CITY OF SEBASTOPOL CITY COUNCIL
AGENDA ITEM REPORT FOR MEETING OF: October 7, 2025
=========================================================================================== To: Honorable Mayor and City Councilmembers
From: Erik Billing – Public Works Operations Supervisor Toni Bertolero – Public Works Engineering
Ana Kwong – Administrative Services Director
Subject: FY24-25 Quarter 4 Financial Update for Enterprise Funds =========================================================================================== RECOMMENDATION:
Staff recommends the Sebastopol City Council receive this preliminary FY24-25 financial information for the enterprise funds.
EXECUTIVE SUMMARY:
Attached are the preliminary year end of fiscal year 24-25 financial results for the Enterprise Funds (Water and Wastewater). This report on the utility financial positions is released when the City closes it’s accounting books for the year end prior to the final audit. As of June 30, 2025, preliminary financial data indicates that both the Water Fund and Wastewater Fund have completed their revenue billing for the fiscal year. • The Water Fund has finalized its revenue collection, while expenditures have reached 92.6% of the annual total.
• The Wastewater Fund has also completed its revenue billing, with expenses currently at 96% of the yearly total.
Overall, these figures point to financial performance across both utility funds, with revenue targets exceeded the budgeted amount and expenditures progressing under with expected year-end levels. This positions the city’s utility operations on solid footing as the fiscal year concludes.
BACKGROUND:
The attached materials provide a comprehensive summary of the financial performance of the City’s Water and Wastewater enterprise funds as of the FY24-25 year end.
These enterprise funds have historically faced significant financialstrain due to years of underinvestment. However, the implementation of new utility rates effective July 1, 2024 has begun to reverse this trend, contributing to a more stable financial outlook. These funds are responsible for sustaining all aspects of utility service delivery, including operations, maintenance, customer billing and collections, administrative support, financing activities, and debt service obligations.
Revenue generation for both the Water and Wastewater funds has been completed for the fiscal year. The “Preliminary Actual” columns in the financial reports reflect usage-based billing through June 2025. Notably, the City has observed a marked increase in revenue compared to the prior fiscal year, largely attributable to the new rate structure and consumption patterns.
As of the fourth quarter, both the Water and Wastewater Funds are trending slightly below full-year expenditure levels:
Agenda Item Number 16 Agenda Item Number 16
City Council Meeting Packet of October 7, 2025
• Water Fund expenditures are at 92.6%, reflecting a measured pace of spending. This may be attributed to departmental transitions that temporarily slowed activity in certain categories. • Wastewater Fund expenditures are at 96%, showing a similar pattern, likely influenced by ongoing adjustments within the department as it acclimates to new leadership and operational priorities.
While both funds are belowthe 100% threshold, thistrend suggeststhatsome planned spending has been deferred or delayed, potentially due to staffing changes or timing shifts in project execution within the Public Works Department.
Importantly, a solid revenue performance paired with moderated expenditures aligns with the City’s broader strategy to restore fiscal health to its utility operations. As outlined in recent council communications and staff reports, the rate adjustments implemented in July 2024 were designed to stabilize operating budgets, address deferred infrastructure needs, and begin rebuilding reserve levels for future capital projects needs.
With these improvements, the enterprise funds are now better positioned to support long-term sustainability where planned projects can be implemented. The current financial development reflects a positive shift from prior years marked by underfunding and operational constraints.
STAFF ANALYSIS:
Water:
The Water Fund concluded the fiscal year with stable financial performance, marked by full revenue realization and moderated expenditure management. Total revenues reached $3,385,395, slightly exceeding the adjusted budget and achieving 100.4% of the projected target. On the expenditure side, actualspending totaled $2,598,677, coming in at 92.6% of the adjusted budget—indicating cost control and operational efficiency.
Revenue performance was driven by the July 2024 rate adjustments. Residential usage charges led the way at $1,782,411, outperforming expectations by 5.4%, while commercial usage charges came in just below target at $1,429,003. Water tower charges contributed $45,047. Additional revenue sources also performed well: penalties generated $22,067, achieving 147.1% of the estimate, and miscellaneousincome totaled $45,965, reaching 106.9% of the target. While a few minor categories underperformed such as interest income and new service fee, the overall revenue outlook remains solid and positions the fund favorably for the upcoming fiscal cycle.
