Pavletic consulting llc
2014 Mann Pkwy, Celina, TX 75009
D R A F T
Water, Sewer and Garbage Funds Rates Study
Prepared for
City of Ripon, California
November 3, 2025
Exhibit A
This Page Intentionally Blank.
Exhibit A
Pavletic consulting llc i
DRAFT for review purposes only. Use of contents on this sheet is subject to the limitations specified at the end of this document.
Table of Contents
List of Figures
Figure ES-1. Impact of Water, Sewer and Garbage Rates on Residential Monthly Bills .............................. 5 Figure 1-1. Overview of Rate Setting Analytical Steps.................................................................................1-1 Figure 2-1. Projected Number of Metered Accounts and Water Usage .....................................................2-1 Figure 2-2. Historic and Projected Water Usage..........................................................................................2-2 Figure 2-3. Water Operating Fund Cash Flow, Debt Service Coverage & Monthly Bill Increases.............2-4 Figure 3-1. Sewer Operating Fund Cash Flow, Debt Service Coverage & Monthly Bill Increases.............3-3 Figure 4-1. Garbage Operating Fund Cash Flow, Debt Service Coverage & Monthly Bill Increases.........4-2 Figure 5-1. Impact of Water, Sewer and Garbage Rates on Residential Monthly Bills .............................5-1 Figure 5-2. Survey of Single Family Customer Bills .....................................................................................5-2 List of Tables
Table ES-1. Water and Sewer Funds Revenue Bond Summary as of June 30, 2024.................................. 2 Table ES-2. Recommended Water Rates ........................................................................................................ 2 Table ES-3. Recommended Sewer Rates........................................................................................................ 3 Table ES-4. Recommended Garbage Unit Costs............................................................................................. 3 Table ES-5. Recommended Garbage Rates.................................................................................................... 4 Table 1-1. Implementation of 2020 Rates Study Recommended Rates ...................................................1-3 Table 2-1. Number of Water Meters by Customer Class and Size..............................................................2-2 Table 2-2. Water Operating Fund Cash Flow................................................................................................2-3 Table 2-3. Recommended Water Rates .......................................................................................................2-5 Table 3-1. Sewer Operating Fund Cash Flow ...............................................................................................3-2 Table 3-3. Recommended Sewer Rates .......................................................................................................3-4 Table 4-1. Garbage Operating Fund Cash Flow ...........................................................................................4-1 Table 4-2. Recommended Garbage Unit Costs............................................................................................4-2 Table 4-3. Recommended Garbage Rates ...................................................................................................4-3 Exhibit A
Table of Contents
City of Ripon
Water, Sewer and Garbage Funds Rates Study
ii Pavletic consulting llc
DRAFT for review purposes only. Use of contents on this sheet is subject to the limitations specified at the end of this document.
List of Abbreviations
AF acre feet (equal to 325,851 gallons)
CCI Construction Cost Index
CIP Capital Improvement Program
City City of Ripon
DSC Debt Service Coverage
FY Fiscal year (July 1 to June 30)
ENR Engineering News Record
FY26 July 1, 2025 to June 30, 2026
gpd gallons per day
hcf Hundred Cubic Feet (equal to ~ 748.1 gallons)
mgd million gallons per day
O&M Operation and maintenance
RMC Ripon Municipal Code
R&R Repair and Replacement
SFR Single Family Residential
Exhibit A
Use of contents on this sheet is subject to the limitations specified at the end of this document. ES-1 Executive Summary
The City of Ripon has three enterprise funds: Water, Sewer and Garbage. 1,2 Enterprise funds are
operated by the City in a “business-type” manner and the City charges customers for services provided through these enterprises. All residents within the City limits are required to sign up for all three services.
The City, in conjunction with Pavletic Consulting LLC, has analyzed the adequacy of revenues to meet projected expenditures of the enterprise funds to determine whether revenues will be adequate to cover operating and maintenance costs as well as needed capital expenditures while supporting debt service obligations and meeting target reserve levels. Revenues from rates, which generate approximately 99% of water and garbage enterprise fund revenues and 91% of sewer fund revenues, were developed for the five-year period Fiscal Year 2025 – 2026 (FY26) through FY30.
The last rate study that recommended utility rate increases was completed in 2020. Based on that study, the City Council adopted rates for the five-year period FY21 through FY25. City council requested staff bring back the adopted rate increases each year for evaluation prior to implementation. After evaluation, rates adopted from the 2020 Rate Study were implemented each fiscal year from FY21 through FY25.
Significant Assumptions
There are several assumptions in this study related to future interest rates, cost inflation, the annual number of new connections, water sales and other items. The unifying theme underlying all assumptions is that rates based on the assumptions should have a very high probability of recovering annual revenue requirements.
A summary of the most significant assumptions made in this study are listed below.
Assumption 1. Projected growth in accounts for all enterprises is 40 single family accounts per year, which reflects with recent growth rates of less than 1% per year. The City has a 2.5% growth cap.
Assumption 2. Projected residential average annual water use for FY26 is approximately 22 hcf per month. Projected nonresidential average annual water use for FY26 is approximately 60 hcf per month.
Assumption 3. Projected reduction in water use for residential and nonresidential accounts is 0.5 percent per year for FY26-FY30.
Assumption 4. The target cash balance reserve level for the water and sewer funds is 35 percent of annual operating expenditures. The target cash balance reserve level for the garbage fund is 20 percent of annual operating expenditures.
Assumption 5. Operating expenditures, including Overhead Reimbursements, and capital transfers were projected using data from City staff.
1 The City’s financial statements use the term “Refuse Fund.” The City’s budgets use the term “Garbage Fund.” The terms are interchangeable and refer to Fund 120. The term “Garbage” is used in this report. 2 The City’s financial statements use the term “Sewer Fund.” The City’s budgets use the term “Ripon Municipal Sewer District No. 1.” The terms are interchangeable and refer to Fund 130. The term “Sewer” is used in this report.
Exhibit A
Executive Summary
City of Ripon
Water, Sewer and Garbage Funds Rates Study
ES-2 Use of contents on this sheet is subject to the limitations specified at the end of this document.
Long-Term Debt
As of June 30, 2024, the City has three Revenue Bonds with principal outstanding – two for the Water Fund with $4,745,000 outstanding and one for the Sewer Fund with $375,000 outstanding – for a total of $5,120,000. At the end of the five-year rate study period (FY30), the outstanding principal balance for the two Water bonds will be
$3,545,000. The Sewer bond
will reach maturity in October
2025.
Bonds are secured by a
pledge of net revenues from
each fund. Principal payments
are due annually on October
1. Interest payments are
payable semi-annually on April
1 and October 1. Rates
developed in this study are
set to generate Net Revenues
greater than or equal to 1.2 times the annual debt service. Interest rates, maturity dates, amounts issued and amounts outstanding as of June 30, 2024, are summarized in Table ES-1.
Recommended Water Rates
Recommended rates for FY26 – FY30 are listed in the table below. Rates that include the Annual Payment Discount or the reduction for Qualified Income are not shown.
