CITY COUNCIL MEETING AGENDA September 2, 2025
CITY OF SHASTA LAKE
CITY COUNCIL
MEETING AGENDA
September 2, 2025
6:00 P.M.
Shasta Lake City Council Chambers
4488 Red Bluff Street Shasta Lake, CA 96019
Mayor: Pamelyn Morgan
Vice Mayor: Justin Jones
Council Members: Toni Coates, Dan Ringwelski, Greg Watkins
OTHER WAYS TO PARTICIPATE IN THE MEETING
• Watch a livestream of the meeting online or view the recording any time after the meeting concludes at the following: cityofshastalake.gov/meetings • Submit public comment electronically before the meeting to:
[email protected]. Public comment by email will be read into the record during consideration of the item the comment addresses. Each public comment will be limited to three minutes of reading. Include the item number you are commenting on in the subject line of the email. Once the vote has taken place on an item, no additional public comments will beaccepted.
• Submit public comment by mail addressed to City Clerk, City of Shasta Lake, PO Box 777, Shasta Lake, CA 96019. Mailed comments must be received one day prior to the meeting to be included.
1.0 CALL TO ORDER – REGULAR MEETING:
1.1 Call to order (please place electronic devices on silent)
1.2 Statement for the record of Council Members present or absent
1.3 Pledge of Allegiance
1.4 Invocation
2.0 AWARDS & RECOGNITIONS:
2.1 Proclamation Recognizing September as Suicide Prevention Month to Sydney Stinger, Shasta County, Community Education Specialist / Suicide Prevention Program. (pg. 4)
3.0 PRESENTATIONS:
3.1 None
1 CITY COUNCIL MEETING AGENDA September 2, 2025
4.0 COMMISSION, COMMITTEE, AND OUTSIDE AGENCY REPORTS:
5.0 PUBLIC COMMENT:
This time is set aside for citizens to address the City Council on matters listed on the Consent Agenda as well as other items not included on the Regular Agenda. If your comments concern an item noted on the regular agenda, please address the Council when that item is open for public comment. Each speaker is allocated three (3) minutes to speak. Speakers may not cede their time. Comments should be limited to matters within the jurisdiction of the City. Council discussion or action cannot be taken on items not listed on the agenda other than to receive comments. Speaker forms are available from the City Clerk, 4477 Main Street, Shasta Lake, on the City’s website, or at the back of the meeting hall. If you have documents to present to members of Council, please provide a minimum of seven copies. Pursuant to The Brown Act, the City Council cannot take action on Public Comment Items.
6.0 CONSENT AGENDA:
The items listed under the Consent Agenda are considered routine business and will be voted on together by one motion unless a Council Member requests a specific item to be removed and discussed separately.
6.1 Minutes of the Special Meeting of August 19, 2025. (pg. 5)
6.2 Minutes of the Regular Meeting of August 19, 2025. (pg. 7)
6.3 Payrolls: (pg. 11)
Period Ending: 8/16/2025 Paid Date: 8/22/2025 $181,559.70
6.4 Checks, E-payments, and wires: (pg. 13)
7/31/2025 $206,453.61
8/07/2025 $965,024.90
6.5 Discussion and possible action on the second reading of an Ordinance Amending Title 17 – Zoning, Chapter 17.04 – “2040 General Plan” to allow continued use of Interim Zoning Ordinance and Overlay Maps. (pg. 21)
6.6 Discussion and possible action to approve a Resolution accepting the Quarterly Cash and Investment Report for the Period Ending June 30, 2025. (pg. 31)
6.7 Discussion and possible action to approve a Resolution accepting the Community Spirit Parkway Project and authorize the filing of a Notice of Completion. (pg. 37)
6.8 Discussion and possible action to approve a Resolution authorizing a supplemental budget appropriation and declaring SNL Group, Inc. the lowest 2 CITY COUNCIL MEETING AGENDA September 2, 2025
responsive bidder, and awarding them a construction contract for the Civic Center Mobility Project (Bid No. 2025-06). (pg. 41)
7.0 PUBLIC HEARINGS:
7.1 None
8.0 REGULAR AGENDA:
8.1 Discussion and possible action to approve a Resolution appointing two members to the Planning Commission for a term expiring August 2029. (pg. 47)
8.2 Discussion and possible action to approve a Resolution accepting the results of the Wastewater Utility Rate Study and directing staff to prepare a Public Notice in accordance with Prop 218 and set a Public Hearing for consideration of adoption of proposed rates for October 21, 2025. (pg. 59)
9.0 STAFF COMMENTS:
10.0 CITY COUNCIL COMMENTS AND REPORTS:
This is the time set aside for Council Members, who may so desire, to give brief comments or reports concerning City matters. The City Council may not enter into discussion on matters reported. Statements made by individual Council Members should not be interpreted as a statement of the City Council. The City Council only takes action by majority vote. • Brief reports by members of the Council regarding correspondence, events and/or meetings attended, and upcoming meetings/events.
• Suggestions/motions for future agenda items.
• In compliance with Assembly Bill 1234, Council will report on attendance at conferences/meetings/events where expenses are reimbursed by the City.
ADJOURNMENT:
Meetings are broadcast on the Wednesday following the meeting at 6:00 PM and the following Friday at 2:00 PM on Charter Channel 181. Videos of meetings are also available through the City website: www.cityofshastalake.org In Compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please call (530) 275-7407. Notification 48 hours prior to the meeting is requested to enable the City to make reasonable arrangements to ensure accessibility to this meeting (28 CFR 35.102-35.104 ADA Title II). 3 September 2025
Suicide Prevention Awareness Month
WHEREAS, suicide is a leading cause of death in the United States, claiming the lives of more than 49,000 people each year, with devastating effects on families, friends, and communities; and WHEREAS, in Shasta County and across the nation, suicide impacts people of all ages, backgrounds, and walks of life throughout our community; and WHEREAS, between 2021–2023Shasta County’s age-adjusted suicide rate averaged 25.2 deaths per 100,000 residents—more than double California’s rate of 10.3 per 100,000; and WHEREAS, prevention is possible, and research shows that by working together to raise awareness, reduce stigma, increase access to mental health care, and provide support and resources, we can save lives and offer hope to those who are struggling; and WHEREAS, local organizations, mental health providers, schools, first responders, and community members are committed to strengthening suicide prevention efforts in Shasta County through education, outreach, and compassion; and
WHEREAS, Suicide Prevention Awareness Month provides an opportunity to unite as a community, to remember those lost to suicide, to support survivors, and to share the message that help is available, hope is possible, and healing is real; and WHEREAS, everyone in Shasta County has a role to play in suicide prevention—by reaching out, listening without judgment, promoting kindness, and connecting people to resources like the 988 Suicide & Crisis Lifeline.
NOW, THEREFORE, I, Pamelyn Anne Morgan, Mayor of the City of Shasta Lake, do hereby proclaim September 2025 as Suicide Prevention Awareness Month in the City of Shasta Lake, and encourage all residents to take part in activities and initiatives that promote mental wellness, and reaffirms our collective commitment to preventing suicide, supporting those in crisis, and building a healthier, more hopeful community for all.
Dated this 2nd day of September, 2025
___
Pamelyn Anne Morgan, Mayor
4 CITY OF SHASTA LAKE
CITY COUNCIL SPECIAL MEETING MINUTES
MINUTES OF THE SPECIAL MEETING
HELD TUESDAY, AUGUST 19, 2025, AT THE
CITY COUNCIL CHAMBERS, 4488 RED BLUFF ST, SHASTA LAKE, CALIFORNIA
1.0 CALL TO ORDER – SPECIAL MEETING:
1.1 Mayor Morgan convened the special meeting at 5:45 PM
1.2 Council Members present: All
2.0 CLOSED SESSION
PUBLIC COMMENT for agendized items only, the City Council will allocate up to a maximum of three minutes per speaker for each agenda item.
There was no public comment.
The City Council will recess to Closed Session to discuss the following item(s).
Reportable action, if any, will be announced at the next regular meeting.
2.1 Pursuant to California Government Code Section 54956.8, Real Property Discussion APN # 006-130-044 and 006-130-045 Re: Property Donation Agency Designated Representatives: City Manager Jessaca Lugo.
ADJOURNMENT:
With no further business, Mayor Morgan adjourned the meeting at 5:55 PM. ____________________________
CHARITY TATLOW, CMC
City Clerk
5 6
CITY OF SHASTA LAKE
CITY COUNCIL MEETING MINUTES
MINUTES OF THE REGULAR MEETING
HELD TUESDAY, AUGUST 19, 2025, AT THE
CITY COUNCIL CHAMBERS, 4488 RED BLUFF ST, SHASTA LAKE, CALIFORNIA
1.0 CALL TO ORDER – REGULAR MEETING:
Mayor Morgan announced that the City Council took action to decline the donation of Real Property during the Closed Session meeting.
1.1 Mayor Morgan convened the regular meeting at 6:00 PM
1.2 Council Members present: Coates, Morgan, Jones, Ringwelski, Watkins
1.3 Pledge of Allegiance was led by Councilman Ringwelski
1.4 Invocation was led by Vice Mayor Jones
2.0 AWARDS & RECOGNITIONS:
2.1 Proclamation Recognizing the life and service of Steve Morgan
3.0 PRESENTATIONS:
3.1 None
4.0 COMMISSION, COMMITTEE, AND OUTSIDE AGENCY REPORTS:
4.1 None
5.0 PUBLIC COMMENT:
Dolores Lucero, Shasta Lake resident
Matt Plummer, Shasta County Supervisor
Jim Mark, Shasta Lake resident
Rob Rowland, Shasta Lake property owner
Pat Lind, Shasta Lake resident
Mayra Monarch, Community Member
Stephen Bell, Shasta Lake resident
Cheryle Yednak, Shasta Lake resident
6.0 CONSENT AGENDA:
6.1 Minutes of the Regular Meeting of July 15, 2025
6.2 Payrolls:
Period Ending: 7/19/2025 Paid Date: 7/25/2025 $194,243.90 Period Ending: 8/02/2025 Paid Date: 8/08/2025 $203,598.73
6.3 Checks, E-payments, and wires:
6/11/2025 $2,664,981.22
7 6/27/2025 $1,961,121.97
7/11/2025 $4,785,094.31
7/18/2025 $421,477.43
7/25/2025 $296,056.22
6.4 Monthly Report of Investment Transactions:
LAIF:
June $15,692,698.59
July $12,863,941.66
Chandler:
June $36,504,497.01
July $36,618,790.39
6.5 Resolution CC-2025-51 accepting a Contract Amendment – Shasta Dam Blvd.
Complete Streets Contract Engineering and Planning Services.
6.6 Resolution CC-2025-52 accepting the Tree Removal Project 2025 (Bid No. 2025- 08) and authorize the filing of a Notice of Completion.
6.7 Resolution CC-2025-53 accepting a Contract Amendment – Centimudi Water Storage Contract, increasing Engineering Design services and services during construction.
Motion/Vote
Councilman Watkins requested that items 6.5 and 6.7 be pulled for discussion.
By motion made/seconded (Coates/Jones), and carried unanimously, the remainder of the Consent Agenda was approved.
Motion/Vote 6.5
After discussion on Item 6.5, Mayor Morgan opened the Item for Public Comment.
Public Comment
Cheryle Yednak, Shasta Lake resident
By motion made/seconded (Coates/Watkins), and carried, Item 6.5 was approved.
Motion/Vote 6.7
After discussion on Item 6.7, Mayor Morgan opened the Item for Public Comment.
Public Comment
None
By motion made/seconded (Coates/Ringwelski), and carried, Item 6.7 was approved.
Councilman Watkins voted opposed.
7.0 PUBLIC HEARINGS:
8 7.1 Public Hearing and first reading of an Ordinance Amending Title 17 – Zoning, Chapter 17.04 – “2040 General Plan” to allow continued use of Interim Zoning Ordinance and Overlay Maps.
Public Comment
None
Motion/Vote:
By motion made/seconded (Watkins/Coates), and carried unanimously, the first reading of the Ordinance was approved.
8.0 REGULAR AGENDA:
8.1 Resolution CC-2025-54 accepting the 2025 Audit of the City’s Sewer System Management Plan (SSMP).
Public Comment
Rob Rowland, Shasta Lake property owner
Motion/Vote:
By motion made/seconded (Ringwelski/Coates), and carried unanimously, the item was approved.
8.2 Discussion and direction to hear and consolidate the appeal of the Planning Commission approval/denial of Use Permit No. 23-03.
Public Comment
Sonia Randhawa, Shasta Lake business owner
Motion/Vote:
City Council unanimously agreed to set the date to hear the Appeals on November 4, 2025.
8.3 Resolution CC-2025-55 designating a voting delegate and alternate for the 2025 League of California Cities (Cal Cities) Conference to be held in Long Beach, CA Public Comment
None
Motion/Vote:
By motion made/seconded (Morgan/Jones), and carried unanimously, Councilwoman Coates was designated as the voting delegate and Vice Mayor Jones as the alternate.
9.0 STAFF COMMENTS:
City Manager Jessaca Lugo announced that the Wastewater Ad Hoc Committee has concluded its work. The item will be brought before the City Council at the September 2, 2025, meeting.
Per Council’s request, staff is preparing a TNR presentation to be heard at an October 2025 meeting.
9 10.0 CITY COUNCIL COMMENTS AND REPORTS:
ADJOURNMENT:
With no further business, Mayor Morgan adjourned the meeting at 7:34 PM. ____________________________
CHARITY TATLOW, City Clerk
10 8/20/2025 9:05:21 AM Page 6 of 6
Payroll Check Register
City of Shasta Lake Report Summary
Pay Period: 8/3/2025-8/16/2025
Packet: PYPKT00664 - PE 8.16.2025
Payroll Set: City of Shasta Lake - 01
Type
6 Count
0 4,831.36
0.00 Regular Checks
Manual Checks
0 0.00
0 0.00
Amount
82 176,728.34
Total 88 181,559.70
Reversals
Voided Checks
Direct Deposits
11 12
13 14
15 16
17 18
19 20
Report and Recommendations 6.5 Reviewed and Approved
City Manager
AGENDA ITEM
City Council
TO: Mayor and City Council
FROM: Jessaca Lugo, City Manager
Jim Hamilton, Planner (Annuitant)
DATE: September 2, 2025
SUBJECT: SECOND READING OF AN ORDINANCE AMENDING TITLE 17 – ZONING, CHAPTER 17.04 – “2040 GENERAL PLAN” TO ALLOW
CONTINUED USE OF INTERIM ZONING ORDINANCE AND
OVERLAY MAPS
FILE NO.:
RECOMMENDATION
Staff and the Planning Commission recommend that the City Council approve the second reading of the attached ordinance, amending specified sections of Title 17 – Zoning, Chapter 17.04 - “2040 General Plan” of the City of Shasta Lake Municipal Code. These amendments will thereby allow the continued use of the interim zoning ordinance and related interim zoning overlay maps until completion and adoption of the comprehensive update to Title 17 – Zoning (CZO).
BACKGROUND
In August 2023, the Council adopted the interim zoning ordinance provisions and the interim zoning overlay maps. This was necessary to ensure that development entitlements and project activities would continue without interruption following the adoption of the new General Plan. Since its adoption, the zoning standards and entitlement streamlining of the interim zoning provisions have proven to be effective and flexible in applying General Plan land use direction, within the structure of Title 17.
Title 17, Chapter 17.04 – 2040 General Plan was codified to provide implementing authority for the use of interim zoning provisions. The chapter includes Sections
17.04.010 Interim zoning ordinance – Established; 17.04.020 - Interim zoning overlay map(s)—Established, and 17.04.030 - Interim zoning overlay districts and principal zone 21 districts—Applicability. These sections include a sunset date for use of the interim zoning provisions of twenty-two months (22) after the effective date of the ordinance without further Council action. The ordinance originally went into effect on September 1, 2023.