On the expenditure side, total operating costs amounted to $2,598,677, or 92.6% of the adjusted budget. Most categories aligned closely with expectations, including salaries, benefits, supplies, and utilities. Notable variances included underspending in contracted services (55.1%) and capital outlay (0%), suggesting deferred activities due to unexpected transition in the department. Debtservice payments exceeded projections(144.8%), due to planned early debt retirement. Despite these variances,spending remained controlled and responsive to operational needs. 2024-25
Adjusted
Budget
Preliminary
Actual
6/30/25
$ Actual from
Budget
Actual As %
of Budget
Revenues $ 3,372,855 $ 3,385,395 $ 12,540 100.4%
Expenditures 2,805,712 $ $ 2,598,677 $ (207,035) 92.6%
Net Results $ 567,143 $ 786,717
Agenda Item Number 16 Agenda Item Number 16
City Council Meeting Packet of October 7, 2025
Wastewater:
The Wastewater Fund closed the fiscal year with solid revenue performance, achieving 101.0% of the adjusted budget with total operating revenue reaching $4,706,698. Overall, the Wastewater Fund’s revenue performance reflects a successful recovery following the rate adjustments implemented in July 2024. Core usage charges— particularly residential—exceeded expectations, and supplemental revenue from penalties and miscellaneous sources provided additional support. While some minor categories underperformed, the fund’s total revenue outcome signals a stable financial position heading into the next fiscal year.
The Wastewater Fund concluded the fiscal year with total operating expenditures of $4,014,912, representing 96.0% of the adjusted budget. While most core spending categories tracked close to expectations such as subregional cost, the overall expenditure level was slightly below budget, largely due to timing delays and transitional adjustments within the department. The slightly lower-than-budgeted expenditure level reflects a combination of delayed spending and operational adjustments asthe department navigated leadership and staffing transitions. Despite some variances, the fund issteadily progressing toward financial recovery and met the essential obligations.
2024-25
Adjusted
Budget
Preliminary
Actual
6/30/25
$ Actual from
Budget
Actual As %
of Budget
Revenues $ 4,659,752 $ 4,706,698 $ 46,946 101.0%
Expenditures 4,183,689 $ $ 4,014,912 $ (168,777) 96.0%
Net Results $ 476,063 $ 691,785
Alignment of Billing Cycles with Rate Changes
Previously, when rate increases took effect in July, which falls mid-way through the bi-monthly billing cycle, bills included a prorated mix of old and new rates. This often led to confusion, as usage was split between months with different rates and calculated proportionally. For example, a 25,000-gallon usage might be divided between June and July and billed at two separate rates. While accurate, this method was difficult for customers to interpret.
To simplify billing and improve transparency, staff has recalibrated the cycle so that July billing covered only June, and September billing coversJuly and August, fully aligning with the newfiscal year and rate changes. This approach eliminates the need to display both old and new rates on the same statement moving forward.
Additionally, in response to community requests, the tiered water rate structure is now clearly displayed on billing statements. This enhancement supports transparency and helps residents better understand how their usage impacts charges.
BUDGET COMMITTEE REVIEW
This item has been reviewed by the Budget Committee at its meeting on September 15, 2025.
CITY COUNCIL GOALS/PRIORITIES/AND OR GENERAL PLAN CONSISTENCY:
Goal 5 – Long Term Financial Sustainability
Achieving Greater Fiscal Resilience and Long Term Fiscal Sustainability Agenda Item Number 16 Agenda Item Number 16
City Council Meeting Packet of October 7, 2025
Action Plan 2 – Quarterly Financial Report
Enterprise Fund: A quarterly update is an essential tool for monitoring and managing the financial health of an organization. It provides a snapshot of the financial performance over the past three months, allowing City Council to assess progress, identify trends, and make informed decisions.
FISCAL IMPACT:
There is no fiscal impact in receiving this informational financial update.
PUBLIC COMMENT:
As of the writing of this staff report, the City has not received any public comment on this item. However, if staff receives public comment from interested parties following the publication and distribution of this staff report,such comments will be provided to the City Council as supplemental materials before or at the meeting.
COMMUNITY OUTREACH:
This item has been noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to the scheduled meeting date.
RESTATED RECOMMENDATION:
Staff recommends the Sebastopol City Council receive this preliminary FY24-25 financial information for the enterprise funds.
OPTIONS:
There are no options to consider.
