PAVLETIC
CONSULTING
LLC
D R A F T Technical Memorandum
Limitations:
This document was prepared solely for the City of Ripon in accordance with professional standards at the time the services were performed and in accordance with the contract between City of Ripon and Pavletic Consulting LLC. This document is governed by the specific scope of work authorized by City of Ripon; it is not intended to be relied upon by any other party except for regulatory authorities contemplated by the scope of work. We have relied on information or instructions provided by City of Ripon and other parties and, unless otherwise expressly indicated, have made no independent investigation as to the validity, completeness, or accuracy of such information. 2014 Mann Pkwy
Celina, TX 75009
T: 510.439.6264
Prepared for: City of Ripon
Project Title: Enterprise Funds Rates and Cash Flow Evaluation Technical Memorandum – Evaluation of Garbage, Wastewater and Water Rates Adopted for Implementation on February 1, 2024
Date: December 6, 2023
To: Kevin Werner, City Engineer
From: Tommy Pavletic, Municipal Financial Services
Prepared by: < signature on final
Tommy Pavletic
Technical Memorandum Evaluation of Garbage, Wastewater and Water Rates Adopted for February 1, 2024
PAVLETIC CONSULTING LLC
1 Use of contents on this sheet is subject to the limitations specified at the beginning of this document.
A Water, Sewer and Garbage Funds Rates Study was completed in November 2020 (2020 Rates Study).
Based on findings and recommendations in the 2020 Rates Study, the City Council approved Resolution No. 20-55 which adopted garbage, wastewater and water rate increases to be effective February 1st of 2021, 2022, 2023, 2024 and 2025 (five years). This Technical Memorandum (TM) summarizes the results of our review and evaluation of the city of Ripon’s cash flow for the Garbage, Wastewater and Water Enterprise Funds and whether rate increases scheduled for February 1st of 2024 should be implemented.
SECTION 1. INTRODUCTION
Maximum garbage, wastewater and water rates adopted in Resolution No. 20-55 to become effective February 1st of 2021, 2022, 2023, 2024 and 2025 are listed in the Table 1 (Water), Table 2 (Wastewater) and Table 3 (Garbage). All rates adopted for February 1, 2021, February 1, 2022, and February 1, 2023, were implemented as scheduled. Rate increases adopted for implementation on February 1, 2024, are evaluated in this TM.
Evaluation of the previously adopted rates involves only the update of projected expenditures, revenue from rates, number of accounts and water use. Any changes to reduce rates previously adopted would not trigger a requirement for Proposition 218 procedures or a protest ballot process.
Table 1. Water Rates Adopted in Resolution No. 20-55
Adopted in Resolution 20-55 *
Prior Implemented Implemented Implemented
Review Before
Implementation
Customer Class and Meter Size FY20 FY21 FY22 FY23 FY24 FY25 Rate Change Effective Date > 1-Feb-2020 1-Feb-2021 1-Feb-2022 1-Feb-2023 1-Feb-2024 1-Feb-2025 Adopted annual percent increase > 2.0% 2.0% 2.0% 2.0% 2.0% Implemented/Recommended annual percent increase > 2.0% 2.0% 2.0% 2.0% 2.0% Residential, Commercial, Industrial
Meter Rates ($/month)
¾-inch $31.70 $32.30 $32.90 $33.60 $34.30 $35.00
1-inch $31.70 $32.30 $32.90 $33.60 $34.30 $35.00
1½-inch $53.30 $54.40 $55.50 $56.60 $57.70 $58.90
2-inch $78.50 $80.10 $81.70 $83.30 $85.00 $86.70
2½-inch $112.90 $115.00 $117.00 $119.00 $121.00 $123.00 3-inch $147.00 $150.00 $153.00 $156.00 $159.00 $162.00
4-inch $224.00 $228.00 $233.00 $238.00 $243.00 $248.00
6-inch $436.00 $445.00 $454.00 $463.00 $472.00 $481.00
8-inch $696.00 $710.00 $724.00 $738.00 $753.00 $768.00
10-inch $993.00 $1,013.00 $1,033.00 $1,054.00 $1,075.00 $1,097.00 Usage Rates ($/hcf) $1.00 $1.02 $1.04 $1.06 $1.08 $1.10 Non-potable
Meter Rates ($/month) $5.08 $5.18 $5.29 $5.40 $5.51 $5.62 Usage Rates ($/hcf) $0.86 $0.88 $0.89 $0.91 $0.93 $0.95 * Note: For clarity, rates that include the Annual Payment Discount or the reduction for Qualified Income are not shown.
