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2625 Alcatraz Ave, #602
Berkeley, CA 94705
Tel 510 653 3399
www.bartlewells.com
DATE: March 15th, 2024
TO: City of Foster City/Estero Municipal Improvement District
FROM: Bartle Wells Associates
SUBJECT: Water Rate Study Update Results
SUMMARY OF FINDINGS AND RECOMMENDATIONS
Introduction and Background
The Estero Municipal Improvement District (District ) engaged Bartle Wells Associates (BWA) to develop 10-year financial projections for the District’s Water Enterprise and to project water rate adjustments for the next five-year period. BWA last conducted formal rate studies in 20 23, which resulted in a one -year rate approval for water rates for FY 2024.
Current and projected water service rates are in the low range compared to other agencies on the Peninsula and the combined water and w astewater service rates are in the middle-low range compared to other agencies on the Peninsula. The District water enterprises face unique infrastructure funding challenges.
Water Enterprise Summary
The primary driver for the proposed rate increases is to smooth District rate increases due to projected increases in the San Francisco Public Utilities Commission (SFPUC) wholesale water rate. The rate increase is due to a variety of factors including increased debt service on existing and newly issued bonds, continued low water usage, and repayment of the balancing account.
SFPUC, the sole source of water supply for the District, released updated projections for their wholesale rate for the next five years (FY 2025 to FY 2029). SFPUC is projecting the current rate of $ 5.21 in FY 2024 per hundred cubic feet (ccf) will increase to $5.55 in FY 2025, $5.63 in FY 2026, $5.93 in FY 2027, $6.37 in FY 2028, and $6.60 in FY 2029.
SFPUC rates were historically held level at $4.10/ccf for six years (FY 2017 to FY 2022) despite escalating SFPUC debt service and operating costs through use of a balancing Exhibit A
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account. The balancing account was built up from SFPUC wholesale water sales exceeding projections used in rate setting . In FY 2023, the wholesale rate increased 15.9% to $4.75/ccf and 9.7% to $5.21 in FY 2024. Despite these increases, the balancing account now shows wholesale customers ow e SFPUC $9.7 million. Wholesale rate increases are projected to return the balancing account to zero by FY 2026.
During the time that SFPUC wholesale rates were held flat by the balancing account, the District has been gradually increasing its volumetric rates in anticipation of projected wholesale rate increases by SFPUC. While the wholesale rate increases have come to fruition, the District’s rates have been phased to ensure sufficient revenues and avoid sharp increases based on a rate smoothing model.
The District will also continue to make annual payments, projected to be $ 601,416 in FY 2025, to the Bay Area Water Supply and Conservation Agency (BAWSCA) for the Water System Improvement Project (WSIP) that was funded through the issuance of bonds. The water enterprise’s single largest cost is water purchases from SFPUC.
BWA proposed water rates are designed to maintain the operating fund above target levels (90 days operating expenses in reserves) and cover District operating and capital costs. Excluding water purchase and capital related costs, District operating costs are projected to increase by about 3 % per year. Additionally, the District is projected to set aside $1,000,000 per year for capital improvements . The capital improvement transfer amount is based on funding the District’s water master plan.
Proposed water rates are based on 10 % water loss. That is, 90 % of the water EMID purchases are sold to retail customers. The losses have decreased over time due to the District’s efforts to replace aging meters. Water loss refers to the difference between the amount of water put into the distribution system and the amount of water billed to customers. This loss can be categorized into two main types:
• Real Losses: These are physical losses of water from the system due to leaks, overflows, or breaks in the water mains, service lines, and other infrastructure.
Real losses can be caused by aging infrastructure, corrosion, damage, or faulty installation.
• Apparent Losses: These are non-physical losses that occur due to inaccuracies in metering, data handling errors, or unauthorized consumption (water theft).
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To maintain the operating reserve s, fund the capital set aside, and phase in volumetric rates, BWA recommends the District implement a 3.8% volumetric rate increase and a
4.5% meter charge increase in FY 202 5. The average bill for a single family home would increase by 4% or $3.17 per month.
