Attachment 1 - Sewer Rate Study — Salinas City Council, April 22, 2025

CITY OF SALINAS

SEWER RATE STUDY
April 11, 2025
www.FinanceDTA.com 18201 Von Karman Avenue, Suite 220
Irvine, CA 92612

CITY OF SALINAS

SEWER RATE STUDY
Prepared for:

City of Salinas
200 Lincoln Avenue
Salinas, CA 93901

TABLE

OF CONTENTS

SECTION PAGE
I EXECUTIVE SUMMARY ................................ ............ 1 II INTRODUCTION ................................ ..................... 3 A Purpose ................................ ................................ .. 3 B Proposition 218 ................................ .................... 3 C Approach ................................ ............................... 5 D Current Sewer System ................................ ........ 5 E Sewer Master Plan Update and CIP ................. 5
F Rate Study Organization ................................ .... 6 III REVENUE REQUIREMENTS ................................ ... 7 A Operations and Maintenance ........................... 7 B Capital Expenditures ................................ ........... 7 C Debt Service ................................ .......................... 8 D Reserve Requirements ................................ ........ 9 IV SEWER RATE ANALYSIS ................................ ....... 10 A Current Rate Structure ................................ .....10 B Proposed Rate Structure ................................ ..10 C Equivalent Dwelling Units ............................... 10 D Model Considerations ................................ ....... 10 V IMPLEMENTATION OF RATES ........................... 12 VI CONCLUSION ................................ ........................ 13

APPENDICES

APPENDIX A SEWER RATE MODEL

APPENDIX B RATE MODEL ASSUMPTIONS

APPENDIX C HIGH PRIORITY PROJECT COST TABLES

APPENDIX D EDU SUMMARY
APPENDIX E 1O-YEAR RATE SUMMARY BY LAND USE
1 SECTION I

EXECUTIVE SUMMARY
City of Salinas April 11, 2025
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I EXECUTIVE SUMMARY
The City of Salinas (the “City”) Wastewater Division of the Public Works Department, hereinafter referred to as the “Sewer Department,” owns and operates a municipal sanitary sewer system made up of over 280 miles of gravity sewer mains, 11 lift stations and hundreds of manholes which collects wastewater generated within the City as well as certain areas outside of the City and transports it to an independent agency, Monterey One Water (“M1W”) for treatment and disposal. The City and M1W impose separate wastewater rates for their services and this study looks only at the City’s own wastewater collectio n charges. M1W, the regionaltreatment system, is a separate governmental entity that sets its own rates which apply to the City and other regional participants including the Cities of Pacific Grove, Del Rey Oaks, Seaside, Sand City, Fort Ord,Marina, Castroville,Monterey, Moss Landing, and some unincorporated areas in northern Monterey County. The regional treatment rates levied by M1W are not a part of this study.

In 2011, a sewer rate study was prepared that increased sewer rates to $5.45 per month for residential users or equivalent dwelling unit (“EDU”). The sewer rate has not changed since 2012. Over a number of years, the sewer enterprise fund, which funds ongoing maintenance of the sewer system has had a funding shortfall. This has meant that necessary infrastructure repairs and upgrades have not been financially possible, leading to system failures and costly emergency repairs. Investment is required to meet S tate mandates and to prevent additional untreated sewage discharges as occurred in April 2022 which led to a Notice of Violation and fine from the Regional Board.

In 2024, DTA was engaged by the City to evaluate potential rate structures and provide recommendations on how best to address funding gaps for sewer infrastructure upgrades and long-term sewer system needs. DTA prepared various sewer rate scenarios based o n the costs provided by City staff for operation and maintenance costs and debt service, plus required capital improvements for improvements needed over the 10-year study period.

The City’s current sewer rate of $5.45 per residential user or EDU is intended to cover the City’s annual operation and maintenance ( “O&M”) costs, as well as servicing existing debt obligations, but currently experiences a shortfall. The City’s sewer enterprise fund’s expected revenue and annual budget is projected to experience a shortfall of approximately $400,000 for FY 2024 -25 and will n ot meet the required 125% debt service coverage requirement on the existing bonds. In addition, the current budget does not include capital improvements required for system replacements and upgrades.

The City has identified key infrastructure costs of approximately $114.8 million (escalated value) of capital improvement projects over a ten-year period to upgrade the system to maintain current levels of service. The study herein incorporates the revenue requirements and calculates new sewer rates in compliance with Proposition 218 requirements. 2 SECTION I

EXECUTIVE SUMMARY
City of Salinas April 11, 2025
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As described in this study, the rates are proposed to be increased and phased in over a ten (10) year period:

Table 1: Proposed Rate per EDU
Fiscal Year 25/26 26/27 27/28 28/29 29/30 30/31 31/32 32/33 33/34 34/35 Rate per
EDU per
month
$16.35 $16.68 $17.01 $17.35 $17.70 $18.05 $18.41 $18.78 $19.16 $19.54 Based on the proposed sewer rates presented herein , a single -family customer (i.e., one EDU) would see their monthly sewer rate increase from the current $ 5.45 to $16.35 in the first year (a 200% increase) and increase to $19.54 by the end of the ten-year period. The sewer rate per month for other land use classes will be based on the applicable EDU factor as shown in AppendixD herein. The sewer rates by land use category for the ten-year study period is included in Appendix E herein.

The new sewer rates presented in this study were based on the best information available at the time. Regular updates of the financing and rate projections should be performed as accurate and more complete information becomes available. 3 SECTION II

INTRODUCTION
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II INTRODUCTION
The City Sewer Department owns and operates a municipal sanitary sewer systemmade up of over 280 miles of gravity sewer mains, 11 lift stations and hundreds of manholes which collects wastewater generated within the City as well as certain areas outside of the City and transports it to an independent agency, M1W for treatment and disposal. The City and M1W impose separate wastewater rates for their services and this study looks only at the City’s own wastewater collection charges. M1W, the regionaltreatment system, is a separate governmental entity that sets its own rates which apply to the City and other regional participants including the Cities of Pacific Grove, Del Rey Oaks, Seaside, Sand City, Fort Ord, Marina, Castroville, Monterey, Moss Landing, and some unincorporated areas in northern Monterey County. The regional treatment rates levied by M1W are not a part of this study.

The City has engaged DTA to prepare an updated rate study to analyze the current revenue requirements of the Sewer Department and develop a rate structure that will result in sufficient stable revenues to pay for O&M, annual debt service requirements, capital improvements and replacement, as well as fund an operating reserve.

In November 2011, the City approved an updated rate study which increase d sewer rates from $4.46 per EDU per month to $5.45 per EDU per month effective February 1, 2012.

Although the City Council adopted the General Plan in 2002, the 2011 rate study did not incorporate capital improvement projects to address upsizing for future conditions.

The City’s current sewer rate of $5.45 per residential user or equivalent dwelling unit (EDU) is intended to cover the City’s annual O&M costs, as well as servicing existing debt obligations, but is currently experiencing a shortfall. The City’s sewer ente rprise fund’s expected revenue and annual budget is projected to experience a shortfall of approximately $400,000 for FY 2024 -25 and will not meet the required 125% debt service coverage requirement on the existing bonds. In addition, as mentioned above, t he current budget does not include capital improvements required for system replacements and upgrades.

