“Note: This PowerPoint presentation is intended solely as a visual aid to an oral staff presentation of an agenda report topic. In the event of any differences between the presentation and the agenda report, the information in the agenda report prevails.”
CITY OF MANHATTAN BEACH
PROPOSAL TO INCREASE WASTEWATER RATES
March 21, 2023
2CITY OF
MANHATTAN BEACH
“Note: This PowerPoint presentation is intended solely as a visual aid to an oral staff presentation of an agenda report topic. In the event of any differences between the presentation and the agenda report, the information in the agenda report prevails.”
WASTEWATER RATES INTRODUCTION
MARCH 21, 2023
PROPOSAL TO INCREASE WASTEWATER RATES
Wastewater Rates have
not increased in 9 years.
Current wastewater
Rates are insufficient.
City hired Black & Veatch
to conduct rate analysis.
To meet the City’s needs,
a 45% increase over the
next five years is needed.
3CITY OF
MANHATTAN BEACH
“Note: This PowerPoint presentation is intended solely as a visual aid to an oral staff presentation of an agenda report topic. In the event of any differences between the presentation and the agenda report, the information in the agenda report prevails.” • Operating costs (salaries, benefits, supplies).
• Capital costs (lift stations, force and sewer
mains).
• Debt service on bonds issued for capital
costs and pension obligations.
• Wastewater enterprise fund is not
subsidized by general fund taxes.
WHAT IS FUNDED BY CUSTOMER UTILITY BILLS?
MARCH 21, 2023
PROPOSAL TO INCREASE WASTEWATER RATES
4CITY OF
MANHATTAN BEACH
“Note: This PowerPoint presentation is intended solely as a visual aid to an oral staff presentation of an agenda report topic. In the event of any differences between the presentation and the agenda report, the information in the agenda report prevails.” • Costs to serve wastewater
have gone up since 2014.
• Costs of parts and
materials have increased
• Compounded inflation
since 2014 is 25.4%.
• Capital project and
maintenance costs are
increasing.
WHY DO RATES NEED TO BE ADJUSTED?
MARCH 21, 2023
PROPOSAL TO INCREASE WASTEWATER RATES
0%
10%
20%
30%
40%
50%
60%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 CPI Cumulative Increases 2009-2022
Water/sewer rates All items(average) Food prices
5CITY OF
MANHATTAN BEACH
“Note: This PowerPoint presentation is intended solely as a visual aid to an oral staff presentation of an agenda report topic. In the event of any differences between the presentation and the agenda report, the information in the agenda report prevails.” PROPOSED RATE ADJUSTMENTS – 45% OVER 5 YEARS
MARCH 21, 2023
PROPOSAL TO INCREASE WASTEWATER RATES
Nov. 2023 Nov. 2024 Nov. 2025 Nov. 2026 Nov. 2027
17.00% 17.00% 4.00% 4.00% 3.00%
$1.1
$0.8
$1.0 $1.0
$1.1
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
Millions
Ending Balances
Fund Balance Operating Reserve Target
6CITY OF
MANHATTAN BEACH
“Note: This PowerPoint presentation is intended solely as a visual aid to an oral staff presentation of an agenda report topic. In the event of any differences between the presentation and the agenda report, the information in the agenda report prevails.”
LOCAL WASTEWATER RATE COMPARISON
MARCH 21, 2023
PROPOSAL TO INCREASE WASTEWATER RATES
$12.50 $16.86 $21.57 $22.74 $22.16
$32.50 $36.52
$42.01
$93.30
$0.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
$80.00
$90.00
$100.00
Inglewood Torrrance Gardena Long Beach Hermosa
Beach
Redondo
Beach
Manhattan
Beach
(Existing)
Manhattan
Beach
(Proposed)
El Segundo
Residential Bi-Monthly Bill Wastewater Bill
7CITY OF
MANHATTAN BEACH
“Note: This PowerPoint presentation is intended solely as a visual aid to an oral staff presentation of an agenda report topic. In the event of any differences between the presentation and the agenda report, the information in the agenda report prevails.”
BILL IMPACTS
MARCH 21, 2023
PROPOSAL TO INCREASE WASTEWATER RATES
For the most common meter size and usage, a typical single-family residential customer will see an increase of $5.49 or 15.0% on their bi-monthly bill. November 1, 2023: Effective Date of new rates.