Table ES-2. Recommended Water Rates
Current Recommended
Customer Class and Meter Size FY25 FY26 FY27 FY28 FY29 FY30 Rate Change Effective Date > 1-Feb-2025 1-Feb-2026 1-Feb-2027 1-Feb-2028 1-Feb-2029 1-Feb-2030 Annual percent increase > 2.0% 4.0% 4.0% 4.0% 4.0% 4.0% Residential, Commercial, Industrial
Meter Rates ($/month)
¾-inch $35.00 $36.40 $37.90 $39.40 $41.00 $42.60
1-inch $35.00 $36.40 $37.90 $39.40 $41.00 $42.60
1½-inch $58.90 $61.30 $63.80 $66.40 $69.10 $71.90
2-inch $86.70 $90.20 $93.80 $97.60 $101.50 $105.60
2½-inch $123.00 $128.00 $133.00 $138.00 $144.00 $150.00 3-inch $162.00 $168.00 $175.00 $182.00 $189.00 $197.00
4-inch $248.00 $258.00 $268.00 $279.00 $290.00 $302.00
6-inch $481.00 $500.00 $520.00 $541.00 $563.00 $586.00
8-inch $768.00 $799.00 $831.00 $864.00 $899.00 $935.00
10-inch $1,097.00 $1,141.00 $1,187.00 $1,234.00 $1,283.00 $1,334.00 Usage Rates ($/hcf) $1.10 $1.14 $1.19 $1.24 $1.29 $1.34 Non-potable
Meter Rates ($/month) $5.62 $5.84 $6.07 $6.31 $6.56 $6.82 Usage Rates ($/hcf) $0.95 $0.99 $1.03 $1.07 $1.11 $1.15 Note: Rates that include the Annual Payment Discount or the reduction for Qualified Income are not shown.
Table ES-1. Water and Sewer Funds Revenue Bond Summary as of June 30, 2024 Amounts Outstanding As of
Bond and Fund Interest Rates Maturity Dates Issued June 30, 2024 Water Fund
2006C Revenue Bonds
Term Bonds 4.50% October 1, 2027 $2,120,000 $1,775,000
Term Bonds 4.50% October 1, 2032 $2,250,000 $1,950,000
$4,370,000 $3,725,000
2012 Refunding Revenue Bonds
Serial Bonds 2.00% - 3.375% October 1, 2027 $3,350,000 $1,020,000 Sewer Fund
2011 Refunding Revenue Bonds
Term Bonds 4.20% October 1, 2025 $2,195,000 $375,000
Water and Sewer Funds $9,915,000 $5,120,000
Exhibit A
City of Ripon
Water, Sewer and Garbage Funds Rates Study Executive Summary Use of contents on this sheet is subject to the limitations specified at the end of this document. ES-3 Recommended Sewer Rates
Recommended rates for FY26 – FY30 are listed in the table below. Rates that include the Annual Payment Discount or the reduction for Qualified Income are not shown.
Table ES-3. Recommended Sewer Rates
Recommended Garbage Rates
Recommended unit costs and rates for FY26 – FY30 are listed in the tables below. Residential rates that include the Annual Payment Discount or the reduction for Qualified Income are not shown.
Table ES-4. Recommended Garbage Unit Costs
Current Recommended
Customer Class and Service Type FY25 FY26 FY27 FY28 FY29 FY30 Rate Change Effective Date > 1-Feb-2025 1-Feb-2026 1-Feb-2027 1-Feb-2028 1-Feb-2029 1-Feb-2030 Annual percent increase > 4% 3.0% 3.0% 3.0% 3.0% 3.0%
Residential
Full Rate, $/month
Single family dwellings $26.20 $27.00 $27.80 $28.60 $29.50 $30.40 Dwelling unit in a duplex $26.20 $27.00 $27.80 $28.60 $29.50 $30.40 Dwelling unit in an apartment $26.20 $27.00 $27.80 $28.60 $29.50 $30.40 Separate detached apartment $2.10 $2.20 $2.30 $2.40 $2.50 $2.60 Retirement home occupants $5.70 $5.90 $6.10 $6.30 $6.50 $6.70 $23.58 $24.30 $25.02 $25.74 $26.55 $27.36
$20.96 $21.60 $22.24 $22.88 $23.60 $24.32
Single family dwellings $298.68 $307.80 $316.92 $326.04 $336.30 $346.56 $268.81 $277.02 $285.23 $293.44 $302.67 $311.90
$238.94 $246.24 $253.54 $260.83 $269.04 $277.25
Commercial
Minimum Base Rate, $/month $25.00 $25.80 $26.60 $27.40 $28.20 $29.00 Flow Charge - Full Rate, $/hcf $1.50 $1.55 $1.60 $1.65 $1.70 $1.75 Minimum Base Rate, Annual, $/month $285.00 $294.10 $303.20 $312.40 $321.50 $330.60 Flow Charge, $/hcf - 95% Rate $1.60 $1.47 $1.50 $1.50 $1.50 $1.50 Minimum Base Rate w/Lndscp Credit $25.00 $25.80 $26.60 $27.40 $28.20 $29.00 Flow Charge - Lndscp Credit, hcf $1.44 $1.48 $1.52 $1.57 $1.62 $1.67 Industrial
Flow Charge, $/1000 gallons $2.00 $2.10 $2.20 $2.30 $2.40 $2.50 Biochemical Oxygen Demand, $/1000 pounds $204.50 $210.60 $216.90 $223.40 $230.10 $237.00 Suspended Solids, $/1000 pounds $226.20 $233.00 $240.00 $247.20 $254.60 $262.20 Note: Rates that include the Annual Payment Discount or the reduction for Qualified Income are not shown. 10% Lower Income Discount
20% Lower Income Discount
10% Lower Income Discount, $/month
20% Lower Income Discount, $/month
5% Lower Income Discount, $/month
Current Projected
Customer Class and Service Type FY25 FY26 FY27 FY28 FY29 FY30 Rate Change Effective Date > 1-Feb-2025 1-Feb-2026 1-Feb-2027 1-Feb-2028 1-Feb-2029 1-Feb-2030 Annual percent increase > 4.0% 10.0% 10.0% 4.0% 4.0% 4.0% Unit Costs and Categories
Black can $40.85 $44.95 $49.45 $51.45 $53.50 $55.65
Additional black can $17.35 $19.10 $21.00 $21.85 $22.70 $23.60 Green can $3.45 $3.80 $4.20 $4.35 $4.50 $4.70
Tubbie, per dump $46.35 $51.00 $56.10 $58.35 $60.70 $63.15 Backyard service per can $8.90 $9.80 $10.80 $11.25 $11.70 $12.15 Exhibit A
Executive Summary
City of Ripon
Water, Sewer and Garbage Funds Rates Study
ES-4 Use of contents on this sheet is subject to the limitations specified at the end of this document.