ATTACHMENTS:
Preliminary Financial Reports
Powerpoint Presentation
How to Read Your Bi-monthly Water Bill
Monitoring Your Own Water Usage – EyeOnWater App Instruction APPROVALS:
Department Head Approval: Approval Date: __9/8/25____
CEQA Determination (Planning): Approval Date: ___N/A_______ The proposed action is / is not exempt from the requirements of the California Environmental Quality Act (CEQA) Administrative Services/Financial Approval: Approval Date: ___9/8/25___ Costs authorized in City Approved Budget: ☐ Yes ☐ No N/A Account Code (f applicable) ___________________________ City Attorney Approval: Approval Date: ____9/29/25_______ City Manager Approval: Approval Date: ____9/29/25__________ Agenda Item Number 16 Agenda Item Number 16
City Council Meeting Packet of October 7, 2025
Description
2023-24
Actual
2024-25
Adopted
Budget
2024-25
Adjusted
Budget
Estimated
Year-end
Projection
Preliminary
Actual
6/30/25
% of
Adjusted
Budget
OPERATING REVENUE
Usage Charges - Residential 1,343,048 3,189,700 1,690,541 1,690,500 1,782,411 105.4% Usage Charges - Commerical 895,366 -0 1,446,659 1,446,700 1,429,003 98.8% Usage Charges - Water Tower -0 -0 52,500 52,000 45,047 85.8% Interest Income 82,780 75,000 75,000 75,000 50,702 67.6% Construction Hydrant 500 2,160 2,160 -0 -0 0.0%
Backflow Inspections -0 650 650 -0 -0 0.0%
New Service Fee 8,700 36,600 36,600 10,000 10,200 27.9% Water Meter Sales 190 8,600 8,600 -0 -0 0.0%
Penalties 21,591 15,000 15,000 20,000 22,067 147.1%
Other Charges 279 2,145 2,145 -0 -0 0.0%
Insurance Claims 515 -0 -0 -0 -0 0.0%
Miscellaneous Income 155,392 43,000 43,000 44,000 45,965 106.9% TOTAL REVENUE 2,508,362 3,372,855 3,372,855 3,338,200 3,385,395 100.4%
OPERATING EXPENDITURE
Salaries & Wages 319,666 357,977 374,777 354,870 350,341 93.5% Benefits 158,712 223,277 223,966 200,870 206,787 92.3%
Contracted Services 338,990 255,820 255,820 261,320 159,241 62.2% Services & Supplies 161,691 225,550 225,550 228,050 195,954 86.9% Conference & Training Expense 2,865 5,000 5,000 5,000 4,439 88.8% Utilities 203,566 254,600 254,600 312,000 235,947 92.7% Allocated Insurance 90,730 79,530 79,530 79,530 81,510 102.5% Capital Outlay - 27,750 27,750 27,750 - 0.0%
Debt Service Payments 380,175 318,656 385,856 385,856 461,365 119.6% Cost Allocation Plan 1,261,494 852,863 852,863 852,863 852,863 100.0% Transfers Out 940,341 120,000 120,000 21,530 50,230 41.9% TOTAL EXPENDITURES 3,858,230 2,721,023 2,805,712 2,729,639 2,598,677 92.6% Net Surplus/(Deficit) (1,349,868) 651,832 567,143 608,561 786,717
WATER OPERATING FUND
FY24-25 QUARTER 4 REPORTING
Agenda Item Number 16 Agenda Item Number 16
City Council Meeting Packet of October 7, 2025
Description
2023-24
Actual
2024-25
Adopted
Budget
2024-25
Adjusted
Budget
Estimated
Year-end
Projection
Preliminary
Actual
6/30/25
% of
Adjusted
Budget
Salaries & Wages
4010 - Salaries - Full Time 280,059 327,277 334,022 310,380 309,945 -7.2% 4012 - Overtime 21,691 21,000 21,000 23,340 21,733 3.5% 4013 - Standby/Shift 11,165 9,700 11,015 13,500 14,914 35.4% 4090 - Vacancy Savings - - - - - 0.0%
4023 - One Time Payment 6,750 - 8,740 7,650 7,650 -12.5% 4990 - PW/Staff Time Project Reimb - - - - (3,900) 0.0% Total Salaries & Wages 319,666 357,977 374,777 354,870 350,341 -6.5% Benefits
4101 - Health in Lieu 1,588 - - - - 0.0%
