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Item9_Prop-218-Authorization

Grover Beach City Council
April 14, 2025

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Item9_Prop-218-Authorization
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April 14, 2025
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Agenda Item No. 9
$3.6

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: April 14, 2025 FROM: Matthew Bronson, City Manager
PREPARED BY: Nick Szamet, Administrative Services Director SUBJECT: Authorization of Proposition 218 Noticing and Hearing for Wastewater Utility Rate Increases

RECOMMENDATION
Receive and file the final Wastewater Rate Study and authorize staff to commence a Proposition 218 public noticing process and schedule a public hearing on June 9, 2025 to consider increases in the City’s wastewater utility rates.

BACKGROUND
On March 24, 2025, the Council received the results of the updated Wastewater Utility Rate Study provided by Clayton Tuckfield of Tuckfield and Associates. The current rate structure was initially adopted in May 2021 and re-established following passage of citizen initiative Measure G-24 in November 2024, which repealed the rate structure adopted in December 2023. The existing rate structure does not provide sufficient funding for increased regular operations and maintenance costs or an estimated $15 million in needed infrastructure improvements to address existing system deficiencies and future needs, along with ensuring needed reserves in the Wastewater Fund. The inability to fund necessary projects for the City’s sewer system could pose significant risks to community health and safety and has resulted in delays to Measure K-14 residential street improvement projects.

As a result, the study recommends annual wastewater rate increases of 17.8% for each of the next five years beginning July 1, 2025. Under this rate structure, the average bi-monthly bill for single-family residential wastewater customers would increase from $25.64 to $30.20 in 2025; for a total monthly increase of $2.28 per month. Currently, the City’s wastewater rates are near the lowest in the county and the two agencies that currently have lower rates (Arroyo Grande and Oceano) are undergoing water and sewer rate studies to increase their rates. If the proposed rate increases are adopted and go into effect on July 1, 2025, the City’s wastewater rates will continue to be among the lowest in the county.

The final version of the Wastewater Utility Rate Study Report is shown as Attachment 1 with the Proposition 218 public notice shown as Attachment 2. Pursuant to Council direction, the City sent out a mailer to all property owners and wastewater utility customers prior to this meeting to inform the community about the proposed rate increases. The mailer included a link to the City’s website for additional information on wastewater rates and to submit questions and comments (https://www.groverbeach.org/724/Wastewater-Sewer-Rates). Questions and comments received will be posted on the Council agenda page prior to the meeting.

Staff Report: Wastewater Rate Study 218 Noticing Page 2 April 14, 2025
Pending the Council’s authorization of the Proposition 218 process, notices would be sent out to eligible property owners and account holders to inform them of a public hearing to be held on June 9, 2025, to consider the recommended wastewater rate increases. This notice will be sent out in both English and Spanish. Staff also has scheduled two community information sessions for additional community education on the proposed rate increases on May 8 at City Hall and May 28 at Ramona Park Community Center with both sessions from 5:00-6:30 p.m. All customers and property owners will be given the chance to review the rate increases and provide a written protest for the rate increases. However, only one protest per property parcel (APNs) from property owners, or account holders liable for payment of the service, will be counted as valid protests under Proposition 218. Should the City receive valid protests from more than 50% of eligible APNs, the rate increases cannot be adopted.

FISCAL IMPACT
The recommended rate increases would result in additional Wastewater Fund revenue of $186,514 beginning in FY 2025-26 and would result in $1,345,428 of additional revenue in FY 2029-30 of the plan. The proposed rate increases will provide sufficient funding to support regular operations and maintenance of the sewer system, as well as necessary capital projects for sewer system upgrades.

ALTERNATIVES
The Council has the following alternatives to consider:

1. Receive and file the final Wastewater Rate Study and recommendations and authorize staff to commence the Proposition 218 noticing process and public hearing on June 9 to increase the City’s wastewater utility rates; or

2. Do not authorize staff to commence the Proposition 218 noticing process and schedule the public hearing; or

3. Provide alternate direction to staff.

PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.