Table ES-5. Recommended Garbage Rates
Current Projected
Customer Class and Service Type FY25 FY26 FY27 FY28 FY29 FY30 Residential
Full Rate Rate Code
Res Curbside 1 Blk 501 $40.90 $44.95 $49.45 $51.45 $53.50 $55.65 Res Curbside 2 Blk 502 $58.20 $64.05 $70.45 $73.30 $76.20 $79.25 Res Curbside 3 Blk 503 $75.70 $83.15 $91.45 $95.15 $98.90 $102.85 Res Curbside 4 Blk 504 $93.00 $102.25 $112.45 $117.00 $121.60 $126.45 Res Curbside 1 Blk + 1 Grn 510 $44.30 $48.75 $53.65 $55.80 $58.00 $60.35 Res Curbside 1 Blk + 2 Grn 511 $47.70 $52.55 $57.85 $60.15 $62.50 $65.05 Res Curbside 2 Blk + 1 Grn 512 $61.60 $67.85 $74.65 $77.65 $80.70 $83.95 Res Curbside 2 Blk + 2 Grn 513 $65.00 $71.65 $78.85 $82.00 $85.20 $88.65 Res Curbside 3 Blk + 1 Grn 514 $79.10 $86.95 $95.65 $99.50 $103.40 $107.55 Res Curbside 4 Blk + 1 Grn 515 $96.40 $106.05 $116.65 $121.35 $126.10 $131.15 Res Curbside 1 Blk + 3 Grn 516 $51.10 $56.35 $62.05 $64.50 $67.00 $69.75 Res Curbside 1 Blk + 4 Grn 517 $71.85 $79.25 $87.25 $90.70 $94.20 $98.05 Res Curbside 2 Blk + 3 Grn 518 $68.40 $75.45 $83.05 $86.35 $89.70 $93.35 Res Curbside 3 Blk + 2 Grn 519 $82.45 $90.75 $99.85 $103.85 $107.90 $112.25 Res Curbside #2 Blk Only 520 $17.40 $19.10 $21.00 $21.85 $22.70 $23.60 Res Curbside #2 Blk + Grn 521 $20.80 $22.90 $25.20 $26.20 $27.20 $28.30 Res Curbside 1 Grn Only 522 $3.40 $3.80 $4.20 $4.35 $4.50 $4.70 Res Backyard 1 Blk 523 $49.70 $54.75 $60.25 $62.70 $65.20 $67.80 Res Backyard 1 Blk + 1 Grn 524 $61.90 $68.35 $75.25 $78.30 $81.40 $84.65 Res Curbside 2 Grn Only 525 $6.80 $7.60 $8.40 $8.70 $9.00 $9.40 Multiple Dwelling
Duplex Curbside 560 $81.40 $89.90 $98.90 $102.90 $107.00 $111.30 Duplex Curbside + 1 Grn 561 $84.80 $93.70 $103.10 $107.25 $111.50 $116.00 Duplex Curbside + 2 Grn 562 $88.20 $97.50 $107.30 $111.60 $116.00 $120.70 4-Plex Curbside + Grn Can 564 $167.50 $183.60 $202.00 $210.15 $218.50 $227.30 Duplex Curbside 2 Blk + 1 Grn (561+520) 568 $102.20 $112.80 $124.10 $129.10 $134.20 $139.60 Triplex Curbside 565 $122.60 $134.85 $148.35 $154.35 $160.50 $166.95 Triplex Curbside + 1 Grn 566 $126.00 $138.65 $152.55 $158.70 $165.00 $171.65 4-Plex Curbside 567 $164.10 $180.50 $198.60 $206.50 $214.80 $223.40 Commercial
Comm Curbside 1 Tubbie + 3 Blk 563 $307.95 $338.85 $372.75 $387.75 $403.30 $419.55 Comm Curbside 1 Blk 570 $40.90 $44.95 $49.45 $51.45 $53.50 $55.65 Comm Curbside 2 Blk 571 $81.70 $89.90 $98.90 $102.90 $107.00 $111.30 Comm Curbside 2 Blk + 1 Grn (571+522) 569 $85.15 $93.70 $103.10 $107.25 $111.50 $116.00 Comm Curbside 3 Blk 572 $122.55 $134.85 $148.35 $154.35 $160.50 $166.95 Comm Curbside 1 Blk + 1 Grn 573 $44.30 $48.75 $53.65 $55.80 $58.00 $60.35 Comm Curbside 9 Blk + 1 Grn 574 $371.10 $408.35 $449.25 $467.40 $486.00 $505.55 Comm Backyard 1 Blk 575 $49.70 $54.75 $60.25 $62.70 $65.20 $67.80 Comm Backyard 1 Blk + 1 Grn 577 $62.10 $68.35 $75.25 $78.30 $81.40 $84.65 Comm Curbside 1 Tubbie 578 $185.40 $204.00 $224.40 $233.40 $242.80 $252.60 Comm Curbside 2 Tubbies 579 $370.80 $408.00 $448.80 $466.80 $485.60 $505.20 Comm Curbside ANN 1 Blk 580 $466.26 $512.43 $563.73 $586.53 $609.90 $634.41 Comm Curbside ANN 1 Blk + 1 Grn 583 $505.02 $555.75 $611.61 $636.12 $661.20 $687.99 Comm Curbside 4 Blk 1 Grn 581 $166.85 $183.60 $202.00 $210.15 $218.50 $227.30 Comm Curbside ANN 3 Blk 582 $1,397.07 $1,537.29 $1,691.19 $1,759.59 $1,829.70 $1,903.23 Comm Curbside ANN Tubbie 587 $2,113.56 $2,325.60 $2,558.16 $2,660.76 $2,767.92 $2,879.64 Comm Curbside 2 Grn 588 $6.80 $7.60 $8.40 $8.70 $9.00 $9.40 Comm Curbside 4 Grn (588x2) 591 $13.60 $15.20 $16.80 $17.40 $18.00 $18.80 Comm Curbside 6 Grn 592 $20.40 $22.80 $25.20 $26.10 $27.00 $28.20 Comm Curbside 2 Blk + 5 Grn 593 $98.95 $108.90 $119.90 $124.65 $129.50 $134.80 Comm Curbside 2 Blk + 12 Grn 594 $123.10 $135.50 $149.30 $155.10 $161.00 $167.70 Comm Curbside 1 Blk + 2 Grn 589 $47.70 $52.55 $57.85 $60.15 $62.50 $65.05 Bulk
5-Plex 590 $204.25 $224.75 $247.25 $257.25 $267.50 $278.25 Tiffany Estates 43 Blk cans 595 $1,758.70 $1,932.85 $2,126.35 $2,212.35 $2,300.50 $2,392.95 Zion Curbside 9 Grn 598 $30.60 $34.20 $37.80 $39.15 $40.50 $42.30 Exhibit A
City of Ripon
Water, Sewer and Garbage Funds Rates Study Executive Summary Use of contents on this sheet is subject to the limitations specified at the end of this document. ES-5 Combined Impact of Water, Sewer and Garbage Rates
The combined impact of the recommended rate increases upon a typical residential customer is summarized in the table and figure below. The impact on the monthly bill is for a residential customer with a 1-inch water meter and 16 hcf per month water use, a sewer connection, and residential curbside 1 black can + 1 green can service.
Figure ES-1. Impact of Water, Sewer and Garbage Rates on Residential Monthly Bills Prior Recommended
Monthly Bill FY25 FY26 FY27 FY28 FY29 FY30
Water $52.60 $54.64 $56.94 $59.24 $61.64 $64.04
Sewer $26.20 $27.00 $27.80 $28.60 $29.50 $30.40
Garbage $44.30 $53.15 $55.25 $57.45 $59.75 $62.15
Total $123.10 $134.79 $139.99 $145.29 $150.89 $156.59
Monthly $ ∆ FY25 FY26 FY27 FY28 FY29 FY30
Water $1.02 $2.04 $2.30 $2.30 $2.40 $2.40
Sewer $1.00 $0.80 $0.80 $0.80 $0.90 $0.90
Garbage $1.70 $8.85 $2.10 $2.20 $2.30 $2.40
Total $3.72 $11.69 $5.20 $5.30 $5.60 $5.70
Monthly % ∆ FY25 FY26 FY27 FY28 FY29 FY30
Water 2% 4% 4% 4% 4% 4%
Sewer 4% 3% 3% 3% 3% 3%
Garbage 4% 20% 4% 4% 4% 4%
Total 3.1% 9.5% 4.0% 4.0% 4.0% 4.0%
$53 $55 $57 $59 $62 $64
$26 $27 $28 $29 $30 $30
$44
$53 $55 $57 $60 $62
$123
$135 $140 $145 $151 $157
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
FY25 FY26 FY27 FY28 FY29 FY30
Garbage Sewer Water
Exhibit A
This Page Intentionally Blank.
Exhibit A
Use of contents on this sheet is subject to the limitations specified at the end of this document. 1-1 Section 1
Introduction
The City’s water, sewer and garbage enterprise fund rates are intended to recover revenues sufficient to adequately fund utility operations, maintenance, and capital replacement expenditures, and meet debt service obligations, while keeping rates as competitive as possible and maintaining a prudent level of reserves.
1.1 Organization of the Report
This report is divided into six sections. This introduction provides an overview of the study objectives.
Section 2 discusses the evaluation of water rates and funding requirements.
