Staff Report — Simi Valley City Council, November 17, 2025

CITY OF SIMI VALLEY

STAFF REPORT
N
ovember 17, 2025
To: B
oard of Directors, Ventura County Waterworks District No. 8 Fr
om: Public Works Department
Ron Fuchiwaki, Director of Public Works
Subj
ect: A Public Hearing to approve the Water Rate Study and Capacity Fee Update (Calendar Years 2026-2030), make findings pursuant to Proposition 218, and consider adoption of a r esolution establishing Water Service Rates commencing in 2026
Staff Recommendation
I
t is recommended that the Board of Directors:

1. A
pprove the Water Rate Study and Capacity Fee Update, Calendar Years 2026-2030 (Attachment C);

2. A
t the close of the public hearing and following the consideration of public testimony, find that a notice in accordance with Proposition 218 (Article XIII D, Section 6 of the California Constitution) (Prop 218) was sent to waterworks ratepayers describing the Proposed Water Rate Adjustments and the procedure for protesting the rate increase, and further find that a majority of the ratepayers did not protest the proposed rates;

3. I
f the findings in Recommendation No. 2 are made, then adopt Resolution No. WWD-300 ( Attachment B ) establishing Water Service Rates , commencing January 1, 2026, and repealing Resolution No. WWD-276.

Background
V
entura County Waterworks District No. 8 (District) is a financially self -supporting Enterprise Fund that is funded by user fees to provide daily operation and maintenance of the water distribution system. Maintenance projects could include major facility component replacements carried out as capital projects. The District is supported primarily by Water Service Rates that include both fixed Service Charges and Water Commodity Charges billed based on metered water use. Current single-family residential rates include a fixed Service Charge of $78.04 bi -monthly (equal to $39.02 per month) plus a Commodity Charge of $5.77 per hundred cubic feet (equal to approximately $0.77 per hundred gallons).

T
he District’s current five-year Water Service Rates were approved on January 27, 2020 (Resolution No. WWD-276). Those rates included 3.5% annual rate adjustments plus an annual pass -through of increases to the wholesale water supply charges levied by Calleguas Municipal Water District (Calleguas). The approved five-year schedule of fees AGENDA ITEM NO.

5B
has been implemented at the beginning of each calendar year. The final year of that schedule is calendar year 2025.

At the September 8 , 2025, Board of Directors (Board) meeting, the Board directed staff to initiate the Proposition 218 process by notifying all property owners served by the District of a proposed rate adjustment. The Prop 218 Notice was mailed on September 30, 2025, and complies with Article XIII D, Section 6, of the California Constitution, by describing the proposed Water Rate Adjustments and the right of a property owner to protest. The Board also set November 17, 2025, as the date of a public hearing. If, at the conclusion of the Public Hearing, written protests do not constitute a majority of affected parcels , i.e. less than a majority (<50%) of property owners protest the proposed water rate adjustments, then the Board may adopt the rates. The Board can adopt the new rates through a resolution by a majority vote. An ordinance is not required.

Discussion

Waterworks Budget

This proposed rate study implements a balanced and linear approach to applying rates to offset revenues and anticipated fluctuations in expenses. The proposed rate increases are designed to gradually eliminate the projected deficit for the next four years, and by the end of the 5-year schedule, expected revenues and expenses will be balanced. The primary sources of revenue are Service Charges and Commodity Charges, which comprise approximately 93% of the total revenue. Water expenditures consist of operating costs (cost of water purchases, costs required to operate and maintain the water distribution system, salaries, and supplies) and Capital Improvement Project costs, which are typically associated with the rehabilitation and replacement of water infrastructure due to age-related issues and to address seismic deficiencies.

Water Rate Study and Capacity Fee Update

A utility fee increase requires that an agency prepare a report that clearly shows the nexus between the cost to provide the utility service and the proposed fees to cover costs. Staff have been analyzing revenues and expenses related to water services for several months to examine and document the nexus between the proposed rates and the cost of providing services. The Water Rate Study and Capacity Fee Update, Calendar Years 2026- 2030 (Report) has been prepared by Bartle Wells Associates (BWA) to analyze costs, water cost of service, and the resulting appropriate rates needed to support the District’s cost of providing service for the next five calendar years beginning in 2026.

The Report was prepared using the principles established by the American Water Works Association (AWWA), M1 Principles of Water Rates, Fees and Charges. The California Constitution includes two key articles that directly govern or impact the District’s water rates: Article 10 and Article 13D. The rates developed in this study were designed to comply with both constitutional mandates as well as various provisions of California law that support and add further guidance for implementing these constitutional requirements.

2 The rate-setting process begins with determining the adequate and appropriate level of revenue, followed by allocating water system costs to the relevant categories for recovery through the various rate components. The final step, rate design, uses the rev enue requirement and cost-of-service analysis to establish rates for each customer class. The proposed rates incorporate rate components, including commodity charges and fixed charges, differentiated by customer class and meter size. BWA analyzed the difference between existing and reallocated revenues for each customer class, and rates were adjusted to reflect the proposed 3.5% overall annual increases, phased in over five years to minimize the impact on ratepayers. The rates are designed to support balanced budgets upon full implementation. As part of the rate structure realignment, first -year modifications were adjusted to better align rates with the current cost of service. As a result, the Single-Family Residential baseline rate will decrease by 2.33% in 2026 . Auto Fire Sprinkler fixed charges will also decrease, with the amount of the reduction varying based on meter size. The proposed rates are shown in the chart on Attachment B.

Changes from 2020 Cost of Service Evaluation

The previous water rate study was approved the District Board in 2020. This water rate study led to the adoption of five (5) years of rate increases that averaged 3.5% per year from calendar years 2021 through 2025. The rate increases adopted in 2020 were needed to structurally support ongoing operations and rebuild the reserve fund. The rate structure also authorized a pass-through increase from imported water costs adopted by Calleguas.

The proposed 2025 – 2030 water rate revenue adjustments are structured to:

1. Meet budgeted and projected operating expenses to maintain current service levels. Operations and maintenance costs are projected to increase from $47.5 million in FY 2024 -2025 to $65.8 million in FY 2029- 2030, an average of $3.7 million per year. The proposed rate increases are designed to gradually eliminate annual budget deficits and address the escalating cost of service, which is projected to increase by 3.5% per year.

2. Address high- priority capital improvement needs of the District’s aging water system infrastructure. Many of the District’s facilities are approaching the end of their useful lives and require rehabilitation and replacement to support safe and reliable service. Planned capital expenses are estimated to average $10.4 million per year for the next five years.

3. A chieve minimum emergency reserve target, based on industry best practices, consisting of three components:

a. Operating Reserve – equal to 25% of annual Operating and Maintenance expenses, which ensures sufficient liquidity to meet unforeseen operating cost fluctuations and revenue shortfalls.
b. Capital Reserve – equal to the average of the five-year Capital Improvement Program (CIP), designed to provide a stable funding source for infrastructure rehabilitation and replacement.
3 c. Rate Stabilization Reserve – equal to 5% of annual commodity charge revenues, functioning as an emergency cushion during droughts, economic downturns, or other events that significantly impact consumption -based revenues.

The financial projections indicate the need for 3.5% annual rate increases over the next five years to address current deficits, fund the District’s operating and capital programs, and maintain financial stability. The increase or decrease in rates within each customer classification are dependent upon the cost of service specific to each customer classification and meter size. The bimonthly fixed service charge for single- family residential customers is currently $78.04 and is proposed to decrease slightly to $76.22 in 2026.

Annual Calleguas "Pass-Through" Rate Changes

The District purchases water from Calleguas. The Calleguas Board of Directors typically adopts water rates on an annual basis, with new rates generally effective on January 1st of each year. The proposed commodity rates for 2026 include Calleguas’ rate increase for the upcoming year. However, since future Calleguas rate increases are not currently known, an automatic "pass-through" adjustment is again proposed to be built into future Commodity Charges (2027 through 2030) as has been done in past years. As Calleguas implements its cost increases to the District , the effect will be passed- through to the District customers by raising Commodity Charges a proportional amount after a notice period of no less than 30 days. The District will provide its customers with the expected pass-through adjustment(s), which will generally be calculated as the total projected cost increase divided by the total projected annual water consumption. The proposed rate structure includes a pass -through methodology for modifying the District’s Commodity Charges based upon Calleguas’ adop ted water supply cost. The pass -through rate calculation is presented in the Report, Appendix A.

Proposed Water Service Rates per Proposition 218 Notice

The following tables show the proposed water service rates as presented in the Prop 218 notice.

Proposed Bimonthly Water Service Rates
1 5-Year Rate Schedule (2026 – 2030)

CHARGE

CATEGORIES

CURRENT
2025
RATES
Proposed
2026
RATES
Proposed RATES
2027 2028 2029 2030
Single Family $5.77 $6.57 $6.78 $7.01 $7.24 $7.48
Commercial/Multi-
Family/Other $5.52 $6.57 $6.78 $7.01 $7.24 $7.48
Landscape/School/etc. $6.30 $6.57 $6.78 $7.01 $7.24 $7.48 Lift Charge (per HCF per
Lift) $0.17 $0.19 $0.19 $0.20 $0.21 $0.22
Well Water $1.54 $1.59 $1.65 $1.71 $1.77 $1.83
Recycled Water $3.58 $3.76 $3.89 $4.02 $4.16 $4.31

Notes:

1. Proposed water rates are effective January 1st of each year. The commodity unit charge is based on one hundred cubic feet (HCF), also referred to as one “Billing Unit”, of metered water use — equivalent to approximately 748 gallons.

2. The commodity charges include the anticipated 2026 cost increase from Calleguas.

Commodity charges for 2027– 2030 do not include potential future cost increases from Calleguas beyond 2026, which once determined will be passed through to customers in accordance with Government Code Section 53756. Commodity charges will be updated annually on January 1.

3. Pass-through rate increases do not apply to well water, recycled water, or lift charges.

5 Other Options for Water Service Rates

The Board has the option to implement increases to the Water Service Rates that are less than those proposed in the Prop 218 Notice. The Board could, for example, adopt a three-year increase and not approve implementing the fourth or fifth year as has been previously discussed, or the Board could maintain current water rates. Staff recommends that the Board adopt the proposed rates stated in the Prop 218 notice.

Typical Single-Family Bill in 2026

The table below presents the bimonthly bill impacts for single -family customers in 2026 under various usage amounts.

TYPICAL BIMONTHLY CUSTOMER BILL IN 2026

SINGLE-FAMILY

RESIDENTIAL

BILL AMOUNT
Current Bill Proposed
Bill1,2
Rate
Increase
10 HCF $135.74 $141.92 4.55%
20 HCF $193.44 $207.62 7.33%
30 HCF $251.14 $273.32 8.83%

Notes:

1. Rates will be effective January 1, 2026.

2. The proposed bills include the additional pass-through rate from Calleguas.

3. HCF stands for hundred cubic feet. One hundred cubic feet equals approximately 748 gallons.

4. Bimonthly bills will be sent to customers every two months.

AB 367 (Benett)

On October 15, 2025, Assemblymember Bennett's AB 367 was signed by the Governor.

The bill increases wildfire preparation by Ventura County water suppliers. It requires water districts to:

• Develop emergency preparedness plans , including appropriately filling tanks during red flag warnings.
• Ensure prompt backup power is available to keep water pumps working after power shutoffs.
• Fire hardening appropriate water infrastructure and backup generators.

While AB 367 is well- intentioned to wildfire resiliency in Ventura County , it poses a significant financial impact on the Waterworks Fund. The bill mandates water suppliers in Ventura County to take specific actions related to fire suppression to enhance fire safety and water resource management in the region. The law takes effect July 1, 2030, with key milestones in 2026–2027 related to developing emergency preparedness plans and coordinating with the Ventura County Fire Department on new fire-hardening standards. 6 Implementation of the bill's requirements, particularly related to the installation, operation, and maintenance of emergency backup sources, would present major financial impacts to the District’s ratepayers. The estimated cost to install permanent generators at 16 pump stations is $21 million, not including additional costs for operation and maintenance.

This presents considerable financial and logistical challenges, without the identification of dedicated funding.

The financial impact of AB 367 was not included in the Report nor the District has plans in the current 5- year Capital Improvement Program to install permanent backup generators at all 16 pump stations. The District will conduct an analysis and prepare a supplemental report to determine the best approach for implementing AB 367 requirements and, if required, the impact on future water rates and Waterworks budget.

Public Outreach

Staff conducted public outreach to better inform the public regarding the proposal to increase Water Service Rates and provide transparency. Presentations were made to the four Neighborhood Councils on October 9, 14, 16, and 21 Staff also held a special public meeting on Tuesday, October 7, 2025. A Public Service Announcement was posted on the City’s website, Simi Valley Television (SVTV), and the City's social media pages. Staff was not able to schedule a presentation to the Chamber of Commerce Economic Development Committee prior to the preparation and distribution of the staff report.

However, the presentation will take place on November 13, 2025, prior to the Board meeting.

Prop 218 Process Conducted and Ballot Results

Unlike taxes, which may be used for general purposes, utility service charges (such as Water Service Rates) are service-related charges that may only be used to confer a direct benefit, such as water services, directly to the payer. In accordance with cour t rulings, it has been concluded that Prop 218 governs utility rates. The Prop 218 process requires the District to mail notices of the proposed rate increases at least 45 days prior to the date of the public hearing at which the proposed rates will be considered.

The Proposed Water Rate Adjustments Prop 218 Notice provided a complete and compliant description of a legitimate protest. The District retained a mail service, Mailstream, to print and mail all notices directly to all 28,686 Waterworks District property- owner customers using USPS delivery, First-Class services. A total of 241 notices were not delivered and returned from the post office due to propert y vacancies or unverified addresses.