Attachments

1. Wastewater Utility Rate Study

2. Proposition 218 Notice
Submitted By:

Tuckfield & Associates
Contact: Mr. Clayton Tuckfield
2549 Eastbluff Dr, #450B
Newport Beach, CA 92660
(949) 760-9454
www.tuckfieldassociates.com
February 2025
Report To:

City of Grover Beach
154 S. Eighth Street
Grover Beach, CA 93433
(805) 473-4550
Report on:

Wastewater Rate Study
April 2025
Attachment 1
[This Page Intentionally Left Blank for Two-sided Printing] Tuckfield & Associates
2549 Eastbluff Drive, Suite 450B, Newport Beach, CA 92660 Phone (949) 760-9454 Fax (949) 760-2725
Email [email protected]
April 10, 2025
Mr. Nick Szamet
Administrative Services Director
City of Grover Beach
154 S. Eighth Street
Grover Beach, CA 93433
Dear Mr. Szamet:

I am pleased to present this Wastewater Rate Study (Study) report to the City of Grover Beach (City). The wastewater rates presented in this report have been developed based on industry methods that result in fair and equitable rates for the users of the wastewater system in accordance with Proposition 218.

This study includes a review and analysis of the wastewater enterprise revenue and revenue requirements, number of customers, capital improvements, financing of certain improvements, and current rate structure.

The major objectives of the Study include the following.  Generate positive levels of income in the Study period  Maintain operating and capital reserves at or greater than target levels  Maintain debt service coverage ratios at or greater than the minimum required  Meet annual capital improvement requirements through revenue from rates and charges, financing, and reserves
This report presents the findings and recommendations for the financial plan and rates for the City’s wastewater enterprise. Tables and figures throughout the report are provided to demonstrate the calculations.

It has been a pleasure to work with City staff during the performance of this study. If there are any questions, please contact me at (949) 760-9454.

Very Truly Yours,

TUCKFIELD & ASSOCIATES
G. Clayton Tuckfield
President/Project Consultant
Wastewater Rate Study
City of Grover Beach
Table of Contents
Page
Executive Summary ............................................................................................... 1 Wastewater Financial Plan .............................................................................................................................. 1 Proposed Wastewater Rates .......................................................................................................................... 1 Current Wastewater Rates ...................................................................................................................... 1 Proposed Wastewater Rate Structure and Rates.................................................................................... 2 Wastewater Bill Impacts .................................................................................................................................. 2 Wastewater Rate Survey ................................................................................................................................ 3 Introduction ............................................................................................................. 5 Background ..................................................................................................................................................... 5 Objectives ........................................................................................................................................................ 5 Scope of Study ................................................................................................................................................ 5 Assumptions ........................................................................................................... 6 Reserve Policy ................................................................................................................................................ 7 Beginning Balances and Reserve Targets ...................................................................................................... 7 Wastewater Financial Planning ............................................................................. 7 Current Wastewater Rates .............................................................................................................................. 8 Wastewater User Classifications ..................................................................................................................... 9 Number of Customers.............................................................................................................................. 9 Wastewater Financial Plan .............................................................................................................................. 9 Revenues ................................................................................................................................................. 9 Revenue Requirements ......................................................................................................................... 10 Operation and Maintenance Expense ............................................................................................ 10 Debt Service ................................................................................................................................... 11 Wastewater Capital Improvement Program ................................................................................... 11 Wastewater Financial Plan .................................................................................................................... 12 Proposed Revenue Adjustments.................................................................................................... 12 Wastewater Cost of Service ................................................................................ 15 Wastewater Rate Design ...................................................................................... 15 Proposed Wastewater Rates ................................................................................................................. 16 Wastewater Bill Impact Analysis ......................................................................... 16 Wastewater Rate Survey ...................................................................................... 17 Wastewater Rate Study
City of Grover Beach
Table of Contents (continued)
Page
List of Tables
Table ES-1 Proposed Wastewater Fixed and Variable Charges ...................................................................... 2 Table 1 Assumptions and Planning Factors ................................................................................................ 6 Table 2 June 30, 2024 Beginning Reserve Balances and Reserve Targets ............................................... 7 Table 3 Current Wastewater Rates ............................................................................................................. 8 Table 4 Historical and Projected Number of Wastewater Customers by Classification .............................. 9 Table 5 Projected Rate-based Wastewater Revenue Using Current Rates ............................................. 10 Table 6 Projected Miscellaneous Wastewater Revenue ........................................................................... 10 Table 7 Projected Wastewater Operation and Maintenance Expense ..................................................... 11 Table 8 Wastewater Capital Improvement Program ................................................................................. 12 Table 9 Wastewater Financial Plan ........................................................................................................... 13 Table 10 Proposed Wastewater Rates ....................................................................................................... 16 List of Figures
Figure ES-1 Current and Future Single-family Residential Bi-monthly Wastewater Bills ................................... 3 Figure 1 Wastewater Financial Plan Comparison of Revenue with Revenue Requirements .................... 14 Figure 2 Wastewater Reserves versus Target Reserves ........................................................................... 15 Figure 3 Current and Future Single-family Residential Bi-monthly Wastewater Bills ................................. 17 List of Charts
Chart ES-1 Single-family Residential Bi-Monthly Wastewater Bills .................................................................. 4 Chart 1 Single-family Residential Bi-Monthly Wastewater Bills Using ...................................................... 18 Wastewater Rate Study  City of Grover Beach
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Executive Summary
The City of Grover Beach (City) engaged Tuckfield & Associates to conduct a comprehensive Wastewater Rate Study (Study) for its wastewater enterprise. The Study includes development of pro forma statements of revenues and revenue requirements and new rates and charges for implementation.