Technical Memorandum Evaluation of Garbage, Wastewater and Water Rates Adopted for February 1, 2024
PAVLETIC CONSULTING LLC
2 Use of contents on this sheet is subject to the limitations specified at the beginning of this document.
Table 2. Wastewater Rates Adopted in Resolution No. 20-55 Adopted in Resolution 20-55 *
Prior Implemented Implemented Implemented
Review Before
Implementation
Customer Class and Service Type FY20 FY21 FY22 FY23 FY24 FY25 Rate Change Effective Date > 1-Feb-2020 1-Feb-2021 1-Feb-2022 1-Feb-2023 1-Feb-2024 1-Feb-2025 Adopted annual percent increase > 4.0% 4.0% 4.0% 4.0% 4.0% Implemented/Recommended annual percent increase > 4.0% 4.0% 4.0% 4.0% 4.0% Residential
Full Rate, $/month
Single family dwellings $21.50 $22.40 $23.30 $24.20 $25.20 $26.20 Dwelling unit in a duplex $21.50 $22.40 $23.30 $24.20 $25.20 $26.20 Dwelling unit in an apartment $21.50 $22.40 $23.30 $24.20 $25.20 $26.20 Separate detached apartment $1.60 $1.70 $1.80 $1.90 $2.00 $2.10 Retirement home occupants $4.70 $4.90 $5.10 $5.30 $5.50 $5.70 Commercial
Minimum Base Rate $20.50 $21.30 $22.20 $23.10 $24.00 $25.00 Flow Charge - Full Rate, hcf $1.23 $1.28 $1.33 $1.38 $1.44 $1.50 Minimum Base Rate - Annual $233.70 $242.80 $253.10 $263.30 $273.60 $285.00 Flow Charge - 95% Rate $1.19 $1.22 $1.30 $1.40 $1.50 $1.60 Minimum Base Rate w/Lndscp Credit $20.50 $21.30 $22.20 $23.10 $24.00 $25.00 Flow Charge - Lndscp Credit, hcf $1.18 $1.23 $1.28 $1.33 $1.43 $1.52 Industrial
Flow Charge, $/1000 gallons $1.55 $1.60 $1.70 $1.80 $1.90 $2.00 Biochemical Oxygen Demand, $/1000 pounds $168.00 $174.70 $181.70 $189.00 $196.60 $204.50 Suspended Solids, $/1000 pounds $186.00 $193.40 $201.10 $209.10 $217.50 $226.20 *Note: For clarity, rates that include the Annual Payment Discount or the reduction for Qualified Income are not shown.
Technical Memorandum Evaluation of Garbage, Wastewater and Water Rates Adopted for February 1, 2024