The effective date for the initial increase is January 1, 2026, and annually, thereafter, for four more years (2027 , 2028, 2029, and 2030). For the proposed Water Service Rates, the Board would ultimately determine whether to increase rates after a public hearing is conducted, and all written protests are tallied. If written protests are received from a majority (>50%) of property owners protest, then rates cannot be increased. However, if written protests do not constitute a majority of affected parcels, the Board can consider 7 adopting the proposed rates. The Board can adopt the new rates through a resolution by a majority vote. An ordinance is not required.

At the time this staff report was prepared, 783 (2.8%) written protests had been received.

A Supplemental staff report will be provided at the public hearing to tally all written protests received prior to the Hearing.

Financial Impact

Approval of the rate adjustments will provide necessary revenue to maintain reliable water service and fund critical infrastructure needs. Without the increase, the District budget would face significant shortfalls, resulting in deferred maintenance, postponed projects, and reduced operational capacity.

City Council Priority

This item supports the Fiscal Stability and Reliable Infrastructure Pillars of Excellence.

Suggested Motion

I move that the Board of Directors:

1. Approve the Water Rate Study and Capacity Fee Update, Calendar Years 2026-2030;

2. At the close of the public hearing and following the consideration of public testimony, find that a notice in accordance with Prop 218 was sent to waterworks ratepayers describing the Proposed Water Rate Adjustments and the procedure for protesting the rate increase, and further find that a majority of the ratepayers did not protest the proposed rates;

3. If the findings in Recommendation No. 2 are made, then adopt Resolution No. WWD-300 establishing Water Service Rates, commencing January 1, 2026, and repealing Resolution No. WWD-276.

Summary

The District is a financially self-supporting Enterprise Fund that is funded by user fees to provide daily operation and maintenance of the water distribution system. Maintenance projects could include major facility component replacements carried out as capital projects. The District is supported primarily by Water Service Rates that include both fixed Service Charges and Water Commodity Charges billed based on metered water use. At the September 8, 2025, Board meeting, the Board directed staff to initiat e the Prop 218 process by notifying all property owners served by the District of a proposed rate adjustments. The Board also set November 17, 2025, as the date of a public hearing. If, at the conclusion of the Public Hearing, written protests do not constitute a majority of affected parcels, less than a majority ( <50%) of property owners protest the proposed water rate adjustments, then the Board may adopt the rates. Staff recommends the Board approve the Water Rate Study and Capacity Fee Update, Calendar Years 2026- 2030; and, at the close of the public hearing and following the consideration of public testimony, 8 find that a notice in accordance with Prop 218 was sent to waterworks ratepayers describing the Proposed Water Rate Adjustments and the procedure for protesting the rate increase, and further find that a majority of the ratepayers did not protest the proposed rates; and, if the findings in Recommendation No. 2 are made, then adopt Resolution No. WWD -300 establishing Water Service Rates, commencing January 1, 2026, and repealing Resolution No. WWD-276.

Prepared by: Michel Kadah, Principal Engineer

Attachments

Attachment A – Public Hearing Procedure
Attachment B – Resolution No. WWD-300
Attachment C – Water Rate Study and Capacity Fee Update, Calendar Years 2026-2030 9 Attachment A

PUBLIC HEARING PROCEDURE

HEARING DATE: November 17, 2025

1. CITY CLERK: This is the time and place set for a public hearing to consider approving the Water Rate Study and Capacity Fee Update
(Calendar Years 2026- 2030), make findings pursuant to
Proposition 218, and consider adoption of a r esolution establishing Water Service Rates commencing January 1,
2026, and repealing Resolution No. WWD-276.

2. MAYOR: Before we begin, are there any ex parte communications to report?

3. ANY COUNCIL
MEMBER: (Report)

4. MAYOR: Staff may begin with the oral report on this matter.

5. STAFF: (Report)

6. MAYOR: Any questions of staff from City Council Members? (Questions of staff and staff response)

7. MAYOR: At this time I would like to open the hearing for anyone in the City Council Chambers wishing to be heard on this matter?

8. AUDIENCE: Public Testimony and Comments

9. MAYOR: Does Staff desire to respond to any comments or issues raised?

10. STAFF: (Response to comments and additional City Council questions)

11. MAYOR: Any further comments or questions from City Council Members?

12. MAYOR: The hearing is now closed.

13. MAYOR: I will now entertain a motion.

10 14. ANY COUNCIL
MEMBER : NOTE: PICK THE APPLICABLE ACTION(S) & CHANGE ITEM NUMBER(S) OF ACTION(S) AS NEEDED:

City Council Actions (by motion of any Council Member):

1) Approve the Water Rate Study and Capacity Fee Update (Calendar Years 2026-2030);

2) Find that a majority of the ratepayers did not protest the proposed increase to water rates and charges;

3) Adopt, modify, or not adopt Resolution No. WWD-300
establishing Water Service Rates and repealing
Resolution No. WWD 276 (requires a second and a vote;
requires reading of resolution).

*Any action to refer the matter back to staff or to continue the matter requires a second and a vote.

15. ANY COUNCIL
MEMBER : Second

16. MAYOR: (Call for vote)

17. MAYOR: Proceed to the next item.

11 Attachment B

RESOLUTION NO. WWD-300

A RESOLUTION OF THE BOARD OF DIRECTORS OF
VENTURA COUNTY WATERWORKS DISTRICT NO. 8

ESTABLISHING WATER SERVICE RATES AND
REPEALING RESOLUTION NO. WWD-276

WHEREAS, the Board of Directors established water rates and charges by Resolution No. WWD-276, which became effective on January 01, 2021; and

WHEREAS, the water service rates to be modified are for the purposes of:
(1) purchasing water from Calleguas Municipal Water District (Calleguas); (2) meeting District operating expenses; (3) funding repair and rehabilitation capital projects within the existing service area; (4) maintaining an adequate financial reserve; and (5) promoting water conservation; and

WHEREAS, the proposed water rates are based upon the findings and recommendations contained in the Water Rate Study and Capacity Fee Update, Calendar Years 2026-2030 (Engineer's Report); and

WHEREAS, pursuant to Section 21080 of the Public Resources Code, the setting of water rates is exempt from the preparation of an environmental impact report; and
WHEREAS, Government Code Section 53756 provides that the agency providing a utility service may adopt a schedule of fees with an automatic adjustment for inflation and/or pass-through costs for up to five years; and

WHEREAS, a notice in accordance with the California Constitution Article XIIID Section 6 , as it specifically relates to setting and increasing property related fees (sometimes referred to as Proposition 218) was sent to all District customers describing the proposed water service rates and the protest procedure; and

WHEREAS, a majority of the District customers did not protest the proposed water service rates.

NOW, THEREFORE, THE BOARD OF DIRECTORS OF VENTURA
COUNTY WATERWORKS DISTRICT NO. 8 DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. The Water Rate Study and Capacity Fee Update, Calendar Years 2026-2030 (Engineer's Report), on file with the City Clerk/District Secretary, are hereby approved.

SECTION 2 . Water service rates, as shown in Exhibit A , shall become effective January 1, 2026 , and will be implemented to coordinate with regular billing schedules immediately following the effective date as soon as administratively possible.

12 RES. NO. WWD-300

The Board of Directors at its discretion may at any time, after 10 days notice and a public hearing, reduce these fees.

SECTION 3 . Water service rates may be automatically adjusted to accommodate increases in wholesale water charges by Calleguas, after due notice to the customers of such an increase.

SECTION 4. Water rates and charges set by Resolution No. WWD-276 are repealed upon implementation of the new Schedule of Fees.

SECTION 5. The District Secretary shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the Office of the District Secretary.

PASSED and ADOPTED this 17th day of November 2025.

Attest:

Lucy Blanco, City Clerk/ Dee Dee Cavanaugh, Chair of the Ventura District Secretary County Waterworks District No. 8

Approved as to Form: Approved as to Content:

Algeria R. Ford, District Counsel Samantha C. Argabrite, District Manager

Ronald K. Fuchiwaki
Public Works Director

13 RES. NO. WWD-300

EXHIBIT A

WATER SERVICE RATES

Commodity Charges 2026 2027 2028 2029 2030 Per A. Single Family $6.57 $6.78 $7.01 $7.24 $7.48 BU

B. Commercial/Multi-Family/Other $6.57 $6.78 $7.01 $7.24 $7.48 BU C. Landscape/Schools/etc. $6.57 $6.78 $7.01 $7.24 $7.48 BU D. Lift Charge $0.19 $0.19 $0.20 $0.21 $0.22 BU/Lift
E. Well Water $1.59 $1.65 $1.71 $1.77 $1.83 BU
F. Recycled Water $3.76 $3.89 $4.02 $4.16 $4.31 BU

Notes:

1. Proposed water rates are effective January 1st of each year. The commodity unit charge is based on one hundred cubic feet (HCF), also referred to as one “Billing Unit (BU)”, of metered water use — equivalent to approximately 748 gallons.

2. The 2026 Commodity Charges include the anticipated cost increase from Calleguas, which will be passed through to customers in accordance with Government Code Section 53756.

3. Commodity charges for 2027–2030 do not include potential future cost increases from Calleguas. Commodity charges will be updated annually on January 1 to reflect actual cost increases.

Service Charges (Bi-monthly) 2026
2027 2028 2029 2030
A. Residential
Single Family $76.22 $78.89 $81.65 $84.51 $87.46

Multi Family

$50.81 $52.59 $54.43 $56.34 $58.31
B. Commercial/ Recycled Water
3/4-inch (meter) $76.22 $78.89 $81.65 $84.51 $87.46
1-inch $127.03 $131.48 $136.08 $140.84 $145.77

1.5-inch $254.07 $262.96 $272.16 $281.69 $291.55
2-inch $406.50 $420.73 $435.46 $450.70 $466.47
3-inch $889.23 $920.35 $952.56 $985.90 $1,020.41
4-inch $1,600.61 $1,656.63 $1,714.62 $1,774.63 $1,836.74

6-inch
8-inch

$3,429.89
$4,065.05
$3,549.93
$4,207.33
$3,674.18
$4,354.58
$3,802.77
$4,506.99
$3,935.87
$4,664.74
C. Auto Fire Sprinkler
2-inch or less (meter) $7.51 $7.78 $8.05 $8.33 $8.62
3-inch $21.83 $22.59 $23.38 $24.20 $25.05
4-inch $46.52 $48.15 $49.83 $51.58 $53.38
6-inch $135.13 $139.86 $144.75 $149.82 $155.06
8-inch $287.96 $298.04 $308.47 $319.27 $330.44
10-inch $517.85 $535.98 $554.73 $574.15 $594.25
14 RES. NO. WWD-300

4. Pass- through rate increases do not apply to well water, recycled water, or lift charges.

Capital Improvement Charges
(Capacity Fees) Cost Per
A. Residential
Single family unit $5,819 dwelling unit
Multi family unit $3,879 dwelling unit

B. Commercial, Industrial, Other
¾-inch (meter) $5,819 unit
1-inch $9,698 unit
1-1/2-inch $19,396 unit
2-inch $31,034 unit
3-inch $67,887 unit
4-inch $122,196 unit
6-inch $261,849 unit
8-inch $310,339 unit

15 Water Rate Study and
Capacity Fee Update
Calendar Years 2026- 2030
October 24, 2025
Ventura County Waterworks District No. 8
16 Bartle Wells Associates
2625 Alcatraz Ave, #602
Berkeley, CA 94705
Tel: 510.653.3399
www.bartlewells.com

CY 2026-2030 Water Rate Study and
Capacity Fee Update
October 24, 2025
City of Simi Valley
Prepared by:

17 October 24, 2025

City of Simi Valley
Ventura County Waterworks District No. 8
2929 Tapo Canyon Road
Simi Valley, CA 93063

Attn: Michel Kadah, Principal Engineer

Re: Calendar Years (CY) 2026-2030 Water Rate Study and Capacity Fee Update

Bartle Wells Associates (BWA) is pleased to submit the attached CY 2026-2030 Water Rate Study and Capacity Fee Update to Ventura County Waterworks District No. 8 (District) . The study develops long- term financial projections for the District’s waterworks utility and recommends rates and fees designed to fund the District’s projected costs of providing water service.

The District has historically been proactive in raising rates to keep revenues in line with the costs of providing water service, which has allowed the District to address its operating and capital funding needs while maintaining the financial health of its water enterprise. The report recommends a series of overall

3.5% annual water rate increases in each of the next five years to provide adequate funding for capital improvement needs and keep up with operating cost inflation. The proposed rates also include some minor adjustments to the water rate structure designed to keep the District’s rates aligned with the costs of providing service and pursuant to industry standards.

We enjoyed working with the District on this assignment and appreciate the ongoing collaboration, input and assistance received from District staff. Please contact us anytime if you have questions about this report or other issues related to utility rates and finance.

