336 Pacific Avenue, Shafter, CA 93263
Meeting Held In-Person and Via Zoom and Livestream on YouTube.
AGENDA
SPECIAL MEETING
SHAFTER CITY COUNCIL
WEDNESDAY, JUNE 19, 2024
NOTICE TO THE PUBLIC:
Any documents produced by the City and distributed to a majority of the City Council regarding any item on this agenda will be made available in the City Clerk’s Office during normal business hours at City Hall located at 336 Pacific Avenue, Shafter CA. In addition, such documents will be posted on the City’s website at www.shafter.com.
CALL TO ORDER: 4:30 PM
ROLL CALL: Mayor Givens
Mayor Pro Tem Prout
Council Member Alvarado
Council Member Espinoza
Council Member Olvera
APPROVAL OF AGENDA:
PUBLIC COMMENT:
Those persons wishing to speak on any item included on the agenda, or on any matter within the subject matter jurisdiction of the City Council, are invited to speak from the podium and address the City Council. Speakers are limited to five minutes unless additional time is needed for translation. Please state your name and address for the record before making your presentation.
CONSENT CALENDAR:
All items on the consent calendar are considered routine and non-controversial by staff and will be approved by one motion if no member of the Council or public wishes to comment or ask questions. If comment or discussion is desired by anyone, the item will be removed from the consent calendar and will be considered in the listed sequence with an opportunity for any member of the public to address the Council concerning the item before action is taken.
1. Approve Special Event Permit: Shafter Chamber of Commerce, 3rd of July Fireworks Show, 700 E. Tulare Avenue, July 3, 2024.
MANAGEMENT REPORT:
Shafter City Council Agenda
June 19, 2024
1. INTRODUCTION OF DRAFT COMMUNITY FACILITY DISTRICT STUDY FOR POLICE AND FIRE SERVICES: Council find the action is not defined as a “Project” pursuant to Section 15378(b)(4) of the CEQA Guidelines; and receive the draft report. (City Manager Gabriel A. Gonzalez)
ROLL CALL
2. INTRODUCTION OF DRAFT DEVELOPMENT IMPACT FEE NEXUS STUDY :
Council find the action is not defined as a “Project” pursuant to Section 15378(b)(4) of the CEQA Guidelines; review and discuss the findings of the Draft Development Impact Fee Nexus Study (City Manager Gabriel A. Gonzalez)
ROLL CALL
3. REVIEW AND DISCUSSION OF ENTERPRISE FUND ANALYSIS (SEWER & WATER FUNDS): Council find the action is not defined as a “Project” pursuant to Section 15378(b)(4) of the CEQA Guidelines; accept the enterprise fund review and analysis related to water and sewer funds. (City Manager Gabriel A. Gonzalez)
ROLL CALL
ADJOURNMENT:
Pursuant to the Americans with Disabilities Act, if you need special assistance to participate in a City Council Meeting, please contact the City Clerk at (661) 746-5000 at least three (3) days prior to the meeting or time the special services are needed to allow City staff in making reasonable arrangements to provide you with access to the meeting. Any public record, relating to an open session agenda item, that is distributed within 72 hours prior to the meeting is available for public inspection in the City Clerk’s Office at Shafter City Hall, 336 Pacific Ave., Shafter, CA 93263. This is to certify that this Agenda notice was posted at City Hall and Police Dept. by 5:00 p.m., June 17, 2024. Yazmina Pallares, S/S, City Clerk
REMOTE PUBLIC PARTICIPATION IS ALLOWED IN THE FOLLOWING WAYS, SEE BELOW FOR INSTRUCTIONS.
1. You are strongly encouraged to observe the City Council meetings live via YouTube https://www.youtube.com/user/CityofShafter/
2. If you wish to make a comment on a specific agenda item or public comment, please submit your comment via email by 4:30 PM on June 19, 2024 to the City Clerk at [email protected]
3. If you wish to make a written comment to the City Clerk, 336 Pacific Avenue, Shafter, CA 93263.
4. If you wish to make a comment during the live meeting, callers must first register with the City Clerk at 661-746-5012 before the meeting begins to receive instructions and the call- in number and code. Please call by 5:00pm on the Monday prior to the City Council meeting to allow ample time for sign up. You will need to provide your name, phone number and the item number you wish to address.
5. All public comments are provided to the City Council and applicable Staff, for review and consideration by the Board prior to taking action on any matters listed on the agenda and are incorporated into the official record of the City
Shafter City Council Agenda
June 19, 2024
Council meeting.
Shafter City Council Agenda
June 19, 2024
336 Pacific Avenue, Shafter, CA 93263
Meeting Held In-Person and Via Zoom and Livestream on YouTube.
NOTICE OF
SPECIAL MEETING OF THE SHAFTER CITY COUNCIL
NOTICE IS HEREBY GIVEN that a special meeting of the City Council of the City of Shafter will be held on June 19, 2024. The meeting will convene at 4:30 PM, in the Council Chamber at Shafter City Hall, 336 Pacific Avenue, Shafter, California and via teleconference and Livestream on YouTube. Said special meeting shall be for the following purpose:
CONSENT CALENDAR:
1. Approve Special Event Permit: Shafter Chamber of Commerce, 3rd of July Fireworks Show, 700 E. Tulare Avenue, July 3, 2024.
MANAGEMENT REPORT:
1. INTRODUCTION OF DRAFT COMMUNITY FACILITY DISTRICT STUDY FOR POLICE AND FIRE SERVICES: Council find the action is not defined as a “Project” pursuant to Section 15378(b)(4) of the CEQA Guidelines; and receive the draft report. (City Manager Gabriel A. Gonzalez)
2. INTRODUCTION OF DRAFT DEVELOPMENT IMPACT FEE NEXUS STUDY:
Council find the action is not defined as a “Project” pursuant to Section 15378(b)(4) of the CEQA Guidelines; review and discuss the findings of the Draft Development Impact Fee Nexus Study (City Manager Gabriel A. Gonzalez)
3. REVIEW AND DISCUSSION OF ENTERPRISE FUND ANALYSIS (SEWER & WATER FUNDS): Council find the action is not defined as a “Project” pursuant to Section 15378(b)(4) of the CEQA Guidelines; accept the enterprise fund review and analysis related to water and sewer funds. (City Manager Gabriel A. Gonzalez) Yazmina Pallares, City Clerk
Affidavit of Posting Special Meeting Notice
This is to certify that this Special Meeting Notice was posted at City Hall and the Police Department by 5:00 p.m., June 17, 2024. Further information regarding this Agenda Notice is available at City Hall, 336 Pacific Ave., Shafter, CA.