Adoption of the interim zoning provisions provided “breathing room” for the City to complete updates to the SLMC. Since the commencement of the comprehensive zoning update (October 2023), significant changes in state zoning laws have occurred that were not part of the original project scope. These changes must now be addressed within the policy framework of the General Plan and reflected in the zoning plan.
Approximately 70% of the draft zoning code (4 of 6 Divisions) has been drafted and reviewed by the Planning Commission. This includes the zoning plan, the general and administrative zoning provisions, the base and special zoning districts, and the overlay district zoning regulations. In July, the Planning Commission authorized the posting of the first draft of a citywide zoning map, which is based on this updated zoning plan.
Draft materials, as well as topic-related background, are available for public review and comment on the CZO project webpage at this address:
https://www.cityofshastalake.gov/1265/Comprehensive-Zoning-Update.
ENVIRONMENTAL DETERMINATION
On November 1, 2022, the City Council certified the Final Program Environmental Impact Report (FEIR) for the 2040 General Plan Update. The FPEIR includes a comprehensive analysis of land use changes anticipated under the 2040 General Plan, including necessary zoning modifications that are implemented by the IZO. The continued use of interim zoning procedures and overlay zoning maps does not modify the substantive provisions of the General Plan; instead, they simply serve to implement its direction.
The proposed amendments are therefore within the scope of the Findings of Fact and the adopted Mitigation Measures in the FPEIR. The Commission has determined (pursuant to CEQA Guidelines Section 15168 (c)(2)) that the substantive provisions of the California Environmental Quality Act (CEQA) have been satisfied, and no further CEQA documentation is necessary.
FISCAL IMPACTS
No direct impact on the General Fund. Possible savings because of the use of interim permitting standards reflected in the interim zoning ordinance. Provisions in the ordinance reduce or eliminate discretionary permit requirements for many small-scale commercial and multiple-family projects.
ATTACHMENTS
Ordinance Amending Title 17, Chapter 17.04 – 2040 GENERAL PLAN
DISTRIBUTION
City Council
22 City Attorney
Senior Planner
23 ORDINANCE NO. 2025-XXX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SHASTA LAKE MAKING TEXT AMENDMENTS TO CHAPTER 17.04 OF TITLE 17 - “ZONING” OF THE
SHASTA LAKE MUNICIPAL CODE AND THEREBY AUTHORISING THE
CONTINUED USE OF INTERIM ZONING ORDINANCES AND ZONING OVERLAY MAPS NECESSARY TO IMPLEMENT THE 2040 GENERAL PLAN.
WHEREAS Section 65300 et seq. of the California Government Code requires the city to prepare and adopt a comprehensive, long-range general plan for the physical development of the city; and
WHEREAS the 2040 General Plan of the City of Shasta Lake was adopted to guide development in compliance with state law on November 15, 2022, and became effective 30 days later; and
WHEREAS the Government Code requires a city to adopt ordinances and standards consistent with the direction provided by the General Plan and state law that regulate the development of property in order to protect public health, safety, the general welfare and the environment; and
WHEREAS Government Code Section 65860 authorizes a city or county to adopt ordinances necessary to manage development consistent with a general plan, specific plan, or zoning proposal that the legislative body, planning commission or the development services department is considering or studying within a reasonable time; and
WHEREAS Chapter 17.04 - Sections 17.04.010 Interim zoning ordinance – Established;
17.04.020 - Interim zoning overlay map(s)—Established, and 17.04.030 - Interim zoning overlay districts and principal zone districts—Applicability establishes a sunset date for use of the adopted interim zoning provisions; and
WHEREAS comprehensive amendments and updates to Title 17 – Zoning of the Municipal Code, as well as amendments to land use districts established in the 2040 General Plan, are necessary to achieve consistency with the General Plan policies, its related Housing Element, and significant changes in state law is under consideration; and
WHEREAS, the Planning Commission conducted a noticed public hearing on August 7, 2025, and considered public testimony as well as written materials and other information in the record and made a recommendation to the City Council supporting adoption of these amendments to Title 17; and
WHEREAS, the City Council conducted a noticed public hearing on August 19, 2025, and considered public testimony as well as written materials and other information in the record regarding the proposed amendments; and
24 WHEREAS a notice of the proposed ordinance was published following the requirements of state law in the Intermountain News, a paper of general circulation, on July 23 (Planning Commission hearing) and July 30, 2025.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Shasta Lake does hereby ordain as follows:
SECTION 1: Findings, determinations, and direction:
1. Changes in state zoning and housing laws have occurred since the adoption of Chapter 17.04, and this requires the continued use of the interim zoning provisions and zoning overlay maps while these changes are integrated into the comprehensive zoning ordinance update.
2. Continued application of the interim zoning provisions established by Chapter
17.04 is necessary to preserve and protect the health, safety, and general welfare of the businesses and residents of the city until necessary revisions to Title 17- Zoning are completed. This will avoid the potential need to adopt limits on development, which could result in the loss of business and housing opportunities needed by the city's residents.
3. New state zoning and land use laws make this extension necessary. This includes, but is not limited to, the adoption of: AB 2011; SB 6; AB 1287; SB 423; AB 835; AB 2904, as well as the adoption of State Fire Hazard Severity Zone (FHSZ) maps.
The FHSZ maps serve to identify areas where there is a higher likelihood of wildfire occurrence and severity in order to guide land use planning and implementation of appropriate building standards, which will require the development of new zoning regulations necessary to apply such standards.
4. The ordinance amendments will help avoid incompatible or inconsistent property uses and development, while facilitating continued development of zoning standards consistent with the 2040 General Plan policy direction that will comply with these changes in state law.
5. The ordinance amendments as reflected in Exhibit 1 to this ordinance are consistent with the General Plan because they will allow for the continued use of zoning provisions that provide a framework for efficient review of new development and uses of property while supporting the efficient and expeditious handling of land use decisions.
6. The City Council hereby directs that the interim zoning provisions and zoning overlay maps adopted on August 1, 2023, are readopted and shall remain uncodified ordinances of the Municipal Code. They shall continue to apply to all development applications and land use approvals until amended or replaced by action of the City Council. The ordinances shall be available to the public at all times through the city website and at the Development Services Department. 25 7. The City Council directs the Planning Commission and the Director of Development Services to continue the comprehensive study and modification of the city's zoning plan, including all its relevant provisions and zoning map(s), to achieve full consistency with the 2040 General Plan and applicable state laws. The zoning plan (CZO) shall be prepared and returned to the City Council for consideration and possible adoption, as soon as reasonably possible, consistent with requirements for public participation and legal noticing.
8. All City departments, officials and employees, with the duty or authority to issue permits, licenses, or zoning entitlements, shall apply the provisions of this ordinance. No license, certificate, permit, or renewal or extension thereof shall be issued where the same would be in conflict with the provisions of the ordinance or the law. Any such license, permit, or certificate issued in conflict herewith shall be invalid.
9. The City Council finds that these proposed actions and determinations are consistent with the City’s General Plan by supporting the adopted goals, objectives, policies, and implementation measures.
SECTION 2: Severability: If any provision of this ordinance or the applications thereof to any person, property or circumstances is held invalid, the remainder of the ordinance and the applications of such provision will remain in effect to the extent permitted by law.
SECTION 3: Municipal Code Amendments—Upon the effective date of this ordinance amendment, the following sections of the municipal code are modified to read as follows.
I. Section 17.04.010 - Interim zoning ordinance – established, of the City of Shasta Lake Municipal Code to read as follows:
The city council establishes the 2040 General Plan Interim Zoning Ordinance, which is hereby incorporated by reference into Title 17- Zoning. The Interim Zoning Ordinance shall be used with other applicable provisions of Title 17 in the review and regulation of all development and use of property within the city limits.
II. Section 17.04.020 - Interim Zoning Overlay Map (s) – established, of the City of Shasta Lake Municipal Code to read as follows:
The city council establishes and adopts the 2040 General Plan "Interim Zoning Overlay Maps" which are hereby incorporated by reference into Title 17 - Zoning.
These maps and the related zone districts apply to all properties within the city limits of Shasta Lake, consistent with the land use districts as established on the 2040 General Plan Land Use Diagram. The interim zoning overlay maps shall be used as necessary to apply the Interim Zoning Ordinance to the development and use of all property within the city limits.
26 III.Section 17.04.030: Interim zoning overlay districts and principal zone districts – applicability, of the City of Shasta Lake Municipal Code to read as follows:
The 2040 General Plan Interim Zoning Overlay Districts are hereby created and incorporated by reference into this title. These districts shall apply to all lands within the city, including the principal zoning districts set forth in this title, and which are reflected on the zoning map of the City of Shasta Lake. Any principal zoning district that is not identified on the official principal zone maps of the city on August 31, 2023, shall no longer be applicable. Any lands subject to this title which are not designated in the zoning plan with a principal district designation, shall be subject to the applicable district designation as reflected in the 2040 General Plan Interim Zoning Overlay map(s), and shall also be subject to the development requirements and standards of the most applicable principal zoning district as determined by the development services director. The decision of the development services director may be appealed to the planning commission, as specified in Section 17.94.060 of this title.
SECTION 4: Effective Date: This ordinance shall become effective thirty (30) days after its second reading and posting, as provided by the Municipal Code.
I HEREBY CERTIFY that the foregoing Ordinance was introduced and read at a regular meeting of the City Council of the City of Shasta Lake held on the 19th day of August 2025, and a second reading was conducted on the 2nd day of September 2025.
PASSED, APPROVED, AND ADOPTED this 2nd day of September, 2025, by the following vote:
AYES:
NOES:
ABSENT:
_______________________________
PAMELYN ANNE MORGAN, Mayor
ATTEST:
____________________________
CHARITY TATLOW, CMC
City Clerk
27 EXHIBIT 1: Municipal Code Amendments
New provisions are indicated in RED UNDERLINED text, and deleted provisions are indicated by RED STRIKEOUT text.
1. Amend Section 17.04.010 - Interim zoning ordinance – established, of the City of Shasta Lake Municipal Code to read as follows:
The city council establishes the 2040 General Plan Interim Zoning Ordinance, which is hereby incorporated by reference into Title 17- Zoning. The Interim Zoning Ordinance shall be used with other applicable provisions of Title 17 in the review and regulation of all development and use of property within the city limits. Unless extended by separate city council action, the "2040 General Plan Interim Zoning Ordinance" shall sunset and be of no further authority twenty-two (22) months after the effective date of the ordinance adopting these provisions.
2. Amend Section 17.04.020 - Interim Zoning Overlay Map (s) – established, of the City of Shasta Lake Municipal Code to read as follows:
The city council establishes and adopts the 2040 General Plan "Interim Zoning Overlay Maps" which are hereby incorporated by reference into Title 17 - Zoning.
These maps and the related zone districts apply to all properties within the city limits of Shasta Lake, consistent with the land use districts as established on the 2040 General Plan Land Use Diagram. The interim zoning overlay maps shall be used as necessary to apply the Interim Zoning Ordinance to the development and use of all property within the city limits. Unless extended by separate city council action, the "2040 General Plan Interim Zoning Overlay Maps" shall sunset and be of no further authority twenty-two (22) months after the effective date of the ordinance adopting these provisions.
3. Amend Section 17.04.030: Interim zoning overlay districts and principal zone districts – applicability, to the City of Shasta Lake Municipal Code to read as follows:
The 2040 General Plan Interim Zoning Overlay Districts are hereby created and incorporated by reference into this title. These districts shall apply to all lands within the city, including the principal zoning districts set forth in this title, and which are reflected on the zoning map of the City of Shasta Lake. Any principal zoning district which that is not identified on the official principal zone maps of the city on the effective date of this ordinance August 31, 2023, shall no longer be applicable. Any lands subject to this title which are not designated in the zoning plan with a principal district designation, shall be subject to the applicable district designation as reflected in the 2040 General Plan Interim Zoning Overlay map(s), and shall also be subject to the development requirements and standards of the most applicable principal zoning district as determined by the development services director. The decision of the development services director may be appealed to the planning 28 commission, as specified in Section 17.94.060 of this title. Unless extended by city council action, the provisions of this section shall sunset and be of no further authority 22- months after the effective date of the ordinance adopting these provisions.
29 30
Report and Recommendations 6.6 Reviewed and Approved
City Manager
AGENDA ITEM
City Council
____________________________________________________________ TO: Mayor and City Council Members
FROM: Wendy Howard, Finance Director
DATE: September 2, 2025
SUBJECT: CASH AND INVESTMENT REPORT FOR JUNE 30, 2025
FILE NO:
RECOMMENDATION:
Staff submits for approval the attached Cash & Investment Report for the period ending June 30, 2025.
BACKGROUND:
Per California Government Code section 53600.5 and the City’s investment policy, the primary objectives of the City’s investment program, listed in order of priority, are safety, liquidity and return. The City’s investment policy, which complies with Code, is designed to meet the requirements of Code and ensure that the City’s funds are prudently managed
The City’s investment policy requires that the Finance Director submit an investment report to the City Council (governing body) each quarter that consists of the following information:
issuers (bank or institution)
type of investment or description
dollar amount
interest rate
market valuation
percent of each investment within the overall portfolio date of maturity
31 The source of the valuation of each investment is required to be reported to the City Council. Additionally, a statement indicating the agency’s ability, or lack thereof, to meet the next six (6) months cash flow requirements is required.
Each of the criteria listed above has been addressed in the attached analysis of the cash and investments that the City held on June 30, 2025. The source of market valuations has been quoted from documents received from the custodian bank or the institution holding the investments. If staff did not receive this information from the bank or institution, market value has been listed as equal to the carrying amount. Additionally, we have indicated whether funds are “restricted” for a particular purpose. Restricted funds are usually the amount of funds required to service the last debt service payment on a loan or funds for special projects (water improvement project and housing rehabilitation).
On an overall basis, the City of Shasta Lake should be able to meet its cash flow requirements for the next six months.
Cornerstone Community Bank was acquired by Plumas Bank, with whom we have checking and money market accounts.
FISCAL IMPACTS:
None
ATTACHMENTS:
• City of Shasta Lake Cash & Investment Report
• Resolution for the approval of the June 30, 2025 Cash & Investment Report • Cash and Investment Notes
DISTRIBUTION:
City of Shasta Lake City Council
City of Shasta Lake Files
32 This is a summary of the City’s investments arranged by the different institutions holding the assets.
Market Date of
Bank or Institution Description Amount Interest Rate Valuation % of Portfolio Maturity Plumas Bank Checking Account $1,516,606 n/a $1,516,606 2.7040% n/a Plumas Bank Money Market Account $2,223,782 n/a $2,223,782 3.9648% n/a City of Shasta Lake Petty Cash $2,100 n/a $2,100 0.0037% n/a US Bank Investments $36,774,464 variable $36,330,650 64.7748% Varies State of California LAIF-City $15,692,699 4.40% $15,711,504 28.0124% n/a Shasta County Trustee
(Restricted) LAIF-County* $302,650 4.40% $303,013 0.5402% n/a Grand Total $56,512,301 $56,087,654 100%
CalPERS CERBT ** Retiree Health Benefit Trust $10,512,018 variable $10,512,018 n/a n/a CalPERS CEPPT ** Retiree Pension Benefit Trust $106,074 variable $106,074 n/a n/a *Restricted = Debt Service Reserve Requirements
** This is a portfolio investment and not a bank deposit. Each employer owns a percentage of the portfolio, and does not have direct ownership of the securities in the portfolio.