Wastewater Financial Plan
The revenue and revenue requirements of the wastewater system were identified and projected to create a forward-looking financial plan for the wastewater system. Revenue included projections of wastewater service revenue from estimates of future customers applied to current wastewater service rates, and projections of miscellaneous revenue.

Annual costs include operation and maintenance (O&M) expenses, funding of capital improvements, and debt service. O&M expenses were projected by applying inflation percentage increases to the City’s FY 2024-25 budget expenses, while recognizing major expense categories such as labor costs, electric power, chemicals, capital, and other expenses.

The City has prepared a five-year Capital Improvement Program (CIP) spending plan for the wastewater system that is funded through the financial plan. Major projects of the CIP include sewer upgrades; Front Street, South Oak Park, and Nacimiento lift station upgrades; and city-wide sewer upgrade projects. CIP expenditures total about $11.6 million over the Study period from FY 2024-25 to FY 2029-30. The CIP expenditures are planned to be funded through rate revenue, debt proceeds from new debt issues, and wastewater reserves. Debt issues are planned for FY 2025-26, FY 2027-28, and FY 2029-30.

Analysis of the financial plan included the projected revenue’s ability to meet projected revenue requirements (costs) of the system. The analysis indicated that the current level of revenue received is not sufficient to meet revenue requirements. Revenue increases are required to meet future O&M expenses, meet capital spending requirements, maintain reserves, and meet debt service coverage ratios. The revenue increases include 17.8 percent increases annually beginning July 1, 2025 and each July 1 through July 1, 2029 to maintain the financial health of the wastewater enterprise. The wastewater financial plan is presented in Table 9.

Proposed Wastewater Rates
Current Wastewater Rates
The current wastewater rates consist of fixed charges for all customers and variable charges for car wash and restaurant customers. Single-family Residential, Boarding House, Hotel/Motel/Auto Court, Mobile Home, and Multifamily customers are charged by the dwelling unit. Non-residential customers are charged a fixed charge or a combination of a fixed charge and additional employee or other measure. The current rates are provided in Table ES-1 and Table 3.

Wastewater Rate Study  City of Grover Beach
Tuckfield & Associates 2
Proposed Wastewater Rate Structure and Rates
The proposed schedule of wastewater rates keeps the current wastewater rate structure in place. Wastewater rates for the Study period are updated with the analyses of this Study. Table ES-1 presents the proposed wastewater rates for the next five years.

Wastewater Bill Impacts
From Table ES-1, 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.

Figure ES-1 shows how SFR wastewater bills will increase over time with the implementation of the proposed rates from Table ES-1. The figure assumes a constant South San Luis Obispo County Sanitation District (SSLOCSD) treatment charge which is included in the wastewater bill calculation.

Table ES-1
Proposed Wastewater Fixed and Variable Charges
[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
Tuckfield & Associates 3
Wastewater Rate Survey
Chart ES-1 has been prepared to compare Grover Beach’s SFR wastewater bill with those of other communities for rates in effect in January 2025. Chart ES-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 bill calculation required a usage component. Exceptions for use of a lower volume are noted in the footnotes of Chart ES-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 ES-1
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 ES-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 ES-1 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.

Wastewater Rate Study  City of Grover Beach
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Introduction
The City of Grover Beach (City) engaged Tuckfield & Associates to conduct a comprehensive Wastewater Rate Study (Study) for its wastewater enterprise. The Study includes development of pro forma statements of revenues and revenue requirements and new wastewater rates and charges for implementation.

Background
The City of Grover Beach (City) is located along the central coast of the state of California in San Luis Obispo County, north of Los Angeles by approximately 175 miles. The City has a population of over 12,400 and provides wastewater service within the City limits. Wastewater service is accounted for in an enterprise fund separate from all other funds. The City relies upon user charges to meet all financial obligations of the wastewater enterprise.