BARTLE WELLS ASSOCIATES

2625 Alcatraz Ave, #602
Berkeley, CA 94705
Tel 510 653 3399
www.bartlewells.com
18 TABLE OF CONTENTS
1 Background, Objectives and Proposed Rates .......................................................................... 1

1.1 Background… .......................................................................................................................... 1

1.2 Water System Overview ......................................................................................................... 1

1.3 Capital Improvement Funding Needs..................................................................................... 2

1.4 Policy Goals & Objectives ....................................................................................................... 2

1.5 Proposed Water Rates............................................................................................................ 3 2 Legal Requirements and Rate Methodology ........................................................................... 5

2.1 Constitutional Rate Requirements ......................................................................................... 5

2.1.1 Article 13D, Section 6 ............................................................................................................. 5

2.2 Rate-Setting Methodology ..................................................................................................... 6

2.3 Current and Historical Water Rates ....................................................................................... 6

2.4 Water Accounts and Use ........................................................................................................ 7

2.5 Projected Water Purchases .................................................................................................... 9

2.6 Revenue Under Existing Rates ................................................................................................ 9

2.7 Financial Challenges / Key Drivers of Rate Increases ........................................................... 10

2.7.1 Capital Improvements and Replacement of Aging Infrastructure ....................................... 10

2.7.2 Ongoing Operating Cost Inflation ......................................................................................... 13

2.8 Water Enterprise Financial Projections ................................................................................ 13

2.9 Water Rate Revenue Projections ......................................................................................... 16 3 Cost of Service Analysis ........................................................................................................ 17

3.1 Functional Cost Components ............................................................................................... 17 4 Rate Derivation .................................................................................................................... 21

4.1 Rate Design… ........................................................................................................................ 21

4.2 Proposed Rates ..................................................................................................................... 25

4.3 Bill Impacts…......................................................................................................................... 27

4.4 Regional Water Rate Survey ................................................................................................. 29 5 Capacity Fee Update ............................................................................................................ 30

5.1 B ackground and Objectives .................................................................................................. 30

5.2 Government Code ................................................................................................................ 30

5.3 Capacity Fee Derivation ........................................................................................................ 30

5.3.1 Methodology.. ............................................................................... ……………………………………30 Buy-In Approach…… ....................................................................................................................... 30 Asset Valuation Method ................................................................................................................ 31 Water System Capacity .................................................................................................................. 31 Water System Valuation and Nexus .............................................................................................. 31

5.4 Fee Survey….. ....................................................................................................................... 35

5.5 Recommended Annual Adjustments.................................................................................... 35 6 Conclusion and Recommendations ....................................................................................... 36

6.1 Conclusion….. ....................................................................................................................... 36

6.2 Recommendations ............................................................................................................... 36 APPENDIX A — Pass-Through Rate Calculation ........................................................................... 37 19 APPENDIX B — 10-Year Capital Improvement Program ............................................................... 38 APPENDIX B — 10-Year Capital Improvement Program (continued) ............................................ 39 APPENDIX C — Detailed Asset List .............................................................................................. 40

LIST OF TABLES
Table 1 – Proposed Water Rates ............................................................................................................ 4 Table 2 – Historical and Current Water Rates ....................................................................................... 7 Table 3 – Water Accounts and Use ........................................................................................................ 8 Table 4 – Projected Water Purchases .................................................................................................... 9 Table 5 – Fiscal Year Revenue Estimate ............................................................................................... 10 Table 6 – 10-Year Capital Improvement Program ............................................................................... 12 Table 7 – 10-Year Cash Flow Projections ............................................................................................. 15 Table 8 – Proposed Rate Revenue Increases ....................................................................................... 16 Table 9 – FY 2024/25 Fire Allocation ................................................................................................... 18 Table 10 – Cost Allocation .................................................................................................................... 19 Table 11 – Cost Allocation Revenue Requirement .............................................................................. 20 Table 12 – CY 2025 Rate Derivation ..................................................................................................... 21 Table 13 – Proposed 2025 Rate Calculation by Meter Size ................................................................. 22 Table 14 – Summary of Reallocated 2025 Rates ................................................................................. 23 Table 15 – Reallocated Revenue Allocation by Customer Class .......................................................... 24 Table 16 – Proposed Water Rates ........................................................................................................ 26 Table 17 – Sample Residential Bimonthly Bill Impacts ........................................................................ 27 Table 18 – Projected Customer Base ................................................................................................... 31 Table 19 – Asset Valuation ................................................................................................................... 33 Table 20 – Proposed Water Capacity Fees .......................................................................................... 34

LIST OF FIGURES
Figure 1 – 10-Year Capital Improvement Program .............................................................................. 13 Figure 2 – Water Utility Projected Revenues & Expenses ................................................................... 16 F
igure 3 – 2026 Bimonthly Bill Impacts for Single Family Customers .................................................. 28 Figure 4 – 2026 Bimonthly Bill Impacts for Multi Family Customers ................................................... 28 Figure 5 – Single Family Monthly Water Rate Survey .......................................................................... 29 Figure 6 – Single Family Capacity Fee Survey ...................................................................................... 35

20 BARTLE WELLS ASSOCIATES 1
City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update 1 BACKGROUND, OBJECTIVES AND PROPOSED RATES

1.1 Background
The City of Simi Valley (City) is served by two water purveyors, Ventura County Waterworks District No. 8 (District) and the Golden State Water Company (GSWC). The District currently serves approximately 68 percent of the developed portion of the City as well as some unincorporated areas of Ventura County adjacent to the City. GSWC, a private water company, serves the remaining 32 percent of the City. The District service area covers approximately 45 square miles and serves a population of 86,737 residents.

Established to provide reliable and efficient water services, the District is a self-supporting enterprise, with its operations funded primarily through water rates charged to its residential, commercial, and institutional customers.

The District's mission is to supply safe, clean, and reliable water while managing its resources and infrastructure sustainably. The Board of Directors of the District serves as the governing body and has responsibility for the District’s operation and financial management. The District is responsible for the operation and maintenance of its water systems, including wells, reservoirs, pump stations, pipelines, and treatment facilities, ensuring consistent service to its customers in accordance with applicable state and local laws.

The District has provided prudent financial stewardship via adoption of gradual annual water rate increases. These increases have put the water enterprise on a strong financial footing, helped keep rates aligned with the costs of providing service and supported a balanced increase in funding for necessary maintenance, rehabilitation, and replacement of aging water system infrastructure.

The District last conducted a water rate study in 2019 leading to an adoption of 5 years of 3. 5% average annual water rate increases effective January 1, 2021, through December 31, 2025.

1.2 Water System Overview
The District delivers approximately 7,500 million gallons of water (23,000 acre feet) annually to more than 26,000 service connections. The current water distribution system delivers water via 2,800 fire hydrants, 22 pump stations, 43 water storage reservoirs, and approximately 357 miles of distribution pipeline. The District also owns two wells in the Gillibrand Groundwater Basin located north of Simi Valley .

Groundwater from this basin is pumped to the Tapo Canyon Water Treatment Plant for treatment and disinfection, before delivery to the distribution system.

The main source of water for the District is from the Calleguas Municipal Water District (Calleguas), in which District #8 has an agreement to purchase water as a member purveyor . A secondary, local, water supply is provided by the Tapo Canyon Water Treatment Plant, which has the capacity to produce up to

1.0 million gallons per day (MGD) from local groundwater.

21 BARTLE WELLS ASSOCIATES 2
City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update Calleguas receives its water through Metropolitan Water District of Southern California (MWD), who serves as Southern California’s regional wholesaler of imported water. Calleguas operates as a link in this water supply chain, importing 100% of its supply from MWD and then distributing it to its 19 member purveyors throughout southeastern Ventura County. When MWD increases its rates, Calleguas must also raise rates to account for the rising costs of purchasing water from MWD, which cost comprises roughly 74% of Calleguas's water rate. This results in the District also needing to pass through these increases annually in the cost of water purchases to its customers.

1.3 Capital Improvement Funding Needs
While the District has completed a significant amount of capital improvements over the past decade , in recent years some projects have been temporarily delayed due to the recent COVID crisis as well as other factors including staff shortages. Deferring these costs enabled the District to mitigate recent construction cost increases, as well as maintain a strong financial footing . However, the District has chosen to move forward with its much-needed capital program at this time and has several large projects currently in design which will soon require funding.

Many of the District’s water pipelines and facilities are aging and will need to be rehabilitated or replaced over the next five years as they reach the end of their useful lives. The water enterprise is facing substantial capital improvement funding for those projects in upcoming years to meet this need . The District currently anticipates funding of approximately $51.8 million in water system capital improvements over the next 5 years. The se improvements are needed to address existing deficiencies, rehab ilitation and/or replacement of aging infrastructure that have reached the end of its useful life, and to support safe and reliable service.

Water capital improvements primarily consist of rehabilitation and replacement of aging water pipelines and water storage tanks but also include pump station improvements , annual routine repair and replacement programs, and ongoing capital improvements to the overall water system.

1.4 Policy Goals & Objectives
Key policy goals and objectives of the water rate study include:

1. Develop water rates that:
a. recover the District’s costs of providing water service b. are fair and equitable to all customers
c. are easy to understand and implement
d. comply with the legal requirements of Proposition 218 and other California law and regulations e. provide adequate funding for capital improvement needs including near-term funding priorities and long-term rehabilitation and replacement of aging infrastructure

2. Recommend rates that maintain long-term financial sustainability of the water utility and put the water enterprises on course for balanced budgets.

3. Aim for steady, gradual annual rate increases to help minimize the annual impact on customers and mitigate the potential for larger, periodic rate spikes. 22 BARTLE WELLS ASSOCIATES 3
City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update

4. Maintain a prudent level of fund reserves in case of emergencies or catastrophic events such as prolonged economic downturns, earthquakes, or fires.

1.5 Proposed Water Rates
Table 1 shows the schedule of proposed water rates. Proposed rates account for both overall rate increases as well as some minor rate structure adjustments and decreases to keep rates aligned with the cost of providing service per industry standards. As proposed, water rate increases will become effective on January 1st at the beginning of each of the next five calendar years, starting January 1, 2026. It should be noted that there will be an adjustment in the first year resulting in an initial decrease of 2.33% in the single family rate and to the auto fire sprinkler (2” or less up to 4” Meter) fixed service charges in the 2026 calendar year, due to the structure realignment of rates mentioned earlier for the cost of service.

The proposed commodity rates incorporate the anticipated 2026 pass-through rate from Calleguas.

Because future cost increases from Calleguas are not yet known, the proposed rates for 2027–2030 reflect no additional increases beyond 2026 costs. Any future Calleguas cost adjustments will be passed through to customers in accordance with Government Code Section 53756, updated annually on January 1 of each year.
23 BARTLE WELLS ASSOCIATES 4
City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update Table 1 – Proposed Water Rates
Current
Water Jan-1 Jan-1 Jan-1 Jan-1 Jan-1
Rates 2026 2027 2028 2029 2030
Bimonthly Service Charges
Residential
Single Family $78.04 $76.22 $78.89 $81.65 $84.51 $87.46 Mult
i Family 48.29 50.81 52.59 54.43 56.34 58.31 Commercial/Recycled Water

0.75'' 78.04 76.22 78.89 81.65 84.51 87.46 1'' 125.94 127.03 131.48 136.08 140.84 145.77

1.5'' 245.68 254.07 262.96 272.16 281.69 291.55 2'' 389.37 406.50 420.73 435.46 450.70 466.47 3'' 844.37 889.23 920.35 952.56 985.90 1,020.41 4'' 1,514.90 1,600.61 1,656.63 1,714.62 1,774.63 1,836.74 6'' 3,358.86 3,429.89 3,549.93 3,674.18 3,802.77 3,935.87 8'' 3,358.86 4,065.05 4,207.33 4,354.58 4,506.99 4,664.74 Auto Fire Sprinkler
2'' or less 13.19 7.51 7.78 8.05 8.33 8.62 3'' 26.47 21.83 22.59 23.38 24.20 25.05 4'' 49.38 46.52 48.15 49.83 51.58 53.38 6'' 131.66 135.13 139.86 144.75 149.82 155.06 8'' 273.55 287.96 298.04 308.47 319.27 330.44 10'' 486.98 517.85 535.98 554.73 574.15 594.25 Commodity Charges (per hundred cubic feet) 1
Single Family $5.77 $6.57 $6.78 $7.01 $7.24 $7.48
Commercial/Multi Family/Other 5.52 6.57 6. 78 7.01 7.24 7.48 Landscape/Schools/etc. 6.30 6.57 6.78 7.01 7.24 7.48 Lift Charge (per ccf/lift) 0.17 0.19 0.19 0.20 0.21 0.22 Well Water 1.54 1.59 1.65 1.71 1.77 1.83 Recycled Water 3.58 3.76 3.89 4.02 4.16 4.31 Proposed Rates Effective:
1 The commodity charges include the anticipated 2026 cost increase from Calleguas. Charges for 2027–2030 do not include potential future cost increases from Calleguas beyond 2026, which will be passed through to customers in accordance with Government Code Section 53756. Commodity Charges will be updated annually on January 1.
24 BARTLE WELLS ASSOCIATES 5
City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update 2 LEGAL REQUIREMENTS AND RATE METHODOLOGY

2.1 Constitutional Rate Requirements
The California Constitution includes two key articles that directly govern or impact the District’s water rates: Article 10 and Article 13D. The rates developed in this study were designed to comply with both constitutional mandates as well as various provisions of California law that support and add further guidance for implementing these constitutional requirements. In accordance with the constitutional provisions, the proposed rates are designed to a) recover the District’s cost of providing water service, b) equitably recover revenues in proportion to the cost for serving each customer, and c) promote conservation and discourage waste.

2.1.1 Article 13D, Section 6
Proposition 218 was adopted by California voters in 1996 and added Articles 13C and 13D to the California Constitution. Article 13D, Section 6 governs property-related charges, which the California Supreme Court subsequently ruled includes ongoing utility service charges such as water, sewer , and garbage rates.

Article 13D, Section 6 establishes a) procedural requirements for imposing or increasing property-related charges, and b) substantive requirements for those charges. Article 13D also requires voter approval for new or increased property- related charges but exempts rate increases for water, sewer , and garbage services from requiring voter approval as these rates support essential services.