It is expected that the City of Shasta Lake will be able to meet its cash flow requirements for the next six months. ____________________________________ 30-Jun-2025
Wendy Howard Date
Finance Director
City of Shasta Lake
Analysis of Cash and Investments
June 30, 2025
33 RESOLUTION CC-2025-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SHASTA LAKE
ACCEPTING THE QUARTERLY CASH AND INVESTMENT REPORT FOR THE PERIOD ENDING JUNE 30, 2025
WHEREAS, the Chief Fiscal Officer is required under Senate Bills 564 and 866 to provide a quarterly investment report to the City Council, and
WHEREAS, the report includes the issuers, type of investment or description, dollar amount, interest rate, market valuation, the percent of each investment within the overall portfolio, the date of maturity, and
WHEREAS, the source of the valuation of each investment has been quoted from documents received from the bank or institution that is the issuer of each of the investments and when not supplied the amount has been listed as equal to the carrying value, and
WHEREAS, on an overall basis, the City of Shasta Lake will be able to meet its cash flow requirements for the next six months.
NOW, THEREFORE BE IT RESOLVED that the Shasta Lake City Council accepts the Quarterly Cash and Investment Report for the Period ending June 30, 2025 for review.
PASSED, APPROVED, AND ADOPTED this 2nd day of September, 2025, by the following vote:
AYES:
NOES:
ABSENT:
_______________________________
PAMELYN ANNE MORGAN, Mayor
ATTEST:
____________________________
CHARITY TATLOW, CMC
City Clerk
34 Cash Accounts Held at June 30, 2025
CCB Checking Account - The City’s checking account at Cornerstone Community Bank is primarily used to manage the day-to-day operations of the City. The Money Market account is used to facilitate liquidity. Cornerstone is matching LAIF interest.
Wells Fargo Advisors CD’s (Managed by Chandler) - The Wells Fargo account holds a mix of investments, which comply with California regulations. The yield on these investments varies.
Local Agency Investment Fund (LAIF)-City - LAIF is where the City keeps its idle cash for all funds. It’s essentially the City’s cash reserves and is necessary for liquidity. This type of account allows the City to deposit and withdraw funds a maximum of 15 transactions per month without fees or penalties.
LAIF-County - The County LAIF account is essentially a reserve fund for the debt service for the USDA sewer loan. This $5.6 million loan was used to finance the expansion of the wastewater treatment plant. The final payment on the bond is due December 2034. 35 36
Report and Recommendations 6.7 Reviewed and Approved
City Manager
AGENDA ITEM
City Council
TO: Mayor and City Council Members
FROM: Will Bond P.E., Public Works Director/City Engineer
DATE: September 2, 2025
SUBJECT: AUTHORIZATION TO FILE A NOTICE OF COMPLETION FOR COMMUNITY SPIRIT PARKWAY (BID NO. 2025-07)
FILE NO.:
RECOMMENDATION
Staff requests that the City Council consider accepting the project as complete and authorize the filing of a Notice of Completion (NOC) for the Community Spirit Parkway – Bid No. 2025-07.
BACKGROUND
On March 18, 2025, the City Council approved resolution CC-2025-08 authorizing the City Manager to enter into a contract with JS Builders, Inc. for the purposes of performing the above project.
The Community Spirit Parkway project consists of new park comprised of artwork and a community space at the northeastern portion of the Civic Center campus. The project was designed by SSA Landscape Architects of Santa Cruz, CA. With support from several community members, the project design process began in October of 2024.
Construction began in May and completed in August 2025. The City received a Caltrans Clean California Grant to design and construct this project.
Staff has determined that the work specified in the contract has been completed and is in substantial conformance with the Plans and Specifications. Therefore, staff recommends that the Council accept the Project and authorize the filing of a Notice of Completion at the Shasta County Recorder’s Office.
37 FISCAL IMPACTS
Awarded construction contract: $ 168,500.00
Change Orders to contract: $ 8,345.00
Approved expenditure not to exceed: $ 200,000.00
Total project construction cost: $ 176,845.00
This project is funded through currently budgeted Clean California grant funds.
ATTACHMENTS
Resolution
DISTRIBUTION
City Council
38 RESOLUTION CC 2025-XX
______________________________________________________________________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SHASTA LAKE
ACCEPTING THE COMMUNITY SPIRIT PARKWAY PROJECT AND AUTHORIZING
THE FILING OF A NOTICE OF COMPLETION
______________________________________________________________________ WHEREAS, the City entered into a contract with JS Builders, Inc. for the construction of the Community Spirit Parkway Project; and
WHEREAS, JS Builders, Inc. has completed the project to the satisfaction of City staff.
NOW, THEREFORE BE IT RESOLVED THAT the City of Shasta Lake City Council hereby accepts the Community Spirit Parkway Project (2025-07) as complete and authorizes staff to file a Notice of Completion with the Shasta County Recorder’s Office.
PASSED, APPROVED, AND ADOPTED this 2nd day of September, 2025, by the following vote:
AYES:
NOES:
ABSENT:
_______________________________
PAMELYN ANNE MORGAN, Mayor
ATTEST:
____________________________
CHARITY TATLOW, CMC
City Clerk
39 40
Report and Recommendations 6.8 Reviewed and Approved
City Manager
AGENDA ITEM
City Council
TO: Mayor and City Council Members
FROM: Will Bond, City Engineer/Public Works Director
DATE: September 2, 2025
SUBJECT: SUPPLEMENTAL BUDGET APPROPRIATION AND A
RESOLUTION OF THE CITY OF SHASTA LAKE CITY COUNCIL
TO DECLARE SNL GROUP, INC. THE LOWEST RESPONSIVE,
RESPONSIBLE BIDDER, AWARD A CONSTRUCTION
CONTRACT FOR THE CIVIC CENTER MOBILITY PROJECT (BID
NO. 2025-06)
FILE NO.: (New)
RECOMMENDATION
Staff requests that the City Council consider a supplemental budget appropriation in the amount of $850,000.00 and award the Civic Center Mobility project to SnL Group, Inc. of Redding, CA. This is for the bid amount of $646,600.00, and a contract contingency of $203,400.00.
BACKGROUND
The Civic Center Mobility project consists of the construction of curb, gutter, sidewalk, concrete driveways, crosswalks, traffic calming measures along Front Street, and McConnel Avenue. Also included will be a multi-use path along the east side of Civic Center campus from Main Street to Red Bluff Street. The project design process began in December of 2024 by Dokken Engineering. The City received a Regional Early Action Program (REAP) grant, in the amount of $894,117.65, to design and construct this project.
The City advertised the project for bid on July 29th, 2025, and five (5) bids were received on August 28, 2025. All bids were deemed responsive. The Engineer’s estimate was $582,000. The bids ranged from a low bid of $646,600 (11% above the Engineer’s 41 estimate) to a high bid of $933,305 (60% above the Engineer’s estimate). A Bid Summary is attached.
The City had budgeted $475,000.00 in FY24/25 for the project, of which approximately $136,000 was spent. The original grant amount was $950,000 and was approved by the City Council as a supplemental budget appropriation in December 2023 (CC-2023-078).
Later, staff were made aware that the REAP grant was greatly reduced due to state budget cuts. Several months later, staff were notified that the state’s budget was reconsidered and a total of $894,117.65 was granted for this project.
The large contingency request is to allow for potential change order work to construct curb, gutter, sidewalk, and driveway work to be completed along the south side of Main Street between McConnel Avenue and Median Avenue.
FISCAL IMPACTS:
This project is funded through the REAP 2.0 grant (Acct: 270-340-6272), which has approximately $758,000 remaining, after expending approximately $136,000 in FY24/25 on Engineering Design and Contract Documents. The remaining $92,000 will be funded by the Transportation Capital Reserve (Acct: 250-340-6101).
ATTACHMENTS
Bid Summary, Resolution
DISTRIBUTION
City Council
City Manager
Finance Department
42 LOCATION MAP:
Main Street – Potential
Additional Work
43 RESOLUTION CC 2025-XX
______________________________________________________________________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SHASTA LAKE CITY
COUNCIL TO APPROVE A SUPPLEMENTAL BUDGET APPROPRIATION IN THE AMOUNT OF $850,000 AND TO DECLARE SNL GROUP, INC. THE LOWEST
RESPONSIVE, RESPONSIBLE BIDDER, AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $646,600.00 TO SNL GROUP, INC. FOR THE CONSTRUCTION
OF THE CIVIC CENTER MOBILITY PROJECT AND APPROVE TOTAL
EXPENDITURE FOR CONSTRUCTION NOT TO EXCEED $850,000.00
______________________________________________________________________ WHEREAS, the City advertised for competitive bids to construct the above project starting on July 29, 2025; and
WHEREAS, the City opened five (5) competitive bids on August 28, 2025; and WHEREAS, the lowest responsive, responsible bidder was SnL Group, Inc. of Redding, CA, with a bid of $646,600.00; and
WHEREAS, in addition to the construction contract funds, contingency funds need to be allocated, creating a construction budget of $850,000.00 NOW, THEREFORE, BE IT RESOLVED THAT:
1. The City Council of the City of Shasta Lake hereby approves a supplemental budget request in the amount of $850,000 to be used for the construction of the Civic Center Mobility Project.
270-340-6272 REAP 2.0 grant $758,000
250-340-6101 Transportation fund $ 92,000
2. The City of Shasta Lake hereby declares SnL Group, Inc., the lowest responsive, responsible bidder, awards a construction contract in the amount of $646,600.00 to SnL Group, Inc. for the construction of the Civic Center Mobility project, and approves a total expenditure for construction not to exceed $850,000.00
PASSED, APPROVED, AND ADOPTED this 2nd day of September 2025, by the following vote:
AYES:
NOES:
ABSENT:
_______________________________
PAMELYN ANNE MORGAN, Mayor
ATTEST:
44 ____________________________
CHARITY TATLOW, CMC
City Clerk
45 Item # Description Est. Quantity Unit Unit Price Total Unit Price Total Unit Price Total Unit Price Total 1 Mobilization 1 LS $29,100.00 $29,100.00 $12,727.00 $12,727.00 $20,000.00 $20,000.00 $35,970.00 $35,970.00 2 Traffic Control 1 LS $15,000.00 $15,000.00 $22,500.00 $22,500.00 $21,200.00 $21,200.00 $17,133.00 $17,133.00 3 Construction Staking 1 LS $10,000.00 $10,000.00 $11,000.00 $11,000.00 $15,273.00 $15,273.00 $9,609.00 $9,609.00 4 Erosion & Sediment Control 1 LS $15,000.00 $15,000.00 $1,500.00 $1,500.00 $4,000.00 $4,000.00 $17,412.70 $17,412.70 5 Clearing & Grubbing 1 LS $5,000.00 $5,000.00 $10,000.00 $10,000.00 $7,000.00 $7,000.00 $22,937.70 $22,937.70 6 Roadway Excavion 716 CY $60.00 $42,960.00 $125.00 $89,500.00 $130.00 $93,080.00 $124.10 $88,855.60 7 Class 2 Aggregate Base 212 CY $100.00 $21,200.00 $175.00 $37,100.00 $185.00 $39,220.00 $231.50 $49,078.00 8 Hot Mixed Asphalt (Type A) 177 TON $220.00 $38,940.00 $265.00 $46,905.00 $250.00 $44,250.00 $303.70 $53,754.90 9 Retaining Wall (Masonry Wall) 530 SF $50.00 $26,500.00 $80.00 $42,400.00 $75.00 $39,750.00 $106.10 $56,233.00 10 Minor Concrete (Minor Structure) 3 CY $3,000.00 $9,000.00 $1,000.00 $3,000.00 $500.00 $1,500.00 $842.10 $2,526.30 11 18" Reinforced Concrete Pipe Culvert 40 LF $250.00 $10,000.00 $156.00 $6,240.00 $200.00 $8,000.00 $193.80 $7,752.00 12 24" Reinforced Concrete Pipe Culvert 15 LF $300.00 $4,500.00 $1.00 $15.00 $220.00 $3,300.00 $434.80 $6,522.00 13 Detectable Warning Strip 84 SF $70.00 $5,880.00 $40.00 $3,360.00 $45.00 $3,780.00 $64.90 $5,451.60 14 Minor Concrete (Curb & Gutter) 1 243 LF $54.00 $67,122.00 $60.00 $74,580.00 $60.00 $74,580.00 $83.20 $103,417.60 15 Minor Concrete (Driveway) 907 SF $22.00 $19,954.00 $42.00 $38,094.00 $21.00 $19,047.00 $38.80 $35,191.60 16 Minor Concrete (Sidewalk) 14 237 SF $13.00 $185,081.00 $11.00 $156,607.00 $12.00 $170,844.00 $11.50 $163,725.50 17 Minor Concrete (Curb Ramp) 267 SF $27.00 $7,209.00 $70.00 $18,690.00 $23.00 $6,141.00 $62.90 $16,794.30 18 Adjust Existing Manhole Frames and Lids to Grade 2 EA $2,000.00 $4,000.00 $500.00 $1,000.00 $1,150.00 $2,300.00 $577.10 $1,154.20 19 Replace and Adjust Traffic Boxes to Grade 2 EA $1,000.00 $2,000.00 $600.00 $1,200.00 $1,500.00 $3,000.00 $440.80 $881.60 20 Storm Drainage (Front Street) 1 LS $10,000.00 $10,000.00 $9,000.00 $9,000.00 $2,275.00 $2,275.00 $10,791.00 $10,791.00 21 Street Lighting 1 LS $20,000.00 $20,000.00 $11,867.00 $11,867.00 $37,000.00 $37,000.00 $8,758.20 $8,758.20 22 Chain Link Fence (CL-4) 130 LF $45.00 $5,850.00 $142.00 $18,460.00 $99.00 $12,870.00 $62.70 $8,151.00 23 Relocate (E) Post-Mounted Roadside Sign 3 EA $450.00 $1,350.00 $400.00 $1,200.00 $250.00 $750.00 $545.00 $1,635.00 24 Thermoplastic Pavement Marking 1 140 SF $3.83 $4,366.20 $8.50 $9,690.00 $8.50 $9,690.00 $9.80 $11,172.00 25 Remove Thermoplastic Pavement Marking 137 SF $12.00 $1,644.00 $10.00 $1,370.00 $10.00 $1,370.00 $10.90 $1,493.30 26 Rock Slope Protection (20LB, Class I, Method B) 2 CY $1,000.00 $2,000.00 $2,000.00 $4,000.00 $350.00 $700.00 $554.60 $1,109.20 27 Rock Cobble Surfacing 1 402 SF $7.25 $10,164.50 $5.50 $7,711.00 $6.00 $8,412.00 $2.70 $3,785.40 28 Hydroseed 4 917 SF $1.25 $6,146.25 $1.30 $6,392.10 $1.24 $6,097.08 $1.50 $7,375.50 29 Reset Mailbox Cluster 1 EA $2,000.00 $2,000.00 $491.90 $491.90 $500.00 $500.00 $1,635.00 $1,635.00 Base Bid Total: $581,966.95 $646,600.00 $655,929.08 $750,306.20 Subcontractors: Subcontractors:
Eagle Paving Unico SPM
SPM SPM M&S Environmental
McEntire Landscaping M&S Environmental Jewell's Concrete Cutting Jefferson State Higways Terry Hansen Electric Eagle Paving Item # Description Est. Quantity Unit Unit Price Total Unit Price Total 1 Mobilization 1 LS $23,600.00 $23,600.00 $27,500.00 $27,500.00 2 Traffic Control 1 LS $100,000.00 $100,000.00 $127,200.00 $127,200.00 3 Construction Staking 1 LS $12,500.00 $12,500.00 $17,900.00 $17,900.00 4 Erosion & Sediment Control 1 LS $3,000.00 $3,000.00 $12,800.00 $12,800.00 5 Clearing & Grubbing 1 LS $22,500.00 $22,500.00 $59,200.00 $59,200.00 6 Roadway Excavion 716 CY $141.00 $100,956.00 $67.25 $48,151.00 7 Class 2 Aggregate Base 212 CY $196.00 $41,552.00 $257.75 $54,643.00 8 Hot Mixed Asphalt (Type A) 177 TON $276.00 $48,852.00 $373.00 $66,021.00 9 Retaining Wall (Masonry Wall) 530 SF $87.00 $46,110.00 $70.00 $37,100.00 10 Minor Concrete (Minor Structure) 3 CY $400.00 $1,200.00 $1,070.00 $3,210.00 11 18" Reinforced Concrete Pipe Culvert 40 LF $240.00 $9,600.00 $335.00 $13,400.00 12 24" Reinforced Concrete Pipe Culvert 15 LF $400.00 $6,000.00 $531.00 $7,965.00 13 Detectable Warning Strip 84 SF $75.00 $6,300.00 $42.00 $3,528.00 14 Minor Concrete (Curb & Gutter) 1 243 LF $58.00 $72,094.00 $86.25 $107,208.75 15 Minor Concrete (Driveway) 907 SF $20.60 $18,684.20 $20.75 $18,820.25 16 Minor Concrete (Sidewalk) 14 237 SF $16.00 $227,792.00 $11.50 $163,725.50 17 Minor Concrete (Curb Ramp) 267 SF $27.00 $7,209.00 $42.50 $11,347.50 18 Adjust Existing Manhole Frames and Lids to Grade 2 EA $1,000.00 $2,000.00 $1,385.00 $2,770.00 19 Replace and Adjust Traffic Boxes to Grade 2 EA $750.00 $1,500.00 $1,865.00 $3,730.00 20 Storm Drainage (Front Street) 1 LS $9,700.00 $9,700.00 $11,500.00 $11,500.00 21 Street Lighting 1 LS $34,800.00 $34,800.00 $53,500.00 $53,500.00 22 Chain Link Fence (CL-4) 130 LF $115.00 $14,950.00 $152.00 $19,760.00 23 Relocate (E) Post-Mounted Roadside Sign 3 EA $450.00 $1,350.00 $3,550.00 $10,650.00 24 Thermoplastic Pavement Marking 1 140 SF $8.50 $9,690.00 $11.25 $12,825.00 25 Remove Thermoplastic Pavement Marking 137 SF $10.00 $1,370.00 $21.00 $2,877.00 26 Rock Slope Protection (20LB, Class I, Method B) 2 CY $400.00 $800.00 $2,925.00 $5,850.00 27 Rock Cobble Surfacing 1 402 SF $7.00 $9,814.00 $7.00 $9,814.00 28 Hydroseed 4 917 SF $1.30 $6,392.10 $3.50 $17,209.50
29 Reset Mailbox Cluster 1 EA $250.00 $250.00 $3,100.00 $3,100.00 Base Bid Total: $840,565.30 $933,305.50
Subcontractors: Subcontractors
Wards Concrete Giles Excavating
M&S Environmental Cal-Electro
Jefferson State Highways Sharrah Dunlap Sawyer
Terry Hansen Electric Humboldt Fence Co.