A. Purpose
The purpose of this study is to present an updated sewer rate that is in compliance with Proposition 218 requirements as described further in Section II.B below while fully funding revenue requirements for the sewer system as outlined in Section III below.

All numbers used in this sewer rate study were either a) provided by the City or Sewer Department, ii) assumed and agreed upon with the City or Sewer Department, or iii) calculated by DTA using data provided and/or agreed to by the City or Sewer Department.

B. Proposition 218
Ongoing fees for sewer service are commonly called rates. These sewer rates must be supported by a cost -of-service study, or rate study, showing the revenue requirement will be met through the collection of sewer rates as well as a method of reasonably 4 SECTION II

INTRODUCTION
City of Salinas April 11, 2025
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apportioning the costs of service to the various customer classes. Sewer rates for ongoing sewer service have a direct relationship to land ownership, hence are considered property-related fees subject to the limitations of Article XIII D, Section 6 of the California Constitution (“Proposition 218”).

In November 1996, the California voters approved Proposition 218, the “Right to Vote on Taxes Act”, which added Article XIII D to the California Constitution. Proposition 218 imposes certain requirements relative to theimposition of certain assessments, fees and charges by local agencies, including the following:

Revenues derived from the fee or charge shall not exceed the funds required to provide the property related service;
Revenues derived from the fee or charge shall not be used for any purpose other than that for which the fee or charge was imposed; The amount of fee or cha rge imposed upon any parcel or person as an incident of property ownership shall not exceed the proportional cost of the service attributable to that parcel; and
No fee or charge may be imposed for a service unless that service is actually used by, or immediately available to, the owner of the property in question.

The rate structure recommended in this study will meet all of the limitations of Proposition 218 in both revenue requirements and proportionality.

In addition, before a local agency can levy new or increased sewer rates, the following procedures are required pursuant to Proposition 218:

Preparation of a rate justification study, prepared by a qualified individual or firm, and the study must justify the proposed rate increase.

The record owner of each parcel subject to the proposed increase must be provided with a written notice of the proposed increase.As industry practice, DTA will also coordinate with the City to mail such notices to the billing address of the sewer customer.

Notice to the record owner must specify the time, date, and location of the public hearing at which the proposed increased fee will be considered. Such notice will also be sent to the billing address of the sewer customer as mentioned above.

A public hearing shall be conducted, held not less than 45 days after mailing the notice, to consider protests to the proposed increased fee.

The increased fee can be approved if a majority of the property owners do not file written protests against the proposed increase. 5 SECTION II

INTRODUCTION
City of Salinas April 11, 2025
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C. Approach
The methodology used in this study to determine proposed rate structures will follow the guidelines provided in AWWA, Principles of Water Rates, Fees, and Charges, Manual of Water Supply Practices(M1 Manual) as they may apply to sewer collection services .

These guidelines were incorporated in the development of a cost -of-service analysis and a rate model that is used to evaluateSewer Department specific conditions, criteria, and goals.

D. Current Sewer System
The City of Salinas owns and operates a municipal sanitary sewer collection system (“Sewer System”) that services residents and businesses within its service area. The Sewer System has a service area of approximately 12,430 acres, with over 280 miles of gravity sewer mains and 11 lift stations that convey sewage flows to the Regional Wastewater Treatment Plant, operated by M1W.

E. Sewer Master Plan Update and CIP
On May 2, 2023, through Resolution No. 22648, City Council adopted the Salinas Sanitary Sewer Master Plan Update (“SSMP”). The SSMP identified existing hydraulic deficiencies, operation and maintenance repairs, and lift station upgrades required to keep th e existing sanitary sewer system operational. The SSMP estimates sewage flows at 10.46 million gallons per day from the existing sanitary sewer system. Required maintenance repairs and existing hydraulic deficiencies were ranked based on priority. Costs fo r maintenance repairs and to fix existing hydraulic deficiencies are the sole responsibility of the City rate payers.

The SSMP developed a Sanitary Sewer Capital Improvement Program (“CIP”) that identified capital improvement projects to address both the existing maintenance repairs and deficiencies and upsizing for future conditions. Capital improvement projects were ranked based on priority. Ranking for existing system capital improvement projects was based on the following criteria to prioritize them: impacts to water bodies, design standards, maintenance requirements, impact to the community and proximity to a monitori ng manholes. For lift stations, the criteria used to prioritize them were:
impacts to water bodies, inspection frequency, pumping capacity deficiency, peak hour emergency response time, bypass requirement, generator requirement, control or electronic update requirement, and impacts to the community. Possible impacts from future development were also analyzed for maintenance and lift station projects. Future capital improvement projects required exclusively to upsize the sewer system to accommodate future development were not ranked in the SSMP as these improvements must be coordinated and timed with development.

As mentioned earlier, the City’s current sewer rate does not fund capital improvements required for system replacements and upgrades. Of the facilities and costs identified in the CIP, the City has identified only the highest priority projects (“High Priority Projects”) 6 SECTION II

INTRODUCTION
City of Salinas April 11, 2025
Sewer Rate Study
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that would need to be funded from future rate revenue.

F. Rate Study Organization
In order to fully fund the necessary revenue requirements as identified in the following sections of the rate study, the City’s sewer rates must be increased.

Below is a description of the remaining sections of the rate study:

Section III: Revenue Requirements– This section describes the cost categories that the sewer rate revenue and other revenue sources will need to fund including, operations and maintenance costs (“O&M”), capital expenditures, debt service, and contributions to the operating reserve.

Section IV: Sewer Rate Analysis– This section describes the proposed rates to be charged to sewer customers in the City and the calculations used in determining a sewer rate structure that can fully fund the revenue requirements described in Section III.

Section V : Implementation of Rates– This section includes the proposed updated sewer rates for the various land uses during the ten-year study period.

Section VI : Conclusion– This section includes the overall conclusions. 7 SECTION III

RATE REVENUE
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III REVENUE REQUIREMENTS
The Revenue Requirements, or cost categories, that rate revenue and other revenue sources will need to pay for include , o perations and maintenance costs (“O&M”), capital expenditures, debt service, and contributions toan operating reserve. These cost categories are described in greater detail below.

A. Operations and Maintenance
The Sewer Department’s O&M costs include salaries and benefits, supplies and materials, outside services, and other charges. The O&M cost projections use the baseline costs from theCity’s adopted operating budget for fiscal year 24/25, as shown in the section, “Enterprise Operations, 5446 Sanitary Sewer Division.” The City’s costs are escalated by a factor of 7.5% annually as a reasonable estimate of future costs based on direction from the City.