Yazmina Pallares, S/S, City Clerk Dated: June 17, 2024
MANAGEMENT REPORT
CITY OF SHAFTER
CITY COUNCIL REPORT
MEETING DATE: June 19, 2024
FROM: Gabriel A. Gonzalez, City Manager
PREPARED BY: Gabriel Gonzalez, City Manager
SUBJECT: INTRODUCTION OF DRAFT COMMUNITY FACILITY DISTRICT
STUDY FOR POLICE AND FIRE SERVICES
RECOMMENDATION
Council find the action is not defined as a “Project” pursuant to Section 15378(b)(4) of the CEQA Guidelines; and receive the draft report.
BACKGROUND
New development in a city brings new operational expenditures to provide community facilities and basic services. As such, having a dedicated source of revenue to pay for these new services often presents a budgetary challenge. To address this budget constraint, it is common for a city to consider the formation of a Community Facilities District (CFD). A CFD is a special taxing district established by a local government to finance the construction, operation, and maintenance of public infrastructure and services.
ANALYSIS
CFDS are used to fund police and fire protection services, landscape, and other community facilities. They can also finance maintenance and operational costs for those city services. The primary funding mechanism is through the levy of a special tax on properties within the district. The amount of the special tax is typically based on factors such as property size, usage, and location.
A CFD is governed by the local government that established it. The local government is responsible for managing the district's finances, including setting the special tax rates and overseeing the expenditure of funds.
One benefit of a CFD is that it allows a city to fund services without imposing a burden on the general tax base. CFDs also ensure that new developments pay their fair share of the costs associated with the increased demand for public services and facilities.
In summary, a Community Facilities District is a valuable tool for local governments to finance public infrastructure and services in a manner that directly ties the costs to the properties benefiting from the improvements. City consultant, Koppel & Gruber Public Finance, will present the draft study at the Council meeting. This item is for
INTRODUCTION OF DRAFT COMMUNITY FACILITY DISTRICT STUDY FOR POLICE AND FIRE
SERVICES
- 2 -
informational purposes to provide introductory content about a Community Facilities District.
FISCAL IMPACT
None.
CEQA ANALYSIS
None.
APPROVED BY THE CITY ATTORNEY
Yes
ALTERNATIVES
None. Informational Item
NEXT STEPS
ATTACHMENTS
1. Shafter Public Services Special Tax Study - DRAFT 2024_06_17_V3
City of
Shafter
Public Services Special Tax Study
1
OVERVIEW
• History of Community Facilities Districts
• What is a Community Facilities District
(“CFD”)?
• What can CFDs pay for?
• Formation Procedures
• Methodology for Shafter Special Taxes
• Rate Calculation for Shafter
HISTORY OF CFDs
Prior to Prop 13 Local Governments could levy what they needed Prop 13 froze taxes at 1% of Assessed Value
Mello-Roos Community Facilities Act of 1982 (“The Act”) was passed to provide an alternative method of financing for needed improvements and services.
The Act allows any public agency to form a Community Facilities District to pay for improvements and services.
• A specific geographic area that levies a Special Tax
• Mitigate impact of new development
• Should be self sufficient – Administrative expenses paid by taxpayers, not general fund
• Dedicated source to pay for ongoing maintenance and
services (not commingled with the General Fund)
• May issue debt supported by Special Taxes
• Can generate pay as you go funding
• Adds reporting requirements
WHAT IS A CFD
Services- In addition and not supplant existing services • Police
• Fire
• Flood Control
• Landscape Maintenance
Real or Tangible Property with a Useful life of 5 years or longer • Backbone infrastructure; i.e. streets, sidewalks, sewer, water • Landscaping, parks
• Police stations, fire stations
Maintenance of Real or Tangible Property with a Useful life of 5 years or longer
WHAT CAN A CFD PAY FOR?
Local
agency/property
owner petition
initiated
CFD FORMATION
City Council
begins CFD
proceedings
Public
hearing
Ordinance
approved by the
City Council
Annual Administration
begins after development
starts
Election
Local goals &
policies
adopted
METHODOLOGY AND ASSUMPTIONS
• The City’s recent Development Impact Fee Calculation and Nexus Report (“DIF Report”) was utilized for the projection of the City’s build out, distribution of call activity by land use and needs associated with new development.
• Current law enforcement levels were determined by the City’s budget and fire suppression levels were determined by the County’s budget as well as estimates for operating new fire stations. • Special Tax rates were calculated using the impact of new development and considering property tax revenues generated by new development that is available to offset the cost of law enforcement and fire suppression.
• Historical call distribution by land use remains the same at buildout.
CURRENT AND PROJECTED DEVELOPMENT
1 Table 3.21 in RCS Development Impact Fee Report.
2 Includes single family attached and multi-family or two or more units.
Land Use
Current
Number of
Units/SF1
New
Construction1
Total Projected
Units/Square Footage
at Buildout
1 Single-Family Detached
(SFD) 4,838 16,491 21,329
Multi-Family Attached 2 350 2,319 2,669
Mobile Homes 175 32 207
Hotel Property 80 70 150
Retail/Service/Office 1,675,000 4,081,271 5,756,271
Business Park 2,090,880 58,715,395 60,806,275
Ind/Manufacturing 7,130,772 5,860,998 12,991,770
Private Institutional 1,075,932 141,570 1,217,502
PROPERTY TAX DOLLAR BREAKDOWN
1. Kern County Auditor-Controller-County Clerk. Does not include ERAF.
Source: http://www.auditor.co.kern.ca.us/GenLevy/GenLevyReport.aspx?fundNo=20501 Description Amount
Property Tax Dollar $1.00
Allocation to City General Fund1 0.22%
Expenditure
Expenditure for
FY 2023/241
Percentage of
Total Expenditure
Total General Fund Expenditures $45,896,316 100.00%
Police Expenditures $8,799,965 19.17%
Fire Expenditures $2,338,177 5.09%
FY 2023/2024 EXPENDITURES
1 City of Shafter, Adopted Budget Fiscal Year 2023/24 for Police and Unincorporated Cost spreadsheet for Station 68 for Fire Expenditures.
