City Council and Concurrent Authorities
November 12, 2024

Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION TO FORM A COMMUNITY FACILITIES DISTRICT, ESTABLISH A

FUTURE ANNEXATION AREA, AND TO LEVY A SPECIAL TAX THEREIN TO

FINANCE PUBLIC SERVICES AND THE ACQUISITION AND CONSTRUCTION OF

CERTAIN PUBLIC FACILITIES IN AND FOR SUCH DISTRICT

CITY OF STOCKTON
COMMUNITY FACILITIES DISTRICT NO. 2024-1
(SOUTH STOCKTON FACILITIES AND SERVICES)
On September 17, 2024, pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing with Section 53311, of the California Government Code (the “Act”), this City Council adopted Resolution No. 2024-09-17-1502-01 (the “Resolution of Intention”), stating its intention to form “City of Stockton Community Facilities District No. 2024-1 (South Stockton Facilities and Services) (the “CFD”) and establish a future annexation area related thereto entitled “City of Stockton Community Facilities District No. 2024-1 (South Stockton Facilities and Services) (Future Annexation Area)” (the “Future Annexation Area”); and The Resolution of Intention, incorporating a map of the proposed boundaries of the CFD and Future Annexation Area and stating the facilities and services to be provided, the cost of providing such facilities and services, and the rate and method of apportionment of the special tax to be levied within the CFD to pay the principal and interest on bonds proposed to be issued with respect to the CFD, and the cost of the facilities and the cost of the services, is on file with the City Clerk and the provisions thereof are incorporated herein by this reference as if fully set forth herein; and Subsequent to the adoption of the Resolution of Intention the landowners of all the territory in the proposed CFD requested that the boundaries of the CFD be reduced and that the territory removed from the initial CFD boundary be moved to the Future Annexation Area. In connection with the request, the landowners submitted an amended boundary map depicting the requested amended boundaries of the CFD and Future Annexation Area (herein the “Amended Map”). The Amended Map is on file with the City Clerk, and the Council desires to approve and adopt the Amended Map as describing the extent of the territory included in the CFD and Future Annexation Area at the time of formation.

On this date, this City Council held a noticed public hearing as required by the Act and the Resolution of Intention relative to the proposed formation of the CFD and establishment of the Future Annexation Area; and
At the hearing all interested persons desiring to be heard on all matters pertaining 2008

to the formation of the CFD and the establishment of the Future Annexation Area, the services and facilities to be provided therein, and the levy of said special tax were heard and a full and fair hearing was held; and
At the hearing evidence was presented to this City Council on said matters before it, including a CFD hearing report (the “Report”) which City staff caused to be prepared as to the facilities and the services to be provided through the CFD and the costs thereof, a copy of which is on file with the City Clerk, and this City Council at the conclusion of said hearing is fully advised in the premises; and
The special tax proposed to be levied in the CFD to pay for the proposed facilities and services to be provided therein, as set forth in the formula in Exhibit 1 hereto, has not been eliminated by protest by 50% or more of the registered voters, or six registered voters, whichever is more, residing within the proposed boundaries of the CFD or the owners of one-half or more of the area of land in the proposed CFD not exempt from the special tax; and
The proposed establishment of the Future Annexation Area and future annexation of parcels within the Future Annexation Area to the CFD has not been eliminated by protest by (i) 50% or more of the registered voters, or six registered voters, whichever is more, residing in the proposed boundaries of the CFD, (ii) 50% or more of the registered voters, or six registered voters, whichever is more, residing in the Future Annexation Area, (iii) owners of one-half or more of the area of land in the proposed CFD or (iv) owners of one-half or more of the area of land in the Future Annexation Area; now, therefore,

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:

1. The foregoing recitals are true and correct.

2. The proposed special tax to be levied within the CFD has not been precluded by majority protest pursuant to section 53324 of the Act.

3. All prior proceedings taken by this City Council in connection with the establishment of the CFD and the Future Annexation Area and the levy of the special tax within the CFD have been duly considered and are hereby found and determined to be valid and in conformity with the Act.

4. The community facilities district designated “City of Stockton Community Facilities District No. 2024-1 (South Stockton Facilities and Services)” is hereby established pursuant to the Act.

The future annexation area designated “City of Stockton Community Facilities District No. 2024-1 (South Stockton Facilities and Services) (Future Annexation Area)” is hereby established pursuant to the Act.
2009

5. The boundaries of the CFD and the Future Annexation Area, were initially proposed as set forth in the map of the CFD heretofore on October 7, 2024 at 11:52 o’clock a.m., in Book 7 of Maps of Assessment and Community Facilities Districts at Page 86, as Document No. 2024-09-17-1502-01 in the office of the County Recorder for the County of San Joaquin, State of California. The Council accepts and approves the landowner requested amendments to the initially proposed boundaries of the CFD and the Future Annexation Area, and hereby approves the Amended Map. The boundaries shown on the Amended Map are incorporated herein by reference and shall be the boundaries of the CFD and the Future Annexation Area, respectively. The Council directs the City Clerk to certify the adoption of this resolution on the face of the Amended Map, and to file a copy of the map in the office of the City Clerk in accordance with Section 3113 of the California Streets and Highways Code, and within 15 days of the date of adoption of this resolution transmit the map to the County Recorder for recording in the Book of Maps of Assessment and Community Facilities Districts in the office of the County Recorder of the County of San Joaquin.

Parcels within the Future Annexation Area shall be annexed to the CFD only with the unanimous approval (each, a “Unanimous Approval”) of the owner or owners of each parcel or parcels at the time that parcel or those parcels are annexed, without any requirement for further public hearings or additional proceedings. The City Council hereby determines that any property for which the owner or owners execute a Unanimous Approval shall be added to the CFD, and the City Clerk shall record an amendment to the notice of special tax lien pursuant to Section 3117.5 of the Streets & Highways Code, or a new notice of special tax lien pursuant to Section 3114.5, as appropriate.

All or any portions of territory that annexes into the CFD from the Future Annexation Area or otherwise may be annexed into one or more separate improvement areas (each, a “Future Improvement Area”) then in existence or to be formed at the time of such annexation and no additional hearings or procedures are required. The designation of a parcel or parcels as an improvement area shall be specified and approved by the Unanimous Approval at the time that the parcel or parcels are annexed to the CFD. After the designation of a parcel or parcels as an improvement area, all proceedings for approval of an appropriations limit, the rate and method of apportionment and manner of collection of special taxes, and the authorization to incur bonded indebtedness may differ from other areas of the CFD, all as set forth in the Unanimous Approval, and shall apply only to the parcel or parcels within such improvement area.

6. The type of public facilities proposed to be financed by the CFD, including parcels in the Future Annexation Area annexed to the CFD, pursuant to the Act shall consist of those items listed as facilities in Exhibit 2 hereto and by this reference incorporated herein (the “Facilities”).

The listing includes incidental expenses incurred and to be incurred in connection with the CFD and the issuance of bonds for the CFD. The financing of the costs of the Facilities may include, without limitation, the payment of principal of and interest on 2010

bonds, together with all direct, indirect periodic, and/or other related costs (including, without limitation, costs of administering the CFD, levying the Special Taxes (defined below) and administering the bonds, and establishing and replenishing reserve funds).

7. Except to the extent that funds are otherwise available to the CFD to pay for the Facilities, and/or the principal and interest as it becomes due on bonds issued by the City for the CFD to construct and/or acquire the Facilities, a special tax (the “Facilities Special Tax”) sufficient to pay the costs thereof, secured by recordation of a continuing lien against all non-exempt real property in the CFD, will be levied annually within the CFD, and collected in the same manner as ordinary ad valorem property taxes, or in such other manner as the Council or its designee shall determine, including direct billing of the affected property owners.

In addition, an annual special tax (the “Services Special Tax” and together with Facilities Special Tax, the “Special Taxes”) will also be levied within the CFD for authorized services and which tax component may provide additional security for debts of the CFD.

The proposed rate and method of apportionment of the Special Taxes among the parcels of real property within the CFD, in sufficient detail to allow each landowner within the CFD to estimate the maximum amount such owner will have to pay and the length of time such amount may be levied, are described in the Rate and Method of Apportionment attached hereto as Exhibit 1 hereto and hereby incorporated herein (the “Rate and Method”), provided that under no circumstances will the Special Tax levied in any fiscal year against any parcel used for private residential purposes be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within the district by more than 10% above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults.

At such time as territory within the Future Annexation Area is annexed into the CFD pursuant to the Unanimous Consent, if such annexation is into or establishing a separate “improvement area” of the CFD pursuant to the Act (each, an “Improvement Area”), approval of a rate and method of apportionment for such territory may differ from that of the CFD or other Improvement Areas as set forth in the Unanimous Approval, and shall provide sufficient detail to allow each landowner within the annexed territory to estimate the maximum amount such owner will have to pay.

The Facilities Special Tax shall not be levied in the CFD after the fiscal year specified in the Rate and Method, except that a Facilities Special Tax that was lawfully levied in or before the final tax year and that remains delinquent may be collected in subsequent years.

Except as may otherwise be provided by law or by the Rate and Method, all lands owned by any public entity, including the United States, the State of California and the City, or any departments or political subdivisions thereof, shall be omitted from the levy of the Special Taxes. In the event that a portion of the property within the CFD shall 2011

become for any reason exempt, wholly or in part, from the levy of the Special Taxes, the Council will, on behalf of the CFD, increase the levy to the extent necessary upon the remaining property within the CFD which is not exempt in order to yield the required debt service payments and other annual expenses of the CFD, if any, subject to the provisions of the Rate and Method. It is anticipated that the Special Taxes will be billed as a separate line item on the regular property tax bill. However, the Council reserves the right, under Section 53340 of the Act, to utilize any method of collecting the Special Taxes which it shall, from time to time, determine to be in the best interests of the City, including, but not limited to, direct billing by the City to the property owners and supplemental billing.

The Council hereby finds that the provisions of sections 53313.6, 53313.7 and 53313.9 of the Act (relating to adjustments to ad valorem property taxes and schools financed by a community facilities district) are inapplicable to the proposed CFD.

The proposed rate and method of apportionment of the Special Taxes among the parcels of real property within a Future Improvement Area that annex to the CFD, in sufficient detail to allow each landowner within such Future Improvement Area to estimate the maximum amount such owner will have to pay, shall be set forth in the applicable Unanimous Approval. The Special Tax shall not be levied in a Future Improvement Area after the fiscal year identified in the rate and method for such Future Improvement Area, except that a special tax that was lawfully levied in or before the final tax year and that remains delinquent may be collected in subsequent years. Under no circumstances shall the special tax levied against any parcel in a Future Improvement Area for private residential purposes be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within such Future Improvement Area by more than 10 percent.

As required by section 53339.3(d) of the Act, the City Council hereby determines that the Facilities Special Tax proposed to pay for public facilities financed with bonds that have already been issued shall be the same for parcels annexed as the tax levied in the existing CFD (or Improvement Area, if applicable) for that purpose, except that a higher Special Tax may be levied for that purposes within the territory proposed to be annexed or to be annexed int the future to compensate for the interest and principal previously paid by the CFD (or such existing Improvement Aea, if applicable), less any depreciation allocable to the financed public facility. In so finding, the City Council does not intend to limit its ability to levy a Facilities Special Tax within territory to be annexed or to be annexed in the future to pay for new or additional public facilities, with or without bond financing.

For Future Improvement Areas, a different rate and method may be adopted than the Rate and Method initially adopted for the CFD if the annexed territory is designated as a separate improvement area. No supplements to the Rate and Method for any of the Improvement Areas and no new rate and method will cause the maximum tax rate in the then-existing territory of the CFD to increase. The designation as an improvement area of any territory annexing to the CFD, the maximum amount of bonded indebtedness and other debt for such improvement area, the rate and method of apportionment of special 2012

tax for such improvement area and the appropriations limit for such improvement area shall be identified and approved in the Unanimous Approval executed by property owners in connection with their annexation to the CFD from the Future Annexation Area. The annexation and related matters described in the Unanimous Approval shall be implemented and completed without the need for City Council approval as long as the following conditions are met:
(i) The rate and method of apportionment of special tax for the new improvement area is prepared by a special tax consultant retained by the City. (ii) The rate and method of apportionment of special tax for the new improvement area complies with the City’s local goals and policies concerning the use of the Act then in effect.
(iii) The rate and method of apportionment of special tax for the new improvement area includes a mechanism that protects against revenue loss as a result of land use changes.
(iv) The Special Tax proposed to pay for the Facilities to be supplied within the territory annexed will be equal to the Special Taxes levied to pay for the same Facilities in previously-existing areas of the CFD, except that (a) a higher Special Tax may be levied on territory annexing into the CFD to pay for the same Facilities to compensate for the interest and principal previously paid from Special Taxes in the original area of the CFD, less any depreciation allocable to the financed Facilities, and (b) a higher Special Tax may be levied on territory annexing into the CFD to pay for new or additional Facilities, with or without bond financing.

8. It is hereby found and determined that the Facilities and the Services are necessary to meet increased demands placed upon local agencies as the result of development occurring in the CFD and the Future Annexation Area.

9. The Chief Financial Officer of the City, 425 N. El Dorado Street, Stockton, California 95202, Tel: (209) 937-8908, is designated as the office responsible for preparing annually a current roll of special tax levy obligations by assessor’s parcel number, estimating future special tax levies and for establishing procedures to promptly respond to inquiries regarding estimates of future special tax levies. The City may contract with outside consultants to provide this service in lieu of the Chief Financial Officer.

10. Upon recordation of a notice of special tax lien pursuant to section 3114.5 of the Streets and Highways Code of California, a continuing lien to secure each levy of the special tax shall attach to all nonexempt real property in the CFD, and this lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the tax by the City ceases. Upon recordation of a notice of special tax lien pursuant to section 3114.5 of the Streets and Highways Code of California, a continuing lien to secure each levy of 2013

the special tax shall attach to all nonexempt real property annexed to the CFD from the Future Annexation Area, and this lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the tax by the City ceases.

11. In accordance with the Act, the annual appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, shall be preliminarily established for the CFD in the amount of $50,000,000. The proposition establishing said annual appropriations limit shall become effective if approved by the qualified electors voting thereon and shall be adjusted in accordance with the applicable provisions of the Act.

The designation as an improvement area of any territory annexing to the CFD, the maximum amount of bonded indebtedness and other debt for such improvement area, the rate and method of apportionment of special tax for such improvement area and the appropriations limit for such improvement area shall be identified and approved in the Unanimous Approval executed by property owners in connection with their annexation to the CFD.

12. Pursuant to the provisions of the Act, the proposition of the levy of the Special Taxes within the CFD and the proposition of the establishment of the appropriations limit specified above shall be submitted to the qualified electors of the CFD at an election. The time, place and conditions of the election shall be as specified by a separate resolution of the City Council.

13. Section 53314.9 of the Act provides that, either before or after formation of the CFD, the Authority may accept work in-kind from any source, including, but not limited to, private persons or private entities, may provide, by resolution, for the use of that work in-kind for any authorized purpose and the City may enter into an agreement (an “Acquisition Agreement”), by resolution, with the person or entity advancing the work inkind, to reimburse the person or entity for the value, or cost, whichever is less, of the work in-kind, as determined by the City Council, with or without interest, under the conditions specified in the Act. Any work in-kind must be performed or constructed as if the work had been performed or constructed under the direction and supervision, or under the authority of, the City.

Section 53316.2 of the Act provides that a community facilities district may finance facilities to be owned or operated by a public agency other than the agency that created the district, or services to be provided by a public agency other than the agency that created the district, or any combination, only pursuant to a joint community facilities agreement or a joint exercise of powers agreement adopted pursuant to this section. The City Manager and each other authorized officer of the City is hereby authorized and directed to enter into joint community facilities agreements with any local agency that will own or operate any of the Facilities or provide any of the Services, as may be necessary to comply with the provisions of Section 53316.2(a) and (b) of the Act. The City Council 2014

hereby declares that such joint agreements will be beneficial to owners of property in the area of the CFD.

14. This City Council now finds and determines that all proceedings up to and including the adoption of this Resolution were and are valid and in conformity with the requirements of the Act. This determination and finding is final and conclusive in accordance with Government Code Section 53325.1(b).

15. This resolution shall take effect upon its adoption.

16. The City Manager is hereby authorized to take such further actions as are necessary and appropriate to carry out the purpose and intent of this Resolution.

PASSED, APPROVED, and ADOPTED November 12, 2024 .

KEVIN J. LINCOLN II
Mayor of the City of Stockton
ATTEST:

KATHERINE ROLAND, CMC, CPMC
Interim City Clerk of the City of Stockton
2015
Rate, Method of Apportionment, and Manner of Collection of Special Tax August 2, 2024
Economic & Planning Systems, Inc. (EPS) 1-1
EXHIBIT 1
City of Stockton
Community Facilities District No. 2024-1
(South Stockton Facilities and Services)
San Joaquin County, California

RATE, METHOD OF APPORTIONMENT, AND

MANNER OF COLLECTION OF SPECIAL TAX

1. Basis of Special Tax Levy
A Special Tax authorized under the Mello-Roos Community Facilities Act of 1982 (Act) applicable to the land in the City of Stockton Community Facilities District No. 2024-1 (South Stockton Industrial/Commercial Services and Maintenance District) (CFD) of the City of Stockton (City) shall be levied and collected according to the tax liability determined by the City through the application of the appropriate amount or rate, as described below.

2. Definitions
“Acre” or “Acreage” means the land area of a County Assessor’s Parcel as shown on an Assessor’s Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final map. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, Sections 53311 and following of the California Government Code. “Administrative Expenses” means the actual or reasonably estimated costs related to the administration of the CFD, including, but not limited to, these:
a. Costs of computing Special Taxes and preparing annual Special Tax collection schedules (whether by the City or any designee thereof or both). b. Costs of collecting the Special Taxes (whether by the County, the City, or otherwise).
c. Costs of remitting the Special Taxes to the Trustee. d. Costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Bond Indenture.

EXHIBIT 1
2016
Rate, Method of Apportionment, and Manner of Collection of Special Tax August 2, 2024
Economic & Planning Systems, Inc. (EPS) 1-2
e. Costs to the City, CFD, or any designee thereof of complying with arbitrage rebate requirements.
f. Costs to the City, CFD, or any designee thereof of complying with City, CFD, or obligated persons disclosure requirements.
g. Costs associated with preparing Special Tax disclosure statements. h. Costs incurred in responding to public inquiries regarding the Special Taxes. i. Costs to the City, CFD, or designee thereof related to any appeal of the Special Taxes.
j. Costs associated with the release of funds from an escrow account, if any. k. Costs to the City for the issuance of Bonds authorized by the CFD that are not recovered through the Bond sale proceeds.
l. Amounts estimated to be advanced or already advanced by the City for any other administrative purposes, including attorney’s fees and other costs related to collection of the Special Taxes and commencing and pursuing to completion any foreclosure of delinquent Special Taxes. “Administrator” means the City Manager or their designee. “Annexation Parcels” means a Parcel or Parcels annexed to the CFD after formation. The Maximum Annual Facilities Special Tax and Maximum Annual Services Special Tax will be assigned to Parcels in the annexation area using the provisions of Sections 4 and 5.
“Annual Facilities Costs” means, for any Fiscal Year, the total of these:
a. Administrative expenses for such Fiscal Year.
b. Debt Service to be paid from Facilities Special Taxes. c. The amount needed to replenish the reserve fund for the Bonds to the level required under the Bond Indenture, to the extent not included in a computation of Annual Facilities Costs in a previous Fiscal Year. d. The amount needed to (1) cure any delinquencies in the payment of principal or interest on Bonds, which have occurred in the prior Fiscal Year and (2) to fund any foreseeable deficiency of the amount to be available for the payment of principal or interest on Bonds, which are expected to occur in such Fiscal Year.
e. Authorized Facilities funded on a Pay-As-You-Go Basis.

EXHIBIT 1
2017
Rate, Method of Apportionment, and Manner of Collection of Special Tax August 2, 2024
Economic & Planning Systems, Inc. (EPS) 1-3
f. Less any available earnings on the reserve fund, Facilities Special Tax funds, or any other available revenues of the CFD or the City that may be used to fund Annual Facilities Costs.
“Annual Services Costs” means, for any Fiscal Year, the total of these for the CFD:
a. Authorized Services costs to be paid from Services Special Taxes. b. Administrative Expenses for such Fiscal Year.
c. The amount needed to (1) cure any delinquencies in the payment of the Services Special Tax in the prior Fiscal Year, to the extent not otherwise included in a computation of Annual Services Costs in the current or any previous Fiscal Year, and (2) to fund any foreseeable deficiency in the payment of the Services Special Tax for that Fiscal Year which is expected to occur in such Fiscal Year, to the extent not included in a computation of Annual Services Costs in the current or any previous Fiscal Year. d. Less any available earnings on the Services Special Tax funds or any other available revenues of the CFD or the City that may be used to fund Annual Services Costs.
“Anticipated Construction Proceeds” means the amount anticipated to be available through the CFD for acquiring or constructing Authorized Facilities, which is equal to $20.0 million at formation of the CFD. This amount is increased on July 1 of the current Fiscal Year for the prior calendar year by the average increase in the ENR-CCI.
“Assessor’s Parcel Map” means an official map of the County Assessor designating Parcels by Assessor’s Parcel Number.
“Assessor's Parcel Number” means the Parcel and Parcel Number as assigned by the County Assessor on the equalized tax roll.
“Authorized Facilities” means those facilities to be financed, as identified in the resolution forming the CFD.
“Authorized Services” means those services authorized to be funded by the CFD, as defined in the resolution forming the CFD.
“Base Year” means the Fiscal Year beginning July 1, 2024, and ending June 30, 2025.
“Benefit Share” means the Maximum Annual Facilities Special Tax for a Parcel divided by the Maximum Annual CFD Special Tax Revenue.

EXHIBIT 1
2018
Rate, Method of Apportionment, and Manner of Collection of Special Tax August 2, 2024
Economic & Planning Systems, Inc. (EPS) 1-4
“Bond Indenture” means the indenture, resolution, fiscal agent agreement, or other financing document pursuant to which any Bonds are issued. “Bond Share” means the share of Outstanding Bonds assigned to a Parcel as specified in Section 8 hereof.
“Bond(s)” means any bond(s) issued by the City for the CFD under the Act and any other debt, as defined in the Act, the City incurs to further the CFD’s purposes.
“Building Permit” means a permit issued by the City for the construction of a Nonresidential Use structure.
“CFD” means the City of Stockton Community Facilities District No. 2024-1 (South Stockton Facilities and Services) of the City of Stockton, San Joaquin County, California.
“Chief Financial Officer” means the Chief Financial Officer for the City, or their designee.
“City” means the City of Stockton in San Joaquin County, California. “Council” means the City Council of the City acting for the CFD under the Act. “County” means the County of San Joaquin, California.
“County Assessor’s Parcel” means a lot or Parcel with an assigned Assessor’s Parcel Number in the maps used by the County Assessor in preparing the tax roll. “Debt Service” means the total amount of Bond principal, interest, and the scheduled sinking fund payments of the Bonds in the calendar year that begins in that Fiscal Year.
“Developed Parcel” means, in any Fiscal Year for all Nonresidential Use Parcels, all Parcels for which a Building Permit for new construction of a Nonresidential Use structure was issued before May 1 of the preceding Fiscal Year. “ENR-CCI” means the Engineering News-Record—Construction Cost Index for San Francisco in the prior calendar year, as determined on July 1 of the current Fiscal Year.
“Facilities Special Tax” means the Special Tax authorized to be levied in the CFD to fund Annual Facilities Cost. Facilities Special Taxes are shown in Attachment 1, or as to Annexation Parcels, as shown in a subsequent attachment to the RMA.
“Fiscal Year” means the period starting July 1 and ending the following June 30.

EXHIBIT 1
2019
Rate, Method of Apportionment, and Manner of Collection of Special Tax August 2, 2024
Economic & Planning Systems, Inc. (EPS) 1-5
“Full Prepayment” means the complete fulfillment of a Parcel’s Facilities Special Tax obligation, as determined by following the procedures in Section 8. “Maximum Annual Facilities Special Tax” means the greatest amount of Facilities Special Tax that can be levied against a Parcel in a given Fiscal Year, as shown in Attachment 1.
“Maximum Annual Facilities Special Tax Revenue” means the greatest amount of Facilities Special Tax revenue that can be collected in total from a group of Parcels (such as Developed Parcels) by levying the Maximum Annual Facilities Special Tax charged per Taxable Acre, as shown in Attachment 1. “Maximum Annual Services Special Tax” means the greatest amount of Services Special Tax that can be levied against a Parcel in a given Fiscal Year, as shown in Attachment 1.
“Maximum Annual Services Special Tax Revenue” means the greatest amount of Services Special Tax revenue that can be collected in total from a group of Parcels (such as Developed Parcels) by levying the Maximum Annual Special Tax charged per Taxable Acre, as shown in Attachment 1. “Maximum Annual Special Tax Revenue” means the greatest amount of revenue that can be collected in total from a group of Parcels (such as Developed Parcels) by levying the Maximum Annual Special Tax.
“Maximum Annual CFD Special Tax Revenue” means the sum of the Maximum Annual Special Tax levied on all Taxable Parcels in the CFD in a Fiscal Year.
“Mixed Use Parcel” means a Parcel or Parcels designated for a combination of Residential Uses and Nonresidential Uses.
“Nonresidential Use” means a Taxable Parcel with land uses which may include commercial (office, neighborhood, general, etc.), industrial (limited, general, etc.), and Mixed Use Parcels (Nonresidential Use portion only). “Outstanding Bonds” means the total principal amount of Bonds that have been issued and not fully repaid or legally defeased.
“Parcel” means any County Assessor’s Parcel in the CFD based on the equalized tax rolls of the County as of January 1 of each Fiscal Year. “Partial Prepayment” means the partial fulfillment of a Parcel’s Special Tax obligation, as determined by following the procedures in Section 8. “Pay-As-You-Go Basis” means the use of annual and one-time Special Tax revenues to directly fund the acquisition, construction, and improvement of Authorized Facilities on a first in-first out basis.

EXHIBIT 1
2020
Rate, Method of Apportionment, and Manner of Collection of Special Tax August 2, 2024
Economic & Planning Systems, Inc. (EPS) 1-6
“Prepayment” means the complete or partial fulfillment of a Parcel’s Special Tax obligation, as determined by following the procedures in Section 8. “Proportionately” means that the ratio of the actual Special Tax levy to the Maximum Annual Special Tax is equal for all Developed Parcels. For Undeveloped Parcels, Proportionately means that the ratio of the actual Special Tax levy to the Maximum Annual Special Tax is equal for all Undeveloped Parcels. “Public Parcel” means any Parcel that is or is intended to be publicly owned, as designated in any final map that is normally exempt from the levy of general ad valorem property taxes under California law, including public streets; schools; parks; and public drainageways, landscaping, wetlands, greenbelts, and open space.
“Remaining Facilities Costs” means the amount of Anticipated Construction Proceeds less construction proceeds from previous CFD Bond issuances and costs of Authorized Facilities funded on a Pay-As-You-Go Basis from the levy of the Special Tax.
“Remaining Facilities Cost Share” means the Remaining Facilities Costs multiplied by the Benefit Share.
“Reserve Fund” means any debt service reserve fund established pursuant to the Bonds.
“Reserve Fund Requirement” means the amount required to be held in any Reserve Fund.
“Reserve Fund Share” means the amount on deposit in any Reserve Fund, but in any event not to exceed the Reserve Fund Requirement, multiplied by the Benefit Share for a given Parcel.
“Residential Use” means a Parcel designated for residential use, such as singlefamily residential Units, residential condominiums, townhouses, or apartments.

Residential Uses Parcels are Tax-Exempt Parcels under this RMA. “RMA” means the Rate and Method of Apportionment of Special Tax. “Services Special Tax” means the Special Tax authorized to fund Annual Services Costs. Services Special Taxes are shown in Attachment 1. “Special Tax(es)” mean(s) any tax levy under the Act in the CFD. “Subdivision” or “Subdivided” means a division of a Parcel into two or more Parcels through the Subdivision Map Act process. A Subdivision also may include the merging of two or more Parcels to create new Parcels.

EXHIBIT 1
2021
Rate, Method of Apportionment, and Manner of Collection of Special Tax August 2, 2024
Economic & Planning Systems, Inc. (EPS) 1-7
“Tax Category” means the categories of taxable land uses shown in Attachment 1.
“Tax Collection Schedule” means the document prepared by the Administrator for the County Auditor-Controller to use in levying and collecting the Special Taxes each Fiscal Year.
“Tax Escalation Factor” means a factor of 2 percent by which the Maximum Annual Facilities Special Tax and Maximum Annual Facilities Special Tax Rates shall be increased annually. The Maximum Annual Services Special Tax may be increased up to 4 percent annually at the City’s discretion. The Administrator should refer to Section 4a and Section 5a for application of the Tax Escalation Factor.
“Taxable Acreage” means that area of a Parcel determined by the Administrator to become a Taxable Parcel or Parcels upon further Subdivision. An example might be that a Large Lot Parcel Map creates a Remainder Parcel that, according to Attachment 1, contains both taxable and tax-exempt uses, such as a detention basin.
“Taxable Parcel” means any Parcel that is not a Tax-Exempt Parcel. “Tax-Exempt Parcel” means a Parcel not subject to the Annual Special Tax.

Tax-Exempt Parcels include (a) Public Parcels, (b) Residential Uses, and (c) Parcels owned by the City, school districts, special districts, or the state or federal government. A Taxable Parcel that is acquired by a public agency shall remain a Taxable Parcel as per the provisions of Sections 4g and 5g.

Certain privately owned Parcels also may be exempt from the levy of Annual Special Taxes, including common areas owned by property owner associations, wetlands, detention basins, water quality ponds, and open space, as determined by the Administrator.
“Trustee” means a national banking association organized and existing under the laws of the United States.
“Undeveloped Parcel” means a Taxable Parcel that is not a Developed Parcel.

3. Duration of the Special Tax
The Facilities Special Tax will be levied and collected until Fiscal Year 2073-74.

The Services Special Tax will be levied and collected in perpetuity.

EXHIBIT 1
2022
Rate, Method of Apportionment, and Manner of Collection of Special Tax August 2, 2024
Economic & Planning Systems, Inc. (EPS) 1-8

4. Administrative Tasks for the
Facilities Special Tax
Tasks required of the Administrator for the Facilities Special Tax are discussed below:
a. Annual Special Tax Escalation. The Administrator shall increase the Maximum Annual Facilities Special Tax and Maximum Annual Facilities Special Tax Rates by the Tax Escalation Factor in all Fiscal Years following the Base Year. b. Assignment of the Maximum Annual Facilities Special Tax to Developed Parcels. Attachment 1 identifies the Maximum Annual Facilities Special Tax per Taxable Acre for Developed Parcels. The Maximum Annual Facilities Special Tax is determined by multiplying the Taxable Acreage of a Developed Parcel by the Maximum Annual Facilities Special Tax for a given Fiscal Year. c. Assignment of the Maximum Annual Facilities Special Tax to Undeveloped Parcels. Undeveloped Parcels are Tax-Exempt Parcels until the issuance of a Building Permit for Nonresidential Uses.
d. Assignment of the Maximum Annual Facilities Special Tax to Annexation Parcels. Upon annexation of property to the CFD, Parcels will be assigned Maximum Annual Facilities Special Taxes using Attachment 1. Once annexed, these annexed Parcels shall be will be subject to the same procedures for assignment of the Maximum Annual Facilities Special Tax to Developed Parcels described in Section 4b.
e. Conversion of a Tax-Exempt Parcel to a Taxable Parcel. If a Tax-Exempt Parcel is not needed for public use and is converted to a taxable use or transferred to a private owner, it shall become subject to the Facilities Special Tax. The Maximum Annual Facilities Special Tax for the newly Taxable Parcel will be determined using the provisions of Sections 4 and 6 of the RMA. f. Taxable Parcels Acquired by a Public Agency. A Taxable Parcel that is acquired by a public agency after the CFD is formed will remain subject to the applicable Special Tax unless the Special Tax obligation is satisfied pursuant to Section 53317.5 of the Government Code. An exception to this may be made if a Public Parcel, such as a park site, is relocated to a Taxable Parcel, in which case the previously Tax-Exempt Parcel of comparable acreage becomes a Taxable Parcel and the Maximum Annual Facilities Special Tax from the previously Taxable Parcel is transferred to the new Taxable Parcel. This trading of a Parcel from a Taxable Parcel to a Public Parcel will be permitted to the extent there is no net loss in Maximum Annual CFD Special Tax Revenue, and the transfer is agreed to by the owners of the Parcels involved in the transfer and the CFO.

EXHIBIT 1
2023
Rate, Method of Apportionment, and Manner of Collection of Special Tax August 2, 2024
Economic & Planning Systems, Inc. (EPS) 1-9

5. Administrative Tasks for the
Services Special Tax
Tasks required of the Administrator for the Services Special Tax are discussed below:
a. Annual Special Tax Escalation. The Administrator shall increase the Maximum Annual Services Special Tax and Maximum Annual Special Services Tax Rates by the Tax Escalation Factor in all Fiscal Years following the Base Year. b. Assignment of the Maximum Annual Services Special Tax to Developed Parcels. Attachment 1 identifies the Maximum Annual Services Special Tax per Taxable Acre for Developed Parcels. The Maximum Annual Services Special Tax is determined for a Developed Parcel by multiplying the Taxable Acres by the Maximum Annual Services Special Tax for a given Fiscal Year. c. Assignment of the Maximum Annual Services Special Tax to Undeveloped Parcels. Undeveloped Parcels are Tax-Exempt Parcels until the issuance of a Building Permit for Nonresidential Uses.
d. Assignment of the Maximum Annual Services Special Tax to Annexation Parcels. Upon annexation of property to the CFD, Parcels will be assigned Maximum Annual Services Special Taxes using Attachment 1. Once annexed, these annexed Parcels will be subject to the same procedures for assignment of the Maximum Annual Services Special Tax to Developed Parcels described in Section 5b. d.
e. Conversion of a Tax-Exempt Parcel to a Taxable Parcel. If a Tax-Exempt Parcel is not needed for public use and is converted to a taxable use or transferred to a private owner, it shall become subject to the Services Special Tax. The Maximum Annual Services Special Tax for the newly Taxable Parcel will be determined using the provisions of Sections 5 and 6 of the RMA. f. Taxable Parcels Acquired by a Public Agency. A Taxable Parcel that is acquired by a public agency after the CFD is formed will remain subject to the applicable Special Tax unless the Special Tax obligation is satisfied pursuant to Section 53317.5 of the Government Code. An exception to this may be made if a Public Parcel, such as a park site, is relocated to a Taxable Parcel, in which case the previously Tax-Exempt Parcel of comparable acreage becomes a Taxable Parcel and the Maximum Annual Services Special Tax from the previously Taxable Parcel is transferred to the new Taxable Parcel. This trading of a Parcel from a Taxable Parcel to a Public Parcel will be permitted to the extent there is no net loss in Maximum Annual CFD Special Tax Revenue, and the transfer is agreed to by the owners of the Parcels involved in the transfer and the CFO.

EXHIBIT 1
2024
Rate, Method of Apportionment, and Manner of Collection of Special Tax August 2, 2024
Economic & Planning Systems, Inc. (EPS) 1-10

6. Assignment of the Maximum Annual
Special Tax
a. Classification of Parcels. For purposes of the next Fiscal Year tax levy, by June 30 of each Fiscal Year, using the Definitions in Section 2, the Parcel records of the Assessor’s secured tax roll as of January 1, and other City development approval records, the Administrator shall cause:

1. Each Parcel to be classified as a Taxable Parcel or Tax-Exempt Parcel.

2. Each Parcel to be classified as a Developed Parcel or an Undeveloped Parcel.
b. Assignment of the Maximum Annual Special Tax to Taxable Parcels. The Maximum Annual Special Tax will be assigned to each Taxable Parcel each Fiscal Year using the procedures (not all steps may be applicable for each such Parcel) in Sections 4 and 5.

7. Calculating Annual Special Taxes
This section discusses the levy of the Facilities Special Tax and the Services Special Tax. Collectively, these Special Taxes are included in the discussion of the assignment of the Maximum Annual Special Taxes. The Administrator will compute the Annual Facilities Costs and Annual Services Costs and determine the annual Special Tax levy for each Taxable Parcel based on the assignment of the Special Tax in Sections 4, 5, and 6. The Administrator then will determine the tax levy for each Taxable Parcel using the following process.

Facilities Special Tax Levy
a. Compute the Annual Facilities Costs using the definition of Annual Facilities Costs in Section 2.
b. For all Taxable Parcels, calculate the Facilities Special Tax levy for each using the following steps:

Step 7.b.1. The Facilities Special Tax shall be levied Proportionately on all Developed Parcels up to the amount of Annual Facilities Cost or up to 100 percent of the Maximum Annual Facilities Special Tax Revenue for all Developed Parcels, whichever is less.

Services Special Tax Levy
a. Compute the Annual Services Cost using the definition of Annual Services Costs in Section 2.

EXHIBIT 1
2025
Rate, Method of Apportionment, and Manner of Collection of Special Tax August 2, 2024
Economic & Planning Systems, Inc. (EPS) 1-11
b. For all Taxable Parcels, calculate the Services Special Tax levy for each using the following steps:

Step 7.b.1. The Services Special Tax shall be levied Proportionately on all Developed Parcels up to the amount of Annual Services Cost or up to 100 percent of the Maximum Annual Services Special Tax Revenue for all Developed Parcels, whichever is less.
c. Sum the amounts calculated for the Facilities Special Tax levy and the Services Special Tax levy computed above.
d. Levy on each Taxable Parcel the amount calculated above. e. Prepare the Tax Collection Schedule and, unless an alternative method of collection has been selected pursuant to Section 10, send it to the County Auditor requesting that it be placed on the general, secured property tax roll for the Fiscal Year. The Tax Collection Schedule will be sent no later than the date required by the County Auditor for such inclusion.

The Administrator will make every effort to calculate the Special Tax correctly for each Parcel. It will be the burden of the taxpayer to identify any errors in determining which Parcels are subject to the tax and their Special Tax assignments.

8. Prepayment of the Special Tax
Obligation
A property owner may permanently or partially satisfy the Maximum Annual Facilities Special Tax for a Taxable Parcel by a Full or Partial Prepayment, as permitted under Government Code Section 53344. Prepayments must be made by May 1 to have the Prepayment reflected in the following Fiscal Year’s Special Tax levy. Prepayment is permitted only under the following conditions:
• The City determines that Prepayment of the Facilities Special Tax does not jeopardize its ability to make timely payments of Debt Service on Outstanding Bonds.
• The landowner prepaying the Special Tax on a Parcel has paid any delinquent Special Tax and penalties on that Parcel before Prepayment. • Amounts in the Reserve Fund are equal to or greater than the Reserve Fund Requirement.
• The City determines that the Prepayment will not jeopardize its ability to make timely payments of Debt Service and maintain a 110 percent Maximum EXHIBIT 1
2026
Rate, Method of Apportionment, and Manner of Collection of Special Tax August 2, 2024
Economic & Planning Systems, Inc. (EPS) 1-12
Annual Facilities Special Tax coverage of Debt Service, plus Administrative Expenses in all years where there will be Outstanding Bonds.

When permitted, the Administrator shall calculate Full Prepayments using the following steps:
a. The Full Prepayment amount before any issuance of CFD Bonds shall be calculated using the following procedures:

Step 8.a.1. Determine the Maximum Annual Facilities Special Tax for the Developed Parcel for which the Special Tax is to be prepaid using the provisions of Sections 4 and 6.

Step 8.a.2. Divide the amount from Step 8.a.1. by the Maximum Annual Facilities Special Tax Revenue to determine the Benefit Share for the Full Prepayment Parcel.

Step 8.a.3. Multiply the Remaining Facilities Costs, as increased by ENR-CCI from the Base Year, by the Benefit Share to determine the Full Prepayment amount.

Step 8.a.4. Add to the amount determined in Step 8.a.3. any costs to the City, including the costs of any City consultants, associated with the preparation of the Full Prepayment calculation.
b. The Full Prepayment amount after all issuances of CFD Bonds shall be calculated using the following procedures:

Step 8.b.1. Determine the Maximum Annual Facilities Special Tax for the Parcel for which the Special Tax is to be prepaid using the provisions of Sections 4 and 6.

Step 8.b.2. Divide the amount from Step 8.b.1. by the Maximum Annual Facilities Special Tax Revenue to determine the Benefit Share for the Parcel.

Step 8.b.3. Multiply the Benefit Share by the total amount of Outstanding Bonds to determine the Bond Share for the Full Prepayment Parcel.

Step 8.b.4. Multiply the Benefit Share by the Remaining Facilities Costs, as increased by ENR-CCI from the Base Year, to determine the Remaining Facilities Cost Share for the Full Prepayment Parcel.

Step 8.b.5. Sum the Bond Share and Remaining Facilities Cost Share from Steps 8.b.3. and 8.b.4.

EXHIBIT 1
2027
Rate, Method of Apportionment, and Manner of Collection of Special Tax August 2, 2024
Economic & Planning Systems, Inc. (EPS) 1-13
Step 8.b.6. Determine the total amount of Bonds to be called by rounding the amount summed in Step 8.b.5. down to the nearest $5,000.

Step 8.b.7. Multiply the amount calculated in Step 8.b.6. by the call premium for the next available call date.

Step 8.b.8. Determine the Reserve Fund Share for the Full Prepayment Parcel by multiplying the Reserve Fund Requirement by the Benefit Share.

Step 8.b.9. Reduce the amount calculated in Step 8.b.5. by the amount of the Reserve Fund Share in Step 8.b.8., provided the amount in the Reserve Fund equals the Reserve Fund Requirement after reduction.

Step 8.b.10. Determine the Full Prepayment amount by adding to the amount calculated in Step 8.b.9. any fees, call premiums, and interest to the next Bond call date not covered by Special Taxes already levied and collected for the prepaying Parcel, and expenses incurred by the CFD in connection with the Full Prepayment calculation or the application of the proceeds of the Full Prepayment to the call of Outstanding Bonds.

Step 8.b.11. If the Special Taxes already have been levied but not collected, the Parcel shall not become a Full Prepayment Parcel until the owner of the Parcel has paid the Special Taxes included on the current property tax bill in addition to the Full Prepayment amount.
c. Partial Prepayments are allowed only for Parcels owned by a property owner before the issuance of the initial Building Permit. A Partial Prepayment can occur only once per Assessor’s Parcel. The City may allow a Partial Prepayment if it is determined that the Partial Prepayment will not jeopardize its ability to make timely payments of Debt Service and maintain a 110-percent Maximum Special Tax coverage of Debt Service, plus Administrative Expenses in all years where there will be Outstanding Bonds.

Partial Prepayments can occur only after the Final Bond Sale. Partial Prepayments will be calculated as described below:

The amount of any Partial Prepayment must be either 25 percent or 50 percent of the Full Prepayment amount determined in Step 8.b.10.

A Partial Prepayment may be made in an amount equal to 25 percent or 50 percent of the Full Prepayment desired by the party making a Partial Prepayment, except that the full amount of Administrative fees and expenses determined in Step 8.b.10. shall be included in the Partial Prepayment. The Maximum Annual Special Tax that can be levied on a Parcel after a Partial EXHIBIT 1
2028
Rate, Method of Apportionment, and Manner of Collection of Special Tax August 2, 2024
Economic & Planning Systems, Inc. (EPS) 1-14
Prepayment is made is equal to the Maximum Annual Special Tax that could have been levied before the Prepayment, reduced by the percentage of the Full Prepayment that the Partial Prepayment represents, all as determined by or at the direction of the Finance Director. For example, if the Partial Prepayment is equal to 25 percent, the Maximum Annual Special Tax applied to the Parcel would be 75 percent of the Maximum Annual Special Tax.

9. Interpretation, Application, and
Appeal of Special Tax Formula and
Procedures
Any taxpayer who feels the amount of the Special Tax assigned to a Parcel is in error may file a notice with the Finance Director appealing the levy of the Special Tax. The Finance Director then will promptly review the appeal and, if necessary, will meet with the applicant. If the Finance Director verifies that the tax should be modified or changed, the Special Tax levy will be corrected and, if applicable in any case, a credit or refund will be granted.

Interpretations may be made by the City, without Resolution or Ordinance of the Council, for purposes of clarifying any vagueness or ambiguity as it relates to the Special Tax rate, the method of apportionment, the classification of properties, or any definition applicable to the CFD.

Without Council approval, the Finance Director may make minor, non-substantive administrative and technical changes to the provisions of this RMA that do not materially affect the rate, method of apportionment, or manner of collection of the Special Tax for purposes of administrative efficiency or convenience or to comply with new applicable federal, state, or local law.

The City, upon request of an owner of land in the CFD that is not a Developed Parcel, also may amend this RMA in any manner acceptable to the City, without Resolution or Ordinance of the Council, upon the affirmative vote of such owner and without the vote of owners of any other land in the CFD, provided such amendment only affects such owner’s land and does not reduce the total Maximum Annual Special Tax Revenue for the CFD.

10. Manner of Collection
The Special Tax will be collected in the same manner and at the same time as ad valorem property taxes, provided, however, the Administrator or its designee may directly bill the Special Tax and may collect the Special Tax at a different time, such as on a monthly or other periodic basis, or in a different manner, if necessary, to meet the City’s financial obligations.

EXHIBIT 1
2029
DRAFT
Attachment 1
City of Stockton CFD No. 2024-1
(South Stockton Facilities and Services)
Maximum Annual Special Tax per Acre (Base Year 2024-25) Maximum Annual Maximum Annual Total
Facilities Special Tax Services Special Tax Maximum Annual Land Use Category Per Acre Per Acre Special Tax
[1] [2]
per acre per acre per acre
Commercial $650 $1,637 $2,287
Industrial $650 $1,637 $2,287
Undeveloped $0 $0 $0
"att1"
[1] The Maximum Annual Facilities Special Tax will escalate by 2-percent each Fiscal Year following the Base Year.
[2] The Maximum Annual Services Special Tax will escalate by 4-percent each Fiscal Year following the Base Year.

Prepared by EPS 10/2/2024 Z:\Shared\Projects\SAC\232000\232107 Stockton Mariposa Road Services CFD\Models\232107 Model Stress 15 cents EXHIBIT 1
2030
CITY CLERK CITY CLERK'S MAP FILING STATEMENT CITY CLERK'S MAP STATEMENT BY: RECORDER'S STATEMENT 0 1000 2000 4000 SCALE: 1"=2000' CITY OF STOCKTON SAN JOAQUIN COUNTY CALIFORNIA 1025 Creekside Ridge Drive, Suite 150, Roseville, CA 95678 (916) 773-1189 SHEET 1 OF 1 18529.CFD OCTOBER 2024 SAN JOAQUIN COUNTY, CALIFORNIA CITY OF STOCKTON CITY CLERK SAN JOAQUIN COUNTY, CALIFORNIA CITY OF STOCKTON PROPOSED AMENDED BOUNDARY MAP COUNTY OF SAN JOAQUIN PROPOSED CFD BOUNDARY LEGEND DOCUMENT NO. FEE: COUNTY RECORDER N AREAS OF FUTURE ANNEXATION BOOK ____ OF COMMUNITY FACILITIES DISTRICT, PAGE ____ FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY OF STOCKTON, COUNTY OF SAN JOAQUIN, STATE OF CALIFORNIA THIS _______ DAY OF ____________ 2024. I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING THE PROPOSED BOUNDARIES OF COMMUNITY FACILITIES DISTRICT NO. 2024-1 (SOUTH STOCKTON FACILITIES AND SERVICES), CITY OF STOCKTON, COUNTY OF SAN JOAQUIN, STATE OF CALIFORNIA, WAS APPROVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AT A REGULAR MEETING THEREOF, HELD ON THE DAY OF , 2024 BY IT'S RESOLUTION NO. . FILED THIS DAY OF , 2024, AT THE HOUR OF O'CLOCK M. IN BOOK OF MAPS OF COMMUNITY FACILITIES DISTRICT, AT PAGE _____ IN THE OFFICE OF THE COUNTY RECORDER OF THE COUNTY OF SAN JOAQUIN, STATE OF CALIFORNIA. INTERSTATE 5 ARCH-AIRPORT RD ARCH RD HIGHWAY 99
HIGHWAY 99

S AIRPORT WAY

FRENCH CAMP RD STOCKTON METROPOLITAN AIRPORT INDUSTRIAL DR FRENCH CAMP STOCKTON CITY LIMIT STOCKTON CITY STOCKTON CITY LIMIT LIMIT STOCKTON CITY LIMIT

NEWCASTLE RD

S AUSTIN RD
ZEPHYR ST 12 3 4 5 CITY OF STOCKTON COMMUNITY FACILITIES DISTRICT NO. 2024-1 (SOUTH STOCKTON FACILITIES AND SERVICES) NOTE: THIS MAP AMENDS THE BOUNDARY MAP FOR COMMUNITY FACILITIES DISTRICT NO. 2024-1 (SOUTH STOCKTON FACILITIES AND SERVICES), CITY OF STOCKTON, SAN JOAQUIN COUNTY, STATE OF CALIFORNIA, PRIOR RECORDED AT BOOK 7 OF MAPS OF ASSESSMENT AND COMMUNITY FACILITIES DISTRICTS AT PAGE 86, IN THE OFFICE OF THE COUNTY RECORDER FOR THE COUNTY OF SAN JOAQUIN, STATE OF CALIFORNIA.”

EXHIBIT
1 2031
Exhibit 2

EXHIBIT 2

CITY OF STOCKTON
COMMUNITY FACILITIES DISTRICT NO. 2024-1
(SOUTH STOCKTON FACILITIES AND SERVICES)

LIST OF AUTHORIZED FACILITIES AND SERVICES
The authorized facilities and services to be funded from the levy and collection of annual special taxes shall consist of those items set forth below, in addition to the costs associated with collecting and administering the special taxes and annually administering the CFD.

Authorized Facilities
The authorized facilities to be funded for the Community Facilities District (CFD) No. 2024-1 (South Stockton Facilities and Services) include these:

1. Fire station facilities, including, but not limited to, land acquisition, acquisition of furnishings, equipment, apparatus, communications equipment, and other items required for a fully staffed fire station facility.

Authorized Services
The authorized services to be funded for the CFD include these:

1. Fire protection and suppression services, and ambulance and paramedic services.

Formation, Administrative, and Incidental Expenses
In addition to the above facilities and services, other expenses incidental to the above and authorized by the Mello-Roos Community Facilities Act of 1982, including, but not limited to, the cost of planning, permitting, and designing the facilities; land acquisition and easement payments for the facilities; project management; construction staking; engineering studies and reports; utility relocation and demolition costs incidental to construction of the facilities, wetland/species mitigation purchase.

In addition, costs eligible to be financed by the CFD shall include all costs associated with the formation and ongoing administration of the CFD and issuance of bonds; determination of the amount of taxes and collection of taxes; inspection, plan check and other costs related to acceptance of the facilities by the City, payment of taxes; and any other costs incurred to carry out the authorized purposes of the CFD.

EXHIBIT 2
2032
Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION DETERMINING NECESSITY TO INCUR BONDED INDEBTEDNESS

FOR A COMMUNITY FACILITIES DISTRICT

CITY OF STOCKTON
COMMUNITY FACILITIES DISTRICT NO. 2024-1
(SOUTH STOCKTON FACILITIES AND SERVICES)
On September 17, 2024, pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing with section 53311, of the California Government Code (the “Act”), this City Council adopted Resolution No. 2024-09-17-1502-01 (the “Resolution of Intention”), stating its intention to form “City of Stockton Community Facilities District No. 2024-1 (South Stockton Facilities and Services) (the “CFD”) and establish a future annexation area related thereto entitled “City of Stockton Community Facilities District No. 2024-1 (South Stockton Facilities and Services) (Future Annexation Area) (the “Future Annexation Area”); and On September 17, 2024, this City Council also adopted Resolution No. 2024-09- 17-1502-02 (the “Resolution of Intention to Incur Indebtedness”) stating its intention to incur bonded indebtedness (as contemplated by the Act) within the boundaries of the CFD for the purpose of financing the costs of certain facilities specified in the Resolution of Intention; and
This City Council has held a noticed public hearing as required by the Act about the determination to proceed with the formation of the CFD and establishment of the Future Annexation Area, the provision of certain public facilities and public services by the CFD and the rate and method of apportionment of the special tax to be levied within the CFD to pay the cost of the facilities and the services, the principal and interest on proposed bonded indebtedness in the CFD and the administrative costs of the City relative to the CFD; and
Subsequent to the public hearing, this City Council adopted a resolution titled “RESOLUTION TO FORM A COMMUNITY FACILITIES DISTRICT, ESTABLISH A

FUTURE ANNEXATION AREA AND TO LEVY A SPECIAL TAX THEREIN TO FINANCE

PUBLIC SERVICES AND THE ACQUISITION AND CONSTRUCTION OF CERTAIN PUBLIC FACILITIES IN AND FOR SUCH DISTRICT” (the “Resolution of Formation”); and
This City Council has also held a noticed public hearing as required by the Act relative to the matters material to the questions set forth in the Resolution of Intention to Incur Indebtedness; and
2033
No written protests with respect to the matters material to the questions set forth in the Resolution of Intention to Incur Indebtedness have been filed with the City Clerk; now, therefore,

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:

1. The foregoing recitals are true and correct.

2. In order to finance the costs of the Facilities, including, but not limited to, the costs of issuing and selling bonds to finance all or a portion of the Facilities and the costs of the City in establishing and administering the CFD, it is necessary for the City to incur bonded indebtedness in one or more series on behalf of the CFD in an aggregate amount not to exceed $50,000,000.

3. The whole of the CFD shall pay for the bonded indebtedness issued by the City for the CFD through the levy of the facilities special tax within the CFD. The tax shall be apportioned in accordance with the formula for set forth in Exhibit 2 to the Resolution of Formation.

4. Subject to Section 2 above, bonds (as contemplated by the Act) in the aggregate maximum amount not to exceed $50,000,000 (the “Authorization”) are hereby authorized for the CFD subject to voter approval. Bonds subject to this limit shall only include indebtedness evidenced by bonds or notes and shall not include bonds described in Section 53364.2(e) of the Act. The bonds for the CFD may be issued in one or more series and mature and bear interest at such rate or rates, payable semiannually or in such other manner, all as this City Council or its designee shall determine, at the time or times of sale of such bonds; provided, however, that the interest rate or rates shall not to exceed the maximum interest rate permitted by applicable law at the time of sale of the bonds and the bonds or any series thereof shall have a maximum term of not to exceed 40 years.

In the event a parcel or parcels is annexed into the CFD from the Future Annexation Area as a separate improvement area (each, an “Improvement Area”) pursuant to the unanimous consent process, the unanimous consent of the owner(s) (each, a “Unanimous Consent”) shall include an authorization to incur bonded indebtedness for such Improvement Area in a maximum amount specified, which shall reduce the Authorization applicable to any other portion of the CFD by such amount. Such allocation may be made without any requirement for further public hearings, City Council action or other additional proceedings, and the City shall include the Unanimous Consent in the records for the CFD. The whole of each such Improvement Area shall pay for the bonded indebtedness and other debt issued by the City for such Improvement Area through the levy of the facilities special tax. The tax shall be apportioned in accordance with the formula approved via Unanimous Consent.
2034

5. The proposition of the City incurring the bonds for the CFD as herein authorized shall be submitted to the qualified electors of the CFD and shall be consolidated with elections on the proposition of levying special taxes within the CFD and the establishment of an appropriations limit for the CFD pursuant to Section 53353.5 of the Act. The time, place and further particulars and conditions of such election shall be as specified by separate resolution of this City Council. In accordance with Section 53350 of the Act, approval of a limit for the incurrence of bonded indebtedness and other debt for any Improvement Area established in the future shall be submitted by the owner or owner(s) of parcels in such Improvement Area and specified in a Unanimous Consents, without any other proceedings or hearings required.

6. This Resolution shall take effect upon its adoption.

7. The City Manager is authorized to take such further actions as are necessary and appropriate to carry out the purpose and intent of this resolution.

PASSED, APPROVED, and ADOPTED November 12, 2024 .

KEVIN J. LINCOLN II
Mayor of the City of Stockton
ATTEST:

KATHERINE ROLAND, CMC, CPMC
Interim City Clerk of the City of Stockton
2035
Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION CALLING SPECIAL ELECTION FOR A COMMUNITY FACILITIES

DISTRICT

CITY OF STOCKTON
COMMUNITY FACILITIES DISTRICT NO. 2024-1
(SOUTH STOCKTON FACILITIES AND SERVICES)
Pursuant to the Mello-Roos Community Facilities Act of 1982, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing with section 53311, of the California Government Code (the “Act”), this City Council has adopted a resolution titled “RESOLUTION TO

FORM A COMMUNITY FACILITIES DISTRICT, ESTABLISH A FUTURE ANNEXATION

AREA AND TO LEVY A SPECIAL TAX THEREIN TO FINANCE PUBLIC SERVICES

AND THE ACQUISITION AND CONSTRUCTION OF CERTAIN PUBLIC FACILITIES IN AND FOR SUCH DISTRICT” (the “Resolution of Formation”), forming the “City of Stockton Community Facilities District No. 2024-1 (South Stockton Facilities and Services)” (the “CFD”) and establishing a future annexation area related thereto entitled “City of Stockton Community Facilities District No. 2024-1 (South Stockton Facilities and Services) (Future Annexation Area) (the “Future Annexation Area”), authorizing the levy of special taxes on property within the CFD and preliminarily establishing an appropriations limit for the CFD; and
This City Council has also adopted a resolution titled “RESOLUTION

DETERMINING NECESSITY TO INCUR BONDED INDEBTEDNESS FOR A COMMUNITY FACILITIES DISTRICT” (the “Resolution Determining Necessity”), determining the necessity to incur bonded indebtedness in the maximum aggregate principal amount of $50,000,000 upon the security of the facilities special tax to be levied within the CFD pursuant to the Act; and
Pursuant to the provisions of the Resolution of Formation and the Resolution Determining Necessity, the propositions of the levy of the special taxes, the establishment of the appropriations limit and the incurring of the bonded indebtedness shall be submitted to the qualified electors of the CFD as required by the provisions of the Act; now, therefore,

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:

1. Pursuant to sections 53326, 53351, and 53325.7 of the Act, the issues of the levy of the special tax, the incurring of bonded indebtedness and the establishment 2036
of the appropriations limit shall be submitted to the qualified electors (as defined below) of the CFD at an election called therefor as provided below.

2. This Council hereby finds that fewer than 12 persons have been registered to vote within the territory of the CFD for each of the 90 days preceding the close of the public hearings heretofore conducted and concluded by this Council for the purposes of these proceedings. Accordingly, and pursuant to section 53326 of the Act, this Council finds that, for these proceedings, the qualified electors for the CFD are the landowners within the CFD and that the vote shall be by such landowners or their authorized representatives, each having one vote for each acre or portion thereof such landowner owns in the CFD not exempt from the special tax as of the close of the public hearings.

3. This Council hereby calls a special election in the CFD to consider the measures described in section 1 above, which election shall be held on November 12, 2024, and the results thereof canvassed at the meeting of this Council on November 12, 2024. The City Clerk is hereby designated as the official to conduct the election and to receive all ballots until 5:30 p.m. on the election date. It is hereby acknowledged that the City Clerk has on file the Resolution of Formation, a certified map of the boundaries of the CFD, and a sufficient description to allow the City Clerk to determine the electors of the CFD. Pursuant to section 53327 of the Act, the election shall be conducted by messenger or mail-delivered ballot pursuant to section 4000 of the California Elections Code, except as modified by waivers of the electors, and except that sections 53326 and 53327 of the Act shall govern for purposes of determining the date of election.

4. As authorized by section 53353.5 of the Act, the three propositions described in section 1 above shall be combined into a single ballot measure, the form of which is attached hereto as Exhibit 1 and by this reference incorporated herein and the form of ballot is hereby approved. The City Clerk is hereby authorized and directed to cause a ballot, in substantially the forms of Exhibit 1, to be delivered to each of the qualified electors of the CFD. Each ballot shall indicate the number of votes to be voted by the respective landowner to which the ballot pertains. This Council hereby finds that the provisions of section 53327 and 53327.5 of the Act requiring that each ballot be accompanied by all supplies and written instructions necessary for the use and return of the ballot and the envelope to be used to return the ballot shall be enclosed with the ballot, return postage prepaid, and containing representations and requirements as to certain election procedures are for the protection of the qualified electors of the CFD and there is on file with the City Clerk a written waiver such procedures and requirements executed by all of the qualified electors of the CFD, all electors of which have requested formation of the CFD and levy of special taxes. Accordingly, this Council finds and determines that the qualified electors have been fully apprised of and have agreed to the conduct of the election without such procedures and requirements and have thereby been fully protected in these proceedings upon distribution and return of the ballots in the manner deemed appropriate by the City and all of the electors.
2037

5. This Council hereby further finds that the provisions of section 53326 of the Act requiring a minimum of 90 days following the adoption of the Resolution of Formation to elapse before the special election are for the protection of the qualified electors of the CFD. There is on file with the City Clerk a written waiver executed by all of the qualified electors of the CFD allowing for a shortening of the time for the special election to expedite the process of formation of the CFD and waiving any requirement for notice, analysis and arguments in connection with the election. Accordingly, this Council finds and determines that the qualified electors have been fully apprised of and have agreed to the shortened time for the election and waiver of analysis and arguments and have thereby been fully protected in these proceedings. This Council also finds and determines that the City Clerk has concurred in the shortened time for the election. Analysis and arguments with respect to the ballot measures are hereby waived, as provided in section 53327 of the Act.

6. The City Council hereby finds that the proposed issuance of bonds and other debt for the CFD constitutes a “local bond measure” within the meaning of sections 53410, et seq. of the California Government Code. As a result, the bond measure shall include the propositions set forth above and the following: (a) the specific purpose of the bonds and other debt shall be as set forth in the propositions; (b) any proceeds received from the sale of any bonds and other debt shall be applied only to the purposes set forth in the propositions; (c) the proceeds of any bonds and other debt shall be deposited into special accounts to be created therefor as part of the issuance of the bonds and other debt; and (d) the City shall cause a report to be prepared annually under section 53411 of the Government Code.

Under section 50075.1 of the Government Code, the following accountability provisions shall apply to the special taxes: (a) the provision and/or acquisition of the Facilities and the Services, the payment of debt service on the bonds and other debt and the incidental costs thereof, all as defined in the Resolution of Formation, shall constitute the specific single purpose; (b) the proceeds of the special tax shall be applied only to the specific purposes identified in (a) above; (c) there shall be created special account(s) or funds(s) into which the proceeds shall be deposited; and (d) there shall be caused to be prepared an annual audit and report of the CFD.

7. This Resolution shall take effect upon its adoption. //
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8. The City Manager is authorized to take such further actions as are necessary and appropriate to carry out the purpose and intent of this resolution.

PASSED, APPROVED, and ADOPTED November 12, 2024 .

KEVIN J. LINCOLN II
Mayor of the City of Stockton
ATTEST:

KATHERINE ROLAND, CMC, CPMC
Interim City Clerk of the City of Stockton
2039
Exhibit 1

EXHIBIT 1

CITY OF STOCKTON
Community Facilities District No. 2024-1
(South Stockton Facilities and Services)

OFFICIAL BALLOT

SPECIAL TAX ELECTION
This ballot is for a special, landowner election. You must return this ballot to the office of the City Clerk of the City of Stockton no later than the hour of 5:30 p.m. on November 12, 2024, either by mail or in person. The City Clerk’s office is located at 425 N. El Dorado Street, Stockton, California 95202. If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of Stockton and obtain another.

To vote, mark a cross (X) on the voting line after the word “YES” or after the word “NO”. All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void.

The estimated amount of money to be raised annually by this measure through the facilities special tax is $131,223.00 for fiscal year 2024-25, assuming full build-out, and escalating at 2% annually thereafter, for the duration of the CFD as set forth in the rate and method of apportionment of special taxes for the District

BALLOT MEASURE
Shall the measure pursuant to which (i) the City of Stockton shall incur indebtedness and issue bonds up to $50,000,000 on behalf of its Community Facilities District No. 2024-1 (South Stockton Facilities and Services) (“CFD”), to acquire and/or construct facilities set forth in the list of authorized facilities for the CFD attached to the resolution of formation and incorporated by this reference herein and pay for the costs of issuing the bonds and related expenses; (ii) a special tax for facilities shall be levied at a rate of $650/acre, subject to annual escalation, through Fiscal Year 2073-74, raising $131,223 in Fiscal Year 2024-25 (assuming full build-out of the CFD), to pay for the principal and interest upon such bonds, to pay the costs of the City in administering the CFD, and to pay for the costs of acquiring and/or constructing said facilities in accordance with the rate and method of apportionment of special taxes for the CFD attached to the resolution of formation and incorporated by this reference herein; (iii) a special tax for services shall be levied at a rate of $1,637/acre, subject to annual escalation, so long as the services are provided, raising 330,319 in Fiscal Year 2024-25 (assuming full build-out of the CFD), to pay for the services and the costs of the City in administering the CFD in accordance with the rate and method of apportionment of special taxes for the CFD attached to the resolution of formation and incorporated by this reference herein; and (iv) the annual appropriations limit of the CFD shall initially be $50,000,000, subject to escalation, be adopted?
YES
________
NO
________
The undersigned is the authorized representative of the landowner and is the person legally authorized and entitled to cast this ballot on behalf of the landowner. By execution in the space provided below, the undersigned certifies that the landowner certifies that such owner has initiated, requested and/or reviewed all the CFD provisions and proceedings leading up to this election, including the list of authorized facilities, the bond indebtedness limit for the CFD, and the rate and method of apportionment of special taxes, which includes the tax rates and duration of the special tax to be placed on the landowner’s property. The undersigned has waived (i) the time limit pertaining to the conduct of the election, (ii) any requirement for analysis and arguments EXHIBIT 1
2040
Exhibit 1

with respect to the ballot measure, and (iii) any irregularity in the proceedings that may be claimed as a result of the application of such waivers.