B. Capital Expenditures
As described earlier, the City identified High Priority Projects as shown in Appendix C to be funded by the proposed sewer rate. The total cost of the sewer system capital upgrades assigned to existing development, adjusted for inflation, is equal to approximately $114.8 million. The listing of capital improvement projects are divided into three categories;i) Maintenance and repairs to the existing sewer system; ii) Sewer upsizing costs allocated to existing development; and iii) Lift Stations. Maintenance and repair projects address hydraulic and maintenance deficiencies of the existing sewer system. These improvements were identified as pipelines without the required velocities, with sags or failures, or with blockages that constrain flows. In addition, sewer upsizing projects will correct exis ting capacity deficiencies to upsize pipelines to allow sewers to flow more efficiently. Lift station projects will address upgrades to outdated systems and will provide uniformity and redundancy to the overall system.

These High Priority Projects are described in further detail below:

B.1. Existing Sewer Collection
The SSMP identified thirty -one (31) sewer collection system projects and eleven (11) lift station projects that have hydraulic deficiencies and maintenance concerns under existing conditions. The Wallace Group recommended that these projects be completed over a five to 15 -year period. The City then adjusted the timing of the expenditures to more closely match the City’s capacity to implement the appropriate level of projects on an annual basis. TheCity identified thirteen (13) projects from the list of projects identified in the SSMP that would be expected to be implemented within the next ten years. The total costs for these projects, adjusted for inflation at 3% per annum, is $70 .7 million. See Table C -1 in Appendix C herein for project costs and timeline, adjusted for 3% inflation.
8 SECTION III

RATE REVENUE
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B.2. Sewer Upsizing
The SSMP identified nine (9) projects that will need existing sewer lines to be upsized due to existing deficiencies and the need to provide additional capacity for new development. Wallace Group provided allocations of costs to new and existing development based on existing and future flow and pipe sizes. The City then provided updated cost projections and project timing for seven of the nine projects listed in the SSMP. The total projected costs for these projects, adjusted for inflation at 3% per annum, is estimated to be $20.6 million as shown in Table C-2 in Appendix C herein.

B.3 Lift Stations
The City owns and operateseleven (11) sewer lift stationsthroughout the City and also maintains one lift station funded through an existing assessment district. All lift stations are integral with the City’s sewer collection system. The SSMP evaluated each of the lift stations and force mains for hydraulic performance and emergency response times in the event of sanitary sewer overflow conditions. The SSMP provided present value costs for the lift station upgrades recommended by the analysis. The City provided the timing and costs for seven (7) of the eleven lift stations mentioned in the SSMP that are expected to be completed within the next seven (7) years. The total projected costs for these projects, adjusted for inflation at 3% per annum, is estimated to be $23.5 million as shown in Table C-3 in Appendix C herein.

B.4 Total Costs for High Priority Projects
Table 2 below is a summary of the total costsfor the High Priority Projectsas described above, adjusted for inflation, used for setting the updated sewer rates . Table C -4 in Appendix C herein summarizes the total costs by year.

Table 2
Costs for High Priority Projects
Description Cost
Sewer Collection $70.7 million
Sewer Upsizing $20.6 million
Lift Stations $23.5 million
Total $114.8 million
C. Debt Service
Debt service includes the annual principal and interest payments on bonds issued by the City whose proceeds are used to pay for capital improvements to the City-wide sewer system. The debt service for both existing bonds issued and bonds that are 9 SECTION III

RATE REVENUE
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proposed to be issued in the future are intended to be paid for from rate revenue.

Existing Debt Service - The existing annual bond debt service to be paid by sewer rates consist of annual principal and interest payments for Wastewater Revenue Refunding Bonds Series 2020A. First issued in 2020, the annual debt service on these bonds is indicated in the rate model herein over the next ten (10) years.

Proposed Debt Service – The timing of capital improvements and the acceptable levels of pay -as-you-go financing of such improvements suggest that funding a portion of the capital improvements by debt in the form of revenue bonds would not only reduce the a nnual revenue requirement of the capital facilities program, but also reduce the annual sewer rates required to cover the costs of operations and maintenance, reserves and total debt service as compared to a complete pay-as-you- go alternative.

The timing of issuance and the amounts of the bonds are dependent upon the timing and costs of the capital projects in accordance with the goals of the City, as identified in Section B above.For purposes of this analysis, three separate bond issuances were considered, issued in years 2, 5 and 8 during the ten (10) year study period. Please refer to Appendix B for additional bond assumptions.

D. O&M Reserve Requirements
In year two of this study, it is assumed that $2,000,000 from the net operating income after debt service will be transferred to anewly established operating reserve fund. The City expects to adopt a formal reserve policy following the adoption of this rate study.
10 SECTION IV

SEWER RATE ANALYSIS
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IV SEWER RATE ANALYSIS
A. Current Rate Structure
The City currently funds the majority of its operational and capital improvement costs through sewer rate revenue. For reference, M1W is the sewer treatment provider in northern Monterey County. M1W is responsible for the treatment of wastewater while the City is responsible for collecting and transporting wastewater toM1W. This shared responsibility is reflected on the monthly bill to property owners.

The City’s current sewer rates included on the monthly bills sent byM1W are charged on a per EDU basis. The current Fiscal Year 24/25 sewer rate is equal to $5.45 per EDU per month. ForFiscal Year 24/25, the activities of which consisted of routine operation and maintenance as well as debt service payments on existing bonds , the revenues were less than the expenditures. The deficit in expenses versus revenues demonstrates that the current rates are not sufficient to maintain the existing system.

B. Proposed Rate Struct ure
The proposed rate structure utilizes both pay -as-you-go rate collections as well as bond issuances to fund the annual O&M costs and a minimum level of capital facilities.

Projections under this rate structure suggest that the City will havesufficient reserves to continue meeting debt service and capital needs by the end of FY 2034-35. Please see below for a summary of the findings:
 Year 1 Monthly Rate per EDU (2025) - $16.35
 Sewer Rate escalates annually by 2%
 Estimated Year 10 Capital Replacement Fund Balance: $7.5 million  Estimated Total Facilities Funded through Bonds and Pay-Go: $114.8 million C. Equivalent Dwelling Units
As mentioned earlier, this study uses an EDU methodology to allocate costs to the various land uses for the City’s billing purposes. The flow per land use unit is divided by the flow per single family land use unit to determine the flow relative to a singl e family unit (EDU per Billing Unit). Note that the flow per land use unit factors are averages provided by M1W. The number of customer connections and the flow per connection for each land use as of July 2024 was provided to the City by M1W. The total City-wide EDUs were then determined by multiplying the EDU per Billing Unit by the number of connections for that land use category. Since the City’s sewer infrastructure consists of City-wide collection and not treatment, the EDUs are based only on flow. The tabulation for total City-wide EDUs (60,558) is shown in AppendixD.

For the purposes of projecting growth in EDUs over the ten-year study period, a 1% 11 SECTION IV

SEWER RATE ANALYSIS
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per year growth factor is assumed.

D. Model Considerations
It is evident that there are many combinations of assumptions that affect the determination of a rate structure calculation that can potentially meet the revenue requirements on an annual basis. Factors including inflation, ann ual rate escalations, debt service and customer growth play into the determination of such a rate structure.
12 SECTION V

IMPLEMENTATION OF RATES
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V IMPLEMENTATION OF RATES
The proposed sewer rates for the ten-year period are shown in Table 3 below. The full rate model is included in Appendix A herein. Rates for all land uses will see a 200% increase in year 1 and an annual increase of 2% each year thereafter during the ten (10) year study period. The annual increase is necessary in order to fully fund all revenue requirements.The sewer rates by land use category for the ten -year study period is included in Appendix E herein.