Detailed water rate calculations are shown in APPENDIX C.
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Rate Survey
A survey of communities along the San Francisco Peninsula was conducted to compare the District’s typical residential monthly water bills with neighboring communities. The results of the water survey are summarized in APPENDIX B.
The water survey compares a monthly water bill for 8 units of water which would be a common residential consumption. Including the recommended increase, the District’s average monthly water bill proposed for FY 2025 is $81.65. Since it is unknown what the comparator agencies are proposing for FY 2024, the District compares its FY 2024 monthly residential water bills to the FY 2024 monthly residential water bills for the neighboring agencies. The survey indicates that the District’s water rates are among the lowest on the Peninsula. The average monthly water bill for the region based on 8 ccf is $106.08 per month and the District’s average monthly residential water bill is $78.48 per month, or about 26% less. Since the proposed increase is also less than the FY 2024 average, it is likely that EMID customers will continue to pay much lower than average water bills.
APPENDIX D shows how the combined water and wastewater bills compare to regional agencies based on FY 2024 rates. The average monthly combined water and wastewater bill for the region is $225.98. The District’s total combined water and wastewater bill is $209.35 per month, or about 7.4% less than the regional average.
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Water Enterprise Fund
The District currently provides water service to a population of approximately 3 6,500.
Most of the District’s customers are residential. Table 1 shows the approximately 8,285 accounts/meters that allow for water service and fire protection service.
Table 1
City of Foster City / Estero Municipal Improvement District Water Meters By Size
Data as of: 01/23/24
Water Service
3/4" 6,825 1.00 6,825
1" 463 1.67 772
1-1/2" 180 4.00 720
2" 381 5.33 2,032
3" 89 11.67 1,038
4" 61 21.00 1,281
6" 39 46.67 1,820
8" or greater 19 80.00 1,520
Subtotal 8,057 16,008
Private Fire Protection Service
3/4" 1 1.40 1
1" 7 1.40 10
1-1/2" 3 1.40 4
2" 0 1.87 0
3" 2 4.08 8
4" 35 7.35 257
6" 95 16.33 1,551
8" or greater 85 28.00 2,380 Subtotal 228 4,212
Total 8,285 20,220
Source: Foster City/Estero Municipal Improvement District water use records [2] Private fire protection service ratio based on the fire service line; Resolution No. 2715 [3] Equals the number of accounts multiplied by the meter ratio for each meter size.
Meter Size Accounts Meter Ratio1,2 Est. Meter Equivalents3 [1] The meter ratios shall be based on meter size in compliance with ratios established by the American Water Works Association (AWWA) Sizing Water Service Lines and Meters M22, Second Edition, 2004 (M22 Manual)
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Table 2 illustrates the current reserves that the District can draw down in case of emergency or to smooth any “rate shocks” to its customers.
The District is meeting its 90-day operating fund reserve target (estimated to be $ 4.4 million.) The target is based on the District’s long standing reserve policy and is an industry standard minimum target to maintain adequate short term liquidity in case of emergencies.
The wholesale water purchase rates that SFPUC is projecting through FY 2029 are shown graphically in CHART A. The SFPUC rates are projected to increase from $5.21/ccf in FY 2024 to $6.60/ccf in FY 2029.
Table 2
City of Foster City / Estero Municipal Improvement District W
ater Enterprise Operating Reserves
July 1, 2023
Fund Reserve Component Reserve Balance
Reserved for Maintenance & Operation (401) $9,617,989
Total $9,617,989
operating expenditures.
Note: Rate model only includes fund reserve components available to fund ongoing Source: City of Foster City/Estero Municipal Improvement District Staff
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CHART A
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Table 3 summarizes the District’s projected operating expenditures which are anticipated to increase over the next five years by about 22%.