The wastewater system consists of seven lift stations, sewer access holes, and over 26 miles of sewer collection pipe to collect the City’s wastewater. The City has contracted with the South San Luis Obispo County Sanitation District (SSLOCSD) to provide wastewater treatment service for the City’s wastewater. The elements of the contract are provided in an agreement dated October 1, 1991 between the City and SSLOCSD. Treatment and disposal charges for wastewater service are determined by SSLOCSD and are included on the customer’s bimonthly bill separately from the City’s charges for collection service. SSLOCSD treatment and disposal charges and are not included in the City’s wastewater rates.

Objectives
The objectives of this Study are to (1) review the current and future financial status of each of the wastewater enterprise, (2) make any rate adjustments to the revenue being received to ensure that revenue requirements are being met now and, in the future, including adequate reserves and debt service coverage, and (3) design wastewater rates that generate the required revenue while being fair and equitable to customers. Additionally, the Study also sought to provide the following.
 Revenue sufficiency to fund operating and capital needs  Appropriate levels of operating and capital reserves
 Rates that are consistent with industry practice
 Rates that are easy to understand and administrate
Scope of the Study
This Study includes the findings and recommendations of analyzing the wastewater enterprise’s financial status and related CIP funding. Historical trends were analyzed from data supplied by the City showing the number of customers, revenue, and revenue requirements.

Revenue requirements included O&M expenses, capital improvement funding, existing and proposed debt service, and additions to reserves. Changing conditions such as additional facilities, system growth, employee Wastewater Rate Study  City of Grover Beach
Tuckfield & Associates 6
additions/reductions, and non-recurring maintenance expenditures are recognized. Inflation for ongoing expenditures is included to reflect cost escalation.

The financial plan and rates developed herein are based on funding of the capital improvement plan as stated as well as estimates of O&M expenses developed from information provided by the City. Deviation from the financial plans, construction cost estimates and funding requirements, major operational changes, or other financial policy changes that were not foreseen, may result in the need for lower or higher revenue than anticipated. It is suggested that the City conduct an update to the rate study at least every five years for prudent rate planning.

Assumptions
Several assumptions were used to conduct the Study for the period FY 2024-25 to FY 2029-30. The assumptions included growth rates in customer accounts, interest earnings, expense inflation factors, and other assumptions used for projecting revenues, expenses, and future capital costs. The financial planning assumptions are provided in Table 1.

Table 1
Assumptions and Planning Factors
[1] Annualized growth in water accounts is based on historical information provided by staff. [2] Personnel Services growth in staffing, promotions and inflation is 3.0% percent annually.

Description Value
Annual Account & Demand growth [1]
Single-family Residential 0.5%
All Other 0.0%
Interest Income
Interest earnings on fund reserves (annual) 3.0%
Cost Escalation
Personnel Services [2] 3.0%
Benefits 8.0%
Electrical Power 5.0%
Chemicals 3.0%
Personnel Transfers 3.0%
All Other Operations & Maintenance 2.0%
Capital 3.0%
Wastewater Rate Study  City of Grover Beach
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Reserve Policy
The City currently does not have written reserve policies regarding the level of reserves to be maintained for the wastewater enterprise. However, the City does have reserve policy goals for maintaining reserves for wastewater operations and capital reserves. Reserves provide a means to meet unanticipated reductions in revenues, changes in the costs of providing services, fixed asset repair and replacement, natural disaster, and other issues.

The reserves also provide guidelines to maintain the financial health and stability of the enterprise fund.

To develop the financial plan presented in this Study, certain reserve targets have been established with the intent of providing planning criteria for the financial plan. The reserve types and the amount of reserves used in this Study are discussed below.

Operating Reserve – The purpose of the Operating Reserve is to provide working capital to meet cash flow needs during normal operations and support the operation, maintenance and administration of the utility. This reserve ensures that operations can continue should there be significant events that impact cash flow. The target balance to be maintained is 180 days (50 percent) of the current annual operating expense budget.

Capital Reserve – The Capital Reserve is used to fund replacement of assets and fund new capital improvement projects. The target balance is equal to $500,000.

Beginning Balances and Reserve Targets
As of June 30, 2024, the City’s beginning reserve balances are listed in the table below. The reserves are used in developing the financial plan for the wastewater utility. Reserve Targets are also provided in the table.