Table 3: Proposed Rate per EDU per month
Fiscal Year 25/26 26/27 27/28 28/29 29/30 30/31 31/32 32/33 33/34 34/35 Rate per
EDU per
month
$16.35 $16.68 $17.01 $17.35 $17.70 $18.05 $18.41 $18.78 $19.16 $19.54 It is strongly suggested that in Year 5 (FY 2029 -30), the City review their annual operation and maintenance costs, capital facilities costs and timing, demographics information, as well as the various modelling assumptions and update the sewer rates, if needed. 13 SECTION VI

CONCLUSION
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VI CONCLUSION
The final sewer rates contained in this study are a result of an extensive public process with input received from City staff and the City Council and are based on the best information available at the time. Regular review and evaluation of the financing and rate projections should be performed as accurate and more complete information becomes available. The rates should be reviewed annually to take into account the results of local project construction bids, actual O&M and capital facilities costs, actual financing received for the projects, and adjustment to the rates may be considered, as necessary.

The new sewer rates, as shown in Table 3 herein, are designed to produce revenues adequate to fund operations and maintenance , new capital improvement projects, debt service and an operating reserve over a ten-year period.

Based on the new sewer rates presented herein, a single-family customer would see their monthly sewer rate increase from the current $ 5.45 to $ 16.35 in the first year ( a 200% increase), and increase to $19.54 by the end of the ten-year period.

It is strongly suggested that in Year 5 (FY 2029 -30), the City review their annual operation and maintenance costs, capital facilities costs and timing, demographics information, as well as the various modelling assumptions and update the sewer rates, if needed.

APPENDIX A
City of Salinas
Sewer Rate Study

SEWER RATE MODEL
Study Year NumberCurrent
Budget1 1 2 3 4 5 6 7 8 9 10
Calendar Year2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2031 2031-2032 2032-2033 2033-2034 2034-2035 Rate ($ per EDU -Monthly) 5.45$ 16.35$ 16.68$ 17.01$ 17.35$ 17.70$ 18.05$ 18.41$ 18.78$ 19.16$ 19.54$ 200.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% EDUs 60,558 60,558 61,164 61,776 62,393 63,017 63,647 64,284 64,927 65,576 66,232 Operations
Operating Revenue
City of Salinas Rate Revenue 3,960,518$ 11,881,554$ 12,240,377$ 12,610,037$ 12,990,860$ 13,383,184$ 13,787,356$ 14,203,734$ 14,632,687$ 15,074,594$ 15,529,847$ Investment Interest
Net Income Carry Forward from Prior Year 0 0 0 0 0 0 0 0 0 0 0 Inspection Fees
Total Operating Revenue 3,960,518$ 11,881,554$ 12,240,377$ 12,610,037$ 12,990,860$ 13,383,184$ 13,787,356$ 14,203,734$ 14,632,687$ 15,074,594$ 15,529,847$ 136,334,229$ Operational Expenses
Salaries and Benefits 1,954,090 $ 2,100,647$ 2,258,195$ 2,427,560$ 2,609,627$ 2,805,349$ 3,015,750$ 3,241,931$ 3,485,076$ 3,746,457$ 4,027,441$ Supplies and Materials 241,000 $ 259,075$ 278,506$ 299,394$ 321,848$ 345,987$ 371,936$ 399,831$ 429,818$ 462,055$ 496,709$ Outside Services 388,000 $ 417,100$ 448,383$ 482,011$ 518,162$ 557,024$ 598,801$ 643,711$ 691,989$ 743,889$ 799,680$ Other Charges 397,500 $ 427,313$ 459,361$ 493,813$ 530,849$ 570,663$ 613,462$ 659,472$ 708,932$ 762,102$ 819,260$ NPDES Allocation 536,920 $ 577,189$ 620,478$ 667,014$ 717,040$ 770,818$ 828,629$ 890,777$ 957,585$ 1,029,404$ 1,106,609$ Total Operational Expenses3,517,510$ 3,781,323$ 4,064,922$ 4,369,792$ 4,697,526$ 5,049,841$ 5,428,579$ 5,835,722$ 6,273,401$ 6,743,906$ 7,249,699$ 53,494,711$ Net Operating Income before Debt Service443,008$ 8,100,231$ 8,175,455$ 8,240,245$ 8,293,334$ 8,333,343$ 8,358,777$ 8,368,012$ 8,359,286$ 8,330,688$ 8,280,148$ 82,839,518$ Debt Service
Current Debt Service 856,080 $ 865,385$ 863,002$ 859,384$ 863,658$ 862,054$ 864,951$ 861,608$ 862,093$ 856,582$ 860,170$ 8,618,887$ First Issuance - $ - $ 2,832,990$ 2,832,990$ 2,832,990$ 2,832,990$ 2,832,990$ 2,832,990$ 2,832,990$ 2,832,990$ Second Issuance - $ - $ - $ - $ - $ 1,017,404$ 1,017,404$ 1,017,404$ 1,017,404$ 1,017,404$ Third Issuance - $ - $ - $ - $ - $ - $ - $ - $ 1,892,346$ 1,892,346$ Total Debt Service 856,080$ 865,385$ 863,002$ 3,692,374$ 3,696,648$ 3,695,044$ 4,715,346$ 4,712,002$ 4,712,487$ 6,599,323$ 6,602,911$ Debt Service Ratio (1.25 Minimum) 0.52 9.36 9.47 2.23 2.24 2.26 1.77 1.78 1.77 1.26 1.25 Net Operating Income After Debt Service (413,072)$ 7,234,846$ 7,312,453$ 4,547,871$ 4,596,685$ 4,638,299$ 3,643,432$ 3,656,010$ 3,646,799$ 1,731,365$ 1,677,237$ 42,684,997$ .