PAVLETIC CONSULTING LLC
3 Use of contents on this sheet is subject to the limitations specified at the beginning of this document.
Table 3. Garbage Rates Adopted in Resolution No. 20-55
Adopted in Resolution 20-55 *
Prior Implemented Implemented Implemented
Review Before
Implementation
Customer Class and Service Type FY20 FY21 FY22 FY23 FY24 FY25 Rate Change Effective Date > 1-Feb-2020 1-Feb-2021 1-Feb-2022 1-Feb-2023 1-Feb-2024 1-Feb-2025 Adopted annual percent increase > 5.0% 5.0% 5.0% 4.0% 4.0% Implemented/Recommended annual percent increase > 5.0% 5.0% 5.0% 4.0% 4.0% Residential
Full Rate
Res Curbside 1 Blk $32.70 $34.30 $36.00 $37.80 $39.30 $40.90 Res Curbside 2 Blk $46.50 $48.80 $51.20 $53.80 $56.00 $58.20 Res Curbside 3 Blk $60.50 $63.50 $66.70 $70.00 $72.80 $75.70 Res Curbside 4 Blk $74.30 $78.00 $81.90 $86.00 $89.40 $93.00 Res Curbside 1 Blk + 1 Grn $35.50 $37.20 $39.00 $41.00 $42.60 $44.30 Res Curbside 1 Blk + 2 Grn $38.30 $40.10 $42.00 $44.20 $45.90 $47.70 Res Curbside 2 Blk + 1 Grn $49.40 $51.70 $54.20 $57.00 $59.30 $61.60 Res Curbside 2 Blk + 2 Grn $52.20 $54.60 $57.20 $60.20 $62.60 $65.00 Res Curbside 3 Blk + 1 Grn $63.20 $66.40 $69.70 $73.20 $76.10 $79.10 Res Curbside 4 Blk + 1 Grn $77.20 $80.90 $84.90 $89.20 $92.70 $96.40 Res Curbside 1 Blk + 3 Grn $41.20 $43.00 $45.00 $47.40 $49.20 $51.10 Res Curbside 1 Blk + 4 Grn $43.80 $45.90 $48.00 $50.60 $52.50 $54.50 Res Curbside 2 Blk + 3 Grn na na $60.30 $63.40 $65.90 $68.40 Res Curbside #2 Blk Only $13.90 $14.60 $15.30 $16.10 $16.70 $17.40 Res Curbside #2 Blk + Grn $16.70 $17.50 $18.30 $19.30 $20.00 $20.80 Res Curbside 1 Grn Only $2.80 $2.90 $3.00 $3.20 $3.30 $3.40 Res Backyard 1 Blk $39.70 $41.70 $43.80 $46.00 $47.80 $49.70 Res Backyard 1 Blk + 1 Grn $49.40 $51.90 $54.50 $57.20 $59.50 $61.90 Res Curbside 2 Grn Only $5.60 $5.80 $6.00 $6.40 $6.60 $6.80 Multiple Dwelling
Duplex Curbside $65.00 $68.30 $71.70 $75.30 $78.30 $81.40 Duplex Curbside + 1 Grn $68.00 $71.20 $74.70 $78.50 $81.60 $84.80 Duplex Curbside + 2 Grn $70.00 $74.10 $77.70 $81.70 $84.90 $88.20 4-Plex Curbside + Grn Can na na $147.00 $154.90 $161.10 $167.50 Duplex Curbside 2 Blk + 1 Grn $81.90 $85.80 $90.00 $94.60 $98.30 $102.20 Triplex Curbside $98.00 $102.90 $108.00 $113.40 $117.90 $122.60 Triplex Curbside + 1 Grn $101.00 $105.80 $111.00 $116.60 $121.20 $126.00 4-Plex Curbside $131.00 $137.60 $144.50 $151.70 $157.80 $164.10 Commercial