Wastewater Financial Planning
Financial planning for the wastewater system includes identifying and projecting revenues and revenue requirements for a six-year planning period for this Study. Estimates of revenue from various sources are compared with the projected revenue requirements of the wastewater system. This comparison allows the review of the adequacy of current revenue to meet annual obligations and provide the basis for any rate Table 2
June 30, 2024 Beginning Reserve Balances and Reserve Targets Reserve Reserve
Reserve Type Balance Target
Wastewater Operating Reserve $3,609,400 $740,000
Capital Replacement Reserve $500,000 $500,000
Total Reserves $4,109,400 $1,240,000
Wastewater Rate Study  City of Grover Beach
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adjustments. New wastewater rates and charges are created to recover all of the City’s annual operating and capital costs associated with the wastewater system.

This section discusses current wastewater rates, current user classifications, projected revenues and revenue requirements, capital improvement expenditures and financing sources, and proposed revenue adjustments.

Current Wastewater Rates
The current wastewater rates became effective July 1, 2024 and consist of fixed charges to residential and nonresidential customers. Car wash and restaurants customers are charged both fixed and variable charges. Though all customers are charged a fixed charge monthly, they are billed bi-monthly. Table 3 provides the current wastewater rates.

Table 3
Current Wastewater Rates
Classification July 1, 2024
$/month
Boarding House (per unit) $15.85
Per Bedroom Charge $10.20
Car Washes & Laundromats (min charge) $6.31
Church $15.36
Per parsonage or dwelling unit $13.08
Commercial Establishment (Public place up to 5 Fixtures) $15.34 Each additional fixture $4.20
Factories, Industrial Plants (20 employees or less) $10.33 Each additional employee over 20 $1.18
Hotel, Motel Auto Court or Lodge (per unit) $15.76
Mobile Home (per space) $13.08
Restaurants (min charge) $2.19
Schools (min annual charge per ADA and employee) $3.38
Schools with Cafeterias (additional) Per ADA and employees $1.41 Single-Family Dwelling Unit $13.08
Theater, Clubhouse or Place of Amusement $15.34
Travel Trailer and Recreation Vehicle Space $6.73
Multi-family, Two or More Dwellings (per unit) $13.08
Per each coin-operated washer $2.86
Excess Discharge per 100 cubic feet $0.41
Classification July 1, 2024
$/HCF
Car Wash - Per 100 cubic feet above minimum $2.07
Restaurants - Per 100 cubic feet above minimum $4.20
Wastewater Rate Study  City of Grover Beach
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Wastewater User Classifications
Number of Customers
The City classifies wastewater customers into one of many classifications. SFR customers represent more than 62 percent of the total customers served by the wastewater system. Growth is projected to occur only in SFR accounts at a rate of 0.50 percent annually or about 20 SFR accounts added each year, following the assumptions listed in Table 1. Table 4 provides the historical and projected number of customers by classification.

Wastewater Financial Plan
The financial plan provides a means of analyzing the revenue and revenue requirements of the wastewater system and its impact on reserves as well as the ability to fund on-going O&M expenses and capital infrastructure requirements. Items included in the financial pan are discussed below.

Revenues
The wastewater enterprise receives operating and miscellaneous revenue. Operating revenue is received from rates and charges for wastewater service. Revenue is projected by applying the current wastewater rates to the projected number of accounts. Table 5 presents the projected revenue from current wastewater rates.

Table 4
Historical and Projected Number of Wastewater Customers by Classification [1] Accounts/units are forecast to increase based on the assumed growth rate of 0.5% annually.

Historical Projected
Customer Class FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 Boarding House (per unit) - - - - - - -
Per Bedroom Charge - - - - - - -
Car Washes & Laundromats (min charge) 6 6 6 6 6 6 6
Church 9 9 9 9 9 9 9
Per parsonage or dwelling unit 5 5 5 5 5 5 5
Commercial Establishment (Public place up to 5 Fixtures) 381 381 381 381 381 381 381 Each additional fixture 19 19 19 19 19 19 19
Factories, Industrial Plants (20 employees or less) 32 32 32 32 32 32 32 Each additional employee over 20 6 6 6 6 6 6 6
Hotel, Motel Auto Court or Lodge (per unit) 153 153 153 153 153 153 153 Mobile Home (per space) 156 156 156 156 156 156 156
Restaurants (min charge) 37 37 37 37 37 37 37
Schools (min annual charge per ADA and employee) - - - - - - - Schools with Cafeterias (additional) Per ADA and employees - - - - - - - Single-Family Dwelling Unit [1] 4,023 4,043 4,063 4,084 4,104 4,125 4,145 Theater, Clubhouse or Place of Amusement - - - - - - -
Travel Trailer and Recreation Vehicle Space 122 122 122 122 122 122 122 Multi-family, Two or More Dwellings (per unit) 1,500 1,500 1,500 1,500 1,500 1,500 1,500 Per each coin-operated washer 1 1 1 1 1 1 1
Excess Discharge per 100 cubic feet - - - - - - -
Total Number of Customers 6,450 6,470 6,490 6,511 6,531 6,552 6,572 Wastewater Rate Study  City of Grover Beach
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Miscellaneous revenues are received from several sources including plan check and inspection fees, transfers in, General Fund loan interest repayment, and storm water revenue. Table 6 below provides sources of miscellaneous revenue.