4102 - Uniform Allowance 2,750 3,500 3,500 2,550 2,550 -27.1% 4105 - Medicare & Fica 4,724 4,746 4,746 5,280 5,318 12.0% 4110 - CalPERS Employer Rate 62,681 32,099 32,789 29,000 30,679 -6.4% 4111 - CalPERS UAL Cost - 60,770 60,770 60,825 60,746 0.0% 4130 - Health Insurance 75,118 106,027 106,027 91,000 94,970 -10.4% 4150 - Dental Insurance 9,258 10,840 10,840 9,375 9,740 -10.1% 4151 - Vision Insurance 980 1,136 1,136 1,050 1,026 -9.7% 4181 - Long Term Disability Insurance 918 2,684 2,684 1,025 999 -62.8% 4182 - Short Term Disability Insurance 364 431 431 395 414 -4.0% 4183 - EAP (Employee Asst Prog) 98 315 315 110 103 -67.2% 4184 - Life Insurance 233 729 729 260 242 -66.8%
Total Benefits 158,712 223,277 223,967 200,870 206,787 -7.7% Contracted Services
4210 - Professional Contract Services 326,001 243,320 243,320 243,320 140,875 -42.1% 4211 - Banking Fees 12,989 12,500 12,500 18,000 18,366 46.9% Total Contracted Services 338,990 255,820 255,820 261,320 159,241 -37.8% Services & Supplies
4301 - Bad Debt Expense 13,205 10,000 10,000 2,500 2,110 -78.9% 4310 - Office Supplies - 1,500 1,500 1,500 - -100.0%
4330 - Misc Supplies & Services 135,827 180,650 180,650 190,650 171,106 -5.3% 4332 - Janitorial & Safety Supplies 15 1,200 1,200 1,200 - -100.0% 4361 - Meter Replacement Program 2,516 7,500 7,500 7,500 5,992 -20.1% 4365 - Fire Hydrant Replacement Program 9,445 9,500 9,500 9,500 13,203 39.0% 4366 - Backflow Prevention Program 634 5,200 5,200 5,200 222 -95.7% 4380 - Vehicle Maintenance 48 10,000 10,000 10,000 3,321 -66.8% Total Services & Supplies 161,691 225,550 225,550 228,050 195,954 -13.1% Conference & Training Expense
4510 - Conference & Training 1,327 3,000 3,000 3,000 3,051 1.7% 4515 - Meetings & Travel 1,538 2,000 2,000 2,000 1,388 -30.6% Total Conference & Training Expense 2,865 5,000 5,000 5,000 4,439 -11.2% Utilities
4710 - Utilities - Gas & Electric 197,837 247,250 247,250 305,000 230,402 -6.8% 4750 - Telecommunications 5,729 7,350 7,350 7,000 5,544 -24.6% Total Utilities 203,566 254,600 254,600 312,000 235,947 -7.3% Allocated Insurance | Others
4996 - Allocated Liability Insurance 59,559 51,825 51,825 51,825 53,266 2.8% 4997 - Allocated Wrkrs Comp Insurance 31,171 27,705 27,705 27,705 28,244 1.9% 4998 - Cost Allocation Plan (CAP) 1,261,493 852,863 852,863 852,863 852,863 0.0% 4999 - Transfers Out 940,341 120,000 120,000 21,530 50,230 -58.1% 5100 - Capital Outlay 27,750 27,750 27,750 - -100.0%
Total Allocated Insurance | Others 2,292,564 1,080,143 1,080,143 981,673 984,603 -8.8% Detail - Water Operation Fund - 500
FY24-25 Q4 Expenditures
Agenda Item Number 16 Agenda Item Number 16
City Council Meeting Packet of October 7, 2025
Description
2023-24
Actual
2024-25
Adopted
Budget
2024-25
Adjusted
Budget
Estimated
Year-end
Projection
Preliminary
Actual
6/30/25
% of
Adjusted
Budget
Detail - Water Operation Fund - 500
FY24-25 Q4 Expenditures
Debt Service
6100 - Principal 323,576 266,477 333,677 331,001 409,137 22.6% 6200 - Interest 56,599 52,179 52,179 52,227 52,229 0.1% Total Debt Service 380,175 318,656 385,856 383,228 461,365 19.6% TOTAL 3,858,228 2,721,023 2,805,713 2,727,011 2,598,677 -7.4% Agenda Item Number 16 Agenda Item Number 16
City Council Meeting Packet of October 7, 2025
Description
2023-24
Actual
2024-25
Adopted
Budget
2024-25
Adjusted
Budget
Estimated
