3/4/2025
Sonoma
Water
Clean. Reliable. Essential. Every day.
FY 2025-2026
Proposed Budget and Rates
Water Transmission System
Lynne Rosselli
FINANCIAL SERVICES
DIVISION MANAGER
[email protected]
Jake Spaulding
FINANCE MANAGER
[email protected]
[email protected]
3/4/2025
VANDSO Legend
• Production Vell
• Russian River Collector
Tank
_ , Russian River Watershed
SANTAROSA
SANTA ROS
SEBASTOPOL
ROHNERT
PARK
PETALUMA VALLEY SONOMA
PETALLMA
VALLEY
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3/4/2025
Transparent and collaborative process to bring
rates to Board of Directors by end of April
Water
Technical Water Sonoma
Advisory Contractor Advisory Water Board
Boards &
Committee Committee of Directors
Councils
(Jan-March) (April) (April)
(March)
CATA LUM
City of
Santa Rosa
1858
WINDSOI
NORTH MARIN WER DISTR
WATER DISTRICT
3 3/4/2025
Budget includes multiple water transmission
system activities and funds
• Operations and Maintenance
• Four Subfunds
• Five Capital Funds
• Debt Service Funds
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4 3/4/2025
Asset Condition Assessment
• majority of facilities are
now 45-65 years old
• 40% of our infrastructure
assets currently have only
10 - 20% of their useful life
remaining
• Consequence of failure is
high
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3/4/2025
Highlights of Sonoma Water and Water Contractor
Achievements and Collaborations
• Santa Rosa Plain Wells
• Regional Water Supply Resiliency
• Hazard Mitigation Projects
• Sonoma-Marin Saving Water
Partnership - Drought Resiliency
• Water Education Program
• Dry Creek Habitat Enhancement
Highlights of Programs Funded from Other Sources
• Forecast Informed Reservoir Operations
• Advanced Quantitative Precipitation Information Systems • Quagga and Zebra Mussels
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3/4/2025
$8.31 million budgeted for hazard mitigation
projects to reduce risks
Ely BPS Flood Control & Electrical Upgrade
River Diversion Structure (RDS) Upgrade Project
Santa Rosa Creek Crossing
Seismic Retrofit of Storage Tanks
Wilfred Booster Station
7 3/4/2025
$9.97 million budgeted for other capital projects
to increase resiliency
Kawana-Ralphine SBS Pipeline
Mirabel Collector Wells Pump Hoist Upgrades
Mirabel/Wohler Storage Building
Occidental Road and Sebastopol Road Wells
Ralphine Tanks Flow Thru Conversion
Todd Rd Well Discharge Connection
Warm Springs Dam Hydropower Retrofit
Water Treatment System Modernization Phase 1
Water Treatment System Modernization Phase 3
Total FY25-26 Capital Budget
including Hazard Mitigation Projects:
$18.28M
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3/4/2025
$45.87 million budgeted for operations and maintenance to protect, improve and maintain system reliability
Projects
Aqueduct Cathodic Protection
Pump 9 Replacement
Emergency Inventory Procurement
SCADA Improvements
Tank Recoats & Tank Maintenance Programs
Studies
Arc Flash Studies
Asset Management Plan
Cathodic Protection Assessment
Regional Water Supply Resiliency Implementation
Transmission System Master Plan, Modeling & Condition Assessments Programs
9 3/4/2025
$8.80 million for Biological Opinion, Water
Supply Planning and Water Conservation
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RUNNING?
BETTER CATCH IT!
