City of Rialto
12/12/2023
Proposed Rate Schedule
Set a Public Hearing for February 27, 2024
Agenda
Goals of This Presentation
Revenue Analysis Sum.: Status Quo:
No Rate Increase, No CIP
Proposed Rate Scenario
High Priority CIP Projects
Water then Sewer
Agenda (cont.)
Results (Water First, Then Wastewater)
Review Existing Rate Schedule
Cost-of-Service Analysis Methodology Overview
Proposed Changes to Rate Structure
Proposed Rate Structure
Monthly Bill Comparison
Comparator Rates
Water & Wastewater Public Hearing Schedule
Goals of This Presentation
Present rate study results
Show proposed rate structure changes
Show proposed rate schedule
Show effect on monthly bills
Revenue Analysis SummaryStatus Quo: No Rate Increases; No CIP $13.2M in unfunded water revenue stabilization in next five years Monthly bill if rate increases are applied across the board to Monthly Service Charges and Commodity Charges.
Actual rate structure alternatives considered by the City may result in different monthly bill totals.
Proposed Rate Scenario
High-priority CIP
~$60M City funded capital in addition to grant funding
30-year debt at 6% interest rate
By FY 27/28, collect depreciation expense through rates No external Revenue Stabilization
High-Priority Water Capital Improvement
High-Priority Wastewater Capital Improvement
Existing Water Rate Schedule
Existing Water Rate Schedule
Water Cost-of-Service Analysis Methodology Overview
Three steps in a Cost-of-Service Analysis
Functionalization: divide costs into system functions (source, distribution, customer, meters, administration, public fire protection, public and private fire protection) Allocation: divide functionalized costs according to service characteristics (average day use, peak use, customer accounts, meter equivalents, public fire protection, public and private fire protection; isolate costs to be included in tiered rate calculations) Distribution: define revenue requirement for each customer class
Proposed Changes to Rate Structure
Redefine water tiers
Tier 1 aligns with ~indoor water use for single-family residential customers Simplify rate structure
Maintain existing customer classes
Maintain policy of not offering Tier 1 to landscape customers Use non-rate revenues to lower the Tier 1 and Tier 2 rates
Proposed Rate Schedule: Monthly Minimum Charge
Proposed Rate Schedule: Monthly Minimum Charge
Policy tradeoff: increase the Monthly Minimum Charge by $1/month, decrease the volume charge by $0.05/ccf.
Proposed Rate Schedule: Monthly Minimum Charge
Policy tradeoff: increase the Monthly Minimum Charge by $1/month, decrease the volume charge by $0.05/ccf.
Proposed Rate Schedule: Volume Charge
Current rates for each tier
0 – 5: $1.07/ccf
6 – 30: $1.69/ccf
31 – 60: $2.70/ccf
> 61: $3.32/ccf
Proposed Rate Schedule: Volume Charge
Current rates for each tier
0 – 5: $1.07/ccf
6 – 30: $1.69/ccf
31 – 60: $2.70/ccf
> 61: $3.32/ccf
Proposed Rate Schedule: Volume Charge
Current rates for each tier
0 – 5: $1.07/ccf
6 – 30: $1.69/ccf
31 – 60: $2.70/ccf
> 61: $3.32/ccf
Existing Wastewater Rate Schedule
Existing Wastewater Rate Schedule
Wastewater Cost-of-Service Analysis Methodology Overview Three steps in a Cost-of-Service Analysis
Functionalization: divide costs into system functions (treatment, collection, customer, and administration) Allocation: divide functionalized costs according to service characteristics (flow, biochemical oxygen demand, total suspended solids, customer) Distribution: define revenue requirement for each customer class
Wastewater Rate Structure Notes
Extraterritorial customers continue to pay 1.3X rate charged to in-City customers More gradual Commercial IV rate increases
Revenue neutral, by adjusting Commercial II rates
Proposed Wastewater Rates
Proposed Wastewater Rates
Proposed Wastewater Rates
Comparator Rates
Water & Wastewater Public Hearing Schedule
12/12/23: City Council Meeting
Set Prop 218 Hearing
12/19/23:
Utilities Commission Meeting
Public Hearing Presentation
No later than 01/08/24:
Mail Prop 218 Notification to property owners and utility bill account holders (aka. tenants) Final Draft Report Available for Public Review
January – February 2024:
Public Engagement of Rate Setting Process
Thursday, January 25, 2024
6:30 pm to 8:30 pm
Saturday, February 3, 2024
10 am to Noon
Saturday, February 10, 2024
10 am to Noon: Special Engagement with Presentation and Q&A in Spanish Saturday, February 17, 2024
10 am to Noon
02/27/24: City Council Meeting
Conduct Prop 218 Public Hearing
March 1, 2024:
Rates Effective
Thank you for your time.