ALLOCATION OF PROPERTY TAX DOLLAR TO PUBLIC SERVICES
Service
Percentage of
Property Tax Dollar
to General Fund
*
Percentage of
Allocation of
General Fund to
Service
=
Percentage of
Amount Allocated
to Services
Police Services 0.2248% * 19.1736% = 0.0431%
Fire Services 0.2248% * 5.0945% = 0.0115%
Total NA 24.2681% 0.0546%
Average Total
Assessed
Valuation 1
1% General
Tax
City’s Share
of Property
Tax
Amount
Allocated to
Police
Amount
Allocated to
Fire
Property Tax
Credit
$381,032 $3,810 $8.57 $1.64 $0.44 $2.08
ESTIMATED REVENUE GENERATED FROM PROPERTY TAXES
1 Based on data compiled from the 2023 Kern County Secured Roll, represents the average assessed value of completed homes in Gossamar Grove.
POLICE SERVICES - ESTIMATED COST BASED ON CALL
VOLUME FOR ALL UNITS AT BUILDOUT
1 Based on Schedule 3.2 of the RCS Development Impact Fee Report. 2 Includes single family attached and multi-family or two or more units. 3 Based on estimated 205 total officers needed at build out as determined in the RCS Development Impact Report.
Land Use
Estimated Percentage
of Calls 1 Projected Cost
3 Single-Family Detached (SFD) 32.54% $17,787,346.52
Multi-Family Attached (MFA/MH)2 4.35% 2,377,690.46
Mobile Homes 0.04% 21,069.76
Hotel Property 0.03% 14,684.98
Retail/Service/Office 13.07% 7,142,648.54
Business Park 48.83% 26,691,554.67
Ind/Manufacturing 1.12% 609,746.08
Private Institutional 0.04% 21,708.24
Totals 100.00% $54,666,449.24
FIRE SERVICES - ESTIMATED COST BASED ON CALL
VOLUME FOR ALL UNITS AT BUILDOUT
1 Based on Schedule 4.1 of the RCS Development Impact Fee Report. 2 Includes single family attached and multi-family or two or more units. 3 Unincorporated Cost spreadsheet for Station 68 multiplied by 5 to reflect the Estimated Fire Services Cost at Build Out as determined by the RCS Report.
Land Use
Estimated Percentage
of Calls 1 Projected Cost
3 Single-Family Detached (SFD) 31.31% $3,660,755.16
Multi-Family Attached (MFA/MH)2 2.65% 310,188.17
Mobile Homes 0.08% 9,359.13
Hotel Property 0.08% 9,359.13
Retail/Service/Office 2.00% 233,978.14
Business Park 63.12% 7,379,002.09
Ind/Manufacturing 0.61% 70,861.95
Private Institutional 0.15% 17,381.23
Totals 100.00% $11,690,885.00
SPECIAL TAX RATE BY SERVICE AND LAND USE CATEGORY
Services Cost per Unit/SF
Police Special Tax Rate Based on
Cost Spread to All Units
Fire Special Tax Rate Based on
Cost Spread to All Units
Single-Family Detached
(SFD) $833.95 Unit $171.63 Unit
Multi-Family Attached
(MFA/MH)1 $890.85 Unit $116.22 Unit
Mobile Homes $101.79 Unit $45.21 Unit
Hotel Property $97.90 Unit (Room) $62.39 Unit (Room)
Retail/Service/Office $1.24 Square Foot $0.04 Square Foot Business Park $0.44 Square Foot $0.12 Square Foot
Ind/Manufacturing $0.05 Square Foot $0.01 Square Foot
Private Institutional $0.02 Square Foot $0.01 Square Foot 1 Includes single family attached and multi-family or two or more units.
JUSTIFIED ANNUAL SPECIAL TAX RATES
Residential
Property Type Annual Special Tax Rate
Justified
Residential1 $1,004.00 Per Unit
Mobile Home $145.00 Per Unit
1 Includes any type of residential unit, including but not limited to single family detached, single family attached, multi-family, and accessory dwelling units.
Commercial/Industrial
Property Type
Annual Special Tax
Rate Justified
Hotel Property $158.00 Per Room
Retail/Service/
Office $1.28 Per Square Foot
Business Park $0.56 Per Square Foot
Ind/
Manufacturing $0.06 Per Square Foot
Private
Institutional $0.03 Per Square Foot
Logistics Center1 TBD
1 Staff is conducting research on logistics centers.
INFLATION ADJUSTMENT
In addition to determining the annual special tax rate, the City should provide for the initial rate to be increased by either:
• A fixed percentage;
• A suitable index, such as the annual percentage change in the Consumer Price Index for All Urban Consumers, All
items in Los Angeles-Long Beach-Anaheim, CA, all urban
consumers, not seasonally adjusted (“CPI”);
• Or a combination of the two.
QUESTIONS?
MANAGEMENT REPORT
CITY OF SHAFTER
CITY COUNCIL REPORT
MEETING DATE: June 19, 2024
FROM: Gabriel A. Gonzalez, City Manager
PREPARED BY: Gabriel Gonzalez, City Manager
SUBJECT: INTRODUCTION OF DRAFT DEVELOPMENT IMPACT FEE
NEXUS STUDY
RECOMMENDATION
Council find the action is not defined as a “Project” pursuant to Section 15378(b)(4) of the CEQA Guidelines; review and discuss the findings of the Draft Development Impact Fee Nexus Study
BACKGROUND
Development impact fees are charges imposed on developers to mitigate the costs of providing public services and infrastructure necessitated by new development. These fees ensure that growth pays for growth and that existing residents are not unduly burdened by the costs of new development.
The City of Shafter has commissioned a Development Impact Fee Nexus Study to establish a rational basis for the imposition of these fees. This study is required by state law (California Government Code Sections 66000-66025, also known as the Mitigation Fee Act) to demonstrate that there is a reasonable relationship between the fees being charged and the impacts of the new development.
ANALYSIS
The Nexus Study was conducted by consulting firm Revenue and Cost Specialists and evaluates the need for public facilities and infrastructure resulting from new development within the city. The key components of the study include:
1. Service Area Identification: Defining the geographical boundaries within which the fees will be applied.
2. Existing and Future Needs Assessment: Analyzing current infrastructure and public service levels, and forecasting future needs based on projected development.