Table 3
City of Foster City / Estero Municipal Improvement District W
ater Enterprise O&M Projection
Revised
Budget
FY2024 FY2025 FY2026 FY2027 FY2028 FY2029
Employee Services 2,630,464 2,962,550 3,081,052 3,204,294 3,332,466 3,465,764 4.0% Internal Services - Others 1,053,625 1,244,701 1,275,819 1,307,714 1,340,407 1,373,917 2.5% Internal Services - ERF 448,097 456,767 468,186 479,891 491,888 504,185 2.5% Services & Supplies 750,362 817,062 837,489 858,426 879,886 901,884 2.5% SFPUC Water Purchases 9,590,517 10,247,000 10,433,000 11,026,000 11,883,000 12,356,000 varies BAWSCA Bond Repayment 594,012 601,416 601,416 601,416 601,416 601,416 Reallocation [2] 1,267,042 1,368,966 1,403,190 1,438,270 1,474,227 1,511,082 2.5% Water Sustainability 200,000 200,000 200,000 200,000 200,000 200,000 Capital Outlay/Vehicles 600,000 - - - - - TOTAL O&M Expenditures 17,134,119 17,898,462 18,300,151 19,116,011 20,203,290 20,914,249
4.5% 2.2% 4.5% 5.7% 3.5%
[1] Based on City/District Staff direction
[2] Costs allocated to the Water Enterprise from other departments based on the City's cost allocation study.
Five Year Projection Annual %
Increase [1]Expenditures
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Table 4 summarizes the current water rates. The District has variable expenditures which are expenditures that are impacted by the amount of water its customers consume. These costs must be recouped via its volumetric water charge, $6.36 per ccf in FY 2024. Likewise, the District’s meter charges recover fixed expenditures, expenditures that are fixed regardless of amount of water that is consumed, $27.60 for a ¾” meter in FY 2024.
The District has a two-tiered model for its residential customers where higher levels of water consumption are subject to higher water rates based on a proportionate share of conservation program costs. Commercial customers are charged a uniform rate, which includes commercial customer’s proportionate share of conservation program costs.
Conservation costs of $200,000 per year are allocated to each customer class based on their percentage of total usage. Residential and irrigation customers pay conservation costs on Tier 2 usage only, while commercial customers pay their share of conservation costs on each unit of water usage.
For its irrigation customers, the District has worked with John Whitcomb of Waterfluence to assign each irrigation customer a water budget. Any water consumed above the irrigation customers allotted amount is subject to a higher Tier 2 rate based on each customer’s share of conservation program costs.
APPENDIX A shows the District’s historical water use trends from the prior year. The historical trend has been a decrease in irrigation usage and residential usage, and an increase in commercial usage. BWA’s proposed rates are designed to match volumetric expenses (such as water purchases) with volumetric revenue. The rate structure mitigates over or under collecting revenue due to fluctuations in water use.
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Table 4
City of Foster City / Estero Municipal Improvement District Current Rates
Current Rates 2024
Fixed Meter Charge
Monthly Meter Charge
Meter Size
3/4" $27.60
1" $46.00
1-1/2" $110.40
2" $147.20
3" $322.00
4" $579.60
6" $1,288.00
8" or greater $2,208.00
Bi-Monthly Water Consumption Tiers and Rates
Single Family Residential
Tier 1 0-20 per ccf $6.36
Tier 2 Over 20 ccf $7.01
Multi-Family Residential
Tier 1 0-10 ccf per living unit $6.36
Tier 2 Over 10 ccf per living unit $7.09
Irrigation Customers
Tier 1 <=100% of annual budget $6.36
Tier 2 >100% of annual budget $7.22
Commercial and Fire Line
All usage $6.47
Monthly Private Fire Protection Charge
Meter Size
3/4" $38.64
1" $38.64
1-1/2" $38.64
2" $51.61
3" $112.61
4" $202.86
6" $450.71
8" or greater $772.80
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Low Income Discount
Currently Foster City has approximately 25 customers enrolled in the Water/Wastewater Rate Assistance Program (WWRAP), which was implemented in 2020. Customers meeting the eligibility and qualification requirements below are granted a discount of up to $15 per month each on their qualifying Water accounts, not to exceed a $30 per month discount per customer. To be eligible for the WWRAP, customers must show that they qualify for the PG&E CARE Program or other public assistance program or submit proof of income eligibility.