Comm Curbside 1 Tubbie + 3 Blk na na $229.80 $284.80 $296.20 $308.00 Comm Curbside 1 Blk $32.70 $34.30 $36.00 $37.80 $39.30 $40.90 Comm Curbside 2 Blk $65.00 $68.30 $71.70 $75.30 $78.30 $81.40 Comm Curbside 2 Blk + 1 Grn $67.80 $71.20 $74.70 $78.50 $81.60 $84.80 Comm Curbside 3 Blk $98.00 $102.90 $108.00 $113.40 $117.90 $122.60 Comm Curbside 3 Blk + 1 Grn $105.80 $111.00 $116.60 $121.20 $126.00 Comm Curbside 1 Blk + 1 Grn $35.50 $37.20 $39.00 $41.00 $42.60 $44.30 Comm Curbside 9 Blk $294.00 $308.70 $324.00 $340.20 $353.70 $368.10 Comm Curbside 9 Blk + 1 Grn $311.60 $327.00 $343.40 $357.00 $371.50 Comm Backyard 1 Blk $39.70 $41.70 $43.80 $46.00 $47.80 $49.70 Comm Backyard 2 Blk $80.00 $83.40 $87.60 $92.00 $95.60 $99.40 Comm Backyard 1 Blk + 1 Grn $53.40 $56.10 $58.90 $61.80 $64.30 $66.90 Comm Curbside 1 Tubbie $148.00 $155.40 $163.20 $171.40 $178.30 $185.40 Comm Curbside 1 Tubbies + 1 Grn $158.30 $166.20 $174.60 $181.60 $188.80 Comm Curbside 2 Tubbies $294.00 $310.80 $326.40 $342.80 $356.60 $370.80 Comm Curbside 2 Tubbies + 1 Grn $313.70 $329.40 $346.00 $359.90 $374.20 Comm Curbside ANN 1 Blk $372.78 $391.02 $410.40 $430.92 $448.02 $466.26 Comm Curbside ANN 1 Blk + 1 Grn $404.70 $424.08 $444.60 $467.40 $485.64 $505.02 Comm Curbside 4 Blk + 1 Grn $133.00 $139.70 $146.70 $154.00 $160.20 $166.60 Comm Curbside ANN 3 Blk $1,117.20 $1,173.06 $1,231.20 $1,292.76 $1,344.06 $1,397.64 Comm Curbside ANN 1 Blk + 1 Grn $404.70 $424.08 $444.60 $467.40 $485.64 $505.02 Comm Curbside ANN Tubbie $1,687.20 $1,771.56 $1,860.48 $1,953.96 $2,032.62 $2,113.56 Comm Curbside ANN Tubbie + 1 Grn $1,774.46 $1,863.48 $1,957.16 $2,035.92 $2,116.96 Comm Curbside 2 Grn $5.60 $5.80 $6.00 $6.40 $6.60 $6.80 Comm Curbside 4 Grn $11.20 $11.60 $12.00 $12.80 $13.20 $13.60 Comm Curbside 6 Grn $16.80 $17.40 $18.00 $19.20 $19.80 $20.40 Comm Curbside 5 Grn +1 Blk $46.70 $48.80 $51.00 $53.80 $55.80 $57.90 Comm Curbside 1 Blk 12 Grn na na $72.00 $76.20 $78.90 $81.70 Comm Curbside 1 Blk + 2 Grn $38.30 $40.10 $42.00 $44.20 $45.90 $47.70 * Note: For clarity, Bulk rates and rates that include the Annual Payment Discount or the reduction for Qualified Income are not shown.
Technical Memorandum Evaluation of Garbage, Wastewater and Water Rates Adopted for February 1, 2024
PAVLETIC CONSULTING LLC
4 Use of contents on this sheet is subject to the limitations specified at the beginning of this document.
SECTION 2. EVALUATION OF WATER RATES AND CASH FLOW
Cash flow (expenditures, and target and ending fund balances); coverage ratios; and the percent increase in average Single Family monthly bills are shown below for the 2020 Rate Study (top figure) and the current evaluation (bottom figure). Note that current projections of the debt service coverage ratio exceed the technical minimum of 1.25 times Net Revenues in all years.
The current evaluation does not examine the impact on cash flow or rates related to operating and capital costs for a new water supply connection to the South San Joaquin Irrigation District (SSJID) water system.