Year-end
Projection
Preliminary
Actual
6/30/25
% of
Adjusted
Budget
OPERATING REVENUE
Service Charge - Residential 2,813,939 4,647,523 2,277,323 2,277,286 2,378,207 104.4% Service Charge - Commercial -0 -0 2,370,200 2,370,237 2,295,499 96.8% Interest Income 20,194 -0 -0 20,000 12,682 0.0%
Penalties 15,153 2,500 2,500 20,000 20,310 812.4%
Insurance Claims -0 8,729 8,729 -0 -0 0.0%
Miscellaneous Income 32,552 1,000 1,000 -0 -0 0.0%
Transfers In -0 -0 -0 -0 -0 0.0%
TOTAL REVENUE 2,881,838 4,659,752 4,659,752 4,687,523 4,706,698 101.0%
OPERATING EXPENDITURE
Salaries & Wages 282,963 306,893 322,383 293,650 296,793 92.1% Benefits 139,103 194,998 195,644 175,140 178,758 91.4%
Contracted Services 84,665 105,550 105,550 123,925 12,829 12.2% Subregional Cost 1,952,842 2,118,435 2,118,435 2,118,435 2,118,436 100.0% Services & Supplies 60,825 118,200 118,200 106,700 97,634 82.6% Conference & Training Expense 8,458 8,000 8,000 8,000 3,175 39.7% Utilities 63,567 81,352 81,352 59,400 68,698 84.4%
Allocated Insurance 68,625 55,735 55,735 55,735 57,066 102.4% Debt Service Payments 181,237 178,656 237,456 237,456 240,039 101.1% Cost Allocation Plan 1,041,462 908,934 908,934 908,934 908,934 100.0% Transfers Out 800,532 32,000 32,000 32,606 32,551 101.7% TOTAL EXPENDITURES 4,684,278 4,108,753 4,183,689 4,119,981 4,014,912 96.0% Net Surplus/(Deficit) (1,802,440) 550,999 476,063 567,542 691,785
WASTEWATER OPERATING FUND
FY24-25 QUARTER 4 REPORTING
Agenda Item Number 16 Agenda Item Number 16
City Council Meeting Packet of October 7, 2025
Description
2023-24
Actual
2024-25
Adopted
Budget
2024-25
Adjusted
Budget
Estimated
Year-end
Projection
Preliminary
Actual
6/30/25
% of
Adjusted
Budget
OPERATING EXPENDITURE
Salaries & Wages
4010 - Salaries - Full Time 253,366 280,793 286,993 264,000 258,159 -10.0% 4012 - Overtime 15,476 16,300 16,300 18,700 19,884 22.0% 4013 - Standby/Shift 8,871 9,800 11,015 10,950 11,850 7.6% 4090 - Vacancy Savings - - - - - 0.0%
4023 - One Time Payment 5,250 - 8,075 - 6,900 -14.6%
Total Salaries & Wages 282,963 306,893 322,383 293,650 296,793 -7.9% Benefits
4101 - Health in Lieu 2,276 - - - - 0.0%
4102 - Uniform Allowance 2,280 3,050 3,050 2,500 2,300 -24.6% 4105 - Medicare & Fica 4,180 4,071 4,071 4,820 4,544 11.6% 4110 - CalPERS Employer Rate 61,670 28,289 28,934 25,620 26,831 -7.3% 4111 - CalPERS Employer Rate-Unfunded - 53,400 53,400 54,000 53,360 -0.1% 4130 - Health Insurance 58,703 91,736 91,736 78,000 81,089 -11.6% 4150 - Dental Insurance 7,772 9,373 9,373 7,900 8,315 -11.3% 4151 - Vision Insurance 823 977 977 875 875 -10.4%
4181 - Long Term Disability Insurance 800 2,684 2,684 875 810 -69.8% 4182 - Short Term Disability Insurance 318 374 374 350 340 -9.3% 4183 - EAP (Employee Asst Prog) 83 315 315 100 88 -72.1% 4184 - Life Insurance 197 729 729 100 207 -71.7%
Total Benefits 139,103 194,999 195,644 175,140 178,758 -8.6% Contracted Services
4210 - Professional Contract Services 71,676 105,550 105,550 105,550 12,829 -87.8% 4210 - Subregional O&M 1,952,842 2,118,435 2,118,435 2,118,435 2,118,436 0.0% 4211 - Banking Fees 12,989 12,500 12,500 18,375 18,366 46.9% Total Contracted Services 2,037,507 2,236,485 2,236,485 2,242,360 2,149,631 -3.9% Bad Debt Expense
4301 - Bad Debt Expense 19,020 10,000 10,000 4,000 2,486 -75.1% Total Bad Debt Expense 19,020 10,000 10,000 4,000 2,486 -75.1% Services & Supplies