Section 3 discusses the evaluation of sewer rates and funding requirements.
Section 4 discusses the evaluation of garbage rates and funding requirements.
Section 5 describes the impact of proposed rates on customers.
Section 6 describes the limitations of the study document.
1.2 Overview of Utility Rate Setting Process
Rate studies classically have three categories of technical analysis – the development of revenue required from rates, the allocation of costs among functional cost categories (cost-of-service analysis) and the design of a rate structure. An overview of the rate-setting analytical steps is shown in Figure 1-1.
The revenue required from rates is net of non-rate revenues (for example interest earned on fund balances, loan disbursements and revenue from new connections to the water system) and other revenues not required from rates (such
as revenue from meter turn on/off
services).
The allocation of costs are structured so
that the revenue required from charges is
distributed proportionally for every level
of service in a manner that allows the
development of unit costs.
The rate structure uses the unit costs as
a basis for aggregating costs into rates
that are applicable to the various
customer classes.
Figure 1-1. Overview of Rate Setting Analytical Steps
The methodology used to develop rates in this study includes only the revenue requirement analysis. A cost-of-service analysis was not conducted and the rate structures remain the same as the current structures.
Revenue Requirement Analysis
Compares revenues of the utility to its operating
and capital costs to determine the adequacy of
the existing rates to recover costs
Cost-of-service Analysis
Allocates the revenue requirements to the various
customer classes in a fair and equitable manner
Rate Design Analysis
Considers both the level of rates and the structure
of the rate design to collect the distributed
revenue requirements from each customer class
Exhibit A
Section 1 Introduction
1-2 Use of contents on this sheet is subject to the limitations specified at the end of this document.
1.3 City Location and Population
The City of Ripon is the most southeasterly town in San Joaquin County, approximately 20 miles south of Stockton on Route 99. The city has a total area of 5.5 square miles.
1.4 Overview of City Enterprise Funds
As noted in the City’s annual audit reports, the City has three enterprise funds: Water, Sewer, and Garbage.1 The City charges customers for the services it provides, these services are reported in proprietary (enterprise) funds. Enterprise funds are reported in the same way all activities are reported in the Statement of Net Position and Statement of Activities. For example, principal payments on long-term debt are recorded as a reduction to the liability.
The City’s enterprise fund financial statements are essentially the same as the business-type activities reported in the government-wide financial statements. The City utilizes the modified cash basis of accounting and accordingly, capital assets are not capitalized or depreciated.
The three enterprise funds account for the provision of water, sewer and garbage collection and disposal services to residents of the City. All activities necessary to provide such services are accounted for in these funds, including administration, maintenance, operations, capital improvements, financing and related debt service, and billing and collection.
1.5 Source Data for the Study
Information and data for the development of rates and preparation of this report comes from documents provided by the City. The list of documents, and the key information and data from each used in this study, are summarized below.
City of Ripon Audit Reports. Data from the Financial Statements for Fiscal Year ending June 30, 2024, were evaluated. Data from these reports used as part of this rate study include debt service obligations for each enterprise fund.
City of Ripon Adopted Budgets. Data from annual budget for Fiscal Year 2025-26 (FY26) was evaluated.
The FY26 Annual Budget included actual financial data for FY25. Data used as part of this rate study include actual and projected expenditures and revenues for each enterprise fund.
Utility Billing System data. Monthly metered water use was provided by the City. For each enterprise, the City provided the number of units of use. Units of use included accounts by customer class (for example, residential, multiple family, commercial) and rate type (for example, flat charge for commercial wastewater flow and number of black and/or green cans for garbage service). The City also provided monthly bills for industrial wastewater accounts.
1.6 Rate-Making Objectives
There are numerous rate-making objectives that must be considered when developing rates and rate structures.
Revenue sufficiency. Generate sufficient revenue to fund operating costs, capital costs and bonded debt, and maintain adequate reserves.
Revenue stability. Recover revenue from fixed and variable charges that will cover fixed and variable costs (barring water shortages when rationing may be required). 1 See Footnotes 1 and 2 from the Executive Summary regarding names of the enterprise funds.
Exhibit A
Introduction Section 1
Use of contents on this sheet is subject to the limitations specified at the end of this document 1-3 Affordability. Be as affordable as possible while maintaining the utilities sound financial position and credit rating.
Customer acceptance. Be as simple as possible to facilitate customer understanding and acceptance.
Fairness. Provide for each customer class to pay its proportionate share of the required revenue in compliance with legal rate-making requirements.
1.7 Implementation of 2020 Rates Study Recommended Rates An Enterprise Funds Rates and Cash Flow Study was completed in September 2020 (2020 Rates Study).
Based on findings and recommendations in the 2020 Rates Study, the City Council approved Resolution No. 20-55 which adopted maximum garbage, sewer and water rates to be effective February 1st of 2021, 2022, 2023, 2024 and 2025 (five years).
The City Council had directed staff to re-analyze the financial position of each Enterprise Fund each year to decide if any rate needed to be increased based upon the approved increases.
In the Water Fund, the adopted rates were implemented for each of the five years. The impact on Single Family bills was in increase of approximately 2% per year.
In the Sewer Fund, the adopted rates were implemented for each of the five years. The impact on Single Family bills was in increase of approximately 4% per year.
In the Garbage Fund, the adopted rates were implemented for each of the five years. The impact on Single Family bills was in increase of approximately 5% per year for the first three fiscal years followed by increases of approximately 4% per year for the last two fiscal years.
The combined impact of the recommended rate increases upon a typical residential customer is summarized in the table and figure below.
Table 1-1. Implementation of 2020 Rates Study Recommended Rates Note: Monthly bills are for a Single Family residence with a 1-inch water meter, 16 hcf per month water usage, residential sewer service, and curbside pickup of 1 black + 1 green garbage cans Prior Implemented Implemented Implemented Implemented Implemented 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
$200
FY20 FY21 FY22 FY23 FY24 FY25
Garbage Sewer Water
Exhibit A
This Page Intentionally Blank.
Exhibit A
Use of contents on this sheet is subject to the limitations specified at the end of this document. 2-1 Section 2
Water Enterprise Fund
The City’s meter rates and commodity rates are intended to recover revenues sufficient to adequately fund utility operations, maintenance, and capital replacement expenditures, and meet debt service obligations, while keeping rates as competitive as possible and maintaining a prudent level of reserves.
2.1 Water Sources and System Operations
In 2025, all of Ripon’s water originated from five groundwater Wells, two are located on the south side of Highway 99 and four on the north side. These Wells tap underground reserves or aquifers from approximately 125-500 feet below the ground surface. The aquifers are replenished by rainfall, the Stanislaus River and agricultural irrigation water. The total pumping capacity for all Wells connected to the City’s water distribution system is 9,000 gpm (gallons per minute). The City has two elevated storage tanks, a 1.5 MG (million gallons) located near the Jack Tone Interchange and a 2.5 MG tank on River Road at the Mistlin Sports Complex. These elevated tanks have the capacity to provide an additional 10,000 gpm for peak demand or firefighting needs. Ripon’s piping system is designed so that, depending upon the demand, water at a customers’ faucet can be supplied from a single Well or any combination of Wells in operation at any given time. In 2015 the City installed water meters on all customer accounts.
2.2 Water Connections, Meters and Usage
The water utility provides service to its residents, institutions, industries, and businesses through approximately 5,100 service connections. The approximate number of water meters and projected water usage for FY26, by customer class, are shown in the figures below.