In addition to miscellaneous revenue, the City also receives development impact fee revenue which is used to directly offset capital improvement projects and is shown in the financial plan.

Revenue Requirements
Revenue requirements of the wastewater system include O&M expenses, debt service payments, and capital improvement funding. Each of these items are discussed below.

Operation and Maintenance Expense
O&M expenses are an on-going obligation of the wastewater system and such costs are normally met by wastewater service revenue. O&M expenses include the cost of operating and maintaining the wastewater collection system facilities. Costs also include technical services and other general and administrative expenses.

O&M expenses have been projected recognizing the major expense categories of personnel services, electric power expenses, chemicals, capital outlay, and other expenses. O&M expenses are inflated with the inflation factors presented in Table 1. Table 7 provides a summary of the O&M expenses for the Study period.

Table 5
Projected Rate-based Wastewater Revenue Using Current Rates [1] Current fixed charges multiplied by the number of customers. [2] Current non-residential variable rates multiplied by projected non-residential water volumes.

Projected
Description FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 Fixed Charge Revenue [1] $1,012,352 $1,015,491 $1,018,787 $1,021,926 $1,025,222 $1,028,361 Variable Consumption Revenue [2] 32,338 32,338 32,338 32,338 32,338 32,338 Total Revenues From Current Rates $1,044,690 $1,047,829 $1,051,125 $1,054,264 $1,057,560 $1,060,699 Table 6
Projected Miscellaneous Wastewater Revenue
Budget Projected
Description FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 Miscellaneous $27,000 $27,000 $27,000 $27,000 $27,000 $27,000 General Fund Loan Interest Repayment 2,604 25,712 20,869 15,881 10,743 5,451 Storm Water Revenue 300,428 301,592 302,815 303,979 305,201 306,365 Total Miscellaneous Revenues $330,032 $354,304 $350,684 $346,860 $342,944 $338,816 Wastewater Rate Study  City of Grover Beach
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Debt Service
Currently, the City does not have any debt associated with the wastewater system. However, new debt is proposed to fund a majority of the CIP projects. A debt issue of $4.8M is proposed in FY 2025-26 that includes one year’s principal and interest as a reserve, issuance costs, and proceeds of $4.2M to fund the Sewer Upgrade for Existing Flows project, the Front Street Lift Station, and other sewer upgrades. The proposed debt issue is projected to have payments of $392,900 annually beginning in FY 2026-27 and includes an interest rate of 5.25 percent with a 20-year term.

Additional debt is proposed to be issued in FY 2027-28 in the amount of $2.18M and in FY 2029-30 in the amount and $1.97M. The debt issues include one year’s principal and interest as a reserve and issuance costs with net proceeds of $1.8 and $1.6M respectively to fund sewer upgrades and other improvements. The FY 2027-28 debt issue has estimated annual payments of $182,600 and includes an interest rate of 5.5% and 20 year term while the FY 2029-30 debt issue has payments of $167,300 and an interest rate of 5.75% and a 20 year term.