3. Cost Analysis: Estimating the total cost of providing the necessary infrastructure and services.
INTRODUCTION OF DRAFT DEVELOPMENT IMPACT FEE NEXUS STUDY - 2 -
4. Fee Calculation: Determining the appropriate fee levels to fund the identified needs while ensuring that the fees are proportionate to the impact of new development.
The study covers several categories of public infrastructure, including but not limited to:
• Circulation (Streets, Signals, Bridges & Access/Egress) Facilities • Water Supply, Storage, and Distribution Infrastructure • Wastewater Collection System
• General Facilities, Vehicles, and Equipment
• Library Collection Items
• Aquatic Facilities
• Park Land Acquisition and Park Infrastructure Development The Nexus Study concludes that:
1. The projected growth within the city will necessitate significant investment in public infrastructure and services.
2. The proposed development impact fees are proportionate to the impact of new development and are essential to fund the required improvements.
3. The fees have been calculated based on rigorous analysis and are in compliance with the Mitigation Fee Act.
The Development Impact Fee Nexus Study provides a comprehensive framework for ensuring that new development contributes fairly to the cost of public infrastructure and services. Our consultants Revenue & Cost Specialists will present the draft Nexus study at the Council meeting of June 19, 2024.
FISCAL IMPACT
The imposition of development impact fees will provide a significant source of funding for the city's capital improvement projects, reducing the financial burden on existing residents and ensuring sustainable growth.
CEQA ANALYSIS
None.
APPROVED BY THE CITY ATTORNEY
Not Applicable
ALTERNATIVES
None.
NEXT STEPS
INTRODUCTION OF DRAFT DEVELOPMENT IMPACT FEE NEXUS STUDY - 3 -
The Council is requested to review the Nexus Study and provide feedback on the proposed fee structure. Staff will also engage with stakeholders, including developers, and business owners, to inform them about the study findings and proposed fees.
ATTACHMENTS
1. Shafter Presentation - AB 1600 Nexus DIF Study
City Council Study Session
June 19, 2024
Revenue & Cost Specialists
Gregory Brown, Vice President
Scott Thorpe, Senior Vice President
1 Page 35 of 98
One-time charges are applied to new developments and
collected to construct or acquire the infrastructure
needed to accommodate that same new development.
Shafter Development Impact Fee:
Circulation (Streets, Signals, Bridges & Access/Egress) Facilities Water Supply, Storage, and Distribution Infrastructure Wastewater Collection System
General Facilities, Vehicles, and Equipment
Library Collection Items
Aquatic Facilities
Park Land Acquisition and Park Infrastructure Development 2 Page 36 of 98
Help maintain the current Level of Service (LOS)
Without any offset, increased development will reduce level of service for existing community
Must be proportional to the impact of each
development
A single project cannot pay for the entire cost of infrastructure improvement
Require safekeeping and have restricted use
Cannot be used for maintenance, operational cost, or
replacement
3 Page 37 of 98
1. Delineation of the PURPOSE of the fee.
2. Determination of the USE of the fee.
3. Determination of the RELATIONSHIP between the use
of the fee and the type of development paying the fee.
4. Determination of the relationship between the NEED for the facility and the type of development project.
5. Determination of the relationship between the AMOUNT of the fee and the COST of the portion of the facility
attributed to the specific development project.
4 Page 38 of 98
RCS: Calculates the maximum amount at which an impact
fee can be adopted.
City Staff & Council: Determine the appropriate amount for the impact fee to be adopted.
5 Page 39 of 98
Table 2-1 Detailed Land Use Inventory
Table 2-3 (Estimated Population)
Current (22,541) + Potential (47,786) = Build-Out (70,327) 6 Page 40 of 98
7 Page 41 of 98
8 Page 42 of 98
9 Page 43 of 98
10 Page 44 of 98
11 Circulation Water Sewer Gen. Gov. Pub. Fac. Library Aquatics Park Detached Dwelling Units $4,342 $5,198 $9,460 $781 $1,348 $69 $874 $10,869 Attached Dwelling Units $1,735 $4,825 $9,458 $781 $1,370 $70 $889 $11,051 Mobile Home Dwelling Units $1,957 $2,598 $9,458 $781 $1,170 $60 $759 $9,438 Commercial Lodging Units $1,090 $1,114 $6,019 $81 N/A N/A N/A N/A Retail/Service/Office Uses SF $16.363 $0.876 $2.115 $0.136 N/A N/A N/A N/A Business Park Uses SF $5.826 $0.426 $1.234 $0.136 N/A N/A N/A N/A Ind./Manufacturing Uses SF $3.055 $0.341 $0.987 $0.136 N/A N/A N/A N/A Private Institutional Uses SF $13.957 $0.393 $0.759 $0.136 N/A N/A N/A N/A Agriculture - Future Business Park $5.826 $0.000 $0.000 $0.000 N/A N/A N/A N/A
12 Circulation Water Sewer Gen. Gov. Pub. Fac. Library Aquatics Park Detached Dwelling Units $0 $0 $0 $781 $1,348 $69 $874 $10,869 Attached Dwelling Units $0 $0 $0 $781 $1,370 $70 $889 $11,051 Mobile Home Dwelling Units $0 $0 $0 $781 $1,170 $60 $759 $9,438 Commercial Lodging Units $0 $0 $0 $81 N/A N/A N/A N/A
Retail/Service/Office Uses SF $5.218 $0.786 $2.377 $0.136 N/A N/A N/A N/A Business Park Uses SF $1.858 $0.371 $1.347 $0.136 N/A N/A N/A N/A Ind./Manufacturing Uses SF $1.858 $0.000 $0.000 $0.000 N/A N/A N/A N/A Private Institutional Uses SF $0.974 $0.306 $1.109 $0.136 N/A N/A N/A N/A Agriculture - Future Business Park $0.00 $0.000 $0.000 $0.136 N/A N/A N/A N/A
13 Circulation Water Sewer Gen. Gov. Pub. Fac. Library Aquatics Park Detached Dwelling Units $7,338 $0 $9,712 $781 $1,348 $69 $874 $10,869 Attached Dwelling Units $0 $0 $0 $781 $1,370 $70 $889 $11,051 Mobile Home Dwelling Units $0 $0 $0 $781 $1,170 $60 $759 $9,438 Commercial Lodging Units $0 $0 $0 $81 N/A NA NA NA
Retail/Service/Office Uses SF $0.00 $0.000 $0.000 $0.136 N/A NA NA NA Business Park Uses SF $0.00 $0.000 $0.000 $0.136 N/A NA NA NA Ind./Manufacturing Uses SF $5.16 $0.000 $1.015 $0.136 N/A NA NA NA Private Institutional Uses SF $0.00 $0.000 $0.000 $0.136 N/A NA NA NA Agriculture - Future Business Park $7,338 $0 $9,712 $781 $1,348 $69 $874 $10,869
DIF Land Use Type
Current
Units/
Square Feet
Water
Allocation Rate
GPD
Cumulative
Existing Water
Allocation
Detached Dwellings (Units) 4,882 700.00 3,417,400
Attached Dwelling (Units) 350 650.00 227,500
Mobile Home Dwelling (Units) 175 350.00 61,250
Commercial Lodging (Units) 80 150.00 12,000
Retail/Service/Office (SF) 6,808,328 1,800.00 803,880
Business Park Uses (SF) 46,485,490 1,000.00 2,667,900
Ind./Manufacturing (SF) 7,130,772 1,000.00 327,400
Private Institutional (SF) 1,075,932 1,500.00 57,000
14 Page 48 of 98
Land Use Type Impact
Fee
Detached Dwelling Units $5,198 per Unit
Attached Dwelling Units $4,825 per Unit
Mobile Home Dwelling Units $2,598 per Unit
Commercial Lodging Units $1,114 per Unit
Retail/Service/Office Uses SF $0.876 per S.F.