January 1, 2024: New rates reflected on bills.
Single Family Residential
Meter Size Usage (HCF)
Currently Bi-
Monthly Bill
Proposed Bi-
Monthly Bill
Difference
($)
Difference
(%)
5/8" or 3/4" 0 $11.12 $12.80 $1.68 15.1%
5 $17.47 $20.11 $2.64 15.1%
10 $23.82 $27.41 $3.59 15.1%
15 $30.17 $34.71 $4.54 15.0%
20 $36.52 $42.01 $5.49 15.0%
40 $61.92 $71.22 $9.30 15.0%
80 $112.72 $129.63 $16.91 15.0%
8CITY OF
MANHATTAN BEACH
“Note: This PowerPoint presentation is intended solely as a visual aid to an oral staff presentation of an agenda report topic. In the event of any differences between the presentation and the agenda report, the information in the agenda report prevails.” FINANCIAL PROJECTIONS – INFLATIONARY ASSUMPTIONS
MARCH 21, 2023
PROPOSAL TO INCREASE WASTEWATER RATES
9CITY OF
MANHATTAN BEACH
“Note: This PowerPoint presentation is intended solely as a visual aid to an oral staff presentation of an agenda report topic. In the event of any differences between the presentation and the agenda report, the information in the agenda report prevails.”
OPERATIONS & MAINTENANCE EXPENSES
MARCH 21, 2023
PROPOSAL TO INCREASE WASTEWATER RATES
10CITY OF
MANHATTAN BEACH
“Note: This PowerPoint presentation is intended solely as a visual aid to an oral staff presentation of an agenda report topic. In the event of any differences between the presentation and the agenda report, the information in the agenda report prevails.”
CAPITAL EXPENSES
MARCH 21, 2023
PROPOSAL TO INCREASE WASTEWATER RATES
11CITY OF
MANHATTAN BEACH
“Note: This PowerPoint presentation is intended solely as a visual aid to an oral staff presentation of an agenda report topic. In the event of any differences between the presentation and the agenda report, the information in the agenda report prevails.” • To implement new customer
fees, Council must initiate the
Prop. 218 process.
•Process requires:
ºCity mail a notice to
property
owners/ratepayers.
º45 day protest period.
ºHold Public Hearing
after protest period.
PROP 218 PROCESS
MARCH 21, 2023
PROPOSAL TO INCREASE WATER RATES
Sample Prop. 218 Notice
12CITY OF
MANHATTAN BEACH
“Note: This PowerPoint presentation is intended solely as a visual aid to an oral staff presentation of an agenda report topic. In the event of any differences between the presentation and the agenda report, the information in the agenda report prevails.” 218 PROCESS TIMELINE
MARCH 21, 2023
PROPOSAL TO INCREASE WASTEWATER RATES
The below proposed timeline represents City Council adopting the resolution to initiate the Proposition 218 process.
Dates Item
March 21, 2023 City Council initiates the Proposition 218 process; sets May 16, 2023 for Public Hearing.
March 28, 2023 Postmark Proposition 218 notice, mailing to property owners/rate payers (required) and tenants/occupants
(courtesy).
April 19, 2023 Community Meeting (in-person & Zoom).
May 16, 2023 Public Hearing to announce protest count and determine if Council can approve rate increase.
November 1, 2023 New rates go into effect (if protest count is less than 50% + 1 and Council approves rate increase).
January 1, 2024 New wastewater rates reflected on customer bills. 13CITY OF
MANHATTAN BEACH
“Note: This PowerPoint presentation is intended solely as a visual aid to an oral staff presentation of an agenda report topic. In the event of any differences between the presentation and the agenda report, the information in the agenda report prevails.” Staff requests direction on the following:
1. Adopting Resolution 23-0029 Initiating the Proposition 218 Process and Setting a Date and Time for a Public
Hearing.
Recommending May 16, 2023, for the Public Hearing.
2. Adopting Resolution 23-0030 Regarding Procedures in
Connection with Proposed Wastewater Fee Increases.
RECOMMENDATION
MARCH 21, 2023
PROPOSAL TO INCREASE WASTEWATER RATES
Nov. 2023 Nov. 2024 Nov. 2025 Nov. 2026 Nov. 2027
17.00% 17.00% 4.00% 4.00% 3.00%