The estimated maximum potential cost of a $15/month discount for 25 customers amounts to $4,500 per year. Since the low income discount revenue sources cannot be funded with rates, rates are unaffected by the decision on the terms of the program and hence are not required to be included in the Proposition 218 notification.
The District funds the current low income discount through non-rate sources of revenue such as fines and penalties, cell tower lease and general fund revenue to maintain compliance with California Proposition 218. The discount is recommended to be provided as funds are available. Late penalties collected year to date for water in FY 2024 amounted to $31,000, exceeding the cost of the program.
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APPENDIX A
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APPENDIX B
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APPENDIX C
Table 5
City of Foster City / Estero Municipal Improvement District Water Enterprise Cash Flow Projection - Residential Two Tier Rate Structure Hybrid Model Fiscal Year Ending June 30 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Assumptions:
Interest Earnings Rate 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% Revenue Increase from Growth [1] 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% 0.37% Fixed Charge $27.60 $28.85 $30.15 $31.50 $32.90 $34.40 $35.80 $37.25 $38.75 $40.30 $41.90 Fixed Rate Adjustment 4.5% 4.5% 4.5% 4.4% 4.6% 4.1% 4.1% 4.0% 4.0% 4.0% SFR Variable Charge $6.36 $6.60 $6.85 $7.11 $7.38 $7.66 $7.96 $8.18 $8.41 $8.66 $8.90 Variable Rate Adjustment 3.8% 3.8% 3.8% 3.8% 3.8% 3.9% 2.8% 2.8% 3.0% 2.8% Monthly Service Charge Single Family (8 ccf) $78.48 $81.65 $84.95 $88.38 $91.94 $95.68 $99.48 $102.69 $106.03 $109.58 $113.10 Rate Adjustment 4.0% 4.0% 4.0% 4.0% 4.1% 4.0% 3.2% 3.3% 3.3% 3.2% Beginning Fund Balance $9,617,989 $9,247,000 $8,692,500 $8,530,300 $8,374,300 $7,997,000 $7,811,800 $7,895,400 $8,118,000 $8,485,600 $9,025,200 Revenues
Water Sales & Service Charges
Meter Charge Revenue Estimate 6,697,000 7,026,000 7,369,000 7,727,000 8,101,000 8,501,000 8,879,000 9,273,000 9,681,000 10,105,000 10,545,000 Volumetric Revenue Estimate 10,628,000 11,083,000 11,545,000 12,012,000 12,508,000 13,018,000 13,573,000 14,000,000 14,440,000 14,911,000 15,384,000 Connection Fees [1] 366,255 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 Interest Earnings - Operating Reserve [2] 192,000 185,000 174,000 171,000 167,000 160,000 156,000 158,000 162,000 170,000 181,000 Other 0 0 0 0 0 0 0 0 0 0 0
Operating Revenues 17,883,255 18,344,000 19,138,000 19,960,000 20,826,000 21,729,000 22,658,000 23,481,000 24,333,000 25,236,000 26,160,000 Expens es