Business Park Uses SF $0.426 per S.F.
Ind./Manufacturing Uses SF $0.341 per S.F.
Private Institutional Uses SF $0.393 per S.F.
15 Page 49 of 98
Land Use Type Impact
Fee
Retail/Service/Office Uses SF $0.786 per S.F.
Business Park Uses SF $0.371 per S.F.
Ind./Manufacturing Uses SF $0.306 per S.F.
16 Page 50 of 98
Land Use Type Impact
Fee
Detached Dwelling Units $9,460 per Unit
Attached Dwelling Units $9,458 per Unit
Mobile Home Dwelling Units $9,458 per Unit
Commercial Lodging Units $6,019 per Unit
Retail/Service/Office Uses SF $2.115 per S.F.
Business Park Uses SF $1.234 per S.F.
Ind./Manufacturing Uses SF $0.987 per S.F.
Private Institutional Uses SF $0.759 per S.F.
17 Page 51 of 98
Land Use Type Impact
Fee
Retail/Service/Office Uses SF $2.377 per S.F.
Business Park Uses SF $1.347 per S.F.
Ind./Manufacturing Uses SF $1.109 per S.F.
18 Page 52 of 98
Land Use Type Impact
Fee
Detached Dwelling Units $9,712 per Unit
Business Park Uses SF $1.228 per S.F.
Ind./Manufacturing Uses SF $1.015 per S.F.
19 Page 53 of 98
Land Use Type Impact
Fee
Detached Dwelling Units $4,342 per Unit
Attached Dwelling Units $1,735 per Unit
Mobile Home Dwelling Units $1,957 per Unit
Commercial Lodging Units $1,090 per Unit
Retail/Service/Office Uses SF $16.363 per S.F.
Business Park Uses SF $5.826 per S.F.
Ind./Manufacturing Uses SF $3.055 per S.F.
Private Institutional Uses SF $13.957 per S.F.
Agriculture - Future Business Park $5.826 per S.F.
20 Page 54 of 98
Land Use Type Impact
Fee
Retail/Service/Office Uses SF $5.218 per S.F.
Business Park Uses SF $1.858 per S.F.
Agriculture - Future Business Park $1.858 per S.F.
Ind./Manufacturing Uses SF $0.974 per S.F.
21 Page 55 of 98
Land Use Type Impact
Fee
Detached Dwelling Units $7,338 per Unit
Business Park Uses SF $9.848 per S.F.
Ind./Manufacturing Uses SF $5.164 per S.F.
22 Page 56 of 98
Land Use Type Impact
Fee
Residential Dwelling Units $781 per Unit
Commercial Lodging $81 per Unit
Business Uses $0.136 per S.F.
23 Page 57 of 98
24 16,550 square feet is the inventory of current facilities 0.800 square foot/resident is the current standard
38,229 square feet required for new demand
$344.02 – Cost per Additional Resident
Land-Use Category Proposed Impact
Fee
Detached Dwelling Units $1,348 per Unit
Attached Dwelling Unit $1,370 per Unit
Mobile Home Dwelling Unit $1,170 per Unit
25 Page 59 of 98
26 9,060 collection items from the current library
0.438 collection item/resident is the current standard 47,786 collection items required for new demand
$17.52 – Cost per Additional Resident
Land-Use Category Proposed Impact
Fee
Detached Dwelling Units $69 per Unit
Attached Dwelling Unit $70 per Unit
Mobile Home Dwelling Unit $60 per Unit
27 Page 61 of 98
28 5,900 pool surface square feet in current facilities 4,600 aquatics building square feet in current facilities 0.285 square feet pool surface/resident is the current standard 0.222 square feet aquatic building/resident is the current standard
$223.02 – Cost per Additional Resident
Land-Use Category Proposed Impact
Fee
Detached Dwelling Units $874 per Unit
Attached Dwelling Unit $889 per Unit
Mobile Home Dwelling Unit $759 per Unit
29 Page 63 of 98
30 34.13 Acres is the inventory of the current park/space 1.651 Park Acres/1000 population is the current standard 143.36 Acres required for new demand
$2,775 – Cost per additional resident
Land-Use Category Proposed
Impact Fee
Detached Dwelling Units $10,869/Unit
Attached Dwelling Units $11,051/Unit
Mobile Home Dwelling Units $9,438/Unit
31 Page 65 of 98
1. Annual Report – For each separate fund (i.e., each fee category), the City must prepare and make publicly available a report containing information as required pursuant to Government Code, section 66006(b)
a. Report must be completed within 180 days after close of fiscal year;
b. Report must be made publicly available 15 days prior to regularly scheduled council meeting; and
c. Notice must be mailed to any interested party requesting mailed notice at least 15 days prior to date of meeting. 32 Page 66 of 98
2. Five Year (Continued Findings) Report – For the fifth fiscal year following first deposit of the fees, and every five years thereafter, the City must complete a continued findings report for the portion of the unexpended fees
a. This report is filed with the annual report described above; b. Completed for each fund containing unexpended fees
held for five years only;
c. Requires specific findings as outlined in Government Code, section 66001(d)(1); and
d. Failure to complete this report requires mandatory
refunding of fees collected.