Further, the undersigned, on behalf of the landowner, hereby knowingly, voluntarily and intelligently waives any and all defects in any notice, ballot, or procedure related to the conduct of the election, whether known or unknown (except the right to vote and to have the ballots fairly counted), and states that the election is being expedited at the particular instance and request of the landowner.

Number of Acres Owned: _____
Number of Votes: ___
Landowner: ________________,
a [state] [type of entity]
By:

Name:

Title:

EXHIBIT 1
2041
Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION DECLARING RESULTS OF A SPECIAL ELECTION FOR A

COMMUNITY FACILITIES DISTRICT AND DIRECTING RECORDING OF NOTICE OF

SPECIAL TAX LIEN

CITY OF STOCKTON
COMMUNITY FACILITIES DISTRICT NO. 2024-1
(SOUTH STOCKTON FACILITIES AND SERVICES)
Pursuant to the Mello-Roos Community Facilities Act of 1982, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing with section 53311, of the California Government Code (the “Act”), this City Council has adopted a resolution titled “RESOLUTION TO

FORM A COMMUNITY FACILITIES DISTRICT AND TO LEVY A SPECIAL TAX

THEREIN TO FINANCE PUBLIC SERVICES AND THE ACQUISITION AND CONSTRUCTION OF CERTAIN PUBLIC FACILITIES IN AND FOR SUCH DISTRICT” (the “Resolution of Formation”), ordering the formation of the “City of Stockton Community Facilities District No. 2024-1 (South Stockton Facilities and Services)” (the “CFD”), authorizing the levy of special taxes on property within the CFD, and preliminarily establishing an appropriations limit for the CFD; and
This City Council has also adopted a resolution titled “RESOLUTION

DETERMINING THE NECESSITY TO INCUR BONDED INDEBTEDNESS FOR A COMMUNITY FACILITIES DISTRICT” (the “Resolution of Necessity”), determining the necessity to incur bonded indebtedness in the maximum aggregate principal amount of $50,000,000 upon the security of the special tax to be levied within the CFD pursuant to the Act; and
Under the provisions of the Resolution of Formation, the Resolution of Necessity and a “RESOLUTION CALLING SPECIAL ELECTION FOR A COMMUNITY FACILITIES DISTRICT” (the “Election Resolution”) adopted by this City Council with respect to the CFD, the propositions of the levy of the special tax, the establishment of the appropriations limit and the incurring of the bonded indebtedness were submitted to the qualified electors of the CFD as required by the provisions of the Act; and Pursuant to the terms of the Election Resolution, which are by this reference incorporated herein, the special election has been held in the CFD and the City Clerk has on file a Canvass and Statement of Results of Election (the “Canvass”) a copy of which is attached hereto as Exhibit 1; and
This City Council has reviewed the Canvass, finds it appropriate and wishes to complete its proceedings for the CFD; now, therefore,
2042

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:

1. The foregoing recitals are all true and correct.

2. The issues presented at the special election were the levy of a special tax within the CFD, the incurring of a bonded indebtedness for the CFD, and the approval of an initial annual appropriations limit for the CFD, subject to escalation, all pursuant to the Resolution of Formation and the Resolution of Necessity.

3. The Council hereby approves the Canvass and finds that it shall be a permanent part of the record of its proceedings for the CFD. Pursuant to the Canvass, the issues presented at the special election were approved by the qualified electors of the CFD by more than two-thirds (2/3) of the votes cast at the special election.

4. Pursuant to the voter approval, the CFD is hereby declared to be fully formed with the authority to levy the special taxes, to incur the approved bonded indebtedness and to have the established initial appropriations limit, all as heretofore provided in these proceedings and in the Act. It is hereby found that all prior proceedings and actions taken by this City Council with respect to the CFD were valid and in conformity with the Act.

5. The City Clerk is hereby directed to complete, execute and cause to be recorded in the office of the County Recorder of the County of San Joaquin a notice of special tax lien for the CFD in the form required by the Act, such recording to occur no later than fifteen (15) days following adoption by the Council of this resolution.

6. This Resolution shall take effect upon its adoption.

7. The City Manager is authorized to take such further actions as are necessary and appropriate to carry out the purpose and intent of this resolution.

PASSED, APPROVED, and ADOPTED November 12, 2024 .

KEVIN J. LINCOLN II
Mayor of the City of Stockton
ATTEST:

KATHERINE ROLAND, CMC, CPMC
Interim City Clerk of the City of Stockton
2043
EXHIBIT 1
EXHIBIT 1

CANVASS AND STATEMENT OF RESULT OF ELECTION

CITY OF STOCKTON
COMMUNITY FACILITIES DISTRICT NO. 2024-1
(SOUTH STOCKTON FACILITIES AND SERVICES)
I hereby certify that on November 12, 2024 I canvassed the returns of the election held on November 12, 2024 in the City of Stockton Community Facilities District No. 2024-1 (South Stockton Facilities and Services) and the total number of ballots cast in said District and the total number of votes cast for and against the measure are as follows and the totals as shown for and against the measure are full, true and correct:

Qualified
Landowner Votes
Votes Cast YES NO
City of Stockton
Community Facilities District No. 2024-1
(South Stockton Facilities and Services)
Special Tax Election ___ ____ ____ ____
Shall the measure pursuant to which (i) the City of Stockton shall incur indebtedness and issue bonds up pursuant to which (i) the City of Stockton shall incur indebtedness and issue bonds up to $50,000,000 on behalf of its Community Facilities District No. 2024-1 (South Stockton Facilities and Services) (“CFD”), to acquire and/or construct facilities set forth in the list of authorized facilities for the CFD attached to the resolution of formation and incorporated by this reference herein and pay for the costs of issuing the bonds and related expenses; (ii) a special tax for facilities shall be levied at a rate of $650/acre, subject to annual escalation, through Fiscal Year 2073-74, raising $131,223 in Fiscal Year 2024- 25 (assuming full build-out of the CFD), to pay for the principal and interest upon such bonds, to pay the costs of the City in administering the CFD, and to pay for the costs of acquiring and/or constructing said facilities in accordance with the rate and method of apportionment of special taxes for the CFD attached to the resolution of formation and incorporated by this reference herein; (iii) a special tax for services shall be levied at a rate of $1,637/acre, subject to annual escalation, so long as the services are provided, raising 330,319 in Fiscal Year 2024-25 (assuming full build-out of the CFD), to pay for the services and the costs of the City in administering the CFD in accordance with the rate and method of apportionment of special taxes for the CFD attached to the resolution of formation and incorporated by this reference herein; and (iv) the annual appropriations limit of the CFD shall initially be $50,000,000, subject to escalation, be adopted? IN WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND as of
November 12, 2024.

By:

KATHERINE ROLAND, CMC, CPMC
Interim City Clerk of the City of Stockton
EXHIBIT 1
2044
ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF STOCKTON LEVYING

SPECIAL TAXES WITHIN CITY OF STOCKTON COMMUNITY FACILITIES DISTRICT NO. 2024-1 (SOUTH STOCKTON FACILITIES AND SERVICES)
On September 17, 2024, pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing with Section 53311, of the California Government Code (the “Act”), this City Council adopted Resolution No. 2024-09-17-1502-01 (the “Resolution of Intention”), stating its intention to form the “City of Stockton Community Facilities District No. 2024-1 (South Stockton Facilities and Services)” (the “CFD”), and to establish a future annexation area related thereto entitled “City of Stockton Community Facilities District No. 2024-1 (South Stockton Facilities and Services) (Future Annexation Area) (the “Future Annexation Area”); and Notice was published as required by the Act relative to the intention of this City Council to form the CFD, to establish the Future Annexation Area, to provide for certain public facilities and public services to be financed through the CFD, and to incur bonded indebtedness for the CFD; and
On November 12, 2024, this City Council held noticed public hearings as required by the Act relative to (i) the determination to proceed with the formation of the CFD, the establishment of the Future Annexation Area and the approval of the rate and method of apportionment of the special tax to be levied within the CFD to finance a portion of the costs of the public facilities and public services and (ii) the issuance of bonded indebtedness and other debt for the CFD;
At said hearing all persons desiring to be heard on all matters pertaining to the formation of the CFD, the establishment of the Future Annexation Area and the levy of said special taxes were heard, substantial evidence was presented and considered by this City Council and a full and fair hearing was held; On November 12, 2024, subsequent to the hearing, this City Council adopted its “RESOLUTION TO FORM A COMMUNITY FACILITIES DISTRICT AND TO LEVY A

SPECIAL TAX THEREIN TO FINANCE PUBLIC SERVICES AND THE ACQUISITION

AND CONSTRUCTION OF CERTAIN PUBLIC FACILITIES IN AND FOR SUCH DISTRICT” (the “Resolution of Formation”), its “RESOLUTION DETERMINING

NECESSITY TO INCUR BONDED INDEBTEDNESS FOR A COMMUNITY FACILITIES DISTRICT” (the “Resolution Determining Necessity”) and its “RESOLUTION CALLING SPECIAL ELECTION FOR A COMMUNITY FACILITIES DISTRICT” (the “Election Resolution”), which resolutions defined the public facilities to be financed by the CFD (the “Facilities”) and the public services to be financed by the CFD (the “Services”), established the CFD and the Future Annexation Area, authorized the levy of special taxes within the CFD, including for parcels that annex to the CFD from the Future Annexation Area, determined the necessity to incur bonded indebtedness in the CFD and called an election within the CFD on the propositions of incurring indebtedness for the CFD, levying 2045
special taxes within the CFD, and establishing an initial appropriations limit for the CFD, subject to escalation, respectively; and
On November 12, 2024, a special election was held with respect to the CFD at which the eligible landowner-electors of the CFD approved such propositions by the twothirds vote required by the Act; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, as follows:

Section 1. By the passage of this Ordinance, this City Council hereby authorizes and levies special taxes for Facilities and for Services within the CFD, including costs related to administering the CFD, pursuant to the Act. The City shall levy the special taxes at the rates and in accordance with the methodology set forth in the Resolution of Formation (the “Rate and Method”), which Rate and Method is by this reference incorporated herein and as the Rate and Method may be amended in accordance with the Act. The special taxes are hereby authorized to be levied commencing in Fiscal Year 2024-25 and in each fiscal year thereafter, as contemplated by the Resolution of Formation and the Resolution of Necessity. Parcels that annex into the CFD in the future, including from the Future Annexation Area, shall be subject to the levy of the special taxes in accordance with the formation proceedings for the CFD and the Act, as may be supplemented by the unanimous consent(s) of landowner(s) annexing from the Future Annexation Area to the CFD as contemplated thereby.

Section 2. The Chief Financial Officer of the City is hereby authorized and directed each fiscal year to determine the specific special tax rate and amount to be levied for the next ensuing fiscal year for each parcel of real property within the CFD.

Section 3. Except as provided in the Rate and Method or the Act, properties or entities of the State, federal or local governments shall be exempt from any levy of the special taxes. In no event shall the special taxes be levied on any parcel within the CFD in excess of the maximum tax authorized.

Section 4. All of the collections of the special taxes shall be used as provided for in the Act and in the Resolution of Formation including, but not limited to, the payment of principal and interest on bonds issued by the City for the CFD (the “Bonds”), the replenishment of the reserve fund for the Bonds, the payment of the costs of the Facilities and the Services, the payment of the costs of the City in administering the CFD, and the costs of collecting and administering the special taxes.

Section 5. The special taxes shall be collected in the same manner as ordinary ad valorem taxes are collected and shall have the same lien priority, and be subject to the same penalties and the same procedure and sale in cases of delinquency as provided for ad valorem taxes; provided, however, that special taxes may be directly billed by the City and/or this City Council may provide for other appropriate methods of collection by resolutions of this City Council. In addition, the provisions of Section 53356.1 of the Act 2046
shall apply to delinquent special tax payments. The Chief Financial Officer of the City is hereby authorized and directed to provide all necessary information to the auditor/tax collector of the County of San Joaquin in order to effect proper billing and collection of the special tax, so that the special tax shall be included on the secured property tax roll of the County of San Joaquin for Fiscal Year 2024-25 and for each fiscal year thereafter in which a special tax shall be levied.

Section 6. If for any reason any portion of this Ordinance is found to be invalid, or if the special taxes are found inapplicable to any particular parcel within the CFD, by a court of competent jurisdiction, the balance of this Ordinance and the levy of the special taxes on the remaining parcels within the CFD shall not be affected.

Section 7. The Mayor shall sign this Ordinance, and the City Clerk shall cause the same to be published within fifteen (15) days after its passage at least once in a newspaper of general circulation published and circulated in the City.

Section 8. Pursuant to Section 508 of the Charter of the City, this Ordinance shall become effective immediately upon passage by the City Council.

INTRODUCED: ____________________
ADOPTED: ____________________
EFFECTIVE: ____________________
KEVIN J. LINCOLN II
Mayor of the City of Stockton
ATTEST:

KATHERINE ROLAND, CMC, CPMC
Interim City Clerk of the City of Stockton
2047
City of Stockton
Community Facilities District No. 2024‐1
(South Stockton Facilities and Services)
City Council Meeting
November 12, 2024
Agenda Item 16.3
2048
Actions for Consideration
• A resolution of formation establishing Community Facilities District No. 2014-1 (South Stockton Facilities and Services) (the “CFD”), authorizing the levy of a special tax within the CFD and establishing an appropriations limit for the CFD. • A resolution determining the necessity to incur bonded indebtedness in an amount not to exceed $50,000,000.
• A resolution calling for an election for the purpose of submitting the levy of the special tax and the establishment of the appropriations limit to the qualified electors of the CFD. • A resolution canvassing (review and examine) the results of the November 12, 2024 election held within the initial annexation area of the CFD. • A resolution declaring the results of the election and directing the recording of a notice of special tax lien.
• Adopt an ordinance authorizing the levy of a special tax within the CFD. 2 2049
CFD 2024‐1 (Facilities and Services)
The CFD special taxes will help fund the construction of fire related public capital infrastructure facilities in the project area, including one or more fire stations to reduce service times to thisportion of the City. Fire and paramedic related services will also be funded by the special tax.

The maximum annual facilities special tax for each parcel withinthe CFD will initially be $650 per acre and will grow at a rate of 2% per year while bonds are outstanding.

The maximum annual services special tax for each parcel withinthe CFD will initially be $1,637 per acre and will grow at a rate of up to 4% per year. The services special tax and escalator will remain in perpetuity.
3 2050
Proposed Boundary Map
4 Initial Boundary
2051
CFD 2024‐1
(Initial Boundary andAnnexationTerritory)
The initial boundary of the District will include just the MariposaIndustrial Park which currently houses a Walmart Distribution Center of approximately 900,000 square feet and is expected to develop otherindustrial buildings up to another 1,224,880 square feet.

Due to a recent land swap and as noted in the staff report, two parcels (about four acres) will not be included within the initial boundary but will remain within the FutureAnnexationArea. The Resolution of Formation allows for the recording of an amended boundary map reflecting this change.
5 In addition to the initial boundary, other undeveloped commercial and industrial areas within the annexation territory will be asked to annex into the District thereby expanding the boundaries as future development occurs.
2052
FinalActions Required for CFD Formation
• City CouncilActions
• Hold Public Hearing• Approve Resolution of Formation• Approve Resolution of Necessity to Incur Debt• Approve Resolution Calling for Election• Approve Resolution Declaring Results of the Election
• Adopt Ordinance Levying SpecialTax
• Other Steps
• Notice of SpecialTax Lien Recorded• Special tax becomes effective 30‐days later 2053 6
Questions / Discussion
2054
City of Stockton
Legislation Text
File #: 24-1001, Version: 1

ADOPT A RESOLUTION APPROVING THE SAN JOAQUIN COUNTY MULTI-SPECIES HABITAT CONSERVATION AND OPEN SPACE PLAN 2025 DEVELOPMENT FEE SCHEDULE

RECOMMENDATION
It is recommended that the City Council:

1. Adopt a resolution approving the San Joaquin County Multi-Species Habitat Conservation and Open Space Plan 2025 Development Fee Schedule.

2. It is further recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of the resolution.

Summary
On November 14, 2000, the San Joaquin Council of Governments, Inc. (SJCOG, Inc) established the San Joaquin County Multi-Species Habitat Conservation and Open Space Plan (“Plan” or “SJMSCP”). The Plan provides a strategy for balancing the needs to accommodate new development while encouraging the preservation of open space and agricultural areas as well as protected species habitat in San Joaquin County. Participation in the Plan is voluntary and available to the development community as an option to pay a fee to mitigate habitat impacts because of their development projects. Developers can fulfill mitigation obligations more efficiently with Plan participation and avoid negotiating mitigation measures with various Federal and State environmental protection agencies for their individual projects. SJCOG, Inc. collects the fees which are used to purchase permanent habitat preservation areas. Developers who do not participate in the Plan must provide their own project level analysis during the entitlement or construction permit process for proposals that could negatively impact natural resources in the region. Fees are updated on an annual basis and require the adoption of the elected officials of each participating jurisdiction within San Joaquin County to be effective. On February 20, 2001, the City of Stockton adopted the Plan, the last fee update was adopted by City Council on December 12, 2023.

In August 2024, the SJCOG, Inc. Board of Directors approved the 2025 Plan Development Fee Schedule (Attachment A - SJMSCP Staff Report). SJCOG, Inc. proposes an approximate 7.5% overall decrease in the Agricultural and Natural habitat classifications for the Plan, which are the two most common areas impacted by development projects. As shown in Attachment A, the 2024 Fee for the Agricultural and Natural habitat classification was $17,833 and is now proposed to be $16,492 in 2025. The decrease is primarily due to a decline in the land acquisition component (Category A).

The City Council is requested to approve the proposed fee schedule. The SJMSCP Compensation Zones for Stockton are mostly located on the outer parts of the City (see Attachment B - SJMSCP Compensation Zone Map). This map displays the classification of land within San Joaquin County City of Stockton Page 1 of 5 Printed on 11/7/2024
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into categories based on their general habitat type. These zones guide the compensation of development fees that would be charged to conduct permitted activities pursuant to Section 8.2.1 of the SJMSCP.

DISCUSSION
Background
The City became a participant in the Plan by joining the Joint Powers Authority (JPA) in 2001. As a participant in the JPA, City Council approval of annual fee adjustments is required. Annual plan fee rates are determined using a financial model that SJCOG, Inc. maintains and updates at 5-year increments to address land sales market conditions and inflation changes. In the past, delayed fee updates have resulted in lack of funding for the purchase and preservation of areas, as well as significant fee increases for the development community. To accommodate changing market conditions and to provide clarity in fees, SJCOG has become more proactive in the Plan’s fee assessment.

Over the last six months, SJCOG, Inc.’s Habitat Technical Advisory Committee (HTAC) and Financial Subcommittee engaged in a review of land sales market data and analysis. The HTAC consists of planning staff from local county and city agencies (including Stockton), building industry associations, and state and federal environmental protection agencies. The proposed 2025 Development Fee Annual Adjustment is based on the 2020 San Joaquin County Multi-Species Habitat Conservation and Open Space Plan (SJMSCP) 5-year Financial Model Update. The Habitat Fee must be adopted by each local jurisdiction to take effect in that community.

The collected fees are used to purchase and preserve land throughout San Joaquin County.

Additional costs cover the restoration of land, monitoring, reporting, and biological reviews of land subject to the overall Plan. The SJCOG, Inc. 2023 Preserve List demonstrates 105 total preserves within San Joaquin County.

While there are no preserve areas located within the City of Stockton, the Jacques Highway 4 Preserve, D’Alonza Property Preserve and the Torlai Property Preserve are closest to city limits.

These three preserves are located in the Delta Index Zone, west of Interstate 5 and south of Highway

4. Enhancements have been made to the Torlai Property Preserve including emergent wetland creation which will provide potential nesting habitat for waterfowl and tricolored blackbird, as well as suitable habitats for double crested cormorant, western pond turtle, loggerhead shrike, waterfowl, herons and egrets. These lands are protected through land covenants (i.e., easements, restrictions) that prevent development and can also include possible improvements to restore or encourage new habitat. A map of the regional preserve areas is included in Attachment C - Regional Preserve Areas.

On February 20, 2001, the Stockton City Council adopted three Resolutions as follows:

1. Resolution No. 01-0099 -- Certifying the Final Environmental Impact Report/Environmental Impact Statement (Final EIR/EIS), adopting the related California Environmental Quality Act (CEQA) Findings and Mitigation Reporting/Monitoring Program, and adopting the San Joaquin County Multi-Species Habitat Conservation and Open Space Plan; City of Stockton Page 2 of 5 Printed on 11/7/2024
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2. Resolution No. 01-0100 -- Adopting the Implementation Agreement of the San Joaquin County Multi-Species Habitat Conservation and Open Space Plan authorizing the filing of the related Federal Endangered Species Act Section 10(a)(1)(B) Incidental Take Permit application with the U.S. Fish and Wildlife Service; and

3. Resolution No. 01-0101 -- Approving amendments to the JPA Agreement with SJCOG, Inc. authorizing SJCOG, Inc. to assume responsibilities specified in the San Joaquin County MultiSpecies Habitat Conservation and Open Space Plan.

Applicants that participate in the Plan benefit from a predetermined streamlined process. By participating in the Plan, the applicant may choose from a menu of options to mitigate impacts:

1. Pay the Plan Fee;

2. Redesign the project to avoid/minimize impacts;

3. Provide land in lieu of the Plan Fee; or

4. Any combination of the above options.

Alternatively, a project can choose not to participate in the Plan and fulfill mitigation requirements on its own with the respective permitting agencies. This option appears to be chosen less often by developers.

Originally, the City collected Plan fees at the time of building permit issuance, like other development impact fees in the City’s Public Facilities Fee Program. Plan fees for individual projects (e.g., house on a single parcel) are adjusted to ensure that the per-acre fee as established by SJCOG, Inc. is collected for the entire (gross) project area. For example, a house built on a parcel within a large subdivision relies on additional land to support the residential use (e.g., road in front of the house).

The adjusted development fee includes this supporting land so that all the acreage is accounted for within a given project area, and the appropriate Plan fee is paid.

On December 15, 2009, City Council adopted Resolution Number 09-409, which authorized an amendment to the Public Facility Fee Program’s Administrative Guidelines to establish SJCOG, Inc. as the entity responsible for the collection of the development fee. This change was made to increase administrative efficiency in the calculation and collection of Plan fees.

Each year, SJCOG, Inc. uses comparable agricultural land sales within San Joaquin County that meet certain criteria adopted by the Board. Easement acquisition costs are a primary consideration.

As shown in Table 1, Plan fees can fluctuate from year to year.

Table 1 - Plan Fees 2019-2024 (Rate per acre)
TYPE/ YEAR 2019 2020 2021 2022 2023 2024
Multi-Purpose Open Space $6,700 $6,412 $8,682 $9,781 $9,629 $8,918 Agriculture/ Natural $13,399 $12,822 $17,363 $19,561 $19,255 $17,833 Vernal Pool Wetted $101,033 $100,788 $161,286 $174,040 $176,878 $177,72 4 Vernal Pool Grasslands $54,576 $52,833 $71,544 $80,453 $75,320 $69,408 City of Stockton Page 3 of 5 Printed on 11/7/2024
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File #: 24-1001, Version: 1
Present Situation
The SJCOG, Inc. Board of Directors recently approved the proposed 2025 Development Fee adjustment. The fee model uses three main categories to calculate fee rates: Category A - Acquisition; Category B - Assessment and Enhancement; and Category C - Management, Monitoring and Administration.

I. Category A (Acquisition) - Comparable
This category is directly related to land valuation based on comparable land sales in San Joaquin County in specific zones of the plan area (Central Zone, Central Southwest Transition Zone, and Delta Zone) over an established two-year period meeting the established criteria (e.g. “sales not less than 40 acres” and “no parcels with vineyard or orchard (except SJCOG, Inc. transactions for special needs”) used for comparable land sales. Cost estimates for this category will continue to be evaluated on a yearly basis by taking all qualified fee title comparable sales in each zone to set a weighted cost per acre. The fee model analysis update results in a 12.7% decrease in the Agricultural/Natural Habitat types of Category A component to be $9,608. The reason for the decrease is the decline in overall comparable fee title land sale values from prior year values.

II. Category B (Assessment & Enhancement) - Refined Cost Factors/Redistribution of Habitat/ Consumer Price Index
The unit cost factors (per acre or per year for some items) are adjusted only by the California Consumer Price Index (CPI), (the California CPI calculation was an increase of 3.2%). But the total cost for Category B is also a function of the SJMSCP Annual Report data updated annually (acres remaining to be acquired and the number of years remaining in the permit term; the fee per acre is a function of those total calculated costs and the land conversion acres remaining). These factors all feed into the fee model. The fee model update results in a 0.5% increase in the Agricultural/Natural Habitat types of Category B component to be $6,066.

III. Category C (Management, Monitoring and Administration) - Refined Cost Factors/Long Term Investment/Consumer Price Index
Annual cost updates will continue to use the California Consumer Price Index, as reported by the California Department of Finance, for the preceding 12-month fiscal year (e.g., July - June) to keep up with inflation annually. The fee model update results in a 3.2% increase in the Agricultural/Natural Habitat types of Category C component from prior years to be $817.

Plan Mitigation Fee Formula = Proposed 2025 Plan Fees
The formula for fee calculation is categorized into three distinct components (discussed above) to calculate a supported fee per acre [FEE = Category A (acquisition) + Category B (assessment & enhancement) + Category C (management, monitoring and administration)].

For comparison purposes, the 2024 SJMSCP Fees and calculations are shown in Table 2, and the proposed 2025 Plan Fees and calculations are shown in Table 3. Compared to 2024, the proposed City of Stockton Page 4 of 5 Printed on 11/7/2024
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File #: 24-1001, Version: 1
2025 Plan Fees reflect an overall decrease of 7.5% in the Agricultural and Natural habitat classification fees.

Table 2 - 2024 SJMSCP Development Fees
Habitat Type Category A Category B Category C Total Fee Rounded Fee
Other Open Space $5,502.00 $3,019.00 $396.66 $8,917.66 $8,918 Natural/Ag $11,003.00 $6,038.00 $792.15 $17,833.15 $17,833 Vernal Pool Grasslands $52,545.00 $14,906.00 $1,956.53 $69,407.53 $69,408 Vernal Pool Wetted $52,748.00 $123,058.00 $1,918.14 $177,724.14 $177,724 Table 3 - Proposed 2025 SJMSCP Development Fees
Habitat Type Category A Category B Category C Total Fee Rounded Fee
Other Open Space $4,804.00 $3,033.00 $409.47 $8,246.47 $8,246 Natural/Ag $9,608.00 $6,066.00 $817.74 $16,491.74 $16,492 Vernal Pool Grasslands $48,084.00 $15,386.00 $2,019.72 $65,489.72 $65,490 Vernal Pool Wetted $48,270.00 $127,031.00 $1,980.10 $177,281.10 $177,281 Although the City adopted several Public Facility Fee Reduction Programs and a Fee Deferral Program for specified fees within the City’s control, fees such as this Countywide Habitat Conservation Plan (HCP) Fee are subject to a regional agreement that was promulgated by the Federal and State Endangered Species Act. The administration of this fee is detailed in the Countywide HCP, where SJCOG Inc. is the designated Administrator. Methodologies and fee analyses are overseen by SJCOG staff, HTAC financial subcommittees and consultants. As a result, these “development fees” are not subject to reduction and deferral programs as they are not City fees and are considered as “pass-through” fees.

PUBLIC NOTICE
A Public Notice of this hearing was published in the Record on November 1, 2024.

FINANCIAL SUMMARY
There is no direct financial impact to the City of Stockton, as this Development Fee is collected directly by SJCOG, Inc.

Attachment A - SJMSCP Staff Report
Attachment B - SJMSCP Compensation Zone Map
Attachment C - Regional Preserve Areas
City of Stockton Page 5 of 5 Printed on 11/7/2024
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August 2024
SJCOG, Inc. Board

STAFF REPORT
SUBJECT: 2025 SJMSCP Development Fee Annual
Adjustment
RECOMMENDED ACTION: Motion to Approve the 2025 SJMSCP
Development Fees as Adjusted Pursuant to
the Financial Analysis Model
SUMMARY:

Using the adopted five-year financial analysis model to the San Joaquin County Multi-Species Habitat Conservation and Open Space Plan (SJMSCP) the SJCOG Inc. staff, Habitat Technical Advisory Committee (HTAC) Financial Subcommittee members (Table 1) and consultants undertook the annual analysis in summer 2024. The goal of the annual analysis is to establish the next year’s habitat plan fees paid by individual development projects. The fees are for impacts under the countywide SJMSCP permits as defined in the three fee model categories (Category A – Acquisition; Category B - Assessment and Enhancement; and Category C - Land Management and Administration).

Table 1 – HTAC Financial Subcommittee Members:

John Beckman, BIA Matt Diaz, Stockton Zachery Kearns, CDFW Dan Gifford, Conservation Alisa Goulart, SJ County
The proposed 2025 SJMSCP development fees were adjusted using the recommended 2020 SJMSCP Five-Year Financial Model Update for the respective categories and are compared to the 2024 SJMSCP Development fees (Table 2) in the most common habitat categories under the plan. The change is an overall decrease of

7.5% in the most impacted categories of Agricultural and Natural habitat classifications from the prior year. The decrease is due primarily to a decline in the land acquisition component (Category A) for agricultural land price values of comparable sales even though there was a rise in the reported Consumer Price Index (CPI) for Categories B and C.
2025 SJMSCP
Fees
Cat C
Cat A Cat B

7.5%

ATTACHMENT A
2060
Table 2- Compared 2025 & 2024 SJMSCP Development Fees – Most Common Fee Habitat Types 2025 Fee -
Proposed
2024 Fee -
Adopted Difference
Percent
Change
Agricultural/Natural $16,492 $17,833 -$1,341 -7.5%
Table 3 illustrates the history of the SJMSCP development fees over the current 5-year fee model cycle. The fees can fluctuate primarily based on the Category A – acquisition component of the fee formula over time.

Table 3- History and Annual Percentage Change for SJMSCP Development Fees Projects participating under the SJMSCP benefit from a predetermined streamlined processing of the project rather than navigating through a potentially very long, cumbersome and expensive regulatory process outside the habitat plan. By opting for participation, the project proponent can choose any number of ways to provide mitigation for the impacts of the project through the plan and even control much of the mitigation costs if desired. The options are:

1. Pay a fee.

2. Redesign the project to avoid/minimize impacts.

3. Provide land in lieu of the SJMSCP fee, which the project proponent will negotiate the easement/fee title costs (Category A component).

4. Any combination of the above options.

And if those options are not sufficient, the project proponent can choose to not participate in the plan (opt out) and fulfill mitigation requirements on their own with state and federal permitting agencies independently.

ATTACHMENT A
2061
RECOMMENDATION:

Staff recommends the SJCOG, Inc. Board approve the 2025 SJMSCP development fees as adjusted pursuant to the financial analysis model.

FISCAL IMPACT:

Development fees provide funding for SJCOG Inc. to mitigate project impacts covered under the SJMSCP permits for the subsequent calendar year beginning January 1.

BACKGROUND:

Annually, the SJMSCP development fees are reviewed and calculated using a formula method adopted under the habitat plan. The three components of the formula are adjusted based on the individual components and the most current supporting data. The development fees established must be adopted by each of the jurisdictions and would become effective on January 1 of the subsequent year for projects using the SJMSCP.

Category A (Acquisition) – Comparable Land Sales
This category is directly related to land valuation based on comparable land sales in San Joaquin County in specific zones of the plan area (Central Zone, Central Southwest Transition Zone and Delta Zone) over an established two-year period meeting the established criteria used for comparable land sales (Attachment 1). Cost estimates for this category will continue to be evaluated on a yearly basis by taking all qualified fee title comparable sales in each zone to set a weighted cost per acre.

The fee model analysis update results in a 12.7% decrease in the Agricultural/Natural Habitat types of Category A (Acquisition) component to $9,608. The reason for the decrease is the decline in overall comparable fee title land sale values from prior year values.

Cat A Cat B Cat C Fee

ATTACHMENT A
2062
Category B (Assessment and Enhancement) – Refined Cost Factors with Consumer Price Index and Model Data Update
The Category B component of the fee is adjusted using several factors including the California Consumer Price Index (CPI), as reported by the California Department of Finance for the preceding 12-month fiscal year (June 2023 – June 2024) and from the updated model numbers completed annually based on the SJMSCP Annual Report.

The unit cost factors (per acre or per year for some items) are adjusted only by the CPI (the California CPI calculation was an increase of 3.2%). But the total cost for Category B is also a function of the SJMSCP Annual Report data updated annually (acres remaining to be acquired and the number of years remaining in the permit term; the fee per acre is a function of those total calculated costs and the land conversion acres remaining). These parts all feed into the fee model.

The fee model update results in a 0.5% increase in the Agricultural/Natural Habitat types of Category B (Assessment and Enhancement) component to $6,066.

Category C (Management, Monitoring and Administration) – Refined Cost Factors/Long Term Investment with Consumer Price Index
Annual cost updates use the California Consumer Price Index (CPI), as reported by the California Department of Finance, for the preceding 12-month fiscal year (June 2023 – June 2024) to keep up with inflation on an annual basis.

The fee model update results in a 3.2% increase in the Agricultural/Natural Habitat types of Category C (Management, Monitoring and Administration) component from prior years to $817.

In summary, the SJMSCP fees are calculated using the SJMSCP Financial Analysis formula model shown in the final proposed fee table 4 below and Attachment 2 (SJMSCP Cost and Fee Analysis 2025 Update). The overall result in the fee analysis is a 7.5% decrease in the most impacted Agricultural and Natural Habitat Classifications fees for 2025.

ATTACHMENT A
2063
Table 4 - 2025 SJMSCP Development Fees - Proposed
Habitat Type Category A Category B Category C Total Fee Rounded Fee Other Open Space $4,804 $3,033.00 $409.47 $8,246.47 $8,246 Natural/Ag Lands $9,608.00 $6,066.00 $817.74 $16,491.74 $16,492 Vernal Pool
Grasslands $48,084.00 $15,386.00 $2,019.72 $65,489.72 $65,490 Vernal Pool Wetted $48,270.00 $127,031.00 $1,980.10 $177,281.10 $177,281 NEXT STEPS:

Should the staff and HTAC recommendation be approved by the SJCOG, Inc. Board at the August 22nd Board meeting, the item will be taken out to each jurisdiction for adoption in the coming months for implementation starting January 1, 2025.

COMMITTEE ACTIONS:
• Habitat Technical Advisory Committee: Recommended Approval • Management & Finance Committee: Action Item (Has not met by time of mail out) • Executive Committee: Recommended Approval
• SJCOG, Inc. Board – Action Required
ATTACHMENTS:

1. 2025 Fee Study Property List

2. SJMSCP Cost and Fee Analysis 2025 Update
Prepared by: Steven Mayo, Program Manager

ATTACHMENT A
2064
Attachment 1 – 2025 Fee Study Property List - Properties 24 Month

ATTACHMENT A
2065
Attachment 2 – SJMSCP Cost and Fee Analysis 2025 Update

ATTACHMENT A
2066
FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 Table of Contents List of worksheet tabs and contents
Notes to User Model overview and instructions for annual updates Fee Summary Comparison Table showing calculated fee amounts by habitat type and category; comparison to adopted fees; linked from other sheets; includes California CPI factor for Category C annual update
A1 PerAcreCostFactorsbyZone Per acre easement cost factors by zone based on input from comparables and appraisal analysis A2 PerAcreAcquisitionCost Weighted acquisition cost factors by habitat type based on distribution of preserves by zone; adds transaction costs A3 AcquisitionCostHabitatType Total acquisition cost by habitat type, for preserves remaining to be acquired A4 AcquisitionFEE Category A fee by habitat type, based on remaining land conversion B1 PreserveEnhancementCost Weighted enhancement cost factors by habitat type based on estimate of acres enhanced and detailed per acre enhancement cost factors B2 AssessmentEnhancementCost All assessment and enhancement cost factors by habitat type, for preserves remaining to be acquired B3 AssessEnhancementCostAllocation Total assessment and enhancement cost by habitat type, remainder of permit term, for preserves remaining to be acquired B4 AssessmentEnhancementFEE Category B fee by habitat type, based on remaining land conversion C MonitoringAdminFEE Category C fee by habitat type, based on remaining land conversion; links to summary comparison for annual update For 5-Year Update Only => Workbook break: the following tabs for Category C are only used in the 5-year economic analysis update C1 MonitoringCost Monitoring cost factors by habitat type, including post-permit annual cost; costs for remainder of permit term, all preserve acres C2 PMAdminCost Project management and administrative cost factors, including post-permit annual cost; costs for remainder of permit term, all preserve acres C3 Permit Term Cost Adjustments Category C fund balance deducted from Category C costs remainder of permit term to calculate net cost for cost allocation and fee C4 Endowment Endowment cash flow, return assumptions, and total in year 51 to support post-permit annual cost C5 MonitoringAdminCostAlloc Total monitoring, management, and administrative cost by habitat type, remainder of permit term and endowment for post permit cost C6 MonitoringAdminFEE Category C fee by habitat type, based on remaining land conversion Source for update acres => Workbook break: the following tabs are updated annually and every 5 years for acres inputs 1 SJMSCP Acres 6_4_2015 Land conversion and preserve acres by habitat type for the 50-year permit term (source table)

2.1 RemainingPreservetoAcquire Preserve Acres, Total and Remaining to be Acquired (from Table 1 and Annual Report updates)

2.2 Preserves_Habitat_Zone_2019 Detail on preserve acquisition by habitat type and zone for use in monitoring cost estimates (not used in annual updates) 3 Cumulative Take_Remaining Allowed and Remaining Incidental Take Acreage (from Table 1 and Annual Report updates) 4 PreserveAcquisitionSchedule Preserve Acquisition Schedule, All Habitat Types, by Index Zone, Remaining Permit Term (from Table 2.1 and 2.2) Fund Balance Analysis => Workbook break: the following tabs are updated every 5 years for Category C cost analysis 5 FundBalanceAllocation Allocation of Fund Balance to Category B and Category C (permit term) and post-permit endowment B1 ExistingPreserveEnhanceCost Estimate of enhancement costs on existing preserves with updated cost factors, to allocate fund balance to Category B - TABLE OF CONTENTS -

ATTACHMENT A
2067
FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 This workbook of linked worksheets calculates SJMSCP Impact Fees for Categories A, B, and C.

The workbook contains all of the elements needed for annual updates as well as the framework for the more complex 5- year economic analysis updates.

Action items for annual updates indicated in red italics.

Category A and Category B are fees for one-time costs for land acquisition, enhancement, restoration and associated site assessments and planning.

These fees will be updated annually by updating the per-acre cost factors and updating the acres remaining to be acquired and the remaining acres of land conversion based on data from SJMSCP Annual Reports. - Category A per-acre cost factors updated by annual comparables analysis, as established in past practice, and evaluation of easement cost percent of fee title based on SJMSCP appraisals - Category B per-acre and annual cost factors updated by applying California CPI to unit cost factors - The total costs in Category A and Category B for each annual update will reflect the acres remaining to be acquired and the fees for each annual update will reflect the remaining acres of land conversion from SJMSCP Annual Reports.

Category C Annual updates for this fee Category will apply the California CPI to the prior year is a fee for on-going annual costs for the remainder of the permit term and post-permit in perpetuity. fee amount, as established in past practice.
- Incorporating Annual Report data in the annual updates of on-going permit term and post-permit costs adds unnecessary complexity to the annual update of this component of the SJMSCP fees. - Updating annually the SJCOG, Inc. fund balance and budget analysis used to estimate costs in this category, as well as the endowment cash flow analysis required to estimate post-permit costs, are more complex work efforts not justified to generally keep Category C fees in line with annual cost inflation. Moreover, because management and administration costs are not sensitive to habitat type, it is not as important to account for the annual variation in preserve acquisition and land conversion captured in the annual updates to Categories A and B.

Components of the workbook:

1. The Fee Summary Comparison worksheet compares calculated updated fees to fees currently in effect and includes the California CPI for Category C updates.

2. Category A tabs A1 - A4 calculate the fees for Category A Acquisition.

3. Category B tabs B1 - B4 calculate the fees for Category B Assessment and Enhancement. - NOTES TO USER -

ATTACHMENT A
2068
FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020

4. Category C Fee tab shows the fees by habitat type calculated in the 2020 Economic Analysis Update, the basis for the 5. Category C tabs C1 - C6 calculate the fees for Category C Monitoring, Management, and Administration. 5-YEAR UPDATE ONLY 6. Tables 1 - 3 provide background data on preserve acres and land conversion by habitat type, updated annually from the SJMSCP Annual Report; Table 4 showing the preserve monitoring schedule by habitat type and zone is used only in the 5-year update.

7. Tables 5 and B1 ExistingPreserveEnhanceCost provide the fund balance analysis completed every five years as part of the Category C update.
- NOTES TO USER -

ATTACHMENT A
2069
FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 Fee Summary Comparison
Calculates new annual fees and compares to prior year adopted fees.

1. Paste values of prior year adopted fees in cells C11:E14.

2. Insert updated annual California CPI factor in cell F1.

3. Updated fees for Category A show in cells C5:C8 and updated fees for Category B show in cells D5:D8. The fees are linked to ot

4. Formulas in cells E5:E8 calculate Category C fee update amounts based on prior year adopted fee amounts in cells E11:E14 and the California CPI.

Category A Acquisition
A.1 Category A Per-Acre Acquisition Cost Factors by Zone 1. Input results of annual comparables analysis for updated fee title values in Central Zone and Primary Zone of the Delta.

2. Update SJCOG, Inc. appraisal list each year and calculate weighted average percent by dividing cumulative total easement value (cost) by cumulative total before value (fee title value).

3. Value of Southwest Zone easement cost remains unchanged until experience indicates it should be updated.

A.2 Per-Acre Acquisition Cost Factors by Preserve/Habitat Type No annual input needed. Links and formulas calculate total cost factors per acre for each habitat type.

1. Easement cost factor input linked from A.1.

2. Distribution by preserve type is not changed from 1996 Economic Analysis.

3. Transaction cost and VP acquisition assumptions not changed.

A.3 Total Acquisition Costs by Habitat Type, Remainder of Permit Term No annual input needed. Links and formulas calculate total cost for each habitat type.

1. Land acquisition cost factors linked from A.2.

2. Preserve acres remaining to be acquired linked from Table 2.1 (updated annually based on SJMSCP Annual Report).

A.4 Fee Calculations
No annual input needed. Links and formulas calculate fee for each habitat type.

1. Cost by habitat type linked from A.3.

2. Land conversion remaining linked from Table 3 (updated annually based on SJMSCP Annual Report). - NOTES TO USER -

ATTACHMENT A
2070
FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 Category B Assessment and Enhancement
B.1 SJMSCP Preserve land by habitat type, enhancement analysis, and enhancement cost factors per preserve acre 1. 2016 Economic analysis included: refinement of natural lands detail and SJMSCP enhancement requirements refined, and update of costs for enhancements and restoration. 2020 Analysis included further cost updates based on actual SJCOG, Inc. experience and other relevant cost updates. Table calculates weighted average cost per preserve acre for agricultural lands, non-vernal pool natural lands, and vernal pool preserves. Update enhancement cost analysis every five years. 2. Annually, in each shaded cell in table column 5 (Enhancement Cost per Acre), substitute prior year value in the formula. Formula references updated annual California CPI factor in cell E1. Formulas calculate updated weighted average cost per preserve acre.

3. Insert updated annual California CPI factor in cell E1.

B.2 Category B Assessment, Planning, Restoration and Enhancement Cost Factors

1. Update remaining years in permit term. 2. Annually, in each brown shaded cell in table, substitute prior year value for site assessment, management plans, and enhancement plans in the formula. Formula references updated annual California CPI factor in cell C1. Formulas calculate updated annual costs.

3. Insert updated annual California CPI factor in cell C1.

4. Enhancement and restoration cost factors linked from B.1.

B.3 Category B Assessment, Planning, Restoration, and Enhancement Cost Allocation by Habitat Type No annual input needed. Links and formulas calculate total cost for each habitat type. 1. Assessment and planning costs linked from B.2. Formulas calculate total enhancement and restoration costs from factors in B.2.

2. Preserve acres remaining to be acquired linked from Table 2.1 (updated annually based on SJMSCP Annual Report).

B.4 Fee Calculations
No annual input needed. Links and formulas calculate fee for each habitat type.

1. Cost by habitat type linked from B.3.

2. Land conversion remaining linked from Table 3 (updated annually based on SJMSCP Annual Report).

Category C Monitoring, Management, and Administration
C.5 Fee Calculations - Annual Update Only
No input needed. Cost and land conversion values frozen based on 2020 Economic Analysis.

1. For 2020 update, Category C fee amounts by habitat type linked to Fee Summary Comparison table. - NOTES TO USER -

ATTACHMENT A
2071
FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020

2. Update annually by applying California CPI factor to prior year Category C fee amounts, as in past practice.

Note: this is done in the Fee Summary Comparison worksheet. - NOTES TO USER -

ATTACHMENT A
2072
FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 Category C Monitoring, Management, and Administration - INSTRUCTIONS FOR FIVE-YEAR UPDATE C.1 Category C (part) Compliance and Effectivement Monitoring Cost Assumptions

1. Remaining years in permit term linked from Table 4 Preserve Monitoring Schedule.

2. Update monitoring cost factors (annual costs and annual costs per acre).

3. Total costs by type of monitoring for the remainder of the permit term calculated by worksheet formula. With links to Table 4 Preserve Monitoring Schedule.

4. Post permit cost updates by worksheet formula based on updates to detail in rows above. Acres input linked from Table 4 Preserve Monitoring Schedule.

C.2 Category C (part) Project Management and Administrative Cost Assumptions

1. Remaining years in permit term linked from Table 4 Preserve Monitoring Schedule.

2. Update annual management and administrative staff cost and cost allocation, Habitat Plan Environmental Consulting, and Land Manager Coordination costs from analysis of Cumulative Schedule of Receipts and Disbursements in SJMSCP Annual Report, supplemented as needed by cost code detail provided by SJCOG, Inc. staff.

3. Update Financial Plan fFive-Year Review and Update cost based on contracts.

4. Post permit cost updates by worksheet formula based on updates to detail in rows above.

C.3 Adjustments for Remaining Fund Balance
No input needed. Links and formulas calculate net Category C cost for remainder of permit term.

1. Costs for the remainder of the permit term by cost category linked from Table C.1 and C.2.

2. Category C fund balance as of prior year end for costs on existing preserves linked from Table 5.

C.4 SJMSCP Endowment Fund Cash Flow
This table uses estimates of annual post permit costs, existing fund balance allocated to post-permit costs (based on cumulative take to date as a share of total take), and interest earnings assumptions to estimate the endowment needed at the end of the permit term to fund annual costs in perpetuity.

This analysis is to be updated at each 5-year economic analysis review. The worksheet solves for fund balance amount in year 51 that generates the annual income to fully fund annual post permit costs. The worksheet calculates the annual fee revenue required over the remainder of the permit term to achieve that fund balance when added to the existing fund balance for management and administrative costs post permit and interest earnings over the remainder of the permit term. That amount is the total cost to be allocated by habitat type remaining to be acquired and links to - NOTES TO USER -

ATTACHMENT A
2073
FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 C.5 Category C Monitoring and Project Management/Adminstration, including endowment for post-permit costs, Cost Allocation b No input needed. Links and formulas calculate cost for each habitat type. 1. Costs for remainder of permit term linked from C.3 and post-permit costs linked from C.4. Formulas allocate total costs by habitat type.

2. Preserve acres remaining to be acquired linked from Table 2 (updated based on SJMSCP Annual Report).

C.6 Fee Calculations
No input needed. Links and formulas calculate fee for each habitat type.

1. Cost by habitat type linked from C.5.

2. Land conversion remaining linked from Table 3 (updated based on SJMSCP Annual Report). - NOTES TO USER -

ATTACHMENT A
2074
FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 Tables 1 - 5 (Source Tables)
Table 1 Land Conversion and Preserve Acres by Habitat Type for the 50-year permit term This table was finalized on June 4, 2015 as part of the Economic Analysis update. This table provides the source data by detailed habitat type for the 50-year permit term totals.

Table 2.1 Preserve Acres, Total and Remaining to be Acquired

1. Total Preserve Acres by habitat type linked from Table 1.

2. Annually, update Total Preserve Acres Acquired through 12/31 from the SJMSCP Annual Report. Note that as of the 2020 update and going forward, grassland acquired to mitigate agricultural land impacts has a new line item in Table

2.1. This amount is deducted from total grassland acquired in cell E11. 3. Total Preserve Acres Remaining to be Acquired calculated by worksheet formula; links to cost and fee calculation worksheets.

Table 2.2 Preserves_Habitat_Zone_2019 (new in 2020 update) - ONLY USED ON 5-YEAR UPDATE 1. Preserve acquisition by habitat type and zone detail used in monitoring cost estimates. Links to Table 4 Preserve Monitoring Schedule. 2. Update every 5 years. Use Annual Report Tables 6 and 12 to update the Preserve Database_2019 which assigns each preserve to a habitat type and zone. Note that the habitat type represents the type of habitat acquired regardless of the type of impacts mitigated, i.e, grassland preserves acquired to mitigate agricultural impacts are categorized as grassland preserves in this table.

Table 3 Allowed and Remaining Incidental Take Acreage 1. Take Authorizations by habitat type linked from Table 1 and adding multi-purpose open space from SJMSCP Table 1- 1 and Table 4.2-2.

2. Annually, update the Cumulative Acres of Take through 12/31 from the SJMSCP Annual Report.

Table 4 Preserve Acquisition Schedule, All Habitat Types, by Index Zone, Remaining Permit Term - ONLY USED IN 5-YEAR 3. Remaining Acres of Land Conversion calculated by worksheet formula; links to cost and fee calculation worksheets.

UPDATE
This table is used in Table C.1 Monitoring Cost All Acres to calculate monitoring costs for the remainder of the permit term for all preserve acres, assuming future acquisition at an average annual pace calculated by dividing the number of acres remaining to be acquired by the number of years remaining in the permit term.

1. Preserve acres remaining to be acquired by zone linked from Table 2.1 (updated based on SJMSCP Annual Report) and Table 2.2 (updated every 5 years). 2. At five-year update, update the most recent permit year in cell C8 and the years remaining in the permit term in Column C.
- NOTES TO USER -

ATTACHMENT A
2075
FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020

3. At five-year update, double check the formula count of years remaining in permit term in cell C42. This is used as the denominator of the cell formulas for the monitoring schedule above. - NOTES TO USER -

ATTACHMENT A
2076
FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 Table 5 Fund Balance Allocation - ONLY USED IN 5-YEAR UPDATE This table is used in Table C.3 Permit Term Cost Adjustments to calculate the net Category C costs for the remainder of the permit term. Category B and Category C fund balance is allocated to permit term and post-permit needs.

1. Every 5 years, update the beginning fund balance from the 12/31 year-end statement.

2. Calculate Category B Fund Balance for Category B Enhancements (remaining enhancement cost for existing preserves) based on Table B.1 ExistingPreserveEnhanceCost (five-year update cost factors applied to existing preserves by type) and subtracting expenditures through the prior year-end on preserve enhancement.

3. Fund Balance for Post-Permit Costs on Existing Preserves is linked from Table C.4 Endowment. This fund balance adjustment is only required for the 2020 five-year update and will not be necessary in subsequent years once the separate post-permit endowment account is established.

4. The table subtracts the Fund Balance for Category B Enhancements and the Fund Balance for Post-Permit Costs on Existing Preserves from the year-end statement balance to generate Remaining Fund Balance for Permit Term Category C Costs on Existing Preserves. This result links to Table C.3 Permit Term Cost Adjustments. - NOTES TO USER -

ATTACHMENT A
2077
FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 Category A Category B Category C
2025 Fees - Proposed Acquisition Assessment &
Enhancement
Monitoring,
Management &
Administration, & Postpermit Endowment
Total Total Rounded
Other Open Space $4,804.00 $3,033.00 $409.47 $8,246.47 $8,246 Natural/Ag Lands $9,608.00 $6,066.00 $817.74 $16,491.74 $16,492 Vernal Pool Grasslands $48,084.00 $15,386.00 $2,019.72 $65,489.72 $65,490 Vernal Pool Wetted $48,270.00 $127,031.00 $1,980.10 $177,281.10 $177,281 Category A Category B Category C
2024 Fees - Adopted Acquisition Assessment &
Enhancement
Monitoring,
Management &
Administration, & Postpermit Endowment
Total Total Rounded
Other Open Space $5,502.00 $3,019.00 $396.66 $8,917.66 $8,918 Natural/Ag Lands $11,003.00 $6,038.00 $792.15 $17,833.15 $17,833 Vernal Pool Grasslands $52,545.00 $14,906.00 $1,956.53 $69,407.53 $69,408 Vernal Pool Wetted $52,748.00 $123,058.00 $1,918.14 $177,724.14 $177,724 Difference Per Acre ($) Acquisition Assessment &
Enhancement
Monitoring,
Management &
Administration, & Postpermit Endowment
Total Total Rounded
Other Open Space ($698) $14 $13 ($671) ($671)
Natural/Ag Lands ($1,395) $28 $26 ($1,341) ($1,341)
Vernal Pool Grasslands ($4,461) $480 $63 ($3,918) ($3,918) Vernal Pool Wetted ($4,478) $3,973 $62 ($443) ($443)
Percent Difference Acquisition Assessment &
Enhancement
Monitoring,
Management &
Administration, & Postpermit Endowment
Total Total Rounded
Other Open Space -12.7% 0.5% 3.2% -7.5% -7.5%
Natural/Ag Lands -12.7% 0.5% 3.2% -7.5% -7.5%
Vernal Pool Grasslands -8.5% 3.2% 3.2% -5.6% -5.6%
Vernal Pool Wetted -8.5% 3.2% 3.2% -0.2% -0.2%
- Fee Summary Comparison -

ATTACHMENT A
2078
FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 TABLE A.1
2020 Five-Year Economic Analysis and Fee Update
SJMSCP Fee Update - 2024 (for 2025 SJMSCP Development Fee Cycle) Category A Per-Acre Acquisition Cost Factors by Zone (2024 dollars) Central Zone Primary Zone of
the Delta
Southwest
Zone 3
Fee title value1
a $18,799 $12,555 na
Easement percent of fee title value2
b 55% 55% na
Easement costs a × b $10,339 $6,905 $1,000

1. SJCOG, Inc. Fee Study Property List, Table A and Table B

2. SJCOG, Inc. Appraisals as of June 2024

3. Based on standard easement cost in Southwest Zone of $1,000/acre. - A1 PerAcreCostFactorsbyZone -

ATTACHMENT A
2079
FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 TABLE A.2
2020 Five-Year Economic Analysis and Fee Update
SJMSCP Fee Update - 2024 (for 2025 SJMSCP Development Fee Cycle) Per Acre Acquisition Cost by Preserve/Habitat Type (2024 dollars) Preserve/Habitat Type
Central Zone Primary Zone of
the Delta
Southwest
Zone
A B C A + B + C = D D × 5% = E D + E
Easement cost by zone 1
d $10,339 $6,905 $1,000
Agricultural Lands
Percent in zone 2
e 98% 2% 0%
Weighted costs 3d × e $10,152 $125 $0 $10,277 $514 $10,791 Natural Lands
Non-vernal pool natural lands
Percent in zone 2
f 77% 4% 18%
Weighted costs 3d × f $7,988 $307 $183 $8,478 $424 $8,902 Vernal pool grasslands 4
n/a n/a n/a $15,039 $752 $15,791
Vernal pool wetted 4
n/a n/a n/a $15,039 $752 $15,791

1. See Table A.1.

2. Percent of total lands in each category assumed to be in a given zone. Based on 1996 Economic Analysis.

4. Assumes fee title acquisition for vernal pool lands. Vernal pool habitat fee title land costs assumed to be about 80% of average Central Zone fee title costs.

5. Transaction costs include biological baseline reporting, appraisal, escrow, and survey costs. Costs are estimated at 5 percent of acquisition cost.

SJMSCP Zone

3. Weighted average cost based on generalized proportion of total preserve land in each zone. Assumes easement acquisition for lands categorized as agriculture and all natural lands except vernal pool habitat.

Total
Weighted
Acquisition
Cost
Transaction
Costs 5
Total Land
Acquisition
Costs Per
Acre
- A2 PerAcreAcquisitionCost -

ATTACHMENT A
2080
FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 TABLE A.3
2020 Five-Year Economic Analysis and Fee Update
SJMSCP Fee Update - 2024 (for 2025 SJMSCP Development Fee Cycle) Total Acquisition Costs by Habitat Type, Remainder of Permit Term (2024 dollars) Preserves by Habitat Type
Land
Acquisition
Cost Per Acre
Preserve Acres
Remaining to be
Acquired
Total Costs of
Acquisition
Agricultural lands $10,791 36,531.45 $394,210,888
Natural lands
Non-vernal pool natural lands $8,902 23,605.84 $210,139,188 Total for Non-vernal pool Natural /Ag Lands $10,050 60,137.29 $604,350,076 Vernal pool grasslands $15,791 15,720.66 $248,244,863
Vernal pool wetted $15,791 2,115.00 $33,397,965
Sources: SJCOG, Inc., SJMSCP 2023 Annual Report, and Hausrath Economics Group. - A3 AcquisitionCostHabitatType -

ATTACHMENT A
2081
FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 TABLE A.4
2020 Five-Year Economic Analysis and Fee Update
SJMSCP Fee Update - 2024 (for 2025 SJMSCP Development Fee Cycle) Category A Acquisition
Fee Calculations (2024 dollars)
Habitat Type Preserve Land Acquisition
Costs associated with non-vernal pool natural/agricultural lands conversion $604,350,076 Natural (non vernal pool)/Agricultural land conversion (acres) , remaining 45,955.30 Multi-purpose open space conversion (acres), remaining1 33,896.57
Multiplier for natural/agricultural land conversion 1
Multiplier for multi-ourpose open space conversion1

0.5 Acquisition Component of Natural (non vernal pool)/Agricultural Lands Fee $9,608 Acquisition Component of Multi-Purpose Open Space Fee1
$4,804
Costs associated with vernal pool grasslands $248,244,863 Vernal pool grassland conversion (acres), remaining 5,162.74 Acquisition Component of Vernal Pool Grasslands Fee $48,084 Costs associated with vernal pool wetted $33,397,965
Vernal pool wetted conversion (acres), remaining 691.90 Acquisition Component of Vernal Pool Wetted Fee $48,270

1. As described in SJMSCP Section 7.4.1.2, the fee calculation allocates the costs associated with agricultural habitat and non-vernal pool natural lands preserves to conversion of both those high value lands (agricultural land and nonvernal pool natural land) and lower value multi-purpose open space. In other words, the SJMSCP does not enhance multi-purpose open space lands but allocates some of the costs of enhancements on agricultural and natural lands preserves to the conversion of multi-purpose open space lands to assist with the financing of those enhancements.

Sources: SJCOG, Inc., SJMSCP 2022 Annual Report, and Hausrath Economics Group. - A4 AcquisitionFEE -

ATTACHMENT A
2082
FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 TABLE B.1
2020 Five-Year Economic Analysis and Fee Update
SJMSCP Fee Update - 2024 (for 2025 SJMSCP Development Fee Cycle) Category B Assessment, Planning, Restoration and Enhancement Habitat Type
Total Preserve
Acres (including
neighboring lands
preserves)
Percent of
Preserve
Acres
Enhanced1
Acres Benefiting
from
Enhancements
Perimeter
Hedgerow or
Other Linear
Habitat Feature (
acres)2
Enhancement
Cost per Acre3
Total
Enhancement Cost
Enhancement
Cost per Preserve
Acre
1 2 3 4 5 6 7
Agricultural Habitat Lands4 57,935 10% 5,794 776 $85,256 $66,158,340 $1,142 Natural Lands
Ditches 378 33% 126 $372,243 $46,902,650
Grasslands 14,559 33% 4,853 $23,534 $114,212,324
Oak woodlands 858 33% 286 $34,823 $9,959,257
Riparian 2,725 33% 908 $102,067 $92,710,493
Submerged aquatic in the Delta 10 100% 10 $70,846 $708,457 Subtotal 18,530 6,183 $42,775 $264,493,180
Other natural lands5
6,445 33% 2,148 $42,775 $91,895,339
Subtotal Non VP Natural 24,975 $356,388,520 $14,270
Vernal pool wetted 2,121 33% 707 $124,522 $88,037,209 $41,507 Vernal pool grasslands 15,811 33% 5,270 $15,010 $79,105,817 $5,003 Subtotal All Natural Lands 42,907 14,309 $523,531,546
Total 100,842 20,103 $589,689,886

1. Enhancement criteria derived from the SJMSCP, Section 5.4.6.

5. Estimated based on the weighted average cost for all other non-vernal pool natural lands.

Sources: Table A.1, SJCOG, Inc., ICF, and Hausrath Economics Group

3. The enhancement cost applies to the acres where construction and/or installation actually takes place. In the case of hedgerows or other linear features, this is only the relatively small area of activity, not the total area that is thereby enhanced. Enhancement cost includes costs for materials, construction labor, and equipment. In addition to the installation activity, the cost per enhanced acre also includes a cost for project oversight and contract adminstration and three years of maintenance and monitoring. For vernal pool wetted restoration, the cost includes 5 monitoring years during a 10 year post-restoration monitoring period.

4. For agricultural habitat lands, a SJMSCP describes a broad range of enhancement activities and a generalized target of 10 percent enhancement; providing benefits to species without substantially reducing the amount of agricultural land in production. This can be achieved by implementing the linear features described in footnote 2. Pollinator hedgerows or similar linear features enhance the entire field that they are associated with, thereby counting toward the 10 percent enhancement criteria while taking substantially less land out of production.

2. Unlike most other habitat types, agricultural lands are enhanced by treating linear features that run along the edge of or through fields--features such as roads or drainage ditches. In these cases, the land area of direct enhancement activity is substantially less than that area benefiting from the enhancement. This has the advantage of minimizing impacts to agricultural land production. Installing pollinator hedgerows at the edges of fields and grassland borders along irrigation and drainage ditches, and planting nest trees and associated shrubs and grasses, are enhancements used in the cost analysis to represent the range of types of agricultural land enhancements outlined in the SJMSCP. In addition to benefits to species, these linear features offer benefits of preventing soil erosion and reducing costs for weed control and linear water conveyance infrastructure maintenance. They also enhance the entire field they are associated with, meeting the 10 percent enhancement criterion while also minimizing loss of productive agricultural land. The enhancement cost estimate for agricultural lands is therefore based on the acres of hedgerow or other linear feature multiplied by the cost per acre to install hedgerows and similar linear features.

SJMSCP Preserve land by habitat type, enhancement analysis, and enhancement cost per preserve acre (2024 dollars) - B1 PreserveEnhancementCost -

ATTACHMENT A
2083
FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 TABLE B.2
2020 Five-Year Economic Analysis and Fee Update
SJMSCP Fee Update - 2024 (for 2025 SJMSCP Development Fee Cycle) Category B Assessment, Planning, Restoration and Enhancement Cost Factors (2024 dollars) Remainder of Permit Term
Remaining years in permit term 27 used in formulae below to calculate costs for the remainder of the permit term Biological Site Assessment
Number of site visits per year 8 assumes 6 hours per visit Annual cost $8,005
Total Site Assessment cost remainder of permit term $216,148 Preserve Management Plan Preparation
Number of management plans per year 12 assumes 40 hours per plan Annual cost $80,053
Total Preserve Management Plan cost remainder of permit term $2,161,426 Preserve Enhancement Plan Preparation
Average cost per enhancement plan $4,670 assumes 28 hours per plan for each enhancement project Average acres per project 240
Average cost per preserve acre $19
Preserve Enhancements on Agricultural Lands
Enhancement cost per preserve acre $1,142 from Table B1 Preserve Enhancements on Non-Vernal Pool Natural Lands
Enhancement cost per preserve acre $14,270 from Table B1 Vernal Pool Creation/Enhancement
Enhancement cost per preserve acre $41,507 from Table B1 Vernal Pool Upland Grassland Enhancement
Enhancement cost per preserve acre $5,003 from Table B1 Sources: SJCOG, Inc., SJMSCP 2023 Annual Report, ICF, and Hausrath Economics Group. - B2 AssessmentEnhancementCost -

ATTACHMENT A
2084
FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 TABLE B.3
2020 Five-Year Economic Analysis and Fee Update
SJMSCP Fee Update - 2024 (for 2025SJMSCP Development Fee Cycle) Category B Assessment, Planning, Restoration and Enhancement (2024 dollars) Cost Allocation by Habitat Type
Remainder of Permit Term
Cost per acre
multiplied by preserve
acres remaining to be
acquired
Preserves by Habitat Type
Acres Remaining
to be Acquired1
Percent
of Total
Biological Site
Assessment
Preserve
Management Plans
Preserve Enhancement
Plans
Preserve
Enhancements
Vernal Pool
Restoration
Agricultural lands 36,531.45 47% $101,268 $1,012,659 $694,098 $41,716,754 na Non-vernal pool natural lands 23,605.84 30% 65,438 654,359 448,511 $336,850,866 na Vernal pool grasslands 15,720.66 20% 43,579 435,780 298,692 $78,653,801 na Vernal pool wetted 2,115.00 3% 5,863 58,628 40,185 na $87,788,165 77,972.95 100% $216,148 $2,161,426 $1,481,486 $457,221,421 $87,788,165

1. Includes 600 acres of neighboring lands preserves.

2. SJCOG, Inc. spending through 12/31/19 on site visits and preserve management plans totals at least $400,000; assume all of these types of costs for existing preserves are included in spending t Sources: SJCOG, Inc., SJMSCP 2023 Annual Report, ICF, and Hausrath Economics Group.

