Clean. Reliable. Essential. Every day.
sonomawater.org
FY 2022-2023
Proposed Budget and Rates
Water Transmission System
Lynne Rosselli
ADMINISTRATIVE SERVICES
DIVISION MANAGER
[email protected]
Jake Spaulding
FINANCE MANAGER
[email protected]
1 2
Transparent and collaborative process to bring
rates to Board of Directors by end of April
Sonoma
Water Board
of Directors
(April)
Water
Advisory
Committee
(April)
Water
Contractor
Boards &
Councils
(March)
Technical
Advisory
Committee
(Jan-March)
sonomawater.org
4 Budget includes multiple water transmission
system activities and funds
• Operations and Maintenance
• Four Subfunds
• Five Capital Funds
• Debt Service Funds
5 Ely Booster Pump Station Flood Mitigation
Mark West Creek Crossing
Russian River Crossing
Santa Rosa Creek Crossing
Seismic Retrofit of Storage Tanks
Bennett Valley Fault Crossing
$3.2 million budgeted for hazard mitigation
projects to reduce risks
6 $10.1 million budgeted for other capital projects
to increase resiliency
Kawana-Ralphine SBS Pipeline
Sebastopol/Occidental Wells - Rehab & ASR
Todd Road Well -
Recirculation/Automation/Disposal
Warm Springs Dam Hydroturbine Retrofit
Total FY22-23 Capital Budget
including Hazard Mitigation Projects:
$13.3M
7 $38.7 million budgeted for operations and maintenance to protect, improve and maintain system reliability
Projects
Cathodic Protection - Santa Rosa Aqueduct and Russian River-Cotati Intertie Collector Well & Well Field Rehabilitations
Emergency Inventory Procurement
Tank Recoats & Tank Maintenance Program
Studies
Regional Water Supply Resiliency Study
Collector Well, AQs, and Tank Seismic Mitigation Study
Watershed and Riverbank Filtration Water Quality Studies Wohler & Chlorine Storage Facility Assessment
8 $13.9 million for Biological Opinion, water
supply planning and water conservation
Expenditures compared to FY 21-22
9 FY21-22 FY22-23
Budget
(in Millions)
Budget
(in Millions)
Change
(in Millions)
Operations and Maintenance $30.54 $38.68 $8.14
Capital Projects $9.67 $13.25 $3.58
BO Compliance, Water Supply
Planning, Water Conservation $11.05 $13.89 $2.84
Debt Service $4.85 $6.01 $1.16
Totals $56.11 $71.83 $15.72
Grants, Use of Fund Balance,
and Bond Proceeds $8.49 $15.31 $6.82
10 Grants, Bond
Proceeds, and Use
of Fund Balance
$15.31 Million
Operations
and
Maintenance
$38.68 Million,
54%
Capital Projects
$13.25 Million,
19%
BO
Compliance,
Water Supply
Planning, Water
Conservation
$13.89 Million,
19%
Debt Service
$6.01 Million,
8%
FY 22-23 Budgeted Expenditures
Example of how rates are
calculated
Cost of Operations
and Maintenance
Water Sold =
Cost of Water
(Dollars per acre-foot)
Water Sold = Lesser of:
Average of last 3
years annual
water deliveries
Last 12 months
of actual water
deliveries
or
45,788 AF
45,748 AF
$48,539,000 $1,061/ Acre
Foot
45,748 AF
11 sonomawater.org
12 • Reduced rate increase from 9.99% to 6.84% by decreasing O&M costs, increased use of fund balance, sale of revenue bonds and offsetting grant revenue
• Water contractors elected to make the following changes to further reduce rates:
– Santa Rosa AQ -- lowered Aqueduct Capital Charge to reduce rate increase to 6.06%
– Petaluma AQ -- lowered Aqueduct Capital Charge to further reduce rate increase to 6.16%
– Sonoma Aqueduct customers – kept Aqueduct Capital Charge at $38/AF resulting in a rate increase of 6.52%
Total Cost per gallon is $0.003
Budget and rate reduced by working
with contractors
sonomawater.org
Proposed Rates for FY 22-23
13 Charge / Aqueduct Santa Rosa Petaluma Sonoma
Deliveries (Acre-Feet) 45,748
O&M $816.03 $816.03 $816.03
Water Management Planning $0.20 $0.20 $0.20
Watershed Planning & Restoration $32.70 $32.70 $32.70
Recycled Water and Local Supply $0.50 $0.50 $0.50
Water Conservation $47.50 $47.50 $47.50
Total O&M $896.93 $896.93 $896.93
Storage & Common Bond/Loan Charges $153.11 $153.11 $153.11 Sonoma Aqueduct Bond/Loan Charge $131.87
Prime Contractors $1,050.04 $1,050.04 $1,181.90
Discretionary Charges
Capital Charges - to build fund balance
for future projects $11.00 $12.00 $38.00
Prime Contractors $11.00 $12.00 $38.00
Total Prime Contractors $1,061.04 $1,062.04 $1,219.90
Total Overall Increase: 6.06% 6.16% 6.52%
2022 wholesale water rates per Acre-Foot
14 $-
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
$1,100
$1,200
$1,300
$1,400
$1,500
$1,600
$1,700
$1,800
$1,900
$2,000
Sonoma County
Water Agency
Zone 7 Water
Agency
(Pleasanton,
Livermore)
San Francisco
Public Utilities
Commission
Santa Clara Valley
Water District
Contra Costa Water
District
sonomawater.org
• Unanimously Recommended by Technical
Advisory Committee – March 7
• Water Advisory Committee Vote – April 4
• Adoption by Sonoma Water’s Board – April
19 Next steps
15 sonomawater.org
16 • Water charges increasing 3% on 7/1/2022
– Per rate schedule approved in 2021
• Pass through of wholesale rate to customers removed
in 2021
– No impact to customer or current rate schedule
• Santa Rosa Water Financial Model
– Included 6% annual wholesale rate increase in rate
development
No Customer or Rate Impacts
sonomawater.org
Lynne Rosselli
Administrative Services Division Manager
[email protected]
Jake Spaulding
Finance Manager
[email protected]
17