SPM SPM
Sharrah Dunlap Sawyer Highway Specialties
McEntire Landscaping
KSM Masonry
Subcontactors:
DIR: 1000001423
CSLB Lic: 438763 CSLB Lic: 423132
DIR: 1000011081
Sunrise Excavating
M&S Environmental KSM Masonry
Muse Concrete Contractors
DIR: 2000004325
Civic Center Mobility Project
Bid Opening Date: 8/28/25
Bid No. 2025-06
DIR: 1000008025
SnL Group, Inc.
Engineer's Estimate CSLB Lic: 987763
DIR: 10000133338
S.T. Rhoades Construction
CSLB Lic: 930684
JS Builders, Inc.
CLSB Lic: 1109971
46 Report and Recommendations 8.1 Reviewed and Approved
City Manager
AGENDA ITEM
City Council
TO: Mayor and City Council Members
FROM: Charity Tatlow, City Clerk
DATE: September 2, 2024
SUBJECT: APPOINTMENT TO THE PLANNING COMMISSION – TWO (2) SEATS
FILE NO.: C-080-634-080
RECOMMENDATION
Staff recommends that the City Council review and consider applicants for two appointments to the Planning Commission to fill two vacant seats for a term expiring August 2029.
BACKGROUND
At the July 15, 2025, City Council meeting, the City Council voted to align the terms of two Planning Commission seats so that all appointments follow a consistent schedule. The term adjustment aligned two terms to expire in August 2025. Both vacancies were advertised for terms expiring in August 2029.
The Planning Commission is a five-member Commission. Two seats are currently available due to term expirations. A Vacancy Notice was posted locally, as per the adopted policy, and published in the Intermountain News to advertise the vacancies.
The City has received one (3) Letter of Interest/Resume from the following individuals:
• Charles “Duke” Fleming
• Cherrel Kirkland (reappointment)
• Gracious Palmer (reappointment)
Staff is requesting that the City Council select two applicants to fill the vacancies for terms expiring in August 2029.
47 FISCAL IMPACTS
No fiscal impact
ATTACHMENTS
Resolution CC-2025-XX
Notice of Vacancy
Letter/Resume for Charles “Duke” Fleming
Letter/Resume for Cherrel Kirkland
Letter/Resume for Gracious Palmer
48 RESOLUTION CC 2024-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SHASTA LAKE APPOINTING ________________ AND ________________ TO THE SHASTA LAKE PLANNING COMMISSION FOR A TERM EXPIRING IN AUGUST 2029
WHEREAS, the City Council of the City of Shasta Lake authorized the creation of a City Planning Commission, consisting of five members appointed by the City Council, pursuant to Municipal Code Chapter 2.16; and
WHEREAS, there are two vacancies on the Commission; and WHEREAS, the Vacancy Notice has been posted per the current policy; and WHEREAS, the City Council has received letters & resumes from three applicants seeking appointment.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Shasta Lake that _______________ and _______________ are hereby appointed to the Shasta Lake Planning Commission for a term that expires in August 2029.
PASSED, APPROVED, AND ADOPTED this 2nd day of September, 2025, by the following vote:
AYES:
NOES:
ABSENT:
_______________________________
PAMELYN ANNE MORGAN, Mayor
ATTEST:
____________________________
CHARITY TATLOW, CMC
City Clerk
49 NOTICE OF VACANCY
CITY OF SHASTA LAKE PLANNING COMMISSION
Pursuant to Government Code Section 54974
NOTICE IS HEREBY GIVEN that, due to upcoming term expirations in August 2025, the City is advertising for two (2) positions on the Shasta Lake Planning Commission. The term for the positions expires in August 2029.
The Planning Commission serves as an advisory body to the City Council on various issues related to planning and development within the City of Shasta Lake. The Commission reviews and approves proposed Use Permits, Parcel Maps, Subdivision Maps, Variances, and Grading Permits and makes recommendations to the City Council on General Plan and Zoning amendments and other assigned matters. The Planning Commission also reviews environmental documents and adopts findings pursuant to the California Codes and the California Environmental Quality Act.
Interested applicants must reside or own a business within the city limits of the City of Shasta Lake. Applicants cannot be employees of the City or hold a public office where the duties and responsibilities of that office are incompatible with the duties and responsibilities of the appointed position.
If you are interested in being on the Commission, please submit a current resume and letter of interest, including a summary of your background and qualifications to:
Attn: Charity Tatlow
Office of the City Clerk
City of Shasta Lake,
P.O. Box 777
Shasta Lake, CA 96019
The deadline for submission is Friday, August 22, 2025. For more information, email [email protected] or call 530-275-7407. The City Council may interview and consider any applicants for appointment at the Tuesday, September 2, 2025, City Council Meeting at 4499 Red Bluff St., Shasta Lake, CA 96019, at 6:00 pm.
The first Regular Meeting of the Planning Commission after the appointment is scheduled for Thursday, September 4, 2025.
Published: www.cityofshastalake.gov
Intermountain News
US Postal Service, Front Street and Summit City, Shasta Lake, CA City Hall – 4477 Main Street, Shasta Lake, CA
50 Charles A Fleming
4555 Deer Creek Avenue
Shasta Lake, CA 96019
July 18, 2025
Charity Tatlow
City Clerk
City of Shasta Lake
4477 Main Street
Shasta Lake, CA 96019
Ms. Tatlow
I am wriƟng to formally request consideraƟon for appointment to the City of Shasta Lake Planning Commission to fill any vacant seat as of August 2025.
I have aƩached a summary of my professional skills and experience as a Public Official and servant of the public with respect to Planning and Land Use maƩers for Shasta County, and for the City of Los Angeles. I aƩest that I am well qualified to serve in this capacity on behalf of the ciƟzens and residents of Shasta Lake, among whom I count myself as a resident.
I look forward to the opportunity to present myself, and my credenƟals, to the City Council at their request, in consideraƟon of this important duty and posiƟon.
Cordially
Charles A Fleming
51 Charles A. ‘Duke’ FLEMING
Major, USMC (formerly)
C.A. ‘Duke’ Fleming is a graduate of the University of Southern California with a Bachelor of Arts degree in International Relations in 1982, and a Master of Science in Systems Management (Information Systems Technology) in 1989. Mr. Fleming was commissioned through the Naval ROTC program, and completed The Basic School in Quantico, VA in May 1983 and The Infantry Officer Course in July 1983. His primary Military Occupational Specialty (MOS) was 0302 – Infantry Officer with a secondary MOS of 0180, Adjutant. He also graduated from the Naval Justice School Legal Officer Course, US Army Infantry Officer Advanced Course, US Army Airborne course, and completed the Marine Corps Command and Staff course, and the Army Command and General Staff College by correspondence.
Mr. Fleming was formerly employed by the Bureau of Reclamation, US Department of the Interior as the IT Supervisor for the Northern California Area Office of the California Great Basin Region. Previously, he has served as Regional IT Manager for the Bureau of Census, Los Angeles Regional Office (supporting 6 western states, Hawaii, and Alaska) in support of the 2020 Decennial Census. He was also the founder and owner of an independent Information Technology Consulting company focused on cyber security remediation and compliance with the NIST 800 series Cyber Security Framework.
Mr. Fleming is currently appointed by the Shasta County Board of Supervisors to serve as Board Chair of the Consolidated Oversight Board; Member of the Board of Building Appeals; and Member of the AQMD Hearing Board for Shasta County. While residing in Los Angeles, Mr. Fleming served from 2016 – 2022 as an elected Neighborhood Council General Board Member for the Reseda Neighborhood Council (80,000+ residents), Vice Chair of the Planning and Land Use Committee, Vice Chair of the Economic Development Committee, and Vice Chair of the Emergency Management and Community Safety Committee. Mr. Fleming has also completed the FEMA NIMS ICS-300 training and certification through the Texas A&M Engineering Extension program.
52 August 14, 2025
Cherrel Kirkland
17844 Ranchera Rd
Shasta Lake, CA 96019
City of Shasta Lake City Council
1650 Stanton Drive
Shasta Lake, CA 96019
RE: Reappointment to the Planning Commission
Dear Mayor Morgan and Council Members,
It is with much gratitude that I thank you for the opportunity to serve on the City of Shasta Lake Planning Commission. It has been my pleasure to serve in this capacity for many years. I have appreciated being a part of many important planning decisions over the years. I believe my experience has been helpful as I consider the important issues that are brought to the Commission for consideration. I am currently also serving as a committee member on the Village Design Stakeholders Project. I have a enjoyed being a part of that committee as we continue to shape the future of the “Village Center” of Shasta Lake City.
As the end of my current term of service is approaching, this is to inform you of my desire to continue serving as a Commissioner. We still have a lot of good work to be done! Being a part of making good planning decisions for The City of Shasta Lake is important to me and I will always work towards that goal. I would appreciate your confidence in allowing me to continue in this capacity for another term.
Sincerely,
Cherrel Kirkland
Cherrel Kirkland
53 54
55 56
57 58
Report and Recommendations 8.2 Reviewed and Approved
City Manager
AGENDA ITEM
City Council
TO: Mayor and City Council Members
FROM: Jason Peterson, Finance and General Services Manager Presentation By: Sanjay Gaur, Principal Consultant/Water Resources Economics
DATE: September 2, 2025
SUBJECT: CONSIDERATION OF UTILITY RATE STUDY RESULTS FOR THE
WASTEWATER ENTERPRISE FUND, AND AUTHORIZATION TO
PROCEED WITH THE PUBLIC NOTIFICATION AND SETTING A
PUBLIC HEARING FOR THE ADOPTION OF NEW
WASTEWATER UTILITY RATES
FILE NO.: W-090-294-_
RECOMMENDATION
Staff recommends that City Council adopt a resolution accepting the results of the Wastewater Utility Rate Study report completed by Water Resources Economics (WRE), direct staff to prepare notification of the proposed rates in accordance with Proposition 218, and to set a public hearing for consideration of adoption of the proposed rates for October 21, 2025.
BACKGROUND
The City of Shasta Lake (City) retained Water Resources Economics, LLC (WRE) to undertake the necessary cost-of-service study and utility-rate analysis to prepare an updated rate adjustment recommendation for the Wastewater Utility Fund. The recommended rates take into consideration the utility's maintenance and operation, including costs such as electricity, supplies, replacement of equipment and infrastructure, personnel costs, and regulatory compliance.
The City Council last approved wastewater rate adjustments in April 2020. At that time, the Council approved rates as follows:
59 To maintain adequate financial operating reserves and relative rate stability over time, it is appropriate that the Council consider adopting incremental Wastewater (“Utility Rate”) rate adjustments to avoid potential future "rate spikes" while maintaining the financial integrity of the City's Utilities.
The following table shows the proposed five-year rate increases for the Wastewater Utility.
The following table shows the proposed monthly bill impacts for different customer classes within the City’s service area. Single-family customers will see an increase of $0.55 per month starting on 1/1/26.
Need for Rate Increase: The City provides various utility services for its citizens. The dayto-day operations of each utility are funded through monthly service rates and are not 60 supported by property taxes or other taxes paid by residents. The City's utility operations must be financially self-sufficient and fiscally responsible, and they must provide safe, reliable services to prevent customers from being impacted by deferred maintenance or lack of system capacity. While the subject Wastewater Utility has been successful in containing costs, there are ongoing fiscal challenges that must be addressed, including:
• Expanding environmental and regulatory mandates associated with effluent limitations and mitigation.
• Increasing energy, chemical, material, equipment, and labor costs; • Critical aging pipe-replacement needs in the Wastewater collection systems; • Meeting debt service requirements associated with the past upgrades to the Wastewater Treatment Plant.
These challenges place continuous upward pressure on rates. By proactively anticipating these future needs, the City and the Wastewater Utility strive to prevent unanticipated increases in rates and maintain a reasonable level of operating funds by implementing the lowest responsible rates. However, with increased inflationary costs, capital improvement requirements, and expanding environmental and regulatory mandates; the proposed 5-year rate schedule is necessary.
The City Council established a Wastewater Rate Ad Hoc Committee to work with staff and the consultant on developing recommendations for a proposed five-year rate structure. The Ad Hoc Committee met in an open public meeting on July 3, 2025, and again on August 13, 2025. During these meetings, the Committee reviewed key assumptions, including revenue escalation factors, debt service requirements, expense escalation factors, the proposed Capital Improvement Program, and the current rate structure.
The Committee was presented with several financial plan scenarios. The “Status Quo” option would cause the utility to default on debt service requirements and drive the fund balance into a negative position, potentially requiring the General Fund to subsidize the wastewater utility. Cash-funded options would have resulted in a significant rate increase.