Figure 1a. Water Enterprise Fund Cash Flow
2020 Rate Study, FY21 – FY25 Cash Flow & Bills
2024 Review, FY24 – FY25 Cash Flow & Bills
1,720,000 1,670,000 1,730,000 1,790,000 1,850,000 1,910,000 1,980,000 2,040,000 790,000 780,000 780,000 780,000 790,000 780,000 780,000 780,000 870,000 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000
3.67x 2.70x 2.69x 2.66x 2.61x 2.62x 2.60x 2.58x
2% 2% 2% 2% 2% 2% 2% 2%
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27
Operating Debt Service Transfer to Capital Coverage
End Balance Target Balance SF Mo. Bill % Δ
ACTUAL PROJECTED FORECAST
1,720,000 1,750,000 1,730,000
1,900,000
2,120,000 2,200,000 2,270,000 790,000 780,000 780,000 2,350,000 780,000
780,000 780,000 780,000 780,000
870,000
1,220,000 1,310,000 1,150,000 1,000,000 770,000 710,000 640,000
3.67x
2% 2.57x 2.70x 2.39x 2.16x 2.06x 1.99x 1.90x 2% 2% 2% 2% 2% 2% 2% $0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27
Operating Debt Service Transfer to Capital Coverage
End Balance Target Balance SF Mo. Bill % Δ
ACTUAL REVIEW FORECAST
Technical Memorandum Evaluation of Garbage, Wastewater and Water Rates Adopted for February 1, 2024
PAVLETIC CONSULTING LLC
5 Use of contents on this sheet is subject to the limitations specified at the beginning of this document.
Revenue from water use sales is a significant variable in the development of projected cash flow. Annual revenue from water use sales is typically approximately 40 percent of revenue from water rates. Projections of water sales used in the 2020 Rate Study and in the current evaluation are compared in the figures below.
Projected water use for FY27 in the current evaluation is 900 million gallons. Projected water use for FY27 in the 2020 Water Study was 952 million gallons. Projected water use for FY27 in the current evaluation is approximately 50 million gallons lower (5.5 percent) than projected in the 2020 Water Study and incorporates a higher rate of water conservation over the next five years.
Figure 1b. Water Enterprise Water Use
2020 Rate Study, FY14 – FY20 Actual and FY21 – FY27 Projected Water Use, Million Gallons 2024 Review, FY14 – FY23 Actual and FY24 – FY27 Projected Water Use, Million Gallons 208 194 173 160 182 177 201
1,138
985
799 778
886 833
942
201 195 189 183 178 172 167
942 914 887 860 834 809 785
0 200
400
600
800
1,000
1,200
1,400
1,600
FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 Historical Nonresidential Historical Residential Projected Nonresidential Projected Residential Annual Historical Usage Annual Projected Usage 208 194 173 160 182 177 201 218 235 257
1,138
985
799 778
886 833
942 963 946 849
244 232 220 209
806 766 728 691
0 200
400
600
800
1,000
1,200
1,400
1,600
FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 Historical Nonresidential Historical Residential Projected Nonresidential Projected Residential Annual Historical Usage Annual Projected Usage Technical Memorandum Evaluation of Garbage, Wastewater and Water Rates Adopted for February 1, 2024
PAVLETIC CONSULTING LLC
6 Use of contents on this sheet is subject to the limitations specified at the beginning of this document.
The ending fund balance in FY25 (at the end of the review time frame) is projected to be approximately $670,000 less than projected in the 2020 Rate Study.
The decrease is due to the following changes in cash flow over the remaining FY24 – FY25 period:
• The beginning balance for FY24 was decreased by approximately $460,000 to reflect the cumulative impact of expenditures exceeding revenues over the previous years; • Revenues are projected to decrease by approximately $100,000 due to water conservation; • Operating expenditures are projected to increase by approximately $560,000 due to increased costs for operating expenses; and
• Transfers to capital reserves are decreased by $430,000.
Based on review of the updated data, it is recommended that the City implement the rate increases adopted for implementation on February 1, 2024.