Employee Services 2,630,464 2,962,550 3,081,052 3,204,294 3,332,466 3,465,764 3,604,000 3,748,000 3,898,000 4,054,000 4,216,000 Internal Services - Others 1,053,625 1,244,701 1,275,819 1,307,714 1,340,407 1,373,917 1,408,000 1,443,000 1,479,000 1,516,000 1,554,000 Internal Services - ERF 448,097 456,767 468,186 479,891 491,888 504,185 517,000 530,000 543,000 557,000 571,000 Services & Supplies 750,362 817,062 837,489 858,426 879,886 901,884 924,000 947,000 971,000 995,000 1,020,000 SFPUC Water Purchases 9,590,517 10,247,000 10,433,000 11,026,000 11,883,000 12,356,000 12,771,000 13,201,000 13,645,000 14,104,000 14,579,000 BAWSCA Bond Repayment 594,012 601,416 601,416 601,416 601,416 601,416 601,416 601,416 601,416 601,416 601,416 Reallocation 1,267,042 1,368,966 1,403,190 1,438,270 1,474,227 1,511,082 1,549,000 1,588,000 1,628,000 1,669,000 1,711,000 Capital Outlay / Vehicles 600,000 0 0 0 0 0 0 0 0 0 0
Operating Expenses 16,934,119 17,698,462 18,100,151 18,916,011 20,003,290 20,714,249 21,374,416 22,058,416 22,765,416 23,496,416 24,252,416 Operating Net Revenues 949,136 645,538 1,037,849 1,043,989 822,710 1,014,751 1,283,584 1,422,584 1,567,584 1,739,584 1,907,584 Water Sustainability Fund Transfer 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 Capital Improvement Transfer [3] 1,120,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Total Expenses 18,254,119 18,898,462 19,300,151 20,116,011 21,203,290 21,914,249 22,574,416 23,258,416 23,965,416 24,696,416 25,452,416 Revenues Les s O&M Expens es 949,136 645,538 1,037,849 1,043,989 822,710 1,014,751 1,283,584 1,422,584 1,567,584 1,739,584 1,907,584 Revenues Les s Total Expens es (370,864) (554,462) (162,151) (156,011) (377,290) (185,249) 83,584 222,584 367,584 539,584 707,584 Ending Fund Balance 9,247,125 8,692,538 8,530,349 8,374,289 7,997,010 7,811,751 7,895,384 8,117,984 8,485,584 9,025,184 9,732,784 Revenue Tes t: Annual Revenues > O&M Expenses
Annual Revenues Less O&M Expenses 949,136 645,538 1,037,849 1,043,989 822,710 1,014,751 1,283,584 1,422,584 1,567,584 1,739,584 1,907,584 Pass/fail PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS Fund Reserve Test: Minimum Fund Balance > 25% O&M Expenses Year-end fund balance 9,247,125 8,692,538 8,530,349 8,374,289 7,997,010 7,811,751 7,895,384 8,117,984 8,485,584 9,025,184 9,732,784 25% operating expenses 4,180,000 4,360,000 4,460,000 4,660,000 4,930,000 5,110,000 5,270,000 5,440,000 5,610,000 5,790,000 5,980,000 # of Days O&M in Reserves 199 179 172 162 146 138 135 134 136 140 146 Pass/fail PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS [1] Estimated for planning purposes
[2] Calculated as 2% of the Beginning Fund Balance of the Water Revenue Fund [3] Capital Improvements are funded through the Long-Term Capital Improvement Project Fund Five Year Projection Extended Year Projection
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Table 6