Costs - Remainder of Permit Term
Cost per acre multiplied by
preserve acres remaining to be
acquired
Total cost allocated by preserve type
percent of total preserve acres remaining
to be acquired2
- B3 AssessEnhancementCostAlloc -

ATTACHMENT A
2085
FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 TABLE B.4
2020 Five-Year Economic Analysis and Fee Update
SJMSCP Fee Update - 2024 (for 2025 SJMSCP Development Fee Cycle) Category B Assessment, Planning, Restoration and Enhancement Fee Calculations (2024 dollars)
Remainder of Permit Term
Habitat Type
Biological
Site
Assessment
Preserve
Managemen
t Plans
Preserve
Enhancement
Plans
Agricultural and
Non VP Natural
Land
Enhancement
Total for
Agricultural and
Non VP Natural
Land (incl. assessment
and plans)
Vernal Pool
Restoration /
Enhancement
Total for
Vernal Pool
(incl. assessment
and plans)
Costs associated with non-vernal pool natural/agricultural lands conversion $166,706 $1,667,018 $1,142,609 $378,567,620 $381,543,953 Natural (non vernal pool)/Agricultural land conversion (acres), remaining 45,955.30 45,955.30 45,955.30 45,955.30 45,955.30 Multi-purpose open space conversion (acres), remaining1 33,896.57 33,896.57 33,896.57 33,896.57 33,896.57
Multiplier for natural/agricultural land conversion 1 1 1 1 1 Multiplier for multi-purpose open space conversion1

0.5 0.5 0.5 0.5 0.5
Assessment & Enhancement Component of Natural (non-vernal pool)/Agricultural Lands Fee $3 $27 $18 $6,018 $6,066
Assessment & Enhancement Component of Multi-Purpose Open Space Fee1 $2 $14 $9 $3,009 $3,033
Costs associated with vernal pool grasslands $43,579 $435,780 $298,692 $78,653,801 $79,431,852 Vernal pool grassland conversion (acres), remaining 5,162.74 5,162.74 5,162.74 5,162.74 5,162.7 Assessment & Enhancement Component of Vernal Pool Grasslands Fee $8 $84 $58 $15,235 $15,386 Costs associated with vernal pool wetted $5,863 $58,628 $40,185 $87,788,165 $87,892,841 Vernal pool wetted conversion (acres), remaining 691.90 691.90 691.90 691.90 691.9 Assessment & Enhancement Component of Vernal Pool Wetted Fee $8 $85 $58 $126,880 $127,031 Sources: SJCOG, Inc., SJMSCP 2023 Annual Report, ICF, and Hausrath Economics Group.

1. As described in SJMSCP Section 7.4.1.2, the fee calculation allocates the costs associated with agricultural habitat and non-vernal pool natural lands preserves to conversion of both those high value lands (agricultural land and non-vernal pool natural land) and lower value multi-purpose open space. In other words, the SJMSCP does not enhance multi-purpose open space lands but allocates some of the costs of enhancements on agricultural and natural lands preserves to the conversion of multi-purpose open space lands to assist with the financing of those enhancements. - B4 AssessmentEnhancementFEE -

ATTACHMENT A
2086
FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 TABLE C.5 for Annual Update
2020 Five-Year Economic Analysis and Fee Update
SJMSCP Fee Update - 2024 (for 2025 SJMSCP Development Fee Cycle) Category C Monitoring and Program Management/Administration, including endowment for post-permit costs Fee Calculations (2024 dollars)
Habitat Type
Remainder of
Permit Term Post permit Total
Post Permit
% of Total
Fee
Costs associated with non-vernal pool natural/agricultural lands conversion $38,737,435 $6,809,704 $45,547,139 Non-vernal pool Natural/Agricultural land conversion (acres), remaining 49,654.31 49,654.31 49,654.31 Multi-purpose open space conversion (acres), remaining1 34,494.82 34,494.82 34,494.82
Multiplier for natural/agricultural land conversion 1 1 1 Multiplier for multi-purpose open space conversion1

0.5 0.5 0.5
Monitoring & Administration Component of Natural (non-vernal pool)/Agricultural Lands Fee $579 $102 $681 15%
Monitoring & Administration Component of Multi-Purpose Open Space Fee1 $290 $51 $341 15%
Costs associated with vernal pool grasslands $7,387,258 $1,298,616 $8,685,874 Vernal pool grassland conversion (acres), remaining 5,163.08 5,163.08 5,163.08 Monitoring & Administration Component of Vernal Pool Grasslands Fee $1,431 $252 $1,682 15% Costs associated with vernal pool wetted $990,979 $174,206 $1,165,185 Vernal pool wetted conversion (acres), remaining 706.75 706.75 706.75 Monitoring & Administration Component of Vernal Pool Wetted Fee $1,402 $246 $1,649 15% Note: Net of existing fund balance allocated to Category C permit-term and post-permit costs.

Sources: SJCOG, Inc., SJMSCP 2024 Annual Report, ICF, Urban Economics, and Hausrath Economics Group.

1. The fee calculation allocates the costs associated with agricultural habitat and non-vernal pool natural lands preserves to conversion of both those high value lands (agricultural land and non-vernal pool natural land) and lower value multi-purpose open space, thereby assisting with the financing of management and monitoring on agricultural and natural lands preserves. - C MonitorAdminFEE -

ATTACHMENT A
2087
FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 TABLE 1
2020 Five-Year Economic Analysis and Fee Update
Land Conversion and Preserve Acres by Habitat Type for the 50-year Permit Term Habitat Type Land Conversion1
Number of Preserve
Acres to Land
Conversion Acres
Total Preserve
Acres for
Compensation
Neighboring Land
Protection
Preserves
Total All
Preserve
Acres
Percent
Total Acres
Agricultural lands2
57,635 1.00 57,635 300 57,935 57%
Natural Lands
Ditches3
126 3.00 378 378 0.37%
Grasslands4
4,853 3.00 14,559 14,559 14.44%
Oak woodlands
5 286 3.00 858 858 0.85%
Riparian6
900 3.00 2,700 25 2,725 2.70%
Submerged aquatic in the Delta Zone 3 3.00 10 10 0.01%
Vernal pool grasslands7
VP - wetted surface area 707 3.00 2,121 2,121 2.10%
VP - upland grassland 5,187 3.00 15,561 15,561 15.43%
VP - Neighboring Land Protection preserves8
na 250 250 0.25%
Other natural lands9
2,140 3.00 6,420 25 6,445 6.39%
Subtotal Natural Lands 14,202 42,607 300 42,907 42.55%
Total 71,837 100,242 600 100,842 100.00%

3. Drainage ditches (unlined) generally found in agricultural fields (D types).

4. Valley grasslands (G types) and Foothill grasslands (G2 types).

7. Vernal pool grasslands (G3 type) .

NOTE: In the following footnotes, "type" refers to the mapped habitat unit identified in the SJMSCP Biological Analysis (Chapter 2). The following footnotes provide summaries only and the reader should refer to the Biological Analysis for a detailed description of each habitat type.

5. Blue Oak woodlands, savanna and forests (BL types), Blue Oak Conifer woodlands, savanna and forests (BCN types), Valley Oak Woodland, savanna and forests (V types), and Mixed Oak Woodlands, savanna and forests (O types).

6. This category includes those portions of rivers and major streams located outside the Primary Zone of the Delta (Mokelumne, Calaveras, Stanislaus, and San Joaquin Rivers). These were originally included in a separate "Riparian Zone" during the SJMSCP planning process (i.e., "Riparian" refers to a zone rather than to the "Riparian" habitat type. The Riparian Zone was "absorbed" or combined into its surrounding zone (i.e., Central/Central-Southwest) in the final SJMSCP. It generally included River and Deep water channel (W), Tributary Streams (W2), Creeks-intermittent and perennial (W3, W3-i, W3-p), Dead-end sloughs (W-4) and their associated riparian habitats (Great Valley Riparian - R, R2, R3, R5, R4, S, S2). This category includes 25 acres of Neighboring Lands Protection Preserves for Valley elderberry longhorn beetle habitat.

9. This category includes all natural land types except for Vernal Pools. Cost estimates in this category are an average of the costs of acquiring, restoring, enhancing the Natural Land categories specified in the preceding categories excluding Vernal Pools. This category also includes natural lands not included in other categories: All Water Features (W types), Channel islands (I types), tule island and mudflat (I2) marsh, and Diablan sage scrub (S3 types) and all other types of Natural Lands.

8. The vernal pool preserves for Neighboring Land Protection consist of existing vernal pools (no creation requirement). Enhancements will benefit the tiger salamander.

2. Neighboring Land Protection Preserves consist of ditched agricultural lands providing habitat for giant garter snake and pond turtle and other lands as needed for compensation to other covered species associated with agricultural land preserves.

1. Land conversion includes results of Tier 1 and Tier 2 analyses. Agricultural land conversion includes 9,720 acres from Tier 2 Analysis and Natural Lands conversion includes 5,000 acres from Tier 2 Analysis of vernal pool conversion to orchards and vineyards and 744 acres of other natural lands conversion. - 1 SJMSCP Acres 6_4_2015 -

ATTACHMENT A
2088
FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 TABLE 2.1
2020 Five-Year Economic Analysis and Fee Update
Preserve Acres, Total and Remaining to be Acquired1
Preserve/Habitat Type
Total Preserve
Acres - 50-year
Permit
Total Preserve
Acres Acquired
through
12/31/2023 2
Total Preserve
Acres Remaining
to Be Acquired
(links to A.3, B.3.
and C.4)
Agricultural lands 57,935 13,360.549
Grasslands mitigating agricultural land impacts 8,043
Natural lands
Ditches 378 - 378.00
Grasslands 14,559 1,266.510 13,292.49
Oak woodlands 858 - 858.00
Riparian 2,725 49.850 2,675.15
Submerged aquatic in the Delta 10 - 10.00
Other natural lands 6,445 52.800 6,392.20
Subtotal non-vp natural lands 24,975 1,369.160 23,605.84 Total Non VP Natural/Ag Lands 82,910 22,772.709 60,137.29 Vernal pool wetted 2,121 6.000 2,115.00
Vernal pool grasslands 15,811 90.345 15,720.66
Total 100,842 22,869.054 77,972.95
Notes:

1. Includes six acres of vernal pool jumpstart.

Sources: Table 1 in this workbook, Table 6 from Annual Reports through 2023, and SJCOG Inc. staff.

2.The Mizuno Preserve (row and field crop agricultural land preserve) is recorded at 181.449 acres (3 decimals).

All other preserve acres recorded at 2 decimals or less. 36,531.45
- 2.1 RemainingPreservetoAcquire -

ATTACHMENT A
2089
FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 Table 2.2
2020 Five-Year Economic Analysis and Fee Update
A. Preserves Acquired by Habitat Type and Zone as of 12/31/2023 Habitat Type Central Delta Southwest Vernal Pool Total
Agricultural lands 6,327.299 4,347.850 10,675.149
Natural lands
Ditches
Grasslands 243.250 7,121.280 7,364.530
Oak woodlands
Riparian 44.050
Submerged aquatic in the Delta
Other natural lands 30.600
Subtotal non-vp natural lands 317.900 - 7,121.280 - 7,439.180 Total Non VP Natural/Ag Lands 6,645.199 4,347.850 7,121.280 - 18,114.329 Vernal pool wetted 6.000 6.000
Vernal pool grasslands (upland) 71.760 18.585 90.345
Total 6,716.959 4,347.850 7,121.280 24.585 18,210.674
Source: SJMSCP 2022 Annual Report , Table 6 and Table 12 B. Preserves Acquired by Summary Habitat Type and Zone as of 12/31/2022 Habitat Type Central Delta Southwest Vernal Pool Total
Agricultural Land 6,327.299 4,347.850 - - 10,675.149
Natural Land 389.66 - 7,121.280 24.585 7,535.525
Total 6,716.959 4,347.850 7,121.280 24.585 18,210.674
Source: SJMSCP 2022 Annual Report , Table 6 and Table 12 C. Estimate of Future Southwest Zone Preserves, July 2020 2,500 Source: SJCOG, Inc. staff.

SJMSCP Index Zone
SJMSCP Index Zone
- 2.2 Preserves_Habitat_Zone_2019 -

ATTACHMENT A
2090
FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 TABLE 3
2020 Five-Year Economic Analysis and Fee Update
Allowed and Remaining Incidental Take Acreage
Preserve/Habitat Type
Take Authorizations - 50-year
Permit (including multipurpose open space)1
Cumulative Acres
of Take through
12/31/2023
Remaining Acres of
Land Conversion (links
to A.4, B.4. and C.5)
Agriculture 57,635 19,244.12 38,390.88
Multi-purpose (other open space) 37,465 3,568.43 33,896.57 Natural lands
Vernal pool wetted 707 15.10 691.90
Vernal pool upland grassland 5,187 24.26 5,162.74
All other natural lands 8,308 743.91 7,564.42
Total 109,302 23,595.82 85,706.51
Notes:

1. Land conversion includes results of both Tier 1 and Tier 2 analysis. See Table 1 note 1.

Sources: Table 1 in this workbook, SJMSCP Table 1-1 and Table 4.2-2; SJCOG, Inc., 2023 Annual Report Table 4 - 3 Cumulative Take_Remaining -

ATTACHMENT A
2091

EIGHT MILE RD

HARNEY LN
W
E
S
T
L
N
A
L
PIN
E
R
D

FRENCH CAMP RD
MANTH
EY
RD

HOWARD RD
HOL
T
R
D

INLAND DR

MAIN ST

HAMMER LN

MARCH LN

LATHROP RD
HARLAN
RD

SWAIN RD

GUARD RD

ARMSTRONG RD

PERSHING
AV

UNDINE RD

PACIFIC
AV
KAIS
E
R
R
D

CHEROKEE RD
EL
DORADO
ST
ASHLEY
LN

POCK LN

FAIRCHILD

CALIFORN
IA
ST
H
A
M
L
N

MORADA LN

ARCH RD

JACOBS RD

EIGHTH ST

SUTTER ST
H
O
L
M
A
N
R
D

NAVY DR
PEZZI
RD
C
R
O
C
K
E
R
R
D
WILSON
WY

FREMONT ST

MULLER RD

ALPINE AV
WO
L
F
E
R
D

FLORA ST
S
T
A
R
K
R
D
HIL
D
R
E
T
H
L
N

WEBER AV
BO
RBA
R
D

BENJAMIN HOLT DR
OTT RD

WING LEVEE RD

WILLOW ST

BIANCHI RD

BOWMAN RD
WHITE
LN

TURNPIKE RD
B
E
E
C
H
E
R
R
D

TOKAY C

ROTH RD
SAN

JOAQUIN
ST
AU
RORA
ST

MICHIGAN AV

HOGAN LN

BRISTOL AV
F
RESN
O AV

CHARTER WY
ORO
AV
P
E
A
R
S
O
N
R
D

KELLEY DR

BOEING WY

CARLIN RD
F
U
R
R
Y
R
D
R RD
BEYER
LN

FILBERT
ST

LINCOLN RD
R
O
B
E
R
T
S
R
D

FREWERT RD

RALPH AV
M
C
KINLE
Y
A
V
B
ST

RIVER DR

OTTO DR

MANILA RD
ADA AV
P
R

CHURCH ST

WATERLOO RD

LONGVIEW AV

MINER AV
WIL
H
OIT
R
D
RIO B
L
A
N
C
O R
D
CA
S
T
L
E RD

HOUSTON AV
PRIEST
R
D

COUNTRY CLUB BL

HAZELTON AV

HENRY LONG BL

RYDE AV
D
ST
MIC
K
E
G
R
O
V
E
R
D

LORRAINE
AV

TENTH ST
M
AY
B
E
C
K
R
D

ESTATE DR
D
O
N
A
V

INDUSTRIAL DR

SHIMIZU DR
S
T
A
T
E
R
O
U
T
E
9 9
E FR
R
D

BROOKSIDE RD

NORTHLAND RD
ARATA
RD

WASHINGTON ST
T
A
M
O
S
H
A
N
T
E
R
D
R

WILLIAM MOSS BL

ROSEMARIE LN
HIB
B
A
R
D
R
D

ROBINHOOD DR

MAGNOLIA ST

MATHEWS RD

MISSION
RD
W
O
O
D
S
B
R
O
R
D

METTLER RD
C
O
N
F
E
R
R
D
GRANT
ST

ALEXANDRIA
PL

ESSEX ST

CARDINAL
AV

TRINITY
P
K

MCALLEN RD

ARCH AIRPORT RD

QANTAS LN
N
E
W
C
A
S
T
L
E
R
D

MYRTLE ST
MARIN
E
R
S
D
R

LAFAYETTE ST

WAUDMAN AV

DOS REIS RD
STATE
R
O
U
T
E
9 9
W
F
R
R
D
A
N
G
EI R
R
D

BRIGGS RD
GILLIS
RD

AMERICAN
ST

MONTE DIABLO AV

STANFIELD DR

IRIS AV

MONTAUBAN AV

HINKLEY
AV
V

DOUGLAS RD

POLK WY

FINKBOHNER RD
KIRK
AV
WALKER
LN

RATTO RD

BALDWIN
LN

EDAN AV

PATRICK
RD

WHISTLER WY
K
E
R
MIT
L
N

SPERRY RD

ANITA ST

DEL RIO DR
WIL
LOW GL
E
N
R
D

EUCLID AV

SECTION AV

SHIPPEE LN

TREDWAY RD
Q
UAIL
LAKES
D
R

MORSE RD

PLYMOUTH
RD
D
A
G
G
E
T
T
R
D
E
N
D
OW
R
D
SNYDER
LN
DAWES
AV

LOVELACE RD

FOPPIANO LN

CUMBERLAND PL

FIVE MILE DR
GOLDEN
GATE
AV

HOUSE RD

LEONARDINI RD
ODELL
AV

CARPENTER RD
M
A
R
A
N
A
T
H
A
D
R

SINCLAIR
AV

LINCOLN
ST

CLARK DR
NEWTON
RD

BROADWAY
AV
Y RD
M
C
DO
U
GAL
D B
L
SHAW
RD

HANDEL RD

DE LIMA RD
SUN RD

ANGEL DR
UNION
ST
ATKI

RIVERBROO
K
D
R

ELLIS ST
BURGE
RD

LEVER BL

ADELBERT
AV

PILGRIM ST

FLINT AV
BERN
RD
LONGE
ST

JULIET RD

ALLSTON
WY

RIVARA RD

QUASHNICK RD
E
W S WO
O
D
S B
L

BEAR CREEK RD

INGLEWOOD
AV
F
E
RGU
SON
R
D
G
O
L
F
V
EI W
R
D

ONETO RD

FARMINGTON RD

YOKUTS AV

TUXEDO S AV
SUTRO
AV
RIC
H
L
A
N
D
W
Y

MADISON
ST

VIGNOLO
RD

ZEPHYR ST

FISK RD

MACDUFF AV

BIRD AV

YETTNER RD

WILMARTH
RD
NATALI
RD

SCOTTS AV

EASTVIEW DR

METRO DR

CHANNEL ST

MARIPOSA AV

CORA POST RD

WALNUT ST

LYNCH RD

PYRENEES AV

SMALL RD

BRUMBY RD
A
V
O
N
A
V
PATTON
AV
CI

CHAPARRAL WY

ALVARADO
AV

SUTHERLAND DR

IMPERIAL WY

HERNDON
PL

PONCE DE LEON AV

ADAMS ST

CLAYTON AV

NINTH ST

BRADFORD ST

TOGNINALI LN

MARKET ST

PALM AV

BUDISELICH
RD

OVERHISER RD
O
P
AL
S
T

MARFARGOA DR

PARDEE LN

FRISBEE LN
LANDI
RD

WINDMILL COVE RD
RU
GG
LES
RD

BALBOA A
V
SLATE
ST

ARGONAUT ST

STEPHENS
RD

DRAKE AV

CORONADO
AV

MYRAN AV

LINDSAY ST
HUNTER
ST

A G SPANOS BL

VOLPI DR

WILCOX RD

FULTON ST

RAINIER
AV
IJAMS
RD

MARLETTE RD

STATION DR

OAKCREEK DR

GROUSE RUN DR
S
T
A
R W
Y
W
O
L
FIN
G
E
R
R
D

HICKOCK
DR
B
RIG
H
T
R
D

FERNWOOD RD
C
ODY
WY

SANDALWOOD DR
M
O
R
G
A
N
P
L
H
E
M
E
T
AV

LOS FELIS AV
SAN
JUAN
AV
B
EST
R

WISCONSIN AV

SCOTTSDALE RD G
A
R
N
E
R
O
R
D

LOOMIS RD
HO
L
M
E
S
R
D
LAN
ARK
DR

TRAPPER RD

WAKEMAN DR

HOLIDAY
DR

PIXIE DR

ORVIS DR

DARRIGO
RD

MIST TRAIL
D
R

MUNFORD AV
L
E
A
C
H
R
D

CLAY ST

CEMETERY
LN
H ST

WALLACE
AV

DUDLEY RD
PHELPS
ST

ELKHORN DR
C
O
L
E
D
R

TENAYA LN
NEWBY
RD

HUBBARD
AV

WAIT AV

STERN PL

ANTHONY
AV
LEE CT
YAL
E AV

ROYAL OAKS DR
A
L
H
A
M
B
R
A
AV

GUERNSEY AV

COELHO RD

ORFORD RD
SIERRA
LN
MILAN
DR
NORD
AV

TAYLOR ST

LAGORIO
RD
ASH
ST

THIRTEENTH ST
RAT
F
O
R
D
AV
BULL
PINE
RD

HORSETAIL DR

KOLHER ST
JAS
P
E
R
ST
Y
WY
NOYO
LN
L
Y
L
E
AV
WIM
WIZARD
AV

GREEN RIDGE DR

DECARLI ST

ORWOOD ST
S
A
NTA
A
N
A
AV

RIVIERA DR

PENELOPE DR

VERNAL WY

FIFTH ST

DRIFTWOOD PL

PALAZZO DR

BOGGIANO
RD

TUDOR ROSE GL

NISPEROS ST

WIGWAM DR

HACIENDA DR

PASSERO WY IN
TE
R
C
H
A
N
G
E

MOHICAN DR

DES MOINES DR
STOKES
AV

EXETER DR

DEEP WATER LN

RUNWAY DR

TINA PL
RAYA
N
N
A
D
R

ERICKSON CI
W
E
ST
L
N
E
F
R
R
D

BARRYMORE ST

RUFF AV
W

WAUSA WY

MCVIE DR

MADDIE CI
DWIGHT
WY

PINASCO
RD

GOLD RIVER LN

BALSAM DR

HIGHMOOR AV

GALLEY WY

EL MONTE ST
AD
ART
RD

MANCHESTER
AV
H
O
P
E
L
N

DORSET ST
E
C
T
O
R WY

UYEDA RD
V
A
L
L
E
Y
D
R

MICHAEL AV
C
L
OWE
S
S
T

HAZEL R
D

MCAULIFFE RD
DELANO
AV

SONORA ST

WORTH ST
STAN

ISLAUS ST

EIGHTH ST

PARK ST

SECTION AV
P
E
RS
HIN
G
AV
F
ST

THORNTON RD

SIXTH ST
S
T
O
C
K
T
O
N
S
T

SEVENTH ST
S
TA
T
E ROU
T
E
9 9
E
F
R
R
D
STATE ROUTE 88

MATHEWS RD
G
LEVEE
RD

BROOKSIDE RD

MARKET ST
S
T
A
T
E
ROU
T
E
9 9
W
F
R
R
D
E
ST

ALPINE AV
E
ST
F ST
OAK ST
C
U
R
R
Y
AV

SONORA ST

MARKET ST
B
E
E
C
H
E
R
R
D

AUSTIN RD
A
ST
WALKER
LN
H
U

NTER ST
DIN
E
R
D

MARCH LN
R
O
B
E
R
T
S
R
D

MCKINLEY
AV
ELM ST

BOWMAN RD
B
ST

SEVENTH ST

FOPPIANO LN

LEACH RD
D
ST

MAIN ST

EIGHT MILE RD

HARNEY LN
W
EST LN
A
L
PIN
E
R
D

FRENCH CAMP RD
MANTH
EY
RD

HOWARD RD
H
O
L
T
R
D

INLAND DR

MAIN ST

HAMMER LN

MARCH LN

LATHROP RD
HARLAN
RD

SWAIN RD

GUARD RD

ARMSTRONG RD

PERSHING
AV

UNDINE RD

PACIFIC
AV
KA
SI E
R
R
D

CHEROKEE RD

EL DORADO ST
ASHLEY
LN
POCK
LN

FAIRCHILD

CALIFORNIA ST HAM LN

MORADA LN

ARCH RD

JACOBS RD

EIGHTH ST
SUTTER
ST

HOLMAN RD

NAVY DR
PEZZI
RD
C
R
O
C
K
E
R
R
D
WILSON
WY

FREMONT ST

MULLER RD

ALPINE AV
WO
L
F
E
R
D

FLORA ST
S
T
A
R
K
R
D
HIL
D
R
E
T
H
L
N

WEBER AV
B
O
R
B
A
R
D

BENJAMIN HOLT DR
OTT RD

WING LEVEE RD

WILLOW ST

BIANCHI RD

BOWMAN RD
WHITE
LN

TURNPIKE RD
B
E
E
C
H
E
R
R
D

TOKAY C

ROTH RD

SAN JOAQUIN ST
AU

RORA ST

MICHIGAN AV

HOGAN LN

BRISTOL AV
F
R
E
S
N
O
AV

CHARTER WY
ORO
AV
P
E
A
R
S
O
N
R
D

KELLEY DR

BOEING WY

CARLIN RD
F
U
R
R
Y
R
D
R RD
BEYER
LN

FILBERT
ST

LINCOLN RD
R
O
B
E
R
T
S
R
D

FREWERT RD

RALPH AV
M
C
KINLE
Y
A
V
B
ST

RIVER DR

OTTO DR

MANILA RD
ADA AV
P
R

CHURCH ST

WATERLOO RD

LONGVIEW AV

MINER AV
WIL
H
OIT
R
D
RIO
B
L
A
N
CO
R
D
C
A
S
T
L
E
R
D

HOUSTON AV
P
RIE
S
T
R
D

COUNTRY CLUB BL

HAZELTON AV

HENRY LONG BL
RYDE
AV
D
ST

MICKE GR
OVE R
D

LORRAINE
AV

TENTH ST
M
AY
B
E
C
K
R
D

ESTATE DR
D
O
N
A
V

INDUSTRIAL DR

SHIMIZU DR
S
T
A
T
E
R
O
U
T
E
9 9
E FR
R
D

BROOKSIDE RD

NORTHLAND RD

ARATA RD

WASHINGTON ST
T
A
M
O
S
H
A
N
T
E
R
D
R

WILLIAM MOSS BL

ROSEMARIE LN
HIB
B
A
R
D
R
D

ROBINHOOD DR

MAGNOLIA ST

MATHEWS RD

MISSION RD

WOODSBRO RD

METTLER RD
C
O
N
F
E
R
R
D

GRANT ST

ALEXANDRIA
PL

ESSEX ST

CARDINAL
AV

TRINITY
P
K

MCALLEN RD

ARCH AIRPORT RD

QANTAS LN

NEWCASTLE RD

MYRTLE ST
M
A
RIN
E
R
S
D
R

LAFAYETTE ST

WAUDMAN AV

DOS REIS RD
S
T
A
T
E
R
O
U
T
E
9 9
W
F
R
R
D
A
N
G
EI R
R
D

BRIGGS RD
GILLIS
RD

AMERICAN ST

MONTE DIABLO AV

STANFIELD DR

IRIS AV

MONTAUBAN AV

HINKLEY
AV
V

DOUGLAS RD

POLK WY

FINKBOHNER RD

KIRK AV
WALKER
LN

RATTO RD

BALDWIN
LN

EDAN AV

PATRICK
RD

WHISTLER WY
K
E
R
MIT
L
N

SPERRY RD

ANITA ST

DEL RIO DR
WIL
LOW GL
E
N
R
D

EUCLID AV

SECTION AV

SHIPPEE LN

TREDWAY RD
Q
UAIL
LAKES
D
R

MORSE RD

PLYMOUTH
RD
D
A
G
G
E
T
T
R
D
E
N
DOW
R
D
SNYDER
LN
DAWES
AV

LOVELACE RD

FOPPIANO LN

CUMBERLAND PL

FIVE MILE DR
GOLDEN
GATE
AV

HOUSE RD

LEONARDINI RD
ODELL
AV

CARPENTER RD
M
A
R
A
N
A
T
H
A
D
R

SINCLAIR
AV

LINCOLN
ST

CLARK DR

NEWTON RD

BROADWAY
AV
Y RD
M
C
DO
U
GAL
D B
L
SHAW
RD

HANDEL RD

DE LIMA RD
SUN RD

ANGEL DR
UNION
ST
ATKI

RIVERBROO
K
D
R

ELLIS ST
BURGE
RD

LEVER BL

ADELBERT
AV

PILGRIM ST

FLINT AV
BERN
RD
LONGE
ST

JULIET RD

ALLSTON
WY

RIVARA RD

QUASHNICK RD
E
W
S
WO
O
D
S
B
L

BEAR CREEK RD

INGLEWOOD
AV
F
E
RGU
SON
R
D
G
O
L
F
V
EI W
R
D

ONETO RD

FARMINGTON RD

YOKUTS AV

TUXEDO S AV
SUTRO
AV
RIC
H
L
A
N
D WY

MADISON
ST

VIGNOLO RD

ZEPHYR ST

FISK RD

MACDUFF AV

BIRD AV

YETTNER RD

WILMARTH
RD
NATALI
RD

SCOTTS AV

EASTVIEW DR

METRO DR

CHANNEL ST

MARIPOSA AV

CORA POST RD

WALNUT ST

LYNCH RD

PYRENEES AV

SMALL RD

BRUMBY RD
A
V
O
N
A
V
PATTON
AV
CI

CHAPARRAL WY

ALVARADO AV

SUTHERLAND DR

IMPERIAL WY

HERNDON
PL

PONCE DE LEON AV

ADAMS ST

CLAYTON AV

NINTH ST

BRADFORD ST

TOGNINALI LN

MARKET ST

PALM AV

BUDISELICH
RD

OVERHISER RD
O
P
AL
S
T

MARFARGOA DR

PARDEE LN

FRISBEE LN
LANDI
RD

WINDMILL COVE RD
RU
G
G
LES
RD

BALBOA A
V
SLATE
ST

ARGONAUT ST

STEPHENS
RD

DRAKE AV

CORONADO
AV

MYRAN AV

LINDSAY ST

HUNTER ST

A G SPANOS BL

VOLPI DR

WILCOX RD

FULTON ST

RAINIER
AV
IJAMS
RD

MARLETTE RD

STATION DR

OAKCREEK DR

GROUSE RUN DR
S
T
A
R W
Y
W
O
L
FIN
G
E
R
R
D

HICKOCK
DR
B
RIG
H
T
R
D

FERNWOOD RD
C
O
DY
WY

SANDALWOOD DR
M
O
R
G
A
N
P
L
H
E
M
E
T
AV

LOS FELIS AV
SAN
JUAN
AV
B
EST
R

WISCONSIN AV

SCOTTSDALE RD G
A
R
N
E
R
O
R
D

LOOMIS RD
HO
L
M
E
S
R
D
LAN
ARK
DR

TRAPPER RD

WAKEMAN DR

HOLIDAY
DR

PIXIE DR

ORVIS DR

DARRIGO RD

MIST TRAIL
D
R

MUNFORD AV
L
E
A
C
H
R
D

CLAY ST

CEMETERY
LN
H ST

WALLACE
AV

DUDLEY RD
PHELPS
ST

ELKHORN DR
C
O
L
E
D
R

TENAYA LN
NEWBY
RD

HUBBARD
AV

WAIT AV

STERN PL

ANTHONY
AV
LEE CT
YAL
E AV

ROYAL OAKS DR
A
L
H
A
M
B
R
A
AV

GUERNSEY AV

COELHO RD

ORFORD RD
SIERRA
LN
MILAN
DR
NORD
AV

TAYLOR ST

LAGORIO
RD
ASH
ST

THIRTEENTH ST
RAT
F
O
R
D
AV
BULL
PINE
RD

HORSETAIL DR

KOLHER ST
JAS
P
E
R
ST
Y
WY
NOYO
LN
L
Y
L
E
AV
WIM
WIZARD
AV

GREEN RIDGE DR

DECARLI ST

ORWOOD ST
S
A
NTA
A
N
A
AV

RIVIERA DR

PENELOPE DR

VERNAL WY

FIFTH ST

DRIFTWOOD PL

PALAZZO DR

BOGGIANO
RD

TUDOR ROSE GL

NISPEROS ST

WIGWAM DR

HACIENDA DR

PASSERO WY IN
TE
R
C
H
A
N
G
E

MOHICAN DR

DES MOINES DR
STOKES
AV

EXETER DR

DEEP WATER LN

RUNWAY DR

TINA PL
RAYA
N
N
A
D
R

ERICKSON CI
W
E
ST
L
N
E
F
R
R
D

BARRYMORE ST

RUFF AV
W

WAUSA WY

MCVIE DR

MADDIE CI
DWIGHT
WY

PINASCO
RD

GOLD RIVER LN

BALSAM DR

HIGHMOOR AV

GALLEY WY

EL MONTE ST
AD
ART
RD

MANCHESTER
AV
H
O
P
E
L
N

DORSET ST
E
C
T
O
R WY

UYEDA RD
V
A
L
L
E
Y
D
R

MICHAEL AV
C
L
OWE
S
S
T

HAZEL R
D

MCAULIFFE RD
DELANO
AV

SONORA ST

WORTH ST
STAN

ISLAUS ST

EIGHTH ST

PARK ST

SECTION AV
P
E
RS
HIN
G
AV
F
ST

THORNTON RD

SIXTH ST
S
T
O
C
K
T
O
N
S
T

SEVENTH ST
S
TA
T
E ROU
T
E
9 9
E
F
R
R
D
STATE ROUTE 88

MATHEWS RD
G
LEVEE
RD

BROOKSIDE RD

MARKET ST
S
T
A
T
E
ROU
T
E
9 9
W
F
R
R
D
E
ST

ALPINE AV
E
ST
F ST
OAK ST
C
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Y
AV

SONORA ST

MARKET ST
B
E
E
C
H
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R
R
D

AUSTIN RD
A
ST
WALKER
LN
H
U

NTER ST
DIN
E
R
D

MARCH LN
R
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D

MCKINLEY
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ELM ST

BOWMAN RD
B
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SEVENTH ST

FOPPIANO LN

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June 4, 2004

STOCKTON HABITAT AREA
San Joaquin County Multi-Species Habitat
Conservation and Open Space Plan

0.5 0 0.5 1 1.5 2 0.25
Miles

LAND CATEGORY / PAY ZONES

CATEGORY A
EXEMPT

NO PAY ZONE

CATEGORY B

OTHER OPEN SPACES

PAY ZONE A

CATEGORY C
AG. HABITAT OPEN SPACES
PAY ZONE B (Agricultural)

CATEGORY D

NATURAL LANDS HABITAT
PAY ZONE B (Natural)

CATEGORY E

VERNAL POOLS

PAY ZONE C

CATEGORY F

PRIOR AGREEMENT
µ
Compensation Map Certification
We, the undersigned, being the representatives of the Permitting Agencies as defined in the San Joaquin County Multi-Species Habitat Conservation and Open Space Plan (SJMSCP), do hereby certify that this compensation map dated June 4, 2004 for the City of Stockton to be in conformity with the provisions of the SJMSCP and shall be utilized in the manner as established in the SJMSCP. _______________________ Date:__________ ________________________ Date:_________ Ken Sanchez Terry Roscoe
Assistant Field Supervisor Habitat Conservation Supervisor Endangered Species Program California Department of Fish and Game U.S. Fish and Wildlife Service
San Joaquin Council of Governments
555 East Weber Avenue
Stockton, CA 95202

ATTACHMENT B
2092
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Surland SIIYa El Rancho AnY.!!!here Hieb �1-------..!.,_ _________ .l...---==========���5al::==i -� SJMSCP Index Zone -Primary Zone of the Delta C Preserve Location � CJ Central Zone CJ Southwest Zone
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Figure 1
Location of Preserves Monitored in 2023

ATTACHMENT C
2093
Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION APPROVING THE SAN JOAQUIN COUNTY MULTI-SPECIES HABITAT CONSERVATION AND OPEN SPACE PLAN 2025 DEVELOPMENT FEE

SCHEDULE
On February 20, 2001, the City Council of the City of Stockton adopted Resolution No. 01-0101 establishing the authority for the collection of a Development Fee for the San Joaquin County Multi-Species Habitat Conservation and Open Space Plan (SJMSCP) for all new developments pursuant to the SJMSCP within the City of Stockton; and A "Fee Study" dated July 16, 2001, was prepared which analyzed and identified the costs, funding, and cost-benefit of the SJMSCP; and The purpose of the SJMSCP Mitigation Fee is to finance the goals and objectives of the SJMSCP that include, but are not limited to, preserving land acquisition, preserving enhancement, land management, and the administration that compensate for such lands lost as a result of future development in the City of Stockton and San Joaquin County; and
After considering the Fee Study and the testimony received at the public hearing, the City Council approved said report and further found that the future development in the City of Stockton will need to compensate cumulative impacts to threatened, endangered, rare, and unlisted SJMSCP Covered Species and other wildlife and compensation for some non-wildlife-related impacts to recreation, agriculture, scenic values, and other beneficial Open Space uses; and
An "Updated Fee Study" was prepared by San Joaquin Council of Governments, Inc. in 2006, 2011, 2016 and 2020 which analyzed and identified the costs and funding of the SJMSCP; and
The SJMSCP Development Fees are divided into three categories: Category A – Acquisition; Category B – Enhancement; and Category C – Land Management/ Monitoring/Administration; and
To ensure that the SJMSCP development fees keep pace with inflation, annual adjustments are made to the fees based on the method previously adopted by the Stockton City Council; and
The method of annual adjustments was modified in 2011, 2016 and in 2020; and The City Council accepted the annual rate adjustment most recently in 2019, 2020, 2021, 2022, and 2023; now, therefore,
2094

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:

1. The City Council finds and declares that the purposes and uses of the Development Fee, and the determination of the reasonable relationship between the fees’ uses and the type of development project on which the fees are imposed, are valid and adopted as set forth herein.

2. The 2025 Development Fee shall be as set forth in the following table and will be effective January 1, 2025 – December 31, 2025:

Proposed 2025 SJMSCP Development Fees
Habitat Type Category A Category B Category C Total Fee Rounded Fee
Open Space
$4,804.00 $3,033.00 $409.47 $8,246.47 $8,246
AG/Natural
$9,608.00 $6,066.00 $817.74 $16,491.74 $16,492
Vernal Pool
(grasslands) $48,084.00 $15,386.00 $2,019.72 $65,489.72 $65,490 Vernal Pool
(wetted) $48,270.00 $127,031.00 $1,980.10 $177,281.10 $177,281

3. The Fee provided in this resolution shall be effective sixty (60) days after the adoption of this resolution pursuant to California Government Code section 66019(b).

4. The City Manager is authorized to take whatever actions are necessary and appropriate to carry out the purpose and intent of this Resolution.

PASSED, APPROVED, and ADOPTED November 12, 2024 .

KEVIN J. LINCOLN II
Mayor of the City of Stockton
ATTEST:

KATHERINE ROLAND, CMC, CPMC
Interim City Clerk of the City of Stockton
2095

SAN JOAQUIN COUNTY

MULTI-SPECIES HABITAT CONSERVATION

AND OPEN SPACE PLAN (SJMSCP)
2025 DEVELOPMENT FEE SCHEDULE
Agenda Item 16.4
City Council Meeting
November 12, 2024
2096
• Adopted November 14, 2000
• Provides strategy for protecting species and
(non-ag) open space
• Provides permanent preservation areas
• Voluntary option for developers
• City Council approved last update in 2023
• August 2024– SJCOG Board approved updated
fees (decrease from prior year)
Background
2097

STOCKTON
Compensation
Zone Map
2098
Proposed Fee Schedule
• 7.5% decrease due
to a decline in the
land acquisition
component
Torlai Preserve
Photo provided by SJCOG
2023 Annual Monitoring Photo Stations
2099
Proposed 2025 SJMSCP Fees
2024
Rounded
Fee
2025
Rounded
Fee
Habitat Type Category A Category B Category C Total Fee Open Space $4,804.00 $3,033.00 $409.47 $8,246.47 $8,246 $8,918 AG/Natural $9,608.00 $6,066.00 $817.74 $16,491.74 $16,492 $17,833 $48,084.00 $15,386.00 $2,019.72 $65,489.72 $65,490 $69,408 Vernal Pool (grasslands)
$48,270.00 $127,031.00 $1,980.10 $177,281.10 $177,281 $177,724 Vernal Pool
(wetted)
2100
• SJMSCP streamlines review while protecting
environmental resources
• Overall decrease in fees
• Financial model used to evaluate fees
annually by SJCOG
• Voluntary option for developers
• Participatory agencies must adopt annually
Conclusion
2101
Recommended Actions
• City Council adopt a Resolution approving
the SJMSCP 2025 Development Fee
Schedule
2102
City of Stockton
Legislation Text
File #: 24-1042, Version: 1
PROPOSITION 218 PUBLIC HEARING TO CONSIDER WASTEWATER RATE ADJUSTMENTS

AND ANY PROTESTS

RECOMMENDATION
It is recommended that the City Council approve a resolution:

1. Adopting the Draft Wastewater Rate Study (Study), dated August 2024, as prepared by HDR Engineering, Inc.

2. Approving the Wastewater Utility rate adjustments as identified in the Study if less than a majority of the affected record owners or affected sewer utility customers directly responsible for the payment of sewer service charges have submitted written protests.

It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.

Summary
In August 2023, the Municipal Utilities Department (MUD) retained HDR Engineering, Inc, to conduct a comprehensive Wastewater Rate Study that meets the requirements of California Constitution article XIII D, Section 6 (commonly referred to as Proposition 218 and referred to herein as “Article XIII D”). The objective of the Study (Exhibit 1) was to review the City of Stockton MUD Wastewater Utility operating, maintenance, and capital costs necessary to provide wastewater service to its customers. The Study revealed that current funding levels were insufficient to maintain operation activities and capital improvement projects. The Study proposes a five-year schedule of adjustments in the rates of the City wastewater service charges to ensure the Wastewater Utility has sufficient revenue to meet projected operation, maintenance, and capital project costs.

It is a best practice to review rates for sewer utility charges every five years to confirm that rates reflect changes in the cost to provide sewer service, and that the utility maintains adequate financial resources to provide an essential public health service to the community. If less than a majority of the record property owners or affected sewer utility customers directly responsible for the payment of sewer service charges submit valid City of Stockton written protests to the proposed rates, the City Council may adopt the Draft Wastewater Rate Study, dated August 2024, and approve wastewater rate adjustments as identified in the Study.

Approval of the proposed rate schedules will establish the maximum rates (Exhibit 2) that may be charged during the five-year period. Prior to implementing the proposed rate adjustments each fiscal year, City staff will review the revenue requirements and the rates necessary to meet those revenue requirements each fiscal year during the Annual Budget process.

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File #: 24-1042, Version: 1
It is recommended that the City Council adopt the Draft Wastewater Rate Study, dated August 2024, and approve the proposed five-year rate schedules.

DISCUSSION
Background
The most recent wastewater utility rate study was completed in 2019 and included the adoption of phased rate adjustments over a five-year period. The last wastewater rate adjustment went into effect on July 1, 2023.

The wastewater utility rate adjustments in 2019 included funding for the Regional Wastewater Control Facility (RWCF) Plant Modifications Project (Project). The City was awarded $108 million from the Water Infrastructure Finance and Innovation Act of 2014 (WIFIA), $46.8 million from the Clean Water Act State Revolving Fund (SRF), and $9.5 million from Proposition 50, the Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002. This funding reduced or eliminated the need to issue bonds to fund the Project. The main goal for the Project was to meet new nitrate and nitrite discharge limits required by the State. The construction of the new treatment processes is nearly complete and the RWCF met the new limits by the June 2024 deadline. Construction of the remaining building elements is scheduled for completion in early 2025. A rate study, and proposed rate adjustments, may include adjustments for up to five years.

On August 22, 2023, the City Council awarded a contract to HDR Engineering, Inc (HDR) to prepare a rate study that meets the requirements of Article XIII D. HDR was tasked to evaluate the Wastewater Utility revenue requirements, prepare a cost-of-service analysis, and design rates that equitably and proportionately allocate the costs of service among all customer classes and customers within each class.

On August 6, 2024, and August 7, 2024, the Draft Study and proposed rate adjustments were presented to the Water Advisory Group and Council Water Committee, respectively. Following the Water Advisory Group’s recommendation, the Council Water Committee approved forwarding the proposed wastewater rate adjustments to the City Council for consideration and to proceed with the Article XIII D notice and Public Hearing process. On August 20, 2024, the City Council approved mailing a Notice of Public Hearing (Notice) to all property owners and wastewater utility customers and set the public hearing to hear protests.

Present Situation
In the HDR analyses, the proposed wastewater rates were developed to meet the requirements of Article XIII D. A key component of Article XIII D requires that the wastewater rates may not exceed the cost of providing wastewater service, and the amount of the wastewater service charges imposed upon any parcel or person shall not exceed the proportional cost of the service attributable to the parcel. The revenue requirements for the wastewater utility are allocated to the different customer classes based on the respective volume and strength of sewer discharge produced, and customer classes. Customer classes include residential (including single family), multi-family, apartments, commercial, institutional, and industrial. Customers include those located within the City limits and Non-City customers include those properties outside the limits of the City of Stockton and within San City of Stockton Page 2 of 5 Printed on 11/7/2024
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File #: 24-1042, Version: 1
Joaquin County unincorporated areas. The rate design reflects the revenue requirement findings, meets the City’s goals and objectives, is cost-based, and equitably and proportionately distributed among all the customer classes.

The Study exclusively evaluated potential adjustments to the rates of the wastewater service charges; connections fees were not a part of this study. To determine the appropriate level of revenue for the utility, HDR conducted a maintenance and operations evaluation from FY 2024-25 through FY 2028-29. Three interrelated analyses were used to address the adequacy and equity of the proposed utility rates including:
· The revenue requirement analysis, which compares the revenues to the expenses of the utility to determine the overall rate adjustment required.
· The cost-of-service analysis, which allocates the revenue requirement of the utility to the various customer classes of service in a fair and equitable manner. · The rate design analysis, which considers both the level and structure of the rate design to collect the necessary amount of revenue.

The results of these three analyses indicate that the current wastewater rates are not sufficient to meet the operation and capital needs of the utility; therefore, the wastewater rates must be adjusted to meet the utility’s revenue requirement. The proposed wastewater rates for each customer class over the next five-year period are shown in the tables below:

Summary of Proposed Monthly Residential Wastewater Rates Present
Rates
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Residential Charge (Per
Dwelling Unit)
Single-Family & Condo
(City)
$55.68 $57.36 $59.65 $62.04 $64.52 $67.10
Single-Family & Condo
(Non-City)
$50.77 $52.30 $54.39 $56.57 $58.83 $61.18
Multi-Family (City) $52.45 $52.86 $54.97 $57.17 $59.46 $61.84 Multi-Family (Non-City) $47.05 $47.42 $49.32 $51.29 $53.34 $55.47 Apartments (City) $47.57 $47.57 $49.47 $51.45 $53.51 $55.65 Apartments (Non-City) $41.75 $41.75 $43.42 $45.16 $46.97 $48.85 City of Stockton Page 3 of 5 Printed on 11/7/2024
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Summary of Proposed Monthly Commercial/Institutional Wastewater Rates Present
Rates
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Consumption Charges
($/CCF1)
Com/Inst - Low-strength $2.22 $2.40 $2.50 $2.60 $2.70 $2.81 Com/Inst - Med-strength $2.70 $2.75 $2.86 $2.97 $3.09 $3.21 Com/Inst - High-strength $4.54 $4.42 $4.60 $4.78 $4.97 $5.17 Schools ($/ADA2) $1.30 $1.29 $1.34 $1.39 $1.45 $1.51
Fixed Monthly Charge (City) $26.83 $26.91 $27.99 $29.11 $30.27 $31.48 Fixed Monthly Charge (NonCity)$23.56 $23.63 $24.58 $25.56 $26.58 $27.64 1 - CCF = one hundred cubic feet 2 - ADA = average daily attendance Summary of Proposed Monthly Industrial Wastewater Rates Present
Rates
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Industrial Charges
Fixed Monthly Charge $26.83 $26.91 $27.99 $29.11 $30.27 $31.48 Admin / Stand-by
Charge
Industrial - Flow
($/MG1)
$864.80 $945.76 $983.59 $1,022.93 $1,063.85 $1,106.4
0 Industrial - BOD
($/Klbs2)
$140.13 $153.25 $159.38 $165.76 $172.39 $179.29
Industrial - SS ($/Klbs) $102.88 $112.51 $117.01 $121.69 $126.56 $131.62 Consumption Charges
Industrial - Flow ($/MG) $748.52 $818.59 $851.33 $885.38 $920.80 $957.63 Industrial - BOD
($/Klbs)
$52.14 $57.02 $59.30 $61.67 $64.14 $66.71
Industrial - SS ($/Klbs) $83.45 $91.26 $94.91 $98.71 $102.66 $106.77 1 - MG = million gallons 2 - Klbs = one thousand pounds If less than a majority of the record property owners or affected water utility customers directly responsible for the payment of water service charges submit valid City of Stockton written protests to the proposed rates, the City Council may adopt the Draft Wastewater Rate Study, dated August 2024, and approve wastewater rate adjustments as identified in the Study.

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Public Outreach and Notification
MUD staff provided information about the Study and an overview of the legal process requirements of Article XIII D to the Water Advisory Group on August 6, 2024, and Council Water Committee on August 7, 2024.

On August 20, 2024, the City Council authorized MUD staff to mail a Notice to all City of Stockton Wastewater Utility customers and the record owners of property upon which the rates and charges are proposed for imposition.

Public Hearing Notices were mailed to record property owners and sewer utility customers. The Notice included information on the amount of the proposed adjustments; the reasons for the adjustments; the date, time and location of the Public Hearing; and instructions to protest the proposed adjustments. Record property owners and Wastewater Utility customers who wish to submit a protest were instructed to do so in writing and submit it directly to the Office of the City Clerk on or before the close of the Public Hearing. Any written protest containing the required information as stated in the Notice will be counted by the City Clerk before the close of the public hearing.

Property owners and customers can both submit a protest, but only one protest is counted per parcel.

The Notice listed November 12, 2024, at 5:30 p.m. as the date and time of the Public Hearing. The date and time of the Public Hearing have also been published on the City webpage at www.stocktonca.gov/SewerRates, announced at public meetings, and published in The Record on October 23, 2024, and October 30, 2024.

In addition, a dedicated phone line, and Ask Stockton topic were created to provide community members with additional ways to contact the City for questions and information on the proposed wastewater rate adjustments. The phone line is a message line. All calls were returned by a knowledgeable individual within two business days. An informational meeting was held on September 26, 2024, at Stribley Community Center. The meeting included a presentation about the proposed rates, and an opportunity for customers to ask questions. The presentation was recorded and is available at www.stocktonca.gov/SewerRates.

FINANCIAL SUMMARY
If approved, the proposed Wastewater rate adjustments will generate sufficient revenues over the next five years to pay for Wastewater Utility operation and maintenance costs, infrastructure needs, capital improvement projects, in addition to maintaining bond coverage covenants.

There is no impact to the General Fund, or any other unrestricted funds, from this action.

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Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION ADOPTING THE WASTEWATER RATE STUDY AND APPROVING

THE WASTEWATER RATE ADJUSTMENTS
On August 22, 2023, by Resolution 2023-08-22-1214, the Stockton City Council approved a professional services contract with HDR Engineering, Inc., to evaluate the Wastewater Utility revenue requirements, prepare a cost-of-service analysis, and design rates that proportionately allocate the costs of providing wastewater service among all customer classes and customers within each class; and
The Draft Wastewater Rate Study, dated August 2024, and attached as Exhibit 1 to the Resolution, is complete and indicates the need to adjust the rates for the City wastewater service charges to enable the Wastewater Utility to meet its projected operation, maintenance, and capital improvement costs; and On August 20, 2024, this Council adopted Resolution 2024-08-20-1222, which authorized the mailing a notice of a Proposition 218 Public Protest Hearing (Notice) to be held no less than 45 days from the mailing of the Notice at 5:30 p.m. in the City Hall at 425 N. El Dorado Street, Stockton, California, to take testimony and consider written protests to the proposed wastewater rate adjustments and final action on the Wastewater Rate Study, dated August 2024; and
A certificate has been filed with the City Clerk setting forth the time and manner of the compliance with the requirements of law for mailing notice of the time and place for said Public Hearing and the Notice required by Article XIIID of the California Constitution has been done in the time, form, and manner required by law; and The Notices were mailed to the record owners of any parcels upon which the wastewater service charges are proposed for, and any customers who are directly responsible for the payment of wastewater service charges; and The Notices were mailed on September 20, 2024, to 81,847 affected customers and property owners; and
Notice of the time and place of the Public Hearing was published in The Record on October 23 and October 30, 2024; and
The Draft Wastewater Rate Study, dated August 2024, containing the proposed rates, was made available at www.stocktonca.gov/SewerRates and placed on file with the City Clerk; and
The City Council held the Public Hearing on November 12, 2024, not less than forty-five days after the Notice was mailed, and at the Public Hearing the City Council heard all oral testimony, and considered all written materials and written protests 2108
concerning the adoption and imposition of the proposed adjustments to the rates for the wastewater services charges; and
At the close of the Public Hearing, the City did not receive written protests regarding the establishment and imposition of the proposed adjustments to the rates for wastewater services charges from a majority of the affected property owners or affected sewer utility customers who are not property owners but are directly liable for the payment of the wastewater service charges; and
The City Council is authorized and has determined to approve the proposed wastewater rate adjustments and act accordingly on the matter; now, therefore,

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:

1. The matters set forth above are true and correct statements and are made legislative findings and determinations of the City Council and by this reference are made an operative part of this Resolution.

2. The City Council adopts the Final Wastewater Rate Study, dated August 2024, attached as Exhibit 1, and incorporated by this reference.

3. The City Council has evaluated and adopts the wastewater service charges at the maximum rates and on the effective dates set forth in Exhibit 2 to this Resolution.

4. The City Council finds that the revenues derived from the wastewater service charges established by this Resolution: (a) do not exceed the funds required to provide wastewater services; (b) shall not be used for any other purpose than that for which the rates and charges are imposed; (c) do not exceed the proportional cost of the service attributable to each parcel upon which the charges are imposed; (d) provide services that are immediately available to the customer; and (e) are not levied for general governmental purposes.

5. The City Manager is hereby authorized to take whatever actions are necessary and appropriate to carry out the purpose and intent of this Resolution.

6. In accordance with the California Environmental Quality Act (CEQA) and the CEQA Guidelines, the City Council has determined that the adjustments in the wastewater service charges are exempt from CEQA pursuant to section 15378 and section 15273 of the CEQA Guidelines and the Public Resources Code section 21080(b)(8) because: (a) the adjusted charges are for the purpose of meeting operational and maintenance expenses of the aforementioned services; and (b) the charges constitute the creation of a funding mechanism/or other governmental fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. The documents and materials that constitute the record of proceedings on which these findings have been based are in the Office of the City Clerk at 425 N. El Dorado Street, Stockton, CA, 95202. 2109

7. If any section, subsection, subdivision, sentence, clause, or phrase in this Resolution or any part thereof is for any reason held to be unconstitutional or invalid, or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Resolution or any part thereof. The City Council hereby declares that it would have adopted any section irrespective of the fact that any one or more subsections, subdivision, sentences, clauses, or phrases be declared unconstitutional, invalid, or ineffective.

8. All resolutions, ordinances, or administrative actions by the City Council, or parts thereof, that are inconsistent or in conflict with any provision of this Resolution are hereby superseded only to the extent of such inconsistency or conflict.

9. This Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED, and ADOPTED November 12, 2024 .

KEVIN J. LINCOLN II
Mayor of the City of Stockton
ATTEST:

KATHERINE ROLAND, CMC, CPMC
Interim City Clerk of the City of Stockton
2110
City of Stockton
Municipal Utilities Department
Comprehensive Wastewater
Rate Study
August 2024
Draft Report
EXHIBIT 1
2111
hdrinc.com
2365 Iron Point Road, Suite 300, Folsom, CA US 95630-8709 (916) 817-4700
August 12, 2024
Ms. Deedee Antypas
Deputy Director of Wastewater Operations
City of Stockton Municipal Utilities Department
2500 Navy Drive
Stockton, CA 95206
Subject: Wastewater Draft Rate Study Report
Dear Ms. Antypas:

HDR Engineering, Inc. (HDR) is pleased to present to the City of Stockton Municipal Utilities Department (Department) the draft report for the comprehensive wastewater rate study (Study).

The Department’s comprehensive study was developed to provide cost-based rates that generate sufficient revenue to fund the operation and maintenance and capital needs of the wastewater utility. More specifically, the study was designed to develop proportional rates for the Department’s customers and specific rate schedules. This report outlines the overall approach used to achieve these objectives, along with our findings, conclusions, and recommendations.

The costs associated with providing wastewater services to the Department’s customers has been developed based on Department specific information and is included within the development of the proposed rates. The Study was developed utilizing industry recognized generally accepted rate setting principles and methodologies as outlined in the Water Environment Federation’s Financing Charges for Wastewater Systems Manual of Practice No. 27 tailored to the Department’s specific wastewater system and customer characteristics. This report provides the basis for developing and implementing wastewater rates which are costbased, proportional, and defensible for the Department’s customers.

We appreciate the assistance provided by the Department’s project team in the development of the Study. More importantly, HDR appreciates the opportunity to provide these technical and professional services to the City of Stockton Municipal Utilities Department.

Sincerely yours,
HDR Engineering, Inc.

Shawn Koorn
Associate Vice President
EXHIBIT 1
2112
Table of Contents i
City of Stockton – Comprehensive Wastewater Rate Study
Executive Summary 1
Introduction ........................................................................................................................ 1 Overview of the Rate Study Process .................................................................................... 1 Key Wastewater Rate Study Results .................................................................................... 2 Summary of the Wastewater Revenue Requirement Analysis ............................................. 2 Summary of the Wastewater Cost of Service Analysis ......................................................... 6 Summary of the Wastewater Rate Designs .......................................................................... 7 1 Introduction and Overview 10

1.1 Introduction ............................................................................................................ 10

1.2 Goals and Objectives .............................................................................................. 10

1.3 Overview of the Rate Study Process ........................................................................ 10

1.4 Organization of the Study ....................................................................................... 11

1.5 Summary ................................................................................................................ 12 2 Overview of Rate Setting Principles 13

2.1 Introduction ............................................................................................................ 13

2.2 Generally Accepted Rate Setting Principles ............................................................. 13

2.3 Determining the Revenue Requirement .................................................................. 13

2.4 Analyzing Cost of Service ........................................................................................ 14

2.5 Designing Utility Rates ............................................................................................ 15

2.6 Economic Theory and Rate Setting .......................................................................... 15

2.7 Summary ................................................................................................................ 15 3 Wastewater Revenue Requirement 16

3.1 Introduction ............................................................................................................ 16

3.2 Determining the Revenue Requirement .................................................................. 16

3.2.1 Establishing a Time Frame and Approach ................................................... 16

3.2.2 Projecting Rate and Other Miscellaneous Revenues .................................. 17

3.2.3 Projecting Operation and Maintenance Expenses ...................................... 18

3.2.4 Projecting Capital Funding Needs............................................................... 19

3.2.5 Projection of Debt Service.......................................................................... 21

3.2.6 Reserve Funding ........................................................................................ 21

3.2.7 Summary of the Wastewater Revenue Requirement ................................. 21 Table of Contents
EXHIBIT 1
2113
Table of Contents ii
City of Stockton – Comprehensive Wastewater Rate Study

3.3 Consultant’s Conclusions ........................................................................................ 23

3.4 Summary ................................................................................................................ 24 4 Wastewater Cost of Service 25

4.1 Introduction ............................................................................................................ 25

4.1.1 Objectives of a Cost of Service Analysis ...................................................... 25

4.2 Determining the Customer Classes of Service ......................................................... 25

4.3 General Cost of Service Procedures ........................................................................ 26

4.3.1 Functionalization of Costs .......................................................................... 26

4.3.2 Allocation of Costs ..................................................................................... 27

4.3.3 Development of Distribution Factors ......................................................... 27

4.4 Summary of the Wastewater Cost of Service Analysis ............................................. 29

4.5 Consultant’s Conclusions and Recommendations ................................................... 36

4.6 Summary ................................................................................................................ 36 5 Wastewater Rate Design Analysis 37

5.1 Introduction ............................................................................................................ 37

5.2 Rate Design Criteria and Considerations ................................................................. 37

5.3 Development of Cost-Based Wastewater Rates ...................................................... 37

5.4 Overview of the Proposed Rate Adjustments .......................................................... 38

5.5 Overview of the Current Wastewater Rate Structure .............................................. 41

5.6 Summary of the Wastewater Rates ......................................................................... 41

5.7 Summary of the Wastewater Rate Design ............................................................... 43 Technical Appendix – Wastewater 44
EXHIBIT 1
2114
Executive Summary 1
City of Stockton – Comprehensive Wastewater Rate Study
Executive Summary
Introduction
HDR Engineering, Inc. (HDR) was retained by the City of Stockton Municipal Utilities Department (Department) to conduct a comprehensive wastewater rate study (Study). The main objectives of the Study were to:

Develop a projection of wastewater revenues to support the Department’s operating and capital costs
Proportionately distribute the costs of providing wastewater service to the customers receiving service
Propose cost-based and proportional wastewater rates for a multi-year time period that are in compliance with State law
The Department owns, operates, and maintains the wastewater system, which provides services to customers within the City of Stockton and the surrounding area. The costs associated with providing wastewater service to the Department’s customers have been based on the information developed and provided by City staff and are the basis for the proposed rates.

Overview of the Rate Study Process
A comprehensive rate study uses three interrelated analyses to address the adequacy and proportionality of a utility’s rates. These three analyses are a revenue requirement analysis, a cost of service analysis, and a rate design analysis. These three analyses are illustrated below in Figure ES - 1.

Figure ES – 1
Overview of the Comprehensive Wastewater Rate Analysis
Revenue Requirement Analysis
Cost of Service Analysis
Rate Design Analysis
Compares the revenues to the expenses
to determine the overall revenue
adjustment required
Distributes the revenue requirement to
the customer classes of service in a
proportional manner
Considers both the level and
structure of the rate design to collect
the target level of revenues
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The above framework was utilized in the development of the Study for reviewing and evaluating the Department’s wastewater rates.

Key Wastewater Rate Study Results
The Study technical analysis was developed based on the operating and maintenance (O&M) and capital costs necessary to provide wastewater services to the Department’s customers. The wastewater analysis resulted in the following findings, conclusions, and recommendations. „ A revenue requirement analysis was developed for the projected time period of FY 2023-24 through FY 2032-33 for the wastewater utility.
„ The Department’s FY 2023-24 and FY 2024-25 wastewater utility adopted budgets were used as the starting point of the analysis.
„ Operation and maintenance (O&M) expenses are projected to increase at inflationary levels with no assumed changes to levels of service or anticipated extraordinary expenses. „ A cost of service analysis was developed to review the equity of the existing rates and to proportionately distribute the revenue requirement between the identified wastewater customer classes of service and customers within each class. „ The results of the cost of service analyses provided the unit costs (i.e., cost basis) which were used to establish the proposed wastewater rates for each customer class of service. „ Previous droughts and State mandated water consumption reductions, along with the number of customers by customer class, have impacted customer water consumption levels since the prior study, which in turn has changed the discharge patterns of the Department’s customers and, therefore, the volume related revenues and treatment expenses for the wastewater utility.
„ The Study has developed proposed rates for the FY 2024-25 – FY 2028-29 time period for each customer class of service.
„ The proposed wastewater revenue adjustments average 4.0%, annually, from FY 2024-25 through FY 2028-29.

Summary of the Wastewater Revenue Requirement Analysis
The Department’s wastewater utility revenue requirement analysis is the first analytical step in the comprehensive rate study process. The revenue requirement analysis determines the adequacy of the current wastewater rates to fund current and future costs related to both O&M and capital needs. From this comparison, a determination can be made as to the overall level of wastewater rate revenue adjustments needed to provide adequate and prudent funding for the wastewater utility.

For the Study, the revenue requirement was developed for the budgeted years FY 2023-24 and FY 2024-25 and a projected time period (FY 2025-26 – FY 2032-33). As a practical matter, a multiyear time frame is recommended in an attempt to identify major expenses that may be on the horizon. By anticipating future financial requirements, the Department may begin planning for these changes sooner, thereby minimizing short-term rate impacts and overall long-term rates.