33 Page 67 of 98
Core Residential Phased Options - New Public Facilities Only Fee Description Current Draft 25% 50% 75%
Park $2,281.22 $10,869.00 $8,151.75 $5,434.50 $2,717.25 Public Meeting $0.00 $1,348.00 $1,011.00 $674.00 $337.00 Library $0.00 $69.00 $51.75 $34.50 $17.25
GG Facilities $0.00 $781.00 $585.75 $390.50 $195.25
Aquatic Ctr $0.00 $874.00 $655.50 $437.00 $218.50
Public Facilities Fees $2,281.22 $13,941.00 $10,455.75 $6,970.50 $3,485.25 Water $4,230.00 $5,198.00 $5,198.00 $5,198.00 $5,198.00 Sewer $5,930.00 $9,460.00 $9,460.00 $9,460.00 $9,460.00 TIF $4,571.00 $4,342.00 $4,342.00 $4,342.00 $4,342.00
Public Works Fees $14,731.00 $19,000.00 $19,000.00 $19,000.00 $19,000.00 Public Safety $0.00 $2,910.00 $2,910.00 $2,910.00 $2,910.00 CWF $150.00 $150.00 $150.00 $150.00 $150.00
CBSC $11.00 $11.00 $11.00 $11.00 $11.00
Traffic Signal $500.00 $500.00 $500.00 $500.00 $500.00
SMI $33.56 $33.56 $33.56 $33.56 $33.56
School $9,134.53 $9,134.53 $9,134.53 $9,134.53 $9,134.53 Zoning $443.99 $443.99 $443.99 $443.99 $443.99
Building $2,581.36 $2,581.36 $2,581.36 $2,581.36 $2,581.36 Issuance $27.00 $27.00 $27.00 $27.00 $27.00
General & Special Fees $12,881.44 $15,791.44 $15,791.44 $15,791.44 $15,791.44 Total $29,893.66 $48,732.44 $45,247.19 $41,761.94 $38,276.69 Difference $18,838.78 $15,353.53 $11,868.28 $8,383.03
East Shafter Residential Phased Options - New Public Facilities Only Fee Description Current Draft 25% 50% 75%
Park $0.00 $0.00 $0.00 $0.00 $0.00
Public Meeting $0.00 $1,348.00 $1,011.00 $674.00 $337.00 Library $0.00 $69.00 $51.75 $34.50 $17.25
GG Facilities $0.00 $781.00 $585.75 $390.50 $195.25
Aquatic Ctr $0.00 $874.00 $655.50 $437.00 $218.50
Public Facilities Fees $0.00 $3,072.00 $2,304.00 $1,536.00 $768.00 Water $0.00 $0.00 $0.00 $0.00 $0.00
Sewer $6,780.00 $9,712.00 $9,712.00 $9,712.00 $9,712.00 TIF $6,925.00 $7,338.00 $7,338.00 $7,338.00 $7,338.00
Public Works Fees $13,705.00 $17,050.00 $17,050.00 $17,050.00 $17,050.00 Public Safety $2,910.00 $2,910.00 $2,910.00 $2,910.00 $2,910.00 CWF $0.00 $0.00 $0.00 $0.00 $0.00
CBSC $16.00 $16.00 $16.00 $16.00 $16.00
Traffic Signal $0.00 $0.00 $0.00 $0.00 $0.00
SMI $50.06 $50.06 $50.06 $50.06 $50.06
School $11,243.54 $11,243.54 $11,243.54 $11,243.54 $11,243.54 Zoning $662.33 $662.33 $662.33 $662.33 $662.33
Building $3,850.78 $3,850.78 $3,850.78 $3,850.78 $3,850.78 Issuance $63.00 $63.00 $63.00 $63.00 $63.00
General & Special Fees $18,795.71 $18,795.71 $18,795.71 $18,795.71 $18,795.71 Total $32,500.71 $38,917.71 $38,149.71 $37,381.71 $36,613.71 Difference $9,024.05 $8,256.05 $7,488.05 $6,720.05
Proposed fees are amounts reasonably calculated
and defensible.
Impact Fees are one-time, and future demand will
utilize city resources.
36 Page 70 of 98
MANAGEMENT REPORT
CITY OF SHAFTER
CITY COUNCIL REPORT
MEETING DATE: June 19, 2024
FROM: Gabriel A. Gonzalez, City Manager
PREPARED BY: Rogelio Sanchez, Finance Director
SUBJECT: REVIEW AND DISCUSSION OF ENTERPRISE FUND ANALYSIS (SEWER & WATER FUNDS)
RECOMMENDATION
Council find the action is not defined as a “Project” pursuant to Section 15378(b)(4) of the CEQA Guidelines; accept the enterprise fund review and analysis related to water and sewer funds.
BACKGROUND
This report analyzes the financial health of the Water and Wastewater Enterprise Funds, highlighting key service and financial challenges. These funds face increasing costs, demand, and regulatory requirements, which pose significant funding challenges.
Key Issues:
▪ Water: TCP removal costs, PG&E service increases, rising labor and construction costs, aging infrastructure, and higher water quality standards. ▪ Wastewater: The need for WWTP expansion projects (treatment plant), competing priorities with NORSD, aging infrastructure, and rising labor and construction costs.
To address these challenges, the city must ensure that the enterprise funds are selffunded through utility service rates. Funding commitments include operations and maintenance, capital replacement projects, and potential rate adjustments. Staff will research funding options to stabilize the funds and ensure their long-term sustainability.
Additional context will be provided during the presentation on June 19, 2024.
ANALYSIS
N/A
FISCAL IMPACT
No budget action is needed, as this is an informational report.
REVIEW AND DISCUSSION OF ENTERPRISE FUND ANALYSIS (SEWER & WATER FUNDS) - 2 -
CEQA ANALYSIS
The action is exempt from the California Environmental Quality Act (CEQA) because it is not defined as a "project" per Section 15378(b)(4) of the CEQA Guidelines. The action is a government fiscal activity that does not involve any commitment to any specific project that may result in a potentially significant impact on the environment.
