital Charge (4.7] 50.09
To
Common Facilities Capital Charge [4.8] 196.3(
TOTA Total Capital Charges 257.4
* ForeTAL FORESTVILLE $1,400.86
NORForestille Water District was exempt from Santa Rosa Aqueduct sub-charge from FY 06/07 to FY 16/17 [4.12].

ORTH MARIN WATER DISTRICT
O&M Charge $1,143.41 Note: N. Marin pa
Ru North Marin Bond & Loan Charge (4.9) 148.66 bond and loan chige.

Ru Russian River Conservation Charge [4.18 (a)] 160.41 in lieu of Capital ( TOTA Russian River Projects Charge (4.18 (b)] 20.00
FOUR TAL NORTH MARIN WATER DISTRICT 1,472.48
HibURTH OFF-PEAK (MARIN MUNICIPAL),
Highest Prime on SR and PET AQ x 1.11 $1.571.22
RL.s
TOTAL FOURTH OFF-PEAK $1.751.63

SUPPLEMENTAL (MARIN MUNICIPAL)
Highest Prime on SR and PET AQ x 1.11 $11.10 1560.12 $1,571.22 Russian River Conservation Charge 160.41
Russian River Projects Charge 20.00
TOTAL SUPPLEMENTAL $1,751.63

SURPLUS
Non-Municipal / Municipal [4.11 (a)] $1,372.09 $1,372.09 $1,372.09 (120% of O&M Charge)
Town of Windsor $1,400.86
Beginning in FY22/23 all water delivered to Town of Windsor is charged at 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)]. $1,400.86
The applicable section of the Restructured Agreement has been indicated in brackets. 5 FY 2025-26 BUDGET

SONOMA COUNTY WATER AGENCY
Operations and Maintenance Rate Computation

O & M REVENUE REQUIREMENT
FY25-26 ESTIMATED FISCAL YEAR EXPENDITURES $67,904,977
LESS:

LESS: 3,000
Depreciation Amortization 7,1,651
Investment Income, Interest on Pooled Cash, Charges for Services 2,000 RPS Pre-paid Expense - FY 0B109 Rate Reduction-One time only "Mandatory Prudent Reserve" charge
Ise of Fund Balance 0
Recycled Water funds (Sub-object 7277) taken from special reserv 3,238 Transfers Out 143,088
REVENUE REQUIREMENT (Net Expenditures) $45,
0 & M ACRE FOOT BASE
107.3
DELIVERIES:

LESS: 368.3
Marin Municipal 96.3
Surplus (Irrigation)
142.7

TOTAL BASE DELIVERIES
0& M RATE COMPUTATION:

Rate = Revenue Requirement - (Marin Municipal Deliveries x 1.11 x 0.92568 x Highest Prime F Total Deliveries - Surplus Deliveries - Marin Muni Deliveries = 45,556,088 - (4,300.00 x 1337.05) - (2,568.26 x 1337.05) 42,407.3 - 96.3 - 6,868.3
* = 1,029.16
2/26/2025
FY25-26
Proposed Water Rates
FY24-25 FY25-26
(Actual) (Proposed) % Change
O&M Charge 1015.39 1029.16 1.36%
Water Management Planning Sub-Charge 0.35 4.57 1206.1%
Watershed Planning/Restoration Sub-Charge 40.04 45.71 14.14% .... -r....i
Recy
Wat*Cycled Water Sub-Charge 0.00 0.14 N/A
Totaater Conservation Sub-Charge 59.55 63.83 7.20%
stal O&M Charge 1115.33 1143.42 2.52%
Sant
inta Rosa Aqueduct Rate
O&N
AqueM Charge 1115.33 1143.41 2.52%
Storeduct Facilities Capital Charges [4.6 e] 11.00 11.00 0.0% Comorage Facilities Capital Charge 14.71 31.47 50.09 59.20% TOTmmon Facilities Capital Charge [4.81 131.22 196.36 49.64% OTAL 1289.02 1400.85 8.68%
Petal
taluma Aqueduct Rate
O&N
Aque M Charge 1115.33 1143.41 2.52%
Storglueduct Facilities Capital Charges [4.6 e] 0.00 10.00 N/A Comorage Facilities Capital Charge [4.7] 31.47 50.09 59.20% Petal'mmon Facilities Capital Charge [4.8] 131.22 196.36 49.64% ToTtaluma Aqueduct Facilities Capital Charges [4.c 0.00 15.66 N/A OTAL 1278.02 1415.51 10.76%
Sonoma Aqueduct Rate
O&M Charge 1115.33฿ 1143.41 2.52%
Aqueduct Facilities Capital Charges [4.6 e] 34.90 34.90 0.0% Storage Facilities Capital Charge [4.7] 31.47 50.09 59.20% Common Facilities Capital Charge [4.8] 131.22 196.36 49.64% Sonoma Aqueduct Facilities Capital Charges [4.6 145.49 144.56 -0.64% TOTAL 1458.41 1569.31 7.60%
7 2/26/2025

