The wastewater system’s operating and capital costs would normally be allocated following industry methodology from the WEF. However, water consumption information for the wastewater customer classifications is not available. The City’s costs are wastewater collection costs and may be considered to be related to wastewater flow since treatment is provided by the SSLOCSD. Because the water information is not available which would be used to estimate wastewater flow of the customer classifications, the proportionality relationship of the current fixed charges between classifications developed in the City’s last rate study is used as a cost of service relationship for the proposed wastewater rate design.
Wastewater Rate Design
The emphasis on rate design is to achieve fairness and ensure that each customer class pays its fair share of costs.
Rates should be simple to administer, easy to understand, and comply with regulatory requirements. This section Figure 2
Wastewater Reserves versus Target Reserves
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 FY 31-32 FY 32-33 FY 33-34 ($ Millions) Reserves Target Reserve Wastewater Rate Study City of Grover Beach
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describes how water rates and charges were increased and includes the proposed schedule of wastewater rates for implementation.
Proposed Wastewater Rates
The proposed schedule of wastewater rates keeps the current wastewater rate structure. Wastewater rates are increased with the revenue increase percentages provided in the financial plan, based on the discussion above section titled Wastewater Cost of Service. Table 10 provides the current wastewater rates and the proposed wastewater rates for the next five years. The proposed rates are scheduled for implementation on July 1, 2025 and on each July 1 through July 1, 2029.
Wastewater Bill Impact Analysis
From Table 10, the change in SFR customer bills that would occur from the implementation of the proposed wastewater rates for the July 1, 2025 rate increase can be determined. For a SFR customer, the bi-monthly bill will increase from $76.60 [($12.82 monthly charge + $25.48 treatment charge) x 2 months] to $81.16 [($15.10 monthly + $25.48 treatment charge) x 2 months], an increase of $4.56 or 6.0 percent.
Table 10
Proposed Wastewater Rates
[1] Fixed charge per account/dwelling unit per month.
[2] Charged on the basis of water consumption read through the meter.
Current Proposed Fixed Charges (per month)
Classification Charge Jul 1, 2025 Jul 1, 2026 Jul 1, 2027 Jul 1, 2028 Jul 1, 2029 Boarding House (per unit) $15.54 $18.31 $21.57 $25.41 $29.93 $35.26 Per Bedroom Charge 10.00 11.78 13.88 16.35 19.26 22.69
Car Washes & Laundromats (min charge) 6.19 7.29 8.59 10.12 11.92 14.04 Church 15.06 17.74 20.90 24.62 29.00 34.16
Per parsonage or dwelling unit 12.82 15.10 17.79 20.96 24.69 29.08 Commercial Establishment (Public place up to 5 Fixtures) 15.04 17.72 20.87 24.58 28.96 34.11 Each additional fixture 4.12 4.85 5.71 6.73 7.93 9.34
Factories, Industrial Plants (20 employees or less) 10.12 11.92 14.04 16.54 19.48 22.95 Each additional employee over 20 1.16 1.37 1.61 1.90 2.24 2.64 Hotel, Motel Auto Court or Lodge (per unit) 15.45 18.20 21.44 25.26 29.76 35.06 Mobile Home (per space) 12.82 15.10 17.79 20.96 24.69 29.08 Restaurants (min charge) 2.14 2.52 2.97 3.50 4.12 4.85
Schools (min annual charge per ADA and employee) 3.31 3.90 4.59 5.41 6.37 7.50 Schools with Cafeterias (additional) Per ADA and employees 1.38 1.63 1.92 2.26 2.66 3.13 Single-Family Dwelling Unit [1] 12.82 15.10 17.79 20.96 24.69 29.08 Theater, Clubhouse or Place of Amusement 15.04 17.72 20.87 24.58 28.96 34.11 Travel Trailer and Recreation Vehicle Space 6.60 7.77 9.15 10.78 12.70 14.96 Multi-family, Two or More Dwellings (per unit) [1] 12.82 15.10 17.79 20.96 24.69 29.08 Per each coin-operated washer 2.80 3.30 3.89 4.58 5.40 6.36 Excess Discharge per 100 cubic feet $0.40 $0.47 $0.55 $0.65 $0.77 $0.91 Proposed Rates ($/HCF)
Classification Charge Jul 1, 2025 Jul 1, 2026 Jul 1, 2027 Jul 1, 2028 Jul 1, 2029 Car Wash - Per 100 cubic feet above minimum [2] $2.03 $2.39 $2.82 $3.32 $3.91 $4.61 Restaurants - Per 100 cubic feet above minimum [2] $4.12 $4.85 $5.71 $6.73 $7.93 $9.34 Wastewater Rate Study City of Grover Beach
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Figure 3 shows how SFR wastewater bills will increase over time with the implementation of the proposed rates from Table 10 and assuming a constant SSLOCSD treatment charge.
Wastewater Rate Survey
A wastewater rate survey was conducted in January 2025 that included the City of Grover Beach and neighboring communities. Chart 1 uses wastewater bills for Grover Beach with the current rates and the proposed rates for implementation on July 1, 2025. Where required, the bills of other communities were calculated using a volume of 15 HCF bi-monthly (the average volume for Grover Beach) where the rate required a usage component.
Exceptions for use of a lower volume are noted in the footnotes of Chart 1. The chart indicates that with the July 1, 2025 wastewater rate implementation, a Grover Beach SFR customer will experience a bill that is among the lowest of the communities listed.