APPROVED BY THE CITY ATTORNEY
No
ALTERNATIVES
There is no alternative, as this is an informational report.
NEXT STEPS
Staff will research funding options to stabilize the funds.
ATTACHMENTS
1. Water-WW Analysis Presentation
Water & Wastewater Fund Analysis
Special Council Meeting June 19, 2024
4:30PM
Outline
Water & Wastewater Profile/Overview
Regulatory & Operational Challenges
Financial Health
Past, Current, Future
Do rate payer revenue cover operating expenses?
How do capital projects get paid?
Water System
Details
• Six (6) Active Wells
• Five (5) Storage Tank &
Booster Pump Stations
• Three (3) Pressure ZonesCore, WIP, & Shafter Airport • > 118 miles of watermains • > 1,000 gate valves
• > 830 Fire Hydrants
• > 3,300 water meters
1810
1686
1405 1465
1597 1616 1610
1540
1634 1630
1426
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Million Gallons (MG) Year
Gross Water Production Last 10 years
71,588,000 74,149,000
65,554,000
103,964,000
154,683,000 147,101,000
188,674,000
165,570,000
147,904,000
125,462,000
100,857,000
80,274,000 Gallons
Month
2023 Well Production
Water Service & Funding Challenges
TCP removal costs
PG&E service increases
Labor and construction cost increases
Aging infrastructure
Higher water quality standards
Lowering groundwater table
Rapid rate of growth and expansion
Water Residential Rates Increases
(Typical Single-Family Home)
$23.5 $23.5 $23.5 $23.5 $23.5
$29.3 $33.7 $37.1 $40.8 $42.8 $42.8 $42.8
$49.3
$56.6 $60.0 $61.8 $63.7 $63.7 $63.7 $63.7
$23.5 $25.3 $26.1 $27.2 $29.2 $31.3 $34.5 $36.6 $41.0 $38.9 $39.6 $42.2 $43.7 $45.1 $47.1 $48.0 $50.1 $52.8 $58.2
$63.4 $65.8
$73.1
$91.2
$98.5
$104.9
$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
-00 -01 -02 -03 -04 -05 -06 -07 -08 -09 -10 -11 -12 -13 -14 -15 -16 -17 -18 -19 -20 -21 -22 -23 -24 USD Fiscal Year
Water Res. Rate Water Res. Rate with CPI
Water Historical Operating Revenues vs Expenses
(Excludes CIP)
$0.7M $0.8M $0.8M $0.8M $0.9M $1.1M $1.4M $1.5M $0.6M $0.5M $0.7M $0.8M $1.0M $1.4M
$1.5M $1.6M
$1.0M $1.0M $1.1M
$1.4M $1.4M
$1.5M
$1.8M $1.8M
$0.5M $0.5M $0.6M
$0.6M
$0.6M
$1.0M
$1.2M $1.1M
$3.8M
$4.7M $4.5M
$5.3M $5.1M
$5.7M $5.6M $5.7M
$2.7M $2.9M $3.1M
$3.6M $3.8M
$5.0M
$6.0M $6.0M
$0.0M
$1.0M
$2.0M
$3.0M
$4.0M
$5.0M
$6.0M
$7.0M
17/18 18/19 19/20 20/21 21/22 22/23 23/24 Projected 24/25 Proposed Million USD Fiscal Year
Labor Cost M&O Utilities Internal Charges Operating Revenues Total Operating
Water Operating Expenses
21/22 Actual Vs 24/25 Proposed
Labor 639,150
M&O 612,533
Utilities 381,887
Internal Charges 513,742
Water Historical Revenues vs Expenses
$1.2 $1.3 $1.3 $1.4 $1.5 $1.5 $1.5 $1.6
$1.9
$2.3
$2.6
$3.0 $3.1 $3.1 $3.1
$3.7
$4.4 $4.3
$4.9 $5.0
$5.5
$2.0 $1.7 $1.7 $2.0
$2.4
$2.8 $3.1 $2.8 $2.6 $2.7
$5.2
$4.4 $4.3
$3.8
$6.0 $5.8 $5.6 $5.7 $5.5
$6.8
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
-03 -04 -05 -06 -07 -08 -09 -10 -11 -12 -13 -14 -15 -16 -17 -18 -19 -20 -21 -22 -23 Million USD Fiscal Year
Operating Expenses Debt CAPEX Revenues Total Expenses
Water Projected CAPEX
$1.0M
$0.8M $0.9M
$1.7M
$3.2M
$0.8M $0.8M $0.8M $0.8M $0.8M
$0.0M
$0.5M
$1.0M
$1.5M
$2.0M
$2.5M
$3.0M
$3.5M
23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 31/32 32/33 Million USD Fiscal Year
Major Well or Casing Repairs Water Tank Improvements Well Maintenance Projects SCADA Maintenance Projects Water Meter Retrofits General Water Main Replacement Water Meter - New Installations Well 23 Development - Well 11 Replacement Total Water
Water Revenues & Expenses Projections
$6.0M $6.1M $6.2M $6.4M $6.5M $6.7M
$0.9M
$1.7M
$3.2M
$0.8M $0.8M $0.8M
$5.7M $5.8M $5.9M $6.1M $6.2M $6.3M
$0.0M
$1.0M
$2.0M
$3.0M
$4.0M
$5.0M
$6.0M
$7.0M
$8.0M
$9.0M
$10.0M
24/25 Proposed 25/26 Projected 26/27 Projected 27/28 Projected 28/29 Projected 29/30 Projected Milion USD Fiscal Year Total Operating CIP Operating Revenues
Water Operating Expenses
Six Year
CAGR
24/25 Pct
Change
24/25
Change
24-25
Proposed
23-24
Budget
22-23
Actual
Labor $1.1M $1.3M $1.5M $0.2M 12.5% 8.9%
M&O $1.4M $1.5M $1.6M $0.1M 9.1% 15.9%
Utilities $1.5M $1.8M $1.8M $0.0M 0.8% 7.3%
Internal Charges $1.0M $1.1M $1.1M $0.0M -0.1% 12.8%
Operating Expenses $5.0M $5.6M $6.0M $0.3M 5.5% 10.8%
Wastewater