The substantive requirements of Article 13D, Section 6 require the District’s water rates to meet the following conditions:
1) Revenues derived from the fee or charge shall not exceed the funds required to provide the property-related service.
2) Revenues derived from the fee or charge shall not be used for any purpose other than that for which the fee or charge was imposed.
3) The amount of a fee or charge imposed upon any parcel or person as an incident of property ownership shall not exceed the proportional cost of the service attributable to the parcel. 4) No fee or charge may be imposed for a service unless that service is actually used by, or immediately available to, the owner of the property in question. 5) No fee or charge may be imposed for general governmental services, such as police or fire services, where the service is available to the public at large in substantially the same manner as it is to property owners.

A few court decisions over the past 20 years have added some legal clarification regarding these substantive rate requirements. The water rates derived in this report are based on cost -of-service methodologies that are designed to equitably recover costs from water customers and comply with all legal requirements.
25 BARTLE WELLS ASSOCIATES 6
City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update

2.2 Rate-Setting Methodology
The rates developed in this report use a cost-of-service methodology to establish an equitable system of fixed and variable service charges , designed to recover the costs of providing service as recommended in the American Water Works Association (AWWA), M1 Principles of Water Rates, Fees and Charges.

2.3 Current and Historical Water Rates
The District has provided good financial stewardship by gradually raising water rates to keep pace with escalating costs of providing water service. Table 2 shows a recent history of the District’s water rates.

The last water rate study was conducted by the District in 2019. The 2019 water rate study led to the adoption of 5 years of rate increases that averaged 3.5% per year from January 1, 2021 to January 1, 2025.

Future rates from this study will continue to reflect 3.5% annual rate increases effective on January 1 of each year from January 1, 2026, through January 1, 2030 in line to keep pace with the rising cost of services.

The District’s water rates include two components:
• A fixed Bimonthly Service Charge that varies based on customer class. These fixed charges are levied independent of usage and recover a portion of the District ’s fixed costs for providing service. The District bills non-residential customers by meter size. • Volumetric Bimonthly Water Usage Rates (Commodity Charges) vary based on customer class and are billed based on metered water use. The variable volumetric component is calculated based on the number of billing units of water delivered to a property, multiplied by rates that vary by customer class. One billing unit is equal to one hundred cubic feet (CCF) 1, also referred to as one “billing unit” or B.U., which equals 748 gallons of water.
o The District’s commodity charge accounts for the annual pass-through rate from Calleguas to reflect the wholesale water service the District receives from Calleguas.

The pass-through rates are determined and added to the District's commodity usage rate each year to incorporate Calleguas’s rate increases. A detailed description of the calculation can be found in Appendix A.

1 CCF stands for hundred cubic feet, a common measure of water volume in North America. One hundred cubic feet equals 748 gallons of water.
26 BARTLE WELLS ASSOCIATES 7
City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update Table 2 – Historical and Current Water Rates

2.4 Water Accounts and Use
Table 3 shows current and projected customer counts and water use by customer class . The District’s 2020 Urban Water Management Plan (UWMP) projected population growth of 0.5% per year based on the Southern California Association of Governments (SCAG) projections. The annual projected customer growth rate used in this study is based on the City’s 2021-2029 Housing Element Study which projected a growth rate of 0.6% adopted on February 27, 2023. However, t his study assumes approximately half of the Housing Study's annual projected growth rate (0.3%) to be slightly conservative for financial planning purposes
Current
2021 2022 2023 2024 2025
Bimonthly Service Charges
Residential
Single Family $68.00 $70.38 $72.85 $75.40 $78.04
Multi Family 42.06 43.54 45.07 46.65 48.29 Commercial/Recycled Water

0.75'' 68.00 70.38 72.85 75.40 78.04 1'' 109.73 113.58 117.56 121.68 125.94

1.5'' 214.08 221.58 229.34 237.37 245.68 2'' 339.39 351.17 363.47 376.20 389.37 3'' 735.80 761.56 788.22 815.81 844.37 4'' 1,320.13 1,366.34 1,414.17 1,463.67 1,514.90 6'' 2,927.03 3,029.48 3,135.52 3,245.27 3,358.86 Auto Fire Sprinkler
2'' or less 11.47 11.88 12.30 12.74 13.19 3'' 23.05 23.86 24.70 25.57 26.47 4'' 43.02 44.53 46.09 47.71 49.38 6'' 114.71 118.73 122.89 127.20 131.66 8'' 238.36 246.71 255.35 264.29 273.55 10'' 424.35 439.21 454.59 470.51 486.98 Commodity Charges (per ccf)
Residential $4.15 $4.44 $4.78 $5.18 $5.77
Commercial/Multi Family/Other 3.94 4.22 4.55 4.94 5.52 Landscape/Schools/etc. 4.62 4.92 5.28 5.69 6.30 Lift Charge (per ccf/lift) 0.13 0.14 0.15 0.16 0.17 Well Water 1.54 1.54 1.54 1.54 1.54 Recycled Water 3.10 3.21 3.33 3.45 3.58 27 BARTLE WELLS ASSOCIATES 8 City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update Table 3 – Water Accounts and Use
Annual Projected Growth Rate 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% FY 2023/24 Est. FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Fixed (Number of Customers) 1
Residential
Single Family 22,715 22,783 22,852 22,920 22,989 23,058 23,127 Multi Family2 6,840 6,860 6,881 6,901 6,922 6,943 6,964 Non-Residential
3/4'' 318 319 320 321 322 323 324 1'' 380 381 382 384 385 386 387

1.5'' 306 307 308 309 310 311 312 2'' 547 549 550 552 554 555 557 3'' 66 66 67 67 67 67 67 4'' 26 26 26 26 26 26 26 6'' 7 7 7 7 7 7 7 8'' 2 2 2 2 2 2 2 Auto Fire Sprinkler
2'' or less 69 69 69 70 70 70 70 3'' 5 5 5 5 5 5 5 4'' 114 114 115 115 115 116 116 6'' 112 112 113 113 113 114 114 8'' 112 112 113 113 113 114 114 10'' 5 5 5 5 5 5 5 FY 2023/24 FY 2024/256
FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30
Variable (Number of HCF) 3
Residential 3,456,058 3,809,311 3,820,738 3,832,201 3,843,697 3,855,228 3,866,794 Comm./Multi Family/Ag./Ind. 851,342 938,360 941,175 943,998 946,830 949,671 952,520 Landscape/Schools/Pools 1,213,655 1,337,706 1,341,719 1,345,744 1,349,781 1,353,831 1,357,892 Lift Charge (per ccf/lift)4 4,080,139 4,092,379 4,104,657 4,116,971 4,129,321 4,141,709 4,154,135 Well Water5 1,447 1,451 1,456 1,460 1,464 1,469 1,473 Recycled Water5 26,954 27,035 27,116 27,197 27,279 27,361 27,443 1 Source: "UB Accts by Type 2024."
2 Source: "MULTI FAMILY ACCTS CURRENT 09-24-24."
3 Source: "Water Usage & Charge Summary By FY2022-2024" and "Water Usage." 4 Source: "Copy of LIFT CHARGES BY FISCAL YEAR."
5 Source: "Copy of WELL RECYCLED WATER CONSUMPTION BY FY." 6 Usage from residential, commercial and landscape users are projected to increase by 10.22% due to recovery from drought, while other classes are projected to increase by the growth rate.
28 BARTLE WELLS ASSOCIATES 9
City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update

2.5 Projected Water Purchases
The following table displays the projected water demand, wholesale water service rates, and total water purchase costs. The projected water demand accounts for the District’s projected growth and a projected system water loss of 8%.

Table 4 – Projected Water Purchases

2.6 Revenue Under Existing Rates
Table 5 calculates the annual revenue under existing rates for the prior and current fiscal years. This table was developed to check and validate the revenue assumptions used in the rate study.

FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Calleguas Water Purchases
Potable Water Demand (ccf) 5,521,055 6,085,376 6,103,632 6,121,943 6,140,309 6,158,730 6,177,206 Potable Water Demand (af) 12,675 13,970 14,012 14,054 14,096 14,138 14,181 Wholesale Customer Demand (af) 753 753 753 753 753 753 753 Total Water Demand (af) 13,427 14,723 14,765 14,807 14,849 14,891 14,934 System Water Loss 7.0% 8.0% 8.0% 8.0% 8.0% 8.0% 8.0%
Required Potable Water Supply (af) 14,438 16,003 16,049 16,094 16,140 16,186 16,232 Less Available Groundwater (af) 3 3 3 3 3 3 3 Total Imported Water from Calleguas 14,435 16,000 16,046 16,091 16,137 16,183 16,229 Calleguas Fixed Charges
Combined MWD & CMWD Capacity Charge
July-December $727,143 $772,899 $826,810 $819,225 $857,152 $864,737 $864,737 January-June $772,899 $826,810 $819,225 $857,152 $864,737 $864,737 $864,737 Total Combined MWD & CMWD Capacity Charge 1 $1,500,042 $1,599,709 $1,646,035 $1,676,376 $1,721,889 $1,729,474 $1,729,474 MWD RTS Charge
July-December $807,935 $893,922 $977,852 $1,040,434 $1,079,548 $1,181,245 $1,298,587 January-June $893,922 $977,852 $1,040,434 $1,079,548 $1,181,245 $1,298,587 $1,329,878 Total MWD RTS Charge 1 $1,701,857 $1,871,773 $2,018,285 $2,119,982 $2,260,793 $2,479,831 $2,628,465 Calleguas Variable Charge
July-December Tier 1 Rate ($/af) 1 $1,632 $1,730 $1,895 $2,058 $2,264 $2,492 $2,621 July-December Purchases (af) 8,144 9,027 9,053 9,078 9,104 9,130 9,156 July-December Tier 1 Charges $13,290,675 $15,616,727 $17,154,888 $18,683,532 $20,612,238 $22,752,655 $23,998,637 January-June Tier 1 Rate ($/af) 1 $1,730 $1,895 $2,058 $2,264 $2,492 $2,621 $2,751 January-June Purchases (af) 6,291 6,973 6,993 7,013 7,033 7,053 7,073 January-June Tier 1 Charges $10,882,987 $13,213,816 $14,391,272 $15,876,880 $17,525,560 $18,485,288 $19,457,421 Total Tier 1 Charges $24,173,662 $28,830,543 $31,546,160 $34,560,412 $38,137,799 $41,237,943 $43,456,058 Total Projected Water Purchase Costs $27,375,561 $32,302,025 $35,210,480 $38,356,770 $42,120,480 $45,447,248 $47,813,997 Fiscal Year Increase % 18.00% 9.00% 8.94% 9.81% 7.90% 5.21% 1 Using projected cost % increases from "LRFP 24-25 5 yr projection." 29 BARTLE WELLS ASSOCIATES 10
City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update Table 5 – Fiscal Year Revenue Estimate

2.7 Financial Challenges / Key Drivers of Rate Increases Going forward, the District’s water enterprise is facing several continuing financial challenges that will require the District to raise rates gradually over the next five years. Key challenges and drivers of future rate increases are summarized as follows.

2.7.1 Capital Improvements and Replacement of Aging Infrastructure Many of the District’s water collection system pipelines and pump stations are aging and approaching the end of their useful lives. Some pipelines have significantly exceeded their estimated useful lives and need replacement in the upcoming 5-10 years. In addition, many of the District’s water tanks need to undergo rehabilitation and replacement as a result of age-related issues and to address seismic deficiencies. To address high-priority water system infrastructure needs, the District anticipates funding approximately $51.8 million of capital improvement projects over the next five years to address current deficiencies , aging infrastructure replacement, and support safe and reliable service as shown on the following table FY 2023/24
Revenue
Estimated FY
2024/25 Revenue
Fixed
Single Family $10,102,642 $10,487,688
Multi Family 1,881,999 1,953,914
Non-Residential
3/4'' 141,317 146,703
1'' 272,835 283,238

1.5'' 428,754 445,096
2'' 1,214,181 1,260,466
3'' 318,737 330,884
4'' 223,769 232,297
6'' 128,630 133,532
8'' 36,751 38,152
Auto Fire Sprinkler 310,523 322,371 Total Fixed Revenue: 15,060,137 15,634,341 Variable
Residential $17,072,927 $20,631,226
Comm./Multi Family/Ag./Ind. 4,006,415 4,853,197 Landscape/Schools/Pools 6,607,138 7,937,946 Lift Charge (per ccf/lift) 612,189 612,190 Well Water 2,228 2,235
Recycled Water 90,422 90,423
Total Variable Revenue: 28,391,319 34,127,217 Total Revenue: 43,451,456 49,761,558
30 BARTLE WELLS ASSOCIATES 11
City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update and figure . Annual capital spending was calculated by taking a ten -year average of the District’s encumbrance and anticipated ten-year capital spending after removing the District’s capital spending in FY 2024/25. Beginning in FY 2025/26, a 4.0% annual cost escalation will be applied to projected capital spending. A detailed capital improvement program can be found in Appendix B. 31 BARTLE WELLS ASSOCIATES 12 City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update

Table 6 – 10-Year Capital Improvement Program
Capital Improvement Plan FY 2024/25 FY 2025/26 FY 2026/ 27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 FY 2033/34 FY 2034/35 Capital Projects (10-Year Average) $5,359,183 $9,195,088 $9,195,088 $9,195,088 $9,195,088 $9,195,088 $9,195,088 $9,195,088 $9,195,088 $9,195,088 $9,195,088 Total 5,359,183 9,195,088 9,195,088 9,195,088 9,195,088 9,195,088 9,195,088 9,195,088 9,195,088 9,195,088 9,195,088 CIP (Inflated Dollars) 5,359,183 9,562,891 9,945,407 10,343,223 10,756,952 11,187,230 11,634,719 12,100,108 12,584,112 13,087,477 13,610,976 Total 5,359,183 9,562,891 9,945,407 10,343,223 10,756,952 11,187,230 11,634,719 12,100,108 12,584,112 13,087,477 13,610,976 5-Year Total: 51,795,703
Cost Escalation 1.0000 1.0400 1.0816 1.1249 1.1699 1.2167 1.2653 1.3159 1.3686 1.4233 1.4802 32 BARTLE WELLS ASSOCIATES 13
City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update Figure 1 – 10-Year Capital Improvement Program

2.7.2 Ongoing Operating Cost Inflation
The District faces annual cost inflation due to annual increases in a range of expenses including water purchases, utilities, engineering, construction and materials, wages, and administration, etc. Rate increases are therefore needed for capital improvements to keep revenues aligned with cost inflation and prevent rates from falling behind the cost of providing service. Water cost inflation has historically been higher than the Consumer Price Index (CPI) for consumer goods and services. In very recent years, inflation has reached forty-year highs with the CPI and Engineering News Record Construction Cost Index (ENR CCI) exceeding 7% in 2022. However, since hitting a peak in 2022, inflation for this category has trended downwards back toward historical norms. For financial planning purposes, the rate study accounts for

3.5% annual cost escalation for operating and maintenance expenses and 4 .0% annual capital cost escalation, which is in line with the average annual CIP and ENR Construction Cost Index increases over the past 15 years.