Figure 3
Current and Future Single-family Residential Bi-monthly Wastewater Bills Proposed
SFR Charges Current FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 Fixed Charges $25.64 $30.20 $35.58 $41.92 $49.38 $58.16 SSLOCSD Charge $50.96 $50.96 $50.96 $50.96 $50.96 $50.96 Fixed Charges $76.60 $81.16 $86.54 $92.88 $100.34 $109.12 Dollar Change $4.56 $5.38 $6.34 $7.46 $8.78
Percent Change 6.0% 6.6% 7.3% 8.0% 8.8%
$76.60
$81.16
$86.54
$92.88
$100.34
$109.12
$0
$20
$40
$60
$80
$100
$120
Current FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30
Fixed Charges
Wastewater Rate Study City of Grover Beach
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Chart 1
Single-family Residential Bi-Monthly Wastewater Bills
For Rates in Effect January 2025
Note: Above table uses wastewater rates in effect January 2025. Grover Beach July 2025 bill is based on the rate structure and rates in Table 10 and also includes the storm water charge.
Grover Beach, Arroyo Grande, and Oceano CSD bill includes the SSLOCSD treatment charge. San Luis Obispo includes 7 HCF per month while Paso Robles includes 6 HCF per month. 1 NOTICE TO PROPERTY OWNERS OF PUBLIC HEARING
REGARDING PROPOSED WASTEWATER RATES
Hearing Date & Time: June 9, 2025, 6:00 PM
Hearing Location: City Hall
154 South 8th Street, Grover Beach, CA 93433
Why are you receiving this notice?
The City of Grover Beach (“City”) is mailing this notice to you because you are a wastewater customer or are the owner of record of a property that receives wastewater service. This notice describes proposed changes to the wastewater rates and gives information about a public hearing to be held on June 9, 2025, at City Hall, 154 South 8th Street, Grover Beach, CA, 93433 regarding these proposed changes in accordance with California Proposition 218 Process.
What do wastewater rates fund?
The City provides wastewater service to residential, and commercial customers. Monthly wastewater rates charged to system users (“Customer”) on a bi-monthly basis are the primary source of revenue for the wastewater system. These funds are dedicated exclusively to maintaining, improving and operating the wastewater system.
Customer rates support several essential components including daily operations and routine maintenance of collection systems, critical infrastructure improvements and replacement projects to ensure system reliability, administrative costs necessary for effective system management, and building adequate financial reserves to address emergencies and unexpected repairs. This careful financial planning ensures the wastewater utility can provide reliable wastewater services now while preparing for future community needs.
Why are rate increases needed?
Current rates do not provide adequate funding for long-term operation and maintenance expenses and capital projects. The City engaged a consultant to perform a study of the City’s wastewater funds, and to recommend user rates designed to meet the City’s financial obligations, including operating, debt service costs, funds for needed capital projects, and maintenance of cash reserves. The rate structures developed in the study comply with federal, state, and City laws and guidelines. They are consistent with industry practices and are equitable among the City’s customer classes. At the City Council Meeting on March 24, 2025, the rate study was presented which included recommended wastewater utility rates. Subsequently, the City Council approved scheduling the Proposition 218 hearing for June 9, 2025.
The proposed rates are based on a comprehensive utility rate study and financial plan to ensure a reliable and functional wastewater system. The City will annually review revenues and expenditures for the wastewater funds to ensure that sufficient and appropriate revenues are collected to effectively provide for the short and long-term service needs of the community. The rate study report providing the rate development methodology is available at City Hall and on the City’s website at www.groverbeach.org.
New rates
To provide necessary funding to operate and carry out long-term improvements to the wastewater system, the City is proposing to implement new rates as a series of annual revenue adjustments over the next five years.
The following tables summarize the proposed water and wastewater rates.
Attachment 2
2 Wastewater Current and Proposed Monthly Charges
Impact on your bill
For the proposed rates effective July 1, 2025, the wastewater portion of the bill would increase from $25.64 to $30.20 bi monthly for an increase of $4.56 per billing cycle or $2.28 per month for a single-family dwelling unit.
Example wastewater calculations using proposed July 1, 2025:
City Wastewater:................................... $15.10 per Month per Dwelling Unit X 2 Months X 1 Dwelling Unit = $30.20
1.0% Utility Tax: ....................................................................................................................................................... $.31 SSLOCSD Charge................................................................................................................................................ $50.96 Total: $81.47
How do you file a protest or participate in the public hearing? The City Council will consider the new rate structure and proposed revenue increase at a public hearing on Monday, June 9 at 6:00 p.m. at City Hall, 154 South 8th Street, Grover Beach, CA, 93433. You are invited to present oral or written testimony at the public hearing. 3 Any property owner, or tenant directly liable for the proposed fee or charge, of a parcel subject to the proposed rates may submit a written protest to the proposed rate revisions. If written protests are filed with respect to a majority of the affected property parcels, the proposed rate revisions will not be adopted.
A written protest must contain the street address or Assessor's Parcel Number (APN) for the parcel(s) or utility service address with respect to which the protest is made. The protest must also be signed by the property owner or tenant directly liable for the proposed fee or charge (only one protest per APN will count). Protests may be mailed or hand delivered to the City’s offices at 154 South 8th Street, Grover Beach, CA, 93433. Protests may also be delivered to the City Clerk at the public hearing. To be valid, a signed written protest must be received by the City Clerk at or before the time of the protest hearing.
Two information sessions will be held to provide opportunities for members of the Grover Beach Community to learn more about the rate increases as well as ask questions. Please see details below.
Information Session #1 Information Session #2
Date: May 8, 2025, 5 PM – 6:30 PM Date: May 28, 2025, 5 PM – 6:30 PM Location: City Hall Location: Ramona Park Community Center I, __________________________________________, oppose the proposed sewer rate increases. (Please Print Name)
I am a property owner.
I am a tenant of the property who is directly liable for payment of the proposed fee (account holder).
Assessor’s Parcel Number or Account Holder Address:
_______________________________________________________ Signature: _______________________ Date: ________________ Proposed Sewer Rate Protest Form