City of Foster City / Estero Municipal Improvement District Water Rate Calculation - Two Tier Hybrid Model
F
iscal Year Ending June 30 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Fixed Meter Charge Increas e 4.50% 4.50% 4.50% 4.50% 4.50% 4.00% 4.00% 4.00% 4.00% 4.00% Fixed Revenues +/- 5% of Fixed Costs? YES YES YES YES YES YES YES YES YES YES Res erves % Above (Below) Res erve Target 199.4% 191.3% 179.7% 162.2% 152.9% 149.8% 149.2% 151.3% 155.9% 162.8% Res erve Target Met? YES YES YES YES YES YES YES YES YES YES Revenue Es timates
Meter Charge Revenue 6,697,000$ 7,026,000$ 7,369,000$ 7,727,000$ 8,101,000$ 8,501,000$ 8,879,000$ 9,273,000$ 9,681,000$ 10,105,000$ 10,545,000$ Other Fixed Revenue 558,255$ 235,000$ 224,000$ 221,000$ 217,000$ 210,000$ 206,000$ 208,000$ 212,000$ 220,000$ 231,000$ Volumetric Revenue 10,628,000$ 11,081,000$ 11,552,000$ 12,009,000$ 12,510,000$ 13,007,000$ 13,574,000$ 14,002,000$ 14,441,000$ 14,900,000$ 15,388,000$ Total Projected 17,883,255$ 18,342,000$ 19,145,000$ 19,957,000$ 20,828,000$ 21,718,000$ 22,659,000$ 23,483,000$ 24,334,000$ 25,225,000$ 26,164,000$ Total Projected Revenue (Rounded '000's) 17,883,000$ 18,342,000$ 19,145,000$ 19,957,000$ 20,828,000$ 21,718,000$ 22,659,000$ 23,483,000$ 24,334,000$ 25,225,000$ 26,164,000$ $17,883,255 $18,344,000 $19,138,000 $19, 960,000 $20,826,000 $21,729,000 $22,658,000 $23,481,000 $24,333,000 $25,236,000 $26,160,000 Revenue Allocation
Fixed 40.6% 39. 6% 39.7% 39.8% 39.9% 40.1% 40.1% 40.4% 40.7% 40.9% 41.2% Variable 59.4% 60.4% 60.3% 60.2% 60.1% 59.9% 59.9% 59.6% 59.3% 59.1% 58.8% Costs Estima te s
Fixed Costs [1] $7,869,590 $7,850,046 $8,065,735 $8,288,595 $8,518,874 $8,756,833 $9,002,000 $9,256,000 $9,519,000 $9,791,000 $10,072,000 Variable Costs [2] $10,384,529 $11,048,416 $11,234,416 $11,827,416 $12,684,416 $13,157,416 $13,572,416 $14,002,416 $14,446,416 $14,905,416 $15,380,416 Total Projected Costs $18,254,119 $18,898,462 $19,300,151 $20,116,011 $21,203,290 $21,914,249 $22,574,416 $23,258,416 $23,965,416 $24,696,416 $25,452,416 Net Revenue
Fixed Charges -$614,335 -$589,046 -$472,735 -$340,595 -$200,874 -$45,833 $83,000 $225,000 $374,000 $534,000 $704,000 Volumetric Charges $243,471 $32,584 $317,584 $181,584 -$174,416 -$150,416 $1,584 -$416 -$5,416 -$5,416 $7,584 Total -$370,864 -$556,462 -$155,151 -$159,011 -$375,290 -$196,249 $84,584 $224,584 $368,584 $528,584 $711,584 Cost Ana lysis
Fixed 43.1% 41.5% 41.8% 41.2% 40.2% 40.0% 39.9% 39.8% 39.7% 39.6% 39.6% Variable 56.9% 58.5% 58.2% 58.8% 59.8% 60.0% 60.1% 60.2% 60.3% 60.4% 60.4% Meter Charge Calculation
Monthly charge per meter equivalent 27.60$ 28.85$ 30.15$ 31.50$ 32.90$ 34.40$ 35.80$ 37.25$ 38.75$ 40.30$ 41.90$ (Rounded to nearest $0.05)
Annual charge per meter equivalent 331.20$ 346.20$ 361.80$ 378.00$ 394.80$ 412.80$ 429.60$ 447.00$ 465.00$ 483.60$ 502.80$ Meter equivalents [3] 20,220 20,294 20,368 20,443 20,518 20,593 20,668 20,744 20,820 20,896 20,973 Meter Charge Revenue Estimate 6,697,000$ 7,026,000$ 7,369,000$ 7,727,000$ 8,101,000$ 8,501,000$ 8,879,000$ 9,273,000$ 9,681,000$ 10,105,000$ 10,545,000$ Volumetric Rate Calculation
EMID Proposed Uniform Rate $6.47 6.72$ 6.98$ 7.23$ 7.50$ 7.77$ 8.08$ 8.30$ 8.53$ 8.77$ 9.02$ Projected annual water sales (ccf) [4] 1,642,652 1,649,000 1,655,000 1,661,000 1,668,000 1,674,000 1,680,000 1,687,000 1,693,000 1,699,000 1,706,000 Variable revenue estimate $10,628,000 $11,081,000 $11,552,000 $12,009,000 $12,510,000 $13,007,000 $13,574,000 $14,002,000 $14,441,000 $14,900,000 $15,388,000 % Spread between EMID and SFPUC
Surcharge 24.2% 21.1% 24.0% 21. 9% 17.7% 17.7% 18.9% 18.5% 18.3% 18.1% 17.9% SFPUC PROJECTED RATES $5.21 $5.55 $5.63 $5.93 $6.37 $6.60 $6.80 $7.00 $7.21 $7.43 $7.65 Increas e (Decreas e) % 6.5% 1.4% 5.3% 7.4% 3.6% 3.0% 3.0% 3.0% 3.0% 3.0% BAWSCA Surcharge $0.35 $0.35 $0.35 $0.35 $0.35 $0.35 $0.35 $0.35 $0.35 $0.35 $0.35 SFPUC Rate + BAWSCA Surcharge $5.56 $5.90 $5.98 $6.28 $6.72 $6.95 $7.14 $7.35 $7.56 $7.77 $8.00 EMID Fixed Meter Charge Increas e (Decreas e) 4.5% 4.5% 4.5% 4.4% 4.6% 4.1% 4.1% 4.0% 4.0% 4.0% EMID Volumetric Rate Increas e (Decreas e) 3.9% 3.9% 3.6% 3.7% 3.6% 4.0% 2.7% 2.8% 2.8% 2.9% Note:
[1] Includes: Employee Services, Internal Services - Other, Internal Services - ERF, Services & Supplies, Reallocation, Capital Outlay, Capital Improvement Fund Transfers, Debt Service, and net revenues for the operating fund. [2] Includes: SFPUC Water Purchases, BAWSCA Bond Repayment, and Water Sustainability Fund Transfers. [3] 0.37% growth estimated for planning purposes
[4] Includes 10% water loss factor
Five Year Projection Extended Year Projection
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Table 7
City of Foster City / Estero Municipal Improvement District Proposed Water Rates - Two Tier Hybrid Model
Current
Rates FY2025 FY2026 F Y2027 FY2028 FY2029 FY2030 FY2031 FY2032 FY2033 FY2034 Monthly Meter Charge
3/4" $27.60 $28.85 $30.15 $31.50 $32.90 $34.40 $35. 80 $37.25 $38.75 $40.30 $41.90 1" 46.00 48.08 50.25 52.50 54.83 57.33 59. 67 62.08 64.58 67.17 69.83 1-1/2" 110.40 115.40 120.60 126.00 131.60 137.60 143.20 149.00 155.00 161.20 167.60 2" 147.20 153.87 160.80 168.00 175.47 183.47 190.93 198.67 206.67 214.93 223.47 3" 322.00 336.58 351.75 367.50 383.83 401.33 417.67 434.58 452.08 470.17 488.83 4" 579.60 605.85 633.15 661.50 690.90 722.40 751.80 782.25 813.75 846.30 879.90 6" 1,288.00 1,346.33 1,407.00 1,470.00 1,535.33 1,605.33 1,670.67 1,738.33 1,808.33 1,880.67 1,955.33 8" or greater 2,208.00 2,308.00 2,412.00 2,520.00 2,632.00 2,752.00 2,864.00 2,980.00 3,100.00 3,224.00 3,352.00 Conservation-Based Water Rate Model (based on bi-monthly allotments) Single Family Residential
Tier 1 0-20 per ccf 6.36 6.60 6.85 7.11 7.38 7.66 7.96 8.18 8.41 8.66 8.90 Tier 2 Over 20 ccf 7.01 7.33 7.60 7.84 8.09 8.36 8.67 8.89 9.12 9.36 9.60 Multi-Family Residential (per living unit)
Tier 1 0-10 ccf per living unit 6.36 6.60 6.85 7.11 7.38 7.66 7.96 8.18 8.41 8.66 8.90 Tier 2 Over 10 ccf per living unit 7.09 7.36 7.64 7.88 8.13 8.40 8.71 8.93 9.16 9.40 9.64 Irrigation Customers
Tier 1 <=100% of annual budget 6.36 6.60 6.85 7.11 7.38 7.66 7.96 8.18 8.41 8.66 8.90 Tier 2 >100% of annual budget 7.22 7.80 8.08 8.31 8.55 8.82 9.13 9.35 9.58 9.81 10.05 Commercial and Fire Line Customers
Base Consumption Rate 6.47 6.72 6.98 7.23 7.50 7.77 8.08 8.30 8.53 8.77 9.02 Monthly Fire Meter Charge
3/4" 38.64 40.39 42.21 44.10 46.06 48.16 50.12 52.15 54.25 56.42 58.66 1" 38.64 40.39 42.21 44.10 46.06 48.16 50.12 52.15 54.25 56.42 58.66 1-1/2" 38.64 40.39 42.21 44.10 46.06 48.16 50.12 52.15 54.25 56.42 58.66 2" 51.61 53.95 56.38 58.91 61.52 64.33 66.95 69.66 72.46 75.36 78.35 3" 112.61 117.71 123.01 128.52 134.23 140.35 146.06 151.98 158.10 164.42 170.95 4" 202.86 212.05 221.60 231.53 241.82 252.84 263.13 273.79 284.81 296.21 307.97 6" 450.71 471.12 492.35 514.40 537.26 561.75 584.61 608.29 632.79 658.10 684.23 8" or greater 772.80 807.80 844.20 882.00 921.20 963.20 1,002.40 1,043.00 1,085.00 1,128.40 1,173.20 (Minimum charge is equivalent to 1-1/2" meter charge)
TWO TIER HYBRID MODEL
Recommended Rates
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Table 8
Foster City / Estero Municipal Improvement District
Projected Water Rate Impacts
Current FY2025
Rates Two Tier Hybrid Model
Monthly meter charge $27.60 $28.85
% Change 4.5%
Single Family Residential
Bi-Monthly Tiers
Tier 1: 0 to 20 ccf $6.36 $6.60
Tier 2: over 20 ccf $7.01 $7.33
Water Monthly
Use Level Use (ccf) Monthly Bill
Low User 5 $59.40 $61.85
$ Increase 2.45
% Increase 4.1%
Median Us er 6 $65.76 $68.45
$ Increase 2.69
% Increase 4.1%
Average Us er 8 $78.48 $81.65
$ Increase 3.17
% Increase 4.0%
High User 10 $91.20 $94.85
$ Increase 3.65
% Increase 4.0%
Very High User 20 $154.80 $168.15
$ Increase 13.35
% Increase 8.6%
Exces s ive Us er 50 $365.10 $388.05
$ Increase 22.95
% Increase 6.3%
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Table 9
Foster City / Estero Municipal Improvement District
Projected Water Rate Impacts
Current
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034
Two Tier Hybrid Model
Single Family Residential Monthly Rate $78.48 $81.65 $84.95 $88.38 $91.94 $95.68 $99.48 $102.69 $106.03 $109.58 $113.10 $ Increase 3.17 3.30 3.43 3.56 3.74 3.80 3.21 3.34 3.55 3.52 % Increase 4.0% 4.0% 4.0% 4.0% 4.1% 4.0% 3.2% 3.3% 3.3% 3.2% Based on Single Family Residential Use of 8 ccf
Fiscal Year Ending June 30 Extended Year ProjectionProjected Water Bills
APPENDIX D
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