111825 PW Water Rate Study Report Study Session Consultant Report — City Council - Successor Agency

| Water Rate Study
DRAFT –
2025 Water Rate Study Draft Report
Stantec Consulting Services Inc.

Prepared for:

City of Fullerton, CA
Prepared by:

Stantec
Date:

November 12, 2025
Project/File:

City of Fullerton | Water Rate Study

2025 Water Rate Study Draft Report

Project: City of Fullerton | Water Rate Study 2

Disclaimer
The conclusions in the Report titled 2025 Water Rate Study Draft Report are Stantec’s professional opinion, as of the time of the Report, and concerning the scope described in the Report. The opinions in the document are based on conditions and information existing at the time the scope of work was conducted and do not take into account any subsequent changes. The Report relates solely to the specific project for which Stantec was retained and the stated purpose for which the Report was prepared. The Report is not to be used or relied on for any variation or extension of the project, or for any other project or purpose, and any unauthorized use or reliance is at the recipient’s own risk.

Stantec has assumed all information received from The City of Fullerton (the “Client”) and third parties in the preparation of the Report to be correct. While Stantec has exercised a customary level of judgment or due diligence in the use of such information, Stantec assumes no responsibility for the consequences of any error or omission contained therein.

This Report is intended solely for use by the Client in accordance with Stantec’s contract with the Client.

While the Report may be provided by the Client to applicable authorities having jurisdiction and to other third parties in connection with the project, Stantec disclaims any legal duty based upon warranty, reliance or any other theory to any third party, and will not be liable to such third party for any damages or losses of any kind that may result.

2025 Water Rate Study Draft Report
Table of Contents
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Table of Contents
Disclaimer ....................................................................................................................................................... 2 Executive Summary ....................................................................................................................................... 5 Acronyms / Abbreviations ............................................................................................................................. 9 1 INTRODUCTION ............................................................................................................................... 10

1.1 UTILITY BACKGROUND .................................................................................................................. 10

1.2 OBJECTIVES .................................................................................................................................... 10

1.3 STUDY DRIVERS ............................................................................................................................. 11

1.4 STUDY METHODOLOGY................................................................................................................. 11 2 FINANCIAL PLAN ............................................................................................................................ 13

2.1 DATA & ASSUMPTIONS .................................................................................................................. 13

2.1.1 BEGINNING FUND BALANCES ....................................................................................................... 13

2.1.2 CUSTOMER GROWTH & VOLUME FORECAST ............................................................................ 14

2.1.3 RATE REVENUES ............................................................................................................................ 15

2.1.4 NON-RATE REVENUES................................................................................................................... 15

2.1.5 EXPENSES ....................................................................................................................................... 15

2.1.6 COST ESCALATION ........................................................................................................................ 16

2.1.7 CAPITAL IMPROVEMENT PROGRAM ............................................................................................ 17

2.1.8 INTEREST EARNINGS ON INVESTED FUNDS ............................................................................. 18

2.1.9 RESERVE TARGETS ....................................................................................................................... 18

2.1.10 FUTURE BORROWING ASSUMPTIONS ........................................................................................ 19

2.2 PROPOSED RATE REVENUE INCREASES ................................................................................... 19 3 COST-OF-SERVICE ALLOCATION ................................................................................................ 21

3.1 PROCESS ......................................................................................................................................... 21

3.1.1 STEP 1: ALLOCATE COSTS TO SYSTEM FUNCTIONS ............................................................... 22

3.1.2 STEP 2: DESIGNATE FUNCTIONAL COMPONENTS TO COST GROUPS .................................. 23

3.1.3 STEP 3: CREDIT NON-RATE REVENUE & CHANGE IN FUND BALANCE .................................. 24 4 RATE STRUCTURE ......................................................................................................................... 25

4.1 SYSTEM METRICS .......................................................................................................................... 25

4.2 CURRENT RATES ............................................................................................................................ 26

4.3 RATE STRUCTURE COST CATEGORIES...................................................................................... 27

4.4 CALCULATION OF FIXED SERVICE CHARGES ........................................................................... 27

4.4.1 ACCOUNT COSTS ........................................................................................................................... 28

4.4.2 UTILITY COSTS ............................................................................................................................... 28

4.5 CALCULATION OF WATER USAGE CHARGES ............................................................................ 29

4.5.1 PURCHASED WATER COSTS ........................................................................................................ 29

4.5.2 UNIFORM RATES ............................................................................................................................ 30

4.5.3 TIERED RATES ................................................................................................................................ 30

4.6 PASS-THROUGH POLICY ............................................................................................................... 31

4.7 TEMPORARY SERVICE (CONSTRUCTION METERS) .................................................................. 32 5 SUMMARY OF PROPOSED RATES ............................................................................................... 34 Appendix A RSA Schedules .................................................................................................................... 35 Appendix B Cost-of-Service Schedules ................................................................................................. 48 Appendix C Proposed Rate Schedules .................................................................................................. 56 2025 Water Rate Study Draft Report
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List of Figures
Figure 1: Historical Water Production and Total Sales ............................................................................ 14 Figure 2: FY 2025 Budgeted Expense Categories .................................................................................... 16 Figure 3: Financial Projection with Recommended Rate Increases ....................................................... 20 Figure 4: Financial Projection with Recommended Rate Increases ....................................................... 21 Figure 5: Rate Structure Cost Categories ................................................................................................. 27 Figure 6: Tiered Rate Cost and Flow Allocations ..................................................................................... 31 Figure 7: Pass-Through Cost Formulas .................................................................................................... 32 List of Tables
Table 1: FY 2025 Beginning Cash Balance................................................................................................ 13 Table 2: O&M Cost Escalation Factors ...................................................................................................... 16 Table 3: Recommended Water Rate Revenue Increase ........................................................................... 19 Table 4: Allocation of Cost Categories to Functional Components ....................................................... 22 Table 5: Grouping System Functions into Cost Groups .......................................................................... 23 Table 6: Rate Revenue Requirement .......................................................................................................... 24 Table 7: Customer Units of Service (2022), .............................................................................................. 25 Table 8: Current Fixed Service Charge ...................................................................................................... 26 Table 9: Current Tiered Residential Water Usage Rates .......................................................................... 26 Table 10: Current Non-Residential Water Usage Rate ............................................................................. 27 Table 11: Meter Equivalencies .................................................................................................................... 28 Table 12: Monthly Fixed Service Charge (Effective April 1, 2026) .......................................................... 29 Table 13: Residential Usage Rates (Effective April 1, 2026) .................................................................... 31 Table 14: Temporary Service Charge (Effective April 1, 2026) ................................................................ 33

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Executive Summary

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Executive Summary
This Executive Summary presents an overview of the results of the 2025 Water Rate Study (Study) that was conducted for the City of Fullerton’s Water Division by Stantec Consulting.

The primary objectives of this Study are to:

I. Develop a multi-year financial management plan that provides for the City Water Division’s capital funding needs;
II. Identify future rate adjustments to water rates that will ensure adequate revenues to meet the Water Fund’s ongoing financial requirements;
III. Determine the cost of providing water service to customers using industry accepted methodologies; and
IV. Recommend specific rate structures that equitably recover the cost of service while minimizing the financial impact to ratepayers and comporting with industry practices and legal requirements.

The following describes the drivers that initiated the need for this Study, and a general description of the solutions that were used to address those challenges.

Driver: The 2019 Rate Study adopted a rate schedule through the 2023-24 fiscal year.

Solution: Update the Water Fund financial plan and rates to meet the revenue needs over the next five years.

Driver: The Water Fund has experienced revenue shortfalls relative to the projected revenue from the 2019 Study due to a period of high inflation, increases in wholesale water costs and capital costs, and combined with a gap in rate adjustments since July 2023.

Solution: Adjust water rates to meet revenue sufficiency and establish a sustainable path forward for the Water Fund to meet operating and capital needs.

Driver: The City’s water distribution system continues to experience above-average pipe breaks which are expensive to repair and disruptive to the community. Additionally, pumps, wells, tanks and other water assets are approaching or have aged beyond their useful lives and need replacement.

Solution: Include in the financial plan an increase in capital spending to address the system’s pipe replacement needs and replacement of other critical infrastructure.

Driver: The legal environment in California (namely Proposition 218) has significantly increased the burden of proof required of public utilities to demonstrate that the rates being charged for utility service are proportionate to the cost of providing the utility services. 2025 Water Rate Study Draft Report
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Solution: Conduct a full cost-of-service allocation analysis and make rate structure modifications, as appropriate, to support inter- and intra-class equity in rates charged to customers.

This Study used methodologies that are aligned with industry standard practices for rate setting as promulgated by the American Water Works Association (AWWA) and all applicable law, including California Constitution Article XIII D, Section 6(b) (for water rates) commonly known as Proposition 218.

This Study consisted of the following phases:

1. Revenue Sufficiency Analysis (RSA) – The Study developed a multi-year financial forecasting model for the Water Fund to determine the level of annual rate revenue required to satisfy projected annual operating costs, debt service expenses, and capital cost requirements while maintaining adequate reserves. In the RSA, Stantec evaluated the sufficiency of the Water Fund’s rate revenues to meet current and projected financial requirements over a 10-year projection period and determined the level of rate revenue increases necessary over the next five years to provide sufficient revenues to fund cost requirements. Input data and key assumptions were reviewed with City staff, and several alternative capital spending scenarios were evaluated by both staff and the City’s Infrastructure and Natural Resources Advisory Committee (INRAC) during the RSA. This process generated a recommended financial plan and corresponding annual rate increases.

Like many utilities around the state and country, the City is currently facing challenges of aging infrastructure. Many of the City’s wells, pump stations, and reservoirs have reached the end of their useful service life, and requirements to address per- and polyfluoroalkyl substances (PFAS) in groundwater have added to the Water Fund’s capital investment needs. In addition, over 50% of the City’s approximate 423 miles of water distribution pipes are over 50 years old. The City has often experienced over 100 water main breaks per year, which is among the highest rate of breaks per 100 miles of pipe in Orange County. These pipe breaks are a nuisance to residents and local businesses, they are expensive to repair, they damage homeowners’ properties in extreme cases, and consequently they are a drain on the City’s financial and staffing resources.

The number of breaks have gone down since the investment from the 2019 Study, but continued investment is needed to bring the number even lower and to keep them at a manageable level.

City staff evaluated multiple alternative capital improvement program (CIP) project schedules spanning the period from fiscal year (FY) 2026 through FY 2035 (FY 2026 spans the period from July 1, 2025 through June 30, 2026). These projects were identified in the City’s recently updated 2025 Water Master Plan, also prepared by Stantec, and are necessary for the long-term health of the water system. These CIP alternatives were evaluated with the goal of balancing the need to address critical infrastructure deficiencies while minimizing water rate increases. The final recommended CIP totaled approximately $269 million (in current dollars) over the period of FY 2026 through FY 2035. This CIP includes a ramp-up in spending on water main replacement, reaching the goal of replacing approximately seven miles per year by FY 2030. A pace of seven 2025 Water Rate Study Draft Report
Executive Summary

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miles of pipeline replacement per year would result in replacing the entire distribution system over the course of approximately 60 years.

The 5-year rate revenue adjustment plan is presented in Table ES.1. It is important to note that, while in Year 1 rate revenues across all customer classes will increase by 5%, the proposed rate structure adjustments (discussed further below) will result in the average single-family residence with a 5/8-inch meter experiencing an increase of less than $3 to their monthly bill. Results will vary among different customers due to the proposed rate structure adjustments. To be clear, some customers’ bills will increase by more than the average rate revenue adjustment for Year 1, while other customers’ bills will increase by less.

Due to the factors discussed above regarding historical cost increases and future infrastructure investment needs, this Study recommends the schedule of water rate revenue increases presented in Table ES 1.

Table ES.1.: Proposed Plan of Water Rate Revenue Increases Rate Adjustment Date Rate Adjustment
April 1, 2026 5.0%
April 1, 2027 12.0%
April 1, 2028 12.0%
April 1, 2029 12.0%
April 1, 2030 7.0%

2. Cost-of-Service Analysis (COSA) – Using the revenue requirements from the RSA for FY 2026, Stantec performed a detailed COSA based upon principles outlined by the AWWA and other generally accepted industry practices to determine the proper distribution of costs and corresponding revenue requirements. The purpose of a COSA is to allocate the cost of providing water service so that the revenue requirements of the utility may be equitably collected through rates. The Study employed methods promulgated in AWWA’s Manual M1: Principles of Water Rates, Fees, and Charges (M1) for the water system. The COSA included the following steps:

 Step 1: Allocate costs to the appropriate activities/functions  Step 2: Allocate the costs of each function to specific system parameters  Step 3: Calculate unit costs
 Step 4: Credit non-rate revenue

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3. Rate Structure Analysis – The Study developed specific rate schedules to recover the identified level of required rate revenue from each customer class. The recommended rate schedules were designed to:
 Fairly and equitably recover costs through rates;
 Conform to accepted industry practice and legal requirements; and  Provide fiscal stability and recovery of fixed costs of the system.

The City’s existing water rate design is a two-part structure comprised of a Fixed Service Charge that is assessed based on meter size and a consumption-based Water Usage Rate (as measured in thousands of gallons or “TGAL”) that is assessed based on the total amount of water that is used. Additional details that describe the City’s current water rate structure are included in the full report. This Study proposes to maintain the existing basis for determining rates with adjustments made to maintain consistent underlying allocations of costs to specific components of the rate structure. Specifically, the tier allocations (i.e. the amount of water allowed in each respective tier) are calculated based on the amount of water available from each source of water supply. Based on changes in water consumption patterns, tier allotments required updates to maintain the same alignment with the volume of supply from each source.

Tables ES.2 shows the proposed rates effective April 1, 2026. The complete list of rate schedules through April 1, 2031 are provided in the complete report. Note that, following the initial 5% rate increase in 2026, the Pass-Through Policy could adjust future rates beyond the proposed rate revenue increases shown in Table ES.1.

Table ES.2: Proposed Rates, Effective April 1, 2026
Fixed Charges Tiered Usage Rates (for Residential accounts)

Uniform Usage Rates (for Non-Residential accounts)

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Acronyms / Abbreviations

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Acronyms / Abbreviations
Acronym / Abbreviation Full Name
AWWA American Water Works Association
CIP capital improvement program
COSA cost of service analysis
DSC debt service coverage ratio
FY fiscal year (which ends on June 30 for the City)
GPM gallons per minute
INRAC Infrastructure and Natural Resources Advisory Committee MWD Metropolitan Water District of Southern California
O&M operations and maintenance
OCWD Orange County Water District
RSA revenue sufficiency analysis
SRF State Revolving Fund
TGAL thousand gallons

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Introduction

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1 INTRODUCTION
Stantec Consulting has been retained by the City of Fullerton (City) to conduct a Water Rate Study (Study) for the City’s Water Division. This report describes in detail the assumptions, procedures, and results of the Study, including conclusions and recommendations.

1.1 UTILITY BACKGROUND
The City of Fullerton is located in Orange County, approximately 25 miles southeast of downtown Los Angeles. The City’s existing water service area is over 22 square miles, mostly contiguous with the city limits. Through its Water Enterprise Fund, the City manages water resources and constructs, operates, maintains, repairs, and replaces water system facilities as needed to provide water service in compliance with applicable standards and regulations.

The City currently depends on two sources of supply – pumped groundwater managed by the Orange County Water District (OCWD) and purchased import water from Metropolitan Water District of Southern California (MWD). Historically, the City limits its groundwater use in conformance with OCWD regulations. The limit was recently raised to 85% of total water demands, but due to recent regulation related to PFAS, the City is unable to reach this target and is currently pumping as low as 40%. The city is actively working to bring pumped water levels back to an acceptable level, projecting that an average of 75% of water demand will be met by pumped water over the next five years.

1.2 OBJECTIVES
The primary objectives of this Study are to:

I. Develop a multi-year financial management plan that provides for the City’s water infrastructure capital funding needs;
II. Identify future rate adjustments to water rates that will ensure adequate revenues to meet the Water Fund’s ongoing financial requirements;
III. Determine the cost of providing water service to customers using industry accepted methodologies; and
IV. Recommend specific rate structures that equitably recover the cost of service while minimizing the financial impact to ratepayers and comporting with industry practices and legal requirements.

This report has been organized into the revenue sufficiency analysis (financial plan), cost of service/rate design, and rate recommendations.

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1.3 STUDY DRIVERS
The following describes the drivers that initiated the need for this Study, and a general description of the solutions that were used to address those challenges.

Driver: The 2019 Rate Study adopted a rate schedule through the 2023-24 fiscal year.

Solution: Update the Water Fund financial plan and rates to meet the revenue needs over the next five years.

Solution: Adjust water rates to meet revenue sufficiency and establish a sustainable path forward for the Water Fund to meet operating and capital needs.

Solution: Include in the financial plan an increase in capital spending to address the system’s pipe replacement needs and replacement of other critical infrastructure.

Solution: Conduct a full cost-of-service allocation analysis and make rate structure modifications, as appropriate, to support inter- and intra-class equity in rates charged to customers.

1.4 STUDY METHODOLOGY
This Study applied methodologies that are aligned with industry standard practices for rate setting as promulgated by the American Water Works Association (AWWA) and in accordance with the latest understanding of applicable law, including California Constitution Article XIII D, Section 6(b), commonly known as Proposition 218.

The Study began with a revenue sufficiency analysis (RSA) involving the development of a multi-year financial management plan that determined the level of annual rate revenue required to cover projected annual operating expenses, debt service (including coverage targets), and capital cost requirements while maintaining adequate reserves. This portion of the Study was tailored to reflect the Water Fund’s financial dynamics and latest available data for the water utility’s operations to develop a long-term financial management plan, inclusive of projected annual revenue requirements and corresponding annual rate adjustments. Revenue 2025 Water Rate Study Draft Report
Introduction

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requirements calculated during the RSA for Fiscal Year1 ending June 2026 (FY 2026) were then used to perform a detailed cost-of-service allocation (COSA) analysis. The COSA analysis and rate structure design were conducted based upon principles outlined by the AWWA, legal requirements (Proposition 218) and other generally accepted industry practices to develop rates that reflect the cost of providing service.

1 Fiscal years are indicated by their ending years. For example, FY 2026 starts on July 1, 2025 and ends on June 30, 2026.

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Financial Plan

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2 FINANCIAL PLAN
This section presents the financial management plan and corresponding plan of water rate adjustments developed in the RSA, including a description of the source data, assumptions, and policies reflected in the RSA. Appendix A includes detailed schedules supporting the financial plan discussed herein.

During the RSA, Stantec reviewed alternative multi-year financial management plans and resulting water rate revenue adjustments through several interactive work sessions with City staff and the Infrastructure and Natural Resources Advisory Committee (INRAC). As a result of this process, the Study has produced a proposed financial plan that aims to allow the Water Fund to meet its respective revenue requirements and financial performance objectives throughout the projection period while striving to minimize rate increases.

2.1 DATA & ASSUMPTIONS
The City provided historical and budgeted financial information associated with operation of the water system, including a multi-year capital improvement program (CIP) and outstanding debt service obligations and covenants. City staff also assisted in providing other assumptions and policies, such as water demands and customer growth, debt service coverage requirements, operating and capital reserve targets, earnings on invested funds, and escalation rates for operating costs (all of which are described in the following subsections). Because the Study commenced prior to the end of FY 2025, provided data reflected FY 2025 beginning balances and budgets with projections of revenues, expenses and capital plans to formulate the financial forecast. The following sections present the key source data relied upon in conducting the RSA.

2.1.1 BEGINNING FUND BALANCES
The ending cash balances for FY 2024 were used to establish the FY 2025 beginning balances, as outlined in Table 1.

Table 1: FY 2025 Beginning Cash Balance
Fund Balance Cash and Cash
Equivalents
Total Current Assets $ 131,653,540
CIP Projects-Carryover ($26,303,572)
Net Investment in Capital Assets ($88,611,133)
FY 2025 Beginning Balance $ 16,738,8352

2 $14,000,000 of the total FY 2025 Beginning balance is considered Contingency by the City of Fullerton. 2025 Water Rate Study Draft Report
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2.1.2 CUSTOMER GROWTH & VOLUME FORECAST
The Water Fund has generated limited revenues from Frontage Charges3 assessed to new customers connecting to the system. This fact, in conjunction with the fact that the City is nearly fully built out and recently observed trends in the City’s population growth, led to zero projected growth in accounts over the projection period.

Forecasting the future usage of water is a perennial challenge for water utilities. Figure 1 presents a thirteen-year history of the City’s water production and sales. Water production from the two sources of supply is illustrated by the orange (OCWD supply) and black (MWD supply) shading. Monthly water sales are depicted by the blue line. This figure indicates water sales have leveled in recent years after a period of sales reductions. As a result, this Study assumes that per-account water usage for the City will remain flat over the course of the study period.

Figure 1: Historical Water Production and Total Sales

3 Frontage Charges are also known as connection fee or developer impact fee. In the case of the Water Enterprise, the charge is assessed based on the length of the property frontage.

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2.1.3 RATE REVENUES
Rate revenue is the revenue generated from customers for water service. The Water Fund receives rate revenue in the form of fixed charges (currently referred to as the “Fixed Meter Charge”) and consumption-based variable charges (currently referred to as the “Water Usage Rate”). Rate revenue in the financial plan is based on:
 FY 2025 budgeted revenues, adjusted annually to reflect assumed customer growth;  Changes in water demand; and
 Rate revenue adjustments that are proposed by this Study.