To ensure rates remain as affordable as possible, the Committee agreed on a debtfunded scenario that includes a 5% annual increase over a five-year period, beginning January 1, 2026.
The City remains committed to providing safe, reliable wastewater utility service to our citizens. Recognizing that rate increases may pose financial challenges for some customers, various assistance programs such as Lifeline Rates, SHHIP, SHARES, and LiHEAP are available. Customers can inquire about these programs by contacting our customer service staff at
(530) 275-7400.
To ensure public participation in the rate-setting process and implement the requirements of Proposition 218, a Notice of Public Hearing and Protest Procedures (Notice) will be mailed to every property owner and Wastewater Utility customer in the City. The City is subject to Proposition 218, which states that “property-related fees and charges” (which include retail wastewater rates) may not exceed the proportional cost of providing the 61 service to the customer and may not be used for any purpose other than providing said service.
FISCAL IMPACTS:
There is no fiscal impact for moving forward with a Prop 218 Public Hearing. There may be a fiscal impact depending on the outcome of the Prop 218 process (ballots).
ATTACHMENTS
Resolution
2025 Wastewater Rate Study (Water Resources Economics)
DISTRIBUTION
City Council
City Attorney
Finance Department
62 RESOLUTION CC-2025-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SHASTA LAKE
ACCEPTING THE RESULTS OF THE WASTEWATER UTILITY RATE STUDY
COMPLETED BY WATER RESOURCES ECONOMICS AND DIRECT STAFF TO
PREPARE PUBLIC NOTICE OF THE PROPOSED RATES IN ACCORDANCE WITH PROPOSITION 218, AND TO SET A PUBLIC HEARING FOR CONSIDERATION OF ADOPTION OF THE PROPOSED RATES ON OCTOBER 21, 2025
WHEREAS, Water Resources Economics was engaged by the City to complete the 2025 Wastewater Rate Study; and
WHEREAS, Water Resources Economics has completed the 2025 Wastewater Rate Study; and
WHEREAS, the City Council established a Wastewater Ad Hoc Committee to work with staff and the consultant on the 2025 Wastewater Rate Study Update; and WHEREAS, the Wastewater Ad Hoc Committee has completed its work and review, and has submitted its recommendations to the City Council for final approval; and WHEREAS, the City Council accepts the results of the 2025 Wastewater Rate Study Update; and
WHEREAS, prior to implementing the wastewater rates, the City must prepare public notification of the proposed rates in accordance with Proposition 218 and set a public hearing for consideration of the adoption of said rates.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Shasta Lake hereby accepts the results of the 2025 Wastewater Rate Study completed by Water Resources Economics, directs staff to prepare public notification of the proposed rates in accordance with Proposition 218, and sets a public hearing for consideration of the adoption of the proposed rates on October 21, 2025.
PASSED, APPROVED, AND ADOPTED this 2nd day of September, 2025, by the following vote:
AYES:
NOES:
ABSENT:
_______________________________
PAMELYN ANNE MORGAN, Mayor
ATTEST:
____________________________
CHARITY TATLOW, CMC
City Clerk
63 City of Shasta Lake
2025 Wastewater Rate Study
Draft Report – August 2025
Prepared by: Wastewater Resources Economics, LLC
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65 August 26, 2025
Jessaca Lugo
City Manager
City of Shasta Lake
4477 Main Street
Shasta Lake, CA 96019
Subject: City of Shasta Lake Wastewater Rate Study Report Dear Ms. Lugo,
Water Resources Economics, LLC (WRE) is pleased to submit this 2025 Wastewater Rate Study Report to the City of Shasta Lake (City). This report documents the results and recommendations of the City’s wastewater rate study. The goal of the study was to develop a five-year schedule of wastewater rates that will sufficiently fund the City’s wastewater system expenses, allow the City to meet its financial goals within the study period, and comply with cost-of-service principles.
This study utilized industry-standard rate-setting methodology and incorporates guidance provided by the City Council. Our project team has a proven track record of developing fair and equitable wastewater rates for numerous public agencies in California over the past 25 years. We are confident in our ability to develop sound wastewater rates that satisfy the requirements of Proposition 218.
It has been a pleasure assisting the City with this engagement, and we appreciate the support provided by yourself, the City Council, and other City staff during this study.
Sincerely,
Sanjay Gaur Hannah Phan
President Principal Consultant
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67 City of Shasta Lake 2025 Wastewater Rate Study
Wastewater Resources Economics
i
TABLE OF CONTENTS
1. Executive Summary.................................................................................................................. 1
1.1 System Overview .......................................................................................................................... 1
1.2 Rate Study Overview .................................................................................................................... 1
1.3 Legal Requirements...................................................................................................................... 1
1.4 Rate-Setting Methodology ........................................................................................................... 1
1.5 Additional Information and Disclaimers....................................................................................... 2
1.6 Current Wastewater Rates........................................................................................................... 2
1.7 Financial Plan ................................................................................................................................ 3
1.8 Proposed Wastewater Rates........................................................................................................ 4
2. Financial Plan........................................................................................................................... 6
2.1 Financial Plan Methodology ......................................................................................................... 6
2.2 Revenues....................................................................................................................................... 6
2.3 Operating Expenses...................................................................................................................... 8
2.4 Debt Service................................................................................................................................ 10
2.5 Capital Improvement Plan.......................................................................................................... 11
2.6 Financial Policies......................................................................................................................... 12
2.7 No Revenue Adjustment Financial Plan...................................................................................... 13
2.8 Proposed Financial Plan.............................................................................................................. 18
3. Wastewater Rates..................................................................................................................24
3.1 Rate Design Methodology .......................................................................................................... 24
3.2 Proposed Changes to Rate Structure.......................................................................................... 24
3.3 Revenue Requirement................................................................................................................ 24
3.4 Unit Cost Calculation .................................................................................................................. 25
3.5 Proposed Monthly Service Charge ............................................................................................. 26
3.6 Proposed Wastewater Rate Schedule ........................................................................................ 26
3.7 Customer Impacts....................................................................................................................... 27
LIST OF TABLES
Table 1-1: Current Wastewater Rates...................................................................................................... 3 Table 1-2: Proposed Financial Plan Scenario............................................................................................ 4 Table 1-3: Proposed 5-year Wastewater Rate Schedule.......................................................................... 5 Table 2-1: Current Wastewater Rates...................................................................................................... 7 Table 2-2: Projected Customer Accounts/Units....................................................................................... 7 Table 2-3: Calculated Rate Revenues at Current Rates............................................................................ 7 Table 2-4: Revenue Summary................................................................................................................... 8 Table 2-5: Operating Expenses Escalation Factors................................................................................... 8 Table 2-6: Operating Expenses................................................................................................................. 9 Table 2-7: Existing and Proposed Debt Service ...................................................................................... 11 68 City of Shasta Lake 2025 Wastewater Rate Study
Wastewater Resources Economics
ii
Table 2-8: Capital Improvement Projects............................................................................................... 11 Table 2-9: Capital Financing Plan............................................................................................................ 12 Table 2-10: No Revenue Adjustment Financial Plan Scenario................................................................ 13 Table 2-11: Projected Cash Flows (No Revenue Adjustment Financial Plan)......................................... 14 Table 2-12: Projected Fund Balances (No Revenue Adjustment Financial Plan) ................................... 15 Table 2-13: Forecasted Financial Performance (No Revenue Adjustment Financial Plan).................... 16 Table 2-14: Proposed Financial Plan Scenario........................................................................................ 18 Table 2-15: Projected Cash Flows (Proposed Financial Plan)................................................................. 19 Table 2-16: Projected Fund Balances (Proposed Financial Plan) ........................................................... 20 Table 2-17: Forecasted Financial Performance (Proposed Financial Plan) ............................................ 21 Table 3-1: FY 2025 Revenue Requirement ............................................................................................. 25 Table 3-2: Customer Units Comparison.................................................................................................. 25 Table 3-3: Unit Cost Calculation ............................................................................................................. 26 Table 3-4: Proposed Monthly Service Charge after Adjustment............................................................ 26 Table 3-5: Proposed Revenue Adjustments........................................................................................... 26 Table 3-6: Proposed 5-year Wastewater Rate Schedule........................................................................ 27 Table 3-7: Proposed Customer Impacts ................................................................................................. 27
LIST OF FIGURES
Figure 2-1: Revenue Requirements vs. Revenues (No Revenue Adjustment Financial Plan)................ 17 Figure 2-2: Projected Debt Coverage (No Revenue Adjustment Financial Plan) ................................... 17 Figure 2-3: Projected Fund Balances (No Revenue Adjustment Financial Plan).................................... 18 Figure 2-4: Revenue Requirements vs. Revenues (Proposed Financial Plan) ........................................ 22 Figure 2-5: Projected Debt Coverage (Proposed Financial Plan)............................................................ 22 Figure 2-6: Projected Fund Balances (Proposed Financial Plan) ............................................................ 23 69 City of Shasta Lake 2025 Wastewater Rate Study
Wastewater Resources Economics
1 1. EXECUTIVE SUMMARY
1.1 SYSTEM OVERVIEW
The City of Shasta Lake (City) provides wastewater service to approximately 3,800 residential and non-residential accounts and is governed by a five-member City Council elected by the public. The wastewater system, which is owned and operated by the City, consists of a wastewater treatment plant with a capacity of 1.3 million gallons per day (MGD), six lift stations, and approximately 58 miles of collection pipelines.
1.2 RATE STUDY OVERVIEW
Public retail wastewater agencies in California typically conduct a cost-of-service study every five years to ensure that customers are appropriately charged for wastewater service and to reestablish the cost-of-service nexus that is required by Proposition 218. The City has engaged Water Resources Economics, LLC (WRE) to conduct a comprehensive wastewater rate study, with the following objectives:
• Develop a five-year wastewater rate schedule for Fiscal Year (FY) 2026 through FY 2030 • Conduct a cost-of-service analysis based on the most recent data and customer characteristics • Evaluate a five-year financial plan scenario to meet financial targets for FY 2026 to FY 2030
1.3 LEGAL REQUIREMENTS
Legal considerations relating to retail wastewater rates in California focus heavily on Proposition 218, which was enacted in 1996 and is now reflected in Article XIII C and Article XIII D of the California Constitution. Proposition 218 states that “property related fees and charges” (which include retail wastewater rates) may not exceed the proportional cost of providing the service to the customer and may not be used for any purpose other than providing said service. The practical implication is that public retail wastewater agencies in California must demonstrate a sufficient nexus between the costs incurred by the agency to provide wastewater service and the rates charged to customers. The primary means by which retail wastewater agencies address this requirement is by conducting a “cost-of-service analysis.”
Proposition 218 also affects the rate adoption process by requiring agencies to hold a public hearing to adopt rates. The agency must mail public hearing notices to all customers no fewer than 45 days prior to the public hearing. The public hearing notices must clearly show all proposed rate changes, provide information on the public hearing date/time/location, and provide instructions on how customers may protest the proposed rate changes. If a majority of customers submit a protest, the proposed rate changes cannot be adopted.
1.4 RATE-SETTING METHODOLOGY
This study was conducted using industry-standard methodology and includes the following steps:
70 City of Shasta Lake 2025 Wastewater Rate Study
Wastewater Resources Economics
2 1. Financial Plan: Annual revenues and expenses are projected over the rate-setting period to determine the magnitude of rate increases needed to maintain financial sufficiency. Financial policies, such as reserve targets, are also evaluated and updated if necessary.
2. Cost-of-Service Analysis: Costs are allocated to customers in proportion to use of and burden on the wastewater system. The overall goal is to establish a robust nexus between the costs incurred by an agency and the rates charged to customers, as required by Proposition 218.
3. Rate Design: The existing rate structure is evaluated, and potential changes are identified. A multi-year proposed rate schedule is then calculated directly from the results of the financial plan and cost-of-service analysis.
4. Rate Study Documentation: A rate study report is developed to document the proposed rate development process. This provides transparency and enhances compliance with Proposition 218 requirements. This document serves as the report for this rate study.
1.5 ADDITIONAL INFORMATION AND DISCLAIMERS
This report summarizes the data, analyses, processes, and results of the City’s wastewater rate study.
Some important information to keep in mind when reading the report includes the following:
• All study projections are based on the best available data as of May 2025. • All table values are rounded to the nearest digit shown unless stated otherwise. However, all calculations are based on precise values. Attempting to manually recreate the calculations described in this report from the values displayed in tables may therefore produce slightly different results.
• All current and proposed rates and charges in this report are shown on a monthly basis.
1.6 CURRENT WASTEWATER RATES
The City’s current wastewater rate structure includes a fixed monthly service charge based on customer class. Residential customer charges are based on a per unit basis. Commercial and industrial customers are based on a Single Family Equivalency Connection (SFEC) basis that is determined based on 90% of winter water consumption between January and March for non-residential customers and 90% of water consumption for industrial customers, per the City’s rate ordinance. Table 1-1 shows the current wastewater rates as of July 1, 2025.
71 City of Shasta Lake 2025 Wastewater Rate Study
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3 Table 1-1: Current Wastewater Rates1
Line As of 7/1/25
1 Monthly Charges
2 Residential $80.76
3 Residential - Lifeline $64.61
4 Efficiency Dwelling $46.03
5 Multi-Family Dwelling $68.65
6 Non-Residential (per SFEC) $80.76
7 Industrial (per SFEC) $80.76
1.7 FINANCIAL PLAN
WRE worked closely with City staff and the City Council to determine the financial plan scenario that best suits the City’s needs. The results and recommendations of the wastewater rate study are driven by the City’s financial performance, input from City staff, and feedback and direction from the City Council.
FACTORS AFFECTING FINANCIAL PERFORMANCE
The wastewater system’s financial performance is driven by the ability of the current wastewater rates to meet the City’s funding needs. To maintain financial sufficiency, wastewater rates must fully fund operations and maintenance (O&M) costs, capital improvement plan (CIP) expenditures, and any relevant financial policies, which typically include target reserve balances and debt coverage.
The key factors affecting financial performance include:
• Substantial capital investment needs over the next five years: The cost of planned capital projects over the next five years (FY 2026 through FY 2030) is approximately $13.7 million. Key projects include the Force Main project ($7.35 million) and the Summit City Septic and Zinc Mitigation projects (total $3.68 million). The City is seeking grant funding for 50% of the Force Main project and 100% grant funding for the Summit City Septic and Zinc Mitigation projects.
The grants will significantly reduce the revenue adjustments needs for the next five years. • Reserve policy targets: The City’s current reserve policy includes targets for operating and capital improvement needs. The reserve policy in place allows the City to maintain cash on hand to meet short-term cash flow requirements, to cover unexpected repairs, and to execute CIP projects. WRE proposes that the City revise its reserve policy to be more in line with its operations and risks as well as industry standards.
1 SFEC = Single Family Equivalency Connection Charge
1 SFEC = 170 gpd of wastewater flow
Lifefine rate is 80% of residential
Efficiency dwelling is based on 57% of residential
Multi-family is based on 85% of residential
Non-Residential rate is based on 90% of average monthly winter consumption between Jan-Mar Industrial rate is based on 90% of average water use
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Wastewater Resources Economics
4 PROPOSED REVENUE ADJUSTMENTS AND DEBT ISSUANCES
Overall annual increases in wastewater rate revenues resulting from rate increases are referred to as “revenue adjustments.” WRE worked with the City Council and City staff to determine the most appropriate financial plan scenario, which is shown in Table 1-2. The proposed financial plan scenario includes five years of revenue adjustments, which are required to maintain financial sufficiency and resiliency, and one short-term loan in FY 2027 to fund $3.6 million worth of CIP projects.