2.8 Water Enterprise Financial Projections
Bartle Wells Associates developed 10 -year water enterprise cash flow projections to identify future funding needs and evaluate water rate increases. Table 7 on the following page shows the 10-year water enterprise cash flow projections. The projections incorporate the latest information available as well as several reasonable and slightly conservative assumptions. Key assumptions include:
 Operating and maintenance costs are based on the 2024/25 budget and escalate at the annual rate of

3.5% to account for future cost inflation, in line with historical cost escalation. $5.4
$9.6 $9.9 $10.3 $10.8 $11.2 $11.6 $12.1 $12.6 $13.1 $13.6 $0
$4
$8
$12
$16
FY
2024/25
FY
2025/26
FY
2026/27
FY
2027/28
FY
2028/29
FY
2029/30
FY
2030/31
FY
2031/32
FY
2032/33
FY
2033/34
FY
2034/35
10-Year Waterworks Capital Improvements ($ millions) Future $; includes annual construction cost inflation.
33 BARTLE WELLS ASSOCIATES 14
City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update  Growth from new development and/or redevelopment is conservatively projected at 0.30% for financial planning purposes, and this factor has also been applied towards determining needed resources related to the new rates.
 Billed water use for residential, commercial, and industrial users is projected to increase to 16,000 acre-feet2 in FY 2024/25 to reflect a bounce back from lower water usage by customers from recent high rain years. Usage in FY 2022/23 and 2023/24 was lower than normal years due to heavy rain in the region. All other billed water use in following years and for other categories are projected to increase by the growth rate.
 Capital improvement costs are based on the average of the District’s latest 10-Year Capital Improvement Program , with capital costs in subsequent years projected to range between approximately $9.5 to $11 million per year with 4.0% annual cost escalation.  For financial planning purposes, the financial projections assume a minimum fund reserve target equal to 25% of annual operating and maintenance costs, the average of the 5 -year capital improvement plan, and 5% of commodity charge revenue. The reserves set aside to account for the commodity charge revenue acts similar to that of an emergency fund and are intended to prepare the District for events such as a severe economic downturn, earthquakes, o r a drought . This reserve target is consistent with industry standards. Maintaining a prudent minimal level of fund reserves provides a financial cushion for dealing with unanticipated expenses, revenue shortfalls, as well as non - catastrophic and catastrophic emergency capital repairs. The fund reserve target will e scalate over time as the District’s expenses and infrastructure gradually increase.

2 One acre foot is equivalent to 435.6 hundred cubic feet. 34 BARTLE WELLS ASSOCIATES 15
City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update Table 7 – 10-Year Cash Flow Projections
Current
FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 FY 2033/34 FY 2034/35 Beginning Unrestricted Fund Balance $38,298,029 $38,599,348 $34,959,862 $32,420,015 $31,032,382 $30,849,533 $31,909,329 $33,345,875 $33,927,824 $33,594,473 $32,282,059 % Rate Revenue Increase 1,2 3.50% 3.50% 3.50% 3.50% 3.50% 0.00% 0.00% 0.00% 0.00% 0.00% Potable Water Usage Growth % 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% Growth - % 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30%

REVENUES
Rate Revenue
FY Water Service Charges 49,761,558 53,181,570 55,261,514 57,367,254 59,553,233 61,822,509 63,224,613 63,414,286 63,604,529 63,795,343 63,986,729 Calleguas Pass-through Revenues - - 3,056,460 6,730,069 9,966,467 12,242,573 14,585,854 17,143,970 19,841,554 22,685,977 25,685,003 Capital Improvement Charges 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 Total Rate Revenues 49,826,558 53,246,570 58,382,974 64,162,323 69,584,700 74,130,082 77,875,467 80,623,257 83,511,083 86,546,320 89,736,732 Non Rate Revenue
Interest on Investments (3%) 1,009,762 1,157,980 1,048,796 972,600 930,971 925,486 957,280 1,000,376 1,017,835 1,007,834 968,462 Sales to Waterworks Dist No 17 1,600,000 1,737,280 1,888,250 2,067,822 2,221,255 2,330,540 2,442,639 2,564,771 2,693,010 2,827,660 2,969,043 Other Revenues 702,028 699,028 699,028 699,028 699,028 699,028 699,028 699,028 699,028 699,028 699,028 Total Non Rate Revenues 3,311,790 3,594,288 3,636,074 3,739,451 3,851,254 3,955,054 4,098,947 4,264,176 4,409,873 4,534,523 4,636,533 Total Revenues 53,138,348 56,840,859 62,019,047 67,901,774 73,435,954 78,085,137 81,974,414 84,887,432 87,920,955 91,080,842 94,373,265

EXPENSES
Operating Expenses
Salaries & Benefits 7,108,803 7,357,611 7,615,127 7,881,657 8,157,515 8,443,028 8,738,534 9,044,383 9,360,936 9,688,569 10,027,669 Maintenance 353,700 366,080 378,892 392,154 405,879 420,085 434,788 450,005 465,755 482,057 498,929 Utilities 1,200,000 1,242,000 1,285,470 1,330,461 1,377,028 1,425,224 1,475,106 1,526,735 1,580,171 1,635,477 1,692,719 Supplies & Services 3,143,833 3,253,867 3,367,753 3,485,624 3,607,621 3,733,887 3,864,573 3,999,834 4,139,828 4,284,722 4,434,687 Water Purchases 32,302,025 35,210,480 38,356,770 42,120,480 45,447,248 47,813,997 50,248,192 52,897,494 55,686,537 58,622,695 61,713,731 Transfers & Reimbursements 2,994,484 3,099,291 3,207,766 3,320,038 3,436,239 3,556,508 3,680,985 3,809,820 3,943,164 4,081,174 4,224,015 Vehicle Replacement 375,000 388,125 401,709 415,769 430,321 445,382 460,971 477,105 493,803 511,087 528,975 Total Operating Expenses 47,477,845 50,917,453 54,613,488 58,946,183 62,861,851 65,838,110 68,903,149 72,205,375 75,670,194 79,305,780 83,120,724 Capital Expenses
Capital Projects 5,359,183 9,562,891 9,945,407 10,343,223 10,756,952 11,187,230 11,634,719 12,100,108 12,584,112 13,087,477 13,610,976 Total Capital Expenses 5,359,183 9,562,891 9,945,407 10,343,223 10,756,952 11,187,230 11,634,719 12,100,108 12,584,112 13,087,477 13,610,976 Total Expenses 52,837,028 60,480,345 64,558,895 69,289,406 73,618,803 77,025,340 80,537,868 84,305,483 88,254,306 92,393,257 96,731,700 Revenues Less Expenses 301,319 (3,639,486) (2,539,848) (1,387,632) (182,849) 1,059,796 1,436,546 581,949 (333,351) (1,312,414) (2,358,434) Fund Reserve Target: 25% O&M + Average of
5-Year CIP + 5% Commodity Charge Revenue 19,878,864 20,798,489 21,784,310 22,931,460 23,976,593 24,754,924 28,889,686 29,715,242 30,581,447 31,490,343 32,444,079 Ending Fund Balance (Revenues Less Expenditures 18,720,484 14,161,374 10,635,704 8,100,922 6,872,940 7,154,405 4,456,189 4,212,582 3,013,026 791,715 (2,520,455) 1 Rates to be effective January 1 st of every year.
2 Future rate increases will be determined during the next water rate study. 5-Year Projection Extended Projection
35 BARTLE WELLS ASSOCIATES 16
City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update The following chart shows a 5-year projection of water enterprise revenues and expenses. The proposed rate increases are designed to put the District on a prudent and responsible long -term path toward supporting balanced budgets while providing adequate funding for operations, maintenance, and ongoing rehabilitation and replacement of aging water system infrastructure to support safe and reliable service.

Figure 2 – Water Utility Projected Revenues & Expenses

2.9 Water Rate Revenue Projections
The cash flow projections indicate the need to raise water rates an average of 3.5% each year for the next 5 years to support the water utility’s projected operating and capital funding, and prudent reserve needs.

Table 8 – Proposed Rate Revenue Increases

The 3.5% water rate increase represents the suggested maximum level of annual rate increases proposed for the next 5 cycles. The proposed rates also reflect some minor modifications due to reallocations to the rate structure designed to keep water rates for all customer classes aligned with the cost of providing proportional service. Due to these rate structure adjustments, the impacts on customers’ monthly water bills in the first year may vary slightly based on customer class reallocation and billed usage. $0
$20
$40
$60
$80
$100
FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 Waterworks Utility Projected Revenues & Expenses ($ millions) Operating Expenses CIP Revenues
CY 2026* CY 2027 CY 2028 CY 2029 CY 2030

3.50% 3.50% 3.50% 3.50% 3.50%
Proposed Water Rate Revenue Increases
* Initial bill impacts will vary based on customer class and usage due to rate structure adjustments to realign the rates with cost of service 36 BARTLE WELLS ASSOCIATES 17
City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update 3 COST OF SERVICE ANALYSIS

3.1 Functional Cost Components
BWA derived updated water rates that account for both a) the overall rate increases identified in the financial projections, and b) proposed rate structure modifications. The proposed rates are designed to equitably apportion and recover costs from the District ’s customer base based on a cost -of-service methodology consistent with the American Water Works Association (AWWA), M 1 Principles of Water Rates, Fees and Charges.

The first step in the cost -of-service analysis is to assign water system costs in each allocation category for revenue recovery via the cost components of readiness -to-serve, base/supply, well water, recycled water, fire protection, and pumping. While there is no single correct approach for cost allocation, BWA’s experience has shown that costs should be allocated within a reasonable range that reflects both a) underlying cost causation, to the extent such causation can reasonably be determined or estimated, and b) the policy preferences of the agency in cases where a range of reasonable approaches can be justified.

This process is intended to proportionately allocate costs to each functional component to determine the revenue requirement for that component. The allocations to each functional component were based on typical industry standards and input from District staff.

The cost components are described as follows:
• Readiness-to-Serve reflects costs associated with administration and serving the District’s customers.
• Base/Supply reflects costs associated with the volume of water provided. • Well Water reflects costs associated with providing well water. • Recycled Water reflects costs associated with providing recycled water. • Fire Protection reflects costs associated with providing fire protection. • Pumping reflects costs associated with the District’s lift stations.

Costs allocated to pumping were determined by estimating the average annual depreciation of a pump. Costs allocated to recycled water are based on the percentage of expenses incurred for recycled water. Water Purchases were allocated 100% to base/supply because it is a supply cost. Costs for the auto fire sprinkler charge were assessed by estimating the cost of fire protection based on the total count of public fire hydrants and its relevant demand factor. Table 9 details the process followed for the fire service allocation. All other costs allocated between readiness-to-serve and base/supply were assigned based on the appropriate allocation criteria, ensuring accurate distribution and alignment with operational requirements.

37 BARTLE WELLS ASSOCIATES 18
City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update Table 9 – FY 2024/25 Fire Allocation

The following tables show a breakdown of the water utility’s expenses, how they are allocated between the cost components, and the revenue requirement for each cost component. The cost allocation uses FY 2024/25 as the sample year for operating expenses and a 10-year average for capital costs.