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While a long-term time period (i.e., 10-years) was developed, the focus of the Study was on the next five-year rate setting period of FY 2024-25 – FY 2028-29.

The revenue requirement analysis was developed using the “cash basis” approach. The cash basis approach is an industry standard approach and one of the most commonly used approaches by municipal utilities to set their revenue requirement. Under this approach, the revenues of the utility must be sufficient to recover all cash needs, including O&M expenses, transfer payments, annual debt service payments, and capital projects funded through rates (rate funded capital).

The primary financial inputs in the development of the revenue requirement were the Department’s FY 2023-24 and FY 2024-25 budget documents, historical billed customer and consumption data, and the Department’s wastewater capital improvement plan. Budgeted O&M expenses were projected using inflationary factors for the Department’s various expenses to provide wastewater collection, conveyance, treatment, and disposal services over the projected time period. These inflationary factors were based on historical Department specific increases in costs and planned changes based on City of Stockton planning and financial projection studies and analyses.

The proper and adequate funding of capital projects is important to help minimize rate increases over time. General financial guidelines state that, at a minimum, a utility should fund an amount equal to, or greater than, the annual depreciation expense through rates. The annual depreciation expense reflects the current investment in plant facilities in service being depreciated or “losing” their useful life. This portion of plant investment needs to be replaced to maintain the existing level of infrastructure (and service levels). However, it must be kept in mind that, in theory, the annual depreciation expense reflects an investment in infrastructure that was placed in service an average of 15 years ago, assuming a 30-year useful, depreciable, life. Simply funding an amount equal to the annual depreciation expense will not be sufficient to fund the replacement of an existing or depreciated facility. Therefore, consideration should be given to funding within rates some amount greater than the annual depreciation expense for renewals and replacements.

As a part of this Study, the Department made a concerted effort to increase the overall level of “pay-as-you-go” (rate) funding as part of the Department’s capital improvement plan to maintain the wastewater system (e.g., renewal and replacement needs). Provided below in Table ES - 1 is a summary of the capital funding analysis. This shows the annual level of capital projects identified by the Department, the other funding sources (available reserves), and the amount of rate funded capital over the five-year rate setting period. A more detailed discussion of the capital funding plan is included in Section 3.5 of this report.

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Table ES – 1
Summary of the Wastewater Annual Rate Funded Capital ($000) FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Total Capital
Improvement Projects $15,000 $20,579 $35,416 $37,900 $35,000 $19,500 Less: Other Funding 0 4,579 18,416 19,900 16,500 0
Total Rate Funded
Capital $15,000 $16,000 $17,000 $18,000 $18,500 $19,500 As a point of reference, the Department’s annual depreciation expense is approximately $12.9 million (FY 2022-23). The Study has placed the Department’s rate funding for capital improvements at $15.0 million and increases annually over the Study time period to prudently fund capital renewal and replacement needs. In developing this funding plan, HDR and the Department have attempted to minimize rate impacts while funding the necessary capital improvement plan projects of the Department. HDR has worked with the Department’s financial staff and external financial advisors to develop the proposed financing plan. It is important to note that HDR is not acting in a municipal advisory role to the Department.

Given a projection of O&M and capital expenses, a summary of the wastewater revenue requirement analysis was developed. Provided below in Table ES - 2 is a summary of the revenue requirement analysis for the Department’s wastewater utility.

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Table ES - 2
Summary of the Wastewater Revenue Requirement Analysis ($000) FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Revenues
Rate Revenues $90,747 $91,655 $92,571 $93,497 $94,432 $95,376 Other Revenues 2,615 2,669 2,566 2,538 2,287 1,975
Total Revenues $93,362 $94,324 $95,137 $96,035 $96,719 $97,352 Expenses
O&M Expenses $72,510 $77,803 $80,837 $83,945 $87,123 $90,434 Rate Funded Capital 15,000 16,000 17,000 18,000 18,500 19,500 Net Annual Debt Service 5,687 7,502 7,683 7,684 7,686 7,688 To / (From) Reserves 166 (4,843) (2,830) (1,919) (550) 393 Total Expenses $93,362 $96,462 $102,691 $107,709 $112,759 $118,015 Bal./(Def.) of Funds $0 ($2,139) ($7,554) ($11,674) ($16,040) ($20,664) Bal. as a % of Rate Rev. 0.0% 2.3% 8.2% 12.5% 17.0% 21.7% Proposed Revenue
Adjustment 0.0% 4.0% 4.0% 4.0% 4.0% 4.0%
Add’l Rev. from Adjustment $0 $2,139 $7,554 $11,674 $16,040 $20,664 Total Bal./(Def.) of Funds $0 $0 $0 $0 $0 $0

As can be seen, the revenue requirement has summed the O&M expense, rate funded capital, net debt service, and reserve funding. The total revenue requirement is then compared to the total sources of funds, which include the rate revenues, at present rate levels, and other miscellaneous revenues. From this comparison, a balance or deficiency of funds in each year can be determined. This balance or deficiency of funds is then compared to the current level of rate revenues to determine the level of adjustment needed to meet the revenue requirement. It is important to note that the “Bal. / (Def.) of Funds” row is cumulative. That is, any adjustments in the initial years will reduce the deficiency in the later years. Over this Study time period, the total deficiency of rate revenue is 21.7%. As a point of reference, the revenue adjustment for FY 2024- 25, if adopted by the City Council, would be implemented in December 2024 for the remainder of FY 2024-25.

Based on the revenue requirement analysis developed herein, HDR has concluded that the Department will need to adjust the level of wastewater revenues received over the next five fiscal years (FY 2024-25 – FY 2028-29). HDR has reached this conclusion for the following reasons:
„ Adjustments are necessary to fund the Department’s capital needs, of which is driven by completing the RWCF Modification Project upgrades, annual system renewal and replacement needs, and major projects like the Fourteen Mile Slough Sanitary Pump Station Rebuild and Westside Interceptor Parallel Force Main projects. „ Adjustments are necessary to maintain prudent funding of annual inflationary increases to O&M expenses to maintain wastewater services for the Department’s customers.

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„ The proposed adjustments maintain the Department’s strong financial health (e.g., debt service coverage ratios) and provide long-term, sustainable funding levels for the Department.

In reaching this conclusion, HDR would recommend that the Department adopt the proposed revenue adjustments for FY 2024-25 through FY 2028-29 to provide sufficient funding for the O&M and capital improvement needs over the Study time period. A more detailed discussion of the development of the revenue requirement is provided in Section 3 of this report.

Summary of the Wastewater Cost of Service Analysis
A cost of service analysis determines the proportional distribution of the revenue requirement to the identified customer classes of service to establish the proposed wastewater rates. The objective of the cost of service analysis is different from determining the revenue requirement.

Whereas the revenue requirement analysis determines the utility’s overall revenue needs, the cost of service analysis determines the proportional distribution of the revenue requirement to establish proposed rates for the proposed time period. In this case, the revenue requirement for FY 2024-25, the first year of the proposed rate transition plan, was used for establishing the cost of service analysis.

In summary form, the cost of service analysis began by functionalizing the revenue requirement for the wastewater system. As explained in more detail later in this report, the functionalized revenue requirement is then allocated to the appropriate cost component(s). The individual functional allocated totals are proportionately distributed to the identified customer classes of service based on each customer class’s use of or demand placed on the system. The Department’s customer classes are based on the current rate schedules which reflects the different types of customers served. This includes single family and condos, multi-family, apartments, commercial, and industrial customers. The distributed expenses for each customer class were then aggregated to determine each customer class’s overall revenue responsibility. Table ES - 3 provides the summary of the cost of service analysis completed for the Department’s wastewater utility customers.

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Table ES - 3
Summary of the Wastewater Cost of Service Analysis ($000) Class of Service
Current
Rate Revenues
Distributed
Costs
$
Difference
%
Difference
Single Family & Condo $57,144 $58,836 ($1,691) 3.0%
Multi-Family 5,496 5,539 (43) 0.8%
Apartments 16,548 16,553 (4) 0.0%
Com / Inst
Low Strength $372 $394 ($21) 5.7%
Medium Strength 4,807 4,837 (30) 0.6%
High Strength 1,895 1,833 62 -3.3%
Schools 933 926 7 -0.7%
Industrial 4,459 4,876 (417) 9.4%
Total $91,655 $93,793 ($2,139) 2.3%
The results of the cost of service analysis indicate cost differences between the customer classes of service. Given the requirements of California Constitution Article XIII D, Section 6 (commonly referred to as Proposition 218), the results of the wastewater cost of service analysis are used to establish the proposed rates. As noted in the cost of service chapter of this report, the implementation of cost of service adjustments will impact the overall customer bill and revenue generation for the wastewater utility. These results are driven by the Department’s system and customers characteristics, which have changed since the prior study. Given the development of the cost of service analysis, HDR would recommend the implementation of the proposed wastewater rates based on the Study results. A detailed discussion of the development of the cost of service analysis is provided in Section 4 of this report.

Summary of the Wastewater Rate Designs
The final step of the comprehensive rate study process is the design of the wastewater rates to collect the desired levels of revenue, based on the results of the revenue requirement and cost of service analyses. The revenue requirement analysis provided a set of recommendations related to annual revenue adjustments, while incorporating the cost of service results and implementing interclass adjustments to reflect the proportionality of each customer class of service.

The Department currently has a rate structure for each of the customer classes of service. For residential customers, which includes Single-Family, Condominiums, Multi-Family, and Apartments, a monthly flat rate is charged on a per living unit basis. It is important to understand that each customer class has a separate rate given different customer characteristics, such as assumed volume contributions, as outlined in the cost of service analysis. Within the Commercial/Institutional customer class, there are four subclasses of customers, based on the type of activity and the strength of wastewater they discharge into the Department’s wastewater EXHIBIT 1
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system. These customers are charged a monthly fixed charge as well as a consumption charge based on the estimated discharge of wastewater in hundred cubic feet (CCF) and the strength of the customer’s discharges, which are classified as low, medium, or high. Schools are charged a fixed charge as well as a variable charge based on their projected average daily attendance.

Finally, Industrial customers are charged on a fixed and consumption-based approach, including a charge based on the actual strength of the wastewater discharged to the Department’s system.

Given the results of the revenue requirement and cost of service analyses, proposed rates have been developed that reflect the proportional distribution of the costs of providing wastewater service to the different customer classes of service. It is important to note that the structure of the proposed rates have not changed, and it is not recommended to do so at this time. Therefore, only the level of rates has been adjusted in order to meet the revenue requirement of the Department’s wastewater utility. Furthermore, the rates for FY 2024-25 are based on the unit costs developed in the cost of service analysis. The proposed wastewater rates, thereafter, are increased by the annual revenue requirement adjustment.

Provided in Table ES – 4 is a summary of the current and proposed rates for the Residential customer class. Notably, the proposed Non-City customer rates are based on the agreements between the County and the City and reflect the proportional use of the Department’s wastewater system. Due to these agreements and that the cost of service unit costs are blended rates, the differential between the City and Non-City customer rates will not match the average unit costs exactly. The rate design reflects the agreement and calculation of the proposed rates for City and Non-City customers.

Table ES – 4
Summary of the Present and Proposed Residential Wastewater Rates ($/Living Unit)
Present
Rates
FY 2024-
25 FY 2025-
26 FY 2026-
27 FY 2027-
28 FY 2028-
29 Single Family & Condo
City Customer $55.68 $57.36 $59.65 $62.04 $64.52 $67.10 Non-City Customer 50.77 52.30 54.39 56.57 58.83 61.18
Multi-Family
City Customer $52.45 $52.86 $54.97 $57.17 $59.46 $61.84 Non-City Customer 47.05 47.42 49.32 51.29 53.34 55.47
Apartments
City Customer $47.57 $47.57 $49.47 $51.45 $53.51 $55.65 Non-City Customer 41.75 41.75 43.42 45.16 46.97 48.85
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Provided in Table ES - 5 is a summary of the current and proposed Commercial rates, which also include City and Non-City rates as mentioned previously.

Table ES – 5
Summary of the Present and Proposed Commercial/Institutional Wastewater Rates
Present
Rates
FY 2024-
25 FY 2025-
26 FY 2026-
27 FY 2027-
28 FY 2028-
29 Base Charge ($/Account)
City Customer $26.83 $26.91 $27.99 $29.11 $30.27 $31.48 Non-City Customer 23.56 23.63 24.58 25.56 26.58 27.64
Consumption Charge ($/CCF)
Low Strength $2.22 $2.40 $2.50 $2.60 $2.70 $2.81
Medium Strength 2.70 2.75 2.86 2.97 3.09 3.21
High Strength 4.54 4.42 4.60 4.78 4.97 5.17
Schools ($ / ADA) 1.30 1.29 1.34 1.39 1.45 1.51
Similar to how the Residential and Commercial customer class rates were developed, the Industrial rates were increased according to the results of the cost of service analysis. Table ES – 6 below shows a summary of the present and proposed Industrial rates.

Table ES – 6
Summary of the Present and Proposed Industrial Wastewater Rates Present
Rates
FY 2024-
25 FY 2025-
26 FY 2026-
27 FY 2027-
28 FY 2028-
29 Admin / Stand-by Charge
Base Charge $26.83 $26.91 $27.99 $29.11 $30.27 $31.48
Flow - $ / mg 864.80 945.76 983.59 1,022.93 1,063.85 1,106.40 BOD - $ / 1,000 lbs 140.13 153.25 159.38 165.76 172.39 179.29 SS - $ / 1,000 lbs 102.88 112.51 117.01 121.69 126.56 131.62 Consumption Charge
Flow - $ / mg $748.52 $818.59 $851.33 $885.38 $920.80 $957.63 BOD - $ / 1,000 lbs 52.14 57.02 59.30 61.67 64.14 66.71 SS - $ / 1,000 lbs 83.45 91.26 94.91 98.71 102.66 106.77 The development of the rate designs is outlined in detail in Section 5 of this report.

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Introduction and Overview 10
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1 Introduction and Overview

1.1 Introduction
HDR was retained by the City of Stockton Municipal Utilities Department to conduct a comprehensive wastewater rate study. The objective of the Study was to review the Department’s operating and capital costs to develop a financial plan for the wastewater utility on a standalone basis as well as cost-based rates that comply with State law. The Study reviewed the adequacy of the existing wastewater rates and provides the framework, cost basis, and proportionality for the proposed wastewater rates.

The Department owns and operates the wastewater system in Stockton, California and includes the collection, conveyance, treatment, and disposal of wastewater generated by properties within the city and certain properties in unincorporated areas of the County. The costs associated with providing wastewater services to customers have been developed based on financial and operating data provided by the Department and included within the development of the Study.

1.2 Goals and Objectives
The Department had a number of key objectives in developing the wastewater rate study. These key objectives provided a framework for policy decisions in the analyses that followed. The key objectives were:
„ Develop the Study in a manner that is consistent with the principles and methodologies established by the Water Environment Federation (WEF) Manual of Practice No. 27, Financing and Charges for Sewer Systems (WEF MOP #27).
„ In financial planning and establishing the Department’s rates, review and utilize best industry practices, while recognizing and acknowledging the specific and unique characteristics of the Department’s wastewater system and customers. „ Review the Department’s rates utilizing “generally accepted” rate making (cost of service) methodologies to determine the adequacy of the utility rates. „ Meet the Department’s financial planning criteria and goals, such as debt service coverage ratios, adequate funding of capital infrastructure replacement, and maintenance of adequate and prudent reserve levels.
„ Develop a financial plan which adequately supports the wastewater utility’s funding requirements, while attempting to minimize overall impacts to rates. „ Provide rates designed to meet the intent and requirements of California Constitution Article XIII D, Section 6 (commonly referred to as Proposition 218).

1.3 Overview of the Rate Study Process
User rates must be set at a level where a utility’s O&M and capital expenses are met with the revenues received from customers. This is an important point, as failure to achieve this objective may lead to insufficient funds to maintain system integrity. To evaluate the adequacy of the EXHIBIT 1
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existing wastewater rates, a comprehensive rate study is often performed. A comprehensive rate study consists of three interrelated analyses. Figure 1 - 1 provides an overview of these analyses.

Figure 1 – 1
Overview of the Comprehensive Wastewater Rate Analyses
The above framework for reviewing and evaluating rates was utilized for the development of the Study. As noted, the wastewater utility was reviewed on a stand-alone basis – that is, no funding from other Department or City funds was assumed – to determine the level of adequate funding needs from the utility’s rate revenues.

1.4 Organization of the Study
This report is organized in a sequential manner that first provides an overview of utility rate setting principles, followed by sections that detail the specific steps used to review and develop the Department’s proposed wastewater rates. The following sections comprise the Department’s wastewater rate study report:

Section 2 – Overview of Rate Setting Principles
Section 3 – Wastewater Revenue Requirement Analysis
Section 4 – Wastewater Cost of Service Analysis
Section 5 – Wastewater Rate Design Analysis
Technical Appendices are attached at the end of this report, which detail the technical analyses that were undertaken in the preparation of the Study.

Revenue Requirement Analysis
Cost of Service Analysis
Rate Design Analysis
Compares the revenues to the expenses
to determine the overall rate
adjustments required
Distributes the revenue requirement to
the identified customer classes of service
in a proportional manner
Considers both the level and
structure of the rate design to collect
the target level of revenues
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1.5 Summary
This report will review the comprehensive wastewater rate study prepared for the Department.

This report has been prepared utilizing generally accepted and industry standard rate setting techniques, the Department’s specific and unique system and customer characteristics, while taking into consideration legal requirements for establishing rates pursuant to the California Constitution.

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Overview of Rate Setting Principles 13
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2 Overview of Rate Setting Principles

2.1 Introduction
This section of the report provides background information about the wastewater rate setting process, including descriptions of generally accepted principles, types of utilities and methods of determining a revenue requirement, cost of service, and rate design. This information is useful for gaining a better understanding of the details presented in Sections 3 through 5 of this report.

2.2 Generally Accepted Rate Setting Principles
As a practical matter, all utilities should consider setting their rates around some generally accepted or global principles and guidelines. Utility rates must be cost-based, proportional, and set at a level that meets the utility’s full revenue requirement. As a result of setting these proportional, cost-based rates, utility rates can also be:
„ Easy to understand and administer
„ Designed to conform to “generally accepted” rate setting techniques „ Stable in their ability to provide adequate revenues for meeting the utility’s financial, O&M, and regulatory requirements
„ Established at a level that is stable from year-to-year from a customer’s perspective

2.3 Determining the Revenue Requirement
Most public utilities use the “cash basis” approach for establishing their revenue requirement and setting rates. This approach conforms to most public utility budgetary requirements and the calculation is easy to understand. A public utility totals its cash expenditures for a period of time to determine its required revenues. The revenue requirement for a public utility is usually comprised of the following costs or expenses:

Total Operating Expenses: This includes a utility’s operation and maintenance (O&M) expenses, plus applicable taxes or transfer payments. O&M expenses include the materials, electricity, labor, supplies, etc., needed to keep the utility functioning.

Total Capital Expenses: Capital expenses are calculated by adding debt service payments (principal and interest) to capital replacements financed with rate revenues. In lieu of including capital replacements financed with rate revenues, a utility sometimes includes annual depreciation expense to stabilize the annual revenue requirement.

Under the cash basis approach, the sum of the total O&M expenses plus the total capital expenses equals the utility’s revenue requirement during any selected period of time (historical or projected).

Note that the two portions of the capital expense component (debt service and rate funded capital) are necessary under the cash basis approach as utilities generally cannot finance all of their capital facilities with long-term debt. At the same time, it is often difficult to pay for capital EXHIBIT 1
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expenditures on a “pay-as-you-go” basis given that some major capital projects may have significant rate impacts on a utility, even when financed with long-term debt. Many utilities have found that some combination of pay-as-you-go funding and long-term financing will often lead to the minimization of rate increases over time.

Public utilities typically use the cash basis1 approach to establish their revenue requirements. An exception can occur if a public utility provides service to a large wholesale or contract customer.

In this situation, a public utility may use the “utility basis” approach (see Table 2 - 1) regarding earning a fair return on its investment.

Table 2 – 1
Cash Basis versus Utility Basis Comparison
Cash Basis Utility Basis (Accrual)
+ O&M Expenses + O&M Expenses
+ Taxes / Transfer Payments + Taxes/Transfer Payments
+
Capital Improv. Funded From Rates
;ш Depreciation Expense) + Depreciation Expense
+ Debt Service (Principal + Interest) + Return on Investment = Total Revenue Requirement = Total Revenue Requirement

2.4 Analyzing Cost of Service
After the total revenue requirement is determined, it is proportionately distributed to the users of the service (i.e., customer classes/rate schedules). The distribution of costs, as analyzed through a cost of service analysis, reflects the cost relationships for providing wastewater services. A cost of service analysis requires three analytical steps:

1. Costs are functionalized or grouped into the different cost categories related to providing service. For a wastewater utility, this typically includes collection/conveyance, pumping, and treatment. This step is largely accomplished by the utility’s accounting system (chart of accounts).

2. The functionalized costs are then allocated to specific cost components. Allocation refers to the arrangement of the functionalized data into the appropriate cost component(s).

For example, sewer costs are typically allocated as volume, strength, and customerrelated costs. 1 “Cash basis” as used in the context of rate setting is not the same as the terminology used for accounting purposes and the recognition of revenues and expenses. As used for rate setting, “cash basis” simply refers to the specific cost components to be included within the revenue requirement analysis.

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3. Once the costs are allocated to the appropriate cost component(s), each cost component is then proportionally distributed to the customer classes of service (e.g., residential, commercial, industrial). The distribution is based on each customer class’s relative or proportional contribution to the cost component. For example, customer-related costs are distributed to each class of service based on the total number of customers in each class of service. Once costs are distributed, the total amount of revenues needed from each customer class of service, to achieve cost-based rates, can be determined.

2.5 Designing Utility Rates
Rates that meet the utility’s objectives are designed based on both the revenue requirement and cost of service analyses. This approach results in rates that are strictly cost-based. While ratesetting can consider factors such as ability to pay, continuity of past rate philosophy, economic development, ease of administration, and customer understanding may be taken into consideration, such factors are incidental to cost-based, proportional rates. The proposed rates must take into consideration each customer class’s proportionate share of costs distributed through the cost of service analysis to meet the requirements of the California Constitution.

2.6 Economic Theory and Rate Setting
One of the major justifications for a comprehensive rate study is founded in economic theory. Economic theory suggests that the price of a commodity must roughly equal its cost if parity among customers is to be maintained. This statement’s implications on utility rate designs are significant. For example, a wastewater utility incurs additional costs to treat high strength wastewater. It follows that the customers who create and discharge high strength wastewater into the system create additional operating costs and therefore, should pay for the costs associated with treating higher strength waste and any other maintenance costs associated with their discharges. When costing and pricing techniques are refined, consumers have a more accurate understanding of the service costs to collect and treat wastewater. This price-equals-cost concept provides the basis for the subsequent analysis and comments.

2.7 Summary
This section of the report has provided a brief introduction to the general principles, techniques, and approaches used to develop cost-based wastewater rates. These principles and techniques are the basis for the Department’s comprehensive rate study explained in this report. “Economic theory suggests
that the price of a
commodity must roughly
equal its cost if equity
among customers is to be
maintained.”
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Wastewater Revenue Requirement 16
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3 Wastewater Revenue Requirement

3.1 Introduction
This section of the report details the development of the revenue requirement analysis for the Department’s Study. The revenue requirement analysis is the first analytical step in the comprehensive rate study process. From this analysis, a determination can be made as to the overall level of rate revenue adjustments needed to provide adequate and prudent funding for both O&M and capital needs of the utility. The primary objective of the Study was to develop cost-based and proportional rates that comply with the California Constitution, while attempting to minimize the impacts to the utility’s customers. This analysis, the revenue requirement analysis, provides the cost basis for the development of the proposed wastewater rates.

3.2 Determining the Revenue Requirement
In developing the Department’s wastewater revenue requirement for the Study period, the objective is that the utility must financially “stand on its own” and be properly funded. That is, no rate revenues are transferred from other Department funds or the other City funds to support the wastewater utility. As a result, the revenue requirement analysis assumes the full and proper funding needed to operate and maintain the wastewater system on a financially sound and prudent basis for the long-term.

3.2.1 Establishing a Time Frame and Approach
To begin calculating the revenue requirement for the Department’s wastewater utility, a time frame was established for the analysis (i.e., the Study period). The most recent budget years (FY 2023-24 and FY 2024-25) plus an 8-year review period (FY 2025-26 – FY 2032-33) was determined to be an appropriate amount of time for the revenue requirement analysis projected time period.

The revenue requirement was based on the Department’s adopted wastewater budgets for FY 2023-24 and FY 2024-25, which were then projected over a multi-year period based on historical escalation factors. Reviewing a multi-year time period is recommended as it attempts to identify any major expenses that may be on the horizon. By anticipating future financial requirements, the Department can begin planning for these changes sooner, thereby minimizing short-term rate impacts and overall long-term rates.

The second step in determining the revenue requirement was to determine the basis for accumulating costs. As discussed in Section 2 of this report, the revenue requirement analysis was developed using the “cash basis” approach. The cash basis approach is the most commonly used methodology by municipal utilities to set their revenue requirement. This is also the methodology that the Department has historically used to establish its wastewater revenue requirement. Table 3 - 1 provides a summary of the “cash basis” approach and the cost components used to develop the Department’s wastewater revenue requirement.

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Table 3 – 1
Overview of the Department’s “Cash Basis” Revenue Requirement + Wastewater Operation and Maintenance Expenses
+ Transfers
+ Rate Funded Capital
+ Debt Service (Principal + Interest) – Existing and Future ± Reserve Funding________________________________
= Total Wastewater Revenue Requirement
о Miscellaneous Revenues__________________________
= Net Revenue Requirement (Balance Required from Rates) Given a time period around which to develop the revenue requirement and a method to accumulate the costs, the focus shifts to the development and projection of the revenues and expenses of the Department’s wastewater utility.

The primary financial inputs in the development of the revenue requirement were the Department’s adopted FY 2023-24 and FY 2024-25 budget documents, recent 12-months of customer billing data, historical financial reports, and the Department’s capital improvement plan (CIP). Presented below is a detailed discussion of the steps and key assumptions contained in the development of the projections of the Department’s wastewater revenue requirement analysis.

3.2.2 Projecting Rate and Other Miscellaneous Revenues
The first step in developing a projection of the wastewater rate revenues, at present rate levels, was to determine the projected billing units (fixed and if applicable, variable/volumetric charges) for each customer group. The billing units for each customer group were based on the most recent 12-month period of July
2022 to June 2023 to determine
the current customer discharge
characteristics. These billing units
were then multiplied by the
applicable current wastewater
rates. This method of
independently calculating
revenues links the projected
revenues used within the analysis
to the projected billing units. It
also helps to confirm that the
billing units used within the Study
are reasonable for purposes of
projecting future revenues,
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distributing costs and ultimately, establishing proposed rates. The rate revenues are also shown in Exhibit 3 under “Rate Revenues” for FY 2023-24.

Based on the Departments current rate schedules, the majority of the rate revenues are derived from single family and condominium customers. The Department also serves a variety of multifamily and non-residential customers. In total, and at currently adopted rate levels, the Department’s wastewater system is projected to receive approximately $90.7 million in rate revenue in FY 2023-24. Based on current City planning documents, the Study has assumed a conservative level of customer account growth of 1.0% / year. By FY 2032-33, the rate revenues - assuming no rate adjustments - are projected to be approximately $99.2 million. The detailed calculation of the revenues at present rates is included in Exhibit 6 of the Technical Appendix.

In addition to rate revenues, the Department also receives other miscellaneous revenues. These are revenues related to fats, oils, and grease (FOG) inspections, interest income, late charges, etc. In total, the Department is projected to average approximately $2.3 million annually in miscellaneous revenues over the projected time period.

On a combined basis, taking into account rate revenues and miscellaneous revenues, the Department’s wastewater utility has total projected revenues of approximately $93.4 million in FY 2023-24, increasing to approximately $101.6 million by FY 2032-33 as a result of estimated growth as noted above. The assumptions used for projecting growth and increases in miscellaneous revenues can be found in Exhibit 2 of the Technical Appendix. Furthermore, the projection of rate and miscellaneous revenues can be found in Exhibit 3 of the Technical Appendix.

3.2.3 Projecting Operation and Maintenance Expenses
Operation and maintenance (O&M) expenses are incurred by the Department to maintain the wastewater collection, conveyance, treatment, and disposal system at a consistent service level.

The starting point of the projection of O&M expenses was the Department’s adopted FY 2023- 24 and FY 2024-25 budgets. Budgeted O&M expenses were projected over the Study time period based on historical inflationary factors. These factors took into consideration the Department’s historical cost increases and projected increases. The factors ranged from 3.0% to 9.0% annually for the various types of expenses (e.g., labor, benefits, materials & supplies). Several specific costs were adjusted based on known increases and provided by the City’s financial team. These were items related to CalPERS and other benefit related costs. In total, O&M expenses were projected to increase at an annual inflation rate of approximately 3.7% over the Study time period. As a note, this is consistent with annual changes in wastewater O&M costs over the past several years.

The total operation and maintenance expenses budgeted for the wastewater utility are budgeted to be approximately $72.5 million in FY 2023-24. Over the five-year rate setting period, the total O&M expenses are projected to increase to approximately $90.4 million by FY 2028-29. A summary of the O&M expenses is shown as a line item in Table 3 – 3.

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3.2.4 Projecting Capital Funding Needs
A key component in the development of the wastewater revenue requirement is to properly and adequately fund capital improvement needs in the near and long term. One of the major issues facing many utilities across the U.S. is the amount of deferred capital projects and the funding pressure from regulatory-related improvements. The proper and adequate funding of capital projects is an important issue for all wastewater utilities and is not just a local issue or concern of the Department. To accomplish this, the Department has adopted a capital improvement plan (CIP) to address both the short and long-term needs of the wastewater utility. The Department’s CIP outlines the infrastructure improvements necessary to provide wastewater service to existing and future wastewater customers.

In general, there are three types of capital projects that the Department may need to fund. These include the following types:

Renewal and replacement projects
Growth/capacity expansion projects
Regulatory-related projects
A renewal and replacement project is essentially a project to maintain the existing system that is in place today. Existing facilities become worn out, obsolete, etc. The Department should continuously be making investments to maintain the integrity of its facilities with renewal and replacement projects to ensure continued, uninterrupted wastewater service. Growth or capacity expansion projects are related to providing service to new customers. This may be through expansion of the existing system or construction of new facilities to provide service to customers within the Department’s service area. Additionally, certain projects may be a function of a regulatory requirement in which the Federal or State government mandates the need for an improvement to the system to meet regulatory standards. Understanding these different types of capital projects is important because it may help to explain why costs are increasing and as a result, the cost drivers for any needed rate adjustment.

The way in which projects are funded may vary by the type of capital project. For example, renewal and replacement projects should be funded through annual rates on a “pay-as-you-go basis”. In contrast to this, growth or capacity expansion projects may be funded through the collection of connection fees (i.e., growth-related charges) in which new development pays a proportional share of the cost of improvements required as a result of their connection (impact).

Finally, regulatory projects may be funded by a variety of different means, which may include one or more sources such as rates, long-term debt, grants, etc.

While the above discussion appears to neatly divide capital projects into three clearly defined categories, the reality of working with specific capital projects may be more complex. For example, a pump may be replaced, but while being replaced, it is up sized to accommodate the need for greater capacity. There are many projects that share these “joint” characteristics. At the same time, projects may not be “replacement” related, but rather “improvement” related.

Provided below in Table 3 - 2 is a summary of the wastewater capital funding analysis.

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Table 3 – 2
Summary of the Wastewater Capital Improvements ($000) 1 FY 2023-
24 FY 2024-
25 FY 2025-
26 FY 2026-
27 FY 2027-
28 FY 2028-
29 Total RWCF Upgrades $4,850 $2,447 $3,475 $2,750 $250 $0 Total Pipe Projects 2,364 17,382 10,335 15,350 15,750 16,150 Total Pump Station Rehabilitation 5,100 750 21,606 19,800 19,000 0 Future Unidentified Capital Improv. 2,686 0 0 0 0 3,350 Transfer to Long-Term Debt Proceeds 0 0 0 0 0 0
Total CIP $15,000 $20,579 $35,416 $37,900 $35,000 $19,500 Less: Other Funding Sources
Operating Fund - Sewer (431) $0 $280 $2,087 $10,000 $10,000 $0 Connection Fee Fund - Sewer (434) 0 0 0 0 0 0
Capital Fund - Sewer 0 0 11,700 9,900 6,500 0
Long-Term Debt Proceeds Fund 0 4,299 4,628 0 0 0
Assumed Future SRF Loan 0 0 0 0 0 0
Assumed Revenue Bonds 0 0 0 0 0 0
Revenue Bonds 0 0 0 0 0 0
Total Other Funding Sources $0 $4,579 $18,416 $19,900 $16,500 $0 Rate Funded Capital $15,000 $16,000 $17,000 $18,000 $18,500 $19,500

1. CIP inflated by Department
A key component of this capital funding plan was to complete the RWCF Modification project as well as other rehabilitation and replacement upgrades. As shown in Table 3 -2, the funding of capital is provided through annual rate levels (“Rate Funded Capital”) and available reserves. In this way, no additional long-term debt is issued to fund the CIP during the Study period and the CIP is funded on a pay-as-you-go approach.

While the total amount of a project may vary from year to year, the wastewater capital funding plan has attempted to provide a consistent funding source for the replacement of deteriorating system assets. In this case, the wastewater utility’s rates will annually fund an amount of $15.0 million in FY 2023-24. As a point of reference, the Department’s annual depreciation expense was approximately $12.9 million in FY 2022-23. A desirable funding target for rate funded CIP is an amount equal to or greater than annual depreciation expense in order to approximately keep up with the rate of deterioration of the system assets. To continue this trend, the Department is committed to making an effort to increase this component and the rate funded capital is projected to increase annually to $19.5 million by FY 2028-29.

It is important to understand that the depreciation expense is not the same as the replacement cost. Thus, funding an amount which exceeds the depreciation expense is both prudent and appropriate. As noted, to help establish a prudent level of annual replacement funding through rates, HDR worked with Department staff to develop a funding plan for the CIP. In developing EXHIBIT 1
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this financial plan, HDR and the Department have attempted to minimize rate impacts while funding the planned capital projects of the Department.

3.2.5 Projection of Debt Service
The Department currently has three outstanding long-term debt issuances. In total, annual debt service payments will be approximately $7.8 million in FY 2023-24. It should be noted that a component of one of the issuances, the 2014 Revenue Bond, was used to expand the Department’s wastewater system for new customer growth. Given this, annual connection charge revenues are used to fund a portion of this annual debt service payment. The remaining annual debt service payment is funded through annual rate revenues. One of the recent debt issuances was issued for the RWCF upgrades and other system improvements that are being completed during this Study time period. The total annual debt service is funded through, and supported by, annual rate revenues. No new additional debt has been assumed for the purposes of the Study.

It is important to note that HDR is not advising the Department on the terms of any long-term debt issuances but rather identifying the overall funding needs. The Department is working with an independent financial advisor as well as City financial staff, to develop the overall financing plan to fund the capital improvement projects identified in the Study. Given this, HDR is not acting in a municipal advisor role to the Department for the issuance of any long-term borrowing.

3.2.6 Reserve Funding
The final component of the revenue requirement analysis is reserve funding. This can be described as additional transfers of revenue to reserve funds to maintain prudent ending fund balances or for future funding of specific or unanticipated projects. Additionally, any balance of funds after the expenses are paid is transferred to the operating fund to maintain minimum fund balances. The Department has a reserve policy in place to maintain six months of operating expenses in reserves, which is equal to approximately $36.3 million for FY 2023-24. The Study was developed to meet this target minimum over the review period (FY 2024-25 – FY 2028-29).

The Department also established a rate stabilization fund with the purpose of lessening the impacts to rate payers should additional expenses be incurred that could significantly increase rates as a result. As will be shown, even with the recommended rate adjustments, reserves are being used annually through the Study time period to smooth the overall rate revenue increases.

During the Study time period, reserve levels are being decreased and end slightly below minimum targets. However, it is important to note that the Department has $30 million in prior capital project appropriations that are not included in reserve balances for the purposes of the Study as these funds have been “set aside” to fund prior identified projects.

3.2.7 Summary of the Wastewater Revenue Requirement
Given the above projections of revenues and expenses, a summary of the wastewater revenue requirement analysis can be developed. In developing the revenue requirement analysis, consideration was given to the financial planning considerations of the Department. In particular, emphasis was placed on attempting to minimize rates, yet still have adequate funds to support the operational activities and funding of capital projects throughout the Study time period.

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Presented below in Table 3 - 3 is a summary of the Department’s projected wastewater revenue requirement. Detailed exhibits of this analysis can be found in the Technical Appendix (Exhibits 1 – 6).

Table 3 - 3
Summary of the Wastewater Revenue Requirement Analysis ($000) FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Revenues
Rate Revenues $90,747 $91,655 $92,571 $93,497 $94,432 $95,376 Other Revenues 2,615 2,669 2,566 2,538 2,287 1,975
Total Revenues $93,362 $94,324 $95,137 $96,035 $96,719 $97,352 Expenses
O&M Expenses $72,510 $77,803 $80,837 $83,945 $87,123 $90,434 Rate Funded Capital 15,000 16,000 17,000 18,000 18,500 19,500 Net Annual Debt Service 5,687 7,502 7,683 7,684 7,686 7,688 To / (From) Reserves 166 (4,843) (2,830) (1,919) (550) 393 Total Expenses $93,362 $96,462 $102,691 $107,709 $112,759 $118,015 Bal./(Def.) of Funds $0 ($2,139) ($7,554) ($11,674) ($16,040) ($20,664) Bal. as a % of Rate Rev. 0.0% 2.3% 8.2% 12.5% 17.0% 21.7% Proposed Revenue
Adjustment 0.0% 4.0% 4.0% 4.0% 4.0% 4.0%
Add’l Rev. from Adjustment $0 $2,139 $7,554 $11,674 $16,040 $20,664 Total Bal./(Def.) of Funds $0 $0 $0 $0 $0 $0
As can be seen, the revenue requirement has summed the O&M, annual rate funded capital, net annual debt service, and reserve funding components. The total revenue requirement is then compared to the total revenues which include both rate revenues – at current rate levels – and other revenues.

From this comparison, a balance or deficiency of funds in each year can be determined. This balance or deficiency of funds is then compared to the projected revenues from current rates to determine the level of rate adjustment needed to meet the revenue requirement. It is important to note the “Bal. / (Def.) of Funds” row is cumulative. That is, any adjustments in the initial years will reduce the deficiency in later years. Over the Study time period, the total deficiency in revenues is 21.7%. As shown, it is important to note that reserves are being used in FY 2024-25 through FY 2027-28 to maintain the rate revenue adjustments at 4%.

The revenue requirement in Table 3 - 3 has been developed to meet the financial planning objectives of the Department. More specifically, the Department desires to adequately and prudently fund its wastewater operating and capital needs. In doing so, rate revenue adjustments should avoid large adjustments in any single year. Table 3 - 3 has also included a set of proposed rate revenue adjustments (blue highlighted band) which are sufficient to meet the total revenue EXHIBIT 1
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requirement over the projected time period. The proposed revenue adjustments are a function of assumed inflation over the time period, coupled with the need to increase capital improvement funding from rates (renewal and replacement funding), meet minimum reserve levels, fund annual debt service payments, and meet legally required debt service coverage ratios. Provided in Table 3 - 4 is a summary of the debt service coverage ratios (without connection fees) before and after the proposed rate adjustments. As a note, the minimum target debt service coverage ratio is 1.00.

Table 3 - 4
Summary of the Annual Debt Service Coverage Ratios
FY 2023-
24 FY 2024-
25 FY 2025-
26 FY 2026-
27 FY 2027-
28 FY 2028-
29 Debt Service Coverage –
Before Rate Adjustment 2.68 1.72 1.46 1.24 0.98 0.71
Debt Service Coverage –
After Rate Adjustment 2.68 1.94 2.23 2.43 2.62 2.82
As can be seen in Table 3 - 4, with the proposed revenue adjustments, the Department exceeds the annual debt service coverage ratios. However, if wastewater revenue adjustments are not implemented, the Department will not have sufficient funding to prudently operate and maintain the wastewater system, or more importantly, meet annual debt service coverage requirements.

Over the five-year rate setting period, annual deficiencies range from $2.1 million to $20.7 million. It is important to note that the overall revenue adjustments may not reflect the final rate adjustments, or bill impacts, seen by the Department’s customers as the cost of service analysis will proportionally distribute the revenue requirement between the identified customer classes.

The overall revenue adjustment reflects the needed revenues for the system as a whole. The more detailed revenue requirement analysis is included in Exhibit 3 of the Technical Appendix.

3.3 Consultant’s Conclusions
Based on the revenue requirement analysis developed herein, HDR has recommended that the Department increase wastewater revenues over the next five-year period (FY 2024-25 – FY 2028- 29) by 4.0%, annually. HDR has reached this conclusion for the following reasons:

Revenue adjustments are necessary to fund the Department’s CIP needs, which are driven by the funding of replacement capital projects as well as completing the RWCF Modification Project.

Revenue adjustments are necessary to fund the Department’s annual debt service payments. Absent the proposed revenue adjustments, the Department will be unable to pay annual debt service or comply with the obligations of its outstanding debt.

The revenue adjustments are necessary in order to cover the annual inflationary costs related to the O&M expenses of the wastewater utility.

The proposed revenue adjustments maintain the Department’s strong financial health and provide long-term sustainable funding levels for the Department.

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In reaching this conclusion, HDR would recommend that the Department adopt the proposed revenue adjustments in order to provide sufficient funding for annual O&M and capital improvement projects over the next five-year period.

3.4 Summary
This section of the report has provided a discussion of the Department’s wastewater revenue requirement analysis. The revenue requirement analysis developed a revenue transition plan to support the Department’s O&M and capital needs. The next section will discuss the cost of service analysis developed for the Department’s wastewater utility.

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4 Wastewater Cost of Service

4.1 Introduction
In the previous section, the revenue requirement analysis focused on the total sources and applications of the revenues required to adequately fund the Department’s wastewater utility.

This section will provide an overview of the cost of service analysis developed for the Department’s wastewater utility.

The wastewater cost of service analysis provides the proportional distribution of the total revenue requirement between the identified customer classes of service (e.g., Single Family and Condominiums, Multi-Family, Apartments, Commercial/Institutional, and Industrial) to meet the requirements of Proposition 218. The previously developed revenue requirement was utilized in the development of the cost of service analysis.

4.1.1 Objectives of a Cost of Service Analysis
There are two primary objectives in conducting a wastewater cost of service analysis:

Distribute the Department’s revenue requirement among the customer classes of service Derive average unit costs for subsequent rate designs by customer class of service The primary objective of the cost of service analysis is the proportional collection of the revenue requirement from the Department’s customer classes of service. The second rationale for conducting a cost of service analysis is to allow for the development of proposed rates that properly reflect the costs incurred by the Department and the impacts customers place on the wastewater system. For example, a wastewater utility typically incurs costs related to flow (wastewater volumes), strength (constituents in the wastewater), and customer cost components (billings and collections). Each of these types of costs may be collected in a slightly different manner to allow for the development of rates that collect costs in the same manner as they are incurred.

4.2 Determining the Customer Classes of Service
The first step in a cost of service analysis is to determine the customer classes of service. Based on the current rates, the classes of service used within the cost of service analysis are:

Single Family and Condominiums
Multi-Family
Apartments
Commercial/Institutional – Low Strength
Commercial/Institutional – Med Strength
Commercial/Institutional – High Strength
Schools
Industrial
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In determining classes of service for cost of service purposes, the objective is to group customers together into similar or homogeneous groups based upon facility requirements
and/or flow characteristics. HDR reviewed the current
customer characteristics and facility requirements to
determine the classes of service. In reviewing the customer classes of service, it was noted that the current groupings reflect the differences between customer types and are
consistent with typical industry practices. For example, the Department differentiates between the various residential customers (e.g., single-family, multi-family) and commercial customers (e.g., low strength, medium strength, high
strength), which reflects the differences in customer
characteristics, the impacts on the system, and system
requirements. These differences revolve around assumed
wastewater flow and/or strength as well as in administrational effort for serving different customers which all become the foundation for developing the unique customer classes of service. Provided in the following discussion is a more detailed review of the differences between the customer classes of service.

4.3 General Cost of Service
Procedures
In order to determine the cost to serve each customer class of service on the Department’s wastewater system, a cost of service analysis is conducted. A cost of service analysis utilizes a three-step approach to review costs, which is outlined in the Water Environment Federation Manual of Practice No. 27
(WEF MOP #27). These steps take the form of
functionalization, allocation, and distribution. Provided below is a detailed discussion of the wastewater cost of service Study conducted for the Department, and the specific steps taken within the analysis.

4.3.1 Functionalization of Costs
The first analytical step in the cost of service process is called functionalization. Functionalization is the arrangement of expenses and asset (plant) data by major operating functions (e.g., collection, pumping, treatment). Within this Study, the majority of the costs were functionalized by the Department’s records. For those that were not, HDR worked with Department staff to review and functionalize the costs.

Terminology of a Wastewater
Cost of Service Analysis
Functionalization – The
arrangement of the cost data by
functional category (e.g., collection,
pumping, treatment).

Allocation – The assignment of
functionalized costs to cost
components (e.g., volume,
strength, and customer related).

Distribution – Distributing the
allocated costs to each class of
service based upon each class’s
proportional contribution to that
specific cost component.

Volume Costs – Costs that are
allocated as volume related vary
with the total flow of wastewater
(e.g., power for pumping).

Strength Costs – Costs allocated as
strength related refer to the
wastewater treatment function.

Typically, strength-related costs are
further defined as carbonaceous
biochemical oxygen demand
(CBOD) and suspended solids (SS).

Different types of customers may
have high wastewater strength
characteristics, which costs more to
treat. Treatment facilities are
designed and sized around meeting
these treatment demands.

Customer Costs – Costs allocated as
customer related vary with the
number of customers on the
wastewater system (e.g., billing,
collecting and accounting costs).

Direct Assignment – Costs that can
be clearly identified as belonging to
a specific customer group or group
of customers.

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4.3.2 Allocation of Costs
The second analytical task performed in a wastewater cost of service analysis is the allocation of the costs. Allocation determines why the expenses were incurred or what type of need is being met. The following cost allocators were used to develop the Study:

Volume Related Costs: Volume related costs are those costs which tend to vary with the total quantity of wastewater collected and treated.

Strength Related Costs: Strength related costs are those costs associated with the additional handling and treatment of high “strength” wastewater. Strength is typically measured in carbonaceous biochemical oxygen demand2 (CBOD) and suspended solids3 (SS). Increased levels of CBOD or SS generally equate to increased treatment costs for most wastewater systems.

Customer Related Costs: Customer related costs vary with the addition or deletion of a customer or is a cost which is a function of the number of customers served. Customer related costs typically include the costs of billing, collecting, and accounting.

Revenue Related Costs: Some costs associated with the utility may vary with the amount of revenue received by the utility. An example of a revenue related cost would be a utility tax, which is based on gross utility revenue.

The basis, or methodology, for the allocation process is outlined in the WEF MOP #27. The methodology provided in the manual was then applied to the Department’s specific circumstances, customers, costs, and operations to develop the appropriate allocation approach.

4.3.3 Development of Distribution Factors
Once the allocation process is complete and the customer groups have been defined, the various allocated costs are distributed to each customer class of service. The Department’s allocated costs were proportionally distributed to the customer classes of service using the following distribution factors.

Volume Distribution Factor: Volume related costs are generally distributed on the basis of contributions to wastewater flows. Wastewater flows are not typically metered and so often, a surrogate must be used in order to estimate a customer class’s contribution. For residential customers (Single-Family and Condominiums, Multi-Family, and Apartments), the Department’s planning documents estimate water consumption to be approximately 112 gallons per person per day (GPD) and three people per household. In addition, there are also assumptions made on the return factor (or how much of the water consumed by a certain customer class is returned to the wastewater system as sewer flow) for each customer class. This figure was taken from the Department’s planning documents. Due to past drought and conservation efforts, the flow estimates were then adjusted down to reflect the fact that the winter water usage is less than the average monthly water use 2 CBOD is the amount of dissolved oxygen that must be present in water in order for microorganisms to decompose the organic carbon in the wastewater.
3 SS is the entire amount of organic and inorganic particles dispersed in wastewater.

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and that a portion of the residential water usage during these months is not returned to the wastewater system. Billed wastewater flow – which is based on water usage - was used for commercial (low, medium, high) as well as industrial customers. The commercial and industrial customers’ flows were also adjusted based on the fact that although to a lesser level, the average monthly usage includes some outdoor watering. For schools, which are billed on an average attendance rate, the volume assumptions were based on the equivalent volumes for schools based on standard engineering design manuals. The calculation of the volume distribution factor is shown in Exhibit 7 of the Technical Appendix.

Strength Distribution Factor: Strength related costs are allocated between CBOD and SS.

These costs are distributed to each of the classes of service based upon the assumed domestic strength level of 275 milligrams per liter (mg/l) for CBOD and SS at 390 mg/l.

Commercial low strength was set equal to domestic levels while the commercial medium and high strength customers were adjusted (increased) to reflect the higher strength wastewater discharged to the Department’s wastewater system. Industrial customers have a much higher strength wastewater that is discharged to the City’s wastewater system. For the Study, it was assumed that the CBOD and SS strengths were 525 mg/l and 625 mg/l, respectively to reflect the higher strength levels of these customers. The strength levels in total, for each customer class of service, were utilized to calculate the CBOD and SS pounds removed based on the actual pounds removed at the wastewater treatment plant over a 12-month period as provided in Department wastewater treatment plant reports. Exhibit 8 in the Technical Appendix provides the calculation of the strength distribution factor.

Customer Distribution Factor: Customer costs within the cost of service analysis are distributed to the various customer classes of service based upon their respective number of customer accounts. Two types of customer distribution factors were developed ൞ actual and weighted. The actual customer distribution factor assumes that there is no disproportionate cost associated with serving a customer (e.g., postage for bills is the same regardless of the size or usage of the customer). In contrast, a weighted customer distribution factor assumes that there is some disproportionality associated with serving different types of customers and attempts to estimate the level of difference in serving the customers. It is important to note that this Study assumes no weighting for differences between customers. Exhibit 9 of the Technical Appendix provides the calculation of the customer distribution factor.

Revenue Related Distribution Factor: The revenue related distribution factor was developed from the projected rate revenues for FY 2024-25 for each customer class of service as developed in Exhibit 3. A summary of the revenue distribution factor is provided in Exhibit 10 of the Technical Appendix.

The development of the distribution factors is based on generally accepted principles as outlined in the WEF MOP #27.

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4.4 Summary of the Wastewater Cost of Service Analysis
In summary form, the cost of service analysis began by functionalizing the Department’s facility asset records and O&M expenses. The functionalized facility and expense accounts were then allocated to the appropriate cost component(s) based on generally accepted methods and the Department’s specific system operations and costs. Provided below is a summary of the allocation of the Department’s FY 2024-25 test period revenue requirement using the methodology outlined in the WEF MOP #27 as well as the Department’s specific facility requirements and operations. Provided in Exhibits 11 and 12 of the Technical Appendix is a detailed summary of the allocation of the Department’s infrastructure and revenue requirement.

The allocation of the individual line items of the revenue requirement are summed to develop the results in Table 4 – 1.

Table 4 – 1
Summary of the Allocation of the FY 2024-25 Revenue Requirement ($000’s) Total Volume CBOD SS Customer
Revenue
Related
Direct
Assignment
$93,793 $23,540 $14,034 $14,731 $41,488 $0 $0
As shown in Table 4 – 1, the total revenue requirement for FY 2024-25 has been allocated to the appropriate cost components based on generally accepted methodologies. Next, the individual allocation totals were then distributed proportionally to the identified customer groups based on the appropriate distribution factors.

For example, volume-related costs were distributed based on each customer class’s proportional share of total wastewater contributions. Provided in Table 4 - 2 is a summary of the volume distribution factor and distribution of the volume related costs.

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Table 4 – 2
Summary of the Volume Distribution Factor and
Distribution of Volume Related Costs
% of Total
Volume
Costs
Annual
Flow (CCF)
# of
Customers
Unit Cost
($ / CCF)
Unit Cost
($ / Cust)
Residential
Single Family & Condo 62.5% $14,711,197 85,480 $14.34
Multi-Family 5.4% $1,276,103 8,763 12.14
Apartments 13.6% $3,200,444 30,219 8.83
Total Residential 81.5% $19,187,743 124,462
Com / Inst
Low Strength 0.7% $154,008 136,240 $1.13
Medium Strength 6.6% 1,565,357 1,375,032 1.14
High Strength 2.4% 569,356 381,904 1.49
Schools1 1.8% 422,275 57,886 0.61
Total Com / Inst 11.5% $2,710,996 1,951,062
Industrial 7.0% $1,641,573 1,129,479 $1.45
Total 100.0% $23,540,312 3,080,541
1 - Schools are on an average daily attendance (ADA) basis A similar approach is used to distribute the strength related costs, both CBOD and SS. Provided in Tables 4 - 3 and 4 - 4 are the strength distribution factors and distribution of strength related costs.

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Table 4 – 3
Summary of the CBOD Distribution Factor and Distribution CBOD Related Costs % of Total
CBOD
Costs
Annual
Flow (CCF)
# of
Customers
Unit Cost
($ / CCF)
Unit Cost
($ / Cust)
Residential
Single Family & Condo 56.5% $7,930,152 85,480 $7.73
Multi-Family 4.9% 687,890 8,763 6.54
Apartments 12.3% 1,725,217 30,219 4.76
Total Residential 73.7% $10,343,259 124,462
Com / Inst
U Low Strength 0.6% $83,019 136,240 $0.61
Medium Strength 7.9% 1,104,630 1,375,032 0.80
High Strength 4.2% 585,928 381,904 1.53
Schools1 1.6% 227,630 57,886 0.33
Total Com / Inst 14.3% $2,001,206 1,951,062
Industrial 12.0% $1,689,352 1,129,479 $1.50
Total 100.0% $14,033,818 3,080,541
1 - Schools are on an average daily attendance (ADA) basis Table 4 – 4
Summary of the SS Distribution Factor and Distribution SS Related Costs % of Total
SS
Costs
Annual
flow (CCF)
# of
Customers
Unit Cost
($ / CCF)
Unit Cost
($ / Cust)
Residential
Single Family & Condo 58.3% $8,594,773 85,480 $8.38
Multi-Family 5.1% 745,542 8,763 7.09
Apartments 12.7% 1,869,806 30,219 5.16
Total Residential 76.1% $11,210,121 124,462
Com / Inst
Low Strength 0.6% $89,977 136,240 $0.66
Medium Strength 7.6% 1,113,855 1,375,032 0.81
High Strength 3.6% 533,072 381,904 1.40
Schools1 1.7% 246,707 57,886 0.36
Total Com / Inst 13.5% $1,983,611 1,951,062
Industrial 10.4% $1,536,958 1,129,479 $1.36
Total 100.0% $14,730,690 3,080,541
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Finally, customer related costs are distributed based on the customer distribution factors.

Provided in Table 4 - 5 is a summary of the distributed customer costs.

Table 4 – 5
Summary of the Customer Distribution Factor and Distributed Customer Related Costs
Customer Related
Costs Customers Total ($ / Customer)
Residential
Single Family & Condo $27,599,576 85,480 $26.91
Multi-Family 2,829,376 8,763 26.91
Apartments 9,757,036 30,219 26.91
Total Residential $40,185,988 124,462
Com / Inst
Low Strength $66,513 206 $26.91
Medium Strength 1,052,993 3,261 26.91
High Strength 144,883 449 26.91
Schools 29,705 92 26.91
Total Com / Inst $1,294,093 4,008
Industrial $8,341 26 $26.91
Total $41,488,422 128,496
The total costs allocated to each cost component as outlined above were proportionally distributed between the customer classes using the previously mentioned distribution factors.

Provided below in Table 4 - 6 is a summary of the total distribution of costs, by cost component, to the customer classes of service.

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Table 4 – 6
Summary of the Distribution of the FY 2024-25 Revenue Requirement by Customer Class ($000’s) Residential Commercial / Institutional
Single Family
& Condos
MultiFamily Apartments Low
Strength
Medium
Strength
High
Strength Schools Industrial Total
Volume $14,711 $1,276 $3,200 $154 $1,565 $569 $422 $1,642 $23,540 BOD 7,930 688 1,725 83 1,105 586 228 1,689 14,034
TSS 8,595 746 1,870 90 1,114 533 247 1,537 14,731
Customer 27,600 2,829 9,757 67 1,053 145 30 8 41,488
RR / DA 0 0 0 0 0 0 0 0 0
Total $58,836 $5,539 $16,553 $394 $4,837 $1,833 $926 $4,876 $93,793 EXHIBIT 1
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The distributed expenses for each customer class were then aggregated to determine each customer class’s overall revenue responsibility. Using the rate revenues from Section 3.2.2 plus a year of assumed customer growth as well as the allocated costs from Table 4 - 6, Table 4 - 7 summarizes the cost of service analysis.

Table 4 - 7
Summary of the FY 2024-25 Wastewater Cost of Service Analysis ($000) Class of Service
Current
Rate Revenues
Distributed
Costs
$
Difference
%
Difference
Single Family & Condo $57,144 $58,836 ($1,691) 3.0%
Multi-Family 5,496 5,539 (43) 0.8%
Apartments 16,548 16,553 (4) 0.0%
Com / Inst
Low Strength $372 $394 ($21) 5.7%
Medium Strength 4,807 4,837 (30) 0.6%
High Strength 1,895 1,833 62 -3.3%
Schools 933 926 7 -0.7%
Industrial 4,459 4,876 (417) 9.4%
Total $91,655 $93,793 ($2,139) 2.3%
The results of the cost of service analysis indicate cost differences between the customer classes of service. When reviewing the results of the cost of service analysis, it is important to understand that the results will not be “exact” each time the Department updates its cost of service analysis.

This is due to changing customer characteristics, external impacts such as drought conditions, and other changes in how the Department incurs costs. However, the analysis above provides the best evidence supporting how to allocate costs on a go-forward basis, and reasonably predicts how customers cause the City to incur cost.

The allocated and distributed costs for each customer class of service are used to develop the proposed rates for the test period, which in this case is FY 2024-25. The total costs are divided by the billing units (e.g., number of customers, water consumption) to develop average unit costs, which are the basis for the rate designs. Provided in Table 4 – 8 is a summary of the unit costs, which are based on the proposed rate structure for each customer class of service. The proposed rate structure for the residential customers is a flat monthly rate per living unit. As a result, the total distributed costs for each residential customer class (single-family and condominiums, multi-family, and apartments) are divided by the number of living units. This results in the proposed rates for residential customers. For commercial / institutional customers, the customer related costs are divided by the number of accounts while the volume and strength costs are divided by the total billed water consumption. This results in a monthly fixed charge and variable charge per hundred cubic feet (CCF) of water consumption, which is the basis for the billing of the rate structure. The development of the cost of service and unit costs are provided in Exhibits 14 and 15 of the Technical Appendix.

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Table 4 – 8
Summary of the FY 2024-25 Wastewater Average Unit Costs Residential Commercial / Institutional
Single Family
& Condos Multi-Family Apartments Low Strength
Medium
Strength High Strength Schools Industrial
Variable
($/CCF) $0.00 $0.00 $0.00 $2.40 $2.75 $4.42 $1.29 $4.31 Fixed
($/Dwelling
Unit or
$/Account $57.36 $52.67 $45.65 $26.91 $26.91 $26.91 $26.91 $26.91 EXHIBIT 1
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4.5 Consultant’s Conclusions and Recommendations
HDR is recommending that the Department implement the cost of service adjustments and realign the rate structures, at this time. This realignment is a natural progression in designing rates as the results of the calculation may change between analyses based on consumption habits, the manner in which costs are incurred, system design or operation, etc. Given this, the proposed rates reflect the results of the current cost of service analysis.

Some of the variables that are impacting the cost distributions are the trend of declining per capita water consumption for residential customers, past drought conditions in California, changes in industrial customers, and other customer class characteristics. These conditions certainly have an impact on consumptive use and cost distributions and may not reflect future winter water consumption patterns, which are used to establish the basis for distributing costs for wastewater related services over the next five-year period. However, customer consumption patterns generally do not return to “typical” levels in the short-term. Given this, the results of the cost of service will provide the Department with cost-based and proportional rates that reflect current customer characteristics. It should also be noted that a cost of service analysis reflects a single point in time. It is recommended that the Department closely follow the results of subsequent cost of service analyses in order to gauge the effects of these outside forces.

4.6 Summary
This section of the Study has provided a summary of the cost of service analysis developed for the Department. This analysis was prepared using generally accepted cost of service techniques and principles. The next section of the report will review the present and proposed wastewater rates for the Department.

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5 Wastewater Rate Design Analysis

5.1 Introduction
The final step of the Department’s comprehensive wastewater rate study is the design of rates to collect the desired levels of revenues, based on the results of the revenue requirement and cost of service analyses. In reviewing the Department’s rates, consideration is given to the level of the rates and the structure of the rates as developed in the prior two analyses.

5.2 Rate Design Criteria and Considerations
Rates must be set in accordance with Proposition 218, and in a manner that proportionally allocates the utility’s cost of service to each parcel through their respective rates. A utility may consider additional criteria, provided they do not result in rates that are not based on the proportional cost of service. Some of these rate design criteria are listed below:

Rates which are easy to understand from the customer’s perspective Rates which are easy for the utility to administer
Consideration of the customer’s ability to pay
Continuity, over time, of the rate making philosophy
Policy considerations (encourage efficient use, economic development, etc.) Provide revenue stability from month to month and year to year Promote efficient allocation of the resource
Non-discriminatory (cost-based)
Compliant with State law
The Department may consider various cost-based rate structures that have incidental benefits of sending proper price signals as to what their usage or volumetric contributions are costing. This goal may be approached through rate level and structure, provided the resulting rates reflect the proportional cost of service. When developing the proposed rate designs, all the above-listed criteria were taken into consideration. However, it should be noted that it is difficult, if not impossible, to design a rate that meets all the goals and objectives listed above. In designing rates, there are always trade-offs between these goals and objectives.

5.3 Development of Cost-Based Wastewater Rates
Calculating cost-based and proportional rates is of paramount importance in developing the proposed wastewater rates. While always a key consideration in developing rates, meeting the legal requirements and documenting the steps taken to meet said requirements has been in the forefront with the recent legal challenges in the State of California on utility rates. Given this, the Department’s proposed wastewater rates have been developed to meet the legal requirements of California Constitution Article XIII D, Section 6 (Article XIII D). A key component of Article XIII D is the development of rates which reflect the cost of providing service and are proportionately allocated among the various customer classes of service and the customers within each class.

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HDR would point out that there is no single methodology for equitably assigning costs to the various customer groups. The Water Environment Federation Manual of Practice #27 (WEF MOP #27) provides various methodologies which may be used to establish cost-based rates. Article XIII D is not prescriptive and does not provide a specific methodology for establishing rates. Given that, HDR developed the Department’s proposed wastewater rates based on generally accepted rate setting methodologies to meet the requirements of Article XIII D.

HDR is of the opinion that the proposed rates meet the legal requirements of Article XIII D. HDR reaches this conclusion based upon the following:

The revenue derived from wastewater rates does not exceed the funds required to provide the property related service (i.e., wastewater service). The proposed rates are designed to collect the overall revenue requirement of the Department’s wastewater system.

The revenues derived from wastewater rates shall not be used for any purpose other than that for which the fee or charge is imposed. The revenues derived from the Department’s wastewater rates are used exclusively to operate, maintain and fund the Department’s wastewater system.

The amount of a fee or charge imposed upon a parcel or person as an incident of property ownership shall not exceed the proportional costs of the service attributable to the parcel. Section 4 of the Study focused exclusively on the issue of proportional assignment of costs to customer classes of service. The proposed rates have appropriately grouped customers into customer classes of service (residential, commercial/institutional, industrial) that reflect the varying consumption patterns and system requirements (i.e., the benefits they receive from and burdens they place on the system) of each customer class of service. The grouping of customers and rates into these classes of service creates the equity and fairness expected under Proposition 218 by having differing rates by customer classes of service which reflect both the level of revenue to be collected by the utility and the manner in which these costs are incurred and equitably assigned to customer classes of service and customers within each class of service based upon their proportional impacts.

5.4 Overview of the Proposed Rate Adjustments
As outlined in the revenue requirement analysis, the overall revenue adjustment for the Department’s wastewater utility is 4.0% annually for FY 2024-25 through FY 2028-29. This provides the overall revenue needs of the wastewater utility. Next, the cost of service analysis proportionately distributed the revenue requirement to the customer classes of service. Given the results of these analyses, the overall rate adjustment for each customer class of service can be developed. Provided below in Table 5 – 1 is a summary of the FY 2024-25 revenue adjustments for each customer class of service based on the overall system revenue needs and cost of service results. Important to note is that due to the implementation period of FY 2024-25 rates, assuming mid fiscal year (December 2024), the total system adjustment reflects collecting less revenue in FY 2024-25, which in turn impacts the results of the cost of service analysis. These cost of service EXHIBIT 1
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results will be the basis for developing the proposed rates, and subsequent revenues for each customer class of service.