Wastewater Capital Improvement Program
The City has developed a CIP that identifies capital improvement expenditures for FY 2024-25 through FY 2029- 30 and is provided in Table 8. Over this period the City projects that it will spend approximately $11.6M. The major improvements include Sewer Upgrades for Future Flows; Front Street, South Oak Park, Nacimiento Lift Table 7
Projected Wastewater Operations and Maintenance Expense Budget Projected
Desription FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 Utility Billing
Salaries $263,263 $271,161 $279,296 $287,674 $296,303 $305,195 Benefits 92,865 100,295 108,316 116,981 126,339 136,443 All Other 78,100 79,662 81,253 82,879 84,535 86,226
Subtotal Utility Billing $434,228 $451,118 $468,865 $487,534 $507,177 $527,864 Wastewater Operations
Salaries $174,063 $179,285 $184,664 $190,204 $195,910 $201,788 Benefits 61,529 66,440 71,743 77,470 83,655 90,334
Engineering Services 36,000 36,720 37,454 38,203 38,967 39,746 Miscellaneous Fees/Charges 4,800 4,896 4,994 5,094 5,196 5,300 Maintenance of Vehicles 7,125 7,268 7,413 7,561 7,712 7,866 Repairs and Maintenance 36,000 36,720 37,454 38,203 38,967 39,746 Training and Education 5,000 5,250 5,513 5,789 6,078 6,382 Uniforms 2,400 2,448 2,497 2,547 2,598 2,650
Utilities - Electricity 11,000 11,220 11,444 11,673 11,906 12,144 Vehicle Fuel 2,700 2,754 2,809 2,865 2,922 2,980
All Other 7,600 7,752 7,905 8,064 8,224 8,389
Subtotal Operations $348,217 $360,753 $373,890 $387,673 $402,135 $417,325 Storm Water $292,060 $299,018 $306,151 $313,460 $320,950 $328,626 Non-Departmental
Salaries $87,311 $94,296 $101,840 $109,987 $118,786 $128,289 Supplies and Services 71,000 72,420 73,868 75,346 76,853 78,390 Transfers Out 248,152 253,115 258,177 263,341 268,608 273,980 Subtotal Non-Departmental $406,463 $419,831 $433,885 $448,674 $464,247 $480,659 Total Wastewater O&M Expense $1,480,968 $1,530,720 $1,582,791 $1,637,341 $1,694,509 $1,754,474 Wastewater Rate Study  City of Grover Beach
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Station Upgrades, and other sewer upgrade projects. The CIP is funded from wastewater rate revenue, development impact fee revenue, General Fund loan principal repayment, debt proceeds discussed above, and reserves.

Wastewater Financial Plan
A financial plan has been prepared that includes the revenues and revenue requirements that were identified for the wastewater system and is presented in Table 9. The plan incorporates specific financial planning criteria to provide guidance to maintain the health of the wastewater utility on an on-going basis. The criteria included the following.
 Generate positive levels of income in each year of the Study period  Maintain the operating and capital reserves at or greater than target levels  Maintain debt service coverage ratios at or greater than the minimum required  Meet annual capital replacement and improvement spending requirements Proposed Revenue Adjustments
Table 9 provides the annual revenue increases recommended to meet the financial planning criteria for the Study period. The revenue increases are required to meet future O&M expenses, meet capital spending requirements, maintain reserves, and meet debt service coverage ratios and will maintain the financial health of the wastewater enterprise. The financial plan indicates that 17.8 percent annual increases are recommended beginning July 1, 2025, and continuing on each July 1 through July 1, 2029.

Table 8
Wastewater Capital Improvement Program
[1] CIP Source: City of Grover Beach.

Projected
Project Description FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 Current Capital Improvement Program (CIP) Projects [1]
Sewer Upgrade for Existing and Future Flows $706,000 $550,000 $0 $0 $0 $0 Front Street Lift Station Upgrades 50,000 200,000 - - - - Sewer Upgrade for Existing Flows - 3,900,000 - - - -
South Oak Park Lift Station Upgrades - 190,000 - - - -
Sewer Upgrade for Existing Flows (includes Mentone) - - 2,700,000 - - - Replace Portion of Damaged Strom Drain - - - 160,000 - - Nacimiento Lift Station Upgrades - 130,000 - 400,000 - - Nacimiento Manhole Upgrades - - - - 20,000 -
Sewer Upgrade for Existing Flows - - - 630,000 - -
Sewer Upgrade for Existing Flows (Industrial Conversion) - - - - 2,000,000 - Total Wastewater CIP $756,000 $4,650,000 $320,000 $3,100,000 $790,000 $2,020,000 Wastewater Rate Study  City of Grover Beach
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Table 9
Wastewater Financial Plan
[1] Projected using current rates.
[2] Additional revenue from rate adjustments.
[3] From Table 6.
[4] Interest earnings on the average fund balance calculated at 3.0%. [5] Debt service payments calculated on debt proceeds, one year’s principal and interest, and issuance costs. [6] Proceeds net of issuance costs and a reserve equal to annual debt service of each issue. [7] The available FY 24-25 reserves balance provided by the City. Includes operating and capital fund reserves. [8] Target reserve estimated at 180 days of operation and maintenance expense plus $500,000 as a capital reserve. [9] Includes revenue from rates, rate adjustments, miscellaneous revenue, and development impact fees. [10] Minimum coverage is 125 percent.