Fire Line Size Count Demand Factor1
Fire Service
Equivalent
Connections
2025 Bimontly
Meter Charge Total Revenue
Public Fire Hydrants (6") 2,860 111.31 1,910, 095 $133.08 $2,283,684 Auto Fire Sprinkler
2'' or less 69 6.19 2,570 $7.40 $3,073 3'' 5 17.98 541 21.50 647 4'' 114 38.32 26,289 45.81 31,431 6'' 112 111.31 75,025 133.08 89,699 8'' 112 237.21 159,881 283.60 191,152 10'' 5 426.58 12,836 510.01 15,346 277,143 331,348
Total Equivalent Service Connections 2,187,238
Fire Protection Revenue Requirement FY 2024/25 $2,615,032 Fire Protection Equivalent Service Connection $1.20
1 Demand factors based on nominal size of connection raised to the 2.63 power (AWWA M1 Seventh Edition pg. 163). 38 BARTLE WELLS ASSOCIATES 19
City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update Table 10 – Cost Allocation

Meter Charge
Budget Line Items Readiness-to-Serve Base/Supply Well Water Recycled Water Fire Protection Pum ping

CITY OPERATING COSTS
Salaries & Benefits $7,108,803 75% 20% 5%
Ma
intenance 353,700 65% 20% 15%
Utilities 1,200,000 80% 20%
Supplies & Services 3,143,833 36.9% 44% 0.9% 3.2% 15% Water Purchases 32,302,025 100%
Transfers & Reimbursements 2,994,484 90% 10%
Vehicle Replacement 375,000 85% 15%

NON-OPERATING COSTS
Cash-Funded Capital Spending 1
9,195,088 35% 42% 15% 8.2%

SOURCES
Capital Improvement Charges (65,000) 50% 50%
Interest on Investments (3%) (1,009,762) 50% 47% 3% Sa
les to Waterworks Dist No 17 (1,600,000) 100%
Other Revenues (702,028) 50% 50%
Totals: 53,296,143
1 Reflects a 10-year average of capital spending in current dollars.

FY 2024/25
Budget
39 BARTLE WELLS ASSOCIATES 20
City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update Table 11 – Cost Allocation Revenue Requirement
Meter Charge
Budget Line Items
FY 2024/25
Budget Readiness-to-Serve Base/Supply Well Water Recycled Water Fire Protection Pumping

CITY OPERATING COSTS
Salaries & Benefits $7,108,803 5,331,602 1,421,761 355,440 Maintenance 353,700 229,905 70,740 53,055 Utilities 1,200,000 960,000 240,000 Supplies & Services 3,143,833 1,159,617 1,384,352 28,290 100,000 471,575 Water Purchases 32,302,025 32,302,025
Transfers & Reimbursements 2,994,484 2,695,036 299,448 Vehicle Replacement 375,000 318,750 56,250

NON-OPERATING COSTS
Cash-Funded Capital Spending 9,195,088 3,218,281 3,841,959 1,379,263 755,585

SOURCES
Capital Improvement Charges (65,000) (32,500) (32,500) Interest on Investments (3%) (1,009,762) (504,881) (478,868) (26,013) Sales to Waterworks Dist No 17 (1,600,000) (1,600,000) Other Revenues (702,028) (351,014) (351,014)

REALLOCATION
Public Hydrants Reallocation 2,283,684 (2,283,684) Totals: 53,296,143 15,308,479 36,798,454 2,277 100,000 331,348 755,585 Allocation % 28.72% 69.05% 0.0043% 0.19% 0.62% 1.42%
40 BARTLE WELLS ASSOCIATES 21
City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update

4 RATE DERIVATION

4.1 Rate Design
The percentage allocations derived in the previous table were then multiplied by the revenue to be collected from rates for calendar year (CY) 2025 to calculate the revenue requirement for each cost component. The rate for each component was derived by dividing the pertinent revenue requirement by the total units of that component. The rates were determined as follows:
• Monthly Meter Charge: Total Readiness -to-Serve revenue requirement / Total annual meter equivalents (305,900).
• Monthly Auto Fire Sprinkler Meter Charge: Total Private Fire Protection revenue requirement / Total fire service equivalent connections (277,143).
• Treated Water Rate: Total Source of Supply revenue requirement / Total projected annual potable water usage (6,085,376 hcf).
• Well Water Rate: Total Well Water revenue requirement / Total projected annual well water usage (1,451 hcf).
• Recycled Water Rate: Total Recycled Water revenue requirement / Total projected annual recycled water usage (27,035 hcf).
• Lift Charge: Total Pumping revenue requirement / Total projected annual lifted water (4,092,379 hcf).

The following table displays the recalculated 2025 rates.

Table 12 – CY 2025 Rate Derivation

The fixed charge by meter size was determined by multiplying the meter charged derived for a multi - family unit by the meter ratios for each meter size. Table 13 displays the calculated rates by meter size.

Revenue Requirement
$52,285,207
Readiness-
to-Serve
Source
of Supply
Well
Water
Recycled
Water
Private Fire
Protection Pumping
Rate Revenue Requirement $15,018,103 $36,100,451 $2,234 $98,103 $325,063 $741, 253 %
Allocation 28.72% 69.05% 0.0043% 0.19% 0.62% 1.42%
Meter Charge: $49.09
Private Fire Service Unit: 1.17
Treated Water (per ccf): 5.93
Well Water (per ccf): 1.54
Re
cycled Water (per ccf): 3.63
Lift Charge (per ccf/lift): 0.18
41 BARTLE WELLS ASSOCIATES 22
City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update

Table 13 – Proposed 2025 Rate Calculation by Meter Size

The table below shows a summary of the reallocated 2025 rates as compared to the current 2025 rates.

Meter Size Count Meter Ratios
Annual Meter
Ratio Equivalents
2025 Bimontly
Meter Charge Total Revenue
Multi Family (# EDUs) 6,860 1.00 41,161 $49.09 $2,020,792 Single Family 22,783 1.50 205,051 73.64 10,066,949 3/4" 319 1.50 2,868 73.64 140,817 1" 381 2.50 5,719 122.74 280,784

1.5" 307 5.00 9,214 245.47 452,374 2" 549 8.00 26,343 392.76 1,293,307 3" 66 17.50 6,976 859.16 342,471 4" 26 31.50 4,913 1,546.49 241,219 6" 7 67.50 2,730 3,313.90 134,010 8" 2 80.00 924 3,927.58 45,379 305,900 15,018,103
42 BARTLE WELLS ASSOCIATES 23
City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update Table 14 – Summary of Reallocated 2025 Rates

The following table shows the difference in collected revenue between the existing and reallocated revenues to be recovered from each customer class.

Current
CY 2025 Rates
Reallocated
CY 2025 Rates Difference
Bimonthly Service Charges
Residential
Single Family $78.04 $73.64 ($4.40)
Multi Family 48.29 49.09 $0.80 Commercial/Recycled Water

0.75'' 78.04 73.64 ($4.40) 1'' 125.94 122.74 ($3.20)

1.5'' 245.68 245.47 ($0.21) 2'' 389.37 392.76 $3.39 3'' 844.37 859.16 $14.79 4'' 1,514.90 1,546.49 $31.59
6'' 3,358.86 3,313.90 ($44.96) 8''1 3,358.86 3,927.58 $568.72 Auto Fire Sprinkler
2'' or less 13.19 7.26 ($5.93) 3'' 26.47 21.09 ($5.38) 4'' 49.38 44.95 ($4.43) 6'' 131.66 130.56 ($1.10) 8'' 273.55 278.22 $4.67 10'' 486.98 500.34 $13.36 Commodity Charges (per ccf)
Residential $5.77 $5.93 $0.16
Commercial/Multi Family/Other 5.52 5.93 $0.41 Landscape/Schools/etc. 6.30 5.93 ($0.37) Lift Charge (per ccf/lift) 0.17 0.18 $0.01 Well Water 1.54 1.54 $0.00 Recycled Water 3.58 3.63 $0.05 1 The proposed rate for the 8'' meter is newly established, as it was not previously defined for this meter size.
43 BARTLE WELLS ASSOCIATES 24
City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update Table 15 – Reallocated Revenue Allocation by Customer Class

Total Projected
CY 2025 Revenue
Total Reallocated
Revenue % Difference
Fixed Revenue
Residential
Single Family $10,668,133 $10,066,949 -5.64%
Multi Family 1,987,666 2,020,792 1.67% Commercial/Recycled Water

0.75'' 149,227 140,817 -5.64% 1'' 288,111 280,784 -2.54%

1.5'' 452,754 452,374 -0.08% 2'' 1,282,150 1,293,307 0.87% 3'' 336,576 342,471 1.75% 4'' 236,292 241,219 2.09% 6'' 135,829 134,010 -1.34% 8'' 38,808 45,379 16.93% Auto Fire Sprinkler 327,922 325,063 -0.87% Variable Revenue
Residential $21,979,722 $22,598,081 2.81%
Commercial/Multi Family/Other 5,179,746 5,566,659 7.47% Landscape/Schools/etc. 8,427,546 7,935,710 -5.84% Lift Charge (per ccf/lift) 695,705 741,253 6.55% Well Water 2,235 2,234 -0.05% Recycled Water 96,785 98,103 1.36% Total Revenue: 52,285,207 52,285,207
44 BARTLE WELLS ASSOCIATES 25
City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update

4.2 Proposed Rates
Table 16 shows a 5 -year schedule of proposed water rates. Rate increases are scheduled to become effective on January 1 at the beginning of each calendar year starting January 1, 2026. The rates reflect

3.5% overall annual rate increases as well as first year rate structure modifications designed to best align rates with the cost of providing service. T he rates are phased in over 5 years as gradually as possible to minimize the impact on ratepayers and are designed to ultimately support balanced budgets with full implementation.

The proposed commodity rates shown in Table 16 incorporate the anticipated 2026 pass -through rate from Calleguas. Because future cost increases from Calleguas are not yet known, the proposed rates for 2027–2030 reflect no additional increases beyond 2026 costs. Any future Calleguas cost adjustments will be passed through to customers in accordance with Government Code Section 53756, updated annually on January 1 of each year. At least 30 days before the effective date of the pass-through rate adjustment, the District will provide its customers with the expected pass-through adjustment(s), which will generally be calculated as the total projected cost increase divided by the projected annual water consumption.

Appendix A includes the calculation for the pass-through rates.

45 BARTLE WELLS ASSOCIATES 26
City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update

Table 16 – Proposed Water Rates

Current
Water Jan-1 Jan-1 Jan-1 Jan-1 Jan-1
Rates 2026 2027 2028 2029 2030
Bimonthly Service Charges
Residential
Single Family $78.04 $76.22 $78.89 $81.65 $84.51 $87.46 Mu
lti Family 48.29 50.81 52.59 54.43 56.34 58.31 Commercial/Recycled Water

0.75'' 78.04 76.22 78.89 81.65 84.51 87.46 1'' 125.94 127.03 131.48 136.08 140.84 145.77

1.5'' 245.68 254.07 262.96 272.16 281.69 291.55 2'' 389.37 406.50 420.73 435.46 450.70 466.47 3'' 844.37 889.23 920.35 952.56 985.90 1,020.41 4'' 1,514.90 1,600.61 1,656.63 1,714.62 1,774.63 1,836.74 6'' 3,358.86 3,429.89 3,549.93 3,674.18 3,802.77 3,935.87 8'' 3,358.86 4,065.05 4,207.33 4,354.58 4,506.99 4,664.74 Auto Fire Sprinkler
2'' or less 13.19 7.51 7.78 8.05 8.33 8.62 3'' 26.47 21.83 22.59 23.38 24.20 25.05 4'' 49.38 46.52 48.15 49.83 51.58 53.38 6'' 131.66 135.13 139.86 144.75 149.82 155.06 8'' 273.55 287.96 298.04 308.47 319.27 330.44 10'' 486.98 517.85 535.98 554.73 574.15 594.25 Commodity Charges (per hundred cubic feet) 1
Single Family $5.77 $6.57 $6.78 $7.01 $7.24 $7.48
Commercial/Multi Family/Other 5.52 6.57 6.78 7.01 7.24 7.48 Landscape/Schools/etc. 6.30 6.57 6.78 7.01 7.24 7.48 Lift Charge (per ccf/lift) 0.17 0.19 0.19 0.20 0.21 0.22 Well Water 1.54 1.59 1.65 1.71 1.77 1.83 Recycled Water 3.58 3.76 3.89 4.02 4.16 4.31 Proposed Rates Effective:
1 The commodity charges include the anticipated 2026 cost increase from Calleguas. Charges for 2027–2030 do not include potential future cost increases from Calleguas beyond 2026, which will be passed through to customers in accordance with Government Code Section 53756. Commodity Charges will be updated annually on January 1.
46 BARTLE WELLS ASSOCIATES 27
City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update

4.3 Bill Impacts
Table 17 presents the bimonthly bill impacts for various residential customers under existing rates and the proposed rates. As a note, fixed service charges and volumetric charges are billed on a bimonthly basis.

Table 17 – Sample Residential Bimonthly Bill Impacts

The figures below show the bimonthly bill impacts for single and multi family residential customers with various total usage under existing rates and the proposed 2026 rate.