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Table 5 – 1
Summary of the Wastewater FY 2024-25 Revenue Adjustments by Class of Service Residential Commercial / Institutional
Total
System
Single Family
& Condos Multi-Family Apartments Low Strength
Medium
Strength High Strength Schools Industrial

2.3% 3.0% 0.8% 0.0% 5.7% 0.6% -3.3% -0.7% 9.4%
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5.5 Overview of the Current Wastewater Rate Structure
The Department currently has a rate structure for each of the customer classes of service. For Single Family and Condominiums, Multi-Family, and Apartments customers, they are charged a flat monthly charge. There is also a City customer and Non-City customer rate for the fixed charge where the Non-City customers have a discount based on contractual agreements as the Non-City customers get a credit for the collection system that they do not benefit from. Although there is no water consumption related charge, the development of the volume allocation factor (described in Section 4) uses winter water use estimations where the total is tied to influent metered data in order to validate flow assumptions. A flat monthly charge is the most common structure used for residential wastewater customers.

Commercial/Institutional has a similar structure to Residential customers relating to the fixed charge. All sub-classes – low, medium, high strength, and schools – pay the same flat fixed charge.

As noted above, there is a discount for non-city customers for the collection system that they do not benefit from based on existing contractual agreements with these customers. The Commercial/Institutional rate structure also includes a volume charge, by sub-class, for all billed water consumption. The volume charge is based on the strength of the wastewater to reflect the increased costs of treatment associated with higher strength wastewater.

The industrial rate structure is more complex than the Residential and Commercial/Institutional rate structures. Like the other customer classes, there is a flat charge for all customers.

Additionally, the Industrial class rate has two main components, the stand-by charges to represent the capacity requirements of the customer and the O&M charges based on the actual usage. Each major component is comprised of a flow charge on a per million-gallon (mg) basis and strength charges for BOD and TSS charged on a per 1,000 pound basis.

5.6 Summary of the Wastewater Rates
Section 5.7 provided a summary of the Department’s current wastewater rate structures. In discussion with Department staff and reviewing industry standard approaches, no changes to the rate structures of any of the customer classes are proposed at this time. Provided in the following tables are the proposed rate structures for each customer class of service. These proposed rates reflect the cost-based and proportional distribution of the costs of providing service. Important to note is that the rates for FY 2024-25 are based on the average unit costs developed in the cost of service analysis. The rates thereafter are increased by the annual system revenue adjustment.

However, it should be noted that the unit costs provided in Table 4 - 8 are the average unit costs, which include both City and Non-City customers. Therefore, with the credit included for non-city customers, the Non-City rate is slightly lower than the average unit costs, and City customer rates are slightly higher.

Table 5 – 2 provides a summary of the current and proposed residential wastewater rates.

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Table 5 – 2
Summary of the Present and Proposed Residential Wastewater Rates ($/Living Unit)
Present
Rates
FY 2024-
25 FY 2025-
26 FY 2026-
27 FY 2027-
28 FY 2028-
29 Single Family & Condo
City Customer $55.68 $57.36 $59.65 $62.04 $64.52 $67.10 Non-City Customer 50.77 52.30 54.39 56.57 58.83 61.18
Multi-Family
City Customer $52.45 $52.86 $54.97 $57.17 $59.46 $61.84 Non-City Customer 47.05 47.42 49.32 51.29 53.34 55.47
Apartments
City Customer $47.57 $47.57 $49.47 $51.45 $53.51 $55.65 Non-City Customer 41.75 41.75 43.42 45.16 46.97 48.85
Provided in Table 5 - 3 is a summary of the current and proposed Commercial/Institutional rates.

The rate structure includes a monthly fixed charge for City and Non-City customers and a consumption charge based on the customer’s classification between low, medium, or high strength or schools.

Table 5 – 3
Summary of the Present and Proposed Commercial/Institutional Wastewater Rates
Present
Rates
FY 2024-
25 FY 2025-
26 FY 2026-
27 FY 2027-
28 FY 2028-
29 Base Charge ($/Account)
City Customer $26.83 $26.91 $27.99 $29.11 $30.27 $31.48 Non-City Customer 23.56 23.63 24.58 25.56 26.58 27.64
Consumption Charge ($/CCF)
Low Strength $2.22 $2.40 $2.50 $2.60 $2.70 $2.81
Medium Strength 2.70 2.75 2.86 2.97 3.09 3.21
High Strength 4.54 4.42 4.60 4.78 4.97 5.17
Schools ($ / ADA) 1.30 1.29 1.34 1.39 1.45 1.51
The Industrial rates were increased according to the results of the cost of service analysis. Table 5 – 4 below shows a summary of the present and proposed Industrial rates.

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Table 5 – 4
Summary of the Present and Proposed Industrial Wastewater Rates Present
Rates
FY 2024-
25 FY 2025-
26 FY 2026-
27 FY 2027-
28 FY 2028-
29 Admin / Stand-by Charge
Base Charge $26.83 $26.91 $27.99 $29.11 $30.27 $31.48
Flow - $ / mg 864.80 945.76 983.59 1,022.93 1,063.85 1,106.40 BOD - $ / 1,000 lbs 140.13 153.25 159.38 165.76 172.39 179.29 SS - $ / 1,000 lbs 102.88 112.51 117.01 121.69 126.56 131.62 Consumption Charge
Flow - $ / mg $748.52 $818.59 $851.33 $885.38 $920.80 $957.63 BOD - $ / 1,000 lbs 52.14 57.02 59.30 61.67 64.14 66.71 SS - $ / 1,000 lbs 83.45 91.26 94.91 98.71 102.66 106.77

5.7 Summary of the Wastewater Rate Design
The Department’s present wastewater rate structures are contemporary in design and reflect the rate structures used by other similar utilities in California, both locally and statewide. Based on the Department’s system and customer characteristics, the proposed wastewater rates appropriately reflect the cost to provide service and are proportionally distributed between the customer classes of service. Full and complete technical appendices of the development of the comprehensive wastewater rate study and the proposed revenue adjustments can be found in the technical appendices of this report.