Projected
Description FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 Proposed Revenue Increase (July 1) 17.8% 17.8% 17.8% 17.8% 17.8% Revenue
Rate-based Revenues, Current Rates [1] $1,044,690 $1,047,829 $1,051,125 $1,054,264 $1,057,560 $1,060,699 Total Additional Wastewater Revenue [2] - 186,514 407,504 669,133 978,948 1,345,428 Miscellaneous Income [3] 330,032 354,304 350,684 346,860 342,944 338,816 Rate Stabilization Reserves - 152,000 - - - -
Interest Income [4] 96,800 84,256 79,203 62,939 40,521 36,687 Total Revenue $1,471,522 $1,672,903 $2,040,516 $2,133,196 $2,419,973 $2,781,630 Operation and Maintenance Expense
Operation and Maintenance Expense $1,480,968 $1,530,720 $1,582,791 $1,637,341 $1,694,509 $1,754,474 New Debt Service [5] - 392,900 - 392,900 575,500 575,500 Total Operation and Maintenance Expense $1,480,968 $1,530,720 $1,975,691 $2,030,241 $2,270,009 $2,329,974 Net Funds Available Before Capital ($9,446) $142,183 $64,825 $102,955 $149,964 $451,656 Capital
Capital Improvements $756,000 $4,650,000 $320,000 $3,100,000 $790,000 $2,020,000 Development Impact Fees - (19,849) (35,404) - - -
General Fund Loan Principal Repayment (184,547) (161,438) (166,281) (171,270) (176,408) (181,700) New Debt Proceeds [6] (4,200,000) - (1,800,000) - (1,600,000) - Net Capital Expenditures $571,453 $268,713 $118,315 $1,128,730 $613,592 $238,300 Net Funds Available After Capital ($580,899) ($126,530) ($53,490) ($1,025,775) ($463,628) $213,356 Available Reserves
Beginning available reserves [7] $3,609,400 $3,028,501 $2,749,972 $2,696,481 $1,670,706 $1,207,078 Net Funds Available After Capital ($580,899) ($126,530) ($53,490) ($1,025,775) ($463,628) $213,356 Rate Stabilization Reserves - (152,000) - - - -
Ending available reserves $3,028,501 $2,749,972 $2,696,481 $1,670,706 $1,207,078 $1,420,434 Target Reserves [8] $1,240,000 $1,265,000 $1,291,000 $1,319,000 $1,347,000 $1,377,000 Above (below) Target $1,788,501 $1,484,972 $1,405,481 $351,706 ($139,922) $43,434 Debt Service Coverage
Net Revenues [9] ($9,446) $162,032 $493,129 $495,855 $725,464 $1,027,156 Annual Debt Service $0 $0 $392,900 $392,900 $575,500 $575,500 Coverage [10] n/a n/a 126% 126% 126% 178%
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A graphical depiction of the revenue and revenue requirements from Table 9 is presented in Figure 1. Revenue using the current rates is shown as the black line while revenue with revenue adjustments is shown as the red line.

Figure 1 shows that the revenue increases from Table 9 are necessary to meet annual revenue requirements, fund the CIP requirements, maintain the operating reserve, and meet minimum debt service coverage ratios required by debt covenants. Revenue increases beyond FY 2029-30 are assumed to include 3.0 percent annual increases.

Figure 2 provides a graphical depiction of the wastewater fund end-of-year reserves versus the Target reserves.

The green columns represent the reserve balance at the end of year while the purple line indicates the established Target Reserve level. The figure shows that the reserve balance meets the Target Reserve level in almost all years of the 10-year period while drawing down the City’s reserves to the established level.

Figure 1
Wastewater Financial Plan
Comparison of Revenue with Revenue Requirements
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 FY 31-32 FY 32-33 FY 33-34 Sources and Uses ($ Millions) Operating Exp Debt Service Capital Improvements Reserves Revenue w/o Increases Revenue with Increases Wastewater Rate Study  City of Grover Beach
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Wastewater Cost of Service
The Water Environment Federation (WEF) is an industry trade organization that provides guidance on operations, technical training, education, and management of wastewater utilities. General principles are provided to assist agencies with the design of wastewater rates and charges that are consistent with local requirements while also recognizing state laws and legal framework.

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
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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

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