Transfer to Operating Reserve (2,000,000) $ - $ - $ - $ - $ - $ - $ - $ - $ Transfer to Capital Replacement Program (7,234,846)$ (5,312,453)$ (4,547,871)$ (4,596,685)$ (4,638,299)$ (3,643,432)$ (3,656,010)$ (3,646,799)$ (1,731,365)$ (1,677,237)$ (40,684,997)$ Net Year End Balance in Operating Account -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Fiscal Year 1 2 3 4 5 6 7 8 9 10
2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2031 2031-2032 2032-2033 2033-2034 2034-2035 Operating Reserve Fund Balance
Carry Forward from Prior Year - $ - $ 2,000,000$ 2,000,000$ 2,000,000$ 2,000,000$ 2,000,000$ 2,000,000$ 2,000,000$ 2,000,000$ 2,000,000$ Interest Earnings on Fund Balance 40,000 $ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ Less: Transfer Interest Earnings to Capital Fund 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ Less: Outlay - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Year End Balance - $ 2,000,000$ 2,000,000$ 2,000,000$ 2,000,000$ 2,000,000$ 2,000,000$ 2,000,000$ 2,000,000$ 2,000,000$ Fiscal Year 1 2 3 4 5 6 7 8 9 10
2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2031 2031-2032 2032-2033 2033-2034 2034-2035 Capital Replacement Fund Balances
Carry Forward from Prior Year 0 - $ 1,071,724$ 32,208,550$ 16,578,055$ 52,013 $ 8,906,534$ 3,513,557$ 52,494 $ 19,623,900$ 11,590,980$ Transfer In from Operating Account 0 7,234,846$ 5,312,453$ 4,547,871$ 4,596,685$ 4,638,299$ 3,643,432$ 3,656,010$ 3,646,799$ 1,731,365$ 1,677,237$ 40,684,997$ Interest Earnings on Fund Balance 0 21,434 $ 644,171$ 331,561$ 1,040 $ 178,131$ 70,271$ 1,050$ 392,478$ 231,820$ 1,871,956$ Interest Earnings from Operating Reserve - $ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 40,000$ 320,000$ Bond Issuance - $ 39,192,760$ - $ - $ 14,075,196$ - $ - $ 26,179,504$ - $ - $ Less: Capital Outlay for Projects - $ 6,163,122$ 13,389,822$ 20,862,537$ 21,494,288$ 9,900,014$ 9,254,539$ 7,227,344$ 10,295,947$ 10,196,763$ 6,037,883$ 114,822,258$ Year End Balance -$ 1,071,724$ 32,208,550$ 16,578,055$ 52,013$ 8,906,534$ 3,513,557$ 52,494$ 19,623,900$ 11,590,980$ 7,502,154$ Notes:

1. The current monthly rate per EDU of $5.45 is insufficient to meet operating expenses and debt service requirements. A monthly rate of $9.54 per EDU would be required to breakeven.

5.00% 5.00% 5.00%
30 30 30

3.50% 3.50% 3.50%

0.00% 0.00% 0.00%

6.51% 6.51% 6.51%
$43,550,000 $15,640,000 $29,090,000
Uniform Series Factor0.065051 Uniform Series Factor 0.065051 Uniform Series Factor 0.065051 2,832,990$ 1,017,404 $ 1,892,346 $
BOND PROCEEDS39,192,760$ BOND PROCEEDS 14,075,196$ BOND PROCEEDS26,179,504$ 2 5 8
Assumptions: Criteria:

O&M Inflation Factor = 7.5% 1. Minimal year end balance at 10th year Total CIP Bond Proceeds PayGo Annual Rate Escalation= 2% 2. CIP funded through 31% rates and 69% bonds 114,822,258 $ 79,447,459$ 35,374,799$ Annual EDU Growth Rate= 1% 3. Bonds Issued in Years 2,5 and 8 100.00% 69.19% 30.81% Minimum Debt Service Ratio= 1.25% 4. CIP based on costs and timeline provided by Wallace and adjusted by City Rate Stabilization Fund not required 5. Transfer of $2,000,000 to O&M reserve fund City of Salinas - Sewer Rates/Max Bonding Capacity with minimum 125% coverage (31% PayGo with 69% Bonds) Calendar Years 2025-2034
Totals
Years 1-10
Totals

FIRST ISSUANACE SECOND ISSUANACE THIRD ISSUANACE

AVERAGE COUPON AVERAGE COUPON AVERAGE COUPON

BOND TERM (YEARS) BOND TERM (YEARS) BOND TERM (YEARS)
COST OF ISSUANCE (%) COST OF ISSUANCE (%) COST OF ISSUANCE (%)

BOND PREMIUM BOND PREMIUM BOND PREMIUM

RESERVE FUND RESERVE FUND RESERVE FUND

BOND AMOUNT BOND AMOUNT BOND AMOUNT
CIP Allocation

ANNUAL PAYMENT ANNUAL PAYMENT ANNUAL PAYMENT

ISSUANCE IN STUDY YEAR ISSUANCE IN STUDY YEAR ISSUANCE IN STUDY YEAR

APPENDIX B
City of Salinas
Sewer Rate Study

RATE MODEL

ASSUMPTIONS
The rate model included in Appendix A herein was designed to allow for sufficient sewer rate revenues to pay for operations and maintenance, annual debt service requirements, capital improvements and replacement, as well as fund an operating reserve . The assumptions used in this model include the following:
 Key assumptions related to the rate model are listed below:

The number of customers, and the corresponding EDUs, is provided byM1W.

Positive net operating income after debt service (i.e., net operating income is rate revenue less O&M and debt service)
O&M and capital improvement projects and costs were provided by the City.

Fund $2 million O&M reserve fund
Positive net operating income after debt service in any given year will be transferred to the Capital Replacement Fund
The beginning Capital Replacement Fund balance is $0 (i.e., Capital Replacement Fund consists of net operating income deposited to fund plus interest earnings plus bond proceeds less costs for capital facilities) Capital Replacement Fund expenditures over 10 years will be in accordance with the timeline provided by City
 Key assumptions related to inflation and rate escalation are listed below:

7.5% Estimated Annual O&M Cost Inflation

3.0% Estimated Annual Capital Facilities Cost Inflation

2.0% Estimated Annual Rate Escalation

2.0% Estimated Investment Return on Reserve Balances

1.0% Annual Development Growth: The City and Wallace Group expects a modest increase in the number of EDUs over the next decade as the population grows.
 Key assumptions related to the bonds are listed below:

Bonds to be issued in Years 2, 5, and 8
Bond interest rate is equal to 5.00%
Construction proceeds equal to 90% of the bond issue amount Bond Term of 30 years
Minimum 125% debt service coverage
Please note that allnumbers used in this sewer rate study were either i) provided by the City or their consultants, ii) assumed and agreed upon with the City, or iii) calculated by DTA using data provided and/or agreed to by the City or their consultants.