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Technical Appendix – Wastewater
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Proforma Analysis
FY 2023-24 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 Revenue
Rate Revenue $90,747,163 $91,654,635 $92,571,181 $93,496,893 $94,431,862 $95,376,180 $96,329,942 $97,293,241 $98,266,174 $99,248,836 Add'l Revenue After Rate Adj. 0 2,138,608 7,553,808 11,674,396 16,040,060 20,663,526 25,558,166 30,738,027 36,217,870 42,013,204 Other Revenues 2,615,296 2,669,108 2,565,533 2,538,151 2,287,009 1,975,389 2,000,521 2,063,306 2,167,865 2,315,536 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Revenue $93,362,459 $96,462,351 $102,690,523 $107,709,440 $112,758,930 $118,015,095 $123,888,629 $130,094,575 $136,651,909 $143,577,577 Expenses
O&M Expenses
Utility Billing $3,292,987 $3,558,330 $3,689,193 $3,822,386 $3,957,183 $4,097,448 $4,241,957 $4,392,385 $4,549,031 $4,712,213 Administration 4,762,007 4,919,704 5,101,436 5,288,087 5,481,819 5,683,229 5,869,798 6,063,146 6,263,567 6,471,371 Engineering Services 2,215,365 2,498,910 2,597,212 2,696,554 2,799,983 2,908,089 3,018,817 3,134,591 3,255,694 3,382,430 Treatment Operations 29,082,614 33,142,717 34,449,461 35,799,351 37,180,655 38,618,910 40,003,521 41,442,341 42,937,747 44,492,232 Sanitary Sewer Collections 13,919,131 14,452,656 14,999,362 15,555,647 16,129,041 16,725,967 17,305,387 17,907,687 18,533,960 19,185,360 Laboratory 1,887,873 1,636,495 1,699,320 1,763,131 1,828,920 1,897,521 1,965,899 2,037,162 2,111,461 2,188,954 Other Support Services 1,019,410 1,318,244 1,370,670 1,423,385 1,478,521 1,536,213 1,596,607 1,659,856 1,726,126 1,795,593 Environmental Control 1,531,841 1,595,443 1,656,900 1,719,086 1,783,407 1,850,508 1,918,409 1,989,239 2,063,151 2,140,312 Treatment Plant Maintenance 7,522,387 6,924,699 7,198,563 7,476,067 7,751,825 8,039,100 8,326,311 8,625,352 8,936,814 9,261,319 Sanitary Pump Stations 5,902,415 6,080,631 6,336,403 6,598,788 6,866,088 7,145,468 7,434,257 7,736,160 8,051,851 8,382,047 Regulatory Compliance 152,339 240,524 249,741 259,044 268,739 278,865 289,446 300,507 312,075 324,178 Safety Services 545,197 520,738 539,955 559,581 578,962 599,096 619,486 640,665 662,669 685,536 SCADA Services 487,653 719,437 746,422 773,947 801,027 829,186 857,983 887,933 919,090 951,516 Outreach & Training Services 188,771 194,865 202,150 209,603 216,765 224,200 231,789 239,670 247,855 256,358 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total O & M Expenses $72,509,990 $77,803,393 $80,836,787 $83,944,657 $87,122,933 $90,433,801 $93,679,668 $97,056,695 $100,571,092 $104,229,419 Taxes
Taxes & Transfers $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Taxes $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Operating Expenses $72,509,990 $77,803,393 $80,836,787 $83,944,657 $87,122,933 $90,433,801 $93,679,668 $97,056,695 $100,571,092 $104,229,419 Funds Available for Debt Service $20,852,469 $18,658,958 $21,853,736 $23,764,783 $25,635,997 $27,581,295 $30,208,961 $33,037,880 $36,080,817 $39,348,157 Plus Connection Fees 2,794,315 2,794,315 2,794,315 2,794,315 2,794,315 2,794,315 2,794,315 2,794,315 2,794,315 2,794,315 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Funds Available for Debt Service $23,646,784 $21,453,273 $24,648,051 $26,559,098 $28,430,312 $30,375,610 $33,003,276 $35,832,195 $38,875,132 $42,142,472 Debt Service
Wastewater Revenue Refunding Bonds, 2014 Revenue Bond $6,486,375 $6,698,250 $6,692,375 $6,693,250 $6,695,000 $6,696,875 $6,693,250 $0 $0 $0 Regional Wastewater Facility Modification - N18126CA WIFIA Loan 1,296,000 1,296,000 1,296,000 1,296,000 1,296,000 1,296,000 1,296,000 5,588,884 5,588,573 5,588,259 Regional Wastewater Control Facilities (SRF) 0 1,603,318 1,790,740 1,790,740 1,790,740 1,790,740 1,790,740 1,790,740 1,790,740 1,790,740 Assumed Future SRF Loan 0 0 0 0 0 0 0 0 0 0
Asssumed Revenue Bond 0 0 0 0 0 0 0 0 0 0
Additional Revenue Bond 0 0 0 0 0 0 0 0 0 0
---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Debt Service $7,782,375 $9,597,568 $9,779,115 $9,779,990 $9,781,740 $9,783,615 $9,779,990 $7,379,624 $7,379,313 $7,378,999 Total Expenses $80,292,365 $87,400,961 $90,615,902 $93,724,647 $96,904,673 $100,217,415 $103,459,658 $104,436,319 $107,950,404 $111,608,418 Funds Available for Other Uses $13,070,094 $9,061,390 $12,074,621 $13,984,793 $15,854,257 $17,797,680 $20,428,971 $25,658,256 $28,701,504 $31,969,159 DSC Ratio (No Connection Fees) 2.68 1.94 2.23 2.43 2.62 2.82 3.09 4.48 4.89 5.33 DSC Ratio (With Connection Fees) 3.04 2.24 2.52 2.72 2.91 3.10 3.37 4.86 5.27 5.71 DSC Ratio (With Conn Fee & Rate Stabilization) 4.73 3.62 3.90 4.11 4.31 4.52 4.81 6.77 7.20 7.67 Ending Reserve Fund Balances
Operating Cash - 431 $39,624,380 $34,501,767 $29,584,641 $17,665,170 $7,115,164 $7,508,580 $9,533,287 $13,691,543 $19,893,047 $28,362,206 Capital Project Fund 39,316,723 61,518,390 50,492,074 41,146,495 35,090,460 35,441,365 35,795,778 36,153,736 36,515,273 36,880,426 Long-Term Debt Proceeds Fund 8,927,426 4,628,267 (0) (0) (0) (0) (0) (0) (0) (0) Connection Fee Fund - 434 6,206,899 6,971,039 7,742,821 8,522,321 9,309,616 10,104,784 10,907,903 13,825,269 16,771,808 19,747,813 Rate Stablization Fund 13,328,208 13,461,490 13,596,105 13,732,066 13,869,387 14,008,081 14,148,161 14,289,643 14,432,539 14,576,865 ---------------- ----------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Ending Reserve Fund Balances $107,403,635 $121,080,954 $101,415,642 $81,066,053 $65,384,626 $67,062,809 $70,385,130 $77,960,191 $87,612,668 $99,567,310 Budget
DRAFT 08/12/2024 1
EXHIBIT 1
2159
Budget
FY 2023-24 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 Revenues
Rate Revenues $90,747,163 $91,654,635 $92,571,181 $93,496,893 $94,431,862 $95,376,180 $96,329,942 $97,293,241 $98,266,174 $99,248,836 Miscellaneous Revenues 2,615,296 2,669,108 2,565,533 2,538,151 2,287,009 1,975,389 2,000,521 2,063,306 2,167,865 2,315,536 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Total Revenues $93,362,459 $94,323,743 $95,136,714 $96,035,044 $96,718,870 $97,351,569 $98,330,463 $99,356,548 $100,434,038 $101,564,372 Expenses
Utility Billing $3,292,987 $3,558,330 $3,689,193 $3,822,386 $3,957,183 $4,097,448 $4,241,957 $4,392,385 $4,549,031 $4,712,213 Administration 4,762,007 4,919,704 5,101,436 5,288,087 5,481,819 5,683,229 5,869,798 6,063,146 6,263,567 6,471,371 Engineering Services 2,215,365 2,498,910 2,597,212 2,696,554 2,799,983 2,908,089 3,018,817 3,134,591 3,255,694 3,382,430 Treatment Operations 29,082,614 33,142,717 34,449,461 35,799,351 37,180,655 38,618,910 40,003,521 41,442,341 42,937,747 44,492,232 Sanitary Sewer Collections 13,919,131 14,452,656 14,999,362 15,555,647 16,129,041 16,725,967 17,305,387 17,907,687 18,533,960 19,185,360 Laboratory 1,887,873 1,636,495 1,699,320 1,763,131 1,828,920 1,897,521 1,965,899 2,037,162 2,111,461 2,188,954 Other Support Services 1,019,410 1,318,244 1,370,670 1,423,385 1,478,521 1,536,213 1,596,607 1,659,856 1,726,126 1,795,593 Environmental Control 1,531,841 1,595,443 1,656,900 1,719,086 1,783,407 1,850,508 1,918,409 1,989,239 2,063,151 2,140,312 Treatment Plant Maintenance 7,522,387 6,924,699 7,198,563 7,476,067 7,751,825 8,039,100 8,326,311 8,625,352 8,936,814 9,261,319 Sanitary Pump Stations 5,902,415 6,080,631 6,336,403 6,598,788 6,866,088 7,145,468 7,434,257 7,736,160 8,051,851 8,382,047 Regulatory Compliance 152,339 240,524 249,741 259,044 268,739 278,865 289,446 300,507 312,075 324,178 Safety Services 545,197 520,738 539,955 559,581 578,962 599,096 619,486 640,665 662,669 685,536 SCADA Services 487,653 719,437 746,422 773,947 801,027 829,186 857,983 887,933 919,090 951,516 Outreach & Training Services 188,771 194,865 202,150 209,603 216,765 224,200 231,789 239,670 247,855 256,358 Total O&M Expenses $72,509,990 $77,803,393 $80,836,787 $83,944,657 $87,122,933 $90,433,801 $93,679,668 $97,056,695 $100,571,092 $104,229,419 Taxes & Transfers 0 0 0 0 0 0 0 0 0 0
Rate Funded Capital 15,000,000 16,000,000 17,000,000 18,000,000 18,500,000 19,500,000 20,500,000 21,500,000 22,500,000 23,500,000 Net Debt Service 5,686,639 7,501,832 7,683,379 7,684,254 7,686,004 7,687,879 7,684,254 7,379,624 7,379,313 7,378,999 To / (From) Reserves 165,830 (4,842,874) (2,829,643) (1,919,471) (550,007) 393,416 2,024,707 4,158,256 6,201,504 8,469,159 Total Revenue Requirement $93,362,459 $96,462,351 $102,690,523 $107,709,440 $112,758,930 $118,015,095 $123,888,629 $130,094,575 $136,651,909 $143,577,577 Bal /(Def) of Funds $0 ($2,138,608) ($7,553,808) ($11,674,396) ($16,040,060) ($20,663,526) ($25,558,166) ($30,738,027) ($36,217,870) ($42,013,204) Proposed Rate Adjustment 0.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% Add'l Revenue with Rate Adj $0 $2,138,608 $7,553,808 $11,674,396 $16,040,060 $20,663,526 $25,558,166 $30,738,027 $36,217,870 $42,013,204 Bal / (Def) After Rate Adj $0 $0 ($0) ($0) $0 $0 $0 $0 $0 $0 Average Residential Customer Bill
Customer Bill on Proposed Adj. $55.68 $57.91 $60.22 $62.63 $65.14 $67.74 $70.45 $73.27 $76.20 $79.25 Bill Difference - Monthly 2.23 2.32 2.41 2.51 2.61 2.71 2.82 2.93 3.05 Cumulative Bill Difference 2.23 4.54 6.95 9.46 12.06 14.77 17.59 20.52 23.57 Debt Service Coverage Ratio (all debt) - No Connection Fees Before Rate Adjustment 2.68 1.72 1.46 1.24 0.98 0.71 0.48 0.31 0.00 0.00 After Proposed Rate Adjustment 2.68 1.94 2.23 2.43 2.62 2.82 3.09 4.48 4.89 5.33 Debt Service Coverage Ratio (all debt) - Plus Connection Fees Before Rate Adjustment 3.04 2.01 1.75 1.52 1.27 0.99 0.76 0.69 0.36 0.02 After Proposed Rate Adjustment 3.04 2.24 2.52 2.72 2.91 3.10 3.37 4.86 5.27 5.71 Ending Fund Balance $107,403,635 $121,080,954 $101,415,642 $81,066,053 $65,384,626 $67,062,809 $70,385,130 $77,960,191 $87,612,668 $99,567,310 Target Minimum - 6 mo. of O&M $36,254,995 $38,901,696 $40,418,393 $41,972,328 $43,561,467 $45,216,900 $46,839,834 $48,528,347 $50,285,546 $52,114,710 Budget
City of Stockton
Summary of the Revenue Requirement
Exhibit 1
Wastewater Rate Study
DRAFT 08/12/2024 2
EXHIBIT 1
2160
City of Stockton
Wastewater Rate Study
Escalation Factors
Exhibit 2
Budget Budget
FY 2023-24 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 Revenues
As Customer Growth Customer Growth Calculated 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% As Flat Flat Budget 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% As Misc / Other Revenues Misc / Other Revenues Budget 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% Expenses
As Labor Labor Budget Budget 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Provided by Budget Office As Benefits - Medical Benefits - Medical Budget Budget 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Provided by Budget Office As Benefits - Retirement Benefits - Retirement Budget Budget 7.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% Provided by Budget Office As Benefits - Other Benefits - Other Budget Budget 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Provided by Budget Office As Professional Services Professional Services Budget Budget 3.5% 3.5% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% As Materials & Supplies Materials & Supplies Budget Budget 3.5% 3.5% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% As Equipment Equipment Budget Budget 4.0% 4.0% 4.0% 4.0% 3.0% 3.0% 3.0% 3.0% As Chemicals Chemicals Budget Budget 4.0% 4.0% 4.0% 4.0% 3.0% 3.0% 3.0% 3.0% As Electricity Electricity Budget Budget 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% As Utilities Utilities Budget Budget 4.0% 4.0% 4.0% 4.0% 3.5% 3.5% 3.5% 3.5% As Insurance Insurance Budget Budget 9.0% 9.0% 9.0% 9.0% 9.0% 9.0% 9.0% 9.0% Provided by Budget Office As Miscellaneous Miscellaneous Budget Budget 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% As Average O&M Average O&M N/A 7.3% 3.9% 3.8% 3.8% 3.8% 3.6% 3.6% 3.6% 3.6% Interest 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% New Debt Service Assumptions
Revenue Bond
Term in Years 30 30 30 30 30 30 30 30 30 30
Rate 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%
Low Interest Loan
Term in Years 30 30 30 30 30 30 30 30 30 30
Rate 0.9% 2.7% 2.7% 2.7% 2.7% 2.7% 2.7% 2.7% 2.7% 2.7%
Projected
Notes
DRAFT 08/12/2024 3
EXHIBIT 1
2161
City of Stockton
Wastewater Rate Study Page 1 of 18
Revenue Requirement
Exhibit 3
Budget Budget
FY 2023-24 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 Revenues
Rate Revenues
Residential
Single Family & CondoSingle Family & Condo $56,578,505 $57,144,290 $57,715,733 $58,292,890 $58,875,819 $59,464,577 $60,059,223 $60,659,815 $61,266,414 $61,879,078 As Customer Growth Multi-Family 5,441,560 5,495,976 5,550,936 5,606,445 5,662,509 5,719,134 5,776,326 5,834,089 5,892,430 5,951,354 As Customer Growth Apartments 16,384,198 16,548,040 16,713,520 16,880,656 17,049,462 17,219,957 17,392,156 17,566,078 17,741,739 17,919,156 As Customer Growth Commercial/Institutional
Low Strength $368,738 $372,425 $376,149 $379,911 $383,710 $387,547 $391,423 $395,337 $399,290 $403,283 As Customer Growth Medium Strength Medium Strength 4,759,241 4,806,833 4,854,902 4,903,451 4,952,485 5,002,010 5,052,030 5,102,551 5,153,576 5,205,112 As Customer Growth High Strength 1,876,559 1,895,325 1,914,278 1,933,421 1,952,755 1,972,283 1,992,005 2,011,925 2,032,045 2,052,365 As Customer Growth Schools 923,703 932,940 942,270 951,692 961,209 970,821 980,529 990,335 1,000,238 1,010,240 As Customer Growth Industrial 4,414,659 4,458,805 4,503,393 4,548,427 4,593,911 4,639,851 4,686,249 4,733,112 4,780,443 4,828,247 As Customer Growth ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Rate RevenuesTotal Rate Revenues $90,747,163 $91,654,635 $92,571,181 $93,496,893 $94,431,862 $95,376,180 $96,329,942 $97,293,241 $98,266,174 $99,248,836 Other Revenues
Fats, Oils, Grease Inspection Fats, Oils, Grease Inspection $44,091 $44,311 $44,533 $44,756 $44,979 $45,204 $45,430 $45,658 $45,886 $46,115 As Misc / Other Revenues Interest Income Interest Income 790,829 843,714 739,207 710,888 458,803 146,237 170,419 232,248 335,846 482,553 Calculated on Reserves Service Penalties Service Penalties 1,478,664 1,478,664 1,478,664 1,478,664 1,478,664 1,478,664 1,478,664 1,478,664 1,478,664 1,478,664 As Flat Lien Admin Fees Lien Admin Fees 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 As Flat Pre-Treatment Violations Pre-Treatment Violations 60,291 60,291 60,291 60,291 60,291 60,291 60,291 60,291 60,291 60,291 As Flat Returned Check FeesReturned Check Fees 1,000 1,005 1,010 1,015 1,020 1,025 1,030 1,036 1,041 1,046 As Misc / Other Revenues Other Revenue Other Revenue 45,000 45,225 45,451 45,678 45,907 46,136 46,367 46,599 46,832 47,066 As Misc / Other Revenues Program Revenue Program Revenue 2,500 2,513 2,525 2,538 2,550 2,563 2,576 2,589 2,602 2,615 As Misc / Other Revenues Refunds and Reimbursements Refunds and Reimbursements 30,000 30,150 30,301 30,452 30,605 30,758 30,911 31,066 31,221 31,377 As Misc / Other Revenues Mapping Fee 6,410 6,442 6,474 6,507 6,539 6,572 6,605 6,638 6,671 6,704 As Misc / Other Revenues Permit Center Operations Permit Center Operations 46,511 46,744 46,977 47,212 47,448 47,685 47,924 48,164 48,404 48,646 As Misc / Other Revenues Plan Check Fees Plan Check Fees 10,000 10,050 10,100 10,151 10,202 10,253 10,304 10,355 10,407 10,459 As Misc / Other Revenues Wastewater HaulerWastewater Hauler 0 0 0 0 0 0 0 0 0 0 As Misc / Other Revenues ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Other Revenues Total Other Revenues 2,615,296 $2,669,108 $2,565,533 $2,538,151 $2,287,009 $1,975,389 $2,000,521 $2,063,306 $2,167,865 $2,315,536 Total Revenues $93,362,459 $94,323,743 $95,136,714 $96,035,044 $96,718,870 $97,351,569 $98,330,463 $99,356,548 $100,434,038 $101,564,372 Projected
Notes
DRAFT 08/12/2024 4
EXHIBIT 1
2162
City of Stockton
Wastewater Rate Study Page 2 of 18
Revenue Requirement
Exhibit 3
Budget Budget
FY 2023-24 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 Projected
Notes
Expenses
Utility Billing
Employee Services
Utility BillingSalaries - Regular Salaries - Regular $970,566 $1,050,049 $1,081,550 $1,113,997 $1,147,417 $1,181,839 $1,217,295 $1,253,813 $1,291,428 $1,330,171 As Labor Utility BillingSalaries - Part Time/Temp Salaries - Part Time/Temp 57,240 21,036 21,667 22,317 22,987 23,676 24,386 25,118 25,872 26,648 As Labor Utility BillingRegular Overtime Regular Overtime 20,828 21,036 21,667 22,317 22,987 23,676 24,386 25,118 25,872 26,648 As Labor Utility BillingEmployee Separation Pay Employee Separation Pay 11,781 12,978 13,367 13,768 14,181 14,607 15,045 15,496 15,961 16,440 As Labor Utility BillingAdditional Pay Additional Pay 2,170 0 0 0 0 0 0 0 0 0 As Labor Utility BillingRetirement Retirement 249,409 304,138 325,428 344,953 365,651 387,590 410,845 435,496 461,625 489,323 As Benefits - Retirement Utility BillingMedicareMedicare 14,891 16,359 16,850 17,355 17,876 18,412 18,965 19,534 20,120 20,723 As Benefits - Medical Utility BillingHealth/Dental/Vision Health/Dental/Vision 214,356 266,112 274,095 282,318 290,788 299,511 308,497 317,752 327,284 337,103 As Benefits - Medical Utility BillingL/T Disability Insurance L/T Disability Insurance 4,077 6,618 6,817 7,021 7,232 7,449 7,672 7,902 8,139 8,383 As Benefits - Other Utility BillingLife Insurance Life Insurance 971 968 997 1,027 1,058 1,089 1,122 1,156 1,191 1,226 As Benefits - Other Utility BillingWorkers Compensation Workers Compensation 28,976 33,979 34,998 36,048 37,130 38,244 39,391 40,573 41,790 43,044 As Benefits - Other Utility BillingUnemployment Insurance Unemployment Insurance 1,519 1,166 1,201 1,237 1,274 1,312 1,352 1,392 1,434 1,477 As Benefits - Other Utility BillingCell Phone Allowance Cell Phone Allowance 1,203 1,407 1,449 1,493 1,537 1,584 1,631 1,680 1,730 1,782 As Miscellaneous Utility BillingRetirement Pension Bond Retirement Pension Bond 0 0 0 0 0 0 0 0 0 0 As Benefits - Retirement Utility BillingVacation Sell Back Vacation Sell Back 0 2,141 2,205 2,271 2,340 2,410 2,482 2,556 2,633 2,712 As Labor ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Utility BillingTotal Employee Services Total Employee Services $1,577,987 $1,737,987 $1,802,292 $1,866,124 $1,932,456 $2,001,399 $2,073,069 $2,147,586 $2,225,079 $2,305,680 Other Services
Utility BillingContractual Employees Contractual Employees $25,000 $25,250 $26,134 $27,048 $27,860 $28,696 $29,557 $30,443 $31,357 $32,297 As Professional Services Utility BillingMaint. & Repair Services Maint. & Repair Services 6,104 6,165 6,381 6,604 6,802 7,006 7,216 7,433 7,656 7,886 As Materials & Supplies Utility BillingDuplication/Copy Costs Duplication/Copy Costs 12,600 12,726 13,171 13,632 14,041 14,463 14,897 15,343 15,804 16,278 As Materials & Supplies Utility BillingInsurance Premiums Insurance Premiums 93,511 115,394 125,779 137,100 149,439 162,888 177,548 193,527 210,945 229,930 As Insurance Utility BillingAutomotive Equip Rental Automotive Equip Rental 0 0 0 0 0 0 0 0 0 0 As Equipment Utility BillingComputer/Tech/Oper Supprt Computer/Tech/Oper Supprt 108,027 110,187 114,594 119,178 123,945 128,903 132,770 136,753 140,856 145,082 As Equipment Utility BillingTelephone Rental Telephone Rental 0 0 0 0 0 0 0 0 0 0 As Equipment Utility BillingPublicity & Advertising Publicity & Advertising 2,375 2,398 2,482 2,569 2,646 2,725 2,807 2,891 2,978 3,067 As Materials & Supplies Utility BillingPrinting & Mapping Printing & Mapping 74,145 86,577 89,607 92,743 95,526 98,392 101,343 104,384 107,515 110,741 As Materials & Supplies Utility BillingPostage/Mailing Services Postage/Mailing Services 464,265 470,321 486,782 503,820 518,934 534,502 550,537 567,053 584,065 601,587 As Materials & Supplies Utility BillingProcessing Fees Processing Fees 85,448 88,327 91,418 94,618 97,457 100,380 103,392 106,493 109,688 112,979 As Materials & Supplies Utility BillingComputer/Programming Svcs Computer/Programming Svcs 1,650 3,333 3,450 3,570 3,678 3,788 3,901 4,019 4,139 4,263 As Professional Services Utility BillingOther Services Other Services 700,000 707,000 728,210 750,056 772,558 795,735 819,607 844,195 869,521 895,606 As Miscellaneous ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Utility BillingTotal Other Services Total Other Services $1,573,125 $1,627,678 $1,688,009 $1,750,939 $1,812,885 $1,877,478 $1,943,575 $2,012,535 $2,084,523 $2,159,716 Materials & Supplies
Utility BillingMaterials and Supplies Materials and Supplies $20,000 $20,200 $20,907 $21,639 $22,288 $22,957 $23,645 $24,355 $25,085 $25,838 As Materials & Supplies Utility BillingComputer Software Computer Software 1,500 1,611 1,675 1,742 1,812 1,885 1,941 1,999 2,059 2,121 As Equipment Utility BillingFuels-Gas/Oil/Propane Fuels-Gas/Oil/Propane 21,941 30,705 31,933 33,210 34,539 35,920 37,178 38,479 39,826 41,219 As Utilities ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Utility BillingTotal Materials & Supplies Total Materials & Supplies $43,441 $52,516 $54,516 $56,592 $58,639 $60,762 $62,764 $64,833 $66,970 $69,178 Other Expenses
Utility BillingTrainingTraining $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Labor Utility BillingMeetings & Travel Meetings & Travel 1,500 1,515 1,568 1,623 1,672 1,722 1,773 1,827 1,881 1,938 As Materials & Supplies Utility BillingMemberships Memberships 600 606 627 649 669 689 709 731 753 775 As Materials & Supplies Utility BillingCar Mileage Reimbursement Car Mileage Reimbursement 600 606 627 649 669 689 709 731 753 775 As Materials & Supplies Utility BillingCollection Costs Collection Costs 45,579 46,035 47,416 48,839 50,304 51,813 53,367 54,968 56,617 58,316 As Miscellaneous Utility BillingTelephone Telephone 900 909 945 983 1,023 1,063 1,101 1,139 1,179 1,220 As Utilities Utility BillingTraining Services Training Services 9,000 9,090 9,363 9,644 9,933 10,231 10,538 10,854 11,180 11,515 As Labor Utility BillingSettlement Payments Settlement Payments 40,255 81,388 83,830 86,345 88,935 91,603 94,351 97,182 100,097 103,100 As Miscellaneous ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Utility BillingTotal Other Expenses Total Other Expenses $98,434 $140,149 $144,376 $148,731 $153,203 $157,809 $162,549 $167,431 $172,459 $177,639 Total Utility Billing Expenses $3,292,987 $3,558,330 $3,689,193 $3,822,386 $3,957,183 $4,097,448 $4,241,957 $4,392,385 $4,549,031 $4,712,213 DRAFT 08/12/2024 5
EXHIBIT 1
2163
City of Stockton
Wastewater Rate Study Page 3 of 18
Revenue Requirement
Exhibit 3
Budget Budget
FY 2023-24 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 Projected
Notes
Administration
Employee Services
AdministrationSalaries - Regular Salaries - Regular $798,465 $793,842 $817,657 $842,187 $867,453 $893,476 $920,280 $947,889 $976,326 $1,005,615 As Labor AdministrationSalaries - Part Time/Temp Salaries - Part Time/Temp 6,300 0 0 0 0 0 0 0 0 0 As Labor AdministrationRegular Overtime Regular Overtime 12,600 31,500 32,445 33,418 34,421 35,454 36,517 37,613 38,741 39,903 As Labor AdministrationEmployee Separation Pay Employee Separation Pay 9,694 9,811 10,105 10,408 10,721 11,042 11,374 11,715 12,066 12,428 As Labor AdministrationAdditional Pay Additional Pay 767 4,289 4,418 4,550 4,687 4,827 4,972 5,121 5,275 5,433 As Labor AdministrationRetirement Retirement 204,923 227,067 242,962 257,539 272,992 289,371 306,734 325,138 344,646 365,325 As Benefits - Retirement AdministrationMedicare Medicare 11,064 12,227 12,594 12,972 13,361 13,762 14,174 14,600 15,038 15,489 As Benefits - Medical AdministrationHealth/Dental/Vision Health/Dental/Vision 119,811 137,592 141,720 145,971 150,350 154,861 159,507 164,292 169,221 174,297 As Benefits - Medical AdministrationL/T Disability Insurance L/T Disability Insurance 3,215 5,018 5,169 5,324 5,483 5,648 5,817 5,992 6,172 6,357 As Benefits - Other AdministrationLife Insurance Life Insurance 537 529 545 561 578 595 613 632 651 670 As Benefits - Other AdministrationWorkers Compensation Workers Compensation 21,489 24,161 24,886 25,632 26,401 27,193 28,009 28,849 29,715 30,606 As Benefits - Other AdministrationUnemployment Insurance Unemployment Insurance 1,160 861 887 913 941 969 998 1,028 1,059 1,091 As Benefits - Other AdministrationCell Phone Allowance Cell Phone Allowance 2,646 2,079 2,141 2,206 2,272 2,340 2,410 2,482 2,557 2,634 As Miscellaneous AdministrationRetirement Pension Bond Retirement Pension Bond 0 0 0 0 0 0 0 0 0 0 As Benefits - Retirement Administration ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- AdministrationTotal Employee Services Total Employee Services $1,192,671 $1,248,976 $1,295,528 $1,341,683 $1,389,659 $1,439,539 $1,491,406 $1,545,350 $1,601,465 $1,659,848 Administration
Other Services
AdministrationTelephone Telephone $12,285 $12,663 $13,170 $13,696 $14,244 $14,814 $15,332 $15,869 $16,424 $16,999 As Utilities AdministrationComputer/Tech/Operation Support Computer/Tech/Operation Support 103,422 53,574 55,717 57,946 60,263 62,674 64,554 66,491 68,486 70,540 As Equipment AdministrationRadio Equipment Rental Radio Equipment Rental 1,596 1,649 1,715 1,784 1,855 1,929 1,987 2,047 2,108 2,171 As Equipment AdministrationOther Rentals Other Rentals 1,728,615 1,846,980 1,920,859 1,997,694 2,077,601 2,160,705 2,225,527 2,292,292 2,361,061 2,431,893 As Equipment AdministrationTelephone Rental Telephone Rental 0 0 0 0 0 0 0 0 0 0 As Materials & Supplies AdministrationWaterWater 567 0 0 0 0 0 0 0 0 0 As Utilities AdministrationStorm Water Storm Water 0 0 0 0 0 0 0 0 0 0 As Utilities AdministrationMaint. & Repair Services Maint. & Repair Services 5,670 6,300 6,521 6,749 6,951 7,160 7,375 7,596 7,824 8,058 As Materials & Supplies AdministrationUniform/Laundry Services Uniform/Laundry Services 1,890 1,890 1,956 2,025 2,085 2,148 2,212 2,279 2,347 2,417 As Materials & Supplies AdministrationDuplication/Copy Costs Duplication/Copy Costs 1,890 630 652 675 695 716 737 760 782 806 As Materials & Supplies AdministrationInsurance Premiums Insurance Premiums 73,587 86,390 94,165 102,640 111,878 121,947 132,922 144,885 157,924 172,137 As Insurance AdministrationAutomotive Equip Rental Automotive Equip Rental 0 14,158 14,724 15,313 15,925 16,562 17,059 17,571 18,098 18,641 As Equipment AdministrationPublicity & Advertising Publicity & Advertising 630 945 978 1,012 1,043 1,074 1,106 1,139 1,174 1,209 As Materials & Supplies AdministrationPostage/Mailing Services Postage/Mailing Services 0 63 65 67 70 72 74 76 78 81 As Materials & Supplies AdministrationProcessing Fees Processing Fees 0 7,500 7,763 8,034 8,275 8,523 8,779 9,043 9,314 9,593 As Materials & Supplies AdministrationLegal Services Legal Services 0 0 0 0 0 0 0 0 0 0 As Labor AdministrationTraining Services Training Services 6,300 9,450 9,734 10,026 10,326 10,636 10,955 11,284 11,622 11,971 As Labor AdministrationProf & Special Services Prof & Special Services 88,200 87,255 89,873 92,569 95,346 98,206 101,152 104,187 107,313 110,532 As Labor AdministrationOther Services Other Services 0 0 0 0 0 0 0 0 0 0 As Labor AdministrationTesting and Analysis Services Testing and Analysis Services 315 315 324 334 344 355 365 376 387 399 As Labor AdministrationRecoverable Legal Expense Recoverable Legal Expense 9,450 31,500 32,445 33,418 34,421 35,454 36,517 37,613 38,741 39,903 As Labor Administration ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- AdministrationTotal Other Services Total Other Services $2,034,417 $2,161,262 $2,250,660 $2,343,981 $2,441,323 $2,542,974 $2,626,654 $2,713,506 $2,803,683 $2,897,352 Administration
Materials & Supplies
AdministrationMaterials and Supplies Materials and Supplies $12,600 $18,900 $19,562 $20,246 $20,854 $21,479 $22,124 $22,787 $23,471 $24,175 As Materials & Supplies AdministrationComputer Software Computer Software 12,600 0 0 0 0 0 0 0 0 0 As Materials & Supplies AdministrationFuels-Gas/Oil/Propane Fuels-Gas/Oil/Propane 920 0 0 0 0 0 0 0 0 0 As Utilities AdministrationNon-Capital Assets Non-Capital Assets 25,200 15,750 16,301 16,872 17,378 17,899 18,436 18,989 19,559 20,146 As Materials & Supplies Administration ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- AdministrationTotal Materials & Supplies Total Materials & Supplies $51,320 $34,650 $35,863 $37,118 $38,231 $39,378 $40,560 $41,777 $43,030 $44,321 Administration
Other Expenses
AdministrationTraining Training $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Labor AdministrationMeetings & Travel Meetings & Travel 630 630 652 675 695 716 737 760 782 806 As Materials & Supplies AdministrationMemberships Memberships 756 756 782 810 834 859 885 911 939 967 As Materials & Supplies AdministrationIndirect Cost Allocation Indirect Cost Allocation 1,413,232 1,413,232 1,455,629 1,499,298 1,544,277 1,590,605 1,638,323 1,687,473 1,738,097 1,790,240 As Miscellaneous AdministrationCar Mileage Reimbursement Car Mileage Reimbursement 1,260 630 652 675 695 716 737 760 782 806 As Materials & Supplies AdministrationSettlement Payments Settlement Payments 29,921 28,068 28,910 29,777 30,671 31,591 32,539 33,515 34,520 35,556 As Miscellaneous AdministrationVehicle Acquisition Vehicle Acquisition 31,500 31,500 32,760 34,070 35,433 36,851 37,956 39,095 40,268 41,476 As Equipment AdministrationEquipment Acquisition Equipment Acquisition 6,300 0 0 0 0 0 0 0 0 0 As Equipment Administration ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- AdministrationTotal Other Expenses Total Other Expenses $1,483,599 $1,474,816 $1,519,386 $1,565,305 $1,612,605 $1,661,338 $1,711,178 $1,762,513 $1,815,388 $1,869,850 Administration
Total Administration $4,762,007 $4,919,704 $5,101,436 $5,288,087 $5,481,819 $5,683,229 $5,869,798 $6,063,146 $6,263,567 $6,471,371 DRAFT 08/12/2024 6
EXHIBIT 1
2164
City of Stockton
Wastewater Rate Study Page 4 of 18
Revenue Requirement
Exhibit 3
Budget Budget
FY 2023-24 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 Projected
Notes
Engineering Services
Employee Services
Engineering ServicesSalaries - Regular Salaries - Regular $1,174,474 $1,183,613 $1,219,121 $1,255,695 $1,293,366 $1,332,167 $1,372,132 $1,413,296 $1,455,695 $1,499,366 As Labor Engineering ServicesEmployee Separation Pay Employee Separation Pay 14,115 14,628 15,067 15,519 15,984 16,464 16,958 17,467 17,991 18,530 As Labor Engineering ServicesRetirement Retirement 302,663 338,273 361,952 383,669 406,689 431,091 456,956 484,374 513,436 544,242 As Benefits - Retirement Engineering ServicesMedicare Medicare 16,907 17,519 18,045 18,586 19,143 19,718 20,309 20,919 21,546 22,193 As Benefits - Medical Engineering ServicesHealth/Dental/Vision Health/Dental/Vision 147,386 171,360 176,501 181,796 187,250 192,867 198,653 204,613 210,751 217,074 As Benefits - Medical Engineering ServicesL/T Disability Insurance L/T Disability Insurance 4,933 7,455 7,679 7,909 8,146 8,391 8,642 8,902 9,169 9,444 As Benefits - Other Engineering ServicesLife Insurance Life Insurance 722 680 700 721 743 765 788 812 836 861 As Benefits - Other Engineering ServicesWorkers Compensation Workers Compensation 39,861 27,177 27,992 28,832 29,697 30,588 31,506 32,451 33,424 34,427 As Benefits - Other Engineering ServicesCell Phone Allowance Cell Phone Allowance 3,045 1,680 1,730 1,782 1,836 1,891 1,948 2,006 2,066 2,128 As Miscellaneous Engineering ServicesRegular Overtime Regular Overtime 4,486 3,500 3,605 3,713 3,825 3,939 4,057 4,179 4,305 4,434 As Labor Engineering ServicesAdditional Pay Additional Pay 5,959 5,390 5,552 5,718 5,890 6,066 6,248 6,436 6,629 6,828 As Labor Engineering ServicesUnemployment Insurance Unemployment Insurance 1,663 1,214 1,250 1,288 1,327 1,366 1,407 1,450 1,493 1,538 As Benefits - Other Engineering ServicesRetirement Pension Bond Retirement Pension Bond 0 0 0 0 0 0 0 0 0 0 As Benefits - Retirement Engineering ServicesVacation Sell Back Vacation Sell Back 0 2,414 2,486 2,561 2,638 2,717 2,798 2,882 2,969 3,058 As Labor ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Engineering ServicesTotal Employee Services Total Employee Services $1,716,214 $1,774,903 $1,841,681 $1,907,790 $1,976,534 $2,048,030 $2,122,404 $2,199,785 $2,280,310 $2,364,122 Engineering Services
Other Services
Engineering ServicesTelephone Telephone $699 $2,800 $2,912 $3,028 $3,150 $3,276 $3,390 $3,509 $3,632 $3,759 As Utilities Engineering ServicesMaintenance & Repair Services Maintenance & Repair Services 2,800 0 0 0 0 0 0 0 0 0 As Labor Engineering ServicesDuplication/Copy Costs Duplication/Copy Costs 1,400 1,400 1,442 1,485 1,530 1,576 1,623 1,672 1,722 1,773 As Miscellaneous Engineering ServicesInsurance Premiums Insurance Premiums 106,849 124,341 135,532 147,730 161,025 175,517 191,314 208,532 227,300 247,757 As Insurance Engineering ServicesAutomotive Equipment Rental Automotive Equipment Rental 0 0 0 0 0 0 0 0 0 0 As Equipment Engineering ServicesComputer/Tech/Operation Support Computer/Tech/Operation Support 136,641 120,658 125,484 130,504 135,724 141,153 145,387 149,749 154,241 158,869 As Equipment Engineering ServicesTelephone Rental Telephone Rental 0 0 0 0 0 0 0 0 0 0 As Equipment Engineering ServicesPublicity & Advertising Publicity & Advertising 3,500 2,100 2,174 2,250 2,317 2,387 2,458 2,532 2,608 2,686 As Materials & Supplies Engineering ServicesPrinting & Mapping Printing & Mapping 35,000 38,500 39,848 41,242 42,479 43,754 45,066 46,418 47,811 49,245 As Materials & Supplies Engineering ServicesPostage/Mailing Services Postage/Mailing Services 350 350 361 371 382 394 406 418 430 443 As Labor Engineering ServicesProcessing Fees Processing Fees 753 770 797 825 850 875 901 928 956 985 As Materials & Supplies Engineering ServicesUniform/Laundry Services Uniform/Laundry Services 474 560 580 600 618 636 656 675 695 716 As Materials & Supplies Engineering ServicesOther Services Other Services 0 0 0 0 0 0 0 0 0 0 As Labor Engineering ServicesTesting and Analysis Services Testing and Analysis Services 560 0 0 0 0 0 0 0 0 0 As Labor Engineering ServicesProfessional and Special Services Professional and Special Services 35,000 280,000 288,400 297,052 305,964 315,142 324,597 334,335 344,365 354,696 As Labor Engineering ServicesRadio Equipment Rental Radio Equipment Rental 1,397 960 994 1,028 1,059 1,091 1,124 1,157 1,192 1,228 As Materials & Supplies Engineering Services ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Engineering ServicesTotal Other Services Total Other Services $325,423 $572,439 $598,522 $626,115 $655,098 $685,801 $716,922 $749,926 $784,953 $822,158 Engineering Services
Materials & Supplies
Engineering ServicesMaterials & Supplies Materials & Supplies $7,000 $10,500 $10,868 $11,248 $11,585 $11,933 $12,291 $12,660 $13,039 $13,431 As Materials & Supplies Engineering ServicesComputer Software Computer Software 35,490 14,000 14,560 15,142 15,748 16,378 16,869 17,375 17,897 18,434 As Equipment Engineering ServicesSubscription - Periodical Subscription - Periodical 35 350 362 375 386 398 410 422 435 448 As Materials & Supplies Engineering ServicesFuels - Gas/Oil/Propane Fuels - Gas/Oil/Propane 2,925 832 866 900 936 974 1,008 1,043 1,079 1,117 As Utilities Engineering ServicesLibrary Materials Library Materials 8,652 3,500 3,623 3,749 3,862 3,978 4,097 4,220 4,346 4,477 As Materials & Supplies Engineering ServicesNon-Capital Assets Non-Capital Assets 31,500 10,500 10,868 11,248 11,585 11,933 12,291 12,660 13,039 13,431 As Materials & Supplies Engineering Services ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Engineering ServicesTotal Materials & Supplies Total Materials & Supplies $85,602 $39,682 $41,145 $42,663 $44,103 $45,593 $46,965 $48,379 $49,836 $51,336 Engineering Services
Other Expenses
Engineering ServicesTraining Training $7,350 $7,000 $7,210 $7,426 $7,649 $7,879 $8,115 $8,358 $8,609 $8,867 As Labor Engineering ServicesMeetings & Travel Meetings & Travel 0 0 0 0 0 0 0 0 0 0 As Materials & Supplies Engineering ServicesMemberships Memberships 1,960 1,750 1,811 1,875 1,931 1,989 2,048 2,110 2,173 2,238 As Materials & Supplies Engineering ServicesCar Mileage Reimbursement Car Mileage Reimbursement 70 70 72 75 77 80 82 84 87 90 As Materials & Supplies Engineering ServicesVehicle Acquisition Vehicle Acquisition 35,000 61,250 63,700 66,248 68,898 71,654 73,803 76,018 78,298 80,647 As Equipment Engineering ServicesSettlement Payments Settlement Payments 43,746 41,816 43,070 44,363 45,693 47,064 48,476 49,930 51,428 52,971 As Miscellaneous Engineering Services ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Engineering ServicesTotal Other Expenses Total Other Expenses $88,126 $111,886 $115,864 $119,987 $124,249 $128,665 $132,525 $136,501 $140,596 $144,814 Engineering Services
Total Engineering Services $2,215,365 $2,498,910 $2,597,212 $2,696,554 $2,799,983 $2,908,089 $3,018,817 $3,134,591 $3,255,694 $3,382,430 DRAFT 08/12/2024 7
EXHIBIT 1
2165
City of Stockton
Wastewater Rate Study Page 5 of 18
Revenue Requirement
Exhibit 3
Budget Budget
FY 2023-24 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 Projected
Notes
Treatment Operations
Employee Services
Treatment OperationsSalaries - Regular Salaries - Regular $2,493,076 $2,411,498 $2,483,843 $2,558,358 $2,635,109 $2,714,162 $2,795,587 $2,879,455 $2,965,838 $3,054,814 As Labor Treatment OperationsSalaries Part Time - Temp Salaries Part Time - Temp 48,000 48,000 49,440 50,923 52,451 54,024 55,645 57,315 59,034 60,805 As Labor Treatment OperationsRegular Overtime Regular Overtime 426,000 450,000 463,500 477,405 491,727 506,479 521,673 537,324 553,443 570,047 As Labor Treatment OperationsStand By Time (Call Back) Stand By Time (Call Back) 20,040 20,040 20,641 21,260 21,898 22,555 23,232 23,929 24,647 25,386 As Labor Treatment OperationsHoliday Pay Holiday Pay 90,000 93,000 95,790 98,664 101,624 104,672 107,812 111,047 114,378 117,810 As Labor Treatment OperationsEmployee Separation Pay Employee Separation Pay 27,724 29,804 30,698 31,619 32,568 33,545 34,551 35,588 36,655 37,755 As Labor Treatment OperationsAdditional Pay Additional Pay 5,941 12,000 12,360 12,731 13,113 13,506 13,911 14,329 14,758 15,201 As Labor Treatment OperationsRetirement Retirement 641,359 716,498 766,653 812,652 861,411 913,096 967,882 1,025,954 1,087,512 1,152,762 As Benefits - Retirement Treatment OperationsDeferred Compensation Deferred Compensation 114,487 110,020 117,721 124,785 132,272 140,208 148,621 157,538 166,990 177,009 As Benefits - Retirement Treatment OperationsMedicare Medicare 44,047 44,041 45,362 46,723 48,125 49,569 51,056 52,587 54,165 55,790 As Benefits - Medical Treatment OperationsHealth/Dental/Vision Health/Dental/Vision 413,632 494,760 509,603 524,891 540,638 556,857 573,562 590,769 608,492 626,747 As Benefits - Medical Treatment OperationsL/T Disability Insurance L/T Disability Insurance 10,470 15,212 15,668 16,138 16,623 17,121 17,635 18,164 18,709 19,270 As Benefits - Other Treatment OperationsLife Insurance Life Insurance 2,182 2,110 2,173 2,238 2,306 2,375 2,446 2,519 2,595 2,673 As Benefits - Other Treatment OperationsWorkers Compensation Workers Compensation 231,486 159,989 164,789 169,732 174,824 180,069 185,471 191,035 196,766 202,669 As Benefits - Other Treatment OperationsUnemployment Insurance Unemployment Insurance 4,665 3,276 3,374 3,476 3,580 3,687 3,798 3,912 4,029 4,150 As Benefits - Other Treatment OperationsCell Phone Allowance Cell Phone Allowance 3,360 3,660 3,770 3,883 3,999 4,119 4,243 4,370 4,501 4,636 As Miscellaneous Treatment OperationsVacation Sell Back Vacation Sell Back 0 1,619 1,668 1,718 1,769 1,822 1,877 1,933 1,991 2,051 As Labor Treatment Operations ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Treatment OperationsTotal Employee Services Total Employee Services $4,576,469 $4,615,527 $4,787,054 $4,957,196 $5,134,035 $5,317,867 $5,509,002 $5,707,767 $5,914,505 $6,129,575 Treatment Operations
Other Services
Treatment OperationsElectricity Electricity $6,000,000 $6,245,288 $6,557,552 $6,885,430 $7,229,702 $7,591,187 $7,970,746 $8,369,283 $8,787,747 $9,227,135 As Electricity Treatment OperationsGas Gas 390,000 417,360 434,054 451,417 469,473 488,252 505,341 523,028 541,334 560,281 As Utilities Treatment OperationsWater Water 450,000 475,000 494,000 513,760 534,310 555,683 575,132 595,261 616,095 637,659 As Utilities Treatment OperationsTelephone Telephone 63,300 69,000 71,760 74,630 77,616 80,720 83,545 86,470 89,496 92,628 As Utilities Treatment OperationsStormwater Stormwater 31,000 31,000 32,240 33,530 34,871 36,266 37,535 38,849 40,208 41,616 As Utilities Treatment OperationsMaintenance & Repair Services Maintenance & Repair Services 1,158,500 2,000,000 2,070,000 2,142,450 2,206,724 2,272,925 2,341,113 2,411,346 2,483,687 2,558,197 As Materials & Supplies Treatment OperationsUniform/Laundry Services Uniform/Laundry Services 16,000 50,000 51,750 53,561 55,168 56,823 58,528 60,284 62,092 63,955 As Materials & Supplies Treatment OperationsDuplication/Copy Costs Duplication/Copy Costs 2,000 2,000 2,070 2,142 2,207 2,273 2,341 2,411 2,484 2,558 As Materials & Supplies Treatment OperationsInsurance Premiums Insurance Premiums 268,794 304,092 331,460 361,292 393,808 429,251 467,883 509,993 555,892 605,922 As Insurance Treatment OperationsAutomotive Equipment Rental Automotive Equipment Rental 45,690 47,480 49,379 51,354 53,408 55,544 57,211 58,927 60,695 62,516 As Equipment Treatment OperationsComputer/Tech/Operation Support Computer/Tech/Operation Support 100,602 108,357 112,149 116,075 119,557 123,144 126,838 130,643 134,562 138,599 As Materials & Supplies Treatment OperationsRadio Equipment Rental Radio Equipment Rental 25,935 26,624 27,556 28,520 29,376 30,257 31,165 32,100 33,063 34,055 As Materials & Supplies Treatment OperationsOther Rentals Other Rentals 6,600 100,000 103,500 107,123 110,336 113,646 117,056 120,567 124,184 127,910 As Materials & Supplies Treatment OperationsPool Vehicle Rental Pool Vehicle Rental 0 0 0 0 0 0 0 0 0 0 As Equipment Treatment OperationsTelephone Rental Telephone Rental 0 0 0 0 0 0 0 0 0 0 As Materials & Supplies Treatment OperationsPublicity & Advertising Publicity & Advertising 3,500 1,200 1,242 1,285 1,324 1,364 1,405 1,447 1,490 1,535 As Materials & Supplies Treatment OperationsPostage/Mailing Services Postage/Mailing Services 500 500 518 536 552 568 585 603 621 640 As Materials & Supplies Treatment OperationsProcessing Fees Processing Fees 667,000 708,000 732,780 758,427 781,180 804,616 828,754 853,617 879,225 905,602 As Materials & Supplies Treatment OperationsTesting & Analysis Services Testing & Analysis Services 2,500 2,500 2,575 2,652 2,732 2,814 2,898 2,985 3,075 3,167 As Labor Treatment OperationsTraining Services Training Services 53,500 51,000 52,530 54,106 55,729 57,401 59,123 60,897 62,724 64,605 As Labor Treatment OperationsProfessional & Special Services Professional & Special Services 4,382,163 6,741,450 6,943,694 7,152,004 7,366,564 7,587,561 7,815,188 8,049,644 8,291,133 8,539,867 As Labor Treatment OperationsOther Services Other Services 0 0 0 0 0 0 0 0 0 0 As Labor Treatment OperationsLegal Services Legal Services 15,000 40,000 41,200 42,436 43,709 45,020 46,371 47,762 49,195 50,671 As Labor Treatment OperationsBuilding Repairs/Maint Building Repairs/Maint 2,000 0 0 0 0 0 0 0 0 0 As Materials & Supplies Treatment OperationsSecurity & Alarm Services Security & Alarm Services 86,400 86,400 89,424 92,554 95,330 98,190 101,136 104,170 107,295 110,514 As Professional Services Treatment Operations ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Treatment OperationsTotal Other Services Total Other Services $13,770,984 $17,507,251 $18,201,433 $18,925,284 $19,663,676 $20,433,505 $21,229,894 $22,060,286 $22,926,298 $23,829,631 Treatment Operations
Materials & Supplies
Treatment OperationsMaterials & Supplies Materials & Supplies $250,000 $250,000 $258,750 $267,806 $275,840 $284,116 $292,639 $301,418 $310,461 $319,775 As Materials & Supplies Treatment OperationsComputer Software Computer Software 1,000 1,000 1,035 1,071 1,103 1,136 1,171 1,206 1,242 1,279 As Materials & Supplies Treatment OperationsSubscription-Periodical Subscription-Periodical 500 500 518 536 552 568 585 603 621 640 As Materials & Supplies Treatment OperationsFuels - Gas/Oil/Propane Fuels - Gas/Oil/Propane 41,380 33,588 34,764 35,981 37,060 38,172 39,317 40,497 41,712 42,963 As Materials & Supplies Treatment OperationsChemicals Chemicals 8,200,000 8,500,000 8,840,000 9,193,600 9,561,344 9,943,798 10,242,112 10,549,375 10,865,856 11,191,832 As Chemicals Treatment OperationsLibrary Materials Library Materials 5,000 0 0 0 0 0 0 0 0 0 As Materials & Supplies Treatment OperationsNon-Capital Assets Non-Capital Assets 975,000 1,015,000 1,050,525 1,087,293 1,119,912 1,153,510 1,188,115 1,223,758 1,260,471 1,298,285 As Materials & Supplies Treatment Operations ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Treatment OperationsTotal Materials & Supplies Total Materials & Supplies $9,472,880 $9,800,088 $10,185,592 $10,586,287 $10,995,812 $11,421,300 $11,763,939 $12,116,857 $12,480,363 $12,854,773 DRAFT 08/12/2024 8
EXHIBIT 1
2166
City of Stockton
Wastewater Rate Study Page 6 of 18
Revenue Requirement
Exhibit 3
Budget Budget
FY 2023-24 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 Projected
Notes
Other Expenses
Treatment OperationsTraining Training $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Labor Treatment OperationsMeetings & Travel Meetings & Travel 1,180 1,000 1,035 1,071 1,103 1,136 1,171 1,206 1,242 1,279 As Materials & Supplies Treatment OperationsMemberships Memberships 150,000 150,000 155,250 160,684 165,504 170,469 175,583 180,851 186,277 191,865 As Materials & Supplies Treatment OperationsTaxes Taxes 60,000 65,750 68,051 70,433 72,546 74,722 76,964 79,273 81,651 84,101 As Materials & Supplies Treatment OperationsRetirement Expense Retirement Expense 289,303 289,303 309,554 328,127 347,815 368,684 390,805 414,253 439,109 465,455 As Benefits - Retirement Treatment OperationsCar Mileage Reimbursement Car Mileage Reimbursement 1,000 1,000 1,035 1,071 1,103 1,136 1,171 1,206 1,242 1,279 As Materials & Supplies Treatment OperationsSettlement Payments Settlement Payments 85,798 85,298 87,857 90,493 93,207 96,004 98,884 101,850 104,906 108,053 As Miscellaneous Treatment OperationsVehicle Acquisition Vehicle Acquisition 105,000 282,500 293,800 305,552 317,774 330,485 340,400 350,612 361,130 371,964 As Equipment Treatment OperationsEquipment Acquisition Equipment Acquisition 570,000 345,000 358,800 373,152 388,078 403,601 415,709 428,181 441,026 454,257 As Equipment Treatment Operations ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Treatment OperationsTotal Other Expenses Total Other Expenses $1,262,281 $1,219,851 $1,275,382 $1,330,583 $1,387,132 $1,446,239 $1,500,686 $1,557,431 $1,616,582 $1,678,252 Treatment Operations
Total Treatment Operations $29,082,614 $33,142,717 $34,449,461 $35,799,351 $37,180,655 $38,618,910 $40,003,521 $41,442,341 $42,937,747 $44,492,232 Treatment Operations
Sanitary Sewer Collections
Employee Services
Sanitary Sewer CollectionsSalaries - Regular Salaries - Regular $2,912,056 $2,999,402 $3,089,384 $3,182,066 $3,277,528 $3,375,853 $3,477,129 $3,581,443 $3,688,886 $3,799,553 As Labor Sanitary Sewer CollectionsSalaries Part Time - Temp Salaries Part Time - Temp 0 0 0 0 0 0 0 0 0 0 As Labor Sanitary Sewer CollectionsRegular Overtime Regular Overtime 150,000 150,000 154,500 159,135 163,909 168,826 173,891 179,108 184,481 190,016 As Labor Sanitary Sewer CollectionsStand By Time Stand By Time 40,000 40,000 41,200 42,436 43,709 45,020 46,371 47,762 49,195 50,671 As Labor Sanitary Sewer CollectionsHoliday Pay Holiday Pay 6,500 6,500 6,695 6,896 7,103 7,316 7,535 7,761 7,994 8,234 As Labor Sanitary Sewer CollectionsEmployee Separation Pay Employee Separation Pay 34,355 37,070 38,182 39,328 40,507 41,723 42,974 44,264 45,591 46,959 As Labor Sanitary Sewer CollectionsAdditional Pay Additional Pay 38,194 34,925 35,973 37,052 38,163 39,308 40,488 41,702 42,953 44,242 As Labor Sanitary Sewer CollectionsRetirement Retirement 748,013 858,100 918,167 973,257 1,031,652 1,093,552 1,159,165 1,228,715 1,302,437 1,380,584 As Benefits - Retirement Sanitary Sewer CollectionsDeferred Compensation Deferred Compensation 143,382 148,674 159,081 168,626 178,744 189,468 200,836 212,887 225,660 239,199 As Benefits - Retirement Sanitary Sewer CollectionsMedicare Medicare 44,831 46,864 48,270 49,718 51,210 52,746 54,328 55,958 57,637 59,366 As Benefits - Medical Sanitary Sewer CollectionsHealth/Dental/Vision Health/Dental/Vision 571,886 1,182,907 1,218,394 1,254,946 1,292,594 1,331,372 1,371,313 1,412,453 1,454,826 1,498,471 As Benefits - Medical Sanitary Sewer CollectionsL/T Disability Insurance L/T Disability Insurance 12,231 19,138 19,712 20,304 20,913 21,540 22,186 22,852 23,537 24,243 As Benefits - Other Sanitary Sewer CollectionsLife Insurance Life Insurance 3,007 2,987 3,077 3,169 3,264 3,362 3,463 3,567 3,674 3,784 As Benefits - Other Sanitary Sewer CollectionsWorkers Compensation Workers Compensation 285,343 210,825 217,150 223,664 230,374 237,285 244,404 251,736 259,288 267,067 As Benefits - Other Sanitary Sewer CollectionsUnemployment Insurance Unemployment Insurance 4,532 3,310 3,409 3,512 3,617 3,725 3,837 3,952 4,071 4,193 As Benefits - Other Sanitary Sewer CollectionsCell Phone Allowance Cell Phone Allowance 5,970 2,190 2,256 2,323 2,393 2,465 2,539 2,615 2,693 2,774 As Miscellaneous Sanitary Sewer CollectionsVacation Sell Back Vacation Sell Back 0 6,116 6,299 6,488 6,683 6,884 7,090 7,303 7,522 7,748 As Labor Sanitary Sewer Collections ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Sanitary Sewer CollectionsTotal Employee Services Total Employee Services $5,000,300 $5,749,008 $5,961,749 $6,172,919 $6,392,363 $6,620,446 $6,857,550 $7,104,076 $7,360,447 $7,627,103 Sanitary Sewer Collections
Other Services
Sanitary Sewer CollectionsTelephone Telephone $8,000 $8,000 $8,320 $8,653 $8,999 $9,359 $9,686 $10,025 $10,376 $10,740 As Utilities Sanitary Sewer CollectionsMaintenance & Repair Services Maintenance & Repair Services 2,815,000 2,528,000 2,603,840 2,681,955 2,762,414 2,845,286 2,930,645 3,018,564 3,109,121 3,202,395 As Labor Sanitary Sewer CollectionsUniform/Laundry Services Uniform/Laundry Services 22,000 45,000 46,350 47,741 49,173 50,648 52,167 53,732 55,344 57,005 As Labor Sanitary Sewer CollectionsDuplication/Copy Costs Duplication/Copy Costs 2,500 1,000 1,030 1,061 1,093 1,126 1,159 1,194 1,230 1,267 As Miscellaneous Sanitary Sewer CollectionsInsurance Premiums Insurance Premiums 281,180 330,821 360,595 393,048 428,423 466,981 509,009 554,820 604,754 659,182 As Insurance Sanitary Sewer CollectionsAutomotive Equipment Rental Automotive Equipment Rental 305,670 443,366 461,101 479,545 498,726 518,675 534,236 550,263 566,771 583,774 As Equipment Sanitary Sewer CollectionsComputer/Tech/Operation Support Computer/Tech/Operation Support 157,534 165,931 172,568 179,471 186,650 194,116 199,939 205,937 212,116 218,479 As Equipment Sanitary Sewer CollectionsRadio Equipment Rental Radio Equipment Rental 53,845 55,261 57,471 59,770 62,161 64,648 66,587 68,585 70,642 72,761 As Equipment Sanitary Sewer CollectionsOther Rentals Other Rentals 35,000 35,000 36,400 37,856 39,370 40,945 42,173 43,439 44,742 46,084 As Equipment Sanitary Sewer CollectionsTelephone Rental Telephone Rental 0 0 0 0 0 0 0 0 0 0 As Equipment Sanitary Sewer CollectionsPublicity & Advertising Publicity & Advertising 1,000 1,000 1,030 1,061 1,093 1,126 1,159 1,194 1,230 1,267 As Miscellaneous Sanitary Sewer CollectionsPostage/Mailing Services Postage/Mailing Services 6,000 6,000 6,180 6,365 6,556 6,753 6,956 7,164 7,379 7,601 As Labor Sanitary Sewer CollectionsProcessing Fees Processing Fees 98,000 118,000 121,540 125,186 128,942 132,810 136,794 140,898 145,125 149,479 As Miscellaneous Sanitary Sewer CollectionsTesting & Analysis Services Testing & Analysis Services 1,500 1,500 1,545 1,591 1,639 1,688 1,739 1,791 1,845 1,900 As Labor Sanitary Sewer CollectionsTraining Services Training Services 40,000 40,000 41,200 42,436 43,709 45,020 46,371 47,762 49,195 50,671 As Labor Sanitary Sewer CollectionsProfessional & Special Services Professional & Special Services 247,163 535,000 551,050 567,582 584,609 602,147 620,212 638,818 657,983 677,722 As Labor Sanitary Sewer CollectionsOther Services Other Services 0 0 0 0 0 0 0 0 0 0 As Labor Sanitary Sewer CollectionsElectricity Electricity 1,000 1,000 1,050 1,103 1,158 1,216 1,276 1,340 1,407 1,477 As Electricity Sanitary Sewer Collections ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Sanitary Sewer CollectionsTotal Other Services Total Other Services $4,075,392 $4,314,879 $4,471,270 $4,634,424 $4,804,714 $4,982,543 $5,160,109 $5,345,527 $5,539,259 $5,741,802 DRAFT 08/12/2024 9
EXHIBIT 1
2167
City of Stockton
Wastewater Rate Study Page 7 of 18
Revenue Requirement
Exhibit 3
Budget Budget
FY 2023-24 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 Projected
Notes
Materials & Supplies
Sanitary Sewer CollectionsMaterials & Supplies Materials & Supplies $400,000 $625,000 $646,875 $669,516 $689,601 $710,289 $731,598 $753,546 $776,152 $799,437 As Materials & Supplies Sanitary Sewer CollectionsFuels - Gas/Oil/Propane Fuels - Gas/Oil/Propane 270,001 185,621 192,118 198,842 204,807 210,951 217,280 223,798 230,512 237,428 As Materials & Supplies Sanitary Sewer CollectionsChemicals Chemicals 1,500,000 1,500,000 1,560,000 1,622,400 1,687,296 1,754,788 1,807,431 1,861,654 1,917,504 1,975,029 As Chemicals Sanitary Sewer CollectionsComputer Software Computer Software 7,000 7,000 7,245 7,499 7,724 7,955 8,194 8,440 8,693 8,954 As Materials & Supplies Sanitary Sewer CollectionsNon-Capital Assets Non-Capital Assets 150,000 250,000 258,750 267,806 275,840 284,116 292,639 301,418 310,461 319,775 As Materials & Supplies Sanitary Sewer Collections ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Sanitary Sewer CollectionsTotal Materials & Supplies Total Materials & Supplies $2,327,001 $2,567,621 $2,664,988 $2,766,062 $2,865,268 $2,968,099 $3,057,142 $3,148,856 $3,243,322 $3,340,622 Sanitary Sewer Collections
Other Expenses
Sanitary Sewer CollectionsTraining Training $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Labor Sanitary Sewer CollectionsMeetings & Travel Meetings & Travel 1,000 1,000 1,030 1,061 1,093 1,126 1,159 1,194 1,230 1,267 As Miscellaneous Sanitary Sewer CollectionsMemberships Memberships 30,000 25,000 25,750 26,523 27,318 28,138 28,982 29,851 30,747 31,669 As Miscellaneous Sanitary Sewer CollectionsRetirement Expense Retirement Expense 289,303 289,303 309,554 328,127 347,815 368,684 390,805 414,253 439,109 465,455 As Benefits - Retirement Sanitary Sewer CollectionsVehicle Acquisition Vehicle Acquisition 2,090,000 1,400,000 1,456,000 1,514,240 1,574,810 1,637,802 1,686,936 1,737,544 1,789,670 1,843,361 As Equipment Sanitary Sewer CollectionsEquipment Acquisition Equipment Acquisition 0 0 0 0 0 0 0 0 0 0 As Equipment Sanitary Sewer CollectionsSettlement Payments Settlement Payments 106,135 105,845 109,020 112,291 115,660 119,129 122,703 126,384 130,176 134,081 As Miscellaneous Sanitary Sewer Collections ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Sanitary Sewer CollectionsTotal Other Expenses Total Other Expenses $2,516,438 $1,821,148 $1,901,355 $1,982,242 $2,066,695 $2,154,879 $2,230,586 $2,309,227 $2,390,932 $2,475,833 Sanitary Sewer Collections
Total Sanitary Sewer Collections $13,919,131 $14,452,656 $14,999,362 $15,555,647 $16,129,041 $16,725,967 $17,305,387 $17,907,687 $18,533,960 $19,185,360 Sanitary Sewer Collections
Laboratory
Employee Services
LaboratorySalaries - Regular Salaries - Regular $516,156 $520,429 $536,042 $552,123 $568,687 $585,747 $603,320 $621,419 $640,062 $659,264 As Labor LaboratorySalaries Part Time - Temp Salaries Part Time - Temp 40,500 40,500 41,715 42,966 44,255 45,583 46,951 48,359 49,810 51,304 As Labor LaboratoryRegular Overtime Regular Overtime 3,600 3,600 3,708 3,819 3,934 4,052 4,173 4,299 4,428 4,560 As Labor LaboratoryHoliday Pay Holiday Pay 3,450 3,450 3,554 3,660 3,770 3,883 3,999 4,119 4,243 4,370 As Labor LaboratoryAdditional Pay Additional Pay 900 900 927 955 983 1,013 1,043 1,075 1,107 1,140 As Labor LaboratoryRetirement Retirement 132,698 149,300 159,751 169,336 179,496 190,266 201,682 213,783 226,610 240,206 As Benefits - Retirement LaboratoryDeferred Compensation Deferred Compensation 25,975 21,013 22,484 23,833 25,263 26,779 28,385 30,089 31,894 33,807 As Benefits - Retirement LaboratoryMedicareMedicare 8,042 8,242 8,489 8,744 9,006 9,276 9,555 9,841 10,137 10,441 As Benefits - Medical LaboratoryHealth/Dental/Vision Health/Dental/Vision 90,673 112,140 115,504 118,969 122,538 126,215 130,001 133,901 137,918 142,056 As Benefits - Medical LaboratoryL/T Disability Insurance L/T Disability Insurance 2,168 3,278 3,376 3,478 3,582 3,689 3,800 3,914 4,032 4,152 As Benefits - Other LaboratoryLife Insurance Life Insurance 474 475 489 504 519 535 551 567 584 602 As Benefits - Other LaboratoryWorkers Compensation Workers Compensation 17,030 12,785 13,169 13,564 13,971 14,390 14,821 15,266 15,724 16,196 As Benefits - Other LaboratoryUnemployment Insurance Unemployment Insurance 820 589 607 625 644 663 683 703 724 746 As Benefits - Other LaboratoryCell Phone Allowance Cell Phone Allowance 1,215 540 556 573 590 608 626 645 664 684 As Miscellaneous LaboratoryRetirement Pension Bond Retirement Pension Bond 0 0 0 0 0 0 0 0 0 0 As Benefits - Retirement LaboratoryEmployee Separation Pay Employee Separation Pay 4,960 6,432 6,625 6,824 7,028 7,239 7,456 7,680 7,911 8,148 As Labor LaboratoryVacation Sell Back Vacation Sell Back 0 1,061 1,093 1,126 1,159 1,194 1,230 1,267 1,305 1,344 As Labor ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- LaboratoryTotal Employee Services Total Employee Services $848,661 $884,734 $918,089 $951,098 $985,426 $1,021,132 $1,058,277 $1,096,927 $1,137,151 $1,179,021 Other Services
LaboratoryTelephoneTelephone $3,150 $1,875 $1,950 $2,028 $2,109 $2,193 $2,270 $2,350 $2,432 $2,517 As Utilities LaboratoryMaintenance & Repair Services Maintenance & Repair Services 75,938 63,000 64,890 66,837 68,842 70,907 73,034 75,225 77,482 79,807 As Labor LaboratoryUniform/Laundry Services Uniform/Laundry Services 3,750 6,375 6,566 6,763 6,966 7,175 7,390 7,612 7,840 8,076 As Labor LaboratoryDuplication/Copy Costs Duplication/Copy Costs 375 375 388 402 414 426 439 452 466 480 As Materials & Supplies LaboratoryInsurance Premiums Insurance Premiums 50,270 58,031 63,254 68,947 75,152 81,915 89,288 97,324 106,083 115,630 As Insurance LaboratoryAutomotive Equipment Rental Automotive Equipment Rental 0 15,997 16,637 17,302 17,994 18,714 19,276 19,854 20,450 21,063 As Equipment LaboratoryComputer/Tech/Operation Support Computer/Tech/Operation Support 32,716 39,293 40,865 42,499 44,199 45,967 47,346 48,767 50,230 51,737 As Equipment LaboratoryRadio Equipment Rental Radio Equipment Rental 499 1,543 1,605 1,669 1,736 1,805 1,859 1,915 1,972 2,032 As Equipment LaboratoryTelephone Rental Telephone Rental 0 0 0 0 0 0 0 0 0 0 As Equipment LaboratoryPublicity & Advertising Publicity & Advertising 1,200 1,200 1,236 1,273 1,311 1,351 1,391 1,433 1,476 1,520 As Miscellaneous LaboratoryPostage/Mailing Services Postage/Mailing Services 225 225 232 239 246 253 261 269 277 285 As Miscellaneous LaboratoryProcessing Fees Processing Fees 46,500 42,375 43,646 44,956 46,304 47,693 49,124 50,598 52,116 53,679 As Miscellaneous LaboratoryTesting & Analysis Services Testing & Analysis Services 750 750 773 796 820 844 869 896 922 950 As Labor LaboratoryTraining Services Training Services 22,238 11,250 11,588 11,935 12,293 12,662 13,042 13,433 13,836 14,251 As Labor LaboratoryProfessional & Special Services Professional & Special Services 48,863 30,000 30,900 31,827 32,782 33,765 34,778 35,822 36,896 38,003 As Labor LaboratoryOther Services Othr Services 0 0 0 0 0 0 0 0 0 0 As Labor LaboratoryLaboratory Service Laboratory Service 142,050 104,625 107,764 110,997 114,327 117,756 121,289 124,928 128,676 132,536 As Labor LaboratoryBuilding Repairs/Maint Building Repairs/Maint 1,875 1,875 1,941 2,009 2,069 2,131 2,195 2,261 2,328 2,398 As Materials & Supplies ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- LaboratoryTotal Other Services Total Other Services $430,399 $378,789 $394,233 $410,477 $427,563 $445,560 $463,852 $483,137 $503,482 $524,964 DRAFT 08/12/2024 10 EXHIBIT 1
2168
City of Stockton
Wastewater Rate Study Page 8 of 18
Revenue Requirement
Exhibit 3
Budget Budget
FY 2023-24 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 Projected
Notes
Materials & Supplies
LaboratoryMaterials & Supplies Materials & Supplies $139,875 $127,125 $131,574 $136,179 $140,265 $144,473 $148,807 $153,271 $157,869 $162,605 As Materials & Supplies LaboratoryComputer Software Computer Software 6,375 118,875 123,630 128,575 133,718 139,067 143,239 147,536 151,962 156,521 As Equipment LaboratoryFuels - Gas/Oil/Propane Fuels - Gas/Oil/Propane 1,646 2,625 2,730 2,839 2,953 3,071 3,179 3,290 3,405 3,524 As Utilities LaboratoryChemicalsChemicals 75,000 75,000 78,000 81,120 84,365 87,739 90,372 93,083 95,875 98,751 As Chemicals LaboratoryLibrary Materials Library Materials 450 750 776 803 828 852 878 904 931 959 As Materials & Supplies LaboratoryNon-Capital Assets Non-Capital Assets 7,500 7,500 7,763 8,034 8,275 8,523 8,779 9,043 9,314 9,593 As Materials & Supplies ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- LaboratoryTotal Materials & Supplies Total Materials & Supplies $230,846 $331,875 $344,473 $357,552 $370,404 $383,726 $395,253 $407,127 $419,357 $431,955 Other Expenses
LaboratoryMemberships Memberships $2,513 $2,513 $2,588 $2,666 $2,746 $2,828 $2,913 $3,001 $3,091 $3,183 As Miscellaneous LaboratoryMeetings & Travel Meetings & Travel 1,613 1,500 1,553 1,607 1,655 1,705 1,756 1,809 1,863 1,919 As Materials & Supplies LaboratoryTraining Training 0 0 0 0 0 0 0 0 0 0 As Labor LaboratoryVehicle Acquisition Vehicle Acquisition 0 0 0 0 0 0 0 0 0 0 As Materials & Supplies LaboratoryEquipment Acquisition Equipment Acquisition 358,500 18,750 19,500 20,280 21,091 21,935 22,593 23,271 23,969 24,688 As Equipment LaboratorySettlement Payments Settlement Payments 15,341 18,334 18,884 19,451 20,034 20,635 21,254 21,892 22,549 23,225 As Miscellaneous ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- LaboratoryTotal Other Expenses Total Other Expenses $377,967 $41,097 $42,525 $44,003 $45,526 $47,103 $48,516 $49,972 $51,471 $53,015 Total Laboratory $1,887,873 $1,636,495 $1,699,320 $1,763,131 $1,828,920 $1,897,521 $1,965,899 $2,037,162 $2,111,461 $2,188,954 Other Support Services
Employee Services
Other Support ServicesSalaries - Regular Salaries - Regular $614,960 $707,156 $728,371 $750,222 $772,728 $795,910 $819,788 $844,381 $869,713 $895,804 As Labor Other Support ServicesSalaries Part Time - Temp Salaries Part Time - Temp 0 0 0 0 0 0 0 0 0 0 As Labor Other Support ServicesRegular Overtime Regular Overtime 0 0 0 0 0 0 0 0 0 0 As Labor Other Support ServicesEmployee Separation Pay Employee Separation Pay 7,563 8,740 9,002 9,272 9,550 9,837 10,132 10,436 10,749 11,072 As Labor Other Support ServicesAdditional Pay Additional Pay 214 0 0 0 0 0 0 0 0 0 As Labor Other Support ServicesRetirement Retirement 157,731 202,116 216,264 229,240 242,994 257,574 273,028 289,410 306,775 325,181 As Benefits - Retirement Other Support ServicesDeferred Compensation Deferred Compensation 9,737 10,280 11,000 11,660 12,359 13,101 13,887 14,720 15,603 16,539 As Benefits - Retirement Other Support ServicesMedicare Medicare 8,830 9,725 10,017 10,317 10,627 10,946 11,274 11,612 11,961 12,319 As Benefits - Medical Other Support ServicesHealth/Dental/Vision Health/Dental/Vision 84,357 118,742 122,304 125,973 129,753 133,645 137,655 141,784 146,038 150,419 As Benefits - Medical Other Support ServicesL/T Disability Insurance L/T Disability Insurance 2,583 4,478 4,612 4,751 4,893 5,040 5,191 5,347 5,507 5,673 As Benefits - Other Other Support ServicesLife Insurance Life Insurance 407 462 476 490 505 520 536 552 568 585 As Benefits - Other Other Support ServicesWorkers Compensation Workers Compensation 19,097 23,032 23,723 24,435 25,168 25,923 26,700 27,501 28,326 29,176 As Benefits - Other Other Support ServicesUnemployment Insurance Unemployment Insurance 864 713 734 756 779 802 827 851 877 903 As Benefits - Other Other Support ServicesCell Phone Allowance Cell Phone Allowance 3,897 4,431 4,564 4,701 4,842 4,987 5,137 5,291 5,450 5,613 As Miscellaneous Other Support ServicesVacation Sell Back Vacation Sell Back 0 1,442 1,485 1,530 1,576 1,623 1,672 1,722 1,773 1,827 As Labor Other Support Services ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Other Support ServicesTotal Employee Services Total Employee Services $910,240 $1,091,317 $1,132,552 $1,173,347 $1,215,774 $1,259,908 $1,305,826 $1,353,608 $1,403,340 $1,455,111 Other Support Services
Other Services
Other Support ServicesInsurance Premiums Insurance Premiums $55,433 $73,048 $79,622 $86,788 $94,599 $103,113 $112,393 $122,509 $133,535 $145,553 As Insurance Other Support ServicesProf & Special Services Prof & Special Services 30,410 128,895 132,762 136,745 140,847 145,072 149,425 153,907 158,525 163,280 As Labor Other Support Services ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Other Support ServicesTotal Other Services Total Other Services $85,843 $201,943 DRAFT
$212,384 $223,533 $235,446 $248,186 $261,818 $276,416 $292,059 $308,833 08/12/2024 11 EXHIBIT 1
2169
City of Stockton
Wastewater Rate Study Page 9 of 18
Revenue Requirement
Exhibit 3
Budget Budget
FY 2023-24 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 Projected
Notes
Materials & Supplies
Other Support ServicesMaterials & Supplies Materials & Supplies $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Materials & Supplies Other Support ServicesSettlement Payments Settlement Payments 23,327 24,984 25,734 26,506 27,301 28,120 28,963 29,832 30,727 31,649 As Miscellaneous Other Support Services ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Other Support ServicesTotal Materials & Supplies Total Materials & Supplies $23,327 $24,984 $25,734 $26,506 $27,301 $28,120 $28,963 $29,832 $30,727 $31,649 Other Support Services
Total Other Support Services $1,019,410 $1,318,244 $1,370,670 $1,423,385 $1,478,521 $1,536,213 $1,596,607 $1,659,856 $1,726,126 $1,795,593 Environmental Control
Employee Services
Environmental ControlSalaries - Regular Salaries - Regular $475,475 $475,417 $489,680 $504,370 $519,501 $535,086 $551,139 $567,673 $584,703 $602,244 As Labor Environmental ControlRegular Overtime Regular Overtime 29,892 29,892 30,789 31,712 32,664 33,644 34,653 35,693 36,763 37,866 As Labor Environmental ControlStand By Time Stand By Time 23,505 42,342 43,613 44,921 46,269 47,657 49,086 50,559 52,076 53,638 As Labor Environmental ControlEmployee Separation Pay Employee Separation Pay 5,714 5,876 6,052 6,234 6,421 6,613 6,812 7,016 7,227 7,444 As Labor Environmental ControlAdditional Pay Additional Pay 13,749 13,992 14,412 14,844 15,289 15,748 16,221 16,707 17,208 17,725 As Labor Environmental ControlRetirement Retirement 125,597 140,027 149,829 158,819 168,348 178,449 189,156 200,505 212,535 225,287 As Benefits - Retirement Environmental ControlDeferred Compensation Deferred Compensation 21,966 21,772 23,296 24,694 26,175 27,746 29,411 31,175 33,046 35,029 As Benefits - Retirement Environmental ControlMedicare Medicare 8,105 8,541 8,797 9,061 9,333 9,613 9,901 10,198 10,504 10,819 As Benefits - Medical Environmental ControlHealth/Dental/Vision Health/Dental/Vision 79,874 114,913 118,360 121,911 125,569 129,336 133,216 137,212 141,328 145,568 As Benefits - Medical Environmental ControlL/T Disability Insurance L/T Disability Insurance 1,997 3,033 3,124 3,218 3,314 3,414 3,516 3,622 3,730 3,842 As Benefits - Other Environmental ControlLife Insurance Life Insurance 413 412 424 437 450 464 478 492 507 522 As Benefits - Other Environmental ControlWorkers Compensation Workers Compensation 16,655 14,998 15,448 15,911 16,389 16,880 17,387 17,908 18,446 18,999 As Benefits - Other Environmental ControlUnemployment Insurance Unemployment Insurance 833 621 640 659 679 699 720 742 764 787 As Benefits - Other Environmental ControlCell Phone Allowance Cell Phone Allowance 978 690 711 732 754 777 800 824 849 874 As Miscellaneous Environmental ControlRetirement Pension Bond Retirement Pension Bond 0 0 0 0 0 0 0 0 0 0 As Benefits - Retirement Environmental ControlHoliday Pay Holiday Pay 2,068 2,162 2,227 2,294 2,362 2,433 2,506 2,582 2,659 2,739 As Labor Environmental ControlPart-Time Salaries Part-Time Salaries 23,500 23,500 24,205 24,931 25,679 26,449 27,243 28,060 28,902 29,769 As Labor Environmental ControlPart-Time Salaries (2) Part-Time Salaries (2) 0 15,400 15,862 16,338 16,828 17,333 17,853 18,388 18,940 19,508 As Labor Environmental ControlVacation Sell Back Vacation Sell Back 0 969 998 1,028 1,059 1,091 1,123 1,157 1,192 1,228 As Labor Environmental Control ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Environmental ControlTotal Employee Services Total Employee Services $830,321 $914,557 $948,466 $982,114 $1,017,082 $1,053,431 $1,091,219 $1,130,513 $1,171,379 $1,213,888 Environmental Control
Other Services
Environmental ControlTelephone Telephone $9,400 $6,599 $6,863 $7,137 $7,423 $7,720 $7,990 $8,269 $8,559 $8,858 As Utilities Environmental ControlMaintenance & Repair Services Maintenance & Repair Services 13,818 9,118 9,437 9,767 10,060 10,362 10,673 10,993 11,323 11,663 As Materials & Supplies Environmental ControlUniform/Laundry Services Uniform/Laundry Services 3,384 3,948 4,086 4,229 4,356 4,487 4,621 4,760 4,903 5,050 As Materials & Supplies Environmental ControlDuplication/Copy Costs Duplication/Copy Costs 2,820 2,350 2,432 2,517 2,593 2,671 2,751 2,833 2,918 3,006 As Materials & Supplies Environmental ControlInsurance Premiums Insurance Premiums 49,387 58,687 63,969 69,726 76,001 82,841 90,297 98,424 107,282 116,938 As Insurance Environmental ControlAutomotive Equipment Rental Automotive Equipment Rental 0 20,821 21,654 22,521 23,421 24,358 25,089 25,842 26,617 27,415 As Equipment Environmental ControlComputer/Tech/Operation Support Computer/Tech/Operation Support 72,478 73,028 75,949 78,987 82,147 85,432 87,995 90,635 93,354 96,155 As Equipment Environmental ControlRadio Equipment Rental Radio Equipment Rental 3,662 2,223 2,312 2,404 2,501 2,601 2,679 2,759 2,842 2,927 As Equipment Environmental ControlPublicity & Advertising Publicity & Advertising 1,410 1,410 1,459 1,510 1,556 1,602 1,650 1,700 1,751 1,804 As Materials & Supplies Environmental ControlPrinting & Mapping Printing & Mapping 0 0 0 0 0 0 0 0 0 0 As Materials & Supplies Environmental ControlPostage/Mailing Services Postage/Mailing Services 2,350 2,350 2,432 2,517 2,593 2,671 2,751 2,833 2,918 3,006 As Materials & Supplies Environmental ControlProcessing Fees Processing Fees 1,692 1,692 1,751 1,813 1,867 1,923 1,981 2,040 2,101 2,164 As Materials & Supplies Environmental ControlTesting & Analysis Services Testing & Analysis Services 705 705 726 748 770 793 817 842 867 893 As Labor Environmental ControlTraining Services Training Services 15,510 15,510 15,975 16,455 16,948 17,457 17,980 18,520 19,075 19,648 As Labor Environmental ControlProfessional & Special Services Professional & Special Services 200,947 177,397 182,719 188,200 193,846 199,662 205,652 211,821 218,176 224,721 As Labor Environmental ControlOther Services Other Services 0 0 0 0 0 0 0 0 0 0 As Labor Environmental ControlLaboratory Services Laboratory Services 94,000 94,000 96,820 99,725 102,716 105,798 108,972 112,241 115,608 119,076 As Labor Environmental ControlSecurity & Alarm Services Security & Alarm Services 1,880 1,410 1,459 1,510 1,556 1,602 1,650 1,700 1,751 1,804 As Professional Services Environmental Control ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Environmental ControlTotal Other Services Total Other Services $473,443 $471,248 DRAFT
$490,045 $509,767 $530,354 $551,980 $573,549 $596,213 $620,046 $645,127 08/12/2024 12 EXHIBIT 1
2170
City of Stockton
Wastewater Rate Study Page 10 of 18
Revenue Requirement
Exhibit 3
Budget Budget
FY 2023-24 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 Projected
Notes
Materials & Supplies
Environmental ControlMaterials & Supplies Materials & Supplies $28,200 $18,800 $19,458 $20,139 $20,743 $21,365 $22,006 $22,667 $23,347 $24,047 As Materials & Supplies Environmental ControlComputer Software Computer Software 94,000 36,660 37,943 39,271 40,449 41,663 42,913 44,200 45,526 46,892 As Materials & Supplies Environmental ControlFuels - Gas/Oil/Propane Fuels - Gas/Oil/Propane 9,731 10,707 11,082 11,470 11,814 12,168 12,533 12,909 13,297 13,696 As Materials & Supplies Environmental ControlLibrary Materials Library Materials 1,880 1,880 1,946 2,014 2,074 2,137 2,201 2,267 2,335 2,405 As Materials & Supplies Environmental ControlNon-Capital Assets Non-Capital Assets 4,700 8,460 8,756 9,063 9,334 9,614 9,903 10,200 10,506 10,821 As Materials & Supplies Environmental Control ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Environmental ControlTotal Materials & Supplies Total Materials & Supplies $138,511 $76,507 $79,185 $81,956 $84,415 $86,948 $89,556 $92,243 $95,010 $97,860 Environmental Control
Other Expenses
Environmental ControlTraining Training $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Labor Environmental ControlMeetings & Travel Meetings & Travel 564 564 584 604 622 641 660 680 700 721 As Materials & Supplies Environmental ControlMemberships Memberships 1,692 2,021 2,092 2,165 2,230 2,297 2,366 2,437 2,510 2,585 As Materials & Supplies Environmental ControlRetirement Expense Retirement Expense 31,156 31,156 33,337 35,337 37,457 39,705 42,087 44,612 47,289 50,126 As Benefits - Retirement Environmental ControlVehicle Acquisition Vehicle Acquisition 38,000 82,156 85,442 88,860 92,414 96,111 98,994 101,964 105,023 108,174 As Equipment Environmental ControlSettlement Payments Settlement Payments 18,154 17,233 17,750 18,282 18,831 19,396 19,978 20,577 21,194 21,830 As Miscellaneous Environmental Control ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Environmental ControlTotal Other Expenses Total Other Expenses $89,566 $133,130 $139,205 $145,249 $151,555 $158,149 $164,085 $170,270 $176,717 $183,437 Environmental Control
Total Environmental Control $1,531,841 $1,595,443 $1,656,900 $1,719,086 $1,783,407 $1,850,508 $1,918,409 $1,989,239 $2,063,151 $2,140,312 Treatment Plant Maintenance
Employee Services
Treatment Plant MaintenanceSalaries - Regular Salaries - Regular $1,631,681 $1,640,625 $1,689,844 $1,740,539 $1,792,755 $1,846,538 $1,901,934 $1,958,992 $2,017,762 $2,078,295 As Labor Treatment Plant MaintenanceRegular Overtime Regular Overtime 50,000 60,000 61,800 63,654 65,564 67,531 69,556 71,643 73,792 76,006 As Labor Treatment Plant MaintenanceStand By Time (Call Back) Stand By Time (Call Back) 21,000 30,100 31,003 31,933 32,891 33,878 34,894 35,941 37,019 38,130 As Labor Treatment Plant MaintenanceHoliday Pay Holiday Pay 1,200 2,000 2,060 2,122 2,185 2,251 2,319 2,388 2,460 2,534 As Labor Treatment Plant MaintenanceEmployee Separation Pay Employee Separation Pay 19,609 20,276 20,884 21,511 22,156 22,821 23,505 24,211 24,937 25,685 As Labor Treatment Plant MaintenanceAdditional Pay Additional Pay 11,364 7,739 7,971 8,210 8,457 8,710 8,972 9,241 9,518 9,804 As Labor Treatment Plant MaintenanceRetirement Retirement 420,029 476,406 509,754 540,340 572,760 607,126 643,553 682,166 723,096 766,482 As Benefits - Retirement Treatment Plant MaintenanceDeferred Compensation Deferred Compensation 87,204 88,387 94,574 100,249 106,263 112,639 119,398 126,561 134,155 142,204 As Benefits - Retirement Treatment Plant MaintenanceMedicare Medicare 24,449 25,193 25,949 26,727 27,529 28,355 29,206 30,082 30,984 31,914 As Benefits - Medical Treatment Plant MaintenanceHealth/Dental/Vision Health/Dental/Vision 267,605 330,812 340,736 350,958 361,487 372,332 383,502 395,007 406,857 419,063 As Benefits - Medical Treatment Plant MaintenanceL-T Disability Insurance L-T Disability Insurance 6,852 10,431 10,744 11,066 11,398 11,740 12,092 12,455 12,829 13,214 As Benefits - Other Treatment Plant MaintenanceLife Insurance Life Insurance 1,417 1,418 1,461 1,504 1,549 1,596 1,644 1,693 1,744 1,796 As Benefits - Other Treatment Plant MaintenanceWorkers' Compensation Workers' Compensation 168,446 121,256 124,894 128,640 132,500 136,475 140,569 144,786 149,130 153,603 As Benefits - Other Treatment Plant MaintenanceUnemployment Insurance Unemployment Insurance 2,445 1,769 1,822 1,877 1,933 1,991 2,051 2,112 2,176 2,241 As Benefits - Other Treatment Plant MaintenanceCell Phone Allowance Cell Phone Allowance 6,390 3,300 3,399 3,501 3,606 3,714 3,826 3,940 4,059 4,180 As Miscellaneous Treatment Plant MaintenanceVacation Sell Back Vacation Sell Back 0 4,918 5,066 5,218 5,374 5,535 5,701 5,872 6,049 6,230 As Labor Treatment Plant Maintenance ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Treatment Plant MaintenanceTotal Employee Services Total Employee Services $2,719,691 $2,824,630 $2,931,961 $3,038,049 $3,148,408 $3,263,231 $3,382,721 $3,507,091 $3,636,566 $3,771,381 Treatment Plant Maintenance
Other Services
Treatment Plant MaintenanceTelephone Telephone $11,000 $11,000 $11,385 $11,783 $12,137 $12,501 $12,876 $13,262 $13,660 $14,070 As Materials & Supplies Treatment Plant MaintenanceMaint & Repair Services Maint & Repair Services 948,000 700,000 724,500 749,858 772,353 795,524 819,390 843,971 869,290 895,369 As Materials & Supplies Treatment Plant MaintenanceUniform/Laundry Services Uniform/Laundry Services 18,000 21,000 21,735 22,496 23,171 23,866 24,582 25,319 26,079 26,861 As Materials & Supplies Treatment Plant MaintenanceDuplicating/Copy Costs Duplicating/Copy Costs 1,000 1,000 1,035 1,071 1,103 1,136 1,171 1,206 1,242 1,279 As Materials & Supplies Treatment Plant MaintenanceInsurance Premiums Insurance Premiums 153,929 178,117 194,148 211,621 230,667 251,427 274,055 298,720 325,605 354,909 As Insurance Treatment Plant MaintenanceAutomotive Equip Rental Automotive Equip Rental 193,623 165,254 171,864 178,738 185,888 193,324 199,123 205,097 211,250 217,587 As Equipment Treatment Plant MaintenanceComputer/Tech/Oper Supprt Computer/Tech/Oper Supprt 149,125 152,370 158,465 164,803 171,396 178,251 183,599 189,107 194,780 200,623 As Equipment Treatment Plant MaintenanceRadio Equipment Rental Radio Equipment Rental 34,551 40,688 42,316 44,008 45,768 47,599 49,027 50,498 52,013 53,573 As Equipment Treatment Plant MaintenanceOther Rentals Other Rentals 5,000 5,000 5,200 5,408 5,624 5,849 6,025 6,206 6,392 6,583 As Equipment Treatment Plant MaintenanceTelephone Rental Telephone Rental 0 0 0 0 0 0 0 0 0 0 As Materials & Supplies Treatment Plant MaintenancePublicity & Advertising Publicity & Advertising 1,000 1,000 1,035 1,071 1,103 1,136 1,171 1,206 1,242 1,279 As Materials & Supplies Treatment Plant MaintenancePostage/Mailing Services Postage/Mailing Services 1,200 2,500 2,588 2,678 2,758 2,841 2,926 3,014 3,105 3,198 As Materials & Supplies Treatment Plant MaintenanceLegal Services Legal Services 0 0 0 0 0 0 0 0 0 0 As Labor Treatment Plant MaintenanceEngineering Services Engineering Services 20,000 0 0 0 0 0 0 0 0 0 As Labor Treatment Plant MaintenanceTesting & Analysis Services Testing & Analysis Services 1,000 1,000 1,030 1,061 1,093 1,126 1,159 1,194 1,230 1,267 As Labor Treatment Plant MaintenanceProf & Special Services Prof & Special Services 131,600 37,000 38,110 39,253 40,431 41,644 42,893 44,180 45,505 46,870 As Labor Treatment Plant MaintenanceOther Services Other Services 0 0 0 0 0 0 0 0 0 0 As Labor Treatment Plant MaintenanceBuilding Repairs/Maint Building Repairs/Maint 13,000 15,000 15,525 16,068 16,550 17,047 17,558 18,085 18,628 19,186 As Materials & Supplies Treatment Plant MaintenanceProcessing Fees Processing Fees 500 500 518 536 552 568 585 603 621 640 As Materials & Supplies Treatment Plant MaintenanceVacation Sell Back (2) Vacation Sell Back (2) 0 3,346 3,446 3,550 3,656 3,766 3,879 3,995 4,115 4,239 As Labor Treatment Plant MaintenanceBuildings and Structures Buildings and Structures 0 250,000 258,750 267,806 275,840 284,116 292,639 301,418 310,461 319,775 As Materials & Supplies Treatment Plant Maintenance ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Treatment Plant MaintenanceTotal Other Services Total Other Services $1,682,528 $1,584,775 $1,651,648 $1,721,810 $1,790,091 $1,861,721 $1,932,658 $2,007,081 $2,085,217 $2,167,310 DRAFT 08/12/2024 13 EXHIBIT 1
2171
City of Stockton
Wastewater Rate Study Page 11 of 18
Revenue Requirement
Exhibit 3
Budget Budget
FY 2023-24 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 Projected
Notes
Materials & Supplies
Treatment Plant MaintenanceMaterials & Supplies Materials & Supplies $600,000 $900,000 $931,500 $964,103 $993,026 $1,022,816 $1,053,501 $1,085,106 $1,117,659 $1,151,189 As Materials & Supplies Treatment Plant MaintenanceFuels-Gas/Oil/Propane Fuels-Gas/Oil/Propane 168,664 106,078 109,791 113,634 117,043 120,554 124,170 127,896 131,732 135,684 As Materials & Supplies Treatment Plant MaintenanceNon-Capital Assets (2) Non-Capital Assets (2) 700,000 525,000 543,375 562,393 579,265 596,643 614,542 632,978 651,968 671,527 As Materials & Supplies Treatment Plant Maintenance ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Treatment Plant MaintenanceTotal Materials & Supplies Total Materials & Supplies $1,468,664 $1,531,078 $1,584,666 $1,640,129 $1,689,333 $1,740,013 $1,792,213 $1,845,980 $1,901,359 $1,958,400 Other Expenses
Treatment Plant MaintenanceTraining Training $10,000 $5,000 $5,150 $5,305 $5,464 $5,628 $5,796 $5,970 $6,149 $6,334 As Labor Treatment Plant MaintenanceMeetings & Travel Meetings & Travel 1,000 500 518 536 552 568 585 603 621 640 As Materials & Supplies Treatment Plant MaintenanceRetirement Expense Retirement Expense 244,795 244,795 261,931 277,646 294,305 311,964 330,681 350,522 371,554 393,847 As Benefits - Retirement Treatment Plant MaintenanceVehicle Acquisition Vehicle Acquisition 160,000 265,000 275,600 286,624 298,089 310,013 319,313 328,892 338,759 348,922 As Equipment Treatment Plant MaintenanceEquipment Acquisition Equipment Acquisition 625,000 110,102 114,507 119,087 123,850 128,804 132,668 136,648 140,748 144,970 As Equipment Treatment Plant MaintenanceCapital Maintenance Capital Maintenance 550,000 300,000 312,000 324,480 337,459 350,958 361,486 372,331 383,501 395,006 As Equipment Treatment Plant MaintenanceSettlement Payments Settlement Payments 60,709 58,819 60,584 62,401 64,273 66,201 68,187 70,233 72,340 74,510 As Miscellaneous Treatment Plant Maintenance ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Treatment Plant MaintenanceTotal Other Expenses Total Other Expenses $1,651,504 $984,216 $1,030,288 $1,076,079 $1,123,992 $1,174,135 $1,218,718 $1,265,200 $1,313,672 $1,364,228 Other Support Services
Total Treatment Plant Maintenance $7,522,387 $6,924,699 $7,198,563 $7,476,067 $7,751,825 $8,039,100 $8,326,311 $8,625,352 $8,936,814 $9,261,319 Sanitary Pump Stations
Employee Services
Sanitary Pump StationsSalaries - Regular Salaries - Regular $1,141,367 $1,481,488 $1,525,933 $1,571,711 $1,618,862 $1,667,428 $1,717,451 $1,768,974 $1,822,043 $1,876,705 As Labor Sanitary Pump StationsRegular Overtime Regular Overtime 50,000 60,000 61,800 63,654 65,564 67,531 69,556 71,643 73,792 76,006 As Labor Sanitary Pump StationsStand By Time (Call Back) Stand By Time (Call Back) 17,000 22,600 23,278 23,976 24,696 25,436 26,200 26,986 27,795 28,629 As Labor Sanitary Pump StationsHoliday Pay Holiday Pay 500 1,000 1,030 1,061 1,093 1,126 1,159 1,194 1,230 1,267 As Labor Sanitary Pump StationsEmployee Separation Pay Employee Separation Pay 13,127 18,310 18,859 19,425 20,008 20,608 21,226 21,863 22,519 23,195 As Labor Sanitary Pump StationsAdditional Pay Additional Pay 14,097 8,674 8,934 9,202 9,478 9,763 10,056 10,357 10,668 10,988 As Labor Sanitary Pump StationsRetirement Retirement 294,940 424,024 453,706 480,928 509,784 540,371 572,793 607,161 643,590 682,206 As Benefits - Retirement Sanitary Pump StationsDeferred Compensation Deferred Compensation 60,236 79,193 84,737 89,821 95,210 100,923 106,978 113,397 120,200 127,412 As Benefits - Retirement Sanitary Pump StationsMedicare Medicare 17,604 22,690 23,371 24,072 24,794 25,538 26,304 27,093 27,906 28,743 As Benefits - Medical Sanitary Pump StationsHealth/Dental/Vision Health/Dental/Vision 197,242 271,111 279,244 287,622 296,250 305,138 314,292 323,721 333,432 343,435 As Benefits - Medical Sanitary Pump StationsL-T Disability Insurance L-T Disability Insurance 4,793 9,375 9,656 9,946 10,244 10,552 10,868 11,194 11,530 11,876 As Benefits - Other Sanitary Pump StationsLife Insurance Life Insurance 1,044 1,155 1,190 1,225 1,262 1,300 1,339 1,379 1,421 1,463 As Benefits - Other Sanitary Pump StationsWorkers' Compensation Workers' Compensation 117,570 108,927 112,195 115,561 119,027 122,598 126,276 130,065 133,966 137,985 As Benefits - Other Sanitary Pump StationsUnemployment Insurance Unemployment Insurance 1,750 1,592 1,640 1,689 1,740 1,792 1,846 1,901 1,958 2,017 As Benefits - Other Sanitary Pump StationsCell Phone Allowance Cell Phone Allowance 6,234 2,448 2,521 2,597 2,675 2,755 2,838 2,923 3,011 3,101 As Benefits - Other Sanitary Pump StationsVacation Sell Back Vacation Sell Back 0 3,021 3,112 3,205 3,301 3,400 3,502 3,607 3,715 3,827 As Labor Sanitary Pump Stations ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Sanitary Pump StationsTotal Employee Services Total Employee Services $1,937,504 $2,515,608 $2,611,205 $2,705,694 $2,803,988 $2,906,257 $3,012,684 $3,123,457 $3,238,778 $3,358,855 DRAFT 08/12/2024 14 EXHIBIT 1
2172
City of Stockton
Wastewater Rate Study Page 12 of 18
Revenue Requirement
Exhibit 3
Budget Budget
FY 2023-24 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 Projected
Notes
Other Services
Sanitary Pump StationsElectricity Electricity $1,620,000 $1,692,000 $1,776,600 $1,865,430 $1,958,702 $2,056,637 $2,159,468 $2,267,442 $2,380,814 $2,499,855 As Electricity Sanitary Pump StationsGas Ga 20,000 16,920 17,597 18,301 19,033 19,794 20,487 21,204 21,946 22,714 As Utilities Sanitary Pump StationsWater Water 75,000 50,000 52,000 54,080 56,243 58,493 60,540 62,659 64,852 67,122 As Utilities Sanitary Pump StationsTelephone Telephone 12,500 12,500 13,000 13,520 14,061 14,623 15,135 15,665 16,213 16,780 As Utilities Sanitary Pump StationsStorm Water Storm Water 3,000 3,000 3,120 3,245 3,375 3,510 3,632 3,760 3,891 4,027 As Utilities Sanitary Pump StationsMaint. & Repair Services Maint. & Repair Services 275,000 400,000 414,000 428,490 441,345 454,585 468,223 482,269 496,737 511,639 As Materials & Supplies Sanitary Pump StationsDuplication/Copy Costs Duplication/Copy Costs 200 200 207 214 221 227 234 241 248 256 As Materials & Supplies Sanitary Pump StationsInsurance Premiums Insurance Premiums 109,460 160,244 174,666 190,386 207,521 226,197 246,555 268,745 292,932 319,296 As Insurance Sanitary Pump StationsAutomotive Equip Rental Automotive Equip Rental 73,450 89,576 93,159 96,886 100,761 104,791 107,935 111,173 114,508 117,944 As Equipment Sanitary Pump StationsComputer/Tech/Oper Supprt Computer/Tech/Oper Supprt 0 0 0 0 0 0 0 0 0 0 As Equipment Sanitary Pump StationsRadio Equipment Rental Radio Equipment Rental 0 0 0 0 0 0 0 0 0 0 As Equipment Sanitary Pump StationsOther Services Other Services 0 0 0 0 0 0 0 0 0 0 As Labor Sanitary Pump StationsPool Vehicle Rental Pool Vehicle Rental 0 0 0 0 0 0 0 0 0 0 As Equipment Sanitary Pump StationsPrinting & Mapping Printing & Mapping 0 0 0 0 0 0 0 0 0 0 As Materials & Supplies Sanitary Pump StationsPostage/Mailing Services Postage/Mailing Services 1,000 2,500 2,588 2,678 2,758 2,841 2,926 3,014 3,105 3,198 As Materials & Supplies Sanitary Pump StationsProcessing Fees Processing Fees 1,000 8,000 8,280 8,570 8,827 9,092 9,364 9,645 9,935 10,233 As Materials & Supplies Sanitary Pump StationsTesting & Analysis Servcs Testing & Analysis Servcs 500 500 515 530 546 563 580 597 615 633 As Labor Sanitary Pump StationsEngineering Services Engineering Services 20,000 0 0 0 0 0 0 0 0 0 As Labor Sanitary Pump StationsProf & Special Services Prof & Special Services 21,500 24,000 24,720 25,462 26,225 27,012 27,823 28,657 29,517 30,402 As Labor Sanitary Pump StationsPublicity & Advertising Publicity & Advertising 1,000 500 518 536 552 568 585 603 621 640 As Materials & Supplies Sanitary Pump StationsUniform/Laundry Services Uniform/Laundry Services 7,000 15,500 16,043 16,604 17,102 17,615 18,144 18,688 19,249 19,826 As Materials & Supplies Sanitary Pump StationsTelephone Rental Telephone Rental 58,915 58,538 60,587 62,707 64,589 66,526 68,522 70,578 72,695 74,876 As Materials & Supplies Sanitary Pump StationsBuilding Repairs/Maint Building Repairs/Maint 17,000 15,000 15,525 16,068 16,550 17,047 17,558 18,085 18,628 19,186 As Materials & Supplies Sanitary Pump StationsRent Rent 1,500 1,500 1,545 1,591 1,639 1,688 1,739 1,791 1,845 1,900 As Miscellaneous Sanitary Pump Stations ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Sanitary Pump StationsTotal Other Services Total Other Services $2,318,025 $2,550,478 $2,674,668 $2,805,298 $2,940,049 $3,081,810 $3,229,451 $3,384,816 $3,548,351 $3,720,528 Materials & Supplies
Sanitary Pump StationsMaterials & Supplies Materials & Supplies $341,617 $301,164 $311,705 $322,614 $332,293 $342,262 $352,529 $363,105 $373,998 $385,218 As Materials & Supplies Sanitary Pump StationsFuels-Gas/Oil/Propane Fuels-Gas/Oil/Propane 0 0 0 0 0 0 0 0 0 0 As Utilities Sanitary Pump StationsNon-Capital Assets Non-Capital Assets 416,000 500,000 517,500 535,613 551,681 568,231 585,278 602,837 620,922 639,549 As Materials & Supplies Sanitary Pump Stations ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Sanitary Pump StationsTotal Materials & Supplies Total Materials & Supplies $757,617 $801,164 $829,205 $858,227 $883,974 $910,493 $937,808 $965,942 $994,920 $1,024,768 Sanitary Pump Stations
Other Expenses
Sanitary Pump StationsTraining Training $10,000 $2,500 $2,575 $2,652 $2,732 $2,814 $2,898 $2,985 $3,075 $3,167 As Labor Sanitary Pump StationsTaxes Taxes 8,500 8,500 8,798 9,105 9,379 9,660 9,950 10,248 10,556 10,872 As Materials & Supplies Sanitary Pump StationsVehicle Acquisition Vehicle Acquisition 0 75,000 78,000 81,120 84,365 87,739 90,372 93,083 95,875 98,751 As Equipment Sanitary Pump StationsEquipment Acquisition Equipment Acquisition 830,000 0 0 0 0 0 0 0 0 0 As Equipment Sanitary Pump StationsSettlement Payments Settlement Payments 40,769 52,381 53,952 55,571 57,238 58,955 60,724 62,546 64,422 66,355 As Miscellaneous Sanitary Pump StationsCapital Maintenance Capital Maintenance 0 75,000 78,000 81,120 84,365 87,739 90,372 93,083 95,875 98,751 As Equipment Sanitary Pump Stations ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Sanitary Pump StationsTotal Other Expenses Total Other Expenses $889,269 $213,381 $221,325 $229,569 $238,078 $246,908 $254,315 $261,944 $269,803 $277,897 Sanitary Pump Stations
Total Sanitary Pump Stations $5,902,415 $6,080,631
DRAFT
$6,336,403 $6,598,788 $6,866,088 $7,145,468 $7,434,257 $7,736,160 $8,051,851 $8,382,047 08/12/2024 15 EXHIBIT 1
2173
City of Stockton
Wastewater Rate Study Page 13 of 18
Revenue Requirement
Exhibit 3
Budget Budget
FY 2023-24 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 Projected
Notes
Regulatory Compliance
Employee Services
Regulatory ComplianceSummary Account Summary Account $85,509 $112,903 $116,290 $119,779 $123,372 $127,073 $130,886 $134,812 $138,856 $143,022 As Miscellaneous Regulatory ComplianceRetirement Retirement 21,955 32,120 34,368 36,431 38,616 40,933 43,389 45,993 48,752 51,677 As Benefits - Retirement Regulatory ComplianceDeferred Compensation Deferred Compensation 4,703 0 0 0 0 0 0 0 0 0 As Benefits - Retirement Regulatory ComplianceMedicare/Social Security Medicare/Social Security 1,246 1,637 1,686 1,737 1,789 1,842 1,898 1,955 2,013 2,074 As Benefits - Medical Regulatory ComplianceHealth/Dental/Vision Health/Dental/Vision 7,471 13,440 13,843 14,258 14,686 15,127 15,581 16,048 16,530 17,025 As Benefits - Medical Regulatory ComplianceL/T Disability Insurance L/T Disability Insurance 359 712 733 755 778 801 825 850 876 902 As Benefits - Other Regulatory ComplianceLife Insurance Life Insurance 40 57 59 60 62 64 66 68 70 72 As Benefits - Other Regulatory ComplianceWorker's Compensation Worker's Compensation 3,030 2,506 2,581 2,659 2,738 2,821 2,905 2,992 3,082 3,175 As Benefits - Other Regulatory ComplianceUnemployment Insurance Unemployment Insurance 120 113 116 120 123 127 131 135 139 143 As Benefits - Other Regulatory ComplianceAllowances Allowances 330 0 0 0 0 0 0 0 0 0 As Miscellaneous Regulatory ComplianceInsurance Premiums Insurance Premiums 7,726 11,629 12,676 13,816 15,060 16,415 17,893 19,503 21,258 23,172 As Insurance Regulatory Compliance ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Regulatory ComplianceTotal Employee Services Total Employee Services $132,489 $175,117 $182,353 $189,615 $197,226 $205,204 $213,573 $222,356 $231,577 $241,262 Other Services
Regulatory ComplianceProcessing Fees Processing Fees $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Materials & Supplies Regulatory ComplianceProf & Special Services Prof & Special Services 16,000 58,000 59,740 61,532 63,378 65,280 67,238 69,255 71,333 73,473 As Labor Regulatory ComplianceMaterials and Supplies Materials and Supplies 3,300 3,300 3,416 3,535 3,641 3,750 3,863 3,979 4,098 4,221 As Materials & Supplies Regulatory ComplianceTraining Training 550 550 567 583 601 619 638 657 676 697 As Labor Regulatory ComplianceSummary Account (2) Summary Account (2) 0 3,500 3,605 3,713 3,825 3,939 4,057 4,179 4,305 4,434 As Miscellaneous Regulatory ComplianceDeferred Compensation (2) Deferred Compensation (2) 0 9 10 10 11 11 12 13 14 14 As Benefits - Retirement Regulatory ComplianceDeferred Compensation (3) Deferred Compensation (3) 0 48 51 54 58 61 65 69 73 77 As Benefits - Retirement Regulatory Compliance ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Regulatory ComplianceTotal Other Services Total Other Services $19,850 $65,407 $67,388 $69,429 $71,513 $73,661 $75,873 $78,151 $80,498 $82,916 Total Regulatory Compliance $152,339 $240,524 $249,741 $259,044 $268,739 $278,865 $289,446 $300,507 $312,075 $324,178 Safety Services
Employee Services
Safety ServicesSalaries - Regular Salaries - Regular $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Labor Safety ServicesRegular Overtime Regular Overtime 1,500 0 0 0 0 0 0 0 0 0 As Labor Safety ServicesRetirement Retirement 31,293 33,657 36,013 38,174 40,464 42,892 45,466 48,194 51,085 54,150 As Benefits - Retirement Safety ServicesDeferred Compensation Deferred Compensation 2,294 2,392 2,559 2,713 2,876 3,048 3,231 3,425 3,631 3,848 As Benefits - Retirement Safety ServicesMedicare Medicare 1,751 1,722 1,774 1,827 1,882 1,938 1,996 2,056 2,118 2,181 As Benefits - Medical Safety ServicesHealth/Dental/Vision Health/Dental/Vision 17,659 21,001 21,631 22,280 22,948 23,637 24,346 25,076 25,829 26,603 As Benefits - Medical Safety ServicesL/T Disability Insurance L/T Disability Insurance 510 742 764 787 811 835 860 886 913 940 As Benefits - Other Safety ServicesLife Insurance Life Insurance 91 87 90 92 95 98 101 104 107 110 As Benefits - Other Safety ServicesWorkers Compensation Workers Compensation 3,285 3,664 3,774 3,887 4,004 4,124 4,248 4,375 4,506 4,641 As Benefits - Other Safety ServicesUnemployment Insurance Unemployment Insurance 174 118 122 125 129 133 137 141 145 149 As Benefits - Other Safety ServicesCell Phone Allowance Cell Phone Allowance 645 600 618 637 656 675 696 716 738 760 As Miscellaneous Safety ServicesSummary Account Summary Account 121,341 117,704 121,235 124,872 128,618 132,477 136,451 140,545 144,761 149,104 As Miscellaneous Safety ServicesEmployee Separation Pay Employee Separation Pay 1,458 1,455 1,499 1,544 1,590 1,638 1,687 1,737 1,789 1,843 As Labor Safety ServicesAdditional Pay Additional Pay 600 600 618 637 656 675 696 716 738 760 As Labor Safety ServicesVacation Sell Back Vacation Sell Back 0 240 247 255 262 270 278 287 295 304 As Labor Safety Services ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Safety ServicesTotal Employee Services Total Employee Services $182,601 $183,982 DRAFT
$190,943 $197,829 $204,990 $212,440 $220,192 $228,258 $236,655 $245,396 08/12/2024 16 EXHIBIT 1
2174
City of Stockton
Wastewater Rate Study Page 14 of 18
Revenue Requirement
Exhibit 3
Budget Budget
FY 2023-24 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 Projected
Notes
Other Services
Safety ServicesMaint. & Repair Services Maint. & Repair Services $1,000 $1,500 $1,553 $1,607 $1,655 $1,705 $1,756 $1,809 $1,863 $1,919 As Materials & Supplies Safety ServicesUniform/Laundry Services Uniform/Laundry Services 1,750 200 207 214 221 227 234 241 248 256 As Materials & Supplies Safety ServicesDuplication/Copy Costs Duplication/Copy Costs 1,750 1,750 1,811 1,875 1,931 1,989 2,048 2,110 2,173 2,238 As Materials & Supplies Safety ServicesInsurance Premiums Insurance Premiums 11,146 12,258 13,361 14,564 15,874 17,303 18,860 20,558 22,408 24,425 As Insurance Safety ServicesComputer/Tech/Oper Supprt Computer/Tech/Oper Supprt 21,886 44,004 45,764 47,595 49,499 51,478 53,023 54,613 56,252 57,939 As Equipment Safety ServicesRadio Equipment Rental Radio Equipment Rental 1,599 1,309 1,361 1,416 1,472 1,531 1,577 1,625 1,673 1,724 As Equipment Safety ServicesTelephone Rental Telephone Rental 0 0 0 0 0 0 0 0 0 0 As Equipment Safety ServicesPostage/Mailing Services Postage/Mailing Services 175 175 181 187 193 199 205 211 217 224 As Materials & Supplies Safety ServicesTraining Services Training Services 0 0 0 0 0 0 0 0 0 0 As Labor Safety ServicesProf & Special Services Prof & Special Services 0 0 0 0 0 0 0 0 0 0 As Labor Safety ServicesOther Services Other Services 0 0 0 0 0 0 0 0 0 0 As Labor Safety ServicesSummary Account (2) Summary Account (2) 82,869 50,000 51,500 53,045 54,636 56,275 57,964 59,703 61,494 63,339 As Miscellaneous Safety ServicesTelephone Telephone 850 250 260 270 281 292 303 313 324 336 As Utilities Safety ServicesPublicity & Advertising Publicity & Advertising 600 500 518 536 552 568 585 603 621 640 As Materials & Supplies Safety ServicesSecurity & Alarm Services Security & Alarm Services 180,424 180,000 186,300 192,821 198,605 204,563 210,700 217,021 223,532 230,238 As Professional Services Safety Services ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Safety ServicesTotal Other Services Total Other Services $304,049 $291,946 $302,816 $314,129 $324,919 $336,132 $347,256 $358,806 $370,806 $383,276 Safety Services
Materials & Supplies
Safety ServicesMaterials and Supplies Materials and Supplies $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Materials & Supplies Safety ServicesComputer Software Computer Software 7,500 6,000 6,210 6,427 6,620 6,819 7,023 7,234 7,451 7,675 As Materials & Supplies Safety ServicesSubscription-Periodical Subscription-Periodical 1,500 0 0 0 0 0 0 0 0 0 As Materials & Supplies Safety ServicesLibrary Materials Library Materials 0 0 0 0 0 0 0 0 0 0 As Materials & Supplies Safety ServicesSummary Account (3) Summary Account (3) 40,000 30,000 30,900 31,827 32,782 33,765 34,778 35,822 36,896 38,003 As Miscellaneous Safety ServicesNon-Capital Assets Non-Capital Assets 1,875 2,000 2,070 2,142 2,207 2,273 2,341 2,411 2,484 2,558 As Materials & Supplies Safety Services ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Safety ServicesTotal Materials & Supplies Total Materials & Supplies $50,875 $38,000 $39,180 $40,397 $41,609 $42,857 $44,143 $45,467 $46,831 $48,236 Safety Services
Other Expenses
Safety ServicesTraining Training $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Labor Safety ServicesMemberships Memberships 650 150 155 161 166 170 176 181 186 192 As Materials & Supplies Safety ServicesSummary Account (4) Summary Account (4) 2,500 2,500 2,575 2,652 2,732 2,814 2,898 2,985 3,075 3,167 As Miscellaneous Safety ServicesSettlement Payments Settlement Payments 4,522 4,160 4,285 4,413 4,546 4,682 4,823 4,967 5,116 5,270 As Miscellaneous Safety Services ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Safety ServicesTotal Other Expenses Total Other Expenses $7,672 $6,810 $7,015 $7,226 $7,443 $7,666 $7,896 $8,133 $8,377 $8,629 Safety Services
Total Safety Services $545,197 $520,738 $539,955 $559,581 $578,962 $599,096 $619,486 $640,665 $662,669 $685,536 DRAFT 08/12/2024 17 EXHIBIT 1
2175
City of Stockton
Wastewater Rate Study Page 15 of 18
Revenue Requirement
Exhibit 3
Budget Budget
FY 2023-24 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 Projected
Notes
SCADA Services
Employee Services
SCADA ServicesSalaries - Regular Salaries - Regular $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Labor SCADA ServicesRegular Overtime Regular Overtime 1,100 1,100 1,133 1,167 1,202 1,238 1,275 1,313 1,353 1,393 As Labor SCADA ServicesRetirement Retirement 47,822 56,805 60,781 64,428 68,294 72,392 76,735 81,339 86,220 91,393 As Benefits - Retirement SCADA ServicesMedicare Medicare 2,699 2,904 2,991 3,081 3,173 3,268 3,367 3,468 3,572 3,679 As Benefits - Medical SCADA ServicesHealth/Dental/Vision Health/Dental/Vision 23,229 28,728 29,590 30,478 31,392 32,334 33,304 34,303 35,332 36,392 As Benefits - Medical SCADA ServicesL/T Disability Insurance L/T Disability Insurance 783 1,256 1,294 1,332 1,372 1,414 1,456 1,500 1,545 1,591 As Benefits - Other SCADA ServicesLife Insurance Life Insurance 110 110 113 117 120 124 128 131 135 139 As Benefits - Other SCADA ServicesWorkers Compensation Workers Compensation 5,582 6,055 6,237 6,424 6,616 6,815 7,019 7,230 7,447 7,670 As Benefits - Other SCADA ServicesUnemployment Insurance Unemployment Insurance 263 202 208 214 221 227 234 241 248 256 As Benefits - Other SCADA ServicesCell Phone Allowance Cell Phone Allowance 714 0 0 0 0 0 0 0 0 0 As Miscellaneous SCADA ServicesSummary Account Summary Account 186,514 199,509 205,494 211,659 218,009 224,549 231,286 238,224 245,371 252,732 As Miscellaneous SCADA ServicesEmployee Separation Pay Employee Separation Pay 2,241 3,862 3,978 4,097 4,220 4,347 4,477 4,611 4,750 4,892 As Labor SCADA ServicesVacation Sell Back Vacation Sell Back 0 407 419 432 445 458 472 486 501 516 As Labor SCADA Services ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- SCADA ServicesTotal Employee Services Total Employee Services $271,057 $300,938 $312,238 $323,429 $335,065 $347,165 $359,752 $372,847 $386,472 $400,653 SCADA Services
Other Services
SCADA ServicesTelephone Telephone $16,000 $18,700 $19,355 $20,032 $20,633 $21,252 $21,889 $22,546 $23,222 $23,919 As Materials & Supplies SCADA ServicesInsurance Premiums Insurance Premiums 16,933 20,664 22,524 24,551 26,760 29,169 31,794 34,656 37,775 41,174 As Insurance SCADA ServicesComputer/Tech/Oper Supprt Computer/Tech/Oper Supprt 40,850 42,113 43,798 45,549 47,371 49,266 50,744 52,267 53,835 55,450 As Equipment SCADA ServicesTelephone Rental Telephone Rental 0 0 0 0 0 0 0 0 0 0 As Equipment SCADA ServicesProf & Special Services Prof & Special Services 0 0 0 0 0 0 0 0 0 0 As Labor SCADA ServicesSummary Account (2) Summary Account (2) 46,750 49,500 50,985 52,515 54,090 55,713 57,384 59,106 60,879 62,705 As Miscellaneous SCADA Services ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- SCADA ServicesTotal Other Services Total Other Services $120,533 $130,977 $136,661 $142,647 $148,855 $155,400 $161,812 $168,574 $175,710 $183,248 SCADA Services
Materials & Supplies
SCADA ServicesMaterials & Supplies Materials & Supplies $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Materials & Supplies SCADA ServicesComputer Software Computer Software 78,700 110,000 113,850 117,835 121,370 125,011 128,761 132,624 136,603 140,701 As Materials & Supplies SCADA ServicesSummary Account (3) Summary Account (3) 1,925 2,750 2,833 2,917 3,005 3,095 3,188 3,284 3,382 3,484 As Miscellaneous SCADA ServicesNon-Capital Assets Non-Capital Assets 1,925 165,000 170,775 176,752 182,055 187,516 193,142 198,936 204,904 211,051 As Materials & Supplies SCADA Services ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- SCADA ServicesTotal Materials & Supplies Total Materials & Supplies $82,550 $277,750 $287,458 $297,504 $306,429 $315,622 $325,091 $334,844 $344,889 $355,236 Other Expenses
SCADA ServicesMeetings & Travel Meetings & Travel $2,200 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Materials & Supplies SCADA ServicesSummary Account (4) Summary Account (4) 4,400 2,750 2,833 2,917 3,005 3,095 3,188 3,284 3,382 3,484 As Miscellaneous SCADA ServicesSettlement Payments Settlement Payments 6,913 7,022 7,233 7,450 7,673 7,903 8,140 8,385 8,636 8,895 As Miscellaneous SCADA Services ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- SCADA ServicesTotal Other Expenses Total Other Expenses $13,513 $9,772 $10,065 $10,367 $10,678 $10,998 $11,328 $11,668 $12,018 $12,379 Total SCADA Services $487,653 $719,437 $746,422 $773,947 $801,027 $829,186 $857,983 $887,933 $919,090 $951,516 DRAFT 08/12/2024 18 EXHIBIT 1
2176
City of Stockton
Wastewater Rate Study Page 16 of 18
Revenue Requirement
Exhibit 3
Budget Budget
FY 2023-24 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 Projected
Notes
Outreach & Training Services
Employee Services
Outreach & Training ServicesRegular Overtime Regular Overtime $600 $350 $361 $371 $382 $394 $406 $418 $430 $443 As Labor Outreach & Training ServicesMedicare Medicare 587 639 658 678 698 719 741 763 786 809 As Benefits - Medical Outreach & Training ServicesWorkers Compensation Workers Compensation 1,103 1,357 1,398 1,440 1,483 1,527 1,573 1,620 1,669 1,719 As Benefits - Other Outreach & Training ServicesSummary Account Summary Account 40,955 43,873 45,189 46,545 47,941 49,379 50,861 52,387 53,958 55,577 As Miscellaneous Outreach & Training ServicesEmployee Separation Pay Employee Separation Pay 492 542 558 575 592 610 628 647 667 687 As Labor Outreach & Training ServicesAdditional Pay Additional Pay 34 0 0 0 0 0 0 0 0 0 As Labor Outreach & Training ServicesRetirement Retirement 10,501 12,482 13,356 14,157 15,007 15,907 16,861 17,873 18,945 20,082 As Benefits - Retirement Outreach & Training ServicesHealth/Dental/Vision Health/Dental/Vision 4,754 5,880 6,056 6,238 6,425 6,618 6,817 7,021 7,232 7,449 As Benefits - Medical Outreach & Training ServicesL/T Disability Insurance L/T Disability Insurance 172 276 284 293 302 311 320 330 339 350 As Benefits - Other Outreach & Training ServicesLife Insurance Life Insurance 25 25 26 27 27 28 29 30 31 32 As Benefits - Other Outreach & Training ServicesUnemployment Insurance Unemployment Insurance 58 44 45 47 48 50 51 53 54 56 As Benefits - Other Outreach & Training ServicesAllowances Allowances 210 210 216 223 229 236 243 251 258 266 As Miscellaneous Outreach & Training ServicesAdditional Pay (2) Additional Pay (2) 0 158 163 168 173 178 183 189 194 200 As Labor Outreach & Training ServicesVacation Sell Back Vacation Sell Back 0 90 93 95 98 101 104 107 111 114 As Labor Outreach & Training Services ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Outreach & Training ServicesTotal Employee Services Total Employee Services $59,491 $65,926 $68,403 $70,856 $73,406 $76,059 $78,818 $81,688 $84,675 $87,783 Other Services
Outreach & Training ServicesInsurance Premiums Insurance Premiums $3,750 $4,557 $4,967 $5,414 $5,901 $6,433 $7,012 $7,643 $8,330 $9,080 As Insurance Outreach & Training ServicesPrinting & Mapping Printing & Mapping 0 0 0 0 0 0 0 0 0 0 As Miscellaneous Outreach & Training ServicesDuplication/Copy Costs Duplication/Copy Costs 15,000 15,000 15,525 16,068 16,550 17,047 17,558 18,085 18,628 19,186 As Materials & Supplies Outreach & Training ServicesPublicity & Advertising Publicity & Advertising 35,000 35,000 36,225 37,493 38,618 39,776 40,969 42,199 43,465 44,768 As Materials & Supplies Outreach & Training ServicesPostage/Mailing Services Postage/Mailing Services 60,000 60,000 62,100 64,274 66,202 68,188 70,233 72,340 74,511 76,746 As Materials & Supplies Outreach & Training ServicesProcessing Fees Processing Fees 0 0 0 0 0 0 0 0 0 0 As Materials & Supplies Outreach & Training ServicesTraining Services Training Services 1,000 1,000 1,030 1,061 1,093 1,126 1,159 1,194 1,230 1,267 As Labor Outreach & Training ServicesProf & Special Services Prof & Special Services 0 0 0 0 0 0 0 0 0 0 As Labor Outreach & Training ServicesComputer/Tech/Oper Supprt Computer/Tech/Oper Supprt 3,527 2,424 2,521 2,622 2,727 2,836 2,921 3,008 3,099 3,192 As Equipment Outreach & Training Services ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Outreach & Training ServicesTotal Other Services Total Other Services $118,277 $117,981 $122,368 $126,932 $131,091 $135,405 $139,853 $144,469 $149,262 $154,239 Materials & Supplies
Outreach & Training ServicesComputer Software Computer Software $100 $0 $0 $0 $0 $0 $0 $0 $0 $0 As Materials & Supplies Outreach & Training ServicesSubscription-Periodical Subscription-Periodical 60 90 93 96 99 102 105 109 112 115 As Materials & Supplies Outreach & Training ServicesMaterials and Supplies Materials and Supplies 9,000 9,000 9,360 9,734 10,124 10,529 10,845 11,170 11,505 11,850 As Equipment Outreach & Training Services ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Outreach & Training ServicesTotal Materials & Supplies Total Materials & Supplies $9,160 $9,090 $9,453 $9,831 $10,223 $10,631 $10,950 $11,278 $11,617 $11,965 Other Expenses
Outreach & Training ServicesMeetings & Travel Meetings & Travel $200 $200 $207 $214 $221 $227 $234 $241 $248 $256 As Materials & Supplies Outreach & Training ServicesMemberships Memberships 125 125 129 134 138 142 146 151 155 160 As Materials & Supplies Outreach & Training ServicesTraining Training 0 0 0 0 0 0 0 0 0 0 As Labor Outreach & Training ServicesSettlement Payments Settlement Payments 1,518 1,543 1,589 1,637 1,686 1,737 1,789 1,842 1,898 1,955 As Miscellaneous Outreach & Training Services ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Outreach & Training ServicesTotal Other Expenses Total Other Expenses $1,843 $1,868 $1,926 $1,985 $2,045 $2,106 $2,169 $2,234 $2,301 $2,370 Total Outreach & Training Services $188,771 $194,865 $202,150 $209,603 $216,765 $224,200 $231,789 $239,670 $247,855 $256,358 Total Operations & Maintenance $72,509,990 $77,803,393 $80,836,787 $83,944,657 $87,122,933 $90,433,801 $93,679,668 $97,056,695 $100,571,092 $104,229,419