System Details
• Twelve (12) Lift Stations
• > 1,500 manholes
• > 101 miles of mains
• Discharges into Regional
WWTP with NORSD
Sewer Average MGD
1.16 1.05 1.08 1.14 1.16 1.16 1.19 1.19 1.23 1.21 1.24 1.24 1.20
1.29 1.26 1.26 1.33
1.43 1.43 1.40 1.36 1.33 1.37 1.39
0.84 0.95 0.92 0.86 0.84 0.84 0.81 0.81 0.77 0.79 0.76 0.76 0.80 0.71 0.74
1.24 1.17 1.07 1.07 1.10 1.15 1.17 1.13 1.11
2.00 2.50
-
0.50 1.00
1.50 2.00
2.50 3.00
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 MGD Average MGD Excess Max Capacity
Wastewater Service & Funding Challenges
Need for WWTP expansion projects
Original 1999 (5.88 MGD)
2009 (7.5 MGD)
Proposed 2026 (10 MGD)
Competing priorities with NORSD
Aging infrastructure
Labor and construction cost increases
Sewer Residential Rates Increases
(Typical Single-Family Home)
$22.4 $24.6 $26.9 $29.1 $29.9
$22.4 $24.2 $24.9 $26.0 $27.9 $29.9 $33.0 $35.0
$39.1 $37.1 $37.9 $40.3 $41.8 $43.1 $45.0 $45.8 $47.8 $50.5 $55.6
$60.5 $62.8
$69.8
$87.1
$94.1
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
$80.0
$90.0
$100.0
-00 -01 -02 -03 -04 -05 -06 -07 -08 -09 -10 -11 -12 -13 -14 -15 -16 -17 -18 -19 -20 -21 -22 -23 USD Fiscal Year
WW Res. Rate WW Res. Rate with CPI
Wastewater Historical Operating Revenues vs Expenses
(Excludes CIP)
$0.4M $0.3M $0.4M $0.4M $0.4M $0.4M $0.5M $0.5M
$0.6M $0.6M $0.5M
$0.9M $0.7M $0.9M
$1.0M $1.0M $0.0M $0.0M $0.0M
$0.1M
$0.1M
$0.1M
$0.1M $0.1M
$0.3M $0.3M $0.3M
$0.4M
$0.3M
$0.6M
$1.8M $0.7M $0.6M
$2.0M $2.1M
$2.4M
$2.6M $2.5M $2.6M $2.6M
$1.2M $1.2M $1.3M
$1.7M
$1.4M
$1.9M
$2.3M $2.2M
$0.0M
$0.5M
$1.0M
$1.5M
$2.0M
$2.5M
$3.0M
17/18 18/19 19/20 20/21 21/22 22/23 23/24 Projected 24/25 Proposed Million USD Fiscal Year
Labor Cost M&O Utilities Internal Charges Operating Revenues Total Operating
Wastewater Operating Expenses
21/22 Actual Vs 24/25 Proposed
Labor 176,261
M&O 267,417
Utilities 29,438
Internal Charges 360,468
Wastewater Historical Revenues vs Expenses
$1.1 $1.1 $1.1 $1.1 $1.2 $1.2 $1.3 $1.3 $1.3 $1.3 $1.3 $1.4 $1.4 $1.5 $1.6 $1.8 $2.0 $2.0 $2.4 $2.4 $2.5
$2.7
$3.8
$2.5
$1.4
$1.7 $1.6
$2.2
$2.7
$2.0 $2.0
$2.4
$5.4
$2.0 $1.8
$3.2
$5.0
$2.1
$3.0
$2.8
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
-03 -04 -05 -06 -07 -08 -09 -10 -11 -12 -13 -14 -15 -16 -17 -18 -19 -20 -21 -22 -23 Million USD Fiscal Year
Operating Expenses Debt CAPEX Revenues Total Expenses
Wastewater Projected CAPEX (Excluding Plant Expansion)
$0.3M $0.3M $0.3M $0.3M $0.3M $0.3M $0.3M $0.3M $0.3M $0.3M $0.3M
$0.3M $0.3M $0.3M $0.3M $0.3M $0.3M $0.3M $0.3M $0.3M
$0.3M
$0.3M $0.3M $0.3M $0.3M $0.3M $0.3M $0.3M $0.3M $0.3M
$0.3M
$0.2M
$0.2M
$0.2M $0.2M $0.3M $0.3M $0.3M $0.3M $0.3M
$1.6M
$1.4M
$1.6M
$1.1M $1.1M $1.2M $1.2M $1.2M $1.2M $1.2M
$0.0M
$0.2M
$0.4M
$0.6M
$0.8M
$1.0M
$1.2M
$1.4M
$1.6M
$1.8M
23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31 31/32 32/33 Million USD Fiscal Year
Manhole Coating Southeast Shafter Sewer Imp. Lift Station Improvements WWTP Pre-Treatment Programs WWTP Plant Maintenance Proj. SCADA Maintenance Project Sewer Flowmeter Project JPA Shared Projects Total
Wastewater Revenues & Expenses Projections
(Excludes $50M Treatment Plant Expansion)
$2.2M $2.3M $2.4M $2.4M $2.5M $2.5M
$1.4M $1.6M $1.1M $1.1M $1.2M $1.2M
$1.1M $1.1M
$2.6M $2.7M $2.7M $2.8M $2.9M $2.9M
$0.0M
$1.0M
$2.0M
$3.0M
$4.0M
$5.0M
$6.0M
24/25 Proposed 25/26 Projected 26/27 Projected 27/28 Projected 28/29 Projected 29/30 Projected Million USD Fiscal Year
Operating Expenses CIP Debt (Treatment Plant Expansion) Operating Revenues $1.93M
Wastewater Operating Expenses
Six Year
CAGR
24/25 Pct
Change
24/25
Change
24-25
Proposed
23-24
Budget
22-23
Actual
Labor $0.4M $0.5M $0.5M $0.0M 3.3% -0.7%
M&O $0.9M $0.9M $1.0M $0.1M 7.4% 7.9%
Utilities $0.1M $0.1M $0.1M $0.0M 13.7% 23.9%
Internal Charges $0.6M $0.6M $0.6M $0.0M -0.1% 12.5%
Operating Expenses $1.9M $2.1M $2.2M $0.1M 4.5% 7.4%
Takeaways
Water and wastewater enterprise face funding challenges with increased costs, demand, and regulations
City must ensure the enterprises are self-funded by utility service rates to meet these challenges
Funding commitments include operations and maintenance and capital replacement projects
Staff will research funding options to stabilize the funds