4330 - Misc Supplies & Services 29,942 83,200 83,200 91,200 71,961 -13.5% 4332 - Janitorial & Safety Supplies 29 1,500 1,500 1,500 - -100.0% Total Services & Supplies 29,971 84,700 84,700 92,700 71,961 -15.0% Special Programs
4360 - Conservation Rebate Program - 1,000 1,000 - - -100.0% Total Special Programs - 1,000 1,000 - - -100.0%
Vehicle Expense
4380 - Vehicle Maintenance 11,834 10,000 10,000 10,000 4,822 -51.8% Total Vehicle Expense 11,834 10,000 10,000 10,000 4,822 -51.8% Conference & Training Expense
4510 - Conference & Training 5,628 5,000 5,000 5,000 915 -81.7% 4515 - Meetings & Travel 2,830 3,000 3,000 3,000 2,260 -24.7% Total Conference & Training Expense 8,458 8,000 8,000 8,000 3,175 -60.3% Utilities
4710 - Utilities - Gas & Electric 56,498 66,412 66,412 55,000 64,505 -2.9% 4711 - Utilities - City Bill 5,377 12,440 12,440 3,200 3,080 -75.2% Detail - Wastewater Fund 510
FY24-25 Q4 Expenditures
Agenda Item Number 16 Agenda Item Number 16
City Council Meeting Packet of October 7, 2025
Description
2023-24
Actual
2024-25
Adopted
Budget
2024-25
Adjusted
Budget
Estimated
Year-end
Projection
Preliminary
Actual
6/30/25
% of
Adjusted
Budget
Detail - Wastewater Fund 510
FY24-25 Q4 Expenditures
Total Utilities 61,875 78,852 78,852 58,200 67,586 -14.3% Telecommunications
4750 - Telecommunications 1,692 2,500 2,500 1,200 1,113 -55.5% Total Telecommunications 1,692 2,500 2,500 1,200 1,113 -55.5% Allocated Insurance
4996 - Allocated Liability Insurance 41,232 29,200 29,200 29,200 30,012 2.8% 4997 - Allocated Wrkrs Comp Insurance 27,393 26,535 26,535 26,535 27,053 2.0% Total Allocated Insurance 68,625 55,735 55,735 55,735 57,066 2.4% G & A Allocation
4998 - G & A Allocation 1,041,462 908,934 908,934 908,934 908,934 0.0% Total G & A Allocation 1,041,462 908,934 908,934 908,934 908,934 0.0% Transfers Out
4999 - Transfers Out 800,532 32,000 32,000 32,606 32,551 1.7% Total Transfers Out 800,532 32,000 32,000 32,606 32,551 1.7% Capital Outlay
5100 - Capital Outlay - - - - - 0.0%
Total Capital Outlay - - - - - 0.0%
Debt Service Payments
6100 - Principal 153,305 153,089 211,889 216,468 214,370 1.2% 6200 - Interest 27,932 25,567 25,567 25,671 25,668 0.4% Total Debt Service Payments 181,237 178,656 237,456 242,139 240,039 1.1% TOTAL 4,684,280 4,108,755 4,183,690 4,124,664 4,014,912 -4.0% Agenda Item Number 16 Agenda Item Number 16
City Council Meeting Packet of October 7, 2025
FY 2024-25
4TH QUARTER FINANCIAL
UPDATE
ENTERPRISE FUND
October 7, 2025
Agenda Item Number 16 Agenda Item Number 16
City Council Meeting Packet of October 7, 2025
FY 2024/25 Q4 Water Fund
The city's water fund has finalized its revenue collection for all 12 months of usage activities and resulted in an overall of 100.4% revenue of budget.
Operating expenditures preliminary figure at 92.6%, which is below the expected target for the year end.
2024-25
Adjusted
Budget
Preliminary
Actual
6/30/25
$ Actual from
Budget
Actual As %
of Budget
Revenues $ 3,372,855 $ 3,385,395 $ 12,540 100.4%
Expenditures $ 2,805,712 $ 2,598,677 $ (207,035) 92.6%
Net Results $ 567,143 $ 786,717
Agenda Item Number 16 Agenda Item Number 16
City Council Meeting Packet of October 7, 2025
FY 2024/25 Q4 Wastewater Fund
The city’s sewer fund has collected overall 100% of
budgeted revenue.