APPENDIX C
City of Salinas
Sewer Rate Study

HIGH PRIORITY PROJECT

COST TABLES
Table C-1
Sewer Collection System Repair, Rehabilitation and Replacement 0 1 2 3 4 5 6 7 8 9 10
2024-2025 2025-2026 2026 2027 2028-2029 2029-2030 2030-2031 2031-2032 2032-2033 2033-2034 2034-2035 1 Cesar Chavez Park - 300,000 4,164,681 4,289,622 4,418,310 - - - - - - - - - - -
2 Upper Carr Lake Repairs - 1,157,205 - - - - - - - - - 3 Upstream TP2 Diversion - - - 66,837 - - - - - - -
4 Northridge Mall - 300,000 2,453,872 - - - - - - - -
5 East Market and Upstream of Lake Street - - 309,000 1,648,511 - - - - - - - 6 Louise and Van Buren Street Repair - - - - - - - - 365,887 - - 7 West Market at Davis Overcrossing - - - - - - - - - - - 8 Cherokee Drive - - 309,000 2,533,429 - - - - - - -
9 Malarin St and Wilgart Way Repairs - - - - - - - - - - - 10 Romie Lane Repairs and Reconfig Analysis - - - - - - 119,405 - - 134,392 11 King Street Repairs - - - - - 225,102 717,591 - - - - 12 Del Monte and Mae Repairs - - - - - - - - - 654,866 674,512 13 Riker Street Repairs - - - - - - - - - - 15,052
14 West Market Street Repairs - - 863,929 889,847
15 Joohnson Place Repairs - - - - - - - - - - -
16 N Main St Hwy 101 Underpass Bunkder Repair - - - - - - - - - - - 17 Donner Way - - - - 204,496 - - - -
18 San Miguel Ave Repair - - - - - - - - - - -
19 Noice Dr/ Tyler Street - - - - - - - 358,216 5,485,237 - - 20 Natividad Rd - - - - - - - - - - -
CIPs 21 thru 27 - - - - - - - - - -
CCTV Sewers - 1,120,150 1,153,755 1,188,367 1,224,018 1,260,739 1,298,561 1,337,518 1,377,643 1,418,973 1,461,542 CCTV Inspection Program 153,897 158,514 163,269 168,167 173,212 178,409 183,761 189,274 194,952 200,801 CIPP Line Sewers - 2,060,000 2,060,000 2,121,800 2,185,454 2,251,018 2,318,548 2,388,105 2,459,748 2,533,540 2,609,546 Full Replacement Sewers - - - - - - - - - - -
Root Removal - 41,200 41,200 42,436 43,709 45,020 46,371 47,762 49,195 50,671 52,191 Sewer Manhole Replacement - - - - - - - - - - -
Sewer Manhole Lining - - - - - - - - - - -
total 0 5,132,452 10,650,022 12,054,271 8,244,155 3,955,091 4,559,479 4,434,766 9,926,985 5,716,931 6,037,883 Cumulative -$ 5,132,452$ 15,782,474$ 27,836,745$ 36,080,900$ 40,035,991$ 44,595,471$ 49,030,237$ 58,957,222$ 64,674,152$ 70,712,035$ Project
Number
………………………….…………Project.Year………
………………….…….…... Fiscal.Year..Project
Name…………………...…
Table C-2
Sewer Collection System Upsizing
0 1 2 3 4 5 6 7 8 9 10
2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2031 2031-2032 2032-2033 2033-2034 2034-2035 1 San Juan Grade - 309,000 1,257,827 1,295,562 - - - - - - 2 North Davis Road - 257,500 2,548,268 2,624,716 2,703,458 - - - - - 3 West Laurel Drive - - - - - - - - - -
4 Victor Street - - - - - - - - - -
5 Freedom Parkway - - - 237,122 - - - - - -
6 Natividad Creek Park 250,000 1,967,300 - - - - - - - - 7 East Alisal Street - - 265,225 1,695,912 - - - - - -
8 Abbot Street 380,670 - - - - - - - - -
9 South Sanborn Road - - - - - - - 368,962 4,479,832 -
Totals 630,670$ 2,533,800$ 4,071,320$ 5,853,312$ 2,703,458$ -$ -$ 368,962$ 4,479,832$ -$ Cumulative -$ 630,670$ 3,164,470$ 7,235,790$ 13,089,103$ 15,792,560$ 15,792,560$ 15,792,560$ 16,161,523$ 20,641,355$ 20,641,355$ Project
Number
………………………….…………Project.Year………
………………….…….…... Fiscal.Year..Project
Name…………………...…
Table C-3
Sewer Lift Stations
0 1 2 3 4 5 6 7
2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2031 2031-2032 1 Lake Street Lift Station 400,000 - 4,524,765 4,660,508 - - - 2 Santa Rita Lift Station - 206,000 - 2,736,313 - - -
3 Spicer Lift Station - - 212,180 - 3,241,465 - -
4 Mill Lake Lift Station - - - - - 4,463,205 -
5 Carpenter Hall Lift Station - - - - - 231,855 1,430,923 6 De Ls Torre Lift Station - - - - - - 24,315
7 Vista Nueva Lift Station - - - - - - -
8 Harkins Road Lift Stataion - - - - - - -
9 Las Casitas Lift Station - - - - - - -
10 TP 2 Lift Station - - - - - - -
11 Airport Lift Station - - - - - - 1,337,339
total -$ 400,000$ 206,000$ 4,736,945$ 7,396,821$ 3,241,465$ 4,695,060$ 2,792,577$ Cumulative -$ 400,000$ 606,000$ 5,342,945$ 12,739,766$ 15,981,231$ 20,676,291$ 23,468,869$ Project
Number
………………………….…………Project.Year………
………………….…….…... Fiscal.Year..Project
Name…………………...…
Table C -4
Total Costs for High Priority Projects by Year
Description FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 Sewer Collection $5,132,452 $10,650,022 $12,054,271 $8,244,155 $3,955,091 $4,559,479 $4,434,766 $9,926,985 $5,716,931 $6,037,883 Sewer Upsizing $630,670 $2,533,800 $4,071,320 $5,853,312 $2,703,458 $0 $0 $368,962 $4,479,832 $0 Lift Stations $400,000 $206,000 $4,736,945 $7,396,821 $3,241,465 $4,695,060 $2,792,577 $0 $0 $0 Total $6,163,122 $13,389,822 $20,862,536 $21,494,288 $9,900,014 $9,254,539 $7,227,343 $10,295,947 $10,196,763 $6,037,883 Cumulative $6,163,122 $19,552,944 $40,415,481 $61,909,769 $71,809,783 $81,064,322 $88,291,666 $98,587,613 $108,784,376 $114,822,258