Table 1-2: Proposed Financial Plan Scenario
Line Fiscal Year Revenue
Adjustments Short-term Loan
1 FY 2026 5.0% $0
2 FY 2027 5.0% $3,600,000
3 FY 2028 5.0% $0
4 FY 2029 5.0% $0
5 FY 2030 5.0% $0
Under this proposed financial plan, the City will meet its reserve targets and meet coverage requirements for all years of the planning period.
1.8 PROPOSED WASTEWATER RATES
WRE worked closely with the City Council and City staff to determine the most appropriate wastewater rate structure that meets the City’s needs.
PROPOSED RATE STRUCTURE CHANGES
The main objective of the rate study was to conduct a comprehensive cost-of-service analysis while maintaining as much of the current wastewater rate structure as possible to minimize customer impacts. The City’s current wastewater rate structure includes a monthly service charge based on customer class.
After examining current customer classification and discussion with City staff regarding customer usage patterns, WRE recommends the following changes:
• Remove the Efficiency Unit customer class as there are no customers currently that fall under that category.
• Combine all residential customers, which currently includes single family, multi-family, and mobile homes, and accessory dwelling units (ADU) into a single residential class. All residential customers will now qualify for the lifeline rates.
• Modify the current non-residential and industrial wastewater calculation from 90% of water usage to 100% of water usage.
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5 PROPOSED FIVE-YEAR WASTEWATER RATE SCHEDULE
The proposed five-year wastewater rate schedule in this section are based on the proposed rate structure and methodology changes, the updated cost-of-service analysis, and the proposed revenue adjustments. The rate schedule shows the proposed wastewater rates to be implemented in January 2026 through January 2030. Table 1-3 shows the current and proposed monthly wastewater service charges. Residential lifeline rates are 80% of the residential rates and will be funded through General Fund monies.
Table 1-3: Proposed 5-year Wastewater Rate Schedule2
Line Customer Class As of
7/1/25
Effective
1/1/26
Effective
1/1/27
Effective
1/1/28
Effective
1/1/29
Effective
1/1/30
1 Residential $80.76 $81.31 $85.38 $89.65 $94.14 $98.85 2 Residential -
Lifeline $64.61 $65.05 $68.31 $71.73 $75.32 $79.09
3 Multi-Family
Dwelling $68.65 $81.31 $85.38 $89.65 $94.14 $98.85
4 Non-Residential
(per SFEC) $80.76 $81.31 $85.38 $89.65 $94.14 $98.85
5 Industrial (per
SFEC) $80.76 $81.31 $85.38 $89.65 $94.14 $98.85
2 SFEC = Single Family Equivalency Connection Charge
1 SFEC = 170 gpd of wastewater flow
Lifefine rate is 80% of residential
Non-Residential rate is based on 100% of average monthly winter consumption between Jan-Mar Industrial rate is based on 100% of average water use
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6 2. FINANCIAL PLAN
2.1 FINANCIAL PLAN METHODOLOGY
The purpose of a financial plan is to project revenues, expenses, cash flows, reserve balances, and debt coverage over a multi-year period to assess financial sufficiency and performance and to determine the amount of required rate revenue. For this study, the planning period is from FY 2026 through FY 2030; data for FY 2025 and FY 2026 are shown when needed to represent actual or budgeted data inputs. The key steps in developing a financial plan for a wastewater enterprise are below:
• Revenue projections: Annual revenues from rates and other miscellaneous sources are projected over the planning period. Rate revenues are projected based on current rates to establish baseline revenues from which the need for additional rate increases can be evaluated.
• Expense projections: Annual expenses are projected over the study period, including O&M expenses, debt service, and CIP costs. CIP funding options (grants, debt, etc.) are evaluated. • Financial policy evaluation: Key financial policies include debt coverage requirements and reserve targets. Debt coverage requirements are typically explicitly stated in official agreements on outstanding debt issuances. Reserve targets are typically set by an agency’s elected officials and may need to be periodically evaluated and updated. • Status quo financial plan projections: Cash flow, reserve balances, and debt coverage are projected over the study period in the absence of additional rate increases (this scenario is called the “status quo”). Projected reserve balances and debt coverage are then compared to the agency’s financial policy requirements and targets. The status quo financial plan provides a baseline to evaluate the need for rate increases.
• Proposed financial plan projections: The magnitude and timing of annual proposed revenue increases over the study period are evaluated and determined based on the agency’s financial policies, financial performance, and policy objectives. Proposed rate increases (referred to as “revenue adjustments”) should generate sufficient revenue to recover the agency’s expenses, maintain adequate reserves, and meet all debt coverage requirements. The proposed financial plan determines the total annual rate revenue requirement over the study period.
2.2 REVENUES
CURRENT WASTEWATER RATES
The City’s current wastewater rate structure includes a fixed monthly service charge based on customer class. Residential customer charges are based on a per unit basis. Non-residential and industrial customers are based on a Single Family Equivalency Connection (SFEC) basis that is determined based on 90% of winter water consumption between January and March for nonresidential customers and 90% of water consumption for industrial customers, per the City’s rate ordinance. Table 2-1 shows the current wastewater rates as of July 1, 2025. 75 City of Shasta Lake 2025 Wastewater Rate Study
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7 Table 2-1: Current Wastewater Rates
Line As of 7/1/25
1 Monthly Charges
2 Residential $80.76
3 Residential - Lifeline $64.61
4 Efficiency Dwelling $46.03
5 Multi-Family Dwelling $68.65
6 Non-Residential (per SFEC) $80.76
7 Industrial (per SFEC) $80.76
CUSTOMER ACCOUNTS AND USAGE
This section details the customer accounts for all years of the study, which are referred to as the units of service. Units of service represent the quantity of billing units that are subject to the City’s wastewater rates and charges.
Table 2-2 shows the projected number of SFEC for the study period. City staff provided actual data for FY 2025; this study assumes no growth in customer accounts and units throughout the planning period.
Table 2-2: Projected Customer Accounts/Units
Line Customer Class FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 1 Residential 2,998 2,998 2,998 2,998 2,998 2,998
2 Residential - Lifeline 306 306 306 306 306 306
3 Efficiency Dwelling 0 0 0 0 0 0
4 Multi-Family Dwelling 340 340 340 340 340 340
5 Non-Residential (per
SFEC) 348 348 348 348 348 348
6 Industrial (per SFEC) 107 107 107 107 107 107
7 Total Customer Units 4,099 4,099 4,099 4,099 4,099 4,099
REVENUES FROM CURRENT RATES
Table 2-3 shows the calculated wastewater rate revenues for the study period based on the current effective wastewater rates (Table 2-1) and the projected customer accounts/unit (Table 2-2).
Table 2-3: Calculated Rate Revenues at Current Rates
Line Calculated Rate Revenues FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 1 Residential $2,905,422 $2,905,422 $2,905,422 $2,905,422 $2,905,422 $2,905,422 2 Residential - Lifeline $237,248 $237,248 $237,248 $237,248 $237,248 $237,248 3 Efficiency Dwelling $0 $0 $0 $0 $0 $0
4 Multi-Family Dwelling $280,092 $280,092 $280,092 $280,092 $280,092 $280,092 76 City of Shasta Lake 2025 Wastewater Rate Study
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8 5 Non-Residential (per
SFEC) $337,254 $337,254 $337,254 $337,254 $337,254 $337,254 6 Industrial (per SFEC) $103,696 $103,696 $103,696 $103,696 $103,696 $103,696 7 Total – Rate Revenue $3,863,711 $3,863,711 $3,863,711 $3,863,711 $3,863,711 $3,863,711
REVENUE SUMMARY
Table 2-4 shows the summary of projected revenues for the study period. City staff provided the budgeted revenues for FY 2025 and FY 2026; all other years are projected based on the relevant assumptions or calculations. Sales-Utility Services, or wastewater rate revenue, (Line 1) are from Line 7 of Table 2-3. Interest on Investments (Line 5) is calculated based on ending fund balances and a 3% interest rate for FY 2027 through FY 2030.
Table 2-4: Revenue Summary
Line Revenues FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 1 Sales-Utility Services $3,863,711 $3,863,711 $3,863,711 $3,863,711 $3,863,711 $3,863,711 2 Sales-Reclaimed Water $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 3 Wastewater -
Liftstation Surcharge $0 $0 $0 $0 $0 $0
4 Service Connection Fee $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 5 Interest on
Investments $6,000 $6,000 $111,722 $93,978 $79,031 $65,394 6 Transfers In $0 $0 $0 $0 $0 $0
7 Miscellaneous
Revenue $0 $0 $0 $0 $0 $0
8 Total - Revenues $3,877,211 $3,877,211 $3,982,933 $3,965,189 $3,950,242 $3,936,605
2.3 OPERATING EXPENSES
WRE worked with City staff to determine the most appropriate escalation factors for various operating expense categories in the City’s budget. Table 2-5 shows the expense escalation factors used to inflate O&M expenses in FY 2026 through FY 2030.
Table 2-5: Operating Expenses Escalation Factors
Line Expense Escalation FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 1 General 3.0% 3.0% 3.0% 3.0% 3.0%
2 Salaries 3.0% 3.0% 3.0% 3.0% 3.0%
3 Benefits 10.0% 10.0% 10.0% 10.0% 10.0%
4 Chemicals 5.0% 5.0% 5.0% 5.0% 5.0%
5 Utilities 4.0% 4.0% 4.0% 4.0% 4.0%
6 Capital 5.0% 5.0% 5.0% 5.0% 5.0%
7 General (High) 5.0% 5.0% 5.0% 5.0% 5.0%
8 Non-Inflated 0.0% 0.0% 0.0% 0.0% 0.0%
9 Non-Recurring -100.0% -100.0% -100.0% -100.0% -100.0% 77 City of Shasta Lake 2025 Wastewater Rate Study
Wastewater Resources Economics
9 Table 2-6 shows the summary of O&M expenses for the study period. City staff provided the budgeted O&M expenses for FY 2025 and FY 2026. The budgeted values are escalated each year based on the escalation factors in Table 2-5.
Table 2-6: Operating Expenses
Line Operating Expenses FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 1 Wastewater Administration
2 Permits & Fees $5,000 $5,000 $5,150 $5,305 $5,464 $5,628 3 Insurance-General $55,670 $61,237 $64,299 $67,514 $70,889 $74,434 4 Administration Fee Allocation $524,167 $550,375 $566,886 $583,893 $601,410 $619,452 5 Motor Pool $41,751 $41,751 $43,004 $44,294 $45,622 $46,991 6 Placeholder $0 $0 $0 $0 $0 $0
7 Placeholder $0 $0 $0 $0 $0 $0
8 Placeholder $0 $0 $0 $0 $0 $0
9 Placeholder $0 $0 $0 $0 $0 $0
10 Placeholder $0 $0 $0 $0 $0 $0
11 Subtotal - Wastewater
Administration $626,588 $658,363 $679,339 $701,005 $723,385 $746,505 12 13 Distribution/Collection
14 Office Supplies $1,000 $1,000 $1,030 $1,061 $1,093 $1,126 15 Permits & Fees $5,000 $5,000 $5,150 $5,305 $5,464 $5,628 16 Utilities $95,000 $95,000 $98,800 $102,752 $106,862 $111,137 17 Maint., Collect Syst. $10,000 $10,000 $10,300 $10,609 $10,927 $11,255 18 Lift Station Maint $35,000 $35,000 $36,050 $37,132 $38,245 $39,393 19 Telephone $2,000 $2,000 $2,060 $2,122 $2,185 $2,251
20 Generator Maintenance $15,500 $13,000 $13,390 $13,792 $14,205 $14,632 21 Alarms $3,600 $3,600 $3,708 $3,819 $3,934 $4,052
22 Travel, Meetings, Dues $2,500 $2,500 $2,575 $2,652 $2,732 $2,814 23 Training $4,000 $4,000 $4,120 $4,244 $4,371 $4,502
24 Maintenance Agreements $10,000 $10,000 $10,300 $10,609 $10,927 $11,255 25 Services - Consulting $20,000 $20,000 $20,600 $21,218 $21,855 $22,510 26 Labor Allocation $704,716 $704,716 $725,857 $747,633 $770,062 $793,164 27 Small Tools & Equipment $5,000 $5,000 $5,150 $5,305 $5,464 $5,628 28 Placeholder $0 $0 $0 $0 $0 $0
29 Placeholder $0 $0 $0 $0 $0 $0
30 Placeholder $0 $0 $0 $0 $0 $0
31 Placeholder $0 $0 $0 $0 $0 $0
32 Placeholder $0 $0 $0 $0 $0 $0
33 Subtotal -
Distribution/Collection $913,316 $910,816 $939,090 $968,251 $998,326 $1,029,345 34 35 Treatment/Resource
36 Salaries-Regular $442,455 $428,588 $441,446 $454,689 $468,330 $482,380 37 Overtime Payroll $0 $0 $0 $0 $0 $0
38 Ins.-Health $305,269 $309,152 $340,067 $374,074 $411,481 $452,629 78 City of Shasta Lake 2025 Wastewater Rate Study
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10 39 Ins.-Dental $0 $0 $0 $0 $0 $0
40 Ins.-Vision $0 $0 $0 $0 $0 $0
41 Ins.-Disability $0 $0 $0 $0 $0 $0
42 Retirement $0 $0 $0 $0 $0 $0
43 Medicare $0 $0 $0 $0 $0 $0
44 Unemployment Tax $0 $0 $0 $0 $0 $0
45 General Operating Supplies $2,500 $2,500 $2,575 $2,652 $2,732 $2,814 46 Janitorial Supplies $1,000 $1,000 $1,030 $1,061 $1,093 $1,126 47 Chemicals $10,000 $10,000 $10,500 $11,025 $11,576 $12,155 48 Permits & Fees $25,000 $25,000 $25,750 $26,523 $27,318 $28,138 49 Lab Supplies $15,000 $15,000 $15,450 $15,914 $16,391 $16,883 50 General Maintenance $10,000 $10,000 $10,300 $10,609 $10,927 $11,255 51 Utilities $325,000 $325,000 $338,000 $351,520 $365,581 $380,204 52 Discharge Permit Compliance $50,000 $50,000 $51,500 $53,045 $54,636 $56,275 53 Lab Testing $55,000 $55,000 $56,650 $58,350 $60,100 $61,903 54 Building Maintenance $1,000 $1,000 $1,030 $1,061 $1,093 $1,126 55 Telephone $2,000 $2,000 $2,060 $2,122 $2,185 $2,251
56 Generator Maintenance $5,500 $4,500 $4,635 $4,774 $4,917 $5,065 57 Services - Janitorial $3,000 $3,000 $3,090 $3,183 $3,278 $3,377 58 Alarms $3,000 $3,000 $3,090 $3,183 $3,278 $3,377
59 Equipment Repair Maint $200,000 $200,000 $206,000 $212,180 $218,545 $225,102 60 Site Clean-Up $20,000 $20,000 $20,600 $21,218 $21,855 $22,510 61 Travel, Meetings, Dues $3,500 $3,500 $3,605 $3,713 $3,825 $3,939 62 Computer Services & Repair $45,000 $45,000 $46,350 $47,741 $49,173 $50,648 63 Safety $2,000 $2,000 $2,060 $2,122 $2,185 $2,251
64 Services - Consulting $30,000 $30,000 $30,900 $31,827 $32,782 $33,765 65 Services-Miscellaneous $5,000 $5,000 $5,150 $5,305 $5,464 $5,628 66 Labor Allocation $3,498 $3,498 $3,603 $3,711 $3,822 $3,937 67 Small Tools & Equipment $1,000 $1,000 $1,030 $1,061 $1,093 $1,126 68 Placeholder $0 $0 $0 $0 $0 $0
69 Placeholder $0 $0 $0 $0 $0 $0
70 Placeholder $0 $0 $0 $0 $0 $0
71 Placeholder $0 $0 $0 $0 $0 $0
72 Placeholder $0 $0 $0 $0 $0 $0
73 Subtotal -
Treatment/Resource $1,565,722 $1,554,738 $1,626,471 $1,702,660 $1,783,660 $1,869,861 74 75 Total - Operating Expenses $3,105,626 $3,123,917 $3,244,900 $3,371,916 $3,505,372 $3,645,710
2.4 DEBT SERVICE
EXISTING AND PROPOSED DEBT SERVICE
Table 2-7 shows the City’s annual debt service for the study period. The City has existing debt service payments on a 2017 State Revolving Fund (SRF) loan of approximately $628,000 each year. The proposed financial plan scenario also includes a new short-term loan FY 2027 of $3,600,000 (assuming a 4% interest rate and a 10-year term).