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SHARE YOUR RESULTS
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SAVING WATER
SavingWaterPartnership.org/challenge CARTNER RE
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10 3/4/2025
Expenditures compared to FY 24-25
FY24-25 FY25-26
Budget Budget Change
(in Millions) (in Millions)| (in Millions)
Operations and Maintenance $45.41 $45.87 $.46
Capital Projects $15.66 $18.28 $2.62
BO Compliance, Water Supply $7.53 $8.80 $1.27
Planning, Water Conservation
Debt Service $5.83 $9.07 $3.25
Totals $74.43 $82.02 $7.60
Grants, Use of Fund Balance, $18.137 $21.22 $3.09
and Bond Proceeds
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3/4/2025
Grants, Bond Proceeds,
FY 25-26 Budgeted Expenditures and Use of Fund Balance
$21.22 Million
Debt Service
$9.07 Million,
11%
Operations and
Maintenance
$45.87 Million,
56%
BO Compliance, Water
Capital Projects
$18.28 Million, 22%
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12 3/4/2025
Example of how rates are
calculated
$59,370,000 ฿ $1,400/ Acre
=
42,407 AF Foot
Water Sold: Restructured Agreement requires use of the Lesser or
42,407 AF 44,530 AF
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Deliveries and Rates
Due to the prescribed fully volumetric rate, budgeted
deliveries have a significant impact on rate increases.
Rate Rate Rate
Scenario Deliveries Increase Increase Increase
(SR AQ) (PET AQ) (SON AQ)
3-Year Annual Ave
42,407 8.68% 10.76% 7.60%
(FY25/26 Budget)
500 AF of deliveries = ~ 1.3% change to rate increase
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3/4/2025
Steps taken to reduce budget and rate
Result:
Rate increase
dropped from
over 40% to:
SR AQ - 8.68%
Pet AQ. - 10.76%
Deferred or Deferred budget
reduced budget year capital Son AQ. - 7.60%
year non-routine
projects by $5.37
maintenance million and $87.93
projects by $11.31 million in capital
Total cost per
costs originally
scheduled for Use of grants, bond gallon is $0.004
FY26/27 and proceeds,
FY27/28. and fund balance =
$21.34 million 15
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3/4/2025
Proposed Rates for FY 25-26
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
Prime Contractors $11.00 $10.00 $34.90
Total Prime Contractors $1,400.86 $1,415.52 $1,569.32
Total Overall Increase: 8.68% 10.76% 7.60%
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3/4/2025
Long Range Financial Plan
Example Petaluma Aqueduct Rate Scenario
2,400
2,300
2,200
2,100
2,000
per Acre-Foot 1,900
1,800
1,700
1,600
Rate 1,500 Fiscal Year
1,400 2029 2030
2027 2028 2031
Estimated Rate per Acre-Foot 1,555 1,719 1,902 2,103 2,326 Estimated Rate Increase 10.6% 10.6% 10.6% 10.6% 10.6%
• Assumes Water Demand Growth of 1% based on FY 2025 Budgeted Deliveries of 42,407 AF. Petaluma AQ Deliveries: 10,000 AF to 10,280 AF (Not including NMWD and MMWD). Higher Deliveries would reduce rates.
• Estimated 5% growth in O&M Expenses and 4% growth in capital project costs. • Estimated FY 2028-2029 Financing: $114.5 Million. 17
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3/4/2025
2025 wholesale water rates per Acre-Foot
$2,200
$2,000
$1,800
$1,600
$1,400
$1,200
$1,000
$800
$600
$400
$200
$-
Sonoma County Zone 7 Water Valley Water San Francisco Contra Costa Water Water Agency Agency Public Utilities District
Commission
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3/4/2025
Next steps
• Technical Advisory Committee Vote -
March 3
• Water Advisory Committee Vote - April 7
• Adoption by Sonoma Water's Board - April
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3/4/2025
Sonoma Water Videos
Investing in our infrastructure
Avaiable in English and Spanish at
www.youtube.com/@sonomawater/videos
Value of water: A brief video on the value of our water supply We are Sonoma Water: Where your water comes from
Water storage tank maintenance: A brief video on how we are working to keep our water storage facilities upgraded, reliable for today and future generations Maintaining the Sonoma booster station: Keeping the drinking water flowing to Sonoma, Valley of the Moon Water District one booster station at a time! Aqueduct corrosion protection program: A brief video on work to combat corrosion in our aqueduct
Russian River Aqueduct Crossing: Ensuring safe delivery of drinking water Dry Creek habitat restoration: Protecting our natural pipeline, habitat 20 20 20
3/4/2025
Sonoma
Water
Lynne Rosselli
Financial Services Division Manager
[email protected]
Jake Spaulding
Finance Manager
[email protected]
sonomawater.org
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