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To: Sebastopol Public Works; Oriana Hart; Mary Gourley; Torran Korman Subject: Public Comment:EFOC/Budget committee meeting 10/5 Date: Saturday, October 3, 2026 4:35:06 PM
Attachments: Water revenues are not coming in at the expected projected numbers from the rate study.pdf Hello,
Hopefully one of you is the correct person to send a public comment to for this meeting.
If not please let me know.
Attached is a brief overview of the planned revenues from the 2024 rate study and the actual for the two full years those rate were in effect.
The first full year of the new rate plan was FY24-25. Revenues came in 5% under the rate study plan. This was a significant change from the year before where revenues were 4% over plan. More importantly in FY25-26 the "Expected Actual" from the FY26-27 Adopted budget was 15% under the plan. This was before the rate freeze in July 2026.
The number should be pretty close to the planned revenues assuming the billing program is correct, and water usage has not dropped significantly. It is possible the "estimated actual" is just a very bad estimate.
arly Wastewater pumping volumes could be tracked quarterly.
Performance against the rate study plan should be reviewed at least annually to ensure revenues are as expected. Water use vs plan should be included in the quarterly updates.
Those revenues are critical to the ability of the fund to maintain reserve levels and cover planned debt and capital projects. Actual Wastewater pumping volumes should be tracked and reported quarterly as well. They make up the largest single cost for wastewater next to the costs allocated from the general fund.
Before you do another rate study this problem should be better understood to ensure it is not just carried into the new rate study.