APPENDIX D
City of Salinas
Sewer Rate Study

EDU SUMMARY
City Code Description Billing Units Flow per
Unit
EDU per
Billing
Unit
EDUs
001 Business/Government (1-10 employees) 2,217 146 0.77 1,713 002 Business/Government (11-20 employees) 163 292 1.54 252 003 Business/Government (21-30 employees) 61 438 2.32 141 004 Business/Government (31-40 employees) 23 584 3.09 71 005 Business/Government (41-50 employees) 16 730 3.86 62 006 Business/Government (51-60 employees) 20 876 4.63 93 007 Business/Government (61-70 employees) 9 1,022 5.41 49 008 Business/Government (71-80 employees) 7 1,168 6.18 43 009 Business/Government (81-90 employees) 6 1,314 6.95 42 010 Business/Government (91-100 employees) 6 1,460 7.72 46 011 Business/Government (101-110 employees) 1 1,606 8.50 8 012 Business/Government (111-120 employees) 1 1,752 9.27 9 013 Business/Government (121-130 employees) 3 1,898 10.04 30 014 Business/Government (131-140 employees) 2 2,044 10.81 22 015 Business/Government (141-150 employees) 1 2,190 11.59 12 016 Business/Government (151-160 employees) 2 2,336 12.36 25 018 Business/Government (171-180 employees) 1 2,628 13.90 14 019 Business/Government (181-190 employees) 1 2,774 14.68 15 022 Business/Government (210-220 employees) 1 3,212 16.99 17 030 Business/Government (291-300 employees) 2 4,380 23.17 46 045 Business/Government (441-450 employees) 3 6,424 33.99 102 053 Business/Government (521-530 employees) 1 7,738 40.94 41 093 Business/Government (931-939 employees) 1 14,454 76.48 76 102 Residence 23,311 189 1.00 23,311
105 Multi Residence - Apts 17,630 189 1.00 17,630
107 Condominium 2,438 189 1.00 2,438
109 Retirement Complex 136 189 1.00 136
221 Hotel/Motel 1,896 82 0.43 823
231 Supermarket 34 797 4.22 143
241 Medical 323 195 1.03 333
242 Dental 114 269 1.42 162
243 Rest Home/ Convalescent 950 54 0.29 271
244 Surgery Center/ General Hospital 11 320 1.69 19
245 Animal Hospital 6 365 1.93 12
261 Restaurant - 1 Meal 389 7 0.04 14
262 Restaurant - 2 Meals. 4,422 11 0.06 257
263 Restaurant - 3 Meals. 1,761 21 0.11 196
264 Restaurant w/ Bar 737 21 0.11 82
265 Bar 3,372 317 1.68 5,656
266 Night Club 2 950 5.03 10
267 Take-Out Small 180 354 1.87 337
268 Take-Out Medium 39 871 4.61 180
269 Take-Out Large 20 1,588 8.40 168
270 Bakery 54 287 1.52 82
281 Theater 4 471 2.49 10
282 Bowling Center 2 1,433 7.58 15
283 Gym - 500 Members 8 189 1.00 8
285 Gym - 1500 Members 1 567 3.00 3
286 Gym - 2000 Members 1 756 4.00 4
292 School - Pre Grade 6 22,272 2 0.01 236
293 School - Grade 7 -College 18,493 4 0.02 391
294 School - Boarding 2,688 40 0.21 569
301 Photo Developer 11 189 1.00 11
311 Laboratory - 10 employees 21 189 1.00 21
331 Garage Repair 134 140 0.74 99
332 Garage 11-20 employees 3 280 1.48 4
341 Paint Shop - 10 employees 61 189 1.00 61
342 Paint Shop - 20 employees 5 378 2.00 10
351 Industrial Laundry 2 76,885 406.80 814
352 Commercial Laundry 1 1,845 9.76 10
353 Dry Cleaner 5 483 2.56 13
366 Car Wash 17 2,424 12.83 218
367 Truck/ Bus Wash 4 1,538 8.14 33
401 Special User 23 9,611 50.85 1,170
403 Chemical Pesticides 1 2,768 14.65 15
405 Water Softener 1 18,299 96.82 97
406 Food Processor 6 9,611 50.85 305
407 Rec/Sports Facility 4 2,307 12.21 49
408 Inedible Renderer 1 49,206 260.35 260
410 Groundwater Discharger 2 4,357 23.05 46
Totals 60,558