SONOMA COUNTY WATER AGENCY

RUSSIAN RIVER CONSERVATION CHARGE COMPUTATION
FISCAL YEAR 2025-26
PROPERTY ASSESSMENT VALUES AS OF FY24-25:

TAX CODE ENTITY SECURED UNSECURED TOTAL VALUE
14000 Forestrille Co Water District 569,038,799 3,309,543 $572,348,342 42800 City of Cotati 1,458,559,933 34,271,987 1,492,831,920 43500 City of Petaluma 13,229,983,942 518,268,914 13,748,252,856 43800 City of Rohnert Park 7,486,674,091 166,266,919 7,652,941,010 44502. Cinent, Santa,Rosa, .... 31 834.749822.. 1075.28,2013.. 32 912032,833 44500 City of Santa Rosa 31,834,749,820 1,075,283,013 32,9105,200 45000 City of Sonoma 3,711,593,808 124,511,392 3,8?82,376 N/A Valley of the Moon Water District 4,666,087,332 21,195,044

4.0/94,537
TOTAL $62,956,687,725 $1,943,106,812 $64,81
Notes:
1 Total value of secured and unsecured property in service areas of Prime Water 794,537 Contractors of Sonoma County (see above) $64,8!
2016-17 Sonoma County tax rate per $100 of full cash value assesse 0.007 or payment of Warm Springs Dam Project Obligation
Total tax levied on citizens residing in service areas of Prime Water Contractors c $42,986 onoma County, i.e. (Line 1/100)x Line
Total acre feet of water delivered to Prime Water Contractors of Sonoma Coun ,320.40 xcluding North Marin and Town of Windsor) plus deliveries to Forestvil during the prior 12 month period ending March 31.

Б160.41
5 Total Russian River Conservation Charge per Acre Foot (Line 3/ Line 4) 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
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
25-26 26.85 $20.00 $160.41
8 2/26/2025

SCHEDULE OF WATER DELIVERIES BY AQUEDUCT
PAST 36 MONTHS / 12 MONTHS AVERAGE
DELIVERING AQUEDUCT Monthly
Santa Rosa Petaluma Forestville Sonoma Total
Jan-22 1073.2 1423.2 18.6 205.2 2,720.2
Feb-22 3,118.1
Mar-22 3,666.4
Apr-22 LLE
3,615.8
May-22 4,984.0
May-22 4,984.0
Jun-22 4,318.5
Jul-22 3,348.0
Aug-22 3,942.7
Sep-22 3,225.2
Oct-22 3,285.8
Nov-22 2,814.8
Dec-22 2,807.7
Jan-23 2,750.7
Feb-23 2,225.2
Mar-23 2,168.1
Apr-23 1,726.0
May-23 3,642.6
19 Jun-23 4,094.8
18 Jul-23 5,164.4
Aug-23 4,997.1
16 Sep-23 4,243.2
Oct-23 4,467.7
Nov-23 2,956.7
Dec-23 2,407.7
2,663.4
2,146.4
2,044.8
2,613.3
3,327.6
4,284.6
574.4 6,095.3
400.2 5,048.5
427.5 5,267.6
3 + + 4,827.5
1 1168.11 3,096.4 |
Total Deliveries 49,055.4 127.221.8
3-Year Annual Average 16,351.8 22,139.2 42.407.3
Past 12 Months 17,201.9 23,173.0 371.2 3,784.2 44,530.2 Total Deliveries 49,055.4 66,417.7 1,054.3 10,694.4 127,221.8 Less: North Marin 16,070.9 16,070.9
Marin Municipal 20,604.8 20,604.8
Sonoma Co. Deliveries 49,055.4 29,742.0 1,054.3 10,694.4 90,546.1 3-Year Annual Average 16,351.8 9,914.0 351.4 3,564.8 30,182.0 2/26/2025
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
Jan-24 F0b-24 Mar-24 Apr-24 May-24 Jun-24 JuL24 Aug-24 SoD-24 D0c-24 TOTAL Santa Rosal City or Santa Rosa DELIVERED TO:

1.885.1 850803 8 0 18 see manen....
1,845.1 0.0 1.121,6
469.0 401.8 357.1 7515 471:4 7,313.7 CITY OF SANTA ROSA AI 973.1 124.0 3SC.7 7.094.5 Jan 2024 965.5
2754 169.7 206.5 2,884.3 1.031.8

32.3 33.3 225.2
1,328.6
17333 38.5 38.9 522.4 111.9 1,536.9

93.3 83.1 126.2 123.3 185 1L 1.1034 2 078.3
154.9 1,772.5 1,425.0 378,5 1.731.2
2934 20305 1,303 389 2216 382 49904 3.925.7 4,417.9 3,8598 2,399.7 2.617.338.171.7 1,6892 OTHER AGENCY CUSTOMER 1.845.1
Cal-American Water 1,352.6 336.9 1,595.0
2 Penngrove Water Co MERS 1,408.5
4 Lawndale Mutual 2.6 1.258.1

11.8 106.5
Konwood Village Water Co 10.2 183.0 8421 2,745.1
19 2.1 0.4 22084803 TOTAL SANTA ROSA 13.4495

22.6 18.9 24.3 37-2 313.7 7,313.7

0.7 1.1 OTHER PRIME CONTRACTORS (B) 7.094.5

0.0 0.0 NORTH MEN WATER DISTRICT 0.0 2,884.3

9.6 63 590.9

63.8 52.1 46.5 67.9 80.4 CITY OF RCHNER: PARK 522.4
CITY OF COTATI 42 1,799.0 1,799.0
522.4 1.772.5 1.772.5
1565 21.5 966.7 693.6 843.91 626.1 395.9 5.106.6 830.2 3571,4 21.977.1 2 Frigation Petaluma Aq 575.5_830.2 6.316.5 38.171.7

0.0 I TOTAL SURPLUS CUST. TOTAL DELIVERIES TO PRIMES 12.0250 [091.5) (7.094.5) TOTAL DELIVERIES 2.3 3.5 51.7 180,2 LESS NORTH MARIN 735.8 6.316.51 31.077.3

2.663.4 2,146.4 2,044.3 2,613.3 3,3276 4,284.6 6.095.3 5.048.5 4,827.5 3,114.7 3.096.444,530.2 TOTAL SOVONA COUNTY DELIVERIES| 14,025.0 2/26/2025
FY 2025-26 BUDGET
Water Transmission System Agency Fund
ESTIMATED WATER DELIVERIES AND WATER SALES - O&M plus Surcharges

ESTIMATED TATED

REVENUE CATEGORY ACRE FEET ESTIMATED ESENUE

DELIVERED RATES RE

WATER SALES - O&M
482,799
1 PRIMES without Subcharges 34,477.4 1,029.16
707,581
OTHER AGENCY CUSTOMERS 965.3 1,768.92
749,321
MARIN MUNICIPAL (OFF-PEAK) 4,300.0 1,337.05
433,901
4 MARIN MUNICIPAL (SUPPLEMENTAL) 2,568.3 1,337.05
121,084
5 SURPLUS CUSTOMERS 96.3 1,257.83
494.686
TOTAL WATER SALES - O&M 42,407.3 N/A
Note: MMWD rate adjusted per Amended MMWD Water Supply Agreements Effective 7/1/15.

ESTIMATED TATED

REVENUE CATEGORY ACRE FEET ESTIMATED ESENUE

DELIVERED RATES RE
WATER SALES - Sub-charges
194,000
1a Water Management Planning Sub-charge [4.13] 42,407.3 4.57 938,370
1b Watershed Planning/Restoration Sub-charge [4.14] 42,407.3 45.71 6,000
1c Recycled Water & Local Supply Sub-charge [4.15] 42,407.3 0.14 706,900
1d Water Conservation Sub-charge [4.16] 42,407.3 63.83
TA, TUI. NIn y7,845,270
2/26/2025
FY 2025-26 BUDGET
Water Transmission System Agency Fund
CANTA DOCA ANIELICT ECTIMATEN INATED NEI IVERIES AND INATED CAIECAMnue Cumhaunno SANTA ROSA AQUEDUCT ESTIMATED WATER DELIVERIES AND WATER SALES - O&M plus Surcharge! ESTIMATED ¡TIMATED