Current
CY 2025 2026 2027 2028 2029 2030
Bimonthly Residential
Single Family (10 CCF) $135.74 $141.92 $146.69 $151.75 $156.91 $162.26 $ Increase 6.18 4.77 5.06 5.16 5.35 % Increase 4.55% 3.36% 3.45% 3.40% 3.41%
Single Family (20 CCF) $193.44 $207.62 $214.49 $221.85 $229.31 $237.06 $ Increase 14.18 6.87 7.36 7.46 7.75 % Increase 7.33% 3.31% 3.43% 3.36% 3.38%
Single Family (30 CCF) $251.14 $273.32 $282.29 $291.95 $301.71 $311.86 $ Increase 22.18 8.97 9.66 9.76 10.15 % Increase 8.83% 3.28% 3.42% 3.34% 3.36%
Multi Family (5 CCF) $75.89 $83.66 $86.49 $89.48 $92.54 $95.71 $ Increase 7.77 2.83 2.99 3.06 3.17 % Increase 10.24% 3.38% 3.46% 3.42% 3.43%
Multi Family (10 CCF) $103.49 $116.51 $120.39 $124.53 $128.74 $133.11 $ Increase 13.02 3.88 4.14 4.21 4.37 % Increase 12.58% 3.33% 3.44% 3.38% 3.39%
Proposed1
1 Proposed bill impacts include the 2026 pass-through rate only; future pass-through increases are not reflected.
47 BARTLE WELLS ASSOCIATES 28
City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update

Figure 3 – 2026 Bimonthly Bill Impacts for Single Family Customers

Figure 4 – 2026 Bimonthly Bill Impacts for Multi Family Customers

$78.04
$78.04
$78.04
$57.70
$115.40
$173.10
$76.22
$76.22
$76.22
$65.70
$131.40
$197.10
$135.74
$193.44
$251.14
$141.92
$207.62
$273.32
$0
$50
$100
$150
$200
$250
$300
$350
Current Fixed Portion Current Commodity Portion
Proposed CY 2026 Fixed Portion Proposed CY 2026 Commodity Portion 10 CCF 20 CCF 30 CCF
$48.29
$48.29
$27.60
$55.20
$50.81
$50.81
$32.85
$65.70
$75.89
$103.49
$83.66
$116.51
$0
$30
$60
$90
$120
$150
Current Fixed Portion Current Commodity Portion
Proposed CY 2026 Fixed Portion Proposed CY 2026 Commodity Portion 10 CCF5 CCF
48 BARTLE WELLS ASSOCIATES 29
City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update

4.4 Regional Water Rate Survey
Figure 5 shows a regional survey of monthly water service charges for a typical single family home. The chart shows both the District’s current rate as well as the proposed water rate effective January 1, 2026 in orange. Rate increases for other agencies are also included. As a note, proposed rates for some agencies are uncertain.

Figure 5 – Single Family Monthly Water Rate Survey

$75.37 $79.11
$90.24
$103.43 $109.26 $110.10
$119.77 $124.52 $125.72 $131.34 $133.37 $134.73
$197.10
+24.0%
$98.15
+7.1%
$97.15
+5.0%
$114.75
+7.0%
$117.77
+9.1%
$143.23
$-
$50
$100
$150
$200
$250
City of
Fillmore
City of
Camarillo
Camrosa
Water
District
VCWWD 1
Moorpark
City of
Oxnard
City of
Ventura
Las
Virgenes
Municipal
Water
District
(Calabasas)
City of
Santa Paula
Golden
State Water
Company
(Simi Valley)
VCWWD 8
Simi Valley
City of
Thousand
Oaks
City of Port
Hueneme
Triunfo
Water and
Sanitation
District
(Westlake
Village)
Monthly Single Family Residential Water Bills, 3/4" Meter (Based on Avg. monthly usage of 16 HCF)
Fixed Rate Variable Charge Proposed Rate Increase
49 BARTLE WELLS ASSOCIATES 30
City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update

5 CAPACITY FEE UPDATE

5.1 Background and Objectives
The District currently levies water capacity fees (also referred to as “Connection or Capital Improvement Fee”) on new connections within the District’s service area. These capacity fees are designed to recover the proportionate share of the costs for existing capacity in water system infrastructure for new homes and development connecting to the system . This report develops a capacity fee for new and expanded connections to the District’s water system.

Key objectives of the capacity fee elements of the study include:
 Update the existing water capacity charge to:
o Recover the costs of existing infrastructure in current dollars; o Be consistent with industry-standard practices and methodologies; o Comply with applicable law.

This report presents key findings and capacity fee recommendations for District consideration.

5.2 Government Code
Capacity fees are governed by California Government Code (“Code”) section 66013. Capacity fees, which are imposed on new or upsized connections, are governed by different rules and regulations than development impact fees. Section 66013 also identifies various accounting requirements for capacity fee revenues, notably that such revenues cannot be co-mingled with other revenues and must be used solely for the purpose for which the fee was imposed. Section 66016 of the Code identifies the procedural requirements for adopting or increasing a water or sewer capacity charge.

5.3 Capacity Fee Derivation
This section details the calculation of updated capacity fees under the buy-in approach. The fees were calculated and designed to be simple and straightforward to implement.

5.3.1 Methodology
Buy-In Approach
This study follows the “Buy-In” approach for deriving the proposed capacity charges. Under this approach, the fee is based on the value of existing facilities and assets (in current dollars) divided by the capacity of the water system. The buy- in approach is more commonly used by agencies with water systems that require minimal facility capacity improvements. This methodology is recommended because, while new facilities will be needed to serve the District’s Service Area at build -out, it is currently unknown when 50 BARTLE WELLS ASSOCIATES 31
City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update build-out will occur and may be necessary. Therefore, using the buy-in approach ensures that the District recovers the proportional share of existing facilities attributable to growth, while allowing for the ability to revise the approach as more certainty about new future facilities is attained.

Asset Valuation Method
The fees are based solely on existing asset valuations, as identified in the City of Simi Valley ’s 2015 Facilities Assessment and in the District’s waterworks fixed asset list as of October 28, 2024. A comprehensive asset list and valuation is shown in Appendix B.

Estimated Replacement Cost Less Estimated Depreciation (RCNLD) – The current (or replacement) value of existing facilities is estimated based on escalating the historical purchase price of the District’s assets by the Engineering News -Record Construction Cost Index (Los Angeles) to current dollars. Accumulated depreciation is estimated by factoring in age and useful life from the City’s fixed asset list. For example, if an asset has 10 years of useful life and is 5 years old, 50% of the replacement value of the asset is included, whereas if it is greater than 10 years old, no value is included in the fee.

Water System Capacity
BWA then calculated the cost per unit of system capacity by first determining the capacity of the District’s water system. Table 18 shows the projected new development in the District’s Service Area through 15 - year buildout based on the City of Simi Valley’s 2020 Urban Water Management Plan. Assuming a multi family unit is equal to one meter equivalent, t he total number of meter equivalents is projected to increase from 52,952 to 56,940 in that time period.

Table 18 – Projected Customer Base

Water System Valuation and Nexus
The next step of calculating a cost per unit of capacity is to determine the District’s water system valuation.

The following table shows the District’s water system assets and its replacements costs. The total estimated replacement cost of the District’s Service Area waterworks enterprise assets , excluding Meter Size Total Meter Ratios
2025 Meter
Ratio Equivalents

0.485% Growth
over 15 Years1
Projected 2040
Meter Equivalents
Multi Family (# EDUs) 7,125 1.00 7,125 537 7,662 Single Family 23,663 1.50 35,495 2,673 38,168 3/4'' 331 1.50 497 37 534 1'' 396 2.50 990 75 1,065

1.5'' 319 5.00 1,595 120 1,715 2'' 570 8.00 4,560 343 4,903 3'' 69 17.50 1,208 91 1,298 4'' 27 31.50 851 64 915 6'' 7 67.50 473 36 508 8'' 2 80. 00 160 12 172 Total 52,952 3,988 56,940 1 Source: 2020 Urban Water Management Plan, pg 107.
51 BARTLE WELLS ASSOCIATES 32
City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update developer contributed capital, amounts to over $220.8 million. Major assets included in the fee calculation are the District’s tanks, pipelines, and pump stations.

BWA excluded the following existing assets from the proposed fee, as the proposed fee is intended to recover core water system assets:
• Vehicles
• Large Tools and Equipment
• Services
• Power Operated and Stores Equipment
• Other Intangibles

BWA used asset valuations from the District’s 2015 Facilities Assessment to assess the value of the District’s major infrastructure – such as tanks, pump stations, and pipelines. To account for the assets the District acquired after the assessment, BWA included all assets from the District’s asset list (given in October 2024) after April 2015. A detailed fixed asset list can be found in Appendix B . The Replacement Cost Less Estimated Depreciation (RCNLD) method was applied to calculate the 2024 cost basis for the District’s water system.

52 BARTLE WELLS ASSOCIATES 33
City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update Table 19 – Asset Valuation

The cost per unit of capacity was then calculated by dividing the total asset valuation for the capacity fee of $220.8 million by the projected number of meter equivalents at ultimate buildout of 56,940 to determine a capacity fee unit rate of $3,879 per meter equivalent.

Applying the unit rate of $ 3,879 per multi family unit to the AWWA standard meter equivalent ratios derives the proposed capacity fee of $3,8 79 for multi family units and up to $310, 339 for an 8” meter.

Table 20 shows a summary of the proposed rates.

Category Original Cost Current Value 2024 Cost Basis (RCNLD) % of Value Left
After Depreciation
Pre-2015 Assets1
Tanks $111,600,000 $156,987,298 $47,096,189 30%
Pump Stations 14,300,000 20,115,756 6,034,727 30% Wells 1,300,000 1,828,705 548,612 30% Treatment 5,200,000 7,314,820 2,194,446 30% Pipelines 314,000,000 441,702,612 132,510,784 30% 446,400,000 627,949,191 188,384,757 Post-April 2015 Assets2,3
Tanks 3,170,710 3,746,723 3,550,589 95% Pump Stations 878,073 1,058,104 942,049 89% Wells 876,604 1,139,492 1,010,430 89% Pipelines 7,882,923 10,160,241 8,874,078 87% Infrastructure 16,007,749 21,179,557 18,120,082 86% 28,816,059 37,284,117 32,497,228 Total 2024 Cost Basis: 220,881,986
Capacity Charge: $3,879
1 Source: "Waterworks Facilities Assessment and Cost of Service Study (April 2015) FINAL," pg 2-22. 2 Source: "Copy of Copy of San and Water Capital Asset Master"; Using all assets after April 2015. 3 Removed any assets related to vehicles and equipment. 53 BARTLE WELLS ASSOCIATES 34
City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update

Table 20 – Proposed Water Capacity Fees

Current1 Proposed2
Service Charges
Residential (per unit)
Single Family Unit (per EDU) $3,714 $5,819
Multi Family Unit (per Unit) 2,603 3,879 Per Acre Res. 8,708 -
Commercial & Industrial

0.75'' 3,714 5,819
1'' 7,428 9,698

1.5'' 14,858 19,396
2'' 26,000 31,034
3'' 55,715 67,887
4'' 111,430 122,196
6'' 222,858 261,849
8'' 222,858 310,339
Per Acre Ind. 10,380 -
Interconnections
6'' or less (per connection) 153.90 -
8'' and over (per diameter-inch) 25.65 - 1 Effective on January 1, 2016.
2 Effective on January 1, 2026.
54 BARTLE WELLS ASSOCIATES 35
City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update

5.4 Fee Survey
Figure 6 shows a regional survey of water capacity fees for a typical single family home. The table shows both the District’s current and proposed water capacity fee. The increase in the proposed fee is partially attributable to the current capacity fee remaining unchanged since its implementation in 2016.

Figure 6 – Single Family Capacity Fee Survey

5.5 Recommended Annual Adjustments
The proposed capacity fee is recommended to continue to include an annual adjustment tied to the Engineering News-Record Construction Cost Index ( Los Angeles region ). The Engineering News -Record Construction Cost Index ( Los Angeles region ) provides a measure of changes in the prices for labor and construction materials. Annual capacity fee increases tied to the index are intended to retain the purchasing power of capacity fee revenue. The index was based on November 2024 (15580).

$3,095
$3,714 $3,821
$4,633 $4,800
$5,819 $6,123
$10,740
$19,109
$0
$5,000
$10,000
$15,000
$20,000
Ventura
County
Waterworks
Dist 1
City of Simi
Valley
(Existing)
City of
Ventura
City of Oxnard Camrosa
Water District
City of Simi
Valley
(Proposed)
City of
Camarillo
City of
Thousand
Oaks
Las Virgenes
Municipal
Water District
Single Family Residential Water Capacity Fee Survey
55 BARTLE WELLS ASSOCIATES 36
City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update 6 CONCLUSION AND RECOMMENDATIONS

6.1 Conclusion
This water rate and capacity fee study report presents a comprehensive review of the District’s water revenue requirements, rates, and capacity fees. Financial projections indicate the need for relatively small, gradual annual water rate increases to keep up with cost inflation and support funding for the District’s capital improvement program while maintaining prudent levels of fund reserves. The capacity fees (one- time fees paid by new development to connect to the water system) would see a more substantial bump up to ensure growth pays its fair share for the existing water system. The funds noted in this report were assigned based on financial information available at the time of this report ’s preparation. The evolving needs related to real time water supply services, including, manpower, distribution, and treatment support was established using best judgement. Should unforeseen requirements arise —such as environmental compliance changes, additional staffing needs, or new capital improvement projects — resources can be redirected and adjusted according to available cash and funding reserves. The proposed rates are designed to ultimately support real time and future funding needs, balanced budgets and to provide an adequate ongoing current funding stream to enable the District to properly maintain, operate, and address future fundings needs for proper system operation and replacement of aging infrastructure.