Operating expenditures are at 96%, which is below target for year end.
2024-25
Adjusted
Budget
Preliminary
Actual
6/30/25
$ Actual from
Budget
Actual As %
of Budget
Revenues $ 4,659,752 $ 4,706,698 $ 46,946 101.0%
Expenditures $ 4,183,689 $ 4,014,912 $ (168,777) 96.0%
Net Results $ 476,063 $ 691,785
Agenda Item Number 16 Agenda Item Number 16
City Council Meeting Packet of October 7, 2025
Helpful Tips
Fiscal Year Statement Date Service Period (Reads) Period Ending FY24-25 July 2025 * June 2025 6/30/2025
Sept 2025 ** July - Aug 2025 8/31/2025
Nov 2025 Sept - Oct 2025 10/31/2025
Jan 2026 Nov - Dec 2025 12/31/2025
Mar 2026 Jan - Feb 2026 2/28/2026
May 2026 Mar - April 2026 4/30/2026
July 2026 May-June 2026 6/30/2026
FY25-26
* To prevent overlap with the July 1st water rate increase, a one-time, one-month billing cycle was implemented prior to rate took effect.
** The new rates went into effect on July 1st
How to read bi-month utility bill weblink: https://bit.ly/WaterBillEx Monitoring your own water usage with EyeOnWater app instruction weblink:
https://www.cityofsebastopol.gov/wp-content/uploads/2023/08/EOW-instructionsinfo-FINAL.pdf Agenda Item Number 16 Agenda Item Number 16
City Council Meeting Packet of October 7, 2025
COUNCIL
QUESTIONS/DISCUSSIONS
Agenda Item Number 16 Agenda Item Number 16
City Council Meeting Packet of October 7, 2025
How to Read Your Bi-Monthly Utility Bill
Utility Bill Charges are broken up into three categories: Service Charge, Water Charges, and Sewer Charges. The Service
Charge is a fixed fee based on meter size. Water and Sewer charges depend on how much water was used.
The explanation below shows how the charges on the attached sample bi-monthly Utility Bill were calculated.
1. Service Charge
•Service Charge (5/8” × ¾” Meter): This is a fixed fee based on meter size.
Total Service Charge = $70.39
2. Water Usage
•Water Usage: Bill shows customer used a total of 17 kgal (1 kgal = 1,000 gallons).
Water is billed in tiers, with higher rates for higher usage:
•Tier 1: First 7 kgal × $5.22 = $36.54
•Tier 2: Next 9 kgal × $6.65 = $59.85
•Tier 3: Remaining 1 kgal × $9.23 = $9.23
Total Water Charges = $105.62
3. Sewer Charges
•Service Charge (5/8” × ¾” Sewer): This includes:
° Base charge: $105.73
° Usage charge: Based on a “winter average” (to account for outdoor irrigation not entering the sewer system). For this bill, the winter average is 12 kgal × $17.18 = $206.16
Total Sewer Charges = $311.89
4. Total Bill
• Service Charge: $70.39
• Water Charges: $105.62
• Sewer Charges: $311.89
•Total Amount Due: $487.90
Key Takeaways
•Service charge is fixed each month based on meter size. •Water Charges are tiered—the more water used, the higher the rate per unit.
•Sewer Charges have a base charge and use a winter water average to estimate household wastewater, so irrigation water isn’t billed as sewer.
Agenda Item Number 16 Agenda Item Number 16
City Council Meeting Packet of October 7, 2025
EXHIBIT A
CITY OF SEBASTOPOL WATER AND WASTEWATER RATES
Five-Year Water Rate Schedule, Fixed Charges, $/Bi-mo.
Five-Year Water Rate Schedule, Volume Charges, $/kgal
Note: Water truck haulers are charged at the Irrigation customer class rate. 1 kgal = 1,000 gallons
Five-Year Wastewater (Sewer) Rate Schedule
Volume charge is based on the lowest two months of water use between December and March, commonly referred to as Average Winter Consumption.