Figure 2-1. Projected Number of Metered Accounts and Water Usage Number of Meters Projected FY26, 5,099 Projected FY26 Water Usage, 1,574,000 hundred cubic feet Residential
4,683
92%
Nonresidential
416
8%
Residential
1,357,871
86%
Nonresidential
216,474
14%
Residential
4,683
92%
Nonresidential
416
8%
Residential
1,357,871
86%
Nonresidential
216,474
14%
Exhibit A
Section 2 Water Enterprise Fund
2-2 Use of contents on this sheet is subject to the limitations specified at the end of this document.
The number of water connections and meters by customer class and size projected for FY26 is shown below in Table 2-1. Residential meters make up approximately 92% of all customers. Approximately 95% of all meters are 1-inch or less in size. Another 4% are 1½-inch or 2-inch meters. There are 25 meters that are 2½-inch or larger. The number of residential meters is projected to increase by approximately 40 per year (less than 1% per year).
Table 2-1. Number of Water Meters by Customer Class and Size
2.3 Historic and Projected Water Usage
Historic and projected water usage is shown in the table below. For the purpose of projecting metered water usage for FY26 and onward, average usage for FY25 is used as a starting point. Water usage projections for FY26 – FY30 are based upon the net impact of two variables: 1) increase in usage due to the growth in the number of metered accounts by 40 per year; and 2) decrease in usage due to conservation.
The decrease in usage is based on a percent reduction in average water use per account from the previous years’ value. Metered residential and nonresidential average water usage is projected to decrease by 0.5 percent per year for FY26 – FY30.
Figure 2-2. Historic and Projected Water Usage
Customer Class ¾-inch 1-inch 1½-inch 2-inch 2½-inch 3-inch 4-inch 6-inch Total % of Total Residential Metered 602 4,024 57 4,683 92%
Commercial Metered 76 157 45 113 1 13 9 2 416 8%
Total 678 4,181 102 113 1 13 9 2 5,099
% of Total 13% 82% 2% 2% 0.02% 0.25% 0.18% 0.04%
208 194 173 160 182 177 201 218 197 178 145 162
1,138
985
799 778
886 833
942 963 984 927 952 1,016
161 160 160 159 158 157 156
1,011 1,006 1,001 996 991 986 981
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 FY28 FY29 FY30 FY31 FY32 Historical Nonresidential Historical Residential Projected Nonresidential Projected Residential Annual Historical Usage Annual Projected Usage Exhibit A
Water Enterprise Fund Section 2
Use of contents on this sheet is subject to the limitations specified at the end of this document. 2-3
2.4 Water Operating Cash Flow
The evaluation of water rates involved the update of projected expenditures, revenue from rates, number of accounts and water usage. Operating cash flow (revenues, expenditures, and beginning, ending and target fund balances), and debt service coverage ratios are shown in the table below. Note that current projections of the debt service coverage ratio exceed the technical minimum of 1.20 times Net Revenues in all years. The target reserve level of unrestricted cash is 35 percent of annual operating expenditures.
Water operating fund expenditures, revenues and balances are shown below in Table 2-2.
Table 2-2. Water Operating Fund Cash Flow
Actual Budget and Projected
Water Operating Fund 110710 FY25 FY26 FY27 FY28 FY29 FY30 Beginning Cash 926,500 1,174,800 1,176,200 1,225,500 1,123,200 1,165,000 Revenues
Water Charges 4,050,800 4,111,900 4,284,200 4,471,700 4,662,900 4,858,600 Other Revenues 37,400 37,400 37,400 37,400 37,400 37,400 Total Revenues 4,088,200 4,149,300 4,321,600 4,509,100 4,700,300 4,896,000 Expenditures
Operating 2,294,900 2,472,600 2,596,700 2,936,800 3,056,500 3,182,900 Debt Service 778,700 775,300 775,600 774,600 502,000 503,100 Capital Reserve 766,300 900,000 900,000 900,000 1,100,000 1,100,000 Total Expenditures 3,839,900 4,147,900 4,272,300 4,611,400 4,658,500 4,786,000 Revenues less Total Expenditures 248,300 1,400 49,300 (102,300) 41,800 110,000 Ending Cash 1,174,800 1,176,200 1,225,500 1,123,200 1,165,000 1,275,000 Target Cash @ 0.35x Oper & Trans 803,200 865,400 908,800 1,027,900 1,069,800 1,114,000 Debt Service Coverage Test
Net Revenues 1,793,300 1,676,700 1,724,900 1,572,300 1,643,800 1,713,100 Add: Developer Capacity Charges 440,181 598,646 610,619 622,831 635,288 647,994 Net Income 2,233,481 2,275,346 2,335,519 2,195,131 2,279,088 2,361,094 Debt Service 778,700 775,300 775,600 774,600 502,000 503,100 Coverage Ratio 2.87 2.93 3.01 2.83 4.54 4.69
$ Over/(Under) 1.20 Ratio 1,299,041 1,344,986 1,404,799 1,265,611 1,676,688 1,757,374 Exhibit A
Section 2 Water Enterprise Fund
2-4 Use of contents on this sheet is subject to the limitations specified at the end of this document.
Operating cash flow (expenditures, and target and ending fund balances), debt service coverage ratios and the annual increase in Single Family monthly bills are shown in the figure below.
Figure 2-3. Water Operating Fund Cash Flow, Debt Service Coverage & Monthly Bill Increases 2,290,000
2,470,000 2,600,000
2,940,000 3,060,000 3,180,000
770,000
900,000 900,000
900,000
1,100,000 1,100,000
780,000
780,000 780,000
770,000
500,000 500,000
2.87x 2.93x 3.01x 2.83x 4.54x 4.69x
2%
4% 4% 4% 4% 4%
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
FY25 FY26 FY27 FY28 FY29 FY30
Water Operating Fund Cash Flow, Debt Service Coverage & Monthly Bills Operating Capital Reserve Debt Service Coverage
Revenue End Balance Target Balance SF Mo. Bill % Δ
Exhibit A
Water Enterprise Fund Section 2
Use of contents on this sheet is subject to the limitations specified at the end of this document. 2-5
2.5 Recommended Water Rates
Current and recommended water rates are summarized in the table below. Rates that include the Annual Payment Discount or the reduction for Qualified Income are not shown.
The existing rate structure has 13 unique rates (not including the Annual Payment Discount or the reduction for Qualified Income rates) and currently recovers approximately 57% of revenues from meter charges (both residential and nonresidential) and 43% of revenues from usage charges (both residential and nonresidential). Approximately 85% of revenues are from residential customers with the remaining 15% of revenues from commercial/industrial customers and sales of nonpotable water.
Table 2-3. Recommended Water Rates
Current Recommended
Customer Class and Meter Size FY25 FY26 FY27 FY28 FY29 FY30 Rate Change Effective Date > 1-Feb-2025 1-Feb-2026 1-Feb-2027 1-Feb-2028 1-Feb-2029 1-Feb-2030 Annual percent increase > 2.0% 4.0% 4.0% 4.0% 4.0% 4.0% Residential, Commercial, Industrial
Meter Rates ($/month)
¾-inch $35.00 $36.40 $37.90 $39.40 $41.00 $42.60
1-inch $35.00 $36.40 $37.90 $39.40 $41.00 $42.60
1½-inch $58.90 $61.30 $63.80 $66.40 $69.10 $71.90
2-inch $86.70 $90.20 $93.80 $97.60 $101.50 $105.60
2½-inch $123.00 $128.00 $133.00 $138.00 $144.00 $150.00 3-inch $162.00 $168.00 $175.00 $182.00 $189.00 $197.00
4-inch $248.00 $258.00 $268.00 $279.00 $290.00 $302.00
6-inch $481.00 $500.00 $520.00 $541.00 $563.00 $586.00
8-inch $768.00 $799.00 $831.00 $864.00 $899.00 $935.00
10-inch $1,097.00 $1,141.00 $1,187.00 $1,234.00 $1,283.00 $1,334.00 Usage Rates ($/hcf) $1.10 $1.14 $1.19 $1.24 $1.29 $1.34 Non-potable
Meter Rates ($/month) $5.62 $5.84 $6.07 $6.31 $6.56 $6.82 Usage Rates ($/hcf) $0.95 $0.99 $1.03 $1.07 $1.11 $1.15 Note: Rates that include the Annual Payment Discount or the reduction for Qualified Income are not shown.