6.2 Recommendations
BWA recommends that the District adopt the rates and fees shown in this report to fund its operati ng, maintenance, and capital needs. BWA also recommends that the District review and update its water rate study and capacity fee study every five years and/or concurrent with Master Water Plan Updates or other major changes to operating, maintenance, and/or capital expenses. 56 BARTLE WELLS ASSOCIATES 37
City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update APPENDIX A — PASS-THROUGH RATE CALCULATION
The pass-through rate is calculated as follows:
• A = Increase Variable Rate equals the difference of Calleguas’ Tier 1 Supply Rate of the current and previous years. BWA recommends accounting for 8% water loss by dividing “A” by 0.92 (1 – 8%).
• B = Increase Fixed Rate equals the difference between Calleguas’ total annual Capacity Rate Charge (CRC) and Readiness-To-Serve (RTS) of the current and previous years. • C = Unit Cost Variable. “C” equals to “A” divided by 435.63. • D = Unit Cost Fixed. “D” equals to “B” divided by total Billing Units sold between October 1st and September 30th.
• E = Current year Commodity Pass-Through Rate. “E” = “C” + “D” • New Commodity Charge = Current Year Base Commodity Rate + “E” + Cumulative Pass- Through Rates (2026 through 2030)

3 435.6 is the conversion factor from $/AF (Acre-Feet) to $/B.U. (Billing Unit). One billing unit is one hundred cubic feet (CCF)
57 BARTLE WELLS ASSOCIATES 38
City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update APPENDIX B — 10-YEAR CAPITAL IMPROVEMENT PROGRAM

Current
Project Description Encumbrance FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 FY 2033/34 FY 2034/35 10- Y ear Total Replacement Reserve Fund
Emergency Generators $890,246 -
Tank Inspection and Cleaning 118,332 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 1,000,000 Hilltop Tank Rafter Repair 67,911 -
Walnut Tank 2 Repair and Recoat 984,034 -
Tank Replacement - Stow No. 1 1,425,000 125,000 1,000,000 1,125,000 Tank Replacement - Flanagan 250,000 250,000 500,000 2,100,000 2,850, 000 Madera 1031 Tank Repair and Recoat 400,000 1,450,000 1,850,000 Mellow Lane Tank Repair and Recoat 250,000 250,000 250,000 Stearns Tank No. 1 Repairs 1,144,250 200,000 200,000 Tank Replacement - Stearns No. 2 200,000 2,300,000 2,300,000 Tank Replacement - Marr Ranch Tank 1 2,000,000 300,000 350,000 650,000 Tank Replacement - Lilac 200,000 900,000 1,100,000 Marr Ranch Tank 2 Repair and Recoat 500,000 1,800,000 2,300,000 Stow Tank 2-4 Repair and Recoat 400,000 1,000,000 2,000,000 3,400,000 Tank Repair & Recoat - First St Tanks 1, 2, 3, 4 300,000 300,000 2,500,000 2,500,000 5,600, 000 Tank Repair Sinai 400,000 1,000,000 1,400,000 2,800,000 Tank Repair Wood Ranch #2 1,500,000 1,500,000
Tank Repair Crosby 200,000 900,000 1,100,000 Big Sky #1 Tank Repair and Recoat 2,200,000 2,200,000 Big Sky #2 Tank Repair and Recoat 1,850,000 1,850,000 Casual Court Tank Repair and Recoat 1,050,000 1,050,000 Madera #2 Tank Repair and Recoat 2,600,000 2,600,000 McCoy Tank Repair and Recoat 1,200,000 1,200,000
Mine Rd #1 Tank Repair and Recoat 950,000 950,000 Mine Rd #2 Tank Replacement 700,000 700,000
Station #2 Tank Replacement 600,000 600,000
Station #3 Tank Replacement 600,000 600,000
Wood Ranch #1 Tank Repair and Recoat 1,500,000 1,500,000 Wood Ranch 5MG Tank Repair and Recoat 3,100,000 3,100,000 Pump Station Rehab - Station 1 2,460,971 1,000,000 1,000,000 Pump Station Rehab - Station 2 2,804,809 1,000,000 1,000,000 Pump Station Removal - Station 3 1,200,000 500,000 500,000 Walnut Avenue Pump Station 3,763,772 -
Water Line Repl - Roan Street 177,381 -
Water Line Repl - Apricot/Cedar/Leota (Wisteria) 380,000 - Water Line Repl - Black Cyn/Gaston/Reis/Studio 305,000 200,000 200,000 Water Line Repl - Eastward/My Way (Rowell) 112,750 - Water Line Repl - Hilltop Rd. / Oak Knolls 737,000 350,000 350,000 Water Line Repl - Casa Grande / Redwood 495,000 165,000 165,000 Water Line Repl - Del Robles/Foothill/Camino 866,000 350,000 350,000 Water Line Repl - Folly Sims 810,000 810,000
Water Line Repl - Laguna 20,000 220,000 220,000 Water Line Repl - Lipman / Howe 20,000 580,000 580,000 5-Year Projection Extended Projection
58 BARTLE WELLS ASSOCIATES 39
City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update APPENDIX B — 10-YEAR CAPITAL IMPROVEMENT PROGRAM (CONTINUED)

Current
Project Description Encumbrance FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 FY 2032/33 FY 2033/34 FY 2034/35 10-Year Total Water Line Repl - Walnut Street 64,165 -
Water Line Repl - Sorrel, Buckskin, Pinto, Arabian 1,320,000 1,000,000 2,320,000 Water Line Repl - Loma/Ash/Katey 315,000 315,000 Water Line Repl - Mesa/Shirley/Johnson 280,000 280,000 Water Line Repl - Secker 140,000 140,000
Water Line Repl - Township / Sheri 380,000 380,000 ARC Flash Study 38 -
Tapo Water Treatment Plant Chlorine Generation System 200,000 150,000 150,000 Well Rehabilitation Program 352,607 40,000 140,000 140,000 140,000 140,000 140,000 140,000 140,000 140,000 1,160,000 Vulnerability Assessment Upgrades 276,481 80,000 80,000 80,000 80,000 80,000 400,000 Replace Three Seismic Controllers 75,000 20,000 20,000 Water Tank - Seismic Valve Actuators - Replace and Repair 60,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 450,000 Refurbishment/Install District Pumping Facilities 266,365 50,000 50,000 50,000 70,000 70,000 70,000 70,000 70,000 500,000 Main Line Valve Replacement 609,701 100,000 100,000 100,000 100,000 100,000 500,000 SCADA PLC Replacements 4,212 140,000 140,000 District Telemetry Systems 500,304 100,000 100,000 100,000 100,000 100,000 500,000 Painting of Water Facilities 381,299 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 900,000 Paving & Slurry Seal for Roads and District Facilities 222,269 125,000 125,000 125,000 150,000 150,000 150,000 150,000 150,000 1,125,000 Landscape, Fencing, Noise Barrier 113,760 15,000 15,000 15,000 15,000 20,000 20,000 20,000 20,000 20,000 160,000 Valve Box Replacement 105,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 140,000 Waterworks Demand Factor Study 5,487 -
Waterworks Service Line Study 144,568 -
Em
ergency Generator Servicing 50,000 50,000 50,000 50,000 50,000 250,000 PSPS Generators 300,000 300,000
Capital Improvement Fund
Knolls Zone Water Facilities 4,849,464 700,000 700,000 Oak Knolls Pump Station 1,360,085 1,200,000 1,200,000 New Well in Gillibrand Basin 2,059,550 500,000 500,000 Water Storage Mixing Systems 207,248 100,000 100,000 100,000 100,000 100,000 100,000 100,000 700,000 Purchase Recycled Water Facilities 2,000,000 -
Total 34,530,059 2,085,000 5,610,000 7,030,000 5,745,000 7,110,000 6,430,000 6,530,000 7,730,000 7,530,000 6,980,000 62,780,000 5-Year Projection Extended Projection
59 BARTLE WELLS ASSOCIATES 40
City of Simi Valley CY 2026-2030 Water Rate Study and Capacity Fee Update APPENDIX C — DETAILED ASSET LIST

Description Type Acquisition Date
Year of
Purchase Age
Acquisition
Cost Useful Life
Escalated Cost-
Current Dollars
Remaining
Life (%)
Cost Less
Depreciation
40-13-024, Series 600 Engine Controller Tanks 06/30/2015 2015 9 19,096 15 26,862 40.00% 10,745 Tr 5182-C1 Big Sky (Village F & I) Pipelines 06/30/2015 2015 9 906,507 50 1,275,180 82.00% 1,045,648 Tr 5182-C1 Big Sky (Backbone) Infrastructure 06/30/2015 2015 9 5,337,009 50 7,507,550 82.00% 6,156,191 Tr 5864 Swc Avenida Simi/Reservoir Dr Infrastructure 06/30/2015 2015 9 122,113 50 171,776 82.00% 140,856 La Ave Pipeline Replacement Fy09 Pipelines 06/30/2015 2015 9 912,958 50 1,284,255 82.00% 1,053,089 Tr 5207-Presidio Btwn Tapo St & Yosemite Pipelines 06/30/2016 2016 8 1,602,700 50 2,220,003 84.00% 1,864,802 Tr 5413-Leeds East Of Ralston Infrastructure 06/30/2016 2016 8 117,079 50 162,174 84.00% 136,226 Tr 5462-Los Angeles Ave East Of Ralston Infrastructure 06/30/2016 2016 8 25,770 50 35,696 84.00% 29,984 First St Waterline Relocation Fy13 Pipelines 06/30/2016 2016 8 979,976 50 1,357,427 84.00% 1,140,239 Allen-Bradley Motor Control Center Pump Stations 05/08/2017 2017 7 117,881 15 156,363 53.33% 83,394 Tr5411-Swc Of Kuehner & Mt. Sinai-Distr Pipelines 06/30/2017 2017 7 423,778 50 562,122 86.00% 483,425 Tr5600-Sec Of La & Simi Village - Distr Pipelines 06/30/2018 2018 6 36,574 50 47,606 88.00% 41,893 Tr681 161 W. Cochran St - Distr Lines Pipelines 06/30/2018 2018 6 52,626 50 68,499 88.00% 60,280 Crown Hill Drive Waterline Pipelines 06/30/2019 2019 5 382,428 50 494,442 90.00% 444,998 Tr5940 - 4540 Apricot Rd Water Line Pipelines 06/30/2019 2019 5 45,202 50 58,442 90.00% 52,598 Tr5953 - 1755 Heywood St Water Line Pipelines 06/30/2019 2019 5 35,275 50 45,607 90.00% 41,046 Water Line Replc/La Gross Way Pipelines 06/30/2020 2020 4 159,729 50 206,273 92.00% 189,772 Tr5523 Nwc Of Tapo &Eileen - Distr Lines Pipelines 06/30/2021 2021 3 44,651 50 54,722 94.00% 51,439 Nwc Kadoda St & Big Springs-Distr Lines Pipelines 06/30/2022 2022 2 242,300 50 281,658 96.00% 270,392 Fy 18/19 Tank Recoat & Repair Prgrm Tanks 06/30/2022 2022 2 971,263 50 1,129,030 96.00% 1,083,869 Wlr - Lilac Tank Tanks 06/30/2022 2022 2 144,117 50 167,527 96.00% 160,826 Small Tank Replacements Fy13 Tanks 06/30/2022 2022 2 1,366,217 50 1,588,140 96.00% 1,524,614 Tr5978 Se Los Angeles & Madera-Dist Line Pipelines 06/30/2023 2023 1 1,069,000 50 1,128,763 98.00% 1,106,187 Pd-S-1067 1260 Patricia-Distri Lines Pipelines 06/30/2023 2023 1 29,677 50 31,336 98.00% 30,709 Wlr - Ehlers Larson My Way Pipelines 06/30/2023 2023 1 427,057 50 450,932 98.00% 441,913 Wlr Dennis Rollins Wells Peppertr Infrastructure 06/30/2023 2023 1 748,048 50 789,868 98.00% 774,071 Wlr Walnut Street Infrastructure 06/30/2023 2023 1 685,835 50 724,177 98.00% 709,694 Hilltop Tank Rafter Rehab Infrastructure 06/30/2024 2024 0 487,089 50 487,089 100.00% 487,089 Stearns St Storage Structure Infrastructure 06/30/2017 2017 7 280,685 50 372,315 86.00% 320,191 Water Line Relocate-Box Cyn Fy15 Pipelines 06/02/2015 2015 9 145,366 50 204,485 82.00% 167,678 Water Storage Mixing Systems Infrastructure 11/19/2015 2015 9 604,307 50 850,076 82.00% 697,062 New Well In Gillibrand Basin Wells 06/30/2018 2018 6 727,977 50 947,554 88.00% 833,848 Interior Tank Recoating Tanks 06/30/2019 2019 5 316,791 50 409,581 90.00% 368,623 Well Rehabilitation Program Wells 06/30/2020 2020 4 148,628 50 191,937 92.00% 176,582 Walnut Ave Pump Station Pump Stations 06/30/2021 2021 3 286,228 50 350,788 94.00% 329,741 Walnut Tank 1 Repair And Recoat Tanks 06/30/2021 2021 3 306,509 50 375,643 94.00% 353,105 Knolls Pump Station Upgrade Pump Stations 06/30/2022 2022 2 89,915 50 104,520 96.00% 100,340 Stearns Tanks 1 & 2 Upgrades Tanks 06/30/2022 2022 2 5,750 50 6,684 96.00% 6,417 Pump Station Rehab Station 1 Pump Stations 06/30/2022 2022 2 189,029 50 219,734 96.00% 210,945 Pump Station Rehab Station 2 Pump Stations 06/30/2022 2022 2 195,020 50 226,698 96.00% 217,630 Walnut Tank 2 Repair And Recoat Tanks 06/30/2023 2023 1 40,966 50 43,256 98.00% 42,391 Wlr-Hilltop Rd/Oak Knolls Pipelines 06/30/2023 2023 1 10,250 50 10,823 98.00% 10,607 Wlr-Del Robles/Foothill/End/Camino Pipelines 06/30/2023 2023 1 14,250 50 15,047 98.00% 14,746 Walnut Line Replacement - Eastward/My Infrastructure 06/30/2023 2023 1 7,250 50 7,655 98.00% 7,502 Wlr Roan Street Pipelines 06/30/2024 2024 0 362,619 50 362,619 100.00% 362,619 Earthquake Repair To Tapo Canyon Wtp Infrastructure 06/30/2017 2017 7 7,592,564 50 10,071,180 86.00% 8,661,215 Total Asset Valuation: 28,816,059 32,497,228
60

Simi Valley City CouncilNovember 17, 2025

Simi Valley City Council
November 17, 2025