Technical Memorandum Evaluation of Garbage, Wastewater and Water Rates Adopted for February 1, 2024
PAVLETIC CONSULTING LLC
7 Use of contents on this sheet is subject to the limitations specified at the beginning of this document.
SECTION 3. EVALUATION OF SEWER RATES AND CASH FLOW
The evaluation of rates in this TM involves only the update of projected expenditures, revenue from rates and number of accounts.
Cash flow (expenditures and target and ending fund balances), coverage ratios and the percent increase in average annual Single Family monthly bills are shown below for the 2020 Rate Study (top figure) and the current evaluation (bottom figure). Note that current projections of the debt service coverage ratio exceed the technical minimum of 1.25 times Net Revenues in all years until the debt service is retired in FY27.
Figure 2. Sewer Enterprise Fund Cash Flow
2020 Rate Study, FY21 – FY25 Cash Flow & Bills
2024 Review, FY24 – FY25 Cash Flow & Bills
1,000,000 1,090,000 1,110,000 1,160,000 1,190,000 1,230,000 1,270,000 1,310,000 200,000 200,000 190,000 200,000 190,000 200,000 190,000 250,000 0 360,000 360,000 360,000 360,000 360,000 360,000 240,000 460,000 140,000 290,000 320,000 350,000 390,000 420,000 470,000 2% 4% 4% 4% 4% 4% 4% 4%
$0
$1,000,000
$2,000,000
$3,000,000
FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27
Operating Debt Service Transfer to Capital R&R Transfer to Capital Reserve End Balance Target Balance SF Mo. Bill % Δ
ACTUAL REVIEW FORECAST
Technical Memorandum Evaluation of Garbage, Wastewater and Water Rates Adopted for February 1, 2024
PAVLETIC CONSULTING LLC
8 Use of contents on this sheet is subject to the limitations specified at the beginning of this document.
The ending fund balance in FY25 (at the end of the review time frame) is projected to be approximately $160,000 more than projected in the 2020 Rate Study. The increase is due to the following changes in cash flow over the remaining FY24 – FY25 period:
• The beginning balance for FY24 was increased by approximately $160,000 to reflect the cumulative impact of expenditures exceeding revenues over the previous years; • Revenues are projected to increase by approximately $160,000 due to a small increase in projected revenue from commercial and industrial accounts; and
• Operating expenditures are projected to increase by approximately $140,000 due to increased costs for state fees and utilities.
Based on review of the updated data, it is recommended that the City implement the rate increase adopted for implementation on February 1, 2024.
Technical Memorandum Evaluation of Garbage, Wastewater and Water Rates Adopted for February 1, 2024
PAVLETIC CONSULTING LLC
9 Use of contents on this sheet is subject to the limitations specified at the beginning of this document.
SECTION 4. EVALUATION OF GARBAGE RATES AND CASH FLOW
The evaluation of rates in this TM involves only the update of projected expenditures, revenue from rates and number of accounts. The rate structure remains unchanged.
Cash flow (expenditures and target and ending fund balances) and the percent increase in average annual Single Family monthly bills are shown below for the 2020 Rate Study (top figure) and the current evaluation (bottom figure).
Figure 3. Garbage Enterprise Fund Cash Flow
2020 Rate Study, FY21 – FY25 Cash Flow & Bills
2024 Review, FY24 – FY25 Cash Flow & Bills
1,940,000 1,890,000
2,120,000 2,200,000 2,280,000 2,360,000 2,440,000 2,530,000 160,000 280,000
280,000 280,000 280,000 280,000 280,000 280,000
5% 5% 5% 5% 4% 4%
1% 1%
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27
Operating Transfer to Capital End Balance Target Balance SF Mo. Bill % Δ
ACTUAL PROJECTED FORECAST
1,940,000
2,110,000
2,310,000 2,300,000
2,470,000
2,650,000 2,740,000 2,830,000
160,000
160,000
90,000 230,000
130,000
130,000 130,000 130,000
5% 5% 5% 5% 4% 4% 6% 6%
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27
Operating Transfer to Capital End Balance Target Balance SF Mo. Bill % Δ
ACTUAL REVIEW FORECAST
Technical Memorandum Evaluation of Garbage, Wastewater and Water Rates Adopted for February 1, 2024