Exhibit A
This Page Intentionally Blank.
Exhibit A
Use of contents on this sheet is subject to the limitations specified at the end of this document. 3-1 Section 3
Sewer Enterprise Fund
The City’s flat rates for residential customers and commodity rates for nonresidential customers are intended to recover revenues sufficient to adequately fund utility operations, maintenance, and capital replacement expenditures, and meet debt service obligations, while keeping rates as competitive as possible and maintaining a prudent level of reserves.
3.1 Wastewater System Operations
The Public Works Department maintains approximately 40 miles of sewer collection system piping and provides operation and maintenance of six (6) wastewater pumping stations. The treatment plant is permitted for 1.4 Million Gallons per Day (MGD) and is currently processing 1 MGD. The City’s treatment plant processes approximately 367 million gallons of wastewater each year. The facility is located at the south-end of Acacia Avenue and consists of 20 acres of treatment ponds with six (6) 10 horsepower mechanical brush aerators, which provides additional oxygen transfer for the biological treatment process. Treated wastewater is disposed into forty (40) acres of disposal ponds located to the west of the treatment ponds.
3.2 Sewer Accounts
The sewer utility provides service to its approximately 5,800 residential dwelling units and 200 commercial connections. Multiple family accounts are categorized as residential in terms of their sewer rate category and as commercial in terms of their water rate category. The number of residential accounts is projected to increase by approximately 40 per year.
Exhibit A
Section 3 Sewer Enterprise Fund
3-2 Use of contents on this sheet is subject to the limitations specified at the end of this document.
3.3 Sewer Operating Cash Flow
The evaluation of sewer rates involved the update of projected expenditures, revenue from rates, and number of accounts. Operating cash flow (revenues, expenditures, and beginning, ending and target fund balances), and debt service coverage ratios are shown in the table below. Note that current projections of the debt service coverage ratio exceed the technical minimum of 1.20 times Net Revenues in all years. The target reserve level of unrestricted cash is 35 percent of annual operating expenditures.
Sewer operating fund expenditures, revenues and balances are shown below in Table 3-1.
Table 3-1. Sewer Operating Fund Cash Flow
The Capital Reserve includes funding collected for the future Waste Water Treatment Plant (WWTP). In March 2015, City Council agreed to collect funding from existing customers to fund future WWTP upgrades, to meet future state permitting requirements.
Actual Budget
Sewer Operating Fund FY25 FY26 FY27 FY28 FY29 FY30
Beginning Cash 697,400 673,300 593,300 684,500 748,800 782,900 Revenues
Sewer Charges 1,940,700 2,023,700 2,093,800 2,164,600 2,239,300 2,318,600 Other Revenues 223,500 223,500 223,500 223,500 223,500 223,500 Interest 24,400 6,700 5,900 6,800 7,500 7,800
Total Revenues 2,188,600 2,253,900 2,323,200 2,394,900 2,470,300 2,549,900 Expenditures
Operating 1,237,000 1,293,600 1,341,100 1,390,600 1,442,200 1,496,100 Debt Service 196,900 194,000 0 0 0 0
Capital Reserve 373,100 400,000 400,000 400,000 400,000 400,000 Capital Fund - Future WWTP 405,700 446,300 490,900 540,000 594,000 653,400 Total Expenditures 2,212,700 2,333,900 2,232,000 2,330,600 2,436,200 2,549,500 Revenues less Total Expenditures (24,100) (80,000) 91,200 64,300 34,100 400 Ending Cash 673,300 593,300 684,500 748,800 782,900 783,300 Target Cash @ 0.35x Oper & Trans 433,000 452,800 469,400 486,700 504,800 523,600 Debt Service Coverage Test
Net Revenues 951,600 960,300 debt service eliminated October 2025 Add: Developer fees 587,945 275,000
Net Income 1,539,545 1,235,300
Debt Service 196,900 194,000
Coverage Ratio 7.82 6.37
$ Over/(Under) 1.20 Ratio 1,303,265 1,002,500
Exhibit A
Sewer Enterprise Fund Section 3
Use of contents on this sheet is subject to the limitations specified at the end of this document. 3-3 Operating cash flow (expenditures, and target and ending fund balances), debt service coverage ratios and the annual increase in Single Family monthly bills are shown in the figure below.
Figure 3-1. Sewer Operating Fund Cash Flow, Debt Service Coverage & Monthly Bill Increases 1,240,000 1,290,000 1,340,000 1,390,000 1,440,000 1,500,000 370,000 400,000 400,000 400,000 400,000 400,000
410,000
450,000 490,000 540,000 590,000
650,000
200,000
190,000 0
0 0
0 4% 3% 3% 3% 3% 3%
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
FY25 FY26 FY27 FY28 FY29 FY30
Sewer Operating Fund Cash Flow & Monthly Bills
Operating Capital Reserve Reserve - Future WWTP Debt Service Revenue End Balance Target Balance SF Mo. Bill % Δ
Exhibit A
Section 3 Sewer Enterprise Fund
3-4 Use of contents on this sheet is subject to the limitations specified at the end of this document.
3.4 Recommended Sewer Rates
Current and recommended sewer rates are summarized in the table below. Rates that include the Annual Payment Discount or the reduction for Qualified Income are not shown.
The existing rate structure has 17 unique rates and currently recovers approximately 88% of revenues from residential customers, 9% of revenues from commercial customers (except schools and churches) and 2% of revenues from industrial customers. Rates for all customers were increased by the same percentages.
Table 3-3. Recommended Sewer Rates
Current Recommended
Customer Class and Service Type FY25 FY26 FY27 FY28 FY29 FY30 Rate Change Effective Date > 1-Feb-2025 1-Feb-2026 1-Feb-2027 1-Feb-2028 1-Feb-2029 1-Feb-2030 Annual percent increase > 4% 3.0% 3.0% 3.0% 3.0% 3.0%
Residential
Full Rate, $/month
Single family dwellings $26.20 $27.00 $27.80 $28.60 $29.50 $30.40 Dwelling unit in a duplex $26.20 $27.00 $27.80 $28.60 $29.50 $30.40 Dwelling unit in an apartment $26.20 $27.00 $27.80 $28.60 $29.50 $30.40 Separate detached apartment $2.10 $2.20 $2.30 $2.40 $2.50 $2.60 Retirement home occupants $5.70 $5.90 $6.10 $6.30 $6.50 $6.70 $23.58 $24.30 $25.02 $25.74 $26.55 $27.36
$20.96 $21.60 $22.24 $22.88 $23.60 $24.32
Single family dwellings $298.68 $307.80 $316.92 $326.04 $336.30 $346.56 $268.81 $277.02 $285.23 $293.44 $302.67 $311.90
$238.94 $246.24 $253.54 $260.83 $269.04 $277.25
Commercial
Minimum Base Rate, $/month $25.00 $25.80 $26.60 $27.40 $28.20 $29.00 Flow Charge - Full Rate, $/hcf $1.50 $1.55 $1.60 $1.65 $1.70 $1.75 Minimum Base Rate, Annual, $/month $285.00 $294.10 $303.20 $312.40 $321.50 $330.60 Flow Charge, $/hcf - 95% Rate $1.60 $1.47 $1.50 $1.50 $1.50 $1.50 Minimum Base Rate w/Lndscp Credit $25.00 $25.80 $26.60 $27.40 $28.20 $29.00 Flow Charge - Lndscp Credit, hcf $1.44 $1.48 $1.52 $1.57 $1.62 $1.67 Industrial
Flow Charge, $/1000 gallons $2.00 $2.10 $2.20 $2.30 $2.40 $2.50 Biochemical Oxygen Demand, $/1000 pounds $204.50 $210.60 $216.90 $223.40 $230.10 $237.00 Suspended Solids, $/1000 pounds $226.20 $233.00 $240.00 $247.20 $254.60 $262.20 Note: Rates that include the Annual Payment Discount or the reduction for Qualified Income are not shown. 10% Lower Income Discount
20% Lower Income Discount
10% Lower Income Discount, $/month
20% Lower Income Discount, $/month
5% Lower Income Discount, $/month
Exhibit A
Use of contents on this sheet is subject to the limitations specified at the end of this document. 4-1 Section 4
Garbage Enterprise Fund
The City’s rates are intended to recover revenues sufficient to adequately fund utility operations, maintenance, and capital replacement expenditures, while keeping rates as competitive as possible and maintaining a prudent level of reserves.