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11 Table 2-7: Existing and Proposed Debt Service
Line Debt Service FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 1 Existing Debt Service
2 SRF Loan - Principal $404,882 $411,765 $418,765 $425,884 $433,124 $440,487 3 SRF Loan - Interest $222,704 $215,821 $208,821 $201,702 $194,462 $187,099 4 Subtotal $627,586 $627,586 $627,586 $627,586 $627,586 $627,586 5 6 Proposed Debt Service
7 Proposed FY 2027 Loan $0 $0 $443,847 $443,847 $443,847 $443,847 8 Subtotal $0 $0 $443,847 $443,847 $443,847 $443,847
9 10 Total - Debt Service $627,586 $627,586 $1,071,433 $1,071,433 $1,071,433 $1,071,433
2.5 CAPITAL IMPROVEMENT PLAN
CAPITAL IMPROVEMENT PROJECTS
Table 2-8 shows the City’s six-year CIP; project costs are inflated by 5% per year starting in FY 2027.
Table 2-8: Capital Improvement Projects
Line Capital Improvement Projects FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 1 Wastewater Rate Study $50,000 $0 $0 $0 $0 $0
2 Infiltration & Inflow Study $75,000 $0 $0 $0 $0 $0
3 LS3 & LS5 Force Main $0 $0 $7,350,000 $0 $0 $0
4 WWTP Shade Structure for
Filter/UV $100,000 $0 $210,000 $0 $0 $0
5 WWTP Bar Screen
Rehabilitation $30,000 $0 $0 $0 $0 $0
6 WWTP HVAC Replacement $40,000 $0 $0 $0 $0 $0
7 Wastewater Collection System
Cleaning & CCTV Phase 1 $550,000 $0 $0 $0 $0 $0
8 Wastewater Collection System
Cleaning & CCTV Phase 2 $0 $450,000 $0 $0 $0 $0
9 Water Effects Ration -
Translator Study $150,000 $0 $0 $0 $0 $0
10 WWTP Scum Trough Mixers $0 $75,000 $0 $0 $0 $0
11 Wastewater Master Plan
update (2026-2036) $0 $200,000 $0 $0 $0 $0
12 Summit City Septic to Sewer
Design & Environmental $0 $0 $2,100,000 $0 $0 $0
13 Zinc Mitigation Design $0 $0 $1,575,000 $0 $0 $0
14 Lift Station 2 - Rehabilitation $0 $0 $0 $551,250 $0 $0 15 Wastewater Improvements
2028 (Project TBD) $0 $0 $0 $0 $578,813 $607,753
16 Total - Capital Projects
(Inflated) $995,000 $725,000 $11,235,000 $551,250 $578,813 $607,753 80 City of Shasta Lake 2025 Wastewater Rate Study
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12 CAPITAL FINANCING PLAN
Table 2-9 shows the capital financing plan. The City is seeking grant funding for 50% of the Force Main project (Line 3 in Table 2-8) and 100% grant funding for the Summit City Septic and Zinc Mitigation projects (Lines 12 and 13 in Table 2-8). The total projected grant funding is $7 million for the three projects in FY 2027 (Line 1). The proposed short-term loan will fund $3.6 million in capital projects in FY 2027 (Line 2). All other project costs will be funded by wastewater rates or reserves (Line 3).
Table 2-9: Capital Financing Plan
Line Capital Financing Plan FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 1 Grant Funded CIP $0 $0 $7,000,000 $0 $0 $0
2 Debt Funded CIP $0 $0 $3,600,000 $0 $0 $0
3 Rate Funded CIP $995,000 $725,000 $635,000 $551,250 $578,813 $607,753 4 Total - Capital Financing
Plan $995,000 $725,000 $11,235,000 $551,250 $578,813 $607,753
2.6 FINANCIAL POLICIES
RESERVE POLICY
The City’s current reserve policy maintains cash on hand to meet short-term cash imbalances, to execute CIP projects, and to cover unexpected repairs.
The City currently has an adopted reserve policy that consists of the following components:
• Operating Reserve Target: 5% of annual operating expenses • Capital Projects Reserve Target: $500,000
WRE proposes several revisions to the City’s current reserve policy to be more in line with the City’s operation and risk profile as well as industry standards. • Operating Reserve Target: 25% of annual operating expenses • Capital Reserve Target: 50% of five-year average rate-funded CIP costs • Emergency Reserve Target: Net replacement cost of a major asset ($100,000) The reserve target for the study period ranges from approximately $1.2 to $1.3 million in the City’s reserve funds.
DEBT COVERAGE REQUIREMENT
The City’s current debt coverage requirement is 110% of annual debt service. To meet coverage requirements, net revenues (revenues less operating expenses) must be 110% or more of annual debt service. This requirement excludes the proposed short-term loan of $3.6 million. 81 City of Shasta Lake 2025 Wastewater Rate Study
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13 2.7 NO REVENUE ADJUSTMENT FINANCIAL PLAN
NO REVENUE ADJUSTMENT FINANCIAL PLAN SCENARIO
Table 2-10 shows the no revenue adjustment financial plan scenario, which assumes no revenue adjustments and no short-term loan. This scenario is used to evaluate the ability of the current wastewater rates to meet the City’s financial targets and to determine the need for revenue adjustments.
Table 2-10: No Revenue Adjustment Financial Plan Scenario Line Fiscal Year Revenue
Adjustments
Effective
Month
Short-term
Loan
1 FY 2026 0.0% January $0
2 FY 2027 0.0% January $0
3 FY 2028 0.0% January $0
4 FY 2029 0.0% January $0
5 FY 2030 0.0% January $0
NO REVENUE ADJUSTMENT CASH FLOW PROJECTIONS
Table 2-11 shows the cash flow projections for the no revenue adjustment financial plan. Revenues3 (Lines 1-7) are from Table 2-4. Operating expenses (Lines 9-13) are from Table 2-6. Net operating revenue (Line 15) is equal to the difference between total revenues (Line 7) and total expenses (Line 13). Debt service (Lines 17-20) is from Table 2-7. Rate funded CIP (Line 23) is the total capital projects from Table 2-9. The status quo scenario assumes no new debt; all CIP is expected to be either grant or rate funded. Net cash flow (Line 26) is equal to the net operating revenue (Line 15) less debt service (Line 20) and rate funded CIP (Line 23). Loan proceeds and debt funded CIP are not included in the cash flow projections.
The net operating revenue in this scenario is positive for all years, meaning that the City’s current revenues are sufficient to fund its operating expenses. However, the net cash flow in the status quo scenario is negative for all years, meaning that the City’s current revenues are not sufficient to fund its debt service and annual CIP.
3 Interest income (Line 6) is different in the status quo financial plan scenario because it is based on projected fund balances. The status quo scenario results in lower fund balances; therefore, the City has less interest income. Table 2-4 shows the interest income for the proposed financial plan scenario. 82 City of Shasta Lake 2025 Wastewater Rate Study
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14 Table 2-11: Projected Cash Flows (No Revenue Adjustment Financial Plan) Line Cash Flow Projections FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 1 Revenues
2 Rate Revenues at Existing Rates $3,863,711 $3,863,711 $3,863,711 $3,863,711 $3,863,711 $3,863,711 3 Revenue Adjustments $0 $0 $0 $0 $0 $0
4 Service Connection Fee $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 5 All Other Revenues $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 6 Interest Income $6,000 $6,000 $57,019 $0 $0 $0
7 Subtotal - Revenues $3,877,211 $3,877,211 $3,928,231 $3,871,211 $3,871,211 $3,871,211 8 9 Operating Expenses
10 Wastewater Administration $626,588 $658,363 $679,339 $701,005 $723,385 $746,505 11 Distribution/Collection $913,316 $910,816 $939,090 $968,251 $998,326 $1,029,345 12 Treatment/Resource $1,565,722 $1,554,738 $1,626,471 $1,702,660 $1,783,660 $1,869,861 13 Subtotal - Operating Expenses $3,105,626 $3,123,917 $3,244,900 $3,371,916 $3,505,372 $3,645,710 14 15 Net Revenue $771,585 $753,294 $683,331 $499,296 $365,840 $225,501 16 17 Debt Service
18 Existing Debt $627,586 $627,586 $627,586 $627,586 $627,586 $627,586 19 Proposed Debt $0 $0 $0 $0 $0 $0
20 Subtotal - Debt Service $627,586 $627,586 $627,586 $627,586 $627,586 $627,586 21 22 Capital Projects
23 Rate Funded CIP $995,000 $725,000 $4,235,000 $551,250 $578,813 $607,753 24 Subtotal - Capital Projects $995,000 $725,000 $4,235,000 $551,250 $578,813 $607,753 25 26 Net Cash Flow ($851,000) ($599,291) ($4,179,255) ($679,540) ($840,559) ($1,009,838) 83 City of Shasta Lake 2025 Wastewater Rate Study
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15 NO REVENUE ADJUSTMENT FUND BALANCE PROJECTIONS
Table 2-12 shows the fund balance projections for the no revenue adjustment financial plan. Based on the sources (revenues) and uses (operating expenses, debt service, and CIP) of funds, the City’s fund balances will be negative by the end of FY 2027. At the end of the study period, the City’s fund balances will be approximately negative $3.3 million in FY 2030, from a starting balance of $4.6 million in FY 2024.
This represents a net loss of $7.9 million in six years.
Table 2-12: Projected Fund Balances (No Revenue Adjustment Financial Plan) Line Fund Balance Projections FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 1 Combined Beginning Fund Balance $4,584,127 $3,870,623 $3,391,199 ($788,056) ($1,467,596) ($2,308,155) 2 3 Sources of Funds
4 Rate Revenues $3,863,711 $3,863,711 $3,863,711 $3,863,711 $3,863,711 $3,863,711 5 Revenue Adjustments $0 $0 $0 $0 $0 $0
6 Non-Rate Revenues $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 7 Grant Proceeds $0 $0 $7,000,000 $0 $0 $0
8 Debt Proceeds $0 $0 $0 $0 $0 $0
11 Calculated Interest Income $143,496 $125,867 $57,019 $0 $0 $0 12 Subtotal - Sources of Funds $4,014,708 $3,997,078 $10,928,231 $3,871,211 $3,871,211 $3,871,211 13 14 Uses of Funds
15 Operating Expenses $3,105,626 $3,123,917 $3,244,900 $3,371,916 $3,505,372 $3,645,710 16 Debt Service $627,586 $627,586 $627,586 $627,586 $627,586 $627,586 17 Grant Funded CIP $0 $0 $7,000,000 $0 $0 $0
18 Debt Funded CIP $0 $0 $0 $0 $0 $0
19 Rate Funded CIP $995,000 $725,000 $4,235,000 $551,250 $578,813 $607,753 20 Subtotal - Uses of Funds $4,728,212 $4,476,503 $15,107,486 $4,550,751 $4,711,770 $4,881,049 21 22 Ending Balances $3,870,623 $3,391,199 ($788,056) ($1,467,596) ($2,308,155) ($3,317,993) 23 24 Debt Reserve - CWSRF Loan $627,586 $627,586 $627,586 $627,586 $627,586 $627,586 84 City of Shasta Lake 2025 Wastewater Rate Study
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16 NO REVENUE ADJUSTMENT FINANCIAL PERFORMANCE
The City’s financial performance is evaluated based on the reserve targets and debt coverage requirements, as shown in Table 2-13. Under the status quo financial plan, the City will not meet its reserve targets from FY 2027 to FY 2030. The City will not be able to meet its debt coverage requirements in FY 2027 through 2030 without any revenue adjustments. Fund balances and debt coverage requirements are the City’s constraining factors during the study period.
Table 2-13: Forecasted Financial Performance (No Revenue Adjustment Financial Plan) Line Financial Performance FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 1 Existing Reserve Targets
2 Operating Reserve Target $155,281 $156,196 $162,245 $168,596 $175,269 $182,286 3 Capital Projects Reserve
Target
$500,000 $500,000 $500,000 $500,000 $500,000 $500,000
4 Combined Reserve Target $655,281 $656,196 $662,245 $668,596 $675,269 $682,286 5 Combined Reserves $3,870,623 $3,391,199 ($788,056) ($1,467,596) ($2,308,155) ($3,317,993) 6 Meets Target? Yes Yes No No No No
7 8 Recommended Reserve Targets
9 Operating Reserve Target $776,407 $780,979 $811,225 $842,979 $876,343 $911,428 10 Capital Projects Reserve
Target
$708,506 $669,782 $669,782 $669,782 $669,782 $669,782
11 Emergency Reserve Target $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 12 Combined Reserve Target $1,584,913 $1,550,761 $1,581,007 $1,612,760 $1,646,124 $1,681,209 13 Combined Reserves $3,870,623 $3,391,199 ($788,056) ($1,467,596) ($2,308,155) ($3,317,993) 14 Meets Target? Yes Yes No No No No
15 16 Debt Coverage Target
17 Required Debt Coverage 110% 110% 110% 110% 110% 110% 18 Calculated Debt Coverage 123% 120% 109% 80% 58% 36%
19 Meets Target? Yes Yes No No No No
Figure 2-1 shows the comparison of revenues and the revenue requirement for the no revenue adjustment scenario. The stacked bars represent the revenue requirements, or costs: dark blue for O&M expenses, green for debt service, and light blue for rate funded CIP. The City will not be adding to its reserves (grey bars) in this scenario. The current revenue, shown as a solid line, is lower than the revenue requirements, meaning that revenues are insufficient to fund necessary costs. 85 City of Shasta Lake 2025 Wastewater Rate Study
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17 Figure 2-1: Revenue Requirements vs. Revenues (No Revenue Adjustment Financial Plan) Figure 2-2 shows the debt coverage projections in the status quo financial plan. The required debt coverage (dashed line) is equal to 110%. The City will not meet its debt coverage requirements starting in FY 2027 in this scenario.
Figure 2-2: Projected Debt Coverage (No Revenue Adjustment Financial Plan) Figure 2-3 shows the fund balance projections in the status quo financial plan. The City’s ending balance (green bars) will not meet either the current or proposed reserve targets (solid and dashed lines, respectively) from FY 2027 through FY 2030. The City’s fund balances will be negative by FY 2027.
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18 Figure 2-3: Projected Fund Balances (No Revenue Adjustment Financial Plan)
2.8 PROPOSED FINANCIAL PLAN
PROPOSED FINANCIAL PLAN SCENARIO
The proposed financial plan includes five years of revenue adjustments and a short-term loan in FY 2027, shown in Table 2-14. These adjustments are needed to maintain the City’s financial sufficiency and were developed based on direction from the City’s City Council.