7.3%DRAFT 3.9% 3.8% 3.8% 3.8% 3.6% 3.6% 3.6% 3.6%
08/12/2024 19 EXHIBIT 1
2177
City of Stockton
Wastewater Rate Study Page 17 of 18
Revenue Requirement
Exhibit 3
Budget Budget
FY 2023-24 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 Projected
Notes
Taxes & Transfers
Taxes & Transfers Taxes & Transfers $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Taxes & Transfers Total Taxes & Transfers $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Rate Funded Capital $15,000,000 $16,000,000 $17,000,000 $18,000,000 $18,500,000 $19,500,000 $20,500,000 $21,500,000 $22,500,000 $23,500,000 FY 2023 Depr Exp = $12,901,960 Debt Service
Wastewater Revenue Refunding Bonds, 2014 Revenue Bond Wastewater Revenue Refunding Bonds, 2014 Revenue Bond $6,486,375 $6,698,250 $6,692,375 $6,693,250 $6,695,000 $6,696,875 $6,693,250 $0 $0 $0 Exhibit 5 Regional Wastewater Facility Modification - N18126CA WIFIA Loan Regional Wastewater Facility Modification - N18126CA WIFIA Loan 1,296,000 1,296,000 1,296,000 1,296,000 1,296,000 1,296,000 1,296,000 5,588,884 5,588,573 5,588,259 Exhibit 5 Regional Wastewater Control Facilities (SRF) Regional Wastewater Control Facilities (SRF) 0 1,603,318 1,790,740 1,790,740 1,790,740 1,790,740 1,790,740 1,790,740 1,790,740 1,790,740 Exhibit 5 Assumed Future SRF Loan Assumed Future SRF Loan 0 0 0 0 0 0 0 0 0 0 Calc'd @ 2.52% for 30 yrs Asssumed Revenue Bond Asssumed Revenue Bond 0 0 0 0 0 0 0 0 0 0 Calc'd @ 5% for 30 yrs Additional Revenue Bond Additional Revenue Bond 0 0 0 0 0 0 0 0 0 0 Calc'd @ 5% for 30 yrs ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Debt Service Total Debt Service $7,782,375 $9,597,568 $9,779,115 $9,779,990 $9,781,740 $9,783,615 $9,779,990 $7,379,624 $7,379,313 $7,378,999 Less: Debt Service Funding Less: Debt Service Funding
Connection Fees (434 Fund) Connection Fees (434 Fund) $2,095,736 $2,095,736 $2,095,736 $2,095,736 $2,095,736 $2,095,736 $2,095,736 $0 $0 $0 Bond Defeasance (431 Fund) Bond Defeasance (431 Fund) 0 0 0 0 0 0 0 0 0 0 Bond Defeasance (434 Fund) Bond Defeasance (434 Fund) 0 0 0 0 0 0 0 0 0 0 --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Total Less Debt Service Funding Total Less Debt Service Funding $2,095,736 $2,095,736 $2,095,736 $2,095,736 $2,095,736 $2,095,736 $2,095,736 $0 $0 $0 Net Debt Service Net Debt Service $5,686,639 $7,501,832 $7,683,379 $7,684,254 $7,686,004 $7,687,879 $7,684,254 $7,379,624 $7,379,313 $7,378,999 To / (From) Reserves
Operating Fund - Sewer (431) Operating Fund - Sewer (431) $165,830 ($4,842,874) ($2,829,643) ($1,919,471) ($550,007) $393,416 $2,024,707 $4,158,256 $6,201,504 $8,469,159 Capital Fund - SewerCapital Fund - Sewer 0 0 0 0 0 0 0 0 0 0 Rate Stabilization Fund - Sewer (438) Rate Stabilization Fund - Sewer (438) 0 0 0 0 0 0 0 0 0 0 ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Total To / (From) Reserves Total To / (From) Reserves $165,830 ($4,842,874) ($2,829,643) ($1,919,471) ($550,007) $393,416 $2,024,707 $4,158,256 $6,201,504 $8,469,159 Total Revenue Requirement $93,362,459 $96,462,351 $102,690,523 $107,709,440 $112,758,930 $118,015,095 $123,888,629 $130,094,575 $136,651,909 $143,577,577 Bal /(Def) of Funds $0 ($2,138,608) ($7,553,808) ($11,674,396) ($16,040,060) ($20,663,526) ($25,558,166) ($30,738,027) ($36,217,870) ($42,013,204) Bal as a % of Rate Adj 0.0% 2.3% 8.2% 12.5% 17.0% 21.7% 26.5% 31.6% 36.9% 42.3% Proposed Rate Adjustment 0.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% Months of Adjustment 12 7 12 12 12 12 12 12 12 12
Add'l Revenue with Rate Adj $0 $2,138,608 $7,553,808 $11,674,396 $16,040,060 $20,663,526 $25,558,166 $30,738,027 $36,217,870 $42,013,204 Bal / (Def) After Rate Adj $0 $0 ($0) ($0) $0 $0 $0 $0 $0 $0 Total Balance as a % of Rates 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Additional Rate Adjustment Required 0.0% -1.6%DRAFT 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 08/12/2024 20 EXHIBIT 1
2178
City of Stockton
Wastewater Rate Study Page 18 of 18
Revenue Requirement
Exhibit 3
Budget Budget
FY 2023-24 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 Projected
Notes
Average Residential Customer Bill $55.68
Customer Bill on Proposed Adj. $55.68 $57.91 $60.22 $62.63 $65.14 $67.74 $70.45 $73.27 $76.20 $79.25 Bill Difference - Monthly 2.23 2.32 2.41 2.51 2.61 2.71 2.82 2.93 3.05 Cumulative Bill Difference 2.23 4.54 6.95 9.46 12.06 14.77 17.59 20.52 23.57 Debt Service Coverage Ratio (all debt) - No Connection Fees Before Rate Adjustment 2.68 1.72 1.46 1.24 0.98 0.71 0.48 0.31 0.00 0.00 Target 1.00 After Proposed Rate Adjustment 2.68 1.94 2.23 2.43 2.62 2.82 3.09 4.48 4.89 5.33 Target 1.00 Debt Service Coverage Ratio (all debt) - Plus Connection Fees Before Rate Adjustment 3.04 2.01 1.75 1.52 1.27 0.99 0.76 0.69 0.36 0.02 Target 1.25 After Proposed Rate Adjustment 3.04 2.24 2.52 2.72 2.91 3.10 3.37 4.86 5.27 5.71 Target 1.25 Debt Service Coverage Ratio (all debt) - Plus Conn Fees & Rate Stabilization Before Rate Adjustment 4.73 3.40 3.12 2.91 2.67 2.41 2.19 2.61 2.30 1.97 Target 1.25 After Proposed Rate Adjustment 4.73 3.62 3.90 4.11 4.31 4.52 4.81 6.77 7.20 7.67 Target 1.25 Cash Reserves
Beginning Reserve Balances $71,043,938 $107,403,635 $121,080,954 $101,415,642 $81,066,053 $65,384,626 $67,062,809 $70,385,130 $77,960,191 $87,612,668 Operating Fund - Sewer (431)
Beginning Balance $39,458,549 $39,624,380 $34,501,767 $29,584,641 $17,665,170 $7,115,164 $7,508,580 $9,533,287 $13,691,543 $19,893,047 Plus: Additions 165,830 0 0 0 0 393,416 2,024,707 4,158,256 6,201,504 8,469,159 Repayment to 434 0 0 0 0 0 0 0 0 0 0
Less: Bond Defeasance 0 0 0 0 0 0 0 0 0 0
Less: Uses of Funds 0 (5,122,613) (4,917,126) (11,919,471) (10,550,007) 0 0 0 0 0 Ending Balance $39,624,380 $34,501,767 $29,584,641 $17,665,170 $7,115,164 $7,508,580 $9,533,287 $13,691,543 $19,893,047 $28,362,206 Capital Fund - Sewer
Beginning Balance $1,954,429 $39,316,723 $61,518,390 $50,492,074 $41,146,495 $35,090,460 $35,441,365 $35,795,778 $36,153,736 $36,515,273 Plus: Additions 0 0 0 0 0 0 0 0 0 0
Plus: Grant Funds 2,056,965 10,000,000 0 0 0 0 0 0 0 0
Plus: 2024-25 SRF Reimbursement 35,100,000 11,700,000 0 0 0 0 0 0 0 0 Plus Interest Earned 205,329 501,667 673,684 554,421 443,965 350,905 354,414 357,958 361,537 365,153 Less: Uses of Funds 0 0 (11,700,000) (9,900,000) (6,500,000) 0 0 0 0 0 Ending Balance $39,316,723 $61,518,390 $50,492,074 $41,146,495 $35,090,460 $35,441,365 $35,795,778 $36,153,736 $36,515,273 $36,880,426 Target Minimum - 6 mo. of O&M $36,254,995 $38,901,696 $40,418,393 $41,972,328 $43,561,467 $45,216,900 $46,839,834 $48,528,347 $50,285,546 $52,114,710 50.0% O&M Target Ending Bal. / (Def.) $42,686,108 $57,118,461 $39,658,322 $16,839,337 ($1,355,843) ($2,266,956) ($1,510,769) $1,316,932 $6,122,775 $13,127,923 Plus Prior Reserve Fund Appropriations $30,000,000 $30,000,000 $30,000,000 $30,000,000 $30,000,000 $30,000,000 $30,000,000 $30,000,000 $30,000,000 $30,000,000 Target Ending Bal. / (Def.) $72,686,108 $87,118,461 $69,658,322 $46,839,337 $28,644,157 $27,733,044 $28,489,231 $31,316,932 $36,122,775 $43,127,923 Long-Term Debt Proceeds Fund
Beginning Balance $8,927,426 $8,927,426 $4,628,267 ($0) ($0) ($0) ($0) ($0) ($0) ($0) Plus: Additions 0 0 0 0 0 0 0 0 0 0
Less: Uses of Funds 0 (4,299,159) (4,628,267) 0 0 0 0 0 0 0 Ending Balance $8,927,426 $4,628,267 ($0) ($0) ($0) ($0) ($0) ($0) ($0) ($0) Rate Stabilization Fund - Sewer (438)
Beginning Balance $13,196,246 $13,328,208 $13,461,490 $13,596,105 $13,732,066 $13,869,387 $14,008,081 $14,148,161 $14,289,643 $14,432,539 Plus: Additions 0 0 0 0 0 0 0 0 0 0
Plus Interest Earned 131,962 133,282 134,615 135,961 137,321 138,694 140,081 141,482 142,896 144,325 Less: Uses of Funds 0 0 0 0 0 0 0 0 0 0
Ending Balance $13,328,208 $13,461,490 $13,596,105 $13,732,066 $13,869,387 $14,008,081 $14,148,161 $14,289,643 $14,432,539 $14,576,865 Connection Fee Fund - Sewer (434)
Beginning Balance $5,450,324 $6,206,899 $6,971,039 $7,742,821 $8,522,321 $9,309,616 $10,104,784 $10,907,903 $13,825,269 $16,771,808 Connection Fees 2,794,315 2,794,315 2,794,315 2,794,315 2,794,315 2,794,315 2,794,315 2,794,315 2,794,315 2,794,315 As Flat Plus Interest Earned 57,996 65,562 73,203 80,921 88,716 96,589 104,541 123,051 152,224 181,690 Repayment from 431 0 0 0 0 0 0 0 0 0 0
Bond Defeasance 0 0 0 0 0 0 0 0 0 0
Less: Uses of Funds (2,095,736) (2,095,736) (2,095,736) (2,095,736) (2,095,736) (2,095,736) (2,095,736) 0 0 0 Ending Balance $6,206,899 $6,971,039 $7,742,821 $8,522,321 $9,309,616 $10,104,784 $10,907,903 $13,825,269 $16,771,808 $19,747,813 Total Ending Balance $107,403,635 $121,080,954 $101,415,642 $81,066,053 $65,384,626 $67,062,809 $70,385,130 $77,960,191 $87,612,668 $99,567,310 DRAFT 08/12/2024 21 EXHIBIT 1
2179
City of Stockton Page 1 of 2
Wastewater Rate Study Inflation = 0.0% CIP provided by City; already inflated per 7/8/2024 email Capital Improvement Plan
Exhibit 4
24 25 26 27 28 29 30 31 32 33
FY 2023-24 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 Total Notes RWCF Upgrades
RWCF Evaluation and Rehabilitation of Digesters A, B and C $2,000,000 $0 $1,000,000 $1,000,000 $0 $0 $0 $0 $0 $0 $4,000,000 RWCF Sludge Day Tank Mixing Rehabiltation 200,000 0 100,000 0 0 0 0 0 0 0 300,000 RWCF Cogeneration Engine No. 1 Rebuild 0 375,000 375,000 250,000 0 0 0 0 0 0 1,000,000 RWCF Digester Gas Scrubber 500,000 0 500,000 500,000 0 0 0 0 0 0 1,500,000 RWCF Tertiary Road Repairs 750,000 250,000 250,000 250,000 0 0 0 0 0 0 1,500,000 RWCF Cogeneration Engine No. 4 Rebuild 750,000 0 250,000 0 0 0 0 0 0 0 1,000,000 RWCF Large Diameter Pipe Inspection 200,000 0 100,000 0 0 0 0 0 0 0 300,000 RWCF Hot Water Boiler 450,000 100,000 0 0 0 0 0 0 0 0 550,000 RWCF Cogeneration Engine No. 3 Rebuild 0 0 0 750,000 250,000 0 0 0 0 0 1,000,000 Emergency RWCF CIP 0 1,000,000 0 0 0 0 0 0 0 0 1,000,000 RWCF South Bioscrubber Repairs 0 0 900,000 0 0 0 0 0 0 0 900,000 Modifications of 3W Piping System 0 722,000 0 0 0 0 0 0 0 0 722,000 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total RWCF Upgrades $4,850,000 $2,447,000 $3,475,000 $2,750,000 $250,000 $0 $0 $0 $0 $0 $13,772,000 Pipe Projects
Sanitary Sewer Large Diameter Lines Replacement per AMMP $0 $2,379,348 $0 $0 $0 $0 $0 $0 $0 $0 $2,379,348 Wastewater Master Plan Update 225,000 100,000 0 0 0 0 0 0 0 0 325,000 Union Street Rehabilitation between Harding and Acacia 0 0 500,000 0 0 0 0 0 0 0 500,000 Sanitary Sewer Small Diameter Lines Replacement per AMMP 0 500,000 0 0 0 0 0 0 0 0 500,000 Lincoln Road Sanitary Sewer Line Rehab between Pershing Ave. and Alexandria Place 0 2,019,750 2,019,750 0 0 0 0 0 0 0 4,039,500 South Tuxedo Avenue Sewer Trunk Rehabilitation 512,000 2,019,800 0 0 0 0 0 0 0 0 2,531,800 Scibner Street Area Backyard Sewers 1,100,000 1,000,000 0 0 0 0 0 0 0 0 2,100,000 FY25 Sanitary Sewer Maintenance Hole Rehabilitation Project 0 400,000 0 0 0 0 0 0 0 0 400,000 FY26 Sanitary Sewer Maintenance Hole Rehabilitation Project 0 0 400,000 0 0 0 0 0 0 0 400,000 FY27 Sanitary Sewer Maintenance Hole Rehabilitation Project 0 0 0 400,000 0 0 0 0 0 0 400,000 FY28 Sanitary Sewer Maintenance Hole Rehabilitation Project 0 0 0 0 400,000 0 0 0 0 0 400,000 FY29 Sanitary Sewer Maintenance Hole Rehabilitation Project 0 0 0 0 0 400,000 0 0 0 0 400,000 FY25 Sanitary Sewer Street Improvements Reimbursements (COS PW) 0 200,000 0 0 0 0 0 0 0 0 200,000 FY26 Sanitary Sewer Street Improvements Reimbursements (COS PW) 0 0 200,000 0 0 0 0 0 0 0 200,000 FY27 Sanitary Sewer Street Improvements Reimbursements (COS PW) 0 0 0 200,000 0 0 0 0 0 0 200,000 FY28 Sanitary Sewer Street Improvements Reimbursements (COS PW) 0 0 0 0 200,000 0 0 0 0 0 200,000 FY29 Sanitary Sewer Street Improvements Reimbursements (COS PW) 0 0 0 0 0 200,000 0 0 0 0 200,000 FY25 Sanitary Sewer Street Improvements Reimbursements (S.J. County) 0 150,000 0 0 0 0 0 0 0 0 150,000 FY26 Sanitary Sewer Street Improvements Reimbursements (S.J. County) 0 0 150,000 0 0 0 0 0 0 0 150,000 FY27 Sanitary Sewer Street Improvements Reimbursements (S.J. County) 0 0 0 150,000 0 0 0 0 0 0 150,000 FY28 Sanitary Sewer Street Improvements Reimbursements (S.J. County) 0 0 0 0 150,000 0 0 0 0 0 150,000 FY29 Sanitary Sewer Street Improvements Reimbursements (S.J. County) 0 0 0 0 0 150,000 0 0 0 0 150,000 Westside Interceptor Parallel Force Main 0 6,000,000 6,000,000 14,400,000 14,800,000 15,200,000 0 0 0 0 56,400,000 San Jose Street and Yosemite Street Backyard Sewer Lines Replacement 0 257,000 865,000 0 0 0 0 0 0 0 1,122,000 Charter Way and Grant Street Sewer Line Replacement 0 365,000 0 0 0 0 0 0 0 0 365,000 El Dorado Street and Howard Street Easement Sewer Line Replacement 0 545,000 0 0 0 0 0 0 0 0 545,000 FY25 Large Diameter Trunk Sewer Pipeline Inspection 0 200,000 0 0 0 0 0 0 0 0 200,000 FY26 Large Diameter Trunk Sewer Pipeline Inspection 0 0 200,000 0 0 0 0 0 0 0 200,000 FY27 Large Diameter Trunk Sewer Pipeline Inspection 0 0 0 200,000 0 0 0 0 0 0 200,000 FY28 Large Diameter Trunk Sewer Pipeline Inspection 0 0 0 0 200,000 0 0 0 0 0 200,000 FY29 Large Diameter Trunk Sewer Pipeline Inspection 0 0 0 0 0 200,000 0 0 0 0 200,000 Pershing Ave Sewer Trunk Rehabilitation 527,000 1,246,000 0 0 0 0 0 0 0 0 1,773,000 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Pipe Projects $2,364,000 $17,381,898 $10,334,750 $15,350,000 $15,750,000 $16,150,000 $0 $0 $0 $0 $77,330,648 DRAFT 08/12/2024 22 EXHIBIT 1
2180
City of Stockton Page 2 of 2
Wastewater Rate Study Inflation = 0.0% CIP provided by City; already inflated per 7/8/2024 email Capital Improvement Plan
Exhibit 4
24 25 26 27 28 29 30 31 32 33
FY 2023-24 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 Total Notes Pump Station Rehabilitation
Fourteen Mile Slough Sanitary Pump Station Assessment/Rebuild $0 $0 $15,000,000 $15,000,000 $15,000,000 $0 $0 $0 $0 $0 $45,000,000 System 10 Sewer Relief Forcemain 0 500,000 500,000 0 4,000,000 0 0 0 0 0 5,000,000 Brookside Estates Sanitary Sewer Pump Station 500,000 0 300,000 0 0 0 0 0 0 0 800,000 Swenson Road & 5 Mile Creek Sanitary Sewer Pump Station (source: 2008 Master Plan) 100,000 0 1,000,000 1,000,000 0 0 0 0 0 0 2,100,000 Lincoln Street Sanitary Sewer Pump Station and Forcemain 4,500,000 0 2,000,000 2,500,000 0 0 0 0 0 0 9,000,000 Camanche Sanitary Sewer Pump Station Rehabilitation 0 0 0 550,000 0 0 0 0 0 0 550,000 College Park Sanitary Sewer Pump Station Rehabilitation 0 0 0 750,000 0 0 0 0 0 0 750,000 Waterloo Sanitary Sewer Pump Station Rehabilitation 0 0 1,303,000 0 0 0 0 0 0 0 1,303,000 Drake Sanitary Sewer Pump Station Rehabilitation 0 0 1,303,000 0 0 0 0 0 0 0 1,303,000 Sanitary Pump Station Transfer Switch Installation 0 250,000 200,000 0 0 0 0 0 0 0 450,000 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Pump Station Rehabilitation $5,100,000 $750,000 $21,606,000 $19,800,000 $19,000,000 $0 $0 $0 $0 $0 $66,256,000 Future Unidentified Capital Improvements $2,686,000 $0 $0 $0 $0 $3,350,000 $20,500,000 $21,500,000 $22,500,000 $23,500,000 $94,036,000 Transfer to Long-Term Debt Proceeds Fund $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Capital Improvement Projects $15,000,000 $20,578,898 $35,415,750 $37,900,000 $35,000,000 $19,500,000 $20,500,000 $21,500,000 $22,500,000 $23,500,000 $251,394,648 Less: Other Funding Sources
Operating Fund - Sewer (431) $0 $279,739 $2,087,483 $10,000,000 $10,000,000 $0 $0 $0 $0 $0 $22,367,222 Input Connection Fee Fund - Sewer (434) 0 0 0 0 0 0 0 0 0 0 0 Fund 434 Capital Fund - Sewer 0 0 11,700,000 9,900,000 6,500,000 0 0 0 0 0 28,100,000 Input Long-Term Debt Proceeds Fund 0 4,299,159 4,628,267 0 0 0 0 0 0 0 8,927,426 Input Assumed Future SRF Loan 0 0 0 0 0 0 0 0 0 0 0
Assumed Revenue Bonds 0 0 0 0 0 0 0 0 0 0 0 Input
Revenue Bonds 0 0 0 0 0 0 0 0 0 0 0 Calculated
---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ----------------- Total Other Funding Sources $0 $4,578,898 $18,415,750 $19,900,000 $16,500,000 $0 $0 $0 $0 $0 $59,394,648 Rate Funded Capital $15,000,000 $16,000,000 $17,000,000 $18,000,000 $18,500,000 $19,500,000 $20,500,000 $21,500,000 $22,500,000 $23,500,000 $192,000,000 DRAFT 08/12/2024 23 EXHIBIT 1
2181
City of Stockton
Wastewater Rate Study
Calculation of Annual Debt Service Payments
Exhibit 5
Wastewater Revenue Refunding Bonds, 2014 Revenue BondPrincipal Wastewater Revenue Refunding Bonds, 2014 Revenue BondInterest Wastewater Revenue Refunding Bonds, 2014 Revenue BondTotal Regional Wastewater Facility Modification - N18126CA WIFIA LoanPrincipal Regional Wastewater Facility Modification - N18126CA WIFIA LoanInterest Regional Wastewater Facility Modification - N18126CA WIFIA LoanTotal Regional Wastewater Control Facilities (SRF)Total Year
Total Annual
Debt Service
(P&I)
Principal Interest Total Principal Interest Total Principal Interest Total FY 2023-24 $4,635,000 $1,851,375 $6,486,375 $0 $1,296,000 $1,296,000 $0 $0 $0 $7,782,375 FY 2024-25 5,090,000 1,608,250 6,698,250 0 1,296,000 1,296,000 1,252,669 350,649 1,603,318 9,597,568 FY 2025-26 5,345,000 1,347,375 6,692,375 0 1,296,000 1,296,000 1,399,898 390,842 1,790,740 9,779,115 FY 2026-27 5,620,000 1,073,250 6,693,250 0 1,296,000 1,296,000 1,393,413 397,327 1,790,740 9,779,990 FY 2027-28 5,910,000 785,000 6,695,000 0 1,296,000 1,296,000 1,405,954 384,786 1,790,740 9,781,740 FY 2028-29 6,215,000 481,875 6,696,875 0 1,296,000 1,296,000 1,418,607 372,133 1,790,740 9,783,615 FY 2029-30 6,530,000 163,250 6,693,250 0 1,296,000 1,296,000 1,431,375 359,365 1,790,740 9,779,990 FY 2030-31 0 0 0 4,318,797 1,270,087 5,588,884 1,444,257 346,483 1,790,740 7,379,624 FY 2031-32 0 0 0 4,370,622 1,217,951 5,588,573 1,457,255 333,484 1,790,740 7,379,313 FY 2032-33 0 0 0 4,423,070 1,165,189 5,588,259 1,470,371 320,369 1,790,740 7,378,999 FY 2033-34 0 0 0 4,476,147 1,111,793 5,587,940 1,483,604 307,136 1,790,740 7,378,680 FY 2034-35 0 0 0 4,529,860 1,057,757 5,587,617 1,496,956 293,783 1,790,740 7,378,357 FY 2035-36 0 0 0 4,584,219 1,003,073 5,587,292 1,510,429 280,311 1,790,740 7,378,032 FY 2036-37 0 0 0 4,639,229 947,732 5,586,961 1,524,023 266,717 1,790,740 7,377,701 FY 2037-38 0 0 0 4,694,900 891,727 5,586,627 1,537,739 253,001 1,790,740 7,377,367 FY 2038-39 0 0 0 4,751,239 835,050 5,586,289 1,551,579 239,161 1,790,740 7,377,029 FY 2039-40 0 0 0 4,808,254 777,694 5,585,948 1,565,543 225,197 1,790,740 7,376,688 FY 2040-41 0 0 0 4,865,953 719,648 5,585,601 1,579,633 211,107 1,790,740 7,376,341 FY 2041-42 0 0 0 4,924,344 660,906 5,585,250 1,593,850 196,890 1,790,740 7,375,990 FY 2042-43 0 0 0 4,983,436 601,460 5,584,896 1,608,194 182,546 1,790,740 7,375,636 FY 2043-44 0 0 0 5,043,238 541,300 5,584,538 1,622,668 168,072 1,790,740 7,375,278 FY 2044-45 0 0 0 5,103,756 480,418 5,584,174 1,637,272 153,468 1,790,740 7,374,914 FY 2045-46 0 0 0 5,165,001 418,805 5,583,806 1,652,007 138,732 1,790,740 7,374,546 FY 2046-47 0 0 0 5,226,981 356,453 5,583,434 1,666,876 123,864 1,790,740 7,374,174 FY 2047-48 0 0 0 5,289,705 293,353 5,583,058 1,681,877 108,862 1,790,740 7,373,798 FY 2048-49 0 0 0 5,353,182 229,496 5,582,678 1,697,014 93,726 1,790,740 7,373,418 FY 2049-50 0 0 0 5,417,420 164,872 5,582,292 1,712,287 78,452 1,790,740 7,373,032 FY 2050-51 0 0 0 5,482,429 99,473 5,581,902 1,727,698 63,042 1,790,740 7,372,642 FY 2051-52 0 0 0 5,548,218 33,289 5,581,507 1,743,247 47,493 1,790,740 7,372,247 FY 2052-53 0 0 0 0 0 0 1,758,937 31,803 1,790,740 1,790,740 FY 2053-54 0 0 0 0 0 0 1,774,767 15,973 1,790,740 1,790,740 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ------------------ ------------------ ------------------ ------------------ $39,345,000 $7,310,375 $46,655,375 $108,000,000 $23,949,526 $131,949,526 $46,800,000 $6,734,774 $53,534,774 $232,139,675 [1] Future Debt Service Assumptions Provided By the City's Financial Advisor Wastewater Revenue Refunding Bonds,
2014 Revenue Bond
Regional Wastewater Facility Modification -
N18126CA WIFIA Loan Regional Wastewater Control Facilities (SRF) DRAFT 08/12/2024 24 EXHIBIT 1
2182
City of Stockton Page 1 of 5
Wastewater Rate Study
Revenues At Present Rates
Exhibit 6
FY 2023-24 Rates Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Total Residential
Single Family & Condo
Base Charge $ / Acct.

City Customer $55.68 76,386 76,386 76,386 76,386 76,386 76,386 76,386 76,386 76,386 76,386 76,386 76,386 76,386 Non-City Customer 50.77 4,372 4,372 4,372 4,372 4,372 4,372 4,372 4,372 4,372 4,372 4,372 4,372 4,372 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------- Total 80,758 80,758 80,758 80,758 80,758 80,758 80,758 80,758 80,758 80,758 80,758 80,758 80,758 Consumption Charge $ / CCF
Monthly Consumption $0.00 0 0 0 0 0 0 0 0 0 0 0 0 0
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total 0 0 0 0 0 0 0 0 0 0 0 0 0
Special District Single Family & Condo
Base Charge
Single Family $50.77 4,563 4,563 4,563 4,563 4,563 4,563 4,563 4,563 4,563 4,563 4,563 4,563 4,563 Condo 50.77 59 59 59 59 59 59 59 59 59 59 59 59 59
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total 4,622 4,622 4,622 4,622 4,622 4,622 4,622 4,622 4,622 4,622 4,622 4,622 4,622 Total Single Family & Condo Revenue $4,709,798 $4,709,798 $4,709,798 $4,709,798 $4,709,798 $4,709,798 $4,709,798 $4,709,798 $4,709,798 $4,709,798 $4,709,798 $4,709,798 $56,517,581 Multi-Family
Base Charge $ / Unit
City Customer $52.45 7,623 7,623 7,623 7,623 7,623 7,623 7,623 7,623 7,623 7,623 7,623 7,623 7,623 Non-City Customer 47.05 900 900 900 900 900 900 900 900 900 900 900 900 900 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Total 8,523 8,523 8,523 8,523 8,523 8,523 8,523 8,523 8,523 8,523 8,523 8,523 8,523 Consumption Charge $ / CCF
Monthly Consumption $0.00 0 0 0 0 0 0 0 0 0 0 0 0 0
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total 0 0 0 0 0 0 0 0 0 0 0 0 0
Special District Multi-Family
Base Charge $ / Acct.

Duplex $47.05 144 144 144 144 144 144 144 144 144 144 144 144 144 Triplex (and Fourplex) 47.05 96 96 96 96 96 96 96 96 96 96 96 96 96 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 240 240 240 240 240 240 240 240 240 240 240 240 240
Total Multi-Family Revenue $453,463 $453,463 $453,463 $453,463 $453,463 $453,463 $453,463 $453,463 $453,463 $453,463 $453,463 $453,463 $5,441,560 Apartments
Base Charge $ / Unit
City Customer $47.57 17,819 17,819 17,819 17,819 17,819 17,819 17,819 17,819 17,819 17,819 17,819 17,819 17,819 Non-City Customer 41.75 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total 29,819 29,819 29,819 29,819 29,819 29,819 29,819 29,819 29,819 29,819 29,819 29,819 29,819 Consumption Charge $ / CCF
Monthly Consumption $0.00 0 0 0 0 0 0 0 0 0 0 0 0 0
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total 0 0 0 0 0 0 0 0 0 0 0 0 0
Special District Apartments
Base Charge $ / Acct.

Apartment $41.75 400 400 400 400 400 400 400 400 400 400 400 400 400 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- 400 400 400 400 400 400 400 400 400 400 400 400 400
Total Apartments Revenue $1,365,350 $1,365,350 $1,365,350 $1,365,350 $1,365,350 $1,365,350 $1,365,350 $1,365,350 $1,365,350 $1,365,350 $1,365,350 $1,365,350 $16,384,198 Total Residential Revenue $6,528,612 $6,528,612 $6,528,612 $6,528,612 $6,528,612 $6,528,612 $6,528,612 $6,528,612 $6,528,612 $6,528,612 $6,528,612 $6,528,612 $78,343,339 DRAFT 08/12/2024 25 EXHIBIT 1
2183
City of Stockton Page 2 of 5
Wastewater Rate Study
Revenues At Present Rates
Exhibit 6
FY 2023-24 Rates Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Total Commercial/Institutional
Special District Billing
Minimum Bill $50.77 100 100 100 100 100 100 100 100 100 100 100 100 100 Base 23.56 81 81 81 81 81 81 81 81 81 81 81 81 81
Food Handling (HCF) 4.54 820 820 820 820 820 820 820 820 820 820 820 820 9,840 Commercial (HCF) 2.70 811 811 811 811 811 811 811 811 811 811 811 811 9,732 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ --------------- Total Revenues $12,898 $12,898 $12,898 $12,898 $12,898 $12,898 $12,898 $12,898 $12,898 $12,898 $12,898 $12,898 $154,774 Low Strength
Base Charge $ / Acct.

City Customer $26.83 205 205 205 205 205 205 205 205 205 205 205 205 205 Non-City Customer 23.56 1 1 1 1 1 1 1 1 1 1 1 1 1
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total 206 206 206 206 206 206 206 206 206 206 206 206 206 Consumption Charge $ / CCF
City Customer $2.22 11,295 11,295 11,295 12,177 11,397 11,254 11,254 11,254 11,254 11,254 11,254 11,254 136,240 Non-City Customer 2.22 0 0 0 0 0 0 0 0 0 0 0 0 0
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total 11,295 11,295 11,295 12,177 11,397 11,254 11,254 11,254 11,254 11,254 11,254 11,254 136,240 Total Revenue $30,599 $30,599 $30,599 $32,557 $30,825 $30,508 $30,508 $30,508 $30,508 $30,508 $30,508 $30,508 $368,738 Medium Strength
Base Charge $ / Acct.

City Customer $26.83 3,176 3,176 3,176 3,176 3,176 3,176 3,176 3,176 3,176 3,176 3,176 3,176 3,176 Non-City Customer 23.56 45 45 45 45 45 45 45 45 45 45 45 45 45 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Total 3,221 3,221 3,221 3,221 3,221 3,221 3,221 3,221 3,221 3,221 3,221 3,221 3,221 Consumption Charge $ / CCF
City Customer $2.70 111,740 110,872 110,812 116,298 112,745 111,284 114,905 110,170 114,121 110,416 110,304 131,635 1,365,300 Non-City Customer 2.70 0 0 0 0 0 0 0 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------- Total 111,740 110,872 110,812 116,298 112,745 111,284 114,905 110,170 114,121 110,416 110,304 131,635 1,365,300 Total Revenue $387,970 $385,627 $385,464
DRAFT
$400,276 $390,683 $386,739 $396,515 $383,731 $394,398 $384,395 $384,094 $441,686 $4,721,578 08/12/2024 26 EXHIBIT 1
2184
City of Stockton Page 3 of 5
Wastewater Rate Study
Revenues At Present Rates
Exhibit 6
FY 2023-24 Rates Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Total High Strength
Base Charge $ / Acct.

City Customer $26.83 404 404 404 404 404 404 404 404 404 404 404 404 404 Non-City Customer 23.56 4 4 4 4 4 4 4 4 4 4 4 4 4
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Total 408 408 408 408 408 408 408 408 408 408 408 408 408 Consumption Charge $ / CCF
City Customer $4.54 30,014 30,066 29,715 30,027 33,576 30,189 29,903 30,121 29,728 29,728 29,424 39,574 372,064 Non-City Customer 4.54 0 0 0 0 0 0 0 0 0 0 0 0 0
------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Total 30,014 30,066 29,715 30,027 33,576 30,189 29,903 30,121 29,728 29,728 29,424 39,574 372,064 Total Revenue $147,197 $147,433 $145,837 $147,256 $163,368 $147,990 $146,694 $147,683 $145,897 $145,897 $144,520 $190,599 $1,820,372 Schools
Base Charge $ / Acct.

City Customer $26.83 92 92 92 92 92 92 92 92 92 92 92 92 92 Non-City Customer 23.56 0 0 0 0 0 0 0 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Total 92 92 92 92 92 92 92 92 92 92 92 92 92
Avg Daily Attendance $ / ADA
City Customer $1.30 57,313 57,313 57,313 57,313 57,313 57,313 57,313 57,313 57,313 57,313 57,313 57,313 57,313 Non-City Customer 1.30 0 0 0 0 0 0 0 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Total 57,313 57,313 57,313 57,313 57,313 57,313 57,313 57,313 57,313 57,313 57,313 57,313 57,313 Total Revenue $76,975 $76,975 $76,975 $76,975 $76,975 $76,975 $76,975 $76,975 $76,975 $76,975 $76,975 $76,975 $923,703 Total Com / Ind Revenue $642,741 $640,635 $638,876 $657,064 $661,852 $642,213 $650,693 $638,897 $647,779 $637,775 $636,097 $739,768 $7,834,391 DRAFT 08/12/2024 27 EXHIBIT 1
2185
City of Stockton Page 4 of 5
Wastewater Rate Study
Revenues At Present Rates
Exhibit 6
FY 2023-24 Rates Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Total Industrial
Admin / Stand-by Charges $ / Acct.

Base Charge $26.83 24 26 26 26 26 26 26 26 26 26 26 26 26 Flow $ / MG
Monthly Consumption $864.80 128.97 154.47 154.47 154.47 154.47 154.47 154.47 154.47 154.47 154.47 154.47 154.47 1,828.14 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ------------- Total 128.97 154.47 154.47 154.47 154.47 154.47 154.47 154.47 154.47 154.47 154.47 154.47 1,828.14 BOD $ / 1,000 lbs
Monthly Consumption $140.13 796.31 836.39 836.39 836.39 836.39 836.39 836.39 836.39 836.39 836.39 836.39 849.39 10,009.60 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ------------- Total 796.31 836.39 836.39 836.39 836.39 836.39 836.39 836.39 836.39 836.39 836.39 849.39 10,009.60 SS $ / 1,000 lbs
Monthly Consumption $102.88 412.38 448.08 585.74 448.08 448.08 448.08 448.16 448.08 448.08 448.08 448.08 448.08 5,479.00 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ------------- Total 412.38 448.08 585.74 448.08 448.08 448.08 448.16 448.08 448.08 448.08 448.08 448.08 5,479.00 O&M (Consumption) Charges
Flow $ / MG
Monthly Consumption $748.52 85.68 100.90 99.45 69.56 54.08 56.53 75.77 55.83 70.21 56.86 62.22 57.76 844.85 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Total 85.68 100.90 99.45 69.56 54.08 56.53 75.77 55.83 70.21 56.86 62.22 57.76 844.85 BOD $ / 1,000 lbs
Monthly Consumption $52.14 264.49 363.89 303.21 167.36 159.23 158.52 166.26 143.95 200.50 156.98 172.69 226.63 2,483.71 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ------------- Total 264.49 363.89 303.21 167.36 159.23 158.52 166.26 143.95 200.50 156.98 172.69 226.63 2,483.71 SS $ / 1,000 lbs
Monthly Consumption $83.45 96.09 156.59 407.86 136.14 40.48 43.97 41.89 37.84 55.83 42.47 47.25 57.80 1,164.21 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ------------- Total 96.09 156.59 407.86 136.14 40.48 43.97 41.89 37.84 55.83 42.47 47.25 57.80 1,164.21 Special Customer (flow only)
Low $1.64 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Medium 2.03 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Total Industrial Revenue $352,132 $405,151 $436,033
DRAFT
$369,739 $349,745 $351,833 $366,473 $350,038 $365,252 $351,875 $357,105 $359,281 $4,414,659 08/12/2024 28 EXHIBIT 1
2186
City of Stockton Page 5 of 5
Wastewater Rate Study
Revenues At Present Rates
Exhibit 6
FY 2023-24 Rates Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Total Summary
Number of Customers
Residential
Single Family & Condo 85,480 85,480 85,480 85,480 85,480 85,480 85,480 85,480 85,480 85,480 85,480 85,480 85,480 Multi-Family 8,763 8,763 8,763 8,763 8,763 8,763 8,763 8,763 8,763 8,763 8,763 8,763 8,763 Apartments 30,219 30,219 30,219 30,219 30,219 30,219 30,219 30,219 30,219 30,219 30,219 30,219 30,219 Commercial/Institutional
Low Strength 206 206 206 206 206 206 206 206 206 206 206 206 206 Medium Strength 3,261 3,261 3,261 3,261 3,261 3,261 3,261 3,261 3,261 3,261 3,261 3,261 3,261 High Strength 449 449 449 449 449 449 449 449 449 449 449 449 449 Schools 92 92 92 92 92 92 92 92 92 92 92 92 92
Industrial 24 26 26 26 26 26 26 26 26 26 26 26 26
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ Total Number of Customers 128,494 128,496 128,496 128,496 128,496 128,496 128,496 128,496 128,496 128,496 128,496 128,496 128,496 Consumption (CCF)
Residential
Single Family & Condo 0 0 0 0 0 0 0 0 0 0 0 0 0
Multi-Family 0 0 0 0 0 0 0 0 0 0 0 0 0
Apartments 0 0 0 0 0 0 0 0 0 0 0 0 0
Commercial/Institutional
Low Strength 11,295 11,295 11,295 12,177 11,397 11,254 11,254 11,254 11,254 11,254 11,254 11,254 136,240 Medium Strength 112,551 111,683 111,623 117,109 113,556 112,095 115,716 110,981 114,932 111,227 111,115 132,446 1,375,032 High Strength 30,834 30,886 30,535 30,847 34,396 31,009 30,723 30,941 30,548 30,548 30,244 40,394 381,904 Schools 57,313 57,313 57,313 57,313 57,313 57,313 57,313 57,313 57,313 57,313 57,313 57,313 687,756 Industrial 114,545 134,893 132,955 92,995 72,299 75,575 101,297 74,639 93,864 76,016 83,182 77,219 1,129,479 --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------- Total Consumption 326,539 346,070 343,720 310,440 288,961 287,246 316,303 285,128 307,910 286,358 293,109 318,626 3,710,411 Revenues
Residential
Single Family & Condo $4,714,875 $4,714,875 $4,714,875 $4,714,875 $4,714,875 $4,714,875 $4,714,875 $4,714,875 $4,714,875 $4,714,875 $4,714,875 $4,714,875 $56,578,505 Multi-Family 453,463 453,463 453,463 453,463 453,463 453,463 453,463 453,463 453,463 453,463 453,463 453,463 5,441,560 Apartments 1,365,350 1,365,350 1,365,350 1,365,350 1,365,350 1,365,350 1,365,350 1,365,350 1,365,350 1,365,350 1,365,350 1,365,350 16,384,198 Commercial/Institutional
Low Strength $30,599 $30,599 $30,599 $32,557 $30,825 $30,508 $30,508 $30,508 $30,508 $30,508 $30,508 $30,508 $368,738 Medium Strength 391,108 388,765 388,603 403,415 393,822 389,878 399,654 386,869 397,537 387,533 387,232 444,824 4,759,241 High Strength 151,879 152,116 150,520 151,938 168,050 152,673 151,376 152,365 150,579 150,579 149,202 195,282 1,876,559 Schools 76,975 76,975 76,975 76,975 76,975 76,975 76,975 76,975 76,975 76,975 76,975 76,975 923,703 Industrial 352,132 405,151 436,033 369,739 349,745 351,833 366,473 350,038 365,252 351,875 357,105 359,281 4,414,659 --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- ---------------- Total Revenues $7,536,383 $7,587,296 $7,616,419 $7,568,313 $7,553,107 $7,535,556 $7,558,675 $7,530,445 $7,554,540 $7,531,160 $7,534,712 $7,640,559 $90,747,163 FY 2023-24 Budget $91,277,821
Difference ($530,658)
Percent -0.6%
FY 2023-24 Projected $88,200,000
Difference $2,547,163
Percent 2.9%
DRAFT 08/12/2024 29 EXHIBIT 1
2187
City of Stockton
Wastewater Rate Study
Development of Volume Distribution Factor
Exhibit 7

0.0% Total Annual Avg. Daily
Annual flow Inflow and Flow at Plant Flow At % of
in HCF Infiltration (HCF) Plant (MGD) Total
Residential
Single Family & Condo 9,109,792 0 9,109,792 18.67 62.5% Multi-Family 790,216 0 790,216 1.62 5.4%
Apartments 1,981,849 0 1,981,849 4.06 13.6%
Commercial/Institutional
Low Strength 95,368 0 95,368 0.20 0.7%
Medium Strength 969,335 0 969,335 1.99 6.6%
High Strength 352,569 0 352,569 0.72 2.4%
Schools 261,491 0 261,491 0.54 1.8%
Industrial 1,016,531 0 1,016,531 2.08 7.0%
--------------- --------------- --------- ----------
Total 14,577,151 14,577,151 29.87 100.0%
Actual Flows [1] 13,349,989 27.36
Distribution Factor (VOL)
Notes
[1] - Provided by the City based on influent monthly averages for 2022-23 DRAFT 08/12/2024 30 EXHIBIT 1
2188
City of Stockton
Wastewater Rate Study
Development of the Strength Distribution Factor
Exhibit 8
Annual Flow Avg. Factor Calculated % of Avg. Factor Calculated % of (HCF) (mg/l) Pounds Total (mg/l) Pounds Total
Residential
Single Family & Condo 9,109,792 275 42,817 56.5% 390 60,722 58.3% Multi-Family 790,216 275 3,714 4.9% 390 5,267 5.1%
Apartments 1,981,849 275 9,315 12.3% 390 13,210 12.7%
Commercial/Institutional
Low Strength 95,368 275 448 0.6% 390 636 0.6%
Medium Strength 969,335 360 5,964 7.9% 475 7,869 7.6%
High Strength 352,569 525 3,164 4.2% 625 3,766 3.6%
Schools 261,491 275 1,229 1.6% 390 1,743 1.7%
Industrial 1,016,531 525 9,121 12.0% 625 10,859 10.4%
---------------- --------------- ----------- --------------- ----------- Total 14,577,151 75,772 100.0% 104,073 100.0%
Actual pounds [2] 304 76,554 418 107,410
Distribution Factor (CBOD) (SS)
Notes
[1] - Based on estimated values from City treatment data and industry standard strength levels [2] - Provided by the City based on influent monthly averages for 2022-23 Carbonaceous Biochemical Oxygen Demand [1] Suspended Solids [1] DRAFT 08/12/2024 31 EXHIBIT 1
2189
City of Stockton
Wastewater Rate Study
Development of the Customer Distribution Factor
Exhibit 9
Number of % of Number of Weighting Weighted % of
Accounts Total Bills Factor Customer Total
Residential
Single Family & Condo 85,480 66.5% 85,480 1.0 85,480 66.5% Multi-Family 8,763 6.8% 8,763 1.0 8,763 6.8%
Apartments 30,219 23.5% 30,219 1.0 30,219 23.5%
Commercial/Institutional
Low Strength 206 0.2% 206 1.0 206 0.2%
Medium Strength 3,261 2.5% 3,261 1.0 3,261 2.5%
High Strength 449 0.3% 449 1.0 449 0.3%
Schools 92 0.1% 92 1.0 92 0.1%
Industrial 26 0.0% 26 1.0 26 0.0%
-------------- ---------- ------------- ------------- ---------- Total 128,496 100.0% 128,496 128,496 100.0%
Distribution Factor (AC) (WCA)
Notes
Actual Customer Customer Service & Accounting
DRAFT 08/12/2024 32 EXHIBIT 1
2190
City of Stockton
Wastewater Rate Study
Development of the Revenue Related Allocation Factor
Exhibit 10
Revenue
FY 2024-25 % of Total
Residential
ngle Family & Condo Single Family & Condo $57,144,290 62.3% ulti-Family Multi-Family 5,495,976 6.0%
partments Apartments 16,548,040 18.1%
Commercial/Institutional
w Strength Low Strength $372,425 0.4%
edium StrengthMedium Strength 4,806,833 5.2%
gh Strength High Strength 1,895,325 2.1%
Schools 932,940 1.0%
Industrial 4,458,805 4.9%
---------------- ------------
Total $91,654,635 100.0%
Distribution Factor (RR)
DRAFT 08/12/2024 33 EXHIBIT 1
2191
City of Stockton
Wastewater Rate Study
Functionalization and Classification
Exhibit 11.1
Weighted
Carbonaceous Bio- Suspended Actual Customer Revenue Direct Volume Oxygen Demand Solids Customer Accounting Related Assign.

Net Plant (VOL) (CBOD) (SS) (AC) (WCA) (RR) (DA)
Treatment
Headworks $410,048 $410,048 $0 $0 $0 $0 $0 $0 100.0% VOL Bar Screen 25,283 25,283 0 0 0 0 0 0 100.0% VOL
Sedimentation Tanks 150,789 0 45,237 105,552 0 0 0 0 70.0% SS 30.0% CBOD Buildings 4,600,889 348,709 1,545,114 2,707,066 0 0 0 0 As All Other Treatment Plant Trickling Filter 761,631 0 761,631 0 0 0 0 0 100.0% CBOD Fan Pit 15,756 7,878 3,939 3,939 0 0 0 0 50.0% VOL 25.0% CBOD 25.0% SS Sludge Lagoon 144,046 0 72,023 72,023 0 0 0 0 50.0% CBOD 50.0% SS Digester 1,786,821 0 536,046 1,250,775 0 0 0 0 30.0% CBOD 70.0% SS Pumping 221,111 221,111 0 0 0 0 0 0 100.0% VOL
Oxidation Pond 215,659 0 215,659 0 0 0 0 0 100.0% CBOD
Tanks 5,922 2,961 1,480 1,480 0 0 0 0 50.0% VOL 25.0% CBOD 25.0% SS Vaporizer 6,363 3,182 1,591 1,591 0 0 0 0 50.0% VOL 25.0% CBOD 25.0% SS Tertiary 1,580,325 790,163 395,081 395,081 0 0 0 0 50.0% VOL 25.0% CBOD 25.0% SS Chlorine Contact Canal 188,359 94,179 47,090 47,090 0 0 0 0 50.0% VOL 25.0% CBOD 25.0% SS Sludge Processing Facility 15,294,173 0 4,588,252 10,705,921 0 0 0 0 30.0% CBOD 70.0% SS DAF Thickeners 1,543,370 0 771,685 771,685 0 0 0 0 50.0% CBOD 50.0% SS Cogen 442,624 0 221,312 221,312 0 0 0 0 50.0% CBOD 50.0% SS Biotower 87,658 87,658 0 0 0 0 0 0 100.0% VOL
Peroxide Station 63,612 0 63,612 0 0 0 0 0 100.0% CBOD
Dual Feed System 227,399 113,700 56,850 56,850 0 0 0 0 50.0% VOL 25.0% CBOD 25.0% SS RWCF Expansion
Secondary Treatment 71,100,000 1,600,000 60,820,000 8,680,000 0 0 0 0 2.3% VOL 85.5% CBOD 12.2% TSS Preliminary Treatment 51,200,000 29,350,000 660,000 21,190,000 0 0 0 0 57.3% VOL 1.3% CBOD 41.4% SS Personnel Building 29,500,000 0 0 0 29,500,000 0 0 0 100.0% AC Plant Operations 27,800,000 26,733,333 533,333 533,333 0 0 0 0 96.2% VOL 1.9% CBOD 1.9% SS Solids Handling 10,700,000 0 2,675,000 8,025,000 0 0 0 0 25.0% CBOD 75.0% SS Tertiary 52,500,000 24,525,000 1,475,000 26,500,000 0 0 0 0 46.7% VOL 2.8% CBOD 50.5% SS ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Treatment $270,571,838 $84,313,204 $75,489,935 $81,268,699 $29,500,000 $0 $0 $0 100.0% 31.2% 27.9% 30.0% 10.9% 0.0% 0.0% 0.0%
Collection
Land $1,106,917 $0 $0 $0 $1,106,917 $0 $0 $0 100.0% AC
Pump Station 5,508,855 5,508,855 0 0 0 0 0 0 100.0% VOL Sewer Lines 168,969,243 143,623,857 0 0 25,345,386 0 0 0 85.0% VOL 15.0% AC ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Total Collection $175,585,015 $149,132,712 $0 $0 $26,452,303 $0 $0 $0 100.0% 84.9% 0.0% 0.0% 15.1% 0.0% 0.0% 0.0%
Total Plant Before General $446,156,853 $233,445,916 $75,489,935 $81,268,699 $55,952,303 $0 $0 $0 General Plant
Equipment $8,075,786 $0 $0 $0 $8,075,786 $0 $0 $0 100.0% AC Buildings 1,151,322 0 0 0 1,151,322 0 0 0 100.0% AC
Paving 1,819,988 0 0 0 1,819,988 0 0 0 100.0% AC
Lighting 51,508 0 0 0 51,508 0 0 0 100.0% AC
Yard Improvements 128,835 0 0 0 128,835 0 0 0 100.0% AC Piping 151,098 0 0 0 151,098 0 0 0 100.0% AC
Fencing 36,032 0 0 0 36,032 0 0 0 100.0% AC
Stockton Channel Water Quality 1,350,102 0 0 0 1,350,102 0 0 0 100.0% AC ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Total General Plant $12,764,672 $0 $0 $0 $12,764,672 $0 $0 $0 Net Plant in Service $458,921,526 $233,445,916 $75,489,935 $81,268,699 $68,716,976 $0 $0 $0 Strength Related
Customer Related
Basis of Classification
DRAFT 08/12/2024 34 EXHIBIT 1
2192
City of Stockton
Wastewater Rate Study Page 1 of 15
Functionalization and Classification
of the Revenue Requirement
Exhibit 12.1
Weighted
Carbonaceous Bio- Suspended Actual Customer Revenue Direct Expenses Volume Chemical Demand Solids Customer Accounting Related Assign.

FY 2024-25 (VOL) (CBOD) (SS) (AC) (WCA) (RR) (DA)
Utility Billing
Employee Services
Utility BillingSalaries - Regular Salaries - Regular $1,050,049 $0 $0 $0 $1,050,049 $0 $0 $0 100.0% AC Utility BillingSalaries - Part Time/Temp Salaries - Part Time/Temp 21,036 0 0 0 21,036 0 0 0 100.0% AC Utility BillingRegular Overtime Regular Overtime 21,036 0 0 0 21,036 0 0 0 100.0% AC Utility BillingEmployee Separation Pay Employee Separation Pay 12,978 0 0 0 12,978 0 0 0 100.0% AC Utility BillingAdditional Pay Additional Pay 0 0 0 0 0 0 0 0 100.0% AC Utility BillingRetirement Retirement 304,138 0 0 0 304,138 0 0 0 100.0% AC Utility BillingMedicare Medicare 16,359 0 0 0 16,359 0 0 0 100.0% AC Utility BillingHealth/Dental/Vision Health/Dental/Vision 266,112 0 0 0 266,112 0 0 0 100.0% AC Utility BillingL/T Disability Insurance L/T Disability Insurance 6,618 0 0 0 6,618 0 0 0 100.0% AC Utility BillingLife Insurance Life Insurance 968 0 0 0 968 0 0 0 100.0% AC Utility BillingWorkers Compensation Workers Compensation 33,979 0 0 0 33,979 0 0 0 100.0% AC Utility BillingUnemployment Insurance Unemployment Insurance 1,166 0 0 0 1,166 0 0 0 100.0% AC Utility BillingCell Phone Allowance Cell Phone Allowance 1,407 0 0 0 1,407 0 0 0 100.0% AC Utility BillingRetirement Pension Bond Retirement Pension Bond 0 0 0 0 0 0 0 0 100.0% AC Utility BillingVacation Sell Back Vacation Sell Back 2,141 0 0 0 2,141 0 0 0 100.0% AC Utility Billing ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Utility BillingTotal Employee Services Total Employee Services $1,737,987 $0 $0 $0 $1,737,987 $0 $0 $0 Other Services
Utility BillingContractual Employees Contractual Employees $25,250 $0 $0 $0 $25,250 $0 $0 $0 100.0% AC Utility BillingMaint. & Repair Services Maint. & Repair Services 6,165 0 0 0 6,165 0 0 0 100.0% AC Utility BillingDuplication/Copy Costs Duplication/Copy Costs 12,726 0 0 0 12,726 0 0 0 100.0% AC Utility BillingInsurance Premiums Insurance Premiums 115,394 0 0 0 115,394 0 0 0 100.0% AC Utility BillingAutomotive Equip Rental Automotive Equip Rental 0 0 0 0 0 0 0 0 100.0% AC Utility BillingComputer/Tech/Oper Supprt Computer/Tech/Oper Supprt 110,187 0 0 0 110,187 0 0 0 100.0% AC Utility BillingTelephone Rental Telephone Rental 0 0 0 0 0 0 0 0 100.0% AC Utility BillingPublicity & Advertising Publicity & Advertising 2,398 0 0 0 2,398 0 0 0 100.0% AC Utility BillingPrinting & Mapping Printing & Mapping 86,577 0 0 0 86,577 0 0 0 100.0% AC Utility BillingPostage/Mailing Services Postage/Mailing Services 470,321 0 0 0 470,321 0 0 0 100.0% AC Utility BillingProcessing Fees Processing Fees 88,327 0 0 0 88,327 0 0 0 100.0% AC Utility BillingComputer/Programming Svcs Computer/Programming Svcs 3,333 0 0 0 3,333 0 0 0 100.0% AC Utility BillingOther Services Other Services 707,000 0 0 0 707,000 0 0 0 100.0% AC Utility Billing --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Utility BillingTotal Other Services Total Other Services $1,627,678 $0 $0 $0 $1,627,678 $0 $0 $0 Materials & Supplies
Utility BillingMaterials and Supplies Materials and Supplies $20,200 $0 $0 $0 $20,200 $0 $0 $0 100.0% AC Utility BillingComputer Software Computer Software 1,611 0 0 0 1,611 0 0 0 100.0% AC Utility BillingFuels-Gas/Oil/Propane Fuels-Gas/Oil/Propane 30,705 0 0 0 30,705 0 0 0 100.0% AC Utility Billing --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Utility BillingTotal Materials & Supplies Total Materials & Supplies $52,516 $0 $0 $0 $52,516 $0 $0 $0 Utility Billing
Other Expenses
Utility BillingTraining Training $0 $0 $0 $0 $0 $0 $0 $0 100.0% AC Utility BillingMeetings & Travel Meetings & Travel 1,515 0 0 0 1,515 0 0 0 100.0% AC Utility BillingMemberships Memberships 606 0 0 0 606 0 0 0 100.0% AC Utility BillingCar Mileage Reimbursement Car Mileage Reimbursement 606 0 0 0 606 0 0 0 100.0% AC Utility BillingCollection Costs Collection Costs 46,035 0 0 0 46,035 0 0 0 100.0% AC Utility BillingTelephone Telephone 909 0 0 0 909 0 0 0 100.0% AC Utility BillingTraining Services Training Services 9,090 0 0 0 9,090 0 0 0 100.0% AC Utility BillingSettlement Payments Settlement Payments 81,388 0 0 0 81,388 0 0 0 100.0% AC Utility Billing --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Utility BillingTotal Other Expenses Total Other Expenses $140,149 $0 $0 $0 $140,149 $0 $0 $0 Total Utility Billing Expenses $3,558,330 $0 $0 $0 $3,558,330 $0 $0 $0 Strength Related
Basis of Classification
Customer Related
DRAFT 08/12/2024 35 EXHIBIT 1
2193
City of Stockton
Wastewater Rate Study Page 2 of 15
Functionalization and Classification
of the Revenue Requirement
Exhibit 12.1
Weighted
Carbonaceous Bio- Suspended Actual Customer Revenue Direct Expenses Volume Chemical Demand Solids Customer Accounting Related Assign.