4.1 Garbage Operations
City commercial accounts have the option to retain garbage disposal services from other service providers. Garbage and disposal services are provided to approximately 4,820 residential and multiple family accounts and 73 commercial accounts.
4.2 Garbage Operating Cash Flow
The evaluation of garbage rates involved the update of projected expenditures, revenue from rates, and number of accounts. Operating cash flow (revenues, expenditures, and beginning, and ending and target fund balances), are shown in the table below. The target reserve level of unrestricted cash is 20 percent of annual operating expenditures.
Garbage operating fund expenditures, revenues and balances are shown below in Table 4-1.
Table 4-1. Garbage Operating Fund Cash Flow
The increase in transfer to the Capital Reserve is due to State regulatory requirements, relating to organic waste recycling. The regulatory requirements will result in needing an extra garbage truck and added cans, in addition to other operating expenses.
Actual Budget
Garbage Operating Fund FY25 FY26 FY27 FY28 FY29 FY30
Beginning Cash 211,200 142,700 198,800 441,700 671,000 908,700 Revenues
Garbage Charges 2,695,800 3,017,100 3,390,800 3,539,100 3,694,300 3,856,800 Other Revenues 23,600 7,600 12,000 24,300 45,200 76,000 Total Revenues 2,719,400 3,024,700 3,402,800 3,563,400 3,739,500 3,932,800 Expenditures
Operating 2,754,800 2,918,600 3,009,900 3,104,100 3,201,800 3,303,100 Capital Reserve 33,100 50,000 150,000 230,000 300,000 380,000 Total Expenditures 2,787,900 2,968,600 3,159,900 3,334,100 3,501,800 3,683,100 Revenues less Total Expenditures (68,500) 56,100 242,900 229,300 237,700 249,700 Ending Cash 142,700 198,800 441,700 671,000 908,700 1,158,400 Target Cash @ 0.20x Operating 551,000 583,700 602,000 620,800 640,400 660,600 Exhibit A
Section 4 Garbage Enterprise Fund
4-2 Use of contents on this sheet is subject to the limitations specified at the end of this document.
Operating cash flow (expenditures, and target and ending fund balances), debt service coverage ratios and the annual increase in Single Family monthly bills are shown in the figure below.
Figure 4-1. Garbage Operating Fund Cash Flow, Debt Service Coverage & Monthly Bill Increases
4.3 Recommended Garbage Rates
Current and recommended garbage rates are summarized in the tables on the next pages. The existing rate structure has approximately 85 unique rates that are derived from unit costs of service, low-income discounts, and an advance payment discount.
The rate structure currently recovers approximately 97% of revenues from residential customers, 2% of revenues from commercial customers and 1% of revenues from bulk service customers. Rates for all customers were increased by the same percentages.
Table 4-2. Recommended Garbage Unit Costs
2,750,000
2,920,000 3,010,000 3,100,000 3,200,000 3,300,000
30,000
50,000
150,000
230,000
300,000
380,000
4%
20%
4% 4% 4% 4%
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
FY25 FY26 FY27 FY28 FY29 FY30
Garbage Operating Fund Cash Flow & Monthly Bills
Operating Capital Reserve Revenue End Balance Target Balance SF Mo. Bill % Δ Current Projected
Customer Class and Service Type FY25 FY26 FY27 FY28 FY29 FY30 Rate Change Effective Date > 1-Feb-2025 1-Feb-2026 1-Feb-2027 1-Feb-2028 1-Feb-2029 1-Feb-2030 Annual percent increase > 4.0% 20.0% 4.0% 4.0% 4.0% 4.0% Unit Costs and Categories
Black can $40.85 $49.00 $50.95 $53.00 $55.10 $57.30
Additional black can $17.35 $20.80 $21.65 $22.50 $23.40 $24.35 Green can $3.45 $4.15 $4.30 $4.45 $4.65 $4.85
Tubbie, per dump $46.35 $55.60 $57.80 $60.10 $62.50 $65.00 Backyard service per can $8.90 $10.70 $11.15 $11.60 $12.05 $12.55 Exhibit A
Garbage Enterprise Fund Section 4
Use of contents on this sheet is subject to the limitations specified at the end of this document. 4-3 Table 4-3. Recommended Garbage Rates
Current Projected
Customer Class and Service Type FY25 FY26 FY27 FY28 FY29 FY30 Residential
Full Rate Rate Code
Res Curbside 1 Blk 501 $40.90 $49.00 $50.95 $53.00 $55.10 $57.30 Res Curbside 2 Blk 502 $58.20 $69.80 $72.60 $75.50 $78.50 $81.65 Res Curbside 3 Blk 503 $75.70 $90.60 $94.25 $98.00 $101.90 $106.00 Res Curbside 4 Blk 504 $93.00 $111.40 $115.90 $120.50 $125.30 $130.35 Res Curbside 1 Blk + 1 Grn 510 $44.30 $53.15 $55.25 $57.45 $59.75 $62.15 Res Curbside 1 Blk + 2 Grn 511 $47.70 $57.30 $59.55 $61.90 $64.40 $67.00 Res Curbside 2 Blk + 1 Grn 512 $61.60 $73.95 $76.90 $79.95 $83.15 $86.50 Res Curbside 2 Blk + 2 Grn 513 $65.00 $78.10 $81.20 $84.40 $87.80 $91.35 Res Curbside 3 Blk + 1 Grn 514 $79.10 $94.75 $98.55 $102.45 $106.55 $110.85 Res Curbside 4 Blk + 1 Grn 515 $96.40 $115.55 $120.20 $124.95 $129.95 $135.20 Res Curbside 1 Blk + 3 Grn 516 $51.10 $61.45 $63.85 $66.35 $69.05 $71.85 Res Curbside 1 Blk + 4 Grn 517 $71.85 $86.40 $89.80 $93.30 $97.10 $101.05 Res Curbside 2 Blk + 3 Grn 518 $68.40 $82.25 $85.50 $88.85 $92.45 $96.20 Res Curbside 3 Blk + 2 Grn 519 $82.45 $98.90 $102.85 $106.90 $111.20 $115.70 Res Curbside #2 Blk Only 520 $17.40 $20.80 $21.65 $22.50 $23.40 $24.35 Res Curbside #2 Blk + Grn 521 $20.80 $24.95 $25.95 $26.95 $28.05 $29.20 Res Curbside 1 Grn Only 522 $3.40 $4.15 $4.30 $4.45 $4.65 $4.85 Res Backyard 1 Blk 523 $49.70 $59.70 $62.10 $64.60 $67.15 $69.85 Res Backyard 1 Blk + 1 Grn 524 $61.90 $74.55 $77.55 $80.65 $83.85 $87.25 Res Curbside 2 Grn Only 525 $6.80 $8.30 $8.60 $8.90 $9.30 $9.70 Multiple Dwelling