Table 2-14: Proposed Financial Plan Scenario
Line Fiscal Year Revenue
Adjustments
Effective
Month
Short-term
Loan
1 FY 2026 5.0% January $0
2 FY 2027 5.0% January $3,600,000
3 FY 2028 5.0% January $0
4 FY 2029 5.0% January $0
5 FY 2030 5.0% January $0
PROPOSED CASH FLOW PROJECTIONS
Table 2-15 shows the cash flow projections for the proposed financial plan. Revenues (Lines 1-7) are from Table 2-4. Operating expenses (Lines 9-13) are from Table 2-6. Net operating revenue (Line 15) is equal to the difference between total revenues (Line 7) and total expenses (Line 13). Debt service (Lines 17-20) is from Table 2-7. Rate funded CIP (Line 23) is the total capital projects from Table 2-9.
The status quo scenario assumes no new debt; all CIP is expected to be either grant or rate funded.
Net cash flow (Line 26) is equal to the net operating revenue (Line 15) less debt service (Line 20) and rate funded CIP (Line 23). Loan proceeds and debt funded CIP are not included in the cash flow projections.
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19 Table 2-15: Projected Cash Flows (Proposed Financial Plan) Line Cash Flow Projections FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 1 Revenues
2 Rate Revenues at Existing Rates $3,863,711 $3,863,711 $3,863,711 $3,863,711 $3,863,711 $3,863,711 3 Revenue Adjustments $0 $96,593 $294,608 $502,524 $720,836 $950,063 4 Service Connection Fee $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 5 All Other Revenues $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 6 Interest Income $6,000 $6,000 $111,722 $93,978 $79,031 $65,394 7 Subtotal - Revenues $3,877,211 $3,973,804 $4,277,541 $4,467,713 $4,671,078 $4,886,668 8 9 Operating Expenses
10 Wastewater Administration $626,588 $658,363 $679,339 $701,005 $723,385 $746,505 11 Distribution/Collection $913,316 $910,816 $939,090 $968,251 $998,326 $1,029,345 12 Treatment/Resource $1,565,722 $1,554,738 $1,626,471 $1,702,660 $1,783,660 $1,869,861 13 Subtotal - Operating Expenses $3,105,626 $3,123,917 $3,244,900 $3,371,916 $3,505,372 $3,645,710 14 15 Net Revenue $771,585 $849,887 $1,032,641 $1,095,798 $1,165,706 $1,240,958 16 17 Debt Service
18 Existing Debt $627,586 $627,586 $627,586 $627,586 $627,586 $627,586 19 Proposed Debt $0 $0 $443,847 $443,847 $443,847 $443,847 20 Subtotal - Debt Service $627,586 $627,586 $1,071,433 $1,071,433 $1,071,433 $1,071,433 21 22 Capital Projects
23 Rate Funded CIP $995,000 $725,000 $635,000 $551,250 $578,813 $607,753 24 Subtotal - Capital Projects $995,000 $725,000 $635,000 $551,250 $578,813 $607,753 25 26 Net Cash Flow ($851,000) ($502,699) ($673,792) ($526,885) ($484,539) ($438,228) 88 City of Shasta Lake 2025 Wastewater Rate Study
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20 PROPOSED FUND BALANCE PROJECTIONS
Table 2-16 shows the fund balance projections for the proposed financial plan. Based on the sources (revenues, revenue adjustments, debt proceeds) and uses (operating expenses, debt service, and CIP) of funds, the City’s fund balances will be approximately $1.37 million at the end of the study in FY 2030.
Table 2-16: Projected Fund Balances (Proposed Financial Plan) Line Fund Balance Projections FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 1 Combined Beginning Fund Balance $4,584,127 $3,870,623 $3,489,240 $2,815,449 $2,288,563 $1,804,024 2 3 Sources of Funds
4 Rate Revenues $3,863,711 $3,863,711 $3,863,711 $3,863,711 $3,863,711 $3,863,711 5 Revenue Adjustments $0 $96,593 $294,608 $502,524 $720,836 $950,063 6 Non-Rate Revenues $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 7 Grant Proceeds $0 $0 $7,000,000 $0 $0 $0
8 Debt Proceeds $0 $0 $3,600,000 $0 $0 $0
11 Calculated Interest Income $143,496 $127,316 $111,722 $93,978 $79,031 $65,394 12 Subtotal - Sources of Funds $4,014,708 $4,095,120 $14,877,541 $4,467,713 $4,671,078 $4,886,668 13 14 Uses of Funds
15 Operating Expenses $3,105,626 $3,123,917 $3,244,900 $3,371,916 $3,505,372 $3,645,710 16 Debt Service $627,586 $627,586 $1,071,433 $1,071,433 $1,071,433 $1,071,433 17 Grant Funded CIP $0 $0 $7,000,000 $0 $0 $0
18 Debt Funded CIP $0 $0 $3,600,000 $0 $0 $0
19 Rate Funded CIP $995,000 $725,000 $635,000 $551,250 $578,813 $607,753 20 Subtotal - Uses of Funds $4,728,212 $4,476,503 $15,551,333 $4,994,599 $5,155,617 $5,324,896 21 22 Ending Balances $3,870,623 $3,489,240 $2,815,449 $2,288,563 $1,804,024 $1,365,796 23 24 Debt Reserve - CWSRF Loan $627,586 $627,586 $627,586 $627,586 $627,586 $627,586 89 City of Shasta Lake 2025 Wastewater Rate Study
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21 PROPOSED FINANCIAL PERFORMANCE
Table 2-17 shows the forecasted financial performance for the proposed financial plan. Under this plan, the City will meet both its current and proposed reserve targets in all year of the planning period. The City will also be able to meet its debt coverage requirements in all years with the proposed revenue adjustments.
Table 2-17: Forecasted Financial Performance (Proposed Financial Plan) Line Financial Performance FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 1 Existing Reserve Targets
2 Operating Reserve Target $155,281 $156,196 $162,245 $168,596 $175,269 $182,286 3 Capital Projects Reserve
Target $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 4 Combined Reserve Target $655,281 $656,196 $662,245 $668,596 $675,269 $682,286 5 Combined Reserves $3,870,623 $3,489,240 $2,815,449 $2,288,563 $1,804,024 $1,365,796 6 Meets Target? Yes Yes Yes Yes Yes Yes
7 8 Recommended Reserve Targets
9 Operating Reserve Target $776,407 $780,979 $811,225 $842,979 $876,343 $911,428 10 Capital Projects Reserve
Target $348,506 $309,782 $309,782 $309,782 $309,782 $309,782 11 Emergency Reserve Target $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 12 Combined Reserve Target $1,224,913 $1,190,761 $1,221,007 $1,252,760 $1,286,124 $1,321,209 13 Combined Reserves $3,870,623 $3,489,240 $2,815,449 $2,288,563 $1,804,024 $1,365,796 14 Meets Target? Yes Yes Yes Yes Yes Yes
15 16 Debt Coverage Target
17 Required Debt Coverage 110% 110% 110% 110% 110% 110% 18 Calculated Debt Coverage 123% 135% 165% 175% 186% 198% 19 Meets Target? Yes Yes Yes Yes Yes Yes
Figure 2-4 shows the comparison of revenues and the revenue requirement for the proposed scenario. The stacked bars represent the revenue requirements, or costs. The current revenue, shown as a solid line, is lower than the operating revenue requirements (O&M and debt service). The proposed revenue, shown as a dotted line, is greater than the operating revenue requirements, meaning that the City’s revenues can sufficiently fund its operating expenses. Capital expenses will be funded via the short-term loan.
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22 Figure 2-4: Revenue Requirements vs. Revenues (Proposed Financial Plan) Figure 2-5 shows the debt coverage projections in the proposed financial plan. The required debt coverage (dashed line) is equal to 110%. The City is expected to meet its debt coverage requirements for all years of this scenario.
Figure 2-5: Projected Debt Coverage (Proposed Financial Plan) Figure 2-6 shows the fund balance projections in the proposed financial plan. The City’s ending balance (green bars) will meet both the current and proposed reserve targets (solid and dashed lines, respectively) in all five years of the study period.
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23 Figure 2-6: Projected Fund Balances (Proposed Financial Plan) 92 City of Shasta Lake 2025 Wastewater Rate Study
Wastewater Resources Economics
24 3. WASTEWATER RATES
3.1 RATE DESIGN METHODOLOGY
A five-year proposed wastewater rate schedule was developed based on the results of the proposed financial plan and cost-of-service analysis. The key steps in developing the proposed rate schedule are outlined below:
• Rate structure evaluation: The existing rate structure is evaluated, and any proposed changes are identified. Proposed rate structure changes are typically intended to address specific policy objectives or to allocate costs based on the cost-of-service analysis. • Test year rate development: Rates are calculated for the proposed rate structure for the costof-service test year (FY 2025). Rate calculations directly incorporate the unit costs developed in the cost-of-service analysis. The test year rates are revenue neutral, then are increased based on the proposed financial plan revenue adjustments. • Five-year rate schedule development: Proposed rates for the five-year period are calculated by increasing the cost-of-service rates by the proposed annual revenue adjustment percentages from the proposed financial plan.
3.2 PROPOSED CHANGES TO RATE STRUCTURE
The main objective of the rate study was to conduct a comprehensive cost-of-service analysis while maintaining as much of the current wastewater rate structure as possible to minimize customer impacts. The City’s current wastewater rate structure includes a monthly service charge based on customer class.
After examining current customer classification and discussion with City staff regarding customer usage patterns, WRE recommends the following changes:
• Remove the Efficiency Unit customer class as there are no customers currently that fall under that category.
• Combine all residential customers, which currently includes single family, multi-family, and mobile homes, and accessory dwelling units (ADU) into a single residential class. All residential customers will now qualify for the lifeline rates.
• Modify the current non-residential and industrial wastewater calculation from 90% of water usage to 100% of water usage.
3.3 REVENUE REQUIREMENT
The total rate revenue requirement for the test year, FY 2025, is based on the financial plan projections (Table 2-15) and is allocated between the Operating, Capital and Revenue Offset, as shown in Table 3-1. The Operating revenue requirement consists of operating expenses (Line 2). The Capital revenue requirement includes debt service (Line 3), rate funded CIP (Line 4) and adjustments for cash from reserves (Line 14; from Table 2-15, Line 26). The Revenue Offset includes service 93 City of Shasta Lake 2025 Wastewater Rate Study
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25 connection fee, all other revenues, and interest income (Lines 8-10). The total revenue requirement (Line 17) is equal to the amount of rate revenue collected in FY 2025 (Table 2-15, Line 2).
Table 3-1: FY 2025 Revenue Requirement
Line FY 2025 Revenue Requirement Operating Capital Rev. Offset Total 1 Revenue Requirements
2 Operating Expenses $3,105,626 $3,105,626
3 Debt Service $627,586 $627,586
4 Rate Funded CIP $995,000 $995,000
5 Subtotal $3,105,626 $1,622,586 $0 $4,728,212
6 7 Revenue Offsets
8 Service Connection Fee ($1,500) ($1,500)
9 All Other Revenues ($6,000) ($6,000)
10 Interest Income ($6,000) ($6,000)
11 Subtotal $0 $0 ($13,500) ($13,500)
12 13 Adjustments
14 Cash to/(from) Reserves ($851,000) ($851,000)
15 Subtotal $0 ($851,000) $0 ($851,000)
16 17 Total - Revenue Requirement $3,105,626 $771,585 ($13,500) $3,863,711
3.4 UNIT COST CALCULATION
Given the proposed changes to the wastewater rate structure, WRE needed to recalculate the single family equivalency connection (SFEC) in the system to account for the changes outlined in Section
3.2. Table 3-2 shows the number of SFEC under the current and proposed wastewater rate structure.
Table 3-2: Customer Units Comparison
Line Customer Class Current SFEC Proposed SFEC
1 Residential 3,532 3,682
2 Non-Residential 348 351
3 Industrial 107 125
4 Total SFEC 3,987 4,158
Table 3-3 shows the unit cost calculation per SFEC for FY 2025. The cost per SFEC is determined by dividing the total proposed SFEC (Table 3-2) by the total revenue requirement (Table 4-1) and by 12 billing periods per year.
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26 Table 3-3: Unit Cost Calculation
Line FY 2025
1 Total Revenue Requirement $3,863,711
2 Total SFEC 4,158
3 Cost per SFEC per billing period $77.44
3.5 PROPOSED MONTHLY SERVICE CHARGE
Table 3-4 shows the proposed daily service charge for FY 2026 based on the revenue neutral rate (Table 3-3, Line 3) adjusted by the proposed revenue adjustment of 5% in the first year (Table 2-14) and rounded up to the nearest cent.
Table 3-4: Proposed Monthly Service Charge after Adjustment Line Customer Class
Revenue
Neutral
Rate
FY 2026
Rate
Current
Rate
Difference
($)
Difference
(%)
1 Residential $77.44 $81.31 $80.76 $0.55 1%
2 Residential - Lifeline $61.95 $65.05 $64.61 $0.44 1%
3 Multi-Family Dwelling $77.44 $81.31 $68.65 $12.66 18% 4 Non-Residential $77.44 $81.31 $80.76 $0.55 1%
5 Industrial $77.44 $81.31 $80.76 $0.55 1%
3.6 PROPOSED WASTEWATER RATE SCHEDULE
PROPOSED FIVE-YEAR REVENUE ADJUSTMENTS
Table 3-5 shows the revenue adjustments for the five-year period and their effective date based on the proposed financial plan (Table 2-14).
Table 3-5: Proposed Revenue Adjustments
Line Fiscal Year Revenue
Adjustments Effective Date
1 FY 2026 5.0% 1/1/2026
2 FY 2027 5.0% 1/1/2027
3 FY 2028 5.0% 1/1/2028
4 FY 2029 5.0% 1/1/2029
5 FY 2030 5.0% 1/1/2030
PROPOSED FIVE-YEAR WASTEWATER RATE SCHEDULE
The proposed five-year wastewater rate schedules are based on the proposed rate structure changes, the cost-of-service analysis, and the proposed revenue adjustments (Table 3-5) in the five-year period. The proposed rates for FY 2026 through FY 2030 were calculated by increasing the FY 2025 rates by the revenue adjustments, rounded up to the nearest cent. Table 3-6 shows the current and 95 City of Shasta Lake 2025 Wastewater Rate Study
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27 proposed monthly wastewater service charges. Residential lifeline rates are 80% of the residential rates and will be funded through General Fund monies.
Table 3-6: Proposed 5-year Wastewater Rate Schedule4
Line Customer
Class
As of
7/1/25
Effective
1/1/26
Effective
1/1/27
Effective
1/1/28
Effective
1/1/29
Effective
1/1/30
1 Residential $80.76 $81.31 $85.38 $89.65 $94.14 $98.85 2 Residential -
Lifeline $64.61 $65.05 $68.31 $71.73 $75.32 $79.09
3 Multi-Family
Dwelling $68.65 $81.31 $85.38 $89.65 $94.14 $98.85
4 NonResidential
(per SFEC)
$80.76 $81.31 $85.38 $89.65 $94.14 $98.85
5 Industrial (per
SFEC) $80.76 $81.31 $85.38 $89.65 $94.14 $98.85
3.7 CUSTOMER IMPACTS
Table 3-7 shows the proposed monthly bill impacts for different customer classes within the City’s service area. Single family customers will see an increase of $0.55 per month starting on 1/1/26.
Table 3-7: Proposed Customer Impacts
Line Customer Class Current Bill Proposed
Bill $ Difference % Difference
1 Residential $80.76 $81.31 $0.55 1%
2 Residential - Lifeline $64.61 $65.05 $0.44 1%
3 Multi-Family Dwelling $68.65 $81.31 $12.66 18%
4 Non-Residential $80.76 $81.31 $0.55 1%
5 Industrial $80.76 $81.31 $0.55 1%
4 SFEC = Single Family Equivalency Connection Charge
1 SFEC = 170 gpd of wastewater flow
Lifefine rate is 80% of residential
Non-Residential rate is based on 100% of average monthly winter consumption between Jan-Mar Industrial rate is based on 100% of average water use
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