PAVLETIC CONSULTING LLC
10 Use of contents on this sheet is subject to the limitations specified at the beginning of this document.
The ending fund balance in FY25 (at the end of the review time frame) is projected to be approximately $630,000 less than projected in the 2020 Rate Study. The decrease is due to the following changes in cash flow over the remaining FY24 – FY25 period:
• The beginning balance for FY24 was decreased by approximately $230,000 to reflect the cumulative impact of expenditures exceeding revenues over the previous years; • Revenues are projected to decrease by approximately $220,000 due to a lower number of residential cans than was used in the 2020 Rate Study;
• Operating expenditures are projected to increase by approximately $480,000 due to increased costs for fuel and disposal fees; and
• Transfers to capital reserves are decreased by $400,000.
Based on review of the updated data, it is recommended that the City implement the rate increase adopted for implementation on February 1, 2024.
Rate increases forecast for FY26 and FY27 – the two-years following the five-year rate increases adopted based on the 2020 Rates Study – are changed from 1% per year to 6% per year. The change in forecast increases is in response to projected ending balances that are significantly below projected target ending balances for FY24 – FY25.
Technical Memorandum Evaluation of Garbage, Wastewater and Water Rates Adopted for February 1, 2024
PAVLETIC CONSULTING LLC
11 Use of contents on this sheet is subject to the limitations specified at the beginning of this document.
SECTION 5. EVALUATION OF SINGLE FAMILY MONTHLY BILLS
Single Family monthly bills based on implemented and adopted rates from the 2020 Rate Study are shown in the figure below. Monthly bills for FY24 – FY25 are based on recommendations to implement the rate increases adopted for FY24 along with no change to the adopted rate increases for FY25.
Figure 4. Evaluation of Single Family Monthly Bills
Water - residential 1-inch meter, 16 hcf per month / Sewer - residential / Garbage - residential curbside 1 black + 1 green Established in Resolution 20-55
Prior Implemented Implemented Implemented Adopted
Monthly Bill FY20 FY21 FY22 FY23 FY24 FY25
Water $47.70 $48.62 $49.54 $50.56 $51.58 $52.60
Sewer $21.50 $22.40 $23.30 $24.20 $25.20 $26.20
Garbage $35.50 $37.20 $39.00 $41.00 $42.60 $44.30
Total $104.70 $108.22 $111.84 $115.76 $119.38 $123.10
Monthly $ ∆ FY20 FY21 FY22 FY23 FY24 FY25
Water $0.80 $0.92 $0.92 $1.02 $1.02 $1.02
Sewer $0.40 $0.90 $0.90 $0.90 $1.00 $1.00
Garbage $1.70 $1.70 $1.80 $2.00 $1.60 $1.70
Total $2.90 $3.52 $3.62 $3.92 $3.62 $3.72
Monthly % ∆ FY20 FY21 FY22 FY23 FY24 FY25
Water 2% 2% 2% 2% 2% 2%
Sewer 2% 4% 4% 4% 4% 4%
Garbage 5% 5% 5% 5% 4% 4%
Total 2.8% 3.5% 3.5% 3.5% 3.0% 3.0%
$48 $49 $50 $51 $52 $53
$22 $22 $23 $24 $25 $26
$36 $37 $39 $41 $43 $44
$105 $108 $112 $116 $119 $123
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
FY20 FY21 FY22 FY23 FY24 FY25
Garbage
Sewer
Water
Based on
Adopted
Technical Memorandum Evaluation of Garbage, Wastewater and Water Rates Adopted for February 1, 2024
PAVLETIC CONSULTING LLC
12 Use of contents on this sheet is subject to the limitations specified at the beginning of this document.