Duplex Curbside 560 $81.40 $98.00 $101.90 $106.00 $110.20 $114.60 Duplex Curbside + 1 Grn 561 $84.80 $102.15 $106.20 $110.45 $114.85 $119.45 Duplex Curbside + 2 Grn 562 $88.20 $106.30 $110.50 $114.90 $119.50 $124.30 4-Plex Curbside + Grn Can 564 $167.50 $200.15 $208.10 $216.45 $225.05 $234.05 Duplex Curbside 2 Blk + 1 Grn (561+520) 568 $102.20 $122.95 $127.85 $132.95 $138.25 $143.80 Triplex Curbside 565 $122.60 $147.00 $152.85 $159.00 $165.30 $171.90 Triplex Curbside + 1 Grn 566 $126.00 $151.15 $157.15 $163.45 $169.95 $176.75 4-Plex Curbside 567 $164.10 $196.90 $204.80 $213.00 $221.50 $230.40 Commercial
Comm Curbside 1 Tubbie + 3 Blk 563 $307.95 $369.40 $384.05 $399.40 $415.30 $431.90 Comm Curbside 1 Blk 570 $40.90 $49.00 $50.95 $53.00 $55.10 $57.30 Comm Curbside 2 Blk 571 $81.70 $98.00 $101.90 $106.00 $110.20 $114.60 Comm Curbside 2 Blk + 1 Grn (571+522) 569 $85.15 $102.15 $106.20 $110.45 $114.85 $119.45 Comm Curbside 3 Blk 572 $122.55 $147.00 $152.85 $159.00 $165.30 $171.90 Comm Curbside 1 Blk + 1 Grn 573 $44.30 $53.15 $55.25 $57.45 $59.75 $62.15 Comm Curbside 9 Blk + 1 Grn 574 $371.10 $445.15 $462.85 $481.45 $500.55 $520.55 Comm Backyard 1 Blk 575 $49.70 $59.70 $62.10 $64.60 $67.15 $69.85 Comm Backyard 1 Blk + 1 Grn 577 $62.10 $74.55 $77.55 $80.65 $83.85 $87.25 Comm Curbside 1 Tubbie 578 $185.40 $222.40 $231.20 $240.40 $250.00 $260.00 Comm Curbside 2 Tubbies 579 $370.80 $444.80 $462.40 $480.80 $500.00 $520.00 Comm Curbside ANN 1 Blk 580 $466.26 $558.60 $580.83 $604.20 $628.14 $653.22 Comm Curbside ANN 1 Blk + 1 Grn 583 $505.02 $605.91 $629.85 $654.93 $681.15 $708.51 Comm Curbside 4 Blk 1 Grn 581 $166.85 $200.15 $208.10 $216.45 $225.05 $234.05 Comm Curbside ANN 3 Blk 582 $1,397.07 $1,675.80 $1,742.49 $1,812.60 $1,884.42 $1,959.66 Comm Curbside ANN Tubbie 587 $2,113.56 $2,535.36 $2,635.68 $2,740.56 $2,850.00 $2,964.00 Comm Curbside 2 Grn 588 $6.80 $8.30 $8.60 $8.90 $9.30 $9.70 Comm Curbside 4 Grn (588x2) 591 $13.60 $16.60 $17.20 $17.80 $18.60 $19.40 Comm Curbside 6 Grn 592 $20.40 $24.90 $25.80 $26.70 $27.90 $29.10 Comm Curbside 2 Blk + 5 Grn 593 $98.95 $118.75 $123.40 $128.25 $133.45 $138.85 Comm Curbside 2 Blk + 12 Grn 594 $123.10 $147.80 $153.50 $159.40 $166.00 $172.80 Comm Curbside 1 Blk + 2 Grn 589 $47.70 $57.30 $59.55 $61.90 $64.40 $67.00 Bulk
5-Plex 590 $204.25 $245.00 $254.75 $265.00 $275.50 $286.50 Tiffany Estates 43 Blk cans 595 $1,758.70 $2,107.00 $2,190.85 $2,279.00 $2,369.30 $2,463.90 Zion Curbside 9 Grn 598 $30.60 $37.35 $38.70 $40.05 $41.85 $43.65 Exhibit A
This Page Intentionally Blank.
Exhibit A
Use of contents on this sheet is subject to the limitations specified at the end of this document. 5-1 Section 5
Evaluation of Single Family Monthly
Bills
The impact of rate increases on customer classes are evaluated separately for each enterprise.
5.1 Combined Impact of Water, Sewer and Garbage Rates
The combined impact on the monthly bill for a residential customer with a 1-inch water meter and 16 hcf per month water use, a sewer connection and residential curbside 1 black + 1 green service is shown in the table and figure below.
Figure 5-1. Impact of Water, Sewer and Garbage Rates on Residential Monthly Bills Prior Recommended
Monthly Bill FY25 FY26 FY27 FY28 FY29 FY30
Water $52.60 $54.64 $56.94 $59.24 $61.64 $64.04
Sewer $26.20 $27.00 $27.80 $28.60 $29.50 $30.40
Garbage $44.30 $53.15 $55.25 $57.45 $59.75 $62.15
Total $123.10 $134.79 $139.99 $145.29 $150.89 $156.59
Monthly $ ∆ FY25 FY26 FY27 FY28 FY29 FY30
Water $1.02 $2.04 $2.30 $2.30 $2.40 $2.40
Sewer $1.00 $0.80 $0.80 $0.80 $0.90 $0.90
Garbage $1.70 $8.85 $2.10 $2.20 $2.30 $2.40
Total $3.72 $11.69 $5.20 $5.30 $5.60 $5.70
Monthly % ∆ FY25 FY26 FY27 FY28 FY29 FY30
Water 2% 4% 4% 4% 4% 4%
Sewer 4% 3% 3% 3% 3% 3%
Garbage 4% 20% 4% 4% 4% 4%
Total 3.1% 9.5% 4.0% 4.0% 4.0% 4.0%
$53 $55 $57 $59 $62 $64
$26 $27 $28 $29 $30 $30
$44
$53 $55 $57 $60 $62
$123
$135 $140 $145 $151 $157
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
FY25 FY26 FY27 FY28 FY29 FY30
Garbage Sewer Water
Exhibit A
Section 5 Evaluation of Monthly Bills
5-2 Use of contents on this sheet is subject to the limitations specified at the end of this document.
5.2 Survey of Residential Customer Bills
Current and projected Ripon FY26 residential customer bills were compared to those in the cities of Ceres, Escalon, Lathrop, Manteca, Modesto, Oakdale and Riverbank based on comparable levels of service.
Figure 5-2. Survey of Single Family Customer Bills
$47 $53 $37 $55 $43 $49 $57
$85
$64
$35 $26 $49 $27 $43
$61 $40
$59 $84 $36 $44 $39 $53 $55
$38 $55
$37
$51
$118 $123 $125
$135 $141 $149 $152
$181
$199
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
$220
Escalon Ripon,
Current
Riverbank Ripon,
Proposed Feb
2026
Manteca Oakdale Modesto Ceres Lathrop
Water Sewer Garbage
Exhibit A
Use of contents on this sheet is subject to the limitations specified at the end of this document. 6-1 Section 6
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 agreement between the City of Ripon and Pavletic Consulting LLC. This document is governed by the specific scope of work authorized by the City of Ripon in an Agreement dated February 11, 2025; it is not intended to be relied upon by any other party. We have relied on information or instructions provided by the City of Ripon and, unless otherwise expressly indicated, have made no independent investigation as to the validity, completeness, or accuracy of such information.
Exhibit A
This Page Intentionally Blank.
Exhibit A