APPENDIX E
City of Salinas
Sewer Rate Study

TEN-YEAR RATE SUMMARY

BY LAND USE
Cure nt Montly
S e we r Ra te s FY 2025-
2026
FY 2026-
2027
FY 2027-
2028
FY 2028-
2029
FY 2029-
2030
FY 2030-
2031
FY 2031 -
2032
FY 2032-
2033
FY 2033-
2034
FY 2034-
2035
001 Business/Government Location/Each Business ($ every 1 0 employees) $4.21 $1 2.63 $1 2.88 $1 3.1 4 $1 3.40 $1 3.67 $1 3.94 $1 4.22 $1 4.51 $1 4.80 $1 5.09 1 02 Residence Each Living Unit $5.45 $1 6.35 $1 6.68 $1 7.01 $1 7.35 $1 7.70 $1 8.05 $1 8.41 $1 8.78 $1 9.1 6 $1 9.54 1 05 Multi Residence - Apts Each Living Unit $5.45 $1 6.35 $1 6.68 $1 7.01 $1 7.35 $1 7.70 $1 8.05 $1 8.41 $1 8.78 $1 9.1 6 $1 9.54 1 07 Condominium Each Living Unit $5.45 $1 6.35 $1 6.68 $1 7.01 $1 7.35 $1 7.70 $1 8.05 $1 8.41 $1 8.78 $1 9.1 6 $1 9.54 1 09 Retirement Complex Each Living Unit $5.45 $1 6.35 $1 6.68 $1 7.01 $1 7.35 $1 7.70 $1 8.05 $1 8.41 $1 8.78 $1 9.1 6 $1 9.54 221 Hotel/Motel Each Room $2.36 $7.09 $7.24 $7.38 $7.53 $7.68 $7.83 $7.99 $8.1 5 $8.31 $8.48 222 Bed & Breakfast Each Room $1 .56 $4.73 $4.82 $4.92 $5.02 $5.1 2 $5.22 $5.33 $5.43 $5.54 $5.65 231 Supermarket Location $22.98 $68.95 $70.33 $71 .73 $73.1 7 $74.63 $76.1 2 $77.65 $79.20 $80.78 $82.40 241 Medical Each Licensed Physician $5.62 $1 6.87 $1 7.21 $1 7.55 $1 7.90 $1 8.26 $1 8.62 $1 9.00 $1 9.38 $1 9.76 $20.1 6 242 Dental Each Licensed Dentist $7.76 $23.27 $23.74 $24.21 $24.69 $25.1 9 $25.69 $26.21 $26.73 $27.27 $27.81 243 Rest Home/ Convalescent Each Bed of Licensed Capacity $1 .56 $4.67 $4.76 $4.86 $4.96 $5.06 $5.1 6 $5.26 $5.37 $5.47 $5.58 244 Surgery Center/ General
Hospital
Each Bed of Licensed Capacity $9.23 $27.68 $28.24 $28.80 $29.38 $29.96 $30.56 $31 .1 8 $31 .80 $32.43 $33.08 245 Animal Hospital Location/Each Licensed Business $1 0.53 $31 .58 $32.21 $32.85 $33.51 $34.1 8 $34.86 $35.56 $36.27 $37.00 $37.74 261 Restaurant - 1 Meal Each Restaurant Seat $0.20 $0.61 $0.62 $0.63 $0.64 $0.66 $0.67 $0.68 $0.70 $0.71 $0.72 262 Restaurant - 2 Meals Each Restaurant Seat $0.32 $0.95 $0.97 $0.99 $1 .01 $1 .03 $1 .05 $1 .07 $1 .09 $1 .1 1 $1 .1 4 263 Restaurant - 3 Meals Each Restaurant Seat $0.61 $1 .82 $1 .85 $1 .89 $1 .93 $1 .97 $2.01 $2.05 $2.09 $2.1 3 $2.1 7 264 Restaurant w/ Bar Each Restaurant Seat $0.61 $1 .82 $1 .85 $1 .89 $1 .93 $1 .97 $2.01 $2.05 $2.09 $2.1 3 $2.1 7 265 Bar Location/Each Business $9.1 4 $27.42 $27.97 $28.53 $29.1 0 $29.68 $30.28 $30.88 $31 .50 $32.1 3 $32.77 266 Night Club Location/Each Business $27.39 $82.1 8 $83.83 $85.50 $87.21 $88.96 $90.74 $92.55 $94.40 $96.29 $98.22 267 Take- Out Small 1 Cash Register or Checkout Line $1 0.21 $30.62 $31 .24 $31 .86 $32.50 $33.1 5 $33.81 $34.49 $35.1 8 $35.88 $36.60 268 Take- Out Medium 2 or 3 Cash Registers or Checkout Lines $25.1 2 $75.35 $76.86 $78.39 $79.96 $81 .56 $83.1 9 $84.85 $86.55 $88.28 $90.05 269 Take- Out Large 4 or More Cash Registers or Checkout Lines $45.79 $1 37.37 $1 40.1 2 $1 42.92 $1 45.78 $1 48.70 $1 51 .67 $1 54.71 $1 57.80 $1 60.96 $1 64.1 8 270 Bakery Location/Each Business $8.28 $24.83 $25.32 $25.83 $26.35 $26.87 $27.41 $27.96 $28.52 $29.09 $29.67 281 Theater Per Screen @ Each Location $1 3.58 $40.75 $41 .56 $42.39 $43.24 $44.1 0 $44.99 $45.89 $46.80 $47.74 $48.69 282 Bowling Center Location/Each Business $41 .32 $1 23.97 $1 26.45 $1 28.97 $1 31 .55 $1 34.1 8 $1 36.87 $1 39.61 $1 42.40 $1 45.25 $1 48.1 5 283 Gym - 500 Members $ for every 500 members $5.45 $1 6.35 $1 6.68 $1 7.01 $1 7.35 $1 7.70 $1 8.05 $1 8.41 $1 8.78 $1 9.1 6 $1 9.54 292 School - Pre Grade 6 School Population $0.06 $0.1 7 $0.1 8 $0.1 8 $0.1 8 $0.1 9 $0.1 9 $0.1 9 $0.20 $0.20 $0.21 293 School - Grade 7 - College School Population $0.1 2 $0.35 $0.35 $0.36 $0.37 $0.37 $0.38 $0.39 $0.40 $0.41 $0.41 294 School - Boarding School Population $1 .1 5 $3.46 $3.53 $3.60 $3.67 $3.75 $3.82 $3.90 $3.97 $4.05 $4.1 4 295 Instructional Facility Location/Each Business $5.45 $1 6.35 $1 6.68 $1 7.01 $1 7.35 $1 7.70 $1 8.05 $1 8.41 $1 8.78 $1 9.1 6 $1 9.54 296 Church- Small (1 - 1 00 Members)Per 1 00 members $5.45 $1 6.35 $1 6.68 $1 7.01 $1 7.35 $1 7.70 $1 8.05 $1 8.41 $1 8.78 $1 9.1 6 $1 9.54 297 Church- Large (>1 00 Members) Per 1 00 members $1 0.90 $32.70 $33.35 $34.02 $34.70 $35.40 $36.1 0 $36.83 $37.56 $38.31 $39.08 301 Photo Developer / Printer $ for every 1 0 employees $5.45 $1 6.35 $1 6.68 $1 7.01 $1 7.35 $1 7.70 $1 8.05 $1 8.41 $1 8.78 $1 9.1 6 $1 9.54 31 1 Laboratory $ for every 1 0 employees $5.45 $1 6.35 $1 6.68 $1 7.01 $1 7.35 $1 7.70 $1 8.05 $1 8.41 $1 8.78 $1 9.1 6 $1 9.54 331 Garage Repair $ for every 1 0 employees $5.45 $1 2.1 1 $1 2.35 $1 2.60 $1 2.85 $1 3.1 1 $1 3.37 $1 3.64 $1 3.91 $1 4.1 9 $1 4.47 341 Paint Shop $ for every 1 0 employees $5.45 $1 6.35 $1 6.68 $1 7.01 $1 7.35 $1 7.70 $1 8.05 $1 8.41 $1 8.78 $1 9.1 6 $1 9.54 351 Industrial Laundry Per 1 00 GPD of water usage $2,21 7.06 $6,651 .1 6 $6,784.1 9 $6,91 9.87 $7,058.27 $7,1 99.43 $7,343.42 $7,490.29 $7,640.1 0 $7,792.90 $7,948.76 352 Commercial Laundry Per 1 00 GPD of water usage $53.21 $1 59.61 $1 62.80 $1 66.06 $1 69.38 $1 72.76 $1 76.22 $1 79.74 $1 83.34 $1 87.01 $1 90.75 353 Dry Cleaner Location/Each Business $1 3.93 $41 .78 $42.62 $43.47 $44.34 $45.23 $46.1 3 $47.05 $48.00 $48.96 $49.93 354 Laundromat Each Washing Machine $3.66 $1 0.99 $1 1 .21 $1 1 .43 $1 1 .66 $1 1 .89 $1 2.1 3 $1 2.37 $1 2.62 $1 2.87 $1 3.1 3 366 Car Wash Per 1 00 GPD of water usage $69.90 $209.70 $21 3.89 $21 8.1 7 $222.53 $226.98 $231 .52 $236.1 5 $240.87 $245.69 $250.61 367 Truck/ Bus Wash Per 1 00 GPD of water usage $44.34 $1 33.05 $1 35.71 $1 38.42 $1 41 .1 9 $1 44.02 $1 46.90 $1 49.84 $1 52.83 $1 55.89 $1 59.01 401 Special User Per 1 00 GPD of water usage $277.1 3 $831 .43 $848.06 $865.02 $882.32 $899.96 $91 7.96 $936.32 $955.05 $974.1 5 $993.63 403 Chemical Pesticides Per 1 00 GPD of water usage $79.81 $239.45 $244.24 $249.1 3 $254.1 1 $259.1 9 $264.38 $269.66 $275.06 $280.56 $286.1 7 405 Water Softener Per 1 00 GPD of water usage $527.66 $1 ,583.01 $1 ,61 4.67 $1 ,646.96 $1 ,679.90 $1 ,71 3.50 $1 ,747.77 $1 ,782.72 $1 ,81 8.38 $1 ,854.75 $1 ,891 .84 406 Food Processor Per 1 00 GPD of water usage $277.1 3 $831 .43 $848.06 $865.02 $882.32 $899.96 $91 7.96 $936.32 $955.05 $974.1 5 $993.63 407 Rec/Sports Facility Per 1 00 GPD of water usage $66.51 $1 99.57 $203.57 $207.64 $21 1 .79 $21 6.03 $220.35 $224.75 $229.25 $233.83 $238.51 408 Inedible Renderer Per 1 00 GPD of water usage $1 ,41 8.92 $4,256.71 $4,341 .84 $4,428.68 $4,51 7.25 $4,607.60 $4,699.75 $4,793.75 $4,889.62 $4,987.41 $5,087.1 6 41 0 Groundwater Discharger Per 1 00 GPD of water usage $1 25.63 $376.92 $384.45 $392.1 4 $399.99 $407.99 $41 6.1 4 $424.47 $432.96 $441 .62 $450.45 City
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Salinas City CouncilApril 22, 2025

Salinas City Council
April 22, 2025