Meter Size Current 7/1/2024 7/1/2025 7/1/2026 7/1/2027 7/1/2028 5/8"x3/4" & 3/4" $49.33 $67.68 $70.39 $73.21 $75.78 $78.44 1" $82.41 $111.95 $116.43 $121.09 $125.33 $129.72
1.5" $164.13 $222.59 $231.50 $240.76 $249.19 $257.92
2" $262.77 $355.37 $369.59 $384.38 $397.84 $411.77
3" $575.37 $775.82 $806.86 $839.14 $868.51 $898.91
4" $821.78 $1,395.46 $1,451.28 $1,509.34 $1,562.17 $1,616.85 Note: Single family on a 1" meter for fire service are charged the 3/4" rate.
Customer Class Current 7/1/2024 7/1/2025 7/1/2026 7/1/2027 7/1/2028 Residential
Tier 1: 0 - 7 kgal $4.52 $5.01 $5.22 $5.43 $5.63 $5.83
Tier 2: 8 - 16 kgal $4.52 $6.39 $6.65 $6.92 $7.17 $7.43 Tier 3: > 16 kgal $4.52 $8.87 $9.23 $9.60 $9.94 $10.29
Commercial $4.52 $5.51 $5.74 $5.97 $6.18 $6.40
Irrigation $4.52 $9.92 $10.32 $10.74 $11.12 $11.51
Charge Current 7/1/2024 7/1/2025 7/1/2026 7/1/2027 7/1/2028 Meter Size, $/bi-mo
5/8x3/4" & 3/4" $76.61 $95.25 $105.73 $115.25 $125.63 $136.94 1" $127.97 $258.35 $286.77 $312.58 $340.72 $371.39
1.5" $254.86 $657.20 $729.50 $795.16 $866.73 $944.74
2" $408.03 $841.02 $933.54 $1,017.56 $1,109.15 $1,208.98 3" $893.44 $2,093.81 $2,324.13 $2,533.31 $2,761.31 $3,009.83 4" $1,276.06 $6,307.17 $7,000.96 $7,631.05 $8,317.85 $9,066.46 Volume, $/kgal $10.31 $15.47 $17.18 $18.73 $20.42 $22.26 Note: Single family on a 1" meter for fire service are charged the 3/4" rate.
Agenda Item Number 16 Agenda Item Number 16
City Council Meeting Packet of October 7, 2025
SEE YOUR WATER USAGE!
FOLLOW THESE SIMPLE INSTRUCTIONS TO SEE YOUWATER USAGE INFORMATION ONLINE Questions?
Call (707) 823-7863
Visit https://eyeonwater.com/signup to create your
online account. (When entering your account number, don’t enter leading zeros or dash in account number. For example, for account number 009999-000, enter 9999000.)
1. Enter your service or billing address
Zip/Postal Code.
2. Enter your account number as it appears
on your water bill.
Don’t have a copy of your water bill? Questions
about your account number? Some utilities use
a customer number, omit hyphens, trailing zeros
and non-numeric characters. When in doubt,
contact your utility.
4. On the next screen you will enter
your email address.
3. Enter your full name
5. Next you will create and confirm
a password.
6. Read and accept terms of use
Passwords must be a minimum of 12 characters and contain at least:
1 number, 1 special character,1 upper case character, 1 lower case character.
Special Characters include:
^ $ * . [ ] { } ( ) ? ” ! @ # % & / \ , > < ‘ : ; | _ ~ ` = + – Once you click Eye on Water will find your account.
Click on the correct account if more than one utility comes up.
Enter Service or Billing Zip/Postal Code
Create new password
Confirm your password
Enter your email address
Enter your full name
Enter your Account Number
NEXT
NEXT
I have read the Terms of Use for this
application and agree to the provisions.
1 2 Name, Email Address and Password
Email Confirmation
Check your email
3 4
We have sent an email comfirmation to your email address, please open the link on the email and return to this app to complete your sign in.
Hi Customer Name,
You’re almost finished signing up for online access to your EyeOnWater water account. Please click the verification link below to activate your account and sign in.
Click here to verify your email address.
Once your email address is verified, you will have online access to view hourly water usage, explore your historical water usage trends, and set alerts for potential leaks in your home.
Email address
RESEND EMAIL
Now when you are logged in, your can see lots of information about your water consuption, and even see water leak alerts.
If you want to link more than one account, click on “LINK MORE ACCOUNTS” while you are logged in.
5 To add the app to your mobile device, visit the
Apple app store (iphone) or Google Play (Android) to download the app.
Create your account at
EyeonWater.com
Watch a video to
see how it works!
NEXT
Agenda Item Number 16 Agenda Item Number 16
City Council Meeting Packet of October 7, 2025