FY 2024-25 (VOL) (CBOD) (SS) (AC) (WCA) (RR) (DA)
Strength Related
Basis of Classification
Customer Related
Administration
Employee Services
AdministrationSalaries - Regular Salaries - Regular $793,842 $0 $0 $0 $793,842 $0 $0 $0 100.0% AC AdministrationSalaries - Part Time/Temp Salaries - Part Time/Temp 0 0 0 0 0 0 0 0 100.0% AC AdministrationRegular Overtime Regular Overtime 31,500 0 0 0 31,500 0 0 0 100.0% AC AdministrationEmployee Separation Pay Employee Separation Pay 9,811 0 0 0 9,811 0 0 0 100.0% AC AdministrationAdditional Pay Additional Pay 4,289 0 0 0 4,289 0 0 0 100.0% AC AdministrationRetirement Retirement 227,067 0 0 0 227,067 0 0 0 100.0% AC AdministrationMedicare Medicare 12,227 0 0 0 12,227 0 0 0 100.0% AC AdministrationHealth/Dental/Vision Health/Dental/Vision 137,592 0 0 0 137,592 0 0 0 100.0% AC AdministrationL/T Disability Insurance L/T Disability Insurance 5,018 0 0 0 5,018 0 0 0 100.0% AC AdministrationLife Insurance Life Insurance 529 0 0 0 529 0 0 0 100.0% AC AdministrationWorkers Compensation Workers Compensation 24,161 0 0 0 24,161 0 0 0 100.0% AC AdministrationUnemployment Insurance Unemployment Insurance 861 0 0 0 861 0 0 0 100.0% AC AdministrationCell Phone Allowance Cell Phone Allowance 2,079 0 0 0 2,079 0 0 0 100.0% AC AdministrationRetirement Pension Bond Retirement Pension Bond 0 0 0 0 0 0 0 0 100.0% AC Administration --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- AdministrationTotal Employee Services Total Employee Services $1,248,976 $0 $0 $0 $1,248,976 $0 $0 $0 Administration
Other Services
AdministrationTelephone Telephone $12,663 $0 $0 $0 $12,663 $0 $0 $0 100.0% AC AdministrationComputer/Tech/Operation Support Computer/Tech/Operation Support 53,574 0 0 0 53,574 0 0 0 100.0% AC AdministrationRadio Equipment Rental Radio Equipment Rental 1,649 0 0 0 1,649 0 0 0 100.0% AC AdministrationOther Rentals Other Rentals 1,846,980 0 0 0 1,846,980 0 0 0 100.0% AC AdministrationTelephone Rental Telephone Rental 0 0 0 0 0 0 0 0 100.0% AC AdministrationWater Water 0 0 0 0 0 0 0 0 100.0% AC
AdministrationStorm Water Storm Water 0 0 0 0 0 0 0 0 100.0% AC AdministrationMaint. & Repair Services Maint. & Repair Services 6,300 0 0 0 6,300 0 0 0 100.0% AC AdministrationUniform/Laundry Services Uniform/Laundry Services 1,890 0 0 0 1,890 0 0 0 100.0% AC AdministrationDuplication/Copy Costs Duplication/Copy Costs 630 0 0 0 630 0 0 0 100.0% AC AdministrationInsurance Premiums Insurance Premiums 86,390 0 0 0 86,390 0 0 0 100.0% AC AdministrationAutomotive Equip Rental Automotive Equip Rental 14,158 0 0 0 14,158 0 0 0 100.0% AC AdministrationPublicity & Advertising Publicity & Advertising 945 0 0 0 945 0 0 0 100.0% AC AdministrationPostage/Mailing Services Postage/Mailing Services 63 0 0 0 63 0 0 0 100.0% AC AdministrationProcessing Fees Processing Fees 7,500 0 0 0 7,500 0 0 0 100.0% AC AdministrationLegal Services Legal Services 0 0 0 0 0 0 0 0 100.0% AC AdministrationTraining Services Training Services 9,450 0 0 0 9,450 0 0 0 100.0% AC AdministrationProf & Special Services Prof & Special Services 87,255 0 0 0 87,255 0 0 0 100.0% AC AdministrationOther Services Other Services 0 0 0 0 0 0 0 0 100.0% AC AdministrationTesting and Analysis Services Testing and Analysis Services 315 0 0 0 315 0 0 0 100.0% AC AdministrationRecoverable Legal Expense Recoverable Legal Expense 31,500 0 0 0 31,500 0 0 0 100.0% AC Administration --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- AdministrationTotal Other Services Total Other Services $2,161,262 $0 $0 $0 $2,161,262 $0 $0 $0 Administration
Materials & Supplies
AdministrationMaterials and Supplies Materials and Supplies $18,900 $0 $0 $0 $18,900 $0 $0 $0 100.0% AC AdministrationComputer Software Computer Software 0 0 0 0 0 0 0 0 100.0% AC AdministrationFuels-Gas/Oil/Propane Fuels-Gas/Oil/Propane 0 0 0 0 0 0 0 0 100.0% AC AdministrationNon-Capital Assets Non-Capital Assets 15,750 0 0 0 15,750 0 0 0 100.0% AC Administration --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- AdministrationTotal Materials & Supplies Total Materials & Supplies $34,650 $0 $0 $0 $34,650 $0 $0 $0 Administration
Other Expenses
AdministrationTraining Training $0 $0 $0 $0 $0 $0 $0 $0 100.0% AC AdministrationMeetings & Travel Meetings & Travel 630 0 0 0 630 0 0 0 100.0% AC AdministrationMemberships Memberships 756 0 0 0 756 0 0 0 100.0% AC AdministrationIndirect Cost Allocation Indirect Cost Allocation 1,413,232 0 0 0 1,413,232 0 0 0 100.0% AC AdministrationCar Mileage Reimbursement Car Mileage Reimbursement 630 0 0 0 630 0 0 0 100.0% AC AdministrationSettlement Payments Settlement Payments 28,068 0 0 0 28,068 0 0 0 100.0% AC AdministrationVehicle Acquisition Vehicle Acquisition 31,500 0 0 0 31,500 0 0 0 100.0% AC AdministrationEquipment Acquisition Equipment Acquisition 0 0 0 0 0 0 0 0 100.0% AC Administration --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- AdministrationTotal Other Expenses Total Other Expenses $1,474,816 $0 $0 $0 $1,474,816 $0 $0 $0 Administration
Total Administration
DRAFT
$4,919,704 $0 $0 $0 $4,919,704 $0 $0 $0
08/12/2024 36 EXHIBIT 1
2194
City of Stockton
Wastewater Rate Study Page 3 of 15
Functionalization and Classification
of the Revenue Requirement
Exhibit 12.1
Weighted
Carbonaceous Bio- Suspended Actual Customer Revenue Direct Expenses Volume Chemical Demand Solids Customer Accounting Related Assign.

FY 2024-25 (VOL) (CBOD) (SS) (AC) (WCA) (RR) (DA)
Strength Related
Basis of Classification
Customer Related
Engineering Services
Employee Services
Engineering ServicesSalaries - Regular Salaries - Regular $1,183,613 $0 $0 $0 $1,183,613 $0 $0 $0 100.0% AC Engineering ServicesEmployee Separation Pay Employee Separation Pay 14,628 0 0 0 14,628 0 0 0 100.0% AC Engineering ServicesRetirement Retirement 338,273 0 0 0 338,273 0 0 0 100.0% AC Engineering ServicesMedicare Medicare 17,519 0 0 0 17,519 0 0 0 100.0% AC Engineering ServicesHealth/Dental/Vision Health/Dental/Vision 171,360 0 0 0 171,360 0 0 0 100.0% AC Engineering ServicesL/T Disability Insurance L/T Disability Insurance 7,455 0 0 0 7,455 0 0 0 100.0% AC Engineering ServicesLife Insurance Life Insurance 680 0 0 0 680 0 0 0 100.0% AC Engineering ServicesWorkers Compensation Workers Compensation 27,177 0 0 0 27,177 0 0 0 100.0% AC Engineering ServicesCell Phone Allowance Cell Phone Allowance 1,680 0 0 0 1,680 0 0 0 100.0% AC Engineering ServicesRegular Overtime Regular Overtime 3,500 0 0 0 3,500 0 0 0 100.0% AC Engineering ServicesAdditional Pay Additional Pay 5,390 0 0 0 5,390 0 0 0 100.0% AC Engineering ServicesUnemployment Insurance Unemployment Insurance 1,214 0 0 0 1,214 0 0 0 100.0% AC Engineering ServicesRetirement Pension Bond Retirement Pension Bond 0 0 0 0 0 0 0 0 100.0% AC Engineering ServicesVacation Sell Back Vacation Sell Back 2,414 0 0 0 2,414 0 0 0 100.0% AC --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Engineering ServicesTotal Employee Services Total Employee Services $1,774,903 $0 $0 $0 $1,774,903 $0 $0 $0 Engineering Services
Other Services
Engineering ServicesTelephone Telephone $2,800 $0 $0 $0 $2,800 $0 $0 $0 100.0% AC Engineering ServicesMaintenance & Repair Services Maintenance & Repair Services 0 0 0 0 0 0 0 0 100.0% AC Engineering ServicesDuplication/Copy Costs Duplication/Copy Costs 1,400 0 0 0 1,400 0 0 0 100.0% AC Engineering ServicesInsurance Premiums Insurance Premiums 124,341 0 0 0 124,341 0 0 0 100.0% AC Engineering ServicesAutomotive Equipment Rental Automotive Equipment Rental 0 0 0 0 0 0 0 0 100.0% AC Engineering ServicesComputer/Tech/Operation Support Computer/Tech/Operation Support 120,658 0 0 0 120,658 0 0 0 100.0% AC Engineering ServicesTelephone Rental Telephone Rental 0 0 0 0 0 0 0 0 100.0% AC Engineering ServicesPublicity & Advertising Publicity & Advertising 2,100 0 0 0 2,100 0 0 0 100.0% AC Engineering ServicesPrinting & Mapping Printing & Mapping 38,500 0 0 0 38,500 0 0 0 100.0% AC Engineering ServicesPostage/Mailing Services Postage/Mailing Services 350 0 0 0 350 0 0 0 100.0% AC Engineering ServicesProcessing Fees Processing Fees 770 0 0 0 770 0 0 0 100.0% AC Engineering ServicesUniform/Laundry Services Uniform/Laundry Services 560 0 0 0 560 0 0 0 100.0% AC Engineering ServicesOther Services Other Services 0 0 0 0 0 0 0 0 100.0% AC Engineering ServicesTesting and Analysis Services Testing and Analysis Services 0 0 0 0 0 0 0 0 100.0% AC Engineering ServicesProfessional and Special Services Professional and Special Services 280,000 0 0 0 280,000 0 0 0 100.0% AC Engineering ServicesRadio Equipment Rental Radio Equipment Rental 960 0 0 0 960 0 0 0 100.0% AC Engineering Services --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Engineering ServicesTotal Other Services Total Other Services $572,439 $0 $0 $0 $572,439 $0 $0 $0 Engineering Services
Materials & Supplies
Engineering ServicesMaterials & Supplies Materials & Supplies $10,500 $0 $0 $0 $10,500 $0 $0 $0 100.0% AC Engineering ServicesComputer Software Computer Software 14,000 0 0 0 14,000 0 0 0 100.0% AC Engineering ServicesSubscription - Periodical Subscription - Periodical 350 0 0 0 350 0 0 0 100.0% AC Engineering ServicesFuels - Gas/Oil/Propane Fuels - Gas/Oil/Propane 832 0 0 0 832 0 0 0 100.0% AC Engineering ServicesLibrary Materials Library Materials 3,500 0 0 0 3,500 0 0 0 100.0% AC Engineering ServicesNon-Capital Assets Non-Capital Assets 10,500 0 0 0 10,500 0 0 0 100.0% AC Engineering Services --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Engineering ServicesTotal Materials & Supplies Total Materials & Supplies $39,682 $0 $0 $0 $39,682 $0 $0 $0 Other Expenses
Engineering ServicesTraining Training $7,000 $0 $0 $0 $7,000 $0 $0 $0 100.0% AC Engineering ServicesMeetings & Travel Meetings & Travel 0 0 0 0 0 0 0 0 100.0% AC Engineering ServicesMemberships Memberships 1,750 0 0 0 1,750 0 0 0 100.0% AC Engineering ServicesCar Mileage Reimbursement Car Mileage Reimbursement 70 0 0 0 70 0 0 0 100.0% AC Engineering ServicesVehicle Acquisition Vehicle Acquisition 61,250 0 0 0 61,250 0 0 0 100.0% AC Engineering ServicesSettlement Payments Settlement Payments 41,816 0 0 0 41,816 0 0 0 100.0% AC Engineering Services --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Engineering ServicesTotal Other Expenses Total Other Expenses $111,886 $0 $0 $0 $111,886 $0 $0 $0 Total Engineering Services $2,498,910 $0 $0 $0 $2,498,910 $0 $0 $0 DRAFT 08/12/2024 37 EXHIBIT 1
2195
City of Stockton
Wastewater Rate Study Page 4 of 15
Functionalization and Classification
of the Revenue Requirement
Exhibit 12.1
Weighted
Carbonaceous Bio- Suspended Actual Customer Revenue Direct Expenses Volume Chemical Demand Solids Customer Accounting Related Assign.

FY 2024-25 (VOL) (CBOD) (SS) (AC) (WCA) (RR) (DA)
Strength Related
Basis of Classification
Customer Related
Treatment Operations
Employee Services
Treatment OperationsSalaries - Regular Salaries - Regular $2,411,498 $751,450 $672,811 $724,315 $262,922 $0 $0 $0 As Treatment Plant Treatment OperationsSalaries Part Time - Temp Salaries Part Time - Temp 48,000 14,957 13,392 14,417 5,233 0 0 0 As Treatment Plant Treatment OperationsRegular Overtime Regular Overtime 450,000 140,225 125,551 135,162 49,063 0 0 0 As Treatment Plant Treatment OperationsStand By Time (Call Back) Stand By Time (Call Back) 20,040 6,245 5,591 6,019 2,185 0 0 0 As Treatment Plant Treatment OperationsHoliday Pay Holiday Pay 93,000 28,980 25,947 27,933 10,140 0 0 0 As Treatment Plant Treatment OperationsEmployee Separation Pay Employee Separation Pay 29,804 9,287 8,315 8,952 3,249 0 0 0 As Treatment Plant Treatment OperationsAdditional Pay Additional Pay 12,000 3,739 3,348 3,604 1,308 0 0 0 As Treatment Plant Treatment OperationsRetirement Retirement 716,498 223,269 199,904 215,207 78,119 0 0 0 As Treatment Plant Treatment OperationsDeferred Compensation Deferred Compensation 110,020 34,283 30,696 33,046 11,995 0 0 0 As Treatment Plant Treatment OperationsMedicare Medicare 44,041 13,724 12,288 13,228 4,802 0 0 0 As Treatment Plant Treatment OperationsHealth/Dental/Vision Health/Dental/Vision 494,760 154,173 138,039 148,606 53,943 0 0 0 As Treatment Plant Treatment OperationsL/T Disability Insurance L/T Disability Insurance 15,212 4,740 4,244 4,569 1,659 0 0 0 As Treatment Plant Treatment OperationsLife Insurance Life Insurance 2,110 657 589 634 230 0 0 0 As Treatment Plant Treatment OperationsWorkers Compensation Workers Compensation 159,989 49,854 44,637 48,054 17,443 0 0 0 As Treatment Plant Treatment OperationsUnemployment Insurance Unemployment Insurance 3,276 1,021 914 984 357 0 0 0 As Treatment Plant Treatment OperationsCell Phone Allowance Cell Phone Allowance 3,660 1,140 1,021 1,099 399 0 0 0 As Treatment Plant Treatment OperationsVacation Sell Back Vacation Sell Back 1,619 504 452 486 177 0 0 0 As Treatment Plant Treatment Operations ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Treatment OperationsTotal Employee Services Total Employee Services $4,615,527 $1,438,250 $1,287,739 $1,386,315 $503,223 $0 $0 $0 Treatment Operations
Other Services
Treatment OperationsElectricity Electricity $6,245,288 $1,946,101 $1,742,444 $1,875,829 $680,913 $0 $0 $0 As Treatment Plant Treatment OperationsGas Gas 417,360 130,054 116,444 125,358 45,504 0 0 0 As Treatment Plant Treatment OperationsWater Water 475,000 148,015 132,526 142,671 51,788 0 0 0 As Treatment Plant Treatment OperationsTelephone Telephone 69,000 21,501 19,251 20,725 7,523 0 0 0 As Treatment Plant Treatment OperationsStormwater Stormwater 31,000 9,660 8,649 9,311 3,380 0 0 0 As Treatment Plant Treatment OperationsMaintenance & Repair Services Maintenance & Repair Services 2,000,000 623,222 558,003 600,718 218,057 0 0 0 As Treatment Plant Treatment OperationsUniform/Laundry Services Uniform/Laundry Services 50,000 15,581 13,950 15,018 5,451 0 0 0 As Treatment Plant Treatment OperationsDuplication/Copy Costs Duplication/Copy Costs 2,000 623 558 601 218 0 0 0 As Treatment Plant Treatment OperationsInsurance Premiums Insurance Premiums 304,092 94,758 84,842 91,337 33,155 0 0 0 As Treatment Plant Treatment OperationsAutomotive Equipment Rental Automotive Equipment Rental 47,480 14,795 13,247 14,261 5,177 0 0 0 As Treatment Plant Treatment OperationsComputer/Tech/Operation Support Computer/Tech/Operation Support 108,357 33,765 30,232 32,546 11,814 0 0 0 As Treatment Plant Treatment OperationsRadio Equipment Rental Radio Equipment Rental 26,624 8,296 7,428 7,997 2,903 0 0 0 As Treatment Plant Treatment OperationsOther Rentals Other Rentals 100,000 31,161 27,900 30,036 10,903 0 0 0 As Treatment Plant Treatment OperationsPool Vehicle Rental Pool Vehicle Rental 0 0 0 0 0 0 0 0 As Treatment Plant Treatment OperationsTelephone Rental Telephone Rental 0 0 0 0 0 0 0 0 As Treatment Plant Treatment OperationsPublicity & Advertising Publicity & Advertising 1,200 374 335 360 131 0 0 0 As Treatment Plant Treatment OperationsPostage/Mailing Services Postage/Mailing Services 500 156 140 150 55 0 0 0 As Treatment Plant Treatment OperationsProcessing Fees Processing Fees 708,000 220,621 197,533 212,654 77,192 0 0 0 As Treatment Plant Treatment OperationsTesting & Analysis Services Testing & Analysis Services 2,500 779 698 751 273 0 0 0 As Treatment Plant Treatment OperationsTraining Services Training Services 51,000 15,892 14,229 15,318 5,560 0 0 0 As Treatment Plant Treatment OperationsProfessional & Special Services Professional & Special Services 6,741,450 2,100,711 1,880,874 2,024,855 735,009 0 0 0 As Treatment Plant Treatment OperationsOther Services Other Services 0 0 0 0 0 0 0 0 As Treatment Plant Treatment OperationsLegal Services Legal Services 40,000 12,464 11,160 12,014 4,361 0 0 0 As Treatment Plant Treatment OperationsBuilding Repairs/Maint Building Repairs/Maint 0 0 0 0 0 0 0 0 As Treatment Plant Treatment OperationsSecurity & Alarm Services Security & Alarm Services 86,400 26,923 24,106 25,951 9,420 0 0 0 As Treatment Plant Treatment Operations ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Treatment OperationsTotal Other Services Total Other Services $17,507,251 $5,455,455 $4,884,548 $5,258,461 $1,908,787 $0 $0 $0 Treatment Operations
Materials & Supplies
Treatment OperationsMaterials & Supplies Materials & Supplies $250,000 $77,903 $69,750 $75,090 $27,257 $0 $0 $0 As Treatment Plant Treatment OperationsComputer Software Computer Software 1,000 312 279 300 109 0 0 0 As Treatment Plant Treatment OperationsSubscription-Periodical Subscription-Periodical 500 156 140 150 55 0 0 0 As Treatment Plant Treatment OperationsFuels - Gas/Oil/Propane Fuels - Gas/Oil/Propane 33,588 10,467 9,371 10,089 3,662 0 0 0 As Treatment Plant Treatment OperationsChemicals Chemicals 8,500,000 0 4,250,000 4,250,000 0 0 0 0 50.0% CBOD 50.0% SS Treatment OperationsLibrary Materials Library Materials 0 0 0 0 0 0 0 0 As Treatment Plant Treatment OperationsNon-Capital Assets Non-Capital Assets 1,015,000 316,285 283,186 304,864 110,664 0 0 0 As Treatment Plant Treatment Operations ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Treatment OperationsTotal Materials & Supplies Total Materials & Supplies $9,800,088 $405,122 $4,612,727 $4,640,493 $141,746 $0 $0 $0 Treatment Operations
Other Expenses
Treatment OperationsTraining Training $0 $0 $0 $0 $0 $0 $0 $0 As Treatment Plant Treatment OperationsMeetings & Travel Meetings & Travel 1,000 312 279 300 109 0 0 0 As Treatment Plant Treatment OperationsMemberships Memberships 150,000 46,742 41,850 45,054 16,354 0 0 0 As Treatment Plant Treatment OperationsTaxes Taxes 65,750 20,488 18,344 19,749 7,169 0 0 0 As Treatment Plant Treatment OperationsRetirement Expense Retirement Expense 289,303 90,150 80,716 86,895 31,542 0 0 0 As Treatment Plant Treatment OperationsCar Mileage Reimbursement Car Mileage Reimbursement 1,000 312 279 300 109 0 0 0 As Treatment Plant Treatment OperationsSettlement Payments Settlement Payments 85,298 26,580 23,798 25,620 9,300 0 0 0 As Treatment Plant Treatment OperationsVehicle Acquisition Vehicle Acquisition 282,500 88,030 78,818 84,851 30,801 0 0 0 As Treatment Plant Treatment OperationsEquipment Acquisition Equipment Acquisition 345,000 107,506 96,255 103,624 37,615 0 0 0 As Treatment Plant Treatment Operations ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Treatment OperationsTotal Other Expenses Total Other Expenses $1,219,851 $380,119 $340,340 $366,393 $132,998 $0 $0 $0 Treatment Operations
Total Treatment Operations $33,142,717 $7,678,946 $11,125,354 $11,651,663 $2,686,755 $0 $0 $0 DRAFT 08/12/2024 38 EXHIBIT 1
2196
City of Stockton
Wastewater Rate Study Page 5 of 15
Functionalization and Classification
of the Revenue Requirement
Exhibit 12.1
Weighted
Carbonaceous Bio- Suspended Actual Customer Revenue Direct Expenses Volume Chemical Demand Solids Customer Accounting Related Assign.

FY 2024-25 (VOL) (CBOD) (SS) (AC) (WCA) (RR) (DA)
Strength Related
Basis of Classification
Customer Related
Sanitary Sewer Collections
Employee Services
Sanitary Sewer CollectionsSalaries - Regular Salaries - Regular $2,999,402 $2,547,535 $0 $0 $451,867 $0 $0 $0 As Collection Plant Sanitary Sewer CollectionsSalaries Part Time - Temp Salaries Part Time - Temp 0 0 0 0 0 0 0 0 As Collection Plant Sanitary Sewer CollectionsRegular Overtime Regular Overtime 150,000 127,402 0 0 22,598 0 0 0 As Collection Plant Sanitary Sewer CollectionsStand By Time Stand By Time 40,000 33,974 0 0 6,026 0 0 0 As Collection Plant Sanitary Sewer CollectionsHoliday Pay Holiday Pay 6,500 5,521 0 0 979 0 0 0 As Collection Plant Sanitary Sewer CollectionsEmployee Separation Pay Employee Separation Pay 37,070 31,485 0 0 5,585 0 0 0 As Collection Plant Sanitary Sewer CollectionsAdditional Pay Additional Pay 34,925 29,663 0 0 5,262 0 0 0 As Collection Plant Sanitary Sewer CollectionsRetirement Retirement 858,100 728,825 0 0 129,275 0 0 0 As Collection Plant Sanitary Sewer CollectionsDeferred Compensation Deferred Compensation 148,674 126,276 0 0 22,398 0 0 0 As Collection Plant Sanitary Sewer CollectionsMedicare Medicare 46,864 39,804 0 0 7,060 0 0 0 As Collection Plant Sanitary Sewer CollectionsHealth/Dental/Vision Health/Dental/Vision 1,182,907 1,004,699 0 0 178,208 0 0 0 As Collection Plant Sanitary Sewer CollectionsL/T Disability Insurance L/T Disability Insurance 19,138 16,255 0 0 2,883 0 0 0 As Collection Plant Sanitary Sewer CollectionsLife Insurance Life Insurance 2,987 2,537 0 0 450 0 0 0 As Collection Plant Sanitary Sewer CollectionsWorkers Compensation Workers Compensation 210,825 179,064 0 0 31,761 0 0 0 As Collection Plant Sanitary Sewer CollectionsUnemployment Insurance Unemployment Insurance 3,310 2,811 0 0 499 0 0 0 As Collection Plant Sanitary Sewer CollectionsCell Phone Allowance Cell Phone Allowance 2,190 1,860 0 0 330 0 0 0 As Collection Plant Sanitary Sewer CollectionsVacation Sell Back Vacation Sell Back 6,116 5,195 0 0 921 0 0 0 As Collection Plant Sanitary Sewer Collections ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Sanitary Sewer CollectionsTotal Employee Services Total Employee Services $5,749,008 $4,882,906 $0 $0 $866,102 $0 $0 $0 Sanitary Sewer Collections
Other Services
Sanitary Sewer CollectionsTelephone Telephone $8,000 $6,795 $0 $0 $1,205 $0 $0 $0 As Collection Plant Sanitary Sewer CollectionsMaintenance & Repair Services Maintenance & Repair Services 2,528,000 2,147,151 0 0 380,849 0 0 0 As Collection Plant Sanitary Sewer CollectionsUniform/Laundry Services Uniform/Laundry Services 45,000 38,221 0 0 6,779 0 0 0 As Collection Plant Sanitary Sewer CollectionsDuplication/Copy Costs Duplication/Copy Costs 1,000 849 0 0 151 0 0 0 As Collection Plant Sanitary Sewer CollectionsInsurance Premiums Insurance Premiums 330,821 280,982 0 0 49,839 0 0 0 As Collection Plant Sanitary Sewer CollectionsAutomotive Equipment Rental Automotive Equipment Rental 443,366 376,572 0 0 66,794 0 0 0 As Collection Plant Sanitary Sewer CollectionsComputer/Tech/Operation Support Computer/Tech/Operation Support 165,931 140,933 0 0 24,998 0 0 0 As Collection Plant Sanitary Sewer CollectionsRadio Equipment Rental Radio Equipment Rental 55,261 46,936 0 0 8,325 0 0 0 As Collection Plant Sanitary Sewer CollectionsOther Rentals Other Rentals 35,000 29,727 0 0 5,273 0 0 0 As Collection Plant Sanitary Sewer CollectionsTelephone Rental Telephone Rental 0 0 0 0 0 0 0 0 As Collection Plant Sanitary Sewer CollectionsPublicity & Advertising Publicity & Advertising 1,000 849 0 0 151 0 0 0 As Collection Plant Sanitary Sewer CollectionsPostage/Mailing Services Postage/Mailing Services 6,000 5,096 0 0 904 0 0 0 As Collection Plant Sanitary Sewer CollectionsProcessing Fees Processing Fees 118,000 100,223 0 0 17,777 0 0 0 As Collection Plant Sanitary Sewer CollectionsTesting & Analysis Services Testing & Analysis Services 1,500 1,274 0 0 226 0 0 0 As Collection Plant Sanitary Sewer CollectionsTraining Services Training Services 40,000 33,974 0 0 6,026 0 0 0 As Collection Plant Sanitary Sewer CollectionsProfessional & Special Services Professional & Special Services 535,000 454,401 0 0 80,599 0 0 0 As Collection Plant Sanitary Sewer CollectionsOther Services Other Services 0 0 0 0 0 0 0 0 As Collection Plant Sanitary Sewer CollectionsElectricity Electricity 1,000 849 0 0 151 0 0 0 As Collection Plant Sanitary Sewer Collections ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Sanitary Sewer CollectionsTotal Other Services Total Other Services $4,314,879 $3,664,832 $0 $0 $650,047 $0 $0 $0 Sanitary Sewer Collections
Materials & Supplies
Sanitary Sewer CollectionsMaterials & Supplies Materials & Supplies $625,000 $530,842 $0 $0 $94,158 $0 $0 $0 As Collection Plant Sanitary Sewer CollectionsFuels - Gas/Oil/Propane Fuels - Gas/Oil/Propane 185,621 157,657 0 0 27,964 0 0 0 As Collection Plant Sanitary Sewer CollectionsChemicals Chemicals 1,500,000 1,274,021 0 0 225,979 0 0 0 As Collection Plant Sanitary Sewer CollectionsComputer Software Computer Software 7,000 5,945 0 0 1,055 0 0 0 As Collection Plant Sanitary Sewer CollectionsNon-Capital Assets Non-Capital Assets 250,000 212,337 0 0 37,663 0 0 0 As Collection Plant Sanitary Sewer Collections ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Sanitary Sewer CollectionsTotal Materials & Supplies Total Materials & Supplies $2,567,621 $2,180,803 $0 $0 $386,818 $0 $0 $0 Sanitary Sewer Collections
Other Expenses
Sanitary Sewer CollectionsTraining Training $0 $0 $0 $0 $0 $0 $0 $0 As Collection Plant Sanitary Sewer CollectionsMeetings & Travel Meetings & Travel 1,000 849 0 0 151 0 0 0 As Collection Plant Sanitary Sewer CollectionsMemberships Memberships 25,000 21,234 0 0 3,766 0 0 0 As Collection Plant Sanitary Sewer CollectionsRetirement Expense Retirement Expense 289,303 245,719 0 0 43,584 0 0 0 As Collection Plant Sanitary Sewer CollectionsVehicle Acquisition Vehicle Acquisition 1,400,000 1,189,087 0 0 210,913 0 0 0 As Collection Plant Sanitary Sewer CollectionsEquipment Acquisition Equipment Acquisition 0 0 0 0 0 0 0 0 As Collection Plant Sanitary Sewer CollectionsSettlement Payments Settlement Payments 105,845 89,899 0 0 15,946 0 0 0 As Collection Plant Sanitary Sewer Collections ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Sanitary Sewer CollectionsTotal Other Expenses Total Other Expenses $1,821,148 $1,546,788 $0 $0 $274,360 $0 $0 $0 Sanitary Sewer Collections Total Sanitary Sewer Collections
DRAFT
$14,452,656 $12,275,329 $0 $0 $2,177,327 $0 $0 $0
08/12/2024 39 EXHIBIT 1
2197
City of Stockton
Wastewater Rate Study Page 6 of 15
Functionalization and Classification
of the Revenue Requirement
Exhibit 12.1
Weighted
Carbonaceous Bio- Suspended Actual Customer Revenue Direct Expenses Volume Chemical Demand Solids Customer Accounting Related Assign.

FY 2024-25 (VOL) (CBOD) (SS) (AC) (WCA) (RR) (DA)
Strength Related
Basis of Classification
Customer Related
Laboratory
Employee Services
LaboratorySalaries - Regular Salaries - Regular $520,429 $0 $260,215 $260,215 $0 $0 $0 $0 50.0% CBOD 50.0% SS LaboratorySalaries Part Time - Temp Salaries Part Time - Temp 40,500 0 20,250 20,250 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryRegular Overtime Regular Overtime 3,600 0 1,800 1,800 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryHoliday Pay Holiday Pay 3,450 0 1,725 1,725 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryAdditional Pay Additional Pay 900 0 450 450 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryRetirement Retirement 149,300 0 74,650 74,650 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryDeferred Compensation Deferred Compensation 21,013 0 10,507 10,507 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryMedicare Medicare 8,242 0 4,121 4,121 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryHealth/Dental/Vision Health/Dental/Vision 112,140 0 56,070 56,070 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryL/T Disability Insurance L/T Disability Insurance 3,278 0 1,639 1,639 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryLife Insurance Life Insurance 475 0 238 238 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryWorkers Compensation Workers Compensation 12,785 0 6,393 6,393 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryUnemployment Insurance Unemployment Insurance 589 0 295 295 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryCell Phone Allowance Cell Phone Allowance 540 0 270 270 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryRetirement Pension Bond Retirement Pension Bond 0 0 0 0 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryEmployee Separation Pay Employee Separation Pay 6,432 0 3,216 3,216 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryVacation Sell Back Vacation Sell Back 1,061 0 531 531 0 0 0 0 50.0% CBOD 50.0% SS Laboratory ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- LaboratoryTotal Employee Services Total Employee Services $884,734 $0 $442,367 $442,367 $0 $0 $0 $0 Laboratory
Other Services
LaboratoryTelephone Telephone $1,875 $0 $938 $938 $0 $0 $0 $0 50.0% CBOD 50.0% SS LaboratoryMaintenance & Repair Services Maintenance & Repair Services 63,000 0 31,500 31,500 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryUniform/Laundry Services Uniform/Laundry Services 6,375 0 3,188 3,188 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryDuplication/Copy Costs Duplication/Copy Costs 375 0 188 188 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryInsurance Premiums Insurance Premiums 58,031 0 29,016 29,016 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryAutomotive Equipment Rental Automotive Equipment Rental 15,997 0 7,998 7,998 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryComputer/Tech/Operation Support Computer/Tech/Operation Support 39,293 0 19,647 19,647 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryRadio Equipment Rental Radio Equipment Rental 1,543 0 772 772 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryTelephone Rental Telephone Rental 0 0 0 0 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryPublicity & Advertising Publicity & Advertising 1,200 0 600 600 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryPostage/Mailing Services Postage/Mailing Services 225 0 113 113 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryProcessing Fees Processing Fees 42,375 0 21,188 21,188 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryTesting & Analysis Services Testing & Analysis Services 750 0 375 375 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryTraining Services Training Services 11,250 0 5,625 5,625 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryProfessional & Special Services Professional & Special Services 30,000 0 15,000 15,000 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryOther Services Other Services 0 0 0 0 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryLaboratory Service Laboratory Service 104,625 0 52,313 52,313 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryBuilding Repairs/Maint Building Repairs/Maint 1,875 0 938 938 0 0 0 0 50.0% CBOD 50.0% SS Laboratory ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- LaboratoryTotal Other Services Total Other Services $378,789 $0 $189,394 $189,394 $0 $0 $0 $0 Laboratory
Materials & Supplies
LaboratoryMaterials & Supplies Materials & Supplies $127,125 $0 $63,563 $63,563 $0 $0 $0 $0 50.0% CBOD 50.0% SS LaboratoryComputer Software Computer Software 118,875 0 59,438 59,438 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryFuels - Gas/Oil/Propane Fuels - Gas/Oil/Propane 2,625 0 1,313 1,313 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryChemicals Chemicals 75,000 0 37,500 37,500 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryLibrary Materials Library Materials 750 0 375 375 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryNon-Capital Assets Non-Capital Assets 7,500 0 3,750 3,750 0 0 0 0 50.0% CBOD 50.0% SS Laboratory ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- LaboratoryTotal Materials & Supplies Total Materials & Supplies $331,875 $0 $165,938 $165,938 $0 $0 $0 $0 Laboratory
Other Expenses
LaboratoryMemberships Memberships $2,513 $0 $1,257 $1,257 $0 $0 $0 $0 50.0% CBOD 50.0% SS LaboratoryMeetings & Travel Meetings & Travel 1,500 0 750 750 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryTraining Training 0 0 0 0 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryVehicle Acquisition Vehicle Acquisition 0 0 0 0 0 0 0 0 50.0% CBOD 50.0% SS LaboratoryEquipment Acquisition Equipment Acquisition 18,750 0 9,375 9,375 0 0 0 0 50.0% CBOD 50.0% SS LaboratorySettlement Payments Settlement Payments 18,334 0 9,167 9,167 0 0 0 0 50.0% CBOD 50.0% SS Laboratory ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- LaboratoryTotal Other Expenses Total Other Expenses $41,097 $0 $20,549 $20,549 $0 $0 $0 $0 Laboratory
Total Laboratory
DRAFT
$1,636,495 $0 $818,248 $818,248 $0 $0 $0 $0
08/12/2024 40 EXHIBIT 1
2198
City of Stockton
Wastewater Rate Study Page 7 of 15
Functionalization and Classification
of the Revenue Requirement
Exhibit 12.1
Weighted
Carbonaceous Bio- Suspended Actual Customer Revenue Direct Expenses Volume Chemical Demand Solids Customer Accounting Related Assign.

FY 2024-25 (VOL) (CBOD) (SS) (AC) (WCA) (RR) (DA)
Strength Related
Basis of Classification
Customer Related
Other Support Services
Employee Services
Other Support ServicesSalaries - Regular Salaries - Regular $707,156 $0 $0 $0 $707,156 $0 $0 $0 100.0% AC Other Support ServicesSalaries Part Time - Temp Salaries Part Time - Temp 0 0 0 0 0 0 0 0 100.0% AC Other Support ServicesRegular Overtime Regular Overtime 0 0 0 0 0 0 0 0 100.0% AC Other Support ServicesEmployee Separation Pay Employee Separation Pay 8,740 0 0 0 8,740 0 0 0 100.0% AC Other Support ServicesAdditional Pay Additional Pay 0 0 0 0 0 0 0 0 100.0% AC Other Support ServicesRetirement Retirement 202,116 0 0 0 202,116 0 0 0 100.0% AC Other Support ServicesDeferred Compensation Deferred Compensation 10,280 0 0 0 10,280 0 0 0 100.0% AC Other Support ServicesMedicare Medicare 9,725 0 0 0 9,725 0 0 0 100.0% AC Other Support ServicesHealth/Dental/Vision Health/Dental/Vision 118,742 0 0 0 118,742 0 0 0 100.0% AC Other Support ServicesL/T Disability Insurance L/T Disability Insurance 4,478 0 0 0 4,478 0 0 0 100.0% AC Other Support ServicesLife Insurance Life Insurance 462 0 0 0 462 0 0 0 100.0% AC Other Support ServicesWorkers Compensation Workers Compensation 23,032 0 0 0 23,032 0 0 0 100.0% AC Other Support ServicesUnemployment Insurance Unemployment Insurance 713 0 0 0 713 0 0 0 100.0% AC Other Support ServicesCell Phone Allowance Cell Phone Allowance 4,431 0 0 0 4,431 0 0 0 100.0% AC Other Support ServicesVacation Sell Back Vacation Sell Back 1,442 0 0 0 1,442 0 0 0 100.0% AC Other Support Services ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Other Support ServicesTotal Employee Services Total Employee Services $1,091,317 $0 $0 $0 $1,091,317 $0 $0 $0 Other Support Services
Other Services
Other Support ServicesInsurance Premiums Insurance Premiums $73,048 $0 $0 $0 $73,048 $0 $0 $0 100.0% AC Other Support ServicesProf & Special Services Prof & Special Services 128,895 0 0 0 128,895 0 0 0 100.0% AC Other Support Services ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Other Support ServicesTotal Other Services Total Other Services $201,943 $0 $0 $0 $201,943 $0 $0 $0 Materials & Supplies
Other Support ServicesMaterials & Supplies Materials & Supplies $0 $0 $0 $0 $0 $0 $0 $0 100.0% AC Other Support ServicesSettlement Payments Settlement Payments 24,984 0 0 0 24,984 0 0 0 100.0% AC Other Support Services ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Other Support ServicesTotal Materials & Supplies Total Materials & Supplies $24,984 $0 $0 $0 $24,984 $0 $0 $0 Total Other Support Services $1,318,244 $0 $0 $0 $1,318,244 $0 $0 $0 DRAFT 08/12/2024 41 EXHIBIT 1
2199
City of Stockton
Wastewater Rate Study Page 8 of 15
Functionalization and Classification
of the Revenue Requirement
Exhibit 12.1
Weighted
Carbonaceous Bio- Suspended Actual Customer Revenue Direct Expenses Volume Chemical Demand Solids Customer Accounting Related Assign.

FY 2024-25 (VOL) (CBOD) (SS) (AC) (WCA) (RR) (DA)
Strength Related
Basis of Classification
Customer Related
Environmental Control
Employee Services
Environmental ControlSalaries - Regular Salaries - Regular $475,417 $148,145 $132,642 $142,796 $51,834 $0 $0 $0 As Treatment Plant Environmental ControlRegular Overtime Regular Overtime 29,892 9,315 8,340 8,978 3,259 0 0 0 As Treatment Plant Environmental ControlStand By Time Stand By Time 42,342 13,194 11,814 12,718 4,617 0 0 0 As Treatment Plant Environmental ControlEmployee Separation Pay Employee Separation Pay 5,876 1,831 1,639 1,765 641 0 0 0 As Treatment Plant Environmental ControlAdditional Pay Additional Pay 13,992 4,360 3,904 4,203 1,526 0 0 0 As Treatment Plant Environmental ControlRetirement Retirement 140,027 43,634 39,068 42,058 15,267 0 0 0 As Treatment Plant Environmental ControlDeferred Compensation Deferred Compensation 21,772 6,784 6,074 6,539 2,374 0 0 0 As Treatment Plant Environmental ControlMedicare Medicare 8,541 2,661 2,383 2,565 931 0 0 0 As Treatment Plant Environmental ControlHealth/Dental/Vision Health/Dental/Vision 114,913 35,808 32,061 34,515 12,529 0 0 0 As Treatment Plant Environmental ControlL/T Disability Insurance L/T Disability Insurance 3,033 945 846 911 331 0 0 0 As Treatment Plant Environmental ControlLife Insurance Life Insurance 412 128 115 124 45 0 0 0 As Treatment Plant Environmental ControlWorkers Compensation Workers Compensation 14,998 4,674 4,184 4,505 1,635 0 0 0 As Treatment Plant Environmental ControlUnemployment Insurance Unemployment Insurance 621 194 173 187 68 0 0 0 As Treatment Plant Environmental ControlCell Phone Allowance Cell Phone Allowance 690 215 193 207 75 0 0 0 As Treatment Plant Environmental ControlRetirement Pension Bond Retirement Pension Bond 0 0 0 0 0 0 0 0 As Treatment Plant Environmental ControlHoliday Pay Holiday Pay 2,162 674 603 649 236 0 0 0 As Treatment Plant Environmental ControlPart-Time Salaries Part-Time Salaries 23,500 7,323 6,557 7,058 2,562 0 0 0 As Treatment Plant Environmental ControlPart-Time Salaries (2) Part-Time Salaries (2) 15,400 4,799 4,297 4,626 1,679 0 0 0 As Treatment Plant Environmental ControlVacation Sell Back Vacation Sell Back 969 302 270 291 106 0 0 0 As Treatment Plant Environmental Control ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Environmental ControlTotal Employee Services Total Employee Services $914,557 $284,986 $255,163 $274,696 $99,713 $0 $0 $0 Environmental Control
Other Services
Environmental ControlTelephone Telephone $6,599 $2,056 $1,841 $1,982 $719 $0 $0 $0 As Treatment Plant Environmental ControlMaintenance & Repair Services Maintenance & Repair Services 9,118 2,841 2,544 2,739 994 0 0 0 As Treatment Plant Environmental ControlUniform/Laundry Services Uniform/Laundry Services 3,948 1,230 1,101 1,186 430 0 0 0 As Treatment Plant Environmental ControlDuplication/Copy Costs Duplication/Copy Costs 2,350 732 656 706 256 0 0 0 As Treatment Plant Environmental ControlInsurance Premiums Insurance Premiums 58,687 18,288 16,374 17,627 6,399 0 0 0 As Treatment Plant Environmental ControlAutomotive Equipment Rental Automotive Equipment Rental 20,821 6,488 5,809 6,254 2,270 0 0 0 As Treatment Plant Environmental ControlComputer/Tech/Operation Support Computer/Tech/Operation Support 73,028 22,756 20,375 21,935 7,962 0 0 0 As Treatment Plant Environmental ControlRadio Equipment Rental Radio Equipment Rental 2,223 693 620 668 242 0 0 0 As Treatment Plant Environmental ControlPublicity & Advertising Publicity & Advertising 1,410 439 393 424 154 0 0 0 As Treatment Plant Environmental ControlPrinting & Mapping Printing & Mapping 0 0 0 0 0 0 0 0 As Treatment Plant Environmental ControlPostage/Mailing Services Postage/Mailing Services 2,350 732 656 706 256 0 0 0 As Treatment Plant Environmental ControlProcessing Fees Processing Fees 1,692 527 472 508 184 0 0 0 As Treatment Plant Environmental ControlTesting & Analysis Services Testing & Analysis Services 705 220 197 212 77 0 0 0 As Treatment Plant Environmental ControlTraining Services Training Services 15,510 4,833 4,327 4,659 1,691 0 0 0 As Treatment Plant Environmental ControlProfessional & Special Services Professional & Special Services 177,397 55,279 49,494 53,283 19,341 0 0 0 As Treatment Plant Environmental ControlOther Services Other Services 0 0 0 0 0 0 0 0 As Treatment Plant Environmental ControlLaboratory Services Laboratory Services 94,000 29,291 26,226 28,234 10,249 0 0 0 As Treatment Plant Environmental ControlSecurity & Alarm Services Security & Alarm Services 1,410 439 393 424 154 0 0 0 As Treatment Plant Environmental Control ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Environmental ControlTotal Other Services Total Other Services $471,248 $146,846 $131,479 $141,544 $51,379 $0 $0 $0 Environmental Control
Materials & Supplies
Environmental ControlMaterials & Supplies Materials & Supplies $18,800 $5,858 $5,245 $5,647 $2,050 $0 $0 $0 As Treatment Plant Environmental ControlComputer Software Computer Software 36,660 11,424 10,228 11,011 3,997 0 0 0 As Treatment Plant Environmental ControlFuels - Gas/Oil/Propane Fuels - Gas/Oil/Propane 10,707 3,336 2,987 3,216 1,167 0 0 0 As Treatment Plant Environmental ControlLibrary Materials Library Materials 1,880 586 525 565 205 0 0 0 As Treatment Plant Environmental ControlNon-Capital Assets Non-Capital Assets 8,460 2,636 2,360 2,541 922 0 0 0 As Treatment Plant Environmental Control ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Environmental ControlTotal Materials & Supplies Total Materials & Supplies $76,507 $23,841 $21,346 $22,980 $8,341 $0 $0 $0 Environmental Control
Other Expenses
Environmental ControlTraining Training $0 $0 $0 $0 $0 $0 $0 $0 As Treatment Plant Environmental ControlMeetings & Travel Meetings & Travel 564 176 157 169 61 0 0 0 As Treatment Plant Environmental ControlMemberships Memberships 2,021 630 564 607 220 0 0 0 As Treatment Plant Environmental ControlRetirement Expense Retirement Expense 31,156 9,709 8,693 9,358 3,397 0 0 0 As Treatment Plant Environmental ControlVehicle Acquisition Vehicle Acquisition 82,156 25,601 22,922 24,676 8,957 0 0 0 As Treatment Plant Environmental ControlSettlement Payments Settlement Payments 17,233 5,370 4,808 5,176 1,879 0 0 0 As Treatment Plant Environmental Control ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Environmental ControlTotal Other Expenses Total Other Expenses $133,130 $41,485 $37,143 $39,987 $14,515 $0 $0 $0 Environmental Control
Total Environmental Control DRAFT$1,595,443 $497,158 $445,131 $479,206 $173,948 $0 $0 $0 08/12/2024 42 EXHIBIT 1
2200
City of Stockton
Wastewater Rate Study Page 9 of 15
Functionalization and Classification
of the Revenue Requirement
Exhibit 12.1
Weighted
Carbonaceous Bio- Suspended Actual Customer Revenue Direct Expenses Volume Chemical Demand Solids Customer Accounting Related Assign.

FY 2024-25 (VOL) (CBOD) (SS) (AC) (WCA) (RR) (DA)
Strength Related
Basis of Classification
Customer Related
Treatment Plant Maintenance
Employee Services
Treatment Plant MaintenanceSalaries - Regular Salaries - Regular $1,640,625 $511,237 $457,737 $492,777 $178,875 $0 $0 $0 As Treatment Plant Treatment Plant MaintenanceRegular Overtime Regular Overtime 60,000 18,697 16,740 18,022 6,542 0 0 0 As Treatment Plant Treatment Plant MaintenanceStand By Time (Call Back) Stand By Time (Call Back) 30,100 9,379 8,398 9,041 3,282 0 0 0 As Treatment Plant Treatment Plant MaintenanceHoliday Pay Holiday Pay 2,000 623 558 601 218 0 0 0 As Treatment Plant Treatment Plant MaintenanceEmployee Separation Pay Employee Separation Pay 20,276 6,318 5,657 6,090 2,211 0 0 0 As Treatment Plant Treatment Plant MaintenanceAdditional Pay Additional Pay 7,739 2,412 2,159 2,324 844 0 0 0 As Treatment Plant Treatment Plant MaintenanceRetirement Retirement 476,406 148,453 132,918 143,093 51,942 0 0 0 As Treatment Plant Treatment Plant MaintenanceDeferred Compensation Deferred Compensation 88,387 27,542 24,660 26,548 9,637 0 0 0 As Treatment Plant Treatment Plant MaintenanceMedicare Medicare 25,193 7,850 7,029 7,567 2,747 0 0 0 As Treatment Plant Treatment Plant MaintenanceHealth/Dental/Vision Health/Dental/Vision 330,812 103,085 92,297 99,362 36,068 0 0 0 As Treatment Plant Treatment Plant MaintenanceL-T Disability Insurance L-T Disability Insurance 10,431 3,250 2,910 3,133 1,137 0 0 0 As Treatment Plant Treatment Plant MaintenanceLife Insurance Life Insurance 1,418 442 396 426 155 0 0 0 As Treatment Plant Treatment Plant MaintenanceWorkers' Compensation Workers' Compensation 121,256 37,785 33,831 36,420 13,220 0 0 0 As Treatment Plant Treatment Plant MaintenanceUnemployment Insurance Unemployment Insurance 1,769 551 494 531 193 0 0 0 As Treatment Plant Treatment Plant MaintenanceCell Phone Allowance Cell Phone Allowance 3,300 1,028 921 991 360 0 0 0 As Treatment Plant Treatment Plant MaintenanceVacation Sell Back Vacation Sell Back 4,918 1,533 1,372 1,477 536 0 0 0 As Treatment Plant Treatment Plant Maintenance ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Treatment Plant MaintenanceTotal Employee Services Total Employee Services $2,824,630 $880,186 $788,076 $848,403 $307,965 $0 $0 $0 Treatment Plant Maintenance
Other Services
Treatment Plant MaintenanceTelephone Telephone $11,000 $3,428 $3,069 $3,304 $1,199 $0 $0 $0 As Treatment Plant Treatment Plant MaintenanceMaint & Repair Services Maint & Repair Services 700,000 218,128 195,301 210,251 76,320 0 0 0 As Treatment Plant Treatment Plant MaintenanceUniform/Laundry Services Uniform/Laundry Services 21,000 6,544 5,859 6,308 2,290 0 0 0 As Treatment Plant Treatment Plant MaintenanceDuplicating/Copy Costs Duplicating/Copy Costs 1,000 312 279 300 109 0 0 0 As Treatment Plant Treatment Plant MaintenanceInsurance Premiums Insurance Premiums 178,117 55,503 49,695 53,499 19,420 0 0 0 As Treatment Plant Treatment Plant MaintenanceAutomotive Equip Rental Automotive Equip Rental 165,254 51,495 46,106 49,635 18,017 0 0 0 As Treatment Plant Treatment Plant MaintenanceComputer/Tech/Oper Supprt Computer/Tech/Oper Supprt 152,370 47,480 42,511 45,766 16,613 0 0 0 As Treatment Plant Treatment Plant MaintenanceRadio Equipment Rental Radio Equipment Rental 40,688 12,679 11,352 12,221 4,436 0 0 0 As Treatment Plant Treatment Plant MaintenanceOther Rentals Other Rentals 5,000 1,558 1,395 1,502 545 0 0 0 As Treatment Plant Treatment Plant MaintenanceTelephone Rental Telephone Rental 0 0 0 0 0 0 0 0 As Treatment Plant Treatment Plant MaintenancePublicity & Advertising Publicity & Advertising 1,000 312 279 300 109 0 0 0 As Treatment Plant Treatment Plant MaintenancePostage/Mailing Services Postage/Mailing Services 2,500 779 698 751 273 0 0 0 As Treatment Plant Treatment Plant MaintenanceLegal Services Legal Services 0 0 0 0 0 0 0 0 As Treatment Plant Treatment Plant MaintenanceEngineering Services Engineering Services 0 0 0 0 0 0 0 0 As Treatment Plant Treatment Plant MaintenanceTesting & Analysis Services Testing & Analysis Services 1,000 312 279 300 109 0 0 0 As Treatment Plant Treatment Plant MaintenanceProf & Special Services Prof & Special Services 37,000 11,530 10,323 11,113 4,034 0 0 0 As Treatment Plant Treatment Plant MaintenanceOther Services Other Services 0 0 0 0 0 0 0 0 As Treatment Plant Treatment Plant MaintenanceBuilding Repairs/Maint Building Repairs/Maint 15,000 4,674 4,185 4,505 1,635 0 0 0 As Treatment Plant Treatment Plant MaintenanceProcessing Fees Processing Fees 500 156 140 150 55 0 0 0 As Treatment Plant Treatment Plant MaintenanceVacation Sell Back (2) Vacation Sell Back (2) 3,346 1,043 934 1,005 365 0 0 0 As Treatment Plant Treatment Plant MaintenanceBuildings and Structures Buildings and Structures 250,000 77,903 69,750 75,090 27,257 0 0 0 As Treatment Plant Treatment Plant Maintenance ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Treatment Plant MaintenanceTotal Other Services Total Other Services $1,584,775 $493,834 $442,154 $476,001 $172,785 $0 $0 $0 Materials & Supplies
Treatment Plant MaintenanceMaterials & Supplies Materials & Supplies $900,000 $280,450 $251,101 $270,323 $98,126 $0 $0 $0 As Treatment Plant Treatment Plant MaintenanceFuels-Gas/Oil/Propane Fuels-Gas/Oil/Propane 106,078 33,055 29,596 31,862 11,566 0 0 0 As Treatment Plant Treatment Plant MaintenanceNon-Capital Assets (2) Non-Capital Assets (2) 525,000 163,596 146,476 157,688 57,240 0 0 0 As Treatment Plant Treatment Plant Maintenance ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Treatment Plant MaintenanceTotal Materials & Supplies Total Materials & Supplies $1,531,078 $477,101 $427,173 $459,873 $166,931 $0 $0 $0 Other Expenses
Treatment Plant MaintenanceTraining Training $5,000 $1,558 $1,395 $1,502 $545 $0 $0 $0 As Treatment Plant Treatment Plant MaintenanceMeetings & Travel Meetings & Travel 500 156 140 150 55 0 0 0 As Treatment Plant Treatment Plant MaintenanceRetirement Expense Retirement Expense 244,795 76,281 68,298 73,526 26,690 0 0 0 As Treatment Plant Treatment Plant MaintenanceVehicle Acquisition Vehicle Acquisition 265,000 82,577 73,935 79,595 28,893 0 0 0 As Treatment Plant Treatment Plant MaintenanceEquipment Acquisition Equipment Acquisition 110,102 34,309 30,719 33,070 12,004 0 0 0 As Treatment Plant Treatment Plant MaintenanceCapital Maintenance Capital Maintenance 300,000 93,483 83,700 90,108 32,709 0 0 0 As Treatment Plant Treatment Plant MaintenanceSettlement Payments Settlement Payments 58,819 18,329 16,411 17,667 6,413 0 0 0 As Treatment Plant Treatment Plant Maintenance ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Treatment Plant MaintenanceTotal Other Expenses Total Other Expenses $984,216 $306,693 $274,598 $295,618 $107,307 $0 $0 $0 Other Support Services
Total Treatment Plant Maintenance
DRAFT
$6,924,699 $2,157,814 $1,932,001 $2,079,896 $754,989 $0 $0 $0 08/12/2024 43 EXHIBIT 1
2201
City of Stockton
Wastewater Rate Study Page 10 of 15
Functionalization and Classification
of the Revenue Requirement
Exhibit 12.1
Weighted
Carbonaceous Bio- Suspended Actual Customer Revenue Direct Expenses Volume Chemical Demand Solids Customer Accounting Related Assign.

FY 2024-25 (VOL) (CBOD) (SS) (AC) (WCA) (RR) (DA)
Strength Related
Basis of Classification
Customer Related
Sanitary Pump Stations
Employee Services
Sanitary Pump StationsSalaries - Regular Salaries - Regular $1,481,488 $1,481,488 $0 $0 $0 $0 $0 $0 As Pump Stations Sanitary Pump StationsRegular Overtime Regular Overtime 60,000 60,000 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsStand By Time (Call Back) Stand By Time (Call Back) 22,600 22,600 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsHoliday Pay Holiday Pay 1,000 1,000 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsEmployee Separation Pay Employee Separation Pay 18,310 18,310 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsAdditional Pay Additional Pay 8,674 8,674 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsRetirement Retirement 424,024 424,024 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsDeferred Compensation Deferred Compensation 79,193 79,193 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsMedicare Medicare 22,690 22,690 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsHealth/Dental/Vision Health/Dental/Vision 271,111 271,111 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsL-T Disability Insurance L-T Disability Insurance 9,375 9,375 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsLife Insurance Life Insurance 1,155 1,155 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsWorkers' Compensation Workers' Compensation 108,927 108,927 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsUnemployment Insurance Unemployment Insurance 1,592 1,592 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsCell Phone Allowance Cell Phone Allowance 2,448 2,448 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsVacation Sell Back Vacation Sell Back 3,021 3,021 0 0 0 0 0 0 As Pump Stations Sanitary Pump Stations ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Sanitary Pump StationsTotal Employee Services Total Employee Services $2,515,608 $2,515,608 $0 $0 $0 $0 $0 $0 Treatment Plant Maintenance
Other Services
Sanitary Pump StationsElectricity Electricity $1,692,000 $1,692,000 $0 $0 $0 $0 $0 $0 As Pump Stations Sanitary Pump StationsGas Gas 16,920 16,920 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsWater Water 50,000 50,000 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsTelephone Telephone 12,500 12,500 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsStorm Water Storm Water 3,000 3,000 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsMaint. & Repair Services Maint. & Repair Services 400,000 400,000 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsDuplication/Copy Costs Duplication/Copy Costs 200 200 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsInsurance Premiums Insurance Premiums 160,244 160,244 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsAutomotive Equip Rental Automotive Equip Rental 89,576 89,576 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsComputer/Tech/Oper Supprt Computer/Tech/Oper Supprt 0 0 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsRadio Equipment Rental Radio Equipment Rental 0 0 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsOther Services Other Services 0 0 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsPool Vehicle Rental Pool Vehicle Rental 0 0 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsPrinting & Mapping Printing & Mapping 0 0 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsPostage/Mailing Services Postage/Mailing Services 2,500 2,500 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsProcessing Fees Processing Fees 8,000 8,000 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsTesting & Analysis Servcs Testing & Analysis Servcs 500 500 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsEngineering Services Engineering Services 0 0 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsProf & Special Services Prof & Special Services 24,000 24,000 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsPublicity & Advertising Publicity & Advertising 500 500 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsUniform/Laundry Services Uniform/Laundry Services 15,500 15,500 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsTelephone Rental Telephone Rental 58,538 58,538 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsBuilding Repairs/Maint Building Repairs/Maint 15,000 15,000 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsRent Rent 1,500 1,500 0 0 0 0 0 0 As Pump Stations Sanitary Pump Stations ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Sanitary Pump StationsTotal Other Services Total Other Services $2,550,478 $2,550,478 $0 $0 $0 $0 $0 $0 Materials & Supplies
Sanitary Pump StationsMaterials & Supplies Materials & Supplies $301,164 $301,164 $0 $0 $0 $0 $0 $0 As Pump Stations Sanitary Pump StationsFuels-Gas/Oil/Propane Fuels-Gas/Oil/Propane 0 0 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsNon-Capital Assets Non-Capital Assets 500,000 500,000 0 0 0 0 0 0 As Pump Stations Sanitary Pump Stations ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Sanitary Pump StationsTotal Materials & Supplies Total Materials & Supplies $801,164 $801,164 $0 $0 $0 $0 $0 $0 Sanitary Pump Stations
Other Expenses
Sanitary Pump StationsTraining Training $2,500 $2,500 $0 $0 $0 $0 $0 $0 As Pump Stations Sanitary Pump StationsTaxes Taxes 8,500 8,500 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsVehicle Acquisition Vehicle Acquisition 75,000 75,000 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsEquipment Acquisition Equipment Acquisition 0 0 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsSettlement Payments Settlement Payments 52,381 52,381 0 0 0 0 0 0 As Pump Stations Sanitary Pump StationsCapital Maintenance Capital Maintenance 75,000 75,000 0 0 0 0 0 0 As Pump Stations Sanitary Pump Stations ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Sanitary Pump StationsTotal Other Expenses Total Other Expenses $213,381 $213,381 $0 $0 $0 $0 $0 $0 Sanitary Pump Stations
Total Sanitary Pump Stations
DRAFT
$6,080,631 $6,080,631 $0 $0 $0 $0 $0 $0
08/12/2024 44 EXHIBIT 1
2202
City of Stockton
Wastewater Rate Study Page 11 of 15
Functionalization and Classification
of the Revenue Requirement
Exhibit 12.1
Weighted
Carbonaceous Bio- Suspended Actual Customer Revenue Direct Expenses Volume Chemical Demand Solids Customer Accounting Related Assign.

FY 2024-25 (VOL) (CBOD) (SS) (AC) (WCA) (RR) (DA)
Strength Related
Basis of Classification
Customer Related
Regulatory Compliance
Employee Services
Regulatory ComplianceSummary Account Summary Account $112,903 $0 $0 $0 $112,903 $0 $0 $0 100.0% AC Regulatory ComplianceRetirement Retirement 32,120 0 0 0 32,120 0 0 0 100.0% AC Regulatory ComplianceDeferred Compensation Deferred Compensation 0 0 0 0 0 0 0 0 100.0% AC Regulatory ComplianceMedicare/Social Security Medicare/Social Security 1,637 0 0 0 1,637 0 0 0 100.0% AC Regulatory ComplianceHealth/Dental/Vision Health/Dental/Vision 13,440 0 0 0 13,440 0 0 0 100.0% AC Regulatory ComplianceL/T Disability Insurance L/T Disability Insurance 712 0 0 0 712 0 0 0 100.0% AC Regulatory ComplianceLife Insurance Life Insurance 57 0 0 0 57 0 0 0 100.0% AC Regulatory ComplianceWorker's Compensation Worker's Compensation 2,506 0 0 0 2,506 0 0 0 100.0% AC Regulatory ComplianceUnemployment Insurance Unemployment Insurance 113 0 0 0 113 0 0 0 100.0% AC Regulatory ComplianceAllowances Allowances 0 0 0 0 0 0 0 0 100.0% AC Regulatory ComplianceInsurance Premiums Insurance Premiums 11,629 0 0 0 11,629 0 0 0 100.0% AC Regulatory Compliance ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Regulatory ComplianceTotal Employee Services Total Employee Services $175,117 $0 $0 $0 $175,117 $0 $0 $0 Other Services
Regulatory ComplianceProcessing Fees Processing Fees $0 $0 $0 $0 $0 $0 $0 $0 100.0% AC Regulatory ComplianceProf & Special Services Prof & Special Services 58,000 0 0 0 58,000 0 0 0 100.0% AC Regulatory ComplianceMaterials and Supplies Materials and Supplies 3,300 0 0 0 3,300 0 0 0 100.0% AC Regulatory ComplianceTraining Training 550 0 0 0 550 0 0 0 100.0% AC Regulatory ComplianceSummary Account (2) Summary Account (2) 3,500 0 0 0 3,500 0 0 0 100.0% AC Regulatory ComplianceDeferred Compensation (2) Deferred Compensation (2) 9 0 0 0 9 0 0 0 100.0% AC Regulatory ComplianceDeferred Compensation (3) Deferred Compensation (3) 48 0 0 0 48 0 0 0 100.0% AC Regulatory Compliance ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Regulatory ComplianceTotal Other Services Total Other Services $65,407 $0 $0 $0 $65,407 $0 $0 $0 Total Regulatory Compliance $240,524 $0 $0 $0 $240,524 $0 $0 $0 DRAFT 08/12/2024 45 EXHIBIT 1
2203
City of Stockton
Wastewater Rate Study Page 12 of 15
Functionalization and Classification
of the Revenue Requirement
Exhibit 12.1
Weighted
Carbonaceous Bio- Suspended Actual Customer Revenue Direct Expenses Volume Chemical Demand Solids Customer Accounting Related Assign.

FY 2024-25 (VOL) (CBOD) (SS) (AC) (WCA) (RR) (DA)
Strength Related
Basis of Classification
Customer Related
Safety Services
Employee Services
Safety ServicesSalaries - Regular Salaries - Regular $0 $0 $0 $0 $0 $0 $0 $0 100.0% AC Safety ServicesRegular Overtime Regular Overtime 0 0 0 0 0 0 0 0 100.0% AC Safety ServicesRetirement Retirement 33,657 0 0 0 33,657 0 0 0 100.0% AC Safety ServicesDeferred Compensation Deferred Compensation 2,392 0 0 0 2,392 0 0 0 100.0% AC Safety ServicesMedicare Medicare 1,722 0 0 0 1,722 0 0 0 100.0% AC Safety ServicesHealth/Dental/Vision Health/Dental/Vision 21,001 0 0 0 21,001 0 0 0 100.0% AC Safety ServicesL/T Disability Insurance L/T Disability Insurance 742 0 0 0 742 0 0 0 100.0% AC Safety ServicesLife Insurance Life Insurance 87 0 0 0 87 0 0 0 100.0% AC Safety ServicesWorkers Compensation Workers Compensation 3,664 0 0 0 3,664 0 0 0 100.0% AC Safety ServicesUnemployment Insurance Unemployment Insurance 118 0 0 0 118 0 0 0 100.0% AC Safety ServicesCell Phone Allowance Cell Phone Allowance 600 0 0 0 600 0 0 0 100.0% AC Safety ServicesSummary Account Summary Account 117,704 0 0 0 117,704 0 0 0 100.0% AC Safety ServicesEmployee Separation Pay Employee Separation Pay 1,455 0 0 0 1,455 0 0 0 100.0% AC Safety ServicesAdditional Pay Additional Pay 600 0 0 0 600 0 0 0 100.0% AC Safety ServicesVacation Sell Back Vacation Sell Back 240 0 0 0 240 0 0 0 100.0% AC Safety Services ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Safety ServicesTotal Employee Services Total Employee Services $183,982 $0 $0 $0 $183,982 $0 $0 $0 Safety Services
Other Services
Safety ServicesMaint. & Repair Services Maint. & Repair Services $1,500 $0 $0 $0 $1,500 $0 $0 $0 100.0% AC Safety ServicesUniform/Laundry Services Uniform/Laundry Services 200 0 0 0 200 0 0 0 100.0% AC Safety ServicesDuplication/Copy Costs Duplication/Copy Costs 1,750 0 0 0 1,750 0 0 0 100.0% AC Safety ServicesInsurance Premiums Insurance Premiums 12,258 0 0 0 12,258 0 0 0 100.0% AC Safety ServicesComputer/Tech/Oper Supprt Computer/Tech/Oper Supprt 44,004 0 0 0 44,004 0 0 0 100.0% AC Safety ServicesRadio Equipment Rental Radio Equipment Rental 1,309 0 0 0 1,309 0 0 0 100.0% AC Safety ServicesTelephone Rental Telephone Rental 0 0 0 0 0 0 0 0 100.0% AC Safety ServicesPostage/Mailing Services Postage/Mailing Services 175 0 0 0 175 0 0 0 100.0% AC Safety ServicesTraining Services Training Services 0 0 0 0 0 0 0 0 100.0% AC Safety ServicesProf & Special Services Prof & Special Services 0 0 0 0 0 0 0 0 100.0% AC Safety ServicesOther Services Other Services 0 0 0