Actual revenues and changes in water demand are assumed to remain flat, as previously explained. Budgeted and projected revenues are listed in detail in Schedule 1 of Appendix A4.

2.1.4 NON-RATE REVENUES
In addition to rate revenue, the Water Fund receives a limited amount of non-rate revenue related to miscellaneous service fees, cell tower rental revenues, and interest revenue on investments. Projections of all non-rate revenues were based on FY 2025 budgeted revenues with the exception of interest income which was calculated annually based upon projected average fund balances and assumed interest rates (see Section 2.1.8). Budgeted and projected non-rate revenues are listed in detail in Schedule 1 of Appendix A.

2.1.5 EXPENSES
The Water Fund’s expenses include all operating and maintenance expenses, debt service requirements, and capital spending. Future operating expenses were projected based upon the budgeted expenditures from FY 2025, adjusted for inflation (see Section 2.1.6). Budgeted expense categories for FY 2025 are depicted in Figure 2. Budgeted and projected operating and debt expenses are listed in detail in Schedule 2 of Appendix A while capital expenses are discussed in Section 2.1.7 and detailed in Schedule 3.

4 The rate revenue in Schedule 1 includes the proposed rate adjustment proposed by this Report, as described in Section 2.2.

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Financial Plan

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Figure 2: FY 2025 Budgeted Expense Categories
The Water Fund’s outstanding debt includes a 2014 Series Refunding Water Revenue Bond that will be fully repaid in FY 2033 and a BAPCC Energy Equipment Loan that will be fully repaid in FY 2040. The corresponding annual debt service for this issuance is identified in Schedule 2.

2.1.6 COST ESCALATION
Annual cost escalation factors for the various types of expenses were developed based upon a review of historical inflation trends, published inflation forecasts, industry experience, and detailed discussions with City staff. Table 2 summarizes the cost escalation factors used to project assumed increases across all expense categories.

Table 2: O&M Cost Escalation Factors

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Financial Plan

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2.1.7 CAPITAL IMPROVEMENT PROGRAM
Like many utilities around the state and country, the City is currently facing challenges of aging infrastructure. The City constructs, operates, maintains, and repairs 15 reservoirs, 9 wells, 13 pump stations, and other assets required to provide clean drinking water to its customers. Many of these wells, pump stations, and reservoirs were constructed in the 1950’s and 1960’s and have reached the end of their useful service life. The City has prioritized critical infrastructure improvements based upon the Water Master Plan completed in early calendar year 2025.

Critical infrastructure improvements include, but are not limited to, replacement and improvements of groundwater wells that provide the source of lower cost groundwater, tank improvements, and pump station improvements.

Over 50% of the Water System’s approximate 430 miles of water distribution pipes are over 50 years old. The majority of the old pipes are made of cast iron, are susceptible to corrosive soils, and have an expected useful life of 50 years. The City often experiences over 100 water main breaks per year, which is among the highest rate of breaks per 100 miles of pipe in Orange County. These pipe breaks create inconveniences to residents and local businesses, they are expensive to repair, they damage homeowners’ properties in extreme cases, and consequently they are a drain on the City’s financial and staffing resources. The number of breaks have gone down since the investment from the 2019 Study, but continued investment is needed to bring the number even lower and to keep them at a manageable level.

The City recognizes the need for pipe replacement to decrease the frequency of pipe breaks.

Pipe replacement and other critical infrastructure improvements highlighted in the City’s Water Master Plan were incorporated into this Study.

City staff evaluated multiple alternative CIP project schedules spanning the period from FY 2026 through FY 2035. These CIP alternatives were evaluated with the goal of balancing the need to address critical infrastructure deficiencies while minimizing water rate increases. The final recommended CIP totaled approximately $269 million (in current dollars) over the 10-year period of FY 2026 through FY 2035. This CIP includes a ramp-up in spending on water main replacement, reaching the goal of seven miles per year in pipe replacement by FY 2030. Seven miles of pipeline replacement per year would result in replacing the entire distribution system over the course of approximately 60 years. This 60-year target allows the City to replace the oldest and most vulnerable pipes in the near future, and to continue proactively replacing pipelines as the system ages.

A detailed list of repair and replacement projects and associated costs is provided in Schedule 3 of Appendix A. It should be noted that capital spending forecasts beyond a 5-year planning horizon are highly uncertain, as was evident in the supply chain challenges and inflation that occurred after the 2019 Water Rate Study. As a result, this study is primarily concerned with the capital spending forecasts within the next five years. As reflected in Section 2.1.6, the RSA includes an annual cost escalation factor for capital costs. 2025 Water Rate Study Draft Report
Financial Plan

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2.1.8 INTEREST EARNINGS ON INVESTED FUNDS
This Study assumes that all such interest earnings will be retained by the Water Fund beginning in FY 2025. The RSA reflects interest earnings on invested funds at a rate of 1.18%, estimated based on the most recent year of interest earnings and to reflect a conservative estimate of returns on invested balances.

2.1.9 RESERVE TARGETS
Targeted cash reserves for utilities are balances retained for specific cash flow needs. The target for reserves is an important component when developing a multi-year financial plan; utilities rely on the reserves for financial stability, credit rating agencies evaluate utilities in part on their adherence to formally adopted reserve targets, and lending agencies require utilities to maintain specific debt reserves for outstanding loans.

The Administrative Services Department has been maintaining two reserves and this Study continues the same recommendations, which are as follows:

Operating & Maintenance Reserve – sets a target minimum balance equal to 120-days (4 months) of annual operating expenses excluding water supply costs. Water supply costs are excluded from the reserve because this Study is proposing to continue the City’s pass-through policy that allows the Water Fund to recover changes in these costs. This reserve supports continuity of service in the event of short-term changes in cash flow or sudden increases in operating costs. Because this reserve target is set relative to the Water Fund’s operating budget, the target will change as the expenses change. The Water Fund’s FY 2025 budget for O&M expenses, less water supply costs, totals about $18.6 million, resulting in an Operating Reserve balance of about $6.2 million.

Repair, Renewal, and Replacement (3R) Capital Reserve – sets an additional reserve target equal to one percent of the value of all buried infrastructure (e.g. water distribution system). This reserve balance was previously maintained at a target of $5.7 million following the last study.

The valuation of buried assets was reviewed and updated using the latest list of fixed assets, bringing replacement costs into current-year dollars. The updated valuation produced a total value for buried assets of $780 million, thereby yielding a 3R Capital Reserve target of $7.8 million in FY 2025 with an inflation factor applied each year after.

The target levels of the above policies are consistent with 1) Stantec’s industry experience for similar systems, 2) the findings of reserve studies conducted by the AWWA, and 3) a healthy level of reserves for a municipal utility system per the evaluation criteria published by the municipal utility rating agencies (e.g. Fitch, Moody’s, and Standard & Poor’s). This Study recommends that these reserve targets be adopted by the City as formal policies. Once the reserve targets are established, they should be reviewed annually during the budgeting process to monitor current levels and assure conformance with stated policies and practices. Decisions can be made to maintain, increase, or spend down reserve balances, as appropriate, depending upon the impact of such decisions to the upcoming budget period. 2025 Water Rate Study Draft Report
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For purposes of this Study, the City’s existing reserve practices have been incorporated into the RSA5. The total reserve target by year is shown in Schedule 4 of Appendix A.

2.1.10 FUTURE BORROWING ASSUMPTIONS
This Study does not propose the issuance of new debt.

2.1.10.1 DEBT COVERAGE
The existing 2014 Water Revenue Bond and BAPCC Energy Equipment Loan has a debt service coverage (DSC) ratio requirement of 1.25. Based on published guidance from Fitch Ratings6, utility systems with midrange financial profiles should maintain a DSC greater than

1.50 times annual debt service. As such, Stantec ensured that a DSC ratio of at least 1.50 was maintained throughout the projection period to enable the City to access favorable terms from the debt market should the need arise.

2.2 PROPOSED RATE REVENUE INCREASES
All of the above information was used to produce a ten-year projection of the sufficiency of revenues to meet current and projected financial requirements and determine the level of rate revenue increases necessary in each year of the projection period.

Based upon the previously discussed financial data, assumptions, and policies, Stantec proposes a financial strategy of rate adjustments over the next five years, as detailed in Table

3. Table 3: Recommended Water Rate Revenue Increase
Rate Adjustment Date Rate Adjustment
April 1, 2026 5.0%
April 1, 2027 12.0%
April 1, 2028 12.0%
April 1, 2029 12.0%
April 1, 2030 7.0%

5 The City’s reserve policies are guidelines used by the Administrative Services Department, and not formally adopted as resolutions. Stantec recommends that the existing guidelines be adopted as policies in order to strengthen the City’s image in the eyes of rating agencies.

6 Fitch Ratings. US Water and Sewer Rating Criteria.

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2025 Water Rate Study Draft Report
Financial Plan
The numbers provided in Schedule 4 are summarized graphically in Figure 3, which shows that cash reserves and DSC targets are maintained over the course of the rate setting period for this Study.

Figure 3: Financial Projection with Recommended Rate Increases The near-term increases in rate revenue are necessary in order to support the new level of capital investment in the water system’s infrastructure (see Section 2.1.7). As shown in FY 2031 of Figure 3, it is projected that approximately inflationary increases will be necessary after the increase in April of FY 2030 (the final year of the current rate-setting period), barring unforeseen emergencies or changes in infrastructure/operational needs. It is important to note that the above rate increases do not include the Pass-Through policy, as described in Section

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3 COST-OF-SERVICE ALLOCATION
The Cost-of-Service Allocation (COSA) analysis is intended to evaluate the cost of providing water service, and to allocate those costs to customer classes and rate structure components to enable the proposed rate structure to be aligned with costs to provide service. This is done in order to be equitable among the City’s ratepayers and to comply with Proposition 218, which requires water rates to be proportionate to the cost of providing water service. This Study employed well-established industry practices as recognized by the AWWA and other accepted industry standards. The following section presents a detailed description of the COSA methodology and corresponding results.

This Study employed a method that is consistent with the “commodity-demand” COSA methodology promulgated in AWWA’s Manual M1: Principles of Water Rates, Fees, and Charges (M1), though this study excludes elements related to customer class peaking characteristics due to a lack of data regarding each customer class’s unique peak demands.

With this approach, costs are first allocated to three functional categories: Source of Supply, Account, and Utility. Unit costs are then used to distribute system costs to the various components of the rate structure (see Section 4).

3.1 PROCESS
The COSA was conducted based upon the Water Fund’s FY 2026 (“Test Year”) annualized expenditure and revenue requirements per the RSA, and included the steps illustrated in Figure

4. Figure 4: Financial Projection with Recommended Rate Increases Summary Test Year Costs (FY 2026)
Operating Expenses
Debt Costs
Cash Funded Capital
Step 1Allocate Costs to System Functions
Source of Supply
Purchased Water
Conservation
Distribution
Pumping
Storage
Treatment
Customer Service
Step 2Assign Functionalized Costs to Cost Groups
Source of Supply
Utility
Customer
Step 3Credit Non-Rate Revenue to Unit Costs
Interest Income
Other Operating Revenue
Use of Fund Balance
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The following sub-sections give a detailed description of the COSA methodology and summary results, while Appendix B includes a detailed schedule of cost allocation that support those results.

3.1.1 STEP 1: ALLOCATE COSTS TO SYSTEM FUNCTIONS
The operating expenses, debt service, and cash-funded capital requirements within the water system were distributed to specific activities or "Functional Components” of service.

Operating and capital expenses were assigned to specific system functions based on Stantec’s experience and the knowledge of City staff. A summary of cost functionalization is presented in Table 4. While many costs can be allocated directly to a functional component (e.g. Source of Supply costs are allocated to the Source of Supply function), some costs are divided among multiple Functional Components. For example, costs that are best allocated based on the proportionate value of the system’s Capital Assets were allocated based on the book value of existing assets. Furthermore, Engineering-related costs were also allocated based on the book value of existing assets, while excluding the functional categories of General & Admin and Meters & Services. Finally, the Engineering with Conservation category was allocated in the same manner as Engineering, but with 10% being allocated to Conservation (based on estimates provided by City Staff). This last category was created to separate employee-based conservation costs from other employee costs.

The detailed summary of all Test Year budget cost allocations to Functional Components is presented in Schedule 5 of Appendix B. Note that General & Administration costs are distributed among the other Functional Components using the indirect cost allocation method at the bottom of Schedule 5.

Table 4: Allocation of Cost Categories to Functional Components

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3.1.2 STEP 2: DESIGNATE FUNCTIONAL COMPONENTS TO COST
GROUPS
After functionalizing the Water Fund’s expenses, the costs associated with each functional component were designated to specific cost groups in order to create the foundation for developing rates that are directly aligned with the cost to provide service (as required by Proposition 218). These groupings are shown in Table 5. The Source of Supply Cost grouping is made up of the Purchased Water expense7, Conservation expense8 and Source of Supply expense. The Account Costs grouping represents Customer Service costs. Lastly, the Utility Cost grouping is made up of the remaining functional components, including Water Treatment, Transmission & Distribution, Pumping9, Storage, and Meters & Services.

To repeat the above in simple terms, Schedule 5 show how over 300 budget line items are assigned to one of the “cost categories” listed in Table 4 thereby allocating each budget cost to a “functional component”. For example, the Debt Service line item in Schedule 5 is assigned to the “Fixed Asset” cost category and therefore the costs are distributed to the functional components as shown in Table 4 (i.e. 92.9% of the debt service costs are allocated to the Transmission & Distribution functional component). Next, as part of “Step 2” the various functional components are further organized into Cost Groups (see Table 5).

Table 5: Grouping System Functions into Cost Groups

7 For the purposes of this Study, “Purchased Water” refers to both the water supply which is procured from MWD as well as the fee paid to OCWD for the right to pump groundwater.

8 Water conservation is considered to be a source of water supply in an Urban Water Management Plan and the conservation costs are used to create the rate structure as described in Section 4. 9 For purposes of this Report, Pumping refers only to costs associated with the pumping infrastructure assets.

Pumping energy costs are included in the Purchased Water category given the need to pump the groundwater from OCWD.

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3.1.3 STEP 3: CREDIT NON-RATE REVENUE & CHANGE IN FUND

BALANCE
The final step of the COSA is to calculate the rate revenue requirement by Cost Group by crediting other sources of revenue. Non-rate revenue is used to offset costs that would otherwise need to be recovered through rates. Non-rate revenue includes interest income, cell tower rental revenue, and other operating revenue (such as miscellaneous fees). Similarly, the “Use of Fund Balance” during the Test Year is also incorporated into the revenue requirement in order to account for contributions to the cash reserves during the Test Year that can be used to pay for future capital costs. Both non-rate revenue and the change in fund balance were allocated equitability among the Cost Groups in proportion to the functionalized expenses of each group. These adjustments are shown below in Table 6 and yield the total rate revenue requirement.

Table 6: Rate Revenue Requirement
Cost Group
Utility Source of
Supply Customer Total
Total Functionalized Expenses $19,910,428 $31,642,581 $1,481,728 $53,034,737 Less Other Revenue ($1,028,558) ($1,634,632) ($76,545) ($2,739,735) Less Use of Fund Balance $1,179,170 $1,873,992 $87,753 $3,140,915 Rate Revenue Requirement $20,061,040 $31,881,940 $1,492,936 $53,435,916 Allocation Percentage 37.5% 59.7% 2.8%

The manner in which the Cost Groups are used in the rate design will be described in Section

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4 RATE STRUCTURE
Upon completion of the COSA, a rate structure analysis was performed to evaluate rate structure modifications and calculate specific rate schedules for implementation. The complete schedule of proposed rates effective April 1, 2026, through April 1, 2030 are detailed in Schedule 6 through Schedule 10.

The rate structure proposed by this Study is designed to:
 Fairly and equitably recover costs through rates;
 Conform to accepted industry practice and legal requirements; and  Provide fiscal stability and recovery of system fixed costs.

Revenue requirements allocated to the Cost Groups discussed in Section 3.1.3 were allocated to the customer classes and rate components based on the units of service. It should be noted that the rate revenue requirements used to calculate the new rates was adjusted to reflect a full year of the 5% rate increase that will go into effect April 1, 2026. This adjustment was made because the FY 2026 revenue requirement used as the COSA Test Year only reflects three months of increased revenue from the adjusted rates.

4.1 SYSTEM METRICS
Table 7 presents a summary of the units of service used during the rate design. Customer units of service from calendar year 2022 were used as the basis for calculating rates due to inconsistencies in the data in FY 2024 and FY 2025 resulting from a change in billing systems, and because calendar year 2022 was deemed by Staff to represent a typical year of water usage.

Table 7: Customer Units of Service (2022), 10
The following sub-sections describe the basis for the recommended rate structure and a specific 5-year rate schedule for implementation on April 1, 2026 and adjusted every April 1st thereafter. 10 See Section 4.5.2 regarding the definition of meter equivalents.

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The recommended rate schedules are designed to enable each customer to pay its proportionate share of the cost to provide service.

4.2 CURRENT RATES
The City’s current rates follow a common industry practice with a two-part structure that is comprised of a fixed service charge and a consumption-based rate that varies by customer class. The Fixed Service Charge (renamed from the current Fixed Meter Charge), presented in Table 8, is scaled based on each account’s meter size (see Section 4.4) and currently recovers approximately 40% of rate revenue.

Table 8: Current Fixed Service Charge

The Water Usage Rate is assessed based on actual water usage and the rate varies by customer class. Single family and multi-family residential customers pay inclining block rates with three tiers and receive water allocations as summarized in Table 9. The multi-family tier allocations are scaled based on a per-housing unit basis, allowing accounts with, say, five housing units to use five times the stated tier allocation for multi-family residential accounts.

Table 9: Current Tiered Residential Water Usage Rates
Non-residential customer classes currently pay a uniform rate shown in Table 10.

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Table 10: Current Non-Residential Water Usage Rate

4.3 RATE STRUCTURE COST CATEGORIES
As will be explained in detail in the following sections, the proposed rate structure is divided into components based on three cost categories: the utility’s Commodity costs, Account costs, and Utility costs as described in Section 3.1.1. The Commodity costs will be recovered through the Water Usage Rate and the Account costs and Utility costs will be recovered through the Fixed Service Charge. The details of this rate structure are presented in Figure 5.

Figure 5: Rate Structure Cost Categories

4.4 CALCULATION OF FIXED SERVICE CHARGES
As summarized in Section 3.1.2, the COSA allocated costs to the Cost Groups of “Customer”, “Utility” and “Source of Supply”. Of those groups, the Account costs and the Utility costs are fixed; therefore, those costs are proposed to be collected through the Fixed Service Charge.

The sum of these two groups accounts for 40.3% of the revenue requirement, roughly the same as the current percentage of fixed revenue (approximately 40%). The remaining 59.7% of costs are variable and are proposed to be collected through the Water Usage Rate.

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4.4.1 ACCOUNT COSTS
Account costs include costs such as billing, customer service, and account management. These costs are proportionate to the number of accounts in the system regardless of the size of the account. As such, the $1,548,282 is divided by the utility’s 31,438 accounts (and divided by 12 months) to give a per-account charge of $4.10 per month.

4.4.2 UTILITY COSTS
Utility costs are made up of expenses such as capital spending, salaries, maintenance, and other fixed operating costs. These costs are driven by the size (i.e. capacity) of the utility. As such, these costs are allocated to customers based on the demands that they place on the system, which is measured based on the size of the customer’s meter11. Details on Utility Costs are provided in Schedule 5.

A meter equivalency schedule is an industry-standard factor used to represent the relative hydraulic capacity associated with different types and sizes of meters. A meter equivalency schedule allows for indexing of each meter size in terms of multiples of the lowest common denominator (in this case a 5/8” meter).

The meter equivalency schedule that is inferred from the City’s current Fixed Service Charge is recognized by Stantec as a published or calculated equivalency schedule. This study recommends the City continue with the standard meter equivalency table based on the hydraulic flow capacity of various meter sizes (measured in gallons per minute (GPM)) as taken from AWWA’s M1 manual as shown in Table 11. In keeping with a long-standing practice at the City, the 5/8” meters and 3/4” meters are melded into a single group and assigned the capacity factor of a 3/4" meter.

Table 11: Meter Equivalencies

11 Even if a customer doesn’t typically (or ever) use the full capacity of their meter, the water system infrastructure needs to be sized to accommodate that demand should the full capacity ever be used.

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As summarized in Section 3.1.2, the revenue requirement designated as Utility costs totaled $20,804,745. Given the meter equivalency schedule described in Table 11, there are 53,271 equivalent meters in the system which yields a charge of $32.55 per equivalent meter per month. Table 12 provides the scaled Utility cost by meter size. The Fixed Service Charge is then calculated by adding the Account Charge that is constant across all meter sizes to the Utility Costs that scales by meter size. The full schedule of Fixed Service Charges for the 5-year planning horizon is presented in Schedule 6 through Schedule 10.

Table 12: Monthly Fixed Service Charge (Effective April 1, 2026)

4.5 CALCULATION OF WATER USAGE CHARGES
The following section explains how the proposed Water Usage Rates were developed based on the cost of water supply.

4.5.1 PURCHASED WATER COSTS
The $31,642,581 in Source of Supply revenue requirements (see Table 6) is largely made up of water purchase costs, and to a lesser extent water production electricity and source of supply efforts such as the City’s Conservation Program. The City has two water sources:

1. Groundwater Supply: The City pays OCWD for the right to pump groundwater, which makes up approximately 75% of the City’s water supply. Between the payments to OCWD and pumping energy costs, this groundwater composes approximately 62% of the City’s water supply costs.

2. Imported Water – Water purchased from MWD makes up the remaining 25% of the City’s water supply and accounts for 38% of the City’s water supply costs.

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A final element of the City’s water portfolio is the cost of the Conservation Program ($187,036 per year) based on the fact water conservation is considered a source of supply by Urban Water Management Plans.

4.5.2 UNIFORM RATES
The uniform rate for Year 1 (effective April 1st, 2026) that is proposed for all Non-Residential customers is calculated by dividing the total Source of Supply cost ($10.7 million) by the total water consumption of 2,316,62812 TGAL, which yields $4.62 per TGAL. Note that total Non- Residential source of supply costs, and therefore the uniform rates charge to Non- Residentialcustomers, include costs associated with the conservation program.

4.5.3 TIERED RATES
The tiered rates that are proposed in Year 1 (effective on April 1, 2026) for Single Family Residential and Multi-Family Residential accounts are based on the same costs as the uniform rate. However, the costs for the various sources of water are designed to be recovered through specific tiers by assigning the proportionate share of supply volume and supply costs to each tiered allocation and rate, respectively.

The Tier 1 rate is designed to recover the cost of OCWD rates for groundwater extraction, the electrical costs of water production, the electrical costs of distributing that volume of water, a portion of maintenance and engineering costs, and a portion of the costs of the City’s Water Quality department (see Schedule 5).

The Tier 2 rate is designed to recover the costs of purchasing imported water from MWD, the electrical costs for distributing that volume of water, a portion of maintenance and engineering costs, and a portion of the costs of the City’s Water Quality department (see Schedule 5).

The Tier 3 rate is designed to recover the cost of Tier 2 water (see above) as well as the cost of the Conservation Program since it is the customers that use the most water that create the need for the Conservation Program.

The allocation of water in each tier is based on the amount of water supply that is available from each respective source. As previously stated, 75% of the City’s water supply comes from groundwater. For single family residential accounts, 75% of the water usage by that customer class occurs below the water consumption level of 11,900 gallons. As such the Tier 1 threshold for single family residential customers is set at 11.9 TGALs per month. The remaining water consumption (above 11.9 TGALs per month) is designated as imported water costs. The final 5% of water consumption (above 29.7 TGALs for single family residential customers) is designated for Tier 3, which also pays for the cost of the Conservation Program. Figure 6 presents a graphical summary of the water and cost allocation for the tiered rates.

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Figure 6: Tiered Rate Cost and Flow Allocations
The same logic applies to the multi-family customers, although tier allocations for multi-family accounts scale with the number of housing units associated with each account. A summary of the tiered rates and tiered water allocations is provided in Table 13.

Table 13: Residential Usage Rates (Effective April 1, 2026)

The Water Usage Rates for the 5-year planning horizon are presented in Schedule 6 through Schedule 10.

4.6 PASS-THROUGH POLICY
In addition to the recommended increases in revenues shown in Section 2.2, this Study proposes to continue the Pass-Through Policy enacted by the 2019 Study in order to offset any increases in water supply costs through increases to the Water Usage Rates. The pass-through calculation does not apply to FY 2026 because revenue requirements and cost recovery were calculated based on the projected FY 2026 water supply costs.

As illustrated in Figure 7, tiered rates are adjusted based on changes to the unit costs corresponding to the water source allocated to each tier. Tier 1 rates are increased (or

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conceivably decreased) by the change in the OCWD unit costs. The OCWD unit costs (in $/TGALs) will be calculated by dividing the previous year’s total OCWD costs by the total amount of pumped groundwater. For example, a $0.09 per TGAL increase in OCWD unit costs would yield a $0.09 per TGAL increase in Tier 1 rates.

Tier 2 and Tier 3 rates are both increased (or decreased) by the change in the unit costs charged by MWD (see OCWD example above).

Because the uniform rates are calculated based on the same cost recovery, the adjustment to uniform rates is a weighted average of the rate increases for each of the tiered rates. For example, a $0.02 per TGAL increase in Tier 2 & 3 rates (due to MWD unit cost increases), paired with the $0.09 per TGAL increase in Tier 1 rates (see the example above) rates would yield a $0.07 increase in the Uniform Rate (rounded to the nearest cent).

Figure 7: Pass-Through Cost Formulas
Rate Adjustment Notification and Publication - This report advises that, pursuant to Government Code 53756, the City must give notice to ratepayers of any pass-through adjustment to water rates at least 30 days prior to the effective date of the adjustment. This can be done on the ratepayer’s invoice (for example as bill inserts sent out to all customers). It is also important to note that, due to the Pass-Through Policy, the Water Usage Rates charged by the City in FY 2027 through FY 2030 are likely to be different from rates shown in Schedule 7 through Schedule 10 (for those same years). Each year, the actual rate schedule will be a function of the Pass-Through adjustments effectuated in the prior years. As such, the Study recommends that the City continue with its existing practice of posting rate schedules at the time that they are effective (as adjusted per the Pass-Through Policy), while meeting the 30-day notification requirements stated above. This recommendation is preferred to posting Schedules 7 through Schedule 10 as they are shown in this report, due to the dynamic nature of the annual pass-through adjustments (which may create confusion for rate payers).

4.7 TEMPORARY SERVICE (CONSTRUCTION METERS)
Temporary service, also known as Construction Meters, are provided to customers who connect a temporary meter to a public fire hydrant for the purpose of providing water to a temporary project or activity. The charge for Temporary Service is based on the same rates charged to

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property-based accounts, with the exception of a three-dollar ($3.00) service charge for the use of the meter. This service charge is a reasonable estimate of the cost of administering the construction meter warehousing. The Daily Service charge in Table 14 was calculated by dividing the appropriate Fixed Charge by 30 (days in a month) and adding the service charge.

For example, a 1” Temporary Service charge is equal to $58.35 divided by 30 plus $3.00.

Table 14: Temporary Service Charge (Effective April 1, 2026)

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5 SUMMARY OF PROPOSED RATES
This Study used methodologies that are aligned with industry standard practices for rate setting as promulgated by AWWA and based on the latest understanding of applicable laws, including California’s Proposition 218. The proposed annual adjustments to the rates will allow the City to continue to provide reliable service to customers while addressing critical infrastructure deficiencies. The modifications to the rate structure will provide revenue stability, improve the defensibility of the water rates, and continue to equitably and proportionately recover costs from the customers. A complete schedule of rates over the 5-year planning period are summarized in Appendix C (Schedule 6 through Schedule 10).

It is important to note that this study proposes changes to both the total amount of rate revenue being collected by the Water Fund as well as the structure of the rates. As a result, the results of the rate changes will vary among different customers in Year 1 due to the proposed rate structure adjustments. To be clear, some customers’ bills will increase by more than rate revenue increase of 5% in Year 1, while other customer’s bills will increase by less than that amount.
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Appendix A RSA Schedules
Schedule 1 - Budgeted and Projected Cash Inflows
Schedule 2 - Budgeted and Projected Cash Outflows
Schedule 3 - Capital Improvement Program
Schedule 4 - Cash Flow Pro Forma

Appendix A
Schedule 1
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 Rate Revenue Growth Assumptions
Water
Assumed Rate Revenue Increases
1 Assumed Water Rate Increase 0.00% 5.00% 12.00% 12.00% 12.00% 7.00% 2.00% 2.00% 2.00% 2.00% 2.00% Water Rate Revenue
2 Base Rate Revenue 21,220,909$ 21,485,443$ 22,948,581$ 25,700,371$ 28,786,700$ 31,850,870$ 33,662,879$ 34,335,671$ 35,022,860$ 35,723,317$ 36,986,179$ 3 Usage Rate Revenue 31,557,090 31,950,473 34,126,270 38,218,389 42,807,993 47,364,644 50,059,239 51,059,731 52,081,632 53,123,264 55,001,236 4 Total Water Rate Revenue 52,777,999$ 53,435,916$ 57,074,851$ 63,918,760$ 71,594,693$ 79,215,513$ 83,722,118$ 85,395,403$ 87,104,492$ 88,846,581$ 91,987,415$ Other Operating Revenue
5 Fireline Meter Revenue 251,217$ 251,217$ 281,363$ 315,126$ 352,942$ 377,648$ 400,306$ 408,313$ 416,479$ 424,808$ 433,305$ 6 Sale of Maps & Publications 3,300 3,399 3,501 3,606 3,714 3,826 3,940 4,059 4,180 4,306 4,435 7 Plan Check Fees 40,000 41,200 42,436 43,709 45,020 46,371 47,762 49,195 50,671 52,191 53,757 8 Temporary Water Sales 118,400 121,952 125,611 129,379 133,261 137,258 141,376 145,618 149,986 154,486 159,120 9 Customer Service Charges 350,000 360,500 371,315 382,454 393,928 405,746 417,918 430,456 443,370 456,671 470,371 10 Water Delinquent Charges 900,000 927,000 954,810 983,454 1,012,958 1,043,347 1,074,647 1,106,886 1,140,093 1,174,296 1,209,525 11 Water System Modification Fees 13,000 13,390 13,792 14,205 14,632 15,071 15,523 15,988 16,468 16,962 17,471 12 Water Cross-Connection Inspect 5,000 5,150 5,305 5,464 5,628 5,796 5,970 6,149 6,334 6,524 6,720 13 Miscellaneous Fees/Check Fees 330 340 350 361 371 383 394 406 418 431 443 14 Water Maintenance Charges 25,500 26,265 27,053 27,865 28,700 29,561 30,448 31,362 32,303 33,272 34,270 15 Damage Repair 15,000 15,450 15,914 16,391 16,883 17,389 17,911 18,448 19,002 19,572 20,159 16 Total Other Operating Revenue 1,721,747$ 1,765,863$ 1,841,449$ 1,922,015$ 2,008,037$ 2,082,395$ 2,156,197$ 2,216,879$ 2,279,303$ 2,343,517$ 2,409,574$ Non-Operating Revenue
17 Public Works Permits 40,000$ 41,200$ 42,436$ 43,709$ 45,020$ 46,371$ 47,762$ 49,195$ 50,671$ 52,191$ 53,757$ 18 Temporary Water Permits 5,500 5,665 5,835 6,010 6,190 6,376 6,567 6,764 6,967 7,176 7,392 19 Cell Tower Rent 320,000 329,600 339,488 349,673 360,163 370,968 382,097 393,560 405,366 417,527 430,053 20 Underground Locatg Svc Impact 148,500 152,955 157,544 162,270 167,138 172,152 177,317 182,636 188,115 193,759 199,572 21 Sale of Real&Personal Property 18,000 18,540 19,096 19,669 20,259 20,867 21,493 22,138 22,802 23,486 24,190 22 Premium on Bond Sales 38,615 38,615 38,615 38,615 38,615 38,615 38,615 38,615 38,615 25,743 - 23 Miscellaneous 50,000 51,500 53,045 54,636 56,275 57,964 59,703 61,494 63,339 65,239 67,196 24 Water Purchase Pass Through - - - 1,792,542 3,596,656 5,464,628 7,787,478 10,297,128 13,008,774 15,938,863 19,105,191 25 Lease Interest Income 25,377 26,138 26,922 27,730 28,562 29,419 30,301 31,211 32,147 33,111 34,105 26 Total Non-Operating Revenue 645,992$ 664,213$ 682,981$ 2,494,854$ 4,318,879$ 6,207,359$ 8,551,332$ 11,082,740$ 13,816,796$ 16,757,095$ 19,921,454$ Interest Income
27 Unrestricted 244,539$ 309,582$ 288,701$ 249,243$ 258,121$ 289,657$ 305,488$ 277,414$ 250,860$ 244,001$ 248,003$ 28 Restricted 77 77 0 0 0 0 0 0 0 100 305 29 Total Interest Income 244,615$ 309,659$ 288,701$ 249,243$ 258,121$ 289,657$ 305,488$ 277,414$ 250,860$ 244,101$ 248,308$ 30 Total Cash Inflows 55,390,353$ 56,175,652$ 59,887,982$ 68,584,872$ 78,179,729$ 87,794,925$ 94,735,135$ 98,972,436$ 103,451,451$ 108,191,295$ 114,566,752$ Projection of Cash Inflows
Prepared by Stantec Consulting Services Inc. on 11/11/2025 36 Appendix A
Projection of Cash Outflows Schedule 2
DPO Description
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 2110-2111
Personal Services
1 2110-2111-5101 Salaries-Regular Miscellaneous 4,500$ 4,590$ 4,682$ 4,775$ 4,871$ 4,968$ 5,068$ 5,169$ 5,272$ 5,378$ 5,485$ 2 2110-2111-5110 Opt-Out/SPIL 520 530 541 552 563 574 586 597 609 621 634 3 2110-2111-5123 Health Insurance 1,560 1,685 1,820 1,965 2,122 2,292 2,476 2,674 2,887 3,118 3,368 4 2110-2111-5124 Dental Insurance 113 122 132 142 154 166 179 194 209 226 244 5 2110-2111-5125 Vision Insurance 27 29 31 34 37 40 43 46 50 54 58 6 2110-2111-5129 Other Insurance 43 44 45 46 47 47 48 49 50 51 52 7 2110-2111-5131 Workers' Compensation 510 520 531 541 552 563 574 586 598 609 622 8 2110-2111-5136 PERS Misc. - Employee Paid 169 179 190 201 213 226 240 254 269 286 303 9 2110-2111-5140 Medicare (1.45% of salary) 73 74 76 77 79 81 82 84 86 87 89 10 2110-2111-5147 Flex Credit 35 36 36 37 38 39 39 40 41 42 43 11 Total 2110-2111 7,550$ 7,810$ 8,083$ 8,372$ 8,675$ 8,996$ 9,335$ 9,693$ 10,072$ 10,473$ 10,898$ 2160-2161
Personal Services
12 2160-2165-5101 Salaries-Regular Miscellaneous 396,017$ 403,937$ 412,016$ 420,256$ 428,662$ 437,235$ 445,979$ 454,899$ 463,997$ 473,277$ 482,743$ 13 2160-2165-5123 Health Insurance 48,811 52,716 56,933 61,488 66,407 71,719 77,457 83,653 90,346 97,573 105,379 14 2160-2165-5124 Dental Insurance 1,825 1,971 2,129 2,299 2,483 2,682 2,896 3,128 3,378 3,648 3,940 15 2160-2165-5125 Vision Insurance 723 781 843 911 984 1,062 1,147 1,239 1,338 1,445 1,561 16 2160-2165-5129 Other Insurance 2,639 2,692 2,746 2,801 2,857 2,914 2,972 3,031 3,092 3,154 3,217 17 2160-2165-5131 Workers' Compensation 6,170 6,293 6,419 6,548 6,679 6,812 6,948 7,087 7,229 7,374 7,521 18 2160-2165-5136 PERS Misc. - Employee Paid 39,877 42,270 44,806 47,494 50,344 53,364 56,566 59,960 63,558 67,371 71,414 19 2160-2165-5140 Medicare (1.45% of salary) 5,792 5,908 6,026 6,147 6,269 6,395 6,523 6,653 6,786 6,922 7,060 20 2160-2165-5142 Bilingual Pay 3,432 3,501 3,571 3,642 3,715 3,789 3,865 3,942 4,021 4,102 4,184 21 2160-2165-5147 Flex Credit 27,000 27,540 28,091 28,653 29,226 29,810 30,406 31,015 31,635 32,267 32,913 22 2160-2165-6202 Auto Expense 50 51 52 53 54 55 56 57 59 60 61 23 2160-2165-6810 Benefits Admin. Allocation 15,524 15,834 16,151 16,474 16,804 17,140 17,483 17,832 18,189 18,553 18,924 Operations & Maintenance
24 2160-2165-6211 Dues & Subscriptions 536$ 548$ 561$ 576$ 590$ 605$ 620$ 635$ 651$ 667$ 684$ 25 2160-2165-6212 Training and Meetings 4,058 4,147 4,251 4,357 4,466 4,578 4,692 4,810 4,930 5,053 5,179 26 2160-2165-6301 Legal Fees 6,325 6,464 6,626 6,791 6,961 7,135 7,314 7,496 7,684 7,876 8,073 27 2160-2165-6319 Professional & Contractual Fee 97,080 99,216 101,696 104,239 106,845 109,516 112,254 115,060 117,936 120,885 123,907 28 2160-2165-6401 Supplies 5,382 5,500 5,638 5,779 5,923 6,071 6,223 6,379 6,538 6,702 6,869 29 2160-2165-6408 Postage 97,129 99,266 101,747 104,291 106,898 109,571 112,310 115,118 117,996 120,946 123,969 30 2160-2165-6423 Small Equipment/Furniture 2,858 2,921 2,994 3,069 3,145 3,224 3,305 3,387 3,472 3,559 3,648 31 2160-2165-6432 Program Expense 5,880 6,009 6,160 6,314 6,471 6,633 6,799 6,969 7,143 7,322 7,505 32 2160-2165-6443 Printing, Binding, & Duplicate 37,080 37,896 38,843 39,814 40,810 41,830 42,876 43,947 45,046 46,172 47,327 33 2160-2165-6501 Maintenance & Repairs 1,750 1,789 1,833 1,879 1,926 1,974 2,024 2,074 2,126 2,179 2,234 34 2160-2165-6608 Sewer 400 409 419 429 440 451 463 474 486 498 511 35 2160-2165-6703 Uncollectable Accounts 50,000 51,100 52,378 53,687 55,029 56,405 57,815 59,260 60,742 62,260 63,817 36 2160-2165-6714 Credit Card Merchant Fee 204,507 209,006 214,231 219,587 225,077 230,704 236,471 242,383 248,443 254,654 261,020 37 2160-2165-6717 Fees and charges 2,583 2,640 2,706 2,773 2,843 2,914 2,987 3,061 3,138 3,216 3,297 38 2160-2165-6802 Insurance Alloc - Public Liab 22,492 22,987 23,561 24,151 24,754 25,373 26,007 26,658 27,324 28,007 28,707 39 2160-2165-6804 Building Maint. Svc Alloc 40,650 41,544 42,583 43,647 44,739 45,857 47,004 48,179 49,383 50,618 51,883 40 2160-2165-6805 Custodial Services Allocation 10,015 10,235 10,491 10,753 11,022 11,298 11,580 11,870 12,167 12,471 12,783 41 2160-2165-6806 Facility Capital Repair Alloc. 4,550 4,650 4,766 4,886 5,008 5,133 5,261 5,393 5,528 5,666 5,807 42 2160-2165-6808 Vehicle Maintenance Allocation 238 243 249 256 262 268 275 2 82 289 296 304 43 2160-2165-6809 IT Services Allocation 249,852 255,349 261,732 268,276 274,983 281,857 288,904 296,126 303,529 311,118 318,896 44 Total 2160-2161 1,391,225$ 1,425,413$ 1,463,250$ 1,502,318$ 1,542,674$ 1,584,375$ 1,627,482$ 1,672,060$ 1,718,178$ 1,765,911$ 1,815,335$ 2320-2322
Personal Services
45 2320-2322-5101 Salaries-Regular Miscellaneous 21,869$ 22,306$ 22,753$ 23,208$ 23,672$ 24,145$ 24,628$ 25,121$ 25,623$ 26,135$ 26,658$ 46 2320-2322-5104 Overtime Salaries - Misc 5,300 5,406 5,514 5,624 5,737 5,852 5,969 6,088 6,210 6,334 6,461 47 2320-2322-5123 Health Insurance 1,481 1,599 1,727 1,866 2,015 2,176 2,350 2,538 2,741 2,961 3,197 48 2320-2322-5124 Dental Insurance 96 104 112 121 131 141 152 165 178 192 207 49 2320-2322-5125 Vision Insurance 47 51 55 59 64 69 75 81 87 94 101 50 2320-2322-5129 Other Insurance 150 153 156 159 162 166 169 172 176 179 183 51 2320-2322-5131 Workers' Compensation 506 516 526 537 548 559 570 581 593 605 617 52 2320-2322-5136 PERS Misc. - Employee Paid 2,126 2,254 2,389 2,532 2,684 2,845 3,016 3,197 3,389 3,592 3,807 53 2320-2322-5140 Medicare (1.45% of salary) 318 324 331 337 344 351 358 365 373 380 388 54 2320-2322-5142 Bilingual Pay 76 78 79 81 82 84 86 87 89 91 93 55 2320-2322-5147 Flex Credit 832 849 866 883 901 919 937 956 975 994 1,014 Prepared by Stantec Consulting Services Inc. on 11/11/2025 37 Appendix A
Projection of Cash Outflows Schedule 2
DPO Description
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 Operations & Maintenance
56 2320-2322-5138 PERS UAL-Misc. 4,960$ 5,258$ 5,573$ 5,907$ 6,262$ 6,638$ 7,036$ 7,458$ 7,905$ 8,380$ 8,883$ 57 2320-2322-6802 Insurance Alloc - Public Liab 8,207 8,388 8,597 8,812 9,032 9,258 9,490 9,727 9,970 10,219 10,475 58 2320-2322-6804 Building Maint. Svc Alloc 1,138 1,163 1,192 1,222 1,252 1,284 1,316 1,349 1,382 1,417 1,452 59 2320-2322-6805 Custodial Services Allocation 306 313 321 329 337 345 354 363 372 381 391 60 2320-2322-6806 Facility Capital Repair Alloc. 80 82 84 86 88 90 93 95 97 100 102 61 2320-2322-6809 IT Services Allocation 4,197 4,289 4,397 4,506 4,619 4,735 4,853 4,974 5,099 5,226 5,357 62 2320-2322-6810 Benefits Admin. Allocation 484 495 507 520 533 546 560 574 588 603 618 63 Total 2320-2322 19,372$ 19,987$ 20,670$ 21,382$ 22,123$ 22,896$ 23,700$ 24,539$ 25,414$ 26,326$ 27,277$ 2320-2323
Personal Services
56 2320-2323-5101 Salaries-Regular Miscellaneous 844,534 861,425 878,653 896,226 914,151 932,434 951,082 970,104 989,506 1,009,296 1,029,482 64 2320-2323-5102 Wages - Nonregular 30,000 30,600 31,212 31,836 32,473 33,122 33,785 34,461 35,150 35,853 36,570 65 2320-2323-5104 Overtime Salaries - Misc 6,000 6,120 6,242 6,367 6,495 6,624 6,757 6,892 7,030 7,171 7,314 66 2320-2323-5110 Opt-Out/SPIL 2,600 2,652 2,705 2,759 2,814 2,871 2,928 2,987 3,046 3,107 3,169 67 2320-2323-5123 Health Insurance 35,559 38,404 41,476 44,794 48,378 52,248 56,428 60,942 65,817 71,083 76,769 68 2320-2323-5124 Dental Insurance 3,129 3,379 3,650 3,942 4,257 4,598 4,965 5,363 5,792 6,255 6,755 69 2320-2323-5125 Vision Insurance 1,912 2,065 2,230 2,409 2,601 2,809 3,034 3,277 3,539 3,822 4,128 70 2320-2323-5129 Other Insurance 5,812 5,928 6,047 6,168 6,291 6,417 6,545 6,676 6,810 6,946 7,085 71 2320-2323-5131 Workers' Compensation 20,816 21,232 21,657 22,090 22,532 22,983 23,442 23,911 24,389 24,877 25,375 72 2320-2323-5136 PERS Misc. - Employee Paid 83,328 88,328 93,627 99,245 105,200 111,512 118,202 125,295 132,812 140,781 149,228 73 2320-2323-5140 Medicare (1.45% of salary) 12,283 12,529 12,779 13,035 13,296 13,561 13,833 14,109 14,391 14,679 14,973 74 2320-2323-5147 Flex Credit 26,400 26,928 27,467 28,016 28,576 29,148 29,731 30,325 30,932 31,550 32,181 Operations & Maintenance
75 2320-2323-5138 PERS UAL-Misc. 190,872 202,324 214,464 227,332 240,972 255,430 270,756 287,001 304,221 322,474 341,823 76 2320-2323-6202 Auto Expense 100 102 105 107 110 113 116 119 121 125 128 77 2320-2323-6211 Dues & Subscriptions 9,000 9,198 9,428 9,664 9,905 10,153 10,407 10,667 10,934 11,207 11,487 78 2320-2323-6212 Training and Meetings 7,400 7,563 7,752 7,946 8,144 8,348 8,557 8,771 8,990 9,215 9,445 79 2320-2323-6301 Legal Fees 10,000 10,220 10,476 10,737 11,006 11,281 11,563 11,852 12,148 12,452 12,763 80 2320-2323-6319 Professional & Contractual Fee 240,410 245,699 251,841 258,138 264,591 271,206 277,986 284,936 292,059 299,360 306,844 81 2320-2323-6332 Division of Drinking Water Fee 128,000 131,200 134,480 137,842 141,288 144,820 148,441 152,152 155,956 159,854 163,851 82 2320-2323-6401 Supplies 5,000 5,110 5,238 5,369 5,503 5,640 5,781 5,926 6,074 6,226 6,382 83 2320-2323-6408 Postage 45,500 46,501 47,664 48,855 50,076 51,328 52,612 53,927 55,275 56,657 58,073 84 2320-2323-6423 Small Equipment/Furniture 15,000 15,330 15,713 16,106 16,509 16,921 17,344 17,778 18,223 18,678 19,145 85 2320-2323-6442 Advertising & Promotion 2,000 2,044 2,095 2,147 2,201 2,256 2,313 2,370 2,430 2,490 2,553 86 2320-2323-6443 Printing, Binding, & Duplicate 3,000 3,066 3,143 3,221 3,302 3,384 3,469 3,556 3,645 3,736 3,829 87 2320-2323-6501 Maintenance & Repairs 1,600 1,635 1,676 1,718 1,761 1,805 1,850 1,896 1,944 1,992 2,042 88 2320-2323-6551 Rentals 6,500 6,643 6,809 6,979 7,154 7,333 7,516 7,704 7,896 8,094 8,296 89 2320-2323-6802 Insurance Alloc - Public Liab 290,274 296,660 304,077 311,678 319,470 327,457 335,644 344,035 352,636 361,451 370,488 90 2320-2323-6804 Building Maint. Svc Alloc 54,797 56,003 57,403 58,838 60,309 61,816 63,362 64,946 66,569 68,234 69,939 91 2320-2323-6805 Custodial Services Allocation 8,784 8,977 9,202 9,432 9,668 9,909 10,157 10,411 10,671 10,938 11,211 92 2320-2323-6806 Facility Capital Repair Alloc. 2,288 2,338 2,397 2,457 2,518 2,581 2,646 2,712 2,780 2,849 2,920 93 2320-2323-6808 Vehicle Maintenance Allocation 13,270 13,562 13,901 14,249 14,605 14,970 15,344 15,728 16,121 16,524 16,937 94 2320-2323-6809 IT Services Allocation 119,418 122,045 125,096 128,224 131,429 134,715 138,083 141,535 145,073 148,700 152,418 95 2320-2323-6810 Benefits Admin. Allocation 13,877 14,182 14,537 14,900 15,273 15,655 16,046 16,447 16,858 17,280 17,712 Capital Outlay
96 2320-2323-7400 Furniture, Equipment, & Machin 20,000 20,500 21,013 21,538 22,076 22,628 23,194 23,774 24,368 24,977 25,602 97 Total 2320-2323 2,259,463$ 2,320,493$ 2,386,252$ 2,454,363$ 2,524,932$ 2,598,076$ 2,673,917$ 2,752,581$ 2,834,205$ 2,918,934$ 3,006,917$ 2320-2324
Personal Services
98 2320-2324-5101 Salaries-Regular Miscellaneous 51,043 52,064 53,105 54,167 55,251 56,356 57,483 58,632 59,805 61,001 62,221 99 2320-2324-5104 Overtime Salaries - Misc 2,500 2,550 2,601 2,653 2,706 2,760 2,815 2,872 2,929 2,988 3,047 100 2320-2324-5123 Health Insurance 6,521 7,043 7,606 8,215 8,872 9,581 10,348 11,176 12,070 13,036 14,078 101 2320-2324-5124 Dental Insurance 150 162 175 189 204 220 238 257 278 300 324 102 2320-2324-5125 Vision Insurance 44 48 51 55 60 65 70 75 81 88 95 103 2320-2324-5129 Other Insurance 311 317 324 330 337 343 350 357 364 372 379 104 2320-2324-5131 Workers' Compensation 1,370 1,397 1,425 1,454 1,483 1,513 1,543 1,574 1,605 1,637 1,670 105 2320-2324-5136 PERS Misc. - Employee Paid 5,850 6,201 6,573 6,967 7,385 7,829 8,298 8,796 9,324 9,883 10,476 106 2320-2324-5140 Medicare (1.45% of salary) 742 757 772 787 803 819 836 852 869 887 904 107 2320-2324-5141 Uniform / Boot Allowance 100 102 104 106 108 110 113 115 117 120 122 108 2320-2324-5147 Flex Credit 2,250 2,295 2,341 2,388 2,435 2,484 2,534 2,585 2,636 2,689 2,743 Prepared by Stantec Consulting Services Inc. on 11/11/2025 38 Appendix A
Projection of Cash Outflows Schedule 2
DPO Description
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 Opeartions & Maintenance
109 2320-2324-5138 PERS UAL-Misc. 11,536 12,228 12,962 13,740 14,564 15,438 16,364 17,346 18,387 19,490 20,659 110 2320-2324-6211 Dues & Subscriptions 992 1,014 1,039 1,065 1,092 1,119 1,147 1,176 1,205 1,235 1,266 111 2320-2324-6212 Training and Meetings 3,618 3,698 3,790 3,885 3,982 4,081 4,183 4,288 4,395 4,505 4,618 112 2320-2324-6551 Rentals 1,000 1,022 1,048 1,074 1,101 1,128 1,156 1,185 1,215 1,245 1,276 113 2320-2324-6802 Insurance Alloc - Public Liab 55,664 56,889 58,311 59,769 61,263 62,794 64,364 65,973 67,623 69,313 71,046 114 2320-2324-6804 Building Maint. Svc Alloc 9,857 10,074 10,326 10,584 10,848 11,120 11,398 11,683 11,975 12,274 12,581 115 2320-2324-6805 Custodial Services Allocation 1,776 1,815 1,860 1,907 1,955 2,003 2,054 2,105 2,158 2,211 2,267 116 2320-2324-6806 Facility Capital Repair Alloc. 463 473 485 497 510 522 535 549 562 577 591 117 2320-2324-6807 Vehicle Replacement Reserve 2,181 2,229 2,285 2,342 2,400 2,460 2,522 2,585 2,650 2,716 2,784 118 2320-2324-6808 Vehicle Maintenance Allocation 7,293 7,453 7,640 7,831 8,027 8,227 8,433 8,644 8,860 9,081 9,308 119 2320-2324-6809 IT Services Allocation 24,332 24,867 25,489 26,126 26,779 27,449 28,135 28,838 29,559 30,298 31,056 120 2320-2324-6810 Benefits Admin. Allocation 2,806 2,868 2,939 3,013 3,088 3,165 3,245 3,326 3,409 3,494 3,581 Capital Outlay
121 2320-2324-7400 Furniture, Equipment, & Machin 15,000 15,375 15,759 16,153 16,557 16,971 17,395 17,830 18,276 18,733 19,201 122 Total 2320-2324 207,399$ 212,940$ 219,010$ 225,297$ 231,810$ 238,560$ 245,559$ 252,819$ 260,352$ 268,173$ 276,295$ 2320-2326
Operations & Maintenance
123 2320-2326-6319 Professional & Contractual Fee 30,000$ 30,660$ 31,427$ 32,212$ 33,017$ 33,843$ 34,689$ 35,556$ 36,445$ 37,356$ 38,290$ 124 2320-2326-6531 Public Safety Support 42,510 43,445 44,531 45,645 46,786 47,955 49,154 50,383 51,643 52,934 54,257 125 2320-2326-6552 Lease Payment 1,256,126 1,256,126 1,256,126 1,256,126 1,256,126 1,256,126 1,256,126 1,256,126 1,256,126 1,256,126 1,256,126 126 2320-2326-6601 MWD Water Purchased 8,000,000 8,946,357 9,669,054 10,240,354 10,701,102 11,091,371 11,844,752 12,649,305 13,508,508 14,426,072 15,405,962 127 2320-2326-6602 OCWD Water Pumped 12,000,000 13,009,291 14,119,511 15,340,753 16,684,119 18,161,822 19,731,292 21,436,388 23,288,832 25,301,356 27,487,794 128 2320-2326-6604 Telephone 420 429 440 451 462 474 486 498 510 523 536 129 2320-2326-6605 Gas 250 256 262 268 275 282 289 296 304 311 319 130 2320-2326-6606 Electricity 4,500 4,599 4,714 4,832 4,953 5,076 5,203 5,333 5,467 5,603 5,744 131 2320-2326-6607 Water Pumping Power 1,950,000 1,992,900 2,042,723 2,093,791 2,146,135 2,199,789 2,254,783 2,311,153 2,368,932 2,428,155 2,488,859 132 2320-2326-6609 City Department Water Usage 13,200 13,490 13,828 14,173 14,528 14,891 15,263 15,645 16,036 16,437 16,848 133 2320-2326-6709 Property Tax 20,400 20,849 21,370 21,904 22,452 23,013 23,589 24,178 24,783 25,402 26,037 134 2320-2326-6717 Fees and charges 2,400 2,453 2,514 2,577 2,641 2,707 2,775 2,844 2,916 2,988 3,063 135 2320-2326-6718 Public Street Rt-Of-Way Impact 222,260 227,150 232,828 238,649 244,615 250,731 256,999 263,424 270,010 276,760 283,679 136 Total 2320-2326 23,542,066$ 25,548,004$ 27,439,328$ 29,291,736$ 31,157,212$ 33,088,081$ 35,475,400$ 38,051,130$ 40,830,510$ 43,830,024$ 47,067,514$ 2410-2411
Personal Services
137 2410-2411-5101 Salaries-Regular Miscellaneous 274,329 279,816 285,412 291,120 296,943 302,881 308,939 315,118 321,420 327,849 334,406 138 2410-2411-5102 Wages - Nonregular 6,100 6,222 6,346 6,473 6,603 6,735 6,870 7,007 7,147 7,290 7,436 139 2410-2411-5104 Overtime Salaries - Misc 3,000 3,060 3,121 3,184 3,247 3,312 3,378 3,446 3,515 3,585 3,657 140 2410-2411-5110 Opt-Out/SPIL 476 486 495 505 515 526 536 547 558 569 580 141 2410-2411-5123 Health Insurance 21,295 22,999 24,838 26,826 28,972 31,289 33,792 36,496 39,416 42,569 45,974 142 2410-2411-5124 Dental Insurance 920 994 1,073 1,159 1,252 1,352 1,460 1,577 1,703 1,839 1,986 143 2410-2411-5125 Vision Insurance 343 370 400 432 467 504 544 588 635 686 741 144 2410-2411-5129 Other Insurance 1,821 1,857 1,895 1,932 1,971 2,011 2,051 2,092 2,134 2,176 2,220 145 2410-2411-5131 Workers' Compensation 6,817 6,953 7,092 7,234 7,379 7,527 7,677 7,831 7,987 8,147 8,310 146 2410-2411-5136 PERS Misc. - Employee Paid 26,459 28,047 29,729 31,513 33,404 35,408 37,533 39,785 42,172 44,702 47,384 147 2410-2411-5139 Retirement - Nonregular 205 209 213 218 222 226 231 235 240 245 250 148 2410-2411-5140 Medicare (1.45% of salary) 4,033 4,114 4,196 4,280 4,365 4,453 4,542 4,633 4,725 4,820 4,916 149 2410-2411-5143 Auto Allowance 3,304 3,370 3,437 3,506 3,576 3,648 3,721 3,795 3,871 3,949 4,028 150 2410-2411-5147 Flex Credit 9,772 9,967 10,167 10,370 10,578 10,789 11,005 11,225 11,449 11,678 11,912 151 2410-2411-8997 CIP Costs Allocation (5,977) (6,097) (6,218) (6,343) (6,470) (6,599) (6,731) (6,866) (7,003) (7,143) (7,286) Operations & Maintenance
152 2410-2411-5138 PERS UAL-Misc. 59,761 63,347 67,147 71,176 75,447 79,974 84,772 89,858 95,250 100,965 107,023 153 2410-2411-6211 Dues & Subscriptions 500 511 524 537 550 564 578 593 607 623 638 154 2410-2411-6212 Training and Meetings 4,000 4,088 4,190 4,295 4,402 4,512 4,625 4,741 4,859 4,981 5,105 155 2410-2411-6401 Supplies 4,500 4,599 4,714 4,832 4,953 5,076 5,203 5,333 5,467 5,603 5,744 156 2410-2411-6408 Postage 975 996 1,021 1,047 1,073 1,100 1,127 1,156 1,184 1,214 1,244 157 2410-2411-6423 Small Equipment/Furniture 1,000 1,022 1,048 1,074 1,101 1,128 1,156 1,185 1,215 1,245 1,276 158 2410-2411-6501 Maintenance & Repairs 6,240 6,377 6,537 6,700 6,868 7,039 7,215 7,396 7,581 7,770 7,964 159 2410-2411-6605 Gas 5,000 5,110 5,238 5,369 5,503 5,640 5,781 5,926 6,074 6,226 6,382 160 2410-2411-6606 Electricity 30,000 30,660 31,427 32,212 33,017 33,843 34,689 35,556 36,445 37,356 38,290 161 2410-2411-6802 Insurance Alloc - Public Liab 73,262 74,874 76,746 78,664 80,631 82,647 84,713 86,831 89,001 91,226 93,507 162 2410-2411-6804 Building Maint. Svc Alloc 4,177 4,269 4,376 4,485 4,597 4,712 4,830 4,951 5,074 5,201 5,331 163 2410-2411-6805 Custodial Services Allocation 632 646 662 679 696 713 731 749 768 787 807 164 2410-2411-6806 Facility Capital Repair Alloc. 478 489 501 513 526 539 553 567 581 595 610 165 2410-2411-6808 Vehicle Maintenance Allocation 2,216 2,265 2,321 2,379 2,439 2,500 2,562 2,626 2,692 2,759 2,828 166 2410-2411-6809 IT Services Allocation 63,867 65,272 66,904 68,576 70,291 72,048 73,849 75,696 77,588 79,528 81,516 167 2410-2411-6810 Benefits Admin. Allocation 4,321 4,416 4,526 4,640 4,756 4,875 4,996 5,121 5,249 5,381 5,515 168 Total 2410-2411 613,826$ 631,307$ 650,079$ 669,588$ 689,872$ 710,972$ 732,930$ 755,792$ 779,605$ 804,421$ 830,294$ Prepared by Stantec Consulting Services Inc. on 11/11/2025 39 Appendix A
Projection of Cash Outflows Schedule 2
DPO Description
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 2410-2413
Personal Services
169 2410-2413-5101 Salaries-Regular Miscellaneous 57,058$ 58,199$ 59,363$ 60,550$ 61,761$ 62,997$ 64,257$ 65,542$ 66,853$ 68,190$ 69,553$ 170 2410-2413-5110 Opt-Out/SPIL 104 106 108 110 113 115 117 119 122 124 127 171 2410-2413-5123 Health Insurance 9,570 10,336 11,162 12,055 13,020 14,061 15,186 16,401 17,713 19,130 20,661 172 2410-2413-5124 Dental Insurance 206 222 240 260 280 303 327 353 381 412 445 173 2410-2413-5125 Vision Insurance 66 71 77 83 90 97 105 113 122 132 142 174 2410-2413-5129 Other Insurance 334 341 347 354 362 369 376 384 391 399 407 175 2410-2413-5131 Workers' Compensation 2,225 2,270 2,315 2,361 2,408 2,457 2,506 2,556 2,607 2,659 2,712 176 2410-2413-5136 PERS Misc. - Employee Paid 5,280 5,597 5,933 6,289 6,666 7,066 7,490 7,939 8,416 8,920 9,456 177 2410-2413-5140 Medicare (1.45% of salary) 832 849 866 883 901 919 937 956 975 994 1,014 Operations & Maintanance
178 2410-2413-5138 PERS UAL-Misc. 12,819$ 13,588$ 14,403$ 15,268$ 16,184$ 17,155$ 18,184$ 19,275$ 20,432$ 21,657$ 22,957$ 179 2410-2413-5141 Uniform / Boot Allowance 151 154 158 162 166 170 175 179 183 188 193 180 2410-2413-5147 Flex Credit 3,344 3,418 3,503 3,591 3,680 3,772 3,867 3,963 4,062 4,164 4,268 181 2410-2413-6401 Supplies 1,500 1,533 1,571 1,611 1,651 1,692 1,734 1,778 1,822 1,868 1,915 182 2410-2413-6802 Insurance Alloc - Public Liab 18,233 18,634 19,100 19,577 20,067 20,569 21,083 21,610 22,150 22,704 23,271 183 2410-2413-6804 Building Maint. Svc Alloc 1,783 1,822 1,868 1,914 1,962 2,011 2,062 2,113 2,166 2,220 2,276 184 2410-2413-6805 Custodial Services Allocation 466 476 488 500 513 526 539 552 566 580 595 185 2410-2413-6807 Vehicle Replacement Reserve 6,094 6,228 6,384 6,543 6,707 6,875 7,046 7,223 7,403 7,588 7,778 186 2410-2413-6808 Vehicle Maintenance Allocation 7,817 7,989 8,189 8,393 8,603 8,818 9,039 9,265 9,496 9,734 9,977 187 2410-2413-6809 IT Services Allocation 6,720 6,868 7,040 7,216 7,396 7,581 7,770 7,965 8,164 8,368 8,577 188 2410-2413-6810 Benefits Admin. Allocation 1,486 1,519 1,557 1,596 1,635 1,676 1,718 1,761 1,805 1,850 1,897 189 Total 2410-2413 136,088$ 140,219$ 144,672$ 149,317$ 154,165$ 159,228$ 164,517$ 170,047$ 175,830$ 181,883$ 188,220$ 2410-2419
Operations & Maintenance
190 2410-2419-6319 Professional & Contractual Fee 5,000$ 5,110$ 5,238$ 5,369$ 5,503$ 5,640$ 5,781$ 5,926$ 6,074$ 6,226$ 6,382$ 191 Total 2410-2419 5,000$ 5,110$ 5,238$ 5,369$ 5,503$ 5,640$ 5,781$ 5,926$ 6,074$ 6,226$ 6,382$ 2410-2423
Personal Services
192 2410-2423-5101 Salaries-Regular Miscellaneous 3,986$ 4,066$ 4,147$ 4,230$ 4,315$ 4,401$ 4,489$ 4,579$ 4,670$ 4,764$ 4,859$ 193 2410-2423-5110 Opt-Out/SPIL 8 8 8 8 9 9 9 9 9 10 10 194 2410-2423-5123 Health Insurance 797 861 930 1,004 1,084 1,171 1,265 1,366 1,475 1,593 1,721 195 2410-2423-5124 Dental Insurance 18 19 21 23 24 26 29 31 33 36 39 196 2410-2423-5125 Vision Insurance 7 8 8 9 10 10 11 12 13 14 15 197 2410-2423-5129 Other Insurance 27 28 28 29 29 30 30 31 32 32 33 198 2410-2423-5131 Workers' Compensation 193 197 201 205 209 213 217 222 226 231 235 199 2410-2423-5136 PERS Misc. - Employee Paid 406 430 456 484 513 543 576 610 647 686 727 200 2410-2423-5140 Medicare (1.45% of salary) 60 61 62 64 65 66 68 69 70 72 73 201 2410-2423-5141 Uniform / Boot Allowance 13 13 14 14 14 14 15 15 15 16 16 202 2410-2423-5147 Flex Credit 292 298 304 310 316 322 329 335 342 349 356 Operations & Maintenance
203 2410-2423-5138 PERS UAL-Misc. 900$ 954$ 1,011$ 1,072$ 1,136$ 1,204$ 1,277$ 1,353$ 1,434$ 1,521$ 1,612$ 204 2410-2423-6802 Insurance Alloc - Public Liab 10,118 10,341 10,599 10,864 11,136 11,414 11,699 11,992 12,292 12,599 12,914 205 2410-2423-6804 Building Maint. Svc Alloc 757 774 793 813 833 854 875 897 920 943 966 206 2410-2423-6805 Custodial Services Allocation 87 89 91 93 96 98 101 103 106 108 111 207 2410-2423-6806 Facility Capital Repair Alloc. 66 67 69 71 73 74 76 78 80 82 84 208 2410-2423-6807 Vehicle Replacement Reserve 3,242 3,313 3,396 3,481 3,568 3,657 3,749 3,842 3,939 4,037 4,138 209 2410-2423-6808 Vehicle Maintenance Allocation 4,812 4,918 5,041 5,167 5,296 5,428 5,564 5,703 5,846 5,992 6,142 210 2410-2423-6809 IT Services Allocation 1,503 1,536 1,574 1,614 1,654 1,696 1,738 1,781 1,826 1,872 1,918 211 2410-2423-6810 Benefits Admin. Allocation 597 610 625 641 657 673 690 708 725 743 762 212 Total 2410-2423 22,082$ 22,602$ 23,200$ 23,816$ 24,449$ 25,100$ 25,769$ 26,458$ 27,167$ 27,897$ 28,647$ 2410-2425
Personal Services
213 2410-2425-5101 Salaries-Regular Miscellaneous 1,155,685$ 1,178,799$ 1,202,375$ 1,226,422$ 1,250,951$ 1,275,970$ 1,301,489$ 1,327,519$ 1,354,069$ 1,381,151$ 1,408,774$ 214 2410-2425-5102 Wages - Nonregular 28,300 28,866 29,443 30,032 30,633 31,245 31,870 32,508 33,158 33,821 34,498 215 2410-2425-5104 Overtime Salaries - Misc 200,000 204,000 208,080 212,242 216,486 220,816 225,232 229,737 234,332 239,019 243,799 216 2410-2425-5123 Health Insurance 164,443 177,598 191,806 207,151 223,723 241,621 260,950 281,826 304,373 328,722 355,020 217 2410-2425-5124 Dental Insurance 4,582 4,949 5,344 5,772 6,234 6,732 7,271 7,853 8,481 9,159 9,892 218 2410-2425-5125 Vision Insurance 1,722 1,860 2,009 2,169 2,343 2,530 2,733 2,951 3,187 3,442 3,718 219 2410-2425-5126 Retiree Health Insurance 6,000 6,120 6,242 6,367 6,495 6,624 6,757 6,892 7,030 7,171 7,314 220 2410-2425-5129 Other Insurance 6,939 7,078 7,219 7,364 7,511 7,661 7,814 7,971 8,130 8,293 8,459 221 2410-2425-5131 Workers' Compensation 19,478 19,868 20,265 20,670 21,084 21,505 21,935 22,374 22,822 23,278 23,744 222 2410-2425-5136 PERS Misc. - Employee Paid 109,111 115,658 122,597 129,953 137,750 146,015 154,776 164,063 173,906 184,341 195,401 223 2410-2425-5140 Medicare (1.45% of salary) 15,571 15,882 16,200 16,524 16,855 17,192 17,535 17,886 18,244 18,609 18,981 224 2410-2425-5141 Uniform / Boot Allowance 3,202 3,266 3,331 3,398 3,466 3,535 3,606 3,678 3,752 3,827 3,903 225 2410-2425-5142 Bilingual Pay 1,560 1,591 1,623 1,655 1,689 1,722 1,757 1,792 1,828 1,864 1,902 226 2410-2425-5147 Flex Credit 73,800 75,276 76,782 78,317 79,883 81,481 83,111 84,773 86,468 88,198 89,962 Prepared by Stantec Consulting Services Inc. on 11/11/2025 40 Appendix A
Projection of Cash Outflows Schedule 2
DPO Description
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 Operations & Maintenance
227 2410-2425-5138 PERS UAL-Misc. 241,483$ 255,972$ 271,330$ 287,610$ 304,867$ 323,159$ 342,548$ 363,101$ 384,887$ 407,980$ 432,459$ 228 2410-2425-6205 Uniforms & Laundry 16,950 17,323 17,756 18,200 18,655 19,121 19,599 20,089 20,591 21,106 21,634 229 2410-2425-6211 Dues & Subscriptions 2,000 2,044 2,095 2,147 2,201 2,256 2,313 2,370 2,430 2,490 2,553 230 2410-2425-6212 Training and Meetings 9,000 9,198 9,428 9,664 9,905 10,153 10,407 10,667 10,934 11,207 11,487 231 2410-2425-6319 Professional & Contractual Fee 250,000 255,500 261,888 268,435 275,146 282,024 289,075 296,302 303,709 311,302 319,084 232 2410-2425-6401 Supplies 600,000 613,200 628,530 644,243 660,349 676,858 693,780 711,124 728,902 747,125 765,803 233 2410-2425-6423 Small Equipment/Furniture 75,000 76,650 78,566 80,530 82,544 84,607 86,722 88,891 91,113 93,391 95,725 234 2410-2425-6426 Fuel & Oil 5,500 5,621 5,762 5,906 6,053 6,205 6,360 6,519 6,682 6,849 7,020 235 2410-2425-6501 Maintenance & Repairs 6,780 6,929 7,102 7,280 7,462 7,648 7,840 8,036 8,237 8,443 8,654 236 2410-2425-6508 Water/Sewer Line Repair 250,000 255,500 261,888 268,435 275,146 282,024 289,075 296,302 303,709 311,302 319,084 237 2410-2425-6551 Rentals 5,000 5,110 5,238 5,369 5,503 5,640 5,781 5,926 6,074 6,226 6,382 238 2410-2425-6802 Insurance Alloc - Public Liab 537,341 549,163 562,892 576,964 591,388 606,173 621,327 636,860 652,782 669,101 685,829 239 2410-2425-6804 Building Maint. Svc Alloc 36,107 36,901 37,824 38,769 39,739 40,732 41,750 42,794 43,864 44,961 46,085 240 2410-2425-6805 Custodial Services Allocation 4,164 4,256 4,362 4,471 4,583 4,697 4,815 4,935 5,059 5,185 5,315 241 2410-2425-6806 Facility Capital Repair Alloc. 3,144 3,213 3,293 3,376 3,460 3,547 3,635 3,726 3,819 3,915 4,013 242 2410-2425-6807 Vehicle Replacement Reserve 331,458 338,750 347,219 355,899 364,797 373,917 383,265 392,846 402,667 412,734 423,052 243 2410-2425-6808 Vehicle Maintenance Allocation 305,450 312,170 319,974 327,974 336,173 344,577 353,192 362,021 371,072 380,349 389,857 244 2410-2425-6809 IT Services Allocation 196,395 200,716 205,734 210,877 216,149 221,553 227,091 232,769 238,588 244,553 250,666 245 2410-2425-6810 Benefits Admin. Allocation 28,448 29,074 29,801 30,546 31,309 32,092 32,894 33,717 34,560 35,424 36,309 246 2410-2425-6811 Admin. Indirect Costs 169,382 173,108 177,436 181,872 186,419 191,079 195,856 200,753 205,771 210,916 216,189 Capital Outlay
247 2410-2425-7400 Furniture, Equipment, & Machin 125,000$ 128,125$ 131,328$ 134,611$ 137,977$ 141,426$ 144,962$ 148,586$ 152,300$ 156,108$ 160,011$ 248 2410-2425-7600 WtrLines,Mains,Sewer,StormDrai 140,000 143,500 147,088 150,765 154,534 158,397 162,357 166,416 170,576 174,841 179,212 249 Total 2410-2425 5,128,995$ 5,262,833$ 5,409,849$ 5,561,979$ 5,719,458$ 5,882,537$ 6,051,482$ 6,226,572$ 6,408,106$ 6,596,400$ 6,791,788$ 2410-2426
Personal Services
250 2410-2426-5101 Salaries-Regular Miscellaneous 728,603$ 743,175$ 758,039$ 773,199$ 788,663$ 804,437$ 820,525$ 836,936$ 853,675$ 870,748$ 888,163$ 251 2410-2426-5102 Wages - Nonregular 37,940 38,699 39,473 40,262 41,067 41,889 42,727 43,581 44,453 45,342 46,249 252 2410-2426-5104 Overtime Salaries - Misc 100,100 102,102 104,144 106,227 108,351 110,518 112,729 114,983 117,283 119,629 122,021 253 2410-2426-5123 Health Insurance 118,612 128,101 138,349 149,417 161,370 174,280 188,222 203,280 219,543 237,106 256,074 254 2410-2426-5124 Dental Insurance 2,932 3,167 3,420 3,693 3,989 4,308 4,653 5,025 5,427 5,861 6,330 255 2410-2426-5125 Vision Insurance 1,038 1,121 1,211 1,308 1,412 1,525 1,647 1,779 1,921 2,075 2,241 256 2410-2426-5126 Retiree Health Insurance 5,520 5,630 5,743 5,858 5,975 6,095 6,216 6,341 6,468 6,597 6,729 257 2410-2426-5129 Other Insurance 4,422 4,510 4,601 4,693 4,787 4,882 4,980 5,079 5,181 5,285 5,390 258 2410-2426-5131 Workers' Compensation 12,233 12,478 12,727 12,982 13,241 13,506 13,776 14,052 14,333 14,620 14,912 259 2410-2426-5136 PERS Misc. - Employee Paid 77,674 82,334 87,275 92,511 98,062 103,945 110,182 116,793 123,801 131,229 139,102 260 2410-2426-5140 Medicare (1.45% of salary) 10,400 10,608 10,820 11,037 11,257 11,482 11,712 11,946 12,185 12,429 12,678 261 2410-2426-5141 Uniform / Boot Allowance 2,000 2,040 2,081 2,122 2,165 2,208 2,252 2,297 2,343 2,390 2,438 262 2410-2426-5147 Flex Credit 46,350 47,277 48,223 49,187 50,171 51,174 52,198 53,242 54,306 55,393 56,500 Operations & Maintenance
263 2410-2426-5138 PERS UAL-Misc. 164,535$ 174,407$ 184,872$ 195,964$ 207,722$ 220,185$ 233,396$ 247,400$ 262,244$ 277,978$ 294,657$ 264 2410-2426-6205 Uniforms & Laundry 10,815 11,053 11,329 11,612 11,903 12,200 12,505 12,818 13,138 13,467 13,804 265 2410-2426-6211 Dues & Subscriptions 2,120 2,167 2,221 2,276 2,333 2,392 2,451 2,513 2,575 2,640 2,706 266 2410-2426-6212 Training and Meetings 4,326 4,421 4,532 4,645 4,761 4,880 5,002 5,127 5,255 5,387 5,521 267 2410-2426-6319 Professional & Contractual Fee 145,748 148,954 152,678 156,495 160,408 164,418 168,528 172,742 177,060 181,487 186,024 268 2410-2426-6401 Supplies 350,000 357,700 366,643 375,809 385,204 394,834 404,705 414,822 425,193 435,823 446,718 269 2410-2426-6423 Small Equipment/Furniture 15,000 15,330 15,713 16,106 16,509 16,921 17,344 17,778 18,223 18,678 19,145 270 2410-2426-6501 Maintenance & Repairs 125,000 127,750 130,944 134,217 137,573 141,012 144,537 148,151 151,855 155,651 159,542 271 2410-2426-6802 Insurance Alloc - Public Liab 357,924 365,798 374,943 384,317 393,925 403,773 413,867 424,214 434,819 445,690 456,832 272 2410-2426-6804 Building Maint. Svc Alloc 22,677 23,176 23,755 24,349 24,958 25,582 26,221 26,877 27,549 28,238 28,944 273 2410-2426-6805 Custodial Services Allocation 2,615 2,673 2,739 2,808 2,878 2,950 3,024 3,099 3,177 3,256 3,338 274 2410-2426-6806 Facility Capital Repair Alloc. 1,975 2,018 2,069 2,121 2,174 2,228 2,284 2,341 2,399 2,459 2,521 275 2410-2426-6807 Vehicle Replacement Reserve 101,404 103,635 106,226 108,881 111,603 114,394 117,253 120,185 123,189 126,269 129,426 276 2410-2426-6808 Vehicle Maintenance Allocation 94,780 96,865 99,287 101,769 104,313 106,921 109,594 112,334 115,142 118,021 120,971 277 2410-2426-6809 IT Services Allocation 140,333 143,420 147,006 150,681 154,448 158,309 162,267 166,324 170,482 174,744 179,112 278 2410-2426-6810 Benefits Admin. Allocation 17,867 18,260 18,717 19,184 19,664 20,156 20,660 21,176 21,705 22,248 22,804 279 2410-2426-6811 Admin. Indirect Costs 169,382 173,108 177,436 181,872 186,419 191,079 195,856 200,753 205,771 210,916 216,189 280 Total 2410-2426 2,874,325$ 2,951,979$ 3,037,213$ 3,125,603$ 3,217,305$ 3,312,484$ 3,411,316$ 3,513,987$ 3,620,696$ 3,731,653$ 3,847,081$ 2410-2428
Personal Services
281 2410-2428-5101 Salaries-Regular Miscellaneous 722,435$ 736,884$ 751,621$ 766,654$ 781,987$ 797,627$ 813,579$ 829,851$ 846,448$ 863,377$ 880,644$ 282 2410-2428-5104 Overtime Salaries - Misc 65,000 66,300 67,626 68,979 70,358 71,765 73,201 74,665 76,158 77,681 79,235 283 2410-2428-5110 Opt-Out/SPIL 1,300 1,326 1,353 1,380 1,407 1,435 1,464 1,493 1,523 1,554 1,585 284 2410-2428-5123 Health Insurance 130,224 140,642 151,893 164,045 177,168 191,342 206,649 223,181 241,036 260,318 281,144 285 2410-2428-5124 Dental Insurance 2,538 2,741 2,960 3,197 3,453 3,729 4,027 4,350 4,698 5,073 5,479 286 2410-2428-5125 Vision Insurance 1,038 1,121 1,211 1,308 1,412 1,525 1,647 1,779 1,921 2,075 2,241 287 2410-2428-5129 Other Insurance 4,528 4,619 4,711 4,805 4,901 4,999 5,099 5,201 5,305 5,411 5,520 288 2410-2428-5131 Workers' Compensation 12,233 12,478 12,727 12,982 13,241 13,506 13,776 14,052 14,333 14,620 14,912 289 2410-2428-5136 PERS Misc. - Employee Paid 75,250 79,765 84,551 89,624 95,001 100,701 106,744 113,148 119,937 127,133 134,761 290 2410-2428-5140 Medicare (1.45% of salary) 10,275 10,481 10,690 10,904 11,122 11,344 11,571 11,803 12,039 12,280 12,525 291 2410-2428-5141 Uniform / Boot Allowance 1,800 1,836 1,873 1,910 1,948 1,987 2,027 2,068 2,109 2,151 2,194 293 2410-2428-5147 Flex Credit 42,450 43,299 44,165 45,048 45,949 46,868 47,806 48,762 49,737 50,732 51,746 Prepared by Stantec Consulting Services Inc. on 11/11/2025 41 Appendix A
Projection of Cash Outflows Schedule 2
DPO Description
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 Operations & Maintenance
294 2410-2428-5138 PERS UAL-Misc. 157,020$ 166,441$ 176,428$ 187,013$ 198,234$ 210,128$ 222,736$ 236,100$ 250,266$ 265,282$ 281,199$ 295 2410-2428-6205 Uniforms & Laundry 9,700 9,913 10,161 10,415 10,676 10,943 11,216 11,497 11,784 12,079 12,380 296 2410-2428-6211 Dues & Subscriptions 515 526 539 553 567 581 595 610 626 641 657 297 2410-2428-6212 Training and Meetings 5,500 5,621 5,762 5,906 6,053 6,205 6,360 6,519 6,682 6,849 7,020 298 2410-2428-6319 Professional & Contractual Fee 10,000 10,220 10,476 10,737 11,006 11,281 11,563 11,852 12,148 12,452 12,763 299 2410-2428-6401 Supplies 65,000 66,430 68,091 69,793 71,538 73,326 75,159 77,038 78,964 80,939 82,962 300 2410-2428-6423 Small Equipment/Furniture 5,000 5,110 5,238 5,369 5,503 5,640 5,781 5,926 6,074 6,226 6,382 301 2410-2428-6427 Water Meters 625,000 638,750 654,719 671,087 687,864 705,060 722,687 740,754 759,273 778,255 797,711 302 2410-2428-6443 Printing, Binding, & Duplicate 3,500 3,577 3,666 3,758 3,852 3,948 4,047 4,148 4,252 4,358 4,467 303 2410-2428-6501 Maintenance & Repairs 12,000 12,264 12,571 12,885 13,207 13,537 13,876 14,222 14,578 14,942 15,316 304 2410-2428-6551 Rentals 2,500 2,555 2,619 2,684 2,751 2,820 2,891 2,963 3,037 3,113 3,191 305 2410-2428-6802 Insurance Alloc - Public Liab 357,924 365,798 374,943 384,317 393,925 403,773 413,867 424,214 434,819 445,690 456,832 306 2410-2428-6804 Building Maint. Svc Alloc 22,677 23,176 23,755 24,349 24,958 25,582 26,221 26,877 27,549 28,238 28,944 307 2410-2428-6805 Custodial Services Allocation 2,615 2,673 2,739 2,808 2,878 2,950 3,024 3,099 3,177 3,256 3,338 308 2410-2428-6806 Facility Capital Repair Alloc. 1,975 2,018 2,069 2,121 2,174 2,228 2,284 2,341 2,399 2,459 2,521 309 2410-2428-6807 Vehicle Replacement Reserve 71,837 73,417 75,253 77,134 79,063 81,039 83,065 85,142 87,270 89,452 91,688 310 2410-2428-6808 Vehicle Maintenance Allocation 147,110 150,346 154,105 157,958 161,907 165,954 170,103 174,356 178,715 183,183 187,762 311 2410-2428-6809 IT Services Allocation 173,516 177,333 181,767 186,311 190,969 195,743 200,636 205,652 210,794 216,063 221,465 312 2410-2428-6810 Benefits Admin. Allocation 17,867 18,260 18,717 19,184 19,664 20,156 20,660 21,176 21,705 22,248 22,804 313 2410-2428-6811 Admin. Indirect Costs 169,382 173,108 177,436 181,872 186,419 191,079 195,856 200,753 205,771 210,916 216,189 314 Total 2410-2428 2,937,509$ 3,016,985$ 3,104,549$ 3,195,366$ 3,289,598$ 3,387,416$ 3,489,003$ 3,594,551$ 3,704,266$ 3,818,367$ 3,937,086$ 2410-2430
Personal Services
315 2410-2430-5101 Salaries-Regular Miscellaneous 294,930$ 300,829$ 306,845$ 312,982$ 319,242$ 325,627$ 332,139$ 338,782$ 345,558$ 352,469$ 359,518$ 316 2410-2430-5102 Wages - Nonregular 20,300 20,706 21,120 21,543 21,973 22,413 22,861 23,318 23,785 24,260 24,746 317 2410-2430-5104 Overtime Salaries - Misc 2,000 2,040 2,081 2,122 2,165 2,208 2,252 2,297 2,343 2,390 2,438 318 2410-2430-5123 Health Insurance 11,427 12,341 13,328 14,395 15,546 16,790 18,133 19,584 21,151 22,843 24,670 319 2410-2430-5124 Dental Insurance 1,157 1,250 1,350 1,457 1,574 1,700 1,836 1,983 2,142 2,313 2,498 320 2410-2430-5125 Vision Insurance 579 625 675 729 788 851 919 992 1,072 1,157 1,250 321 2410-2430-5129 Other Insurance 1,299 1,325 1,351 1,379 1,406 1,434 1,463 1,492 1,522 1,552 1,583 322 2410-2430-5131 Workers' Compensation 5,478 5,588 5,699 5,813 5,930 6,048 6,169 6,293 6,418 6,547 6,678 323 2410-2430-5136 PERS Misc. - Employee Paid 18,219 19,312 20,471 21,699 23,001 24,381 25,844 27,395 29,038 30,781 32,627 324 2410-2430-5140 Medicare (1.45% of salary) 2,726 2,781 2,836 2,893 2,951 3,010 3,070 3,131 3,194 3,258 3,323 325 2410-2430-5141 Uniform / Boot Allowance 400 408 416 424 433 442 450 459 469 478 488 326 2410-2430-5147 Flex Credit 9,000 9,180 9,364 9,551 9,742 9,937 10,135 10,338 10,545 10,756 10,971 Operations & Maintenance
327 2410-2430-5138 PERS UAL-Misc. 42,402$ 44,946$ 47,643$ 50,501$ 53,532$ 56,743$ 60,148$ 63,757$ 67,582$ 71,637$ 75,936$ 328 2410-2430-6211 Dues & Subscriptions 3,280 3,352 3,436 3,522 3,610 3,700 3,793 3,887 3,985 4,084 4,186 329 2410-2430-6212 Training and Meetings 3,100 3,168 3,247 3,329 3,412 3,497 3,585 3,674 3,766 3,860 3,957 330 2410-2430-6301 Legal Fees 140 143 147 150 154 158 162 166 170 174 179 331 2410-2430-6319 Professional & Contractual Fee 155,000 158,410 162,370 166,430 170,590 174,855 179,226 183,707 188,300 193,007 197,832 332 2410-2430-6331 Water Quality Report 6,400 6,541 6,704 6,872 7,044 7,220 7,400 7,585 7,775 7,969 8,169 333 2410-2430-6333 Water Quality Testing 50,000 51,100 52,378 53,687 55,029 56,405 57,815 59,260 60,742 62,260 63,817 334 2410-2430-6334 Water Efficiency Fees 20,500 20,951 21,475 22,012 22,562 23,126 23,704 24,297 24,904 25,527 26,165 335 2410-2430-6401 Supplies 1,200 1,226 1,257 1,288 1,321 1,354 1,388 1,422 1,458 1,494 1,532 336 2410-2430-6408 Postage 12,000 12,264 12,571 12,885 13,207 13,537 13,876 14,222 14,578 14,942 15,316 337 2410-2430-6423 Small Equipment/Furniture 6,000 6,132 6,285 6,442 6,603 6,769 6,938 7,111 7,289 7,471 7,658 338 2410-2430-6442 Advertising & Promotion 15,000 15,330 15,713 16,106 16,509 16,921 17,344 17,778 18,223 18,678 19,145 339 2410-2430-6443 Printing, Binding, & Duplicate 1,000 1,022 1,048 1,074 1,101 1,128 1,156 1,185 1,215 1,245 1,276 340 2410-2430-6501 Maintenance & Repairs 200 204 210 215 220 226 231 237 243 249 255 341 2410-2430-6552 Lease Payment 596 609 624 640 656 672 689 706 724 742 761 342 2410-2430-6802 Insurance Alloc - Public Liab 58,825 60,119 61,622 63,163 64,742 66,360 68,019 69,720 71,463 73,249 75,081 343 2410-2430-6804 Building Maint. Svc Alloc 4,403 4,500 4,612 4,728 4,846 4,967 5,091 5,218 5,349 5,483 5,620 344 2410-2430-6805 Custodial Services Allocation 508 519 532 545 559 573 587 602 617 633 648 345 2410-2430-6806 Facility Capital Repair Alloc. 383 391 401 411 422 432 443 454 465 477 489 346 2410-2430-6807 Vehicle Replacement Reserve 4,508 4,607 4,722 4,840 4,961 5,085 5,213 5,343 5,476 5,613 5,754 347 2410-2430-6808 Vehicle Maintenance Allocation 14,550 14,870 15,242 15,623 16,013 16,414 16,824 17,245 17,676 18,118 18,571 348 2410-2430-6809 IT Services Allocation 48,410 49,475 50,712 51,980 53,279 54,611 55,976 57,376 58,810 60,281 61,788 349 2410-2430-6810 Benefits Admin. Allocation 3,469 3,545 3,634 3,725 3,818 3,913 4,011 4,111 4,214 4,320 4,428 350 Total 2410-2430 819,389$ 839,810$ 862,122$ 885,155$ 908,940$ 933,507$ 958,893$ 985,131$ 1,012,260$ 1,040,319$ 1,069,350$ Prepared by Stantec Consulting Services Inc. on 11/11/2025 42 Appendix A
Projection of Cash Outflows Schedule 2
DPO Description
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 2510-2515
Personal Services
351 2510-2515-5101 Salaries-Regular Miscellaneous 32,438$ 33,087$ 33,748$ 34,423$ 35,112$ 35,814$ 36,530$ 37,261$ 38,006$ 38,766$ 39,542$ 352 2510-2515-5123 Health Insurance 3,726 4,024 4,346 4,694 5,069 5,475 5,913 6,386 6,897 7,448 8,044 353 2510-2515-5124 Dental Insurance 124 134 145 156 169 182 197 213 230 248 268 354 2510-2515-5125 Vision Insurance 53 57 62 67 72 78 84 91 98 106 114 355 2510-2515-5129 Other Insurance 212 216 221 225 229 234 239 244 248 253 258 356 2510-2515-5131 Workers' Compensation 2,136 2,179 2,222 2,267 2,312 2,358 2,405 2,454 2,503 2,553 2,604 357 2510-2515-5136 PERS Misc. - Employee Paid 3,160 3,350 3,551 3,764 3,989 4,229 4,483 4,751 5,037 5,339 5,659 358 2510-2515-5140 Medicare (1.45% of salary) 484 494 504 514 524 534 545 556 567 578 590 359 2510-2515-5142 Bilingual Pay 936 955 974 993 1,013 1,033 1,054 1,075 1,097 1,119 1,141 360 2510-2515-5147 Flex Credit 2,700 2,754 2,809 2,865 2,923 2,981 3,041 3,101 3,163 3,227 3,291 Operations & Maintenance
361 2510-2515-5138 PERS UAL-Misc. 7,368$ 7,810$ 8,279$ 8,775$ 9,302$ 9,860$ 10,452$ 11,079$ 11,743$ 12,448$ 13,195$ 362 Total 2510-2515 53,337$ 55,059$ 56,860$ 58,743$ 60,714$ 62,779$ 64,942$ 67,210$ 69,589$ 72,085$ 74,707$ FTE
Personal Services
363 Senior Civil Engineer -$ 258,566 $ 532,646$ 548,626$ 565,085$ 582,037$ 599,498$ 617,483$ 636,008$ 655,088$ 674,741$ 364 Construction Inspector - 191,745 197,497 203,422 209,525 215,810 222,285 228,953 235,822 242,897 250,183 365 Total FTE -$ 450,311$ 730,144$ 752,048$ 774,609$ 797,848$ 821,783$ 846,437$ 871,830$ 897,985$ 924,924$ Total Expenses by Category
366 Personal Services 6,594,416$ 7,229,257$ 7,701,163$ 7,923,124$ 8,154,191$ 8,394,887$ 8,645,767$ 8,907,425$ 9,180,499$ 9,465,667$ 9,763,657$ 367 Variable Operations & Maintenance 22,078,000 24,079,747 25,965,768 27,812,740 29,672,645 31,597,802 33,979,267 36,548,998 39,322,227 42,315,438 45,546,466 368 Operations & Maintenance 11,083,818 11,333,986 11,619,087 11,913,305 12,216,987 12,530,497 12,854,213 13,188,533 13,533,874 13,890,670 14,259,377 369 Capital Outlay 300,000 307,500 315,188 323,067 331,144 339,422 347,908 356,606 365,521 374,659 384,025 370 Total Expenses 40,056,234$ 42,950,490$ 45,601,206$ 47,972,236$ 50,374,967$ 52,862,608$ 55,827,155$ 59,001,562$ 62,402,121$ 66,046,433$ 69,953,525$ Expense Execustion Factors
371 Personal Services 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 372 Variable Operations & Maintenance 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 373 Operations & Maintenance 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 374 Capital Outlay 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Total Expenses at Execution
375 Personal Services 6,594,416$ 7,229,257$ 7,701,163$ 7,923,124$ 8,154,191$ 8,394,887$ 8,645,767$ 8,907,425$ 9,180,499$ 9,465,667$ 9,763,657$ 376 Variable Operations & Maintenance 22,078,000 24,079,747 25,965,768 27,812,740 29,672,645 31,597,802 33,979,267 36,548,998 39,322,227 42,315,438 45,546,466 377 Operations & Maintenance 11,083,818 11,333,986 11,619,087 11,913,305 12,216,987 12,530,497 12,854,213 13,188,533 13,533,874 13,890,670 14,259,377 378 Capital Outlay 300,000 307,500 315,188 323,067 331,144 339,422 347,908 356,606 365,521 374,659 384,025 379 Total Expenses at Execution 40,056,234$ 42,950,490$ 45,601,206$ 47,972,236$ 50,374,967$ 52,862,608$ 55,827,155$ 59,001,562$ 62,402,121$ 66,046,433$ 69,953,525$ Debt Service
380 Existing Debt 545,024$ 544,516$ 543,258$ 541,249$ 543,490$ 544,731$ 544,972$ 544,213$ 547,454$ 64,444$ 64,435$ 381 Total Debt Service 545,024$ 544,516$ 543,258$ 541,249$ 543,490$ 544,731$ 544,972$ 544,213$ 547,454$ 64,444$ 64,435$ 382 Total Cash Outflows 40,601,258$ 43,495,006$ 46,144,463$ 48,513,485$ 50,918,457$ 53,407,340$ 56,372,127$ 59,545,776$ 62,949,575$ 66,110,877$ 70,017,960$ Prepared by Stantec Consulting Services Inc. on 11/11/2025 43 Appendix A
Capital Improvement Program Schedule 3
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 1 Upper Acacia BPS (3A-4A) Improvements $ - $ - $ 655,200 $ 2,293,200 $ 327,600 $ - $ - $ - $ - $ - $ - 2 Hermitage BPS (2B-3 and 2B-4C) Improvements - - - 631,400 2,209,900 315,700 - - - - - 3 Coyote BPS (1C-2) Capacity Upsizing Improvements - - - - 660,800 2,312,800 330,400 - - - - 4 Tank Farm BPS (2D-3) Improvements - - - - - - 379,400 1,327,900 189,700 - - 5 Tank Farm 2D Reservoir Improvements - - - - - 658,000 2,303,000 329,000 - - - 6 Christlieb Well 15A Improvements - - - - - - 238,000 833,000 119,000 - - 7 W Orangethorpe Ave & S Pacific Dr - - 23,017 80,559 11,508 - - - - - - 8 W Southgate Ave & Harbor Blvd - - - 26,970 94,396 13,485 - - - - - 9 N Marie Ave, N Michael Ave, and Russell Ave - - - 60,352 211,233 30,176 - - - - - 10 N Euclid St & W Wilshire Ave - - - 698 2,442 349 - - - - - 11 N Wayne Ave and N Lee Ave - - - - 116,424 407,484 58,212 - - - - 12 E Truslow Ave and Patterson Way - - - - - 104,025 364,089 52,013 - - - 13 N Harbor Blvd & E Union Ave - 69,542 243,396 34,771 - - - - - - - 14 Eugene Dr - - - 60,366 211,281 30,183 - - - - - 15 E College Pl - - - 31,320 109,621 15,660 - - - - - 16 Via Burton - - - 150,372 526,301 75,186 - - - - - 17 E Walnut Ave - 154,810 541,834 77,405 - - - - - - - 18 E Chapman Ave and San Carlos Dr - - - - 505,641 1,769,742 252,820 - - - - 19 Concord Ave, Nutwood Ave, & Sycamore Ave - - - 296,572 1,038,002 148,286 - - - - - 20 N Raymond Ave & E Glenwood Ave - - - - 4,288 15,009 2,144 - - - - 21 N Lincoln Ave and N Yale Ave - - - - - 107,670 376,844 53,835 - - - 22 W Porter Ave - - 85,874 300,560 42,937 - - - - - - 23 S Vine Ave & W Orangethorpe Ave - 96,012 336,043 48,006 - - - - - - - 24 Peckham St - 77,709 271,982 38,855 - - - - - - - 25 W Roberta Ave - - - - 58,073 203,256 29,037 - - - - 26 S Brookhurst Rd & W Orangethorpe Ave - - - - 135,769 475,192 67,885 - - - - 27 S Pine Dr, W Houston Ave, and W Roberta Ave - 386,152 1,351,533 193,076 - - - - - - - 28 Franklin Ave and Olin St - 111,479 390,178 55,740 - - - - - - - 29 Carol Dr - 51,575 180,514 25,788 - - - - - - - 30 Commonwealth Ave - 112,125 392,438 56,063 - - - - - - - 31 Dale Pl and Artesia Ave - 148,438 519,534 74,219 - - - - - - - 32 N Pritchard Ave - 88,864 311,023 44,432 - - - - - - - 33 Plaza de Vista - - - - 19,019 66,565 9,509 - - - - 34 Maxwell Ave & W Porter Ave - - - - 27,748 97,119 13,874 - - - - 35 Madison Ave - 53,147 186,015 26,574 - - - - - - - 36 Deerpark Dr & Madison Ave - - 61,626 215,690 30,813 - - - - - - 37 N Deerpark Dr & Yorba Linda Blvd - - 130,677 457,369 65,338 - - - - - - 38 E Palm Dr - - 130,774 457,708 65,387 - - - - - - 39 Yorba Linda Blvd - - 126,199 441,697 63,100 - - - - - - 40 Topaz Ln & E Palm Dr - - 126,123 441,429 63,061 - - - - - - 41 N Bradford Ave - 141,507 495,275 70,754 - - - - - - - 42 N Sapphire Rd, Quartz Ln, and Topaz Ln - 291,311 1,019,589 145,656 - - - - - - - 43 Hartford Ave and Sherwood Ave - 284,837 996,928 142,418 - - - - - - - 44 Sheffield Pl - - - - - 30,732 107,562 15,366 - - - Prepared by Stantec Consulting Services Inc. on 11/11/2025 44 Appendix A
Capital Improvement Program Schedule 3
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 45 Salem Pl and Middlesex Pl - 112,016 392,055 56,008 - - - - - - - 46 Hartford Ave and Cambridge Ave - - - - 72,982 255,436 36,491 - - - - 47 Thorn Pl - - - - 44,874 157,059 22,437 - - - - 48 Blackpine Ct - - - - - 15,525 54,338 7,763 - - - 49 Associated Rd and Private St - - - - 446,997 1,564,490 223,499 - - - - 50 Mimosa Pl & Beechwood Ave - - - - - 24,995 87,482 12,497 - - - 51 Hollydale Dr, Kensington Dr, and Melody Ln - - 307,870 1,077,546 153,935 - - - - - - 52 Skyline Dr, N Raymond Ave, Edgecliff Dr, and Kroeger Ave - - - 988,550 3,459,925 494,275 - - - - - 53 Valvwood Dr - 65,873 230,554 32,936 - - - - - - - 54 Dorothy Dr and Sheppard Dr - - - - 269,137 941,980 134,569 - - - - 55 N Lemon St - - - 30,746 107,611 15,373 - - - - - 56 N Harbor Blvd & Brea Blvd - 120,387 421,355 60,194 - - - - - - - 57 N Johnston Knls, Sunny Knl, and Cristine Pl - - 98,260 343,911 49,130 - - - - - - 58 Beechwood Ave - 18,364 64,275 9,182 - - - - - - - 59 Altivo Pl, Arbolado Dr, and Madonna Dr - - - - - 135,243 473,350 67,621 - - - 60 Balboa Rd - 36,966 129,382 18,483 - - - - - - - 61 N Harbor Blvd & Coronado Dr - - - - 96,422 337,478 48,211 - - - - 62 Imperial Hwy & Termino Pl - - - - - 149,812 524,341 74,906 - - - 63 Via Codo - - - - - 26,295 92,031 13,147 - - - 64 Lakeside Dr - - - - - 108,333 379,167 54,167 - - - 65 Juanita Pl - - - 61,598 215,592 30,799 - - - - - 66 Anacapa Pl - - - - - 112,968 395,389 56,484 - - - 67 Miguel Pl - - - - - 53,880 188,579 26,940 - - - 68 Rancho Cir - - - - 53,245 186,358 26,623 - - - - 69 Verona Dr - - - - 67,126 234,941 33,563 - - - - 70 Yuma Way - - - - - 85,480 299,181 42,740 - - - 71 Avenida del Corto - - - - 53,565 187,478 26,783 - - - - 72 Paseo Grande - - - - - 111,291 389,520 55,646 - - - 73 Avenida del Norte - - - - - 40,412 141,443 20,206 - - - 74 Ave Selva, Calle Candela, & Cam Escondido - - 116,618 408,162 58,309 - - - - - - 75 Flintridge, La Sombra Way, & Ride Out Way - - - - - 156,286 547,002 78,143 - - - 76 FY 2025 Capital Estimate 6,734,925 6,734,925 6,734,925 - - - - - - - - 77 Unspecified Future Capital (Near-Term spread over 6 years) - - - - - - 6,605,900 6,605,900 6,605,900 6,605,900 6,605,900 78 AMI Implementation - - 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 79 Water Lines - - - 6,400,000 9,600,000 12,800,000 16,000,000 22,400,000 22,400,000 22,400,000 22,400,000 80 Total CIP Budget (in current dollars) $ 6,734,925 $ 9,156,040 $ 19,571,066 $ 18,967,333 $ 23,849,533 $ 27,602,804 $ 33,762,672 $ 34,627,274 $ 31,814,600 $ 31,505,900 $ 31,505,900 81 Cumulative Projected Cost Escalation1 3.0% 6.1% 9.3% 12.6% 15.9% 19.4% 23.0% 26.7% 30.5% 34.4% 38.4% 82 Resulting CIP Funding Level $ 6,936,973 $ 9,713,643 $ 21,385,833 $ 21,347,900 $ 27,648,145 $ 32,959,191 $ 41,523,827 $ 43,864,794 $ 41,510,837 $ 42,341,295 $ 43,611,534 83 Annual CIP Execution Percentage 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 84 Final CIP Funding Level $ 6,936,973 $ 9,713,643 $ 21,385,833 $ 21,347,900 $ 27,648,145 $ 32,959,191 $ 41,523,827 $ 43,864,794 $ 41,510,837 $ 42,341,295 $ 43,611,534 1 CIP Escalation factors are consistent with the Engineering News Record Construction Cost Index.

Prepared by Stantec Consulting Services Inc. on 11/11/2025 45 Appendix A
Pro Forma Schedule 4
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 Operating Revenue
1 Water Rate Revenue 52,777,999$ 52,777,999$ 55,416,899$ 62,066,927$ 69,514,958$ 77,856,753$ 83,306,725$ 84,972,860$ 86,672,317$ 88,405,764$ 90,173,879$ 2 Subtotal 52,777,999$ 52,777,999$ 55,416,899$ 62,066,927$ 69,514,958$ 77,856,753$ 83,306,725$ 84,972,860$ 86,672,317$ 88,405,764$ 90,173,879$ 3 Weighted Average Rate Increase 0.00% 1.25% 2.99% 2.98% 2.99% 1.75% 0.50% 0.50% 0.50% 0.50% 2.01% 4 Additional Rate Revenue From Rate Increase - 657,918 1,657,952 1,851,833 2,079,735 1,358,760 415,392 422,543 432,174 440,818 1,813,536 5 Total Rate Revenue 52,777,999$ 53,435,916$ 57,074,851$ 63,918,760$ 71,594,693$ 79,215,513$ 83,722,118$ 85,395,403$ 87,104,492$ 88,846,581$ 91,987,415$ 6 Plus: Other Operating Revenue 1,721,747 1,765,863 1,841,449 1,922,015 2,008,037 2,082,395 2,156,197 2,216,879 2,279,303 2,343,517 2,409,574 7 Equals: Total Operating Revenue 54,499,746$ 55,201,780$ 58,916,300$ 65,840,774$ 73,602,730$ 81,297,908$ 85,878,314$ 87,612,282$ 89,383,794$ 91,190,098$ 94,396,990$ Less: Operating Expenses
8 Personal Services (6,594,416)$ (7,229,257)$ (7,701,163)$ (7,923,124)$ (8,154,191)$ (8,394,887)$ (8,645,767)$ (8,907,425)$ (9,180,499)$ (9,465,667)$ (9,763,657)$ 9 Variable Operations & Maintenance Costs (22,078,000) (24,079,747) (25,965,768) (27,812,740) (29,672,645) (31,597,802) (33,979,267) (36,548,998) (39,322,227) (42,315,438) (45,546,466) 10 Operations & Maintenance Costs (11,083,818) (11,333,986) (11,619,087) (11,913,305) (12,216,987) (12,530,497) (12,854,213) (13,188,533) (13,533,874) (13,890,670) (14,259,377) 11 Equals: Net Operating Income 14,743,512$ 12,558,789$ 13,630,281$ 18,191,605$ 23,558,907$ 28,774,723$ 30,399,068$ 28,967,325$ 27,347,194$ 25,518,324$ 24,827,490$ Plus: Non-Operating Income/(Expense)
12 Non-Operating Revenue 645,992$ 664,213$ 682,981$ 702,312$ 722,223$ 742,731$ 763,855$ 785,612$ 808,022$ 818,233$ 816,264$ 13 Interest Income 244,615 309,659 288,701 249,243 258,121 289,657 305,488 277,414 250,860 244,101 248,308 14 Water Impact Fees 13,000 13,390 13,792 14,205 14,632 15,071 15,523 15,988 16,468 16,962 17,471 15 Passthrough Revenue - - - 1,792,542 3,596,656 5,464,628 7,787,478 10,297,128 13,008,774 15,938,863 19,105,191 16 Equals: Net Income 15,647,119$ 13,546,051$ 14,615,755$ 20,949,909$ 28,150,538$ 35,286,810$ 39,271,410$ 40,343,467$ 41,431,319$ 42,536,483$ 45,014,724$ Less: Revenues Excluded From Coverage Test
17 Impact Fees (13,000)$ (13,390)$ (13,792)$ (14,205)$ (14,632)$ (15,071)$ (15,523)$ (15,988)$ (16,468)$ (16,962)$ (17,471)$ 18 Equals: Net Income Available For Debt Service 15,634,119$ 13,532,661$ 14,601,964$ 20,935,703$ 28,135,906$ 35,271,739$ 39,255,888$ 40,327,479$ 41,414,851$ 42,519,521$ 44,997,253$ Senior Lien Debt Service Coverage Test
19 Net Income Available for Senior-Lien Debt Service 15,634,119$ 13,532,661$ 14,601,964$ 20,935,703$ 28,135,906$ 35,271,739$ 39,255,888$ 40,327,479$ 41,414,851$ 42,519,521$ 44,997,253$ 20 Existing Senior-Lien Debt 480,500 480,000 478,750 476,750 479,000 480,250 480,500 479,750 483,000 - - 21 Total Annual Senior-Lien Debt Service Req. 480,500$ 480,000$ 478,750$ 476,750$ 479,000$ 480,250$ 480,500$ 479,750$ 483,000$ -$ -$ 22 Calculated Senior-Lien Debt Service Coverage 1.25 32.54 28.19 30.50 43.91 58.74 73.44 81.70 84.06 85.75 - - Prepared by Stantec Consulting Services Inc. on 11/11/2025 46 Appendix A
Pro Forma Schedule 4
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 Subordinate Debt Service Coverage Test
23 Net Income Available for Debt Service 15,634,119$ 13,532,661$ 14,601,964$ 20,935,703$ 28,135,906$ 35,271,739$ 39,255,888$ 40,327,479$ 41,414,851$ 42,519,521$ 44,997,253$ 24 LESS: Total Senior Debt Service (480,500) (480,000) (478,750) (476,750) (479,000) (480,250) (480,500) (479,750) (483,000) - - 25 Net Income Available for Subordinate Debt Service 15,153,619 13,052,661 14,123,214 20,458,953 27,656,906 34,791,489 38,775,388 39,847,729 40,931,851 42,519,521 44,997,253 26 Existing Subordinate Debt 64,524 64,516 64,508 64,499 64,490 64,481 64,472 64,463 64,454 64,444 64,435 27 Total Annual Subordinate Debt Service Req. 64,524$ 64,516$ 64,508$ 64,499$ 64,490$ 64,481$ 64,472$ 64,463$ 64,454$ 64,444$ 64,435$ 28 Calculated Subordinate Debt Service Coverage 1.25 234.85 202.32 218.94 317.20 428.85 539.56 601.43 618.15 635.06 659.79 698.34 Total All-In Debt Service Coverage Test
29 Net Income Available for Subordinate Debt Service 15,634,119$ 13,532,661$ 14,601,964$ 20,935,703$ 28,135,906$ 35,271,739$ 39,255,888$ 40,327,479$ 41,414,851$ 42,519,521$ 44,997,253$ 30 Total Senior-Lien Debt Service 480,500 480,000 478,750 476,750 479,000 480,250 480,500 479,750 483,000 - - 31 Total Subordinate Debt Service 64,524 64,516 64,508 64,499 64,490 64,481 64,472 64,463 64,454 64,444 64,435 32 Total Annual Debt Service 545,024$ 544,516$ 543,258$ 541,249$ 543,490$ 544,731$ 544,972$ 544,213$ 547,454$ 64,444$ 64,435$ 33 Calculated All-In Debt Service Coverage 28.69 24.85 26.88 38.68 51.77 64.75 72.03 74.10 75.65 659.79 698.34 Cash Flow Test
34 Net Income Available For Debt Service 15,634,119$ 13,532,661$ 14,601,964$ 20,935,703$ 28,135,906$ 35,271,739$ 39,255,888$ 40,327,479$ 41,414,851$ 42,519,521$ 44,997,253$ Less: Non-Operating Expenditures
35 Net Debt Service Payment (Debt Service - Impact Fees Payment) (545,024) (544,516) (543,258) (541,249) (543,490) (544,731) (544,972) (544,213) (547,454) (64,444) (64,435) 36 Capital Outlay (300,000) (307,500) (315,188) (323,067) (331,144) (339,422) (347,908) (356,606) (365,521) (374,659) (384,025) 37 Net Cash Flow 14,789,095$ 12,680,646$ 13,743,519$ 20,071,387$ 27,261,272$ 34,387,585$ 38,363,007$ 39,426,660$ 40,501,876$ 42,080,417$ 44,548,793$ Unrestricted Reserve Fund Test
38 Balance At Beginning Of Fiscal Year 16,738,835$ 24,590,958$ 27,731,873$ 21,061,868$ 21,063,099$ 22,562,254$ 26,393,106$ 25,237,774$ 21,648,317$ 20,749,908$ 20,489,030$ 39 Cash Flow Surplus/(Deficit) 14,789,095 12,680,646 13,743,519 20,071,387 27,261,272 34,387,585 38,363,007 39,426,660 40,501,876 42,080,417 44,548,793 40 Projects Paid With Non Specified Funds (6,936,973) (9,539,730) (20,413,524) (20,070,155) (25,762,117) (30,556,733) (39,518,339) (43,016,117) (41,400,285) (42,341,295) (43,611,534) 41 Balance At End Of Fiscal Year 24,590,958$ 27,731,873$ 21,061,868$ 21,063,099$ 22,562,254$ 26,393,106$ 25,237,774$ 21,648,317$ 20,749,908$ 20,489,030$ 21,426,289$ 42 Minimum Working Capital Reserve Target 13,735,411 14,226,481 14,599,835 14,894,739 15,197,687 15,509,003 15,829,026 16,158,116 16,496,653 16,845,039 17,203,698 43 Excess/(Deficiency) Of Working Capital To Target 10,855,546$ 13,505,392$ 6,462,032$ 6,168,360$ 7,364,567$ 10,884,103$ 9,408,748$ 5,490,201$ 4,253,255$ 3,643,991$ 4,222,591$ Prepared by Stantec Consulting Services Inc. on 11/11/2025 47 2025 Water Rate Study Draft Report
Appendix B Cost-of-Service Schedules
Project: City of Fullerton | Water Rate Study 48
Appendix B Cost-of-Service Schedules
Schedule 5 - Allocation of Costs to Functional Components Appendix B
Water System Expense Allocation to Functions Schedule 5 Budget Line Items Gene
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Department 2111 City Council
1 Salaries-Regular Miscellaneous 4,590$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 4,590$ 2 Opt-Out/SPIL 530 - - - - - - - - - 530
3 Health Insurance 1,685 - - - - - - - - - 1,685 4 Dental Insurance 122 - - - - - - - - - 122
5 Vision Insurance 29 - - - - - - - - - 29
6 Other Insurance 44 - - - - - - - - - 44
7 Workers' Compensation 520 - - - - - - - - - 520 8 PERS Misc. - Employee Paid 179 - - - - - - - - - 179 9 Medicare (1.45% of salary) 74 - - - - - - - - - 74 10 Flex Credit 36 - - - - - - - - - 36
11 Subtotal 7,810$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 7,810$ Department 2161 Administrative Services
12 Salaries-Regular Miscellaneous -$ -$ -$ -$ -$ -$ 403,937 $ -$ -$ -$ 403,937$ 13 Health Insurance - - - - - - 52,716 - - - 52,716 14 Dental Insurance - - - - - - 1,971 - - - 1,971 15 Vision Insurance - - - - - - 781 - - - 781 16 Other Insurance - - - - - - 2,692 - - - 2,692 17 Workers' Compensation - - - - - - 6,293 - - - 6,293 18 PERS Misc. - Employee Paid - - - - - - 42,270 - - - 42,270 19 Medicare (1.45% of salary) - - - - - - 5,908 - - - 5,908 20 Bilingual Pay - - - - - - 3,501 - - - 3,501 21 Flex Credit - - - - - - 27,540 - - - 27,540 22 Auto Expense - - - - - - 51 - - - 51
23 Dues & Subscriptions - - - - - - 548 - - - 548 24 Training and Meetings - - - - - - 4,147 - - - 4,147 25 Legal Fees - - - - - - 6,464 - - - 6,464
26 Professional & Contractual Fee - - - - - - 99,216 - - - 99,216 27 Supplies - - - - - - 5,500 - - - 5,500
28 Postage - - - - - - 99,266 - - - 99,266
29 Small Equipment/Furniture - - - - - - 2,921 - - - 2,921 30 Program Expense - - - - - - 6,009 - - - 6,009 31 Printing, Binding, & Duplicate - - - - - - 37,896 - - - 37,896 32 Maintenance & Repairs - - - - - - 1,789 - - - 1,789 33 Sewer - - - - - - 409 - - - 409
34 Uncollectable Accounts - - - - - - 51,100 - - - 51,100 35 Credit Card Merchant Fee - - - - - - 209,006 - - - 209,006 36 Fees and charges - - - - - - 2,640 - - - 2,640 37 Insurance Alloc - Public Liab - - - - - - 22,987 - - - 22,987 38 Building Maint. Svc Alloc - - - - - - 41,544 - - - 41,544 39 Custodial Services Allocation - - - - - - 10,235 - - - 10,235 40 Facility Capital Repair Alloc. - - - - - - 4,650 - - - 4,650 41 Vehicle Maintenance Allocation - - - - - - 243 - - - 243 42 IT Services Allocation - - - - - - 255,349 - - - 255,349 43 Benefits Admin. Allocation - - - - - - 15,834 - - - 15,834 44 Subtotal -$ -$ -$ -$ -$ -$ 1,425,413$ -$ -$ -$ 1,425,413$ Prepared by Stantec Consulting Services Inc. on 11/11/2025 49 Appendix B
Water System Expense Allocation to Functions Schedule 5 Budget Line Items Gene
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Department Public Works - Engineering
45 Salaries-Regular Miscellaneous -$ 828$ 12$ 21,082$ 24$ 360$ -$ -$ -$ -$ 22,306$ 46 Overtime Salaries - Misc - 201 3 5,109 6 87 - - - - 5,406 47 Health Insurance - 59 1 1,512 2 26 - - - - 1,599 48 Dental Insurance - 4 0 98 0 2 - - - - 104 49 Vision Insurance - 2 0 48 0 1 - - - - 51
50 Other Insurance - 6 0 145 0 2 - - - - 153 51 Workers' Compensation - 19 0 488 1 8 - - - - 516 52 PERS Misc. - Employee Paid - 84 1 2,130 2 36 - - - - 2,254 53 PERS UAL-Misc. - 195 3 4,969 6 85 - - - - 5,258 54 Medicare (1.45% of salary) - 12 0 307 0 5 - - - - 324 55 Bilingual Pay - 3 0 73 0 1 - - - - 78
56 Flex Credit - 32 0 802 1 14 - - - - 849
57 Insurance Alloc - Public Liab - 312 4 7,927 9 135 - - - - 8,388 58 Building Maint. Svc Alloc - 43 1 1,099 1 19 - - - - 1,163 59 Custodial Services Allocation - 12 0 296 0 5 - - - - 313 60 Facility Capital Repair Alloc. - 3 0 77 0 1 - - - - 82 61 IT Services Allocation - 159 2 4,054 5 69 - - - - 4,289 62 Benefits Admin. Allocation - 18 0 467 1 8 - - - - 495 63 Salaries-Regular Miscellaneous - 28,795 409 732,729 836 12,513 - - 86,142 - 861,425 64 Wages - Nonregular - 1,023 15 26,028 30 444 - - 3,060 - 30,600 65 Overtime Salaries - Misc - 205 3 5,206 6 89 - - 612 - 6,120 66 Opt-Out/SPIL - 98 1 2,506 3 43 - - - - 2,652 67 Health Insurance - 1,284 18 32,666 37 558 - - 3,840 - 38,404 68 Dental Insurance - 113 2 2,874 3 49 - - 338 - 3,379 69 Vision Insurance - 69 1 1,756 2 30 - - 206 - 2,065 70 Other Insurance - 198 3 5,043 6 86 - - 593 - 5,928 71 Workers' Compensation - 710 10 18,060 21 308 - - 2,123 - 21,232 72 PERS Misc. - Employee Paid - 2,953 42 75,132 86 1,283 - - 8,833 - 88,328 73 PERS UAL-Misc. - 6,763 96 172,097 196 2,939 - - 20,232 - 202,324 74 Medicare (1.45% of salary) - 419 6 10,657 12 182 - - 1,253 - 12,529 75 Flex Credit - 1,000 14 25,450 29 435 - - - - 26,928 76 Auto Expense - 4 0 97 0 2 - - - - 102
77 Dues & Subscriptions - 342 5 8,693 10 148 - - - - 9,198 78 Training and Meetings - 281 4 7,148 8 122 - - - - 7,563 79 Legal Fees - 380 5 9,659 11 165 - - - - 10,220 80 Professional & Contractual Fee - 9,126 130 232,213 265 3,966 - - - - 245,699 81 Division of Drinking Water Fee - 4,873 69 123,999 141 2,118 - - - - 131,200 82 Supplies - 190 3 4,830 6 82 - - - - 5,110 83 Postage - - - - - - - - 46,501 - 46,501 84 Small Equipment/Furniture - 569 8 14,489 17 247 - - - - 15,330 85 Advertising & Promotion - - - - - - - - 2,044 - 2,044 86 Printing, Binding, & Duplicate - - - - - - - - 3,066 - 3,066 87 Maintenance & Repairs - 61 1 1,545 2 26 - - - - 1,635 88 Rentals - 247 4 6,278 7 107 - - - - 6,643 89 Insurance Alloc - Public Liab - 11,018 157 280,377 320 4,788 - - - - 296,660 90 Building Maint. Svc Alloc - 2,080 30 52,929 60 904 - - - - 56,003 91 Custodial Services Allocation - 333 5 8,485 10 145 - - - - 8,977 92 Facility Capital Repair Alloc. - 87 1 2,210 3 38 - - - - 2,338 93 Vehicle Maintenance Allocation - 504 7 12,818 15 219 - - - - 13,562 94 IT Services Allocation - 4,533 64 115,346 132 1,970 - - - - 122,045 95 Benefits Admin. Allocation - 527 7 13,404 15 229 - - - - 14,182 96 Furniture, Equipment, & Machin - 761 11 19,375 22 331 - - - - 20,500 97 Salaries-Regular Miscellaneous - 1,934 27 49,206 56 840 - - - - 52,064 98 Overtime Salaries - Misc - 95 1 2,410 3 41 - - - - 2,550 99 Health Insurance - 262 4 6,656 8 114 - - - - 7,043 100 Dental Insurance - 6 0 153 0 3 - - - - 162 101 Vision Insurance - 2 0 45 0 1 - - - - 48 102 Other Insurance - 12 0 300 0 5 - - - - 317 103 Workers' Compensation - 52 1 1,321 2 23 - - - - 1,397 104 PERS Misc. - Employee Paid - 230 3 5,861 7 100 - - - - 6,201 Prepared by Stantec Consulting Services Inc. on 11/11/2025 50 Appendix B
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105 PERS UAL-Misc. - 454 6 11,557 13 197 - - - - 12,228 106 Medicare (1.45% of salary) - 28 0 715 1 12 - - - - 757 107 Uniform / Boot Allowance - 4 0 96 0 2 - - - - 102 108 Flex Credit - 85 1 2,169 2 37 - - - - 2,295 109 Dues & Subscriptions - 38 1 958 1 16 - - - - 1,014 110 Training and Meetings - 137 2 3,495 4 60 - - - - 3,698 111 Rentals - 38 1 966 1 16 - - - - 1,022
112 Insurance Alloc - Public Liab - 2,113 30 53,766 61 918 - - - - 56,889 113 Building Maint. Svc Alloc - 374 5 9,521 11 163 - - - - 10,074 114 Custodial Services Allocation - 67 1 1,715 2 29 - - - - 1,815 115 Facility Capital Repair Alloc. - 18 0 447 1 8 - - - - 473 116 Vehicle Replacement Reserve - 83 1 2,107 2 36 - - - - 2,229 117 Vehicle Maintenance Allocation - 277 4 7,044 8 120 - - - - 7,453 118 IT Services Allocation - 924 13 23,502 27 401 - - - - 24,867 119 Benefits Admin. Allocation - 107 2 2,710 3 46 - - - - 2,868 120 Furniture, Equipment, & Machin - 571 8 14,531 17 248 - - - - 15,375 121 Professional & Contractual Fee - 30,660 - - - - - - - - 30,660 122 Public Safety Support - 43,445 - - - - - - - - 43,445 123 Lease Payment - 1,256,126 - - - - - - - - 1,256,126 124 MWD Water Purchased - - - - - - - - - 8,946,357 8,946,357 125 OCWD Water Pumped - - - - - - - - - 13,009,291 13,009,291 126 Telephone - 429 - - - - - - - - 429
127 Gas - 256 - - - - - - - - 256
128 Electricity - 4,599 - - - - - - - - 4,599 129 Water Pumping Power - - - - - - - - - 1,992,900 1,992,900 130 City Department Water Usage - 13,490 - - - - - - - - 13,490 131 Property Tax - 20,849 - - - - - - - - 20,849 132 Fees and charges - 2,453 - - - - - - - - 2,453 133 Public Street Rt-Of-Way Impact - 227,150 - - - - - - - - 227,150 134 Subtotal -$ 1,688,902$ 1,271$ 2,276,035$ 2,596$ 38,868$ -$ -$ 178,844$ 23,948,547$ 28,135,063$ Department Public Works-Maintenance SVC
135 Salaries-Regular Miscellaneous -$ 10,393 $ 148$ 264,457$ 302$ 4,516$ -$ -$ -$ -$ 279,816$ 136 Wages - Nonregular - 231 3 5,880 7 100 - - - - 6,222 137 Overtime Salaries - Misc - 114 2 2,892 3 49 - - - - 3,060 138 Opt-Out/SPIL - 18 0 459 1 8 - - - - 486
139 Health Insurance - 854 12 21,736 25 371 - - - - 22,999 140 Dental Insurance - 37 1 939 1 16 - - - - 994 141 Vision Insurance - 14 0 350 0 6 - - - - 370 142 Other Insurance - 69 1 1,755 2 30 - - - - 1,857 143 Workers' Compensation - 258 4 6,572 7 112 - - - - 6,953 144 PERS Misc. - Employee Paid - 1,042 15 26,507 30 453 - - - - 28,047 145 PERS UAL-Misc. - 2,353 33 59,870 68 1,022 - - - - 63,347 146 Retirement - Nonregular - 8 0 198 0 3 - - - - 209 147 Medicare (1.45% of salary) - 153 2 3,888 4 66 - - - - 4,114 148 Auto Allowance - 125 2 3,185 4 54 - - - - 3,370 149 Flex Credit - 370 5 9,420 11 161 - - - - 9,967 150 Dues & Subscriptions - 19 0 483 1 8 - - - - 511 151 Training and Meetings - 152 2 3,864 4 66 - - - - 4,088 152 Supplies - 171 2 4,347 5 74 - - - - 4,599 153 Postage - 37 1 942 1 16 - - - - 996
154 Small Equipment/Furniture - 38 1 966 1 16 - - - - 1,022 155 Maintenance & Repairs - 237 3 6,027 7 103 - - - - 6,377 156 Gas - 190 3 4,830 6 82 - - - - 5,110
157 Electricity - 1,139 16 28,977 33 495 - - - - 30,660 158 Insurance Alloc - Public Liab - 2,781 40 70,764 81 1,208 - - - - 74,874 159 Building Maint. Svc Alloc - 159 2 4,035 5 69 - - - - 4,269 160 Custodial Services Allocation - 24 0 610 1 10 - - - - 646 161 Facility Capital Repair Alloc. - 18 0 462 1 8 - - - - 489 162 Vehicle Maintenance Allocation - 84 1 2,140 2 37 - - - - 2,265 163 IT Services Allocation - 2,424 34 61,689 70 1,053 - - - - 65,272 Prepared by Stantec Consulting Services Inc. on 11/11/2025 51 Appendix B
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164 Benefits Admin. Allocation - 164 2 4,174 5 71 - - - - 4,416 165 CIP Costs Allocation - (226) (3) (5,762) (7) (98) - - - - (6,097) 166 Salaries-Regular Miscellaneous - 2,162 31 55,005 63 939 - - - - 58,199 167 Opt-Out/SPIL - 4 0 100 0 2 - - - - 106 168 Health Insurance - 384 5 9,768 11 167 - - - - 10,336 169 Dental Insurance - 8 0 210 0 4 - - - - 222 170 Vision Insurance - 3 0 67 0 1 - - - - 71 171 Other Insurance - 13 0 322 0 5 - - - - 341 172 Workers' Compensation - 84 1 2,145 2 37 - - - - 2,270 173 PERS Misc. - Employee Paid - 208 3 5,290 6 90 - - - - 5,597 174 PERS UAL-Misc. - 505 7 12,842 15 219 - - - - 13,588 175 Medicare (1.45% of salary) - 32 0 802 1 14 - - - - 849 176 Uniform / Boot Allowance - 6 0 146 0 2 - - - - 154 177 Flex Credit - 127 2 3,230 4 55 - - - - 3,418 178 Supplies - 57 1 1,449 2 25 - - - - 1,533 179 Insurance Alloc - Public Liab - 692 10 17,611 20 301 - - - - 18,634 180 Building Maint. Svc Alloc - 68 1 1,722 2 29 - - - - 1,822 181 Custodial Services Allocation - 18 0 450 1 8 - - - - 476 182 Vehicle Replacement Reserve - 231 3 5,886 7 101 - - - - 6,228 183 Vehicle Maintenance Allocation - 297 4 7,550 9 129 - - - - 7,989 184 IT Services Allocation - 255 4 6,491 7 111 - - - - 6,868 185 Benefits Admin. Allocation - 56 1 1,435 2 25 - - - - 1,519 186 Professional & Contractual Fee - - - 5,110 - - - - - - 5,110 187 Salaries-Regular Miscellaneous 4,066 - - - - - - - - - 4,066 188 Opt-Out/SPIL 8 - - - - - - - - - 8
189 Health Insurance 861 - - - - - - - - - 861 190 Dental Insurance 19 - - - - - - - - - 19 191 Vision Insurance 8 - - - - - - - - - 8 192 Other Insurance 28 - - - - - - - - - 28 193 Workers' Compensation 197 - - - - - - - - - 197 194 PERS Misc. - Employee Paid 430 - - - - - - - - - 430 195 PERS UAL-Misc. 954 - - - - - - - - - 954 196 Medicare (1.45% of salary) 61 - - - - - - - - - 61 197 Uniform / Boot Allowance 13 - - - - - - - - - 13 198 Flex Credit 298 - - - - - - - - - 298 199 Insurance Alloc - Public Liab 10,341 - - - - - - - - - 10,341 200 Building Maint. Svc Alloc 774 - - - - - - - - - 774 201 Custodial Services Allocation 89 - - - - - - - - - 89 202 Facility Capital Repair Alloc. 67 - - - - - - - - - 67 203 Vehicle Replacement Reserve 3,313 - - - - - - - - - 3,313 204 Vehicle Maintenance Allocation 4,918 - - - - - - - - - 4,918 205 IT Services Allocation 1,536 - - - - - - - - - 1,536 206 Benefits Admin. Allocation 610 - - - - - - - - - 610 207 Salaries-Regular Miscellaneous - - - 1,178,799 - - - - - - 1,178,799 208 Wages - Nonregular - - - 28,866 - - - - - - 28,866 209 Overtime Salaries - Misc - - - 204,000 - - - - - - 204,000 210 Health Insurance - - - 177,598 - - - - - - 177,598 211 Dental Insurance - - - 4,949 - - - - - - 4,949 212 Vision Insurance - - - 1,860 - - - - - - 1,860 213 Retiree Health Insurance - - - 6,120 - - - - - - 6,120 214 Other Insurance - - - 7,078 - - - - - - 7,078 215 Workers' Compensation - - - 19,868 - - - - - - 19,868 216 PERS Misc. - Employee Paid - - - 115,658 - - - - - - 115,658 217 PERS UAL-Misc. - - - 255,972 - - - - - - 255,972 218 Medicare (1.45% of salary) - - - 15,882 - - - - - - 15,882 219 Uniform / Boot Allowance - - - 3,266 - - - - - - 3,266 220 Bilingual Pay - - - 1,591 - - - - - - 1,591 221 Flex Credit - - - 75,276 - - - - - - 75,276 222 Uniforms & Laundry - - - 17,323 - - - - - - 17,323 223 Dues & Subscriptions - - - 2,044 - - - - - - 2,044 224 Training and Meetings - - - 9,198 - - - - - - 9,198 Prepared by Stantec Consulting Services Inc. on 11/11/2025 52 Appendix B
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225 Professional & Contractual Fee - - - 255,500 - - - - - - 255,500 226 Supplies - - - 613,200 - - - - - - 613,200 227 Small Equipment/Furniture - - - 76,650 - - - - - - 76,650 228 Fuel & Oil - - - 5,621 - - - - - - 5,621 229 Maintenance & Repairs - - - 6,929 - - - - - - 6,929 230 Water/Sewer Line Repair - - - 255,500 - - - - - - 255,500 231 Rentals - - - 5,110 - - - - - - 5,110 232 Insurance Alloc - Public Liab - - - 549,163 - - - - - - 549,163 233 Building Maint. Svc Alloc - - - 36,901 - - - - - - 36,901 234 Custodial Services Allocation - - - 4,256 - - - - - - 4,256 235 Facility Capital Repair Alloc. - - - 3,213 - - - - - - 3,213 236 Vehicle Replacement Reserve - - - 338,750 - - - - - - 338,750 237 Vehicle Maintenance Allocation - - - 312,170 - - - - - - 312,170 238 IT Services Allocation - - - 200,716 - - - - - - 200,716 239 Benefits Admin. Allocation - - - 29,074 - - - - - - 29,074 240 Admin. Indirect Costs - - - 173,108 - - - - - - 173,108 241 Furniture, Equipment, & Machin - - - 128,125 - - - - - - 128,125 242 WtrLines,Mains,Sewer,StormDrai - - - 143,500 - - - - - - 143,500 243 Salaries-Regular Miscellaneous - 518,055 - - - 225,120 - - - - 743,175 244 Wages - Nonregular - 26,976 - - - 11,722 - - - - 38,699 245 Overtime Salaries - Misc - 71,174 - - - 30,928 - - - - 102,102 246 Health Insurance - 89,297 - - - 38,804 - - - - 128,101 247 Dental Insurance - 2,207 - - - 959 - - - - 3,167 248 Vision Insurance - 781 - - - 340 - - - - 1,121 249 Retiree Health Insurance - 3,925 - - - 1,706 - - - - 5,630 250 Other Insurance - 3,144 - - - 1,366 - - - - 4,510 251 Workers' Compensation - 8,698 - - - 3,780 - - - - 12,478 252 PERS Misc. - Employee Paid - 57,394 - - - 24,940 - - - - 82,334 253 PERS UAL-Misc. - 121,576 - - - 52,831 - - - - 174,407 254 Medicare (1.45% of salary) - 7,395 - - - 3,213 - - - - 10,608 255 Uniform / Boot Allowance - 1,422 - - - 618 - - - - 2,040 256 Flex Credit - 32,956 - - - 14,321 - - - - 47,277 257 Uniforms & Laundry - 7,705 - - - 3,348 - - - - 11,053 258 Dues & Subscriptions - 1,510 - - - 656 - - - - 2,167 259 Training and Meetings - 3,082 - - - 1,339 - - - - 4,421 260 Professional & Contractual Fee - 103,834 - - - 45,121 - - - - 148,954 261 Supplies - - - - - - - - - 357,700 357,700 262 Small Equipment/Furniture - 10,686 - - - 4,644 - - - - 15,330 263 Maintenance & Repairs - 89,052 - - - 38,698 - - - - 127,750 264 Insurance Alloc - Public Liab - 254,992 - - - 110,806 - - - - 365,798 265 Building Maint. Svc Alloc - 16,156 - - - 7,020 - - - - 23,176 266 Custodial Services Allocation - 1,863 - - - 810 - - - - 2,673 267 Facility Capital Repair Alloc. - 1,407 - - - 611 - - - - 2,018 268 Vehicle Replacement Reserve - 72,242 - - - 31,393 - - - - 103,635 269 Vehicle Maintenance Allocation - 67,523 - - - 29,342 - - - - 96,865 270 IT Services Allocation - 99,976 - - - 43,444 - - - - 143,420 271 Benefits Admin. Allocation - 12,729 - - - 5,531 - - - - 18,260 272 Admin. Indirect Costs - 120,671 - - - 52,437 - - - - 173,108 273 Salaries-Regular Miscellaneous - 736,884 - - - - - - - - 736,884 274 Overtime Salaries - Misc - 66,300 - - - - - - - - 66,300 275 Opt-Out/SPIL - 1,326 - - - - - - - - 1,326 276 Health Insurance - 140,642 - - - - - - - - 140,642 277 Dental Insurance - 2,741 - - - - - - - - 2,741 278 Vision Insurance - 1,121 - - - - - - - - 1,121 279 Other Insurance - 4,619 - - - - - - - - 4,619 280 Workers' Compensation - 12,478 - - - - - - - - 12,478 281 PERS Misc. - Employee Paid - 79,765 - - - - - - - - 79,765 282 PERS UAL-Misc. - 166,441 - - - - - - - - 166,441 283 Medicare (1.45% of salary) - 10,481 - - - - - - - - 10,481 284 Uniform / Boot Allowance - 1,836 - - - - - - - - 1,836 285 Bilingual Pay - 7,956 - - - - - - - - 7,956 Prepared by Stantec Consulting Services Inc. on 11/11/2025 53 Appendix B
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rvices
Con
ser
vat
ion
Pu
rch
ased
Water
Tota
l
$ Allocation
286 Flex Credit - 43,299 - - - - - - - - 43,299 287 Uniforms & Laundry - 9,913 - - - - - - - - 9,913 288 Dues & Subscriptions - 526 - - - - - - - - 526 289 Training and Meetings - 5,621 - - - - - - - - 5,621 290 Professional & Contractual Fee - 10,220 - - - - - - - - 10,220 291 Supplies - 66,430 - - - - - - - - 66,430 292 Small Equipment/Furniture - 5,110 - - - - - - - - 5,110 293 Water Meters - - - - - - - 638,750 - - 638,750 294 Printing, Binding, & Duplicate - 3,577 - - - - - - - - 3,577 295 Maintenance & Repairs - 12,264 - - - - - - - - 12,264 296 Rentals - 2,555 - - - - - - - - 2,555 297 Insurance Alloc - Public Liab - 365,798 - - - - - - - - 365,798 298 Building Maint. Svc Alloc - 23,176 - - - - - - - - 23,176 299 Custodial Services Allocation - 2,673 - - - - - - - - 2,673 300 Facility Capital Repair Alloc. - 2,018 - - - - - - - - 2,018 301 Vehicle Replacement Reserve - 73,417 - - - - - - - - 73,417 302 Vehicle Maintenance Allocation - 150,346 - - - - - - - - 150,346 303 IT Services Allocation - 177,333 - - - - - - - - 177,333 304 Benefits Admin. Allocation - 18,260 - - - - - - - - 18,260 305 Admin. Indirect Costs - 173,108 - - - - - - - - 173,108 306 Salaries-Regular Miscellaneous - 300,829 - - - - - - - - 300,829 307 Wages - Nonregular - 20,706 - - - - - - - - 20,706 308 Overtime Salaries - Misc - 2,040 - - - - - - - - 2,040 309 Health Insurance - 12,341 - - - - - - - - 12,341 310 Dental Insurance - 1,250 - - - - - - - - 1,250 311 Vision Insurance - 625 - - - - - - - - 625 312 Other Insurance - 1,325 - - - - - - - - 1,325 313 Workers' Compensation - 5,588 - - - - - - - - 5,588 314 PERS Misc. - Employee Paid - 19,312 - - - - - - - - 19,312 315 PERS UAL-Misc. - 44,946 - - - - - - - - 44,946 316 Medicare (1.45% of salary) - 2,781 - - - - - - - - 2,781 317 Uniform / Boot Allowance - 408 - - - - - - - - 408 318 Flex Credit - 9,180 - - - - - - - - 9,180 319 Dues & Subscriptions - 3,352 - - - - - - - - 3,352 320 Training and Meetings - 3,168 - - - - - - - - 3,168 321 Legal Fees - 143 - - - - - - - - 143
322 Professional & Contractual Fee - 158,410 - - - - - - - - 158,410 323 Water Quality Report - 6,541 - - - - - - - - 6,541 324 Water Quality Testing - 51,100 - - - - - - - - 51,100 325 Water Efficiency Fees - 20,951 - - - - - - - - 20,951 326 Supplies - 1,226 - - - - - - - - 1,226 327 Postage - 12,264 - - - - - - - - 12,264 328 Small Equipment/Furniture - 6,132 - - - - - - - - 6,132 329 Advertising & Promotion - 15,330 - - - - - - - - 15,330 330 Printing, Binding, & Duplicate - 1,022 - - - - - - - - 1,022 331 Maintenance & Repairs - 204 - - - - - - - - 204 332 Lease Payment - 609 - - - - - - - - 609 333 Insurance Alloc - Public Liab - 60,119 - - - - - - - - 60,119 334 Building Maint. Svc Alloc - 4,500 - - - - - - - - 4,500 335 Custodial Services Allocation - 519 - - - - - - - - 519 Prepared by Stantec Consulting Services Inc. on 11/11/2025 54 Appendix B
Water System Expense Allocation to Functions Schedule 5 Budget Line Items Gene
ral & Ad
min
So
urce of Supp
ly
Treatmen
t
Tran
sm
issio
n &
Distri
bu
tion
Pu
mp
ing
Storag
e
Cus
tomer
Servi
ce
Meters
& Se
rvices
Con
ser
vat
ion
Pu
rch
ased
Water
Tota
l
$ Allocation
336 Facility Capital Repair Alloc. - 391 - - - - - - - - 391 337 Vehicle Replacement Reserve - 4,607 - - - - - - - - 4,607 338 Vehicle Maintenance Allocation - 14,870 - - - - - - - - 14,870 339 IT Services Allocation - 49,475 - - - - - - - - 49,475 340 Benefits Admin. Allocation - 3,545 - - - - - - - - 3,545 341 Subtotal 28,591$ 5,055,131$ 407$ 5,997,122$ 832$ 798,302$ -$ 638,750$ -$ 357,700$ 12,876,834$ Department 2515 Parks & Recreation
342 Salaries-Regular Miscellaneous -$ -$ -$ -$ -$ -$ 33,087 $ -$ -$ -$ 33,087$ 343 Health Insurance - - - - - - 4,024 - - - 4,024 344 Dental Insurance - - - - - - 134 - - - 134 345 Vision Insurance - - - - - - 57 - - - 57 346 Other Insurance - - - - - - 216 - - - 216 347 Workers' Compensation - - - - - - 2,179 - - - 2,179 348 PERS Misc. - Employee Paid - - - - - - 3,350 - - - 3,350 349 PERS UAL-Misc. - - - - - - 7,810 - - - 7,810 350 Medicare (1.45% of salary) - - - - - - 494 - - - 494 351 Bilingual Pay - - - - - - 955 - - - 955
352 Flex Credit - - - - - - 2,754 - - - 2,754 353 Subtotal -$ -$ -$ -$ -$ -$ 55,059$ -$ -$ -$ 55,059$ FTE Module
354 Senior Civil Engineer -$ 9,604 $ 136$ 244,374$ 279$ 4,173$ -$ -$ -$ -$ 258,566$ 355 Construction Inspector - 7,122 101 181,220 207 3,095 - - - - 191,745 356 Subtotal -$ 16,725$ 238$ 425,595$ 485$ 7,268$ -$ -$ -$ -$ 450,311$ 357 Existing Debt Service Total 2,848$ 19,887$ 283$ 506,036$ 577$ 8,642$ -$ 6,244$ -$ -$ 544,516$ 358 Projects designated to be paid by Revenue Fund 49,896$ 348,405 4,951 8,865,580 10,111 151,399 - 109,390 - - 9,539,730$ 359 Capital Projects Total 49,896$ 348,405$ 4,951$ 8,865,580$ 10,111$ 151,399$ -$ 109,390$ -$ -$ 9,539,730$ 360 Total Revenue Requirements 89,144$ 7,129,049$ 7,149$ 18,070,368$ 14,600$ 1,004,478$ 1,480,472$ 754,384$ 178,844$ 24,306,247$ 53,034,737$ 361 Indirect Reallocation of General & Admin -$ 7,671$ 29$ 56,652$ 60$ 1,558$ 1,256$ 1,150$ 152$ 20,617$ 89,144$ 362 Total Functionalized Costs (G&A
reallocated) -$ 7,136,720$ 7,178$ 18,127,021$ 14,660$ 1,006,036$ 1,481,728$ 755,533$ 178,996$ 24,326,864$ 53,034,737$ Prepared by Stantec Consulting Services Inc. on 11/11/2025 55 2025 Water Rate Study Draft Report
Appendix C Proposed Rate Schedules
Project: City of Fullerton | Water Rate Study 56
Appendix C Proposed Rate Schedules
Schedule 6 - Proposed Rates effective April 1, 2026
Schedule 7 - Proposed Rates effective April 1, 2027
Schedule 8 - Proposed Rates effective April 1, 2028
Schedule 9 - Proposed Rates effective April 1, 2029
Schedule 10 - Proposed Rates effective April 1, 2030
Appendix C
Projected Rate Schedule - April 1, 2026 Schedule 6
Meter Size Monthly Rate
5/8" & 3/4" $36.65
1" $58.35
1 1/2" $112.59
2" $177.68
3" $351.25
4" $546.53
6" $1,088.95
8" $1,739.86
10" $2,607.73
12" $3,665.45
Tier Rate
(per TGAL)
Single Family
Monthly Allocation
Multi-Family
Monthly Allocation
1 $3.80 11,900 gal. 5,000 gal.
2 $6.99 17,800 gal. 7,800 gal.
3 $7.52
Uniform Usage Rates (Non-Residential accounts)
Rate
($ per TGAL)
$4.62
Fixed Meter Charge
Tiered Usage Rates (Residential accounts)
All Add. Usage
Prepared by Stantec Consulting Services Inc. on 11/11/2025 57 Appendix C
Projected Rate Schedule - April 1, 2027 Schedule 7
Meter Size Monthly Rate
5/8" & 3/4" $41.05
1" $65.35
1 1/2" $126.10
2" $199.00
3" $393.40
4" $612.11
6" $1,219.62
8" $1,948.64
10" $2,920.66
12" $4,105.30
Tier Rate
(per TGAL)
Single Family
Monthly Allocation
Multi-Family
Monthly Allocation
1 $4.26 11,900 gal. 5,000 gal.
2 $7.83 17,800 gal. 7,800 gal.
3 $8.42
$5.17
Fixed Meter Charge
Tiered Usage Rates (Residential accounts)
All Add. Usage
Uniform Usage Rates (Non-Residential accounts)
Rate
($ per TGAL)
Prepared by Stantec Consulting Services Inc. on 11/11/2025 58 Appendix C
Projected Rate Schedule - April 1, 2028 Schedule 8
Meter Size Monthly Rate
5/8" & 3/4" $45.97
1" $73.19
1 1/2" $141.23
2" $222.88
3" $440.61
4" $685.57
6" $1,365.98
8" $2,182.48
10" $3,271.14
12" $4,597.94
Tier Rate
(per TGAL)
Single Family
Monthly Allocation
Multi-Family
Monthly Allocation
1 $4.77 11,900 gal. 5,000 gal.
2 $8.77 17,800 gal. 7,800 gal.
3 $9.43
Fixed Meter Charge
Tiered Usage Rates (Residential accounts)
All Add. Usage
Uniform Usage Rates (Non-Residential accounts)
Rate
($ per TGAL)
$5.80
Prepared by Stantec Consulting Services Inc. on 11/11/2025 59 Appendix C
Projected Rate Schedule - April 1, 2029 Schedule 9
Meter Size Monthly Rate
5/8" & 3/4" $51.49
1" $81.98
1 1/2" $158.18
2" $249.63
3" $493.48
4" $767.84
6" $1,529.90
8" $2,444.38
10" $3,663.67
12" $5,149.69
Tier Rate
(per TGAL)
Single Family
Monthly Allocation
Multi-Family
Monthly Allocation
1 $5.34 11,900 gal. 5,000 gal.
2 $9.82 17,800 gal. 7,800 gal.
3 $10.57
Fixed Meter Charge
Tiered Usage Rates (Residential accounts)
All Add. Usage
Uniform Usage Rates (Non-Residential accounts)
Rate
($ per TGAL)
$6.49
Prepared by Stantec Consulting Services Inc. on 11/11/2025 60 Appendix C
Projected Rate Schedule - April 1, 2030 Schedule 10
Meter Size Monthly Rate
5/8" & 3/4" $55.09
1" $87.72
1 1/2" $169.25
2" $267.10
3" $528.02
4" $821.58
6" $1,636.99
8" $2,615.48
10" $3,920.13
12" $5,510.17
Tier Rate
(per TGAL)
Single Family
Monthly Allocation
Multi-Family
Monthly Allocation
1 $5.71 11,900 gal. 5,000 gal.
2 $10.51 17,800 gal. 7,800 gal.
3 $11.30
Fixed Meter Charge
Tiered Usage Rates (Residential accounts)
All Add. Usage
Uniform Usage Rates (Non-Residential accounts)
Rate
($ per TGAL)
$6.95
Prepared by Stantec Consulting Services Inc. on 11/11/2025 61

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City Council - Successor Agency - Housing AuthorityNovember 18, 2025

City Council - Successor Agency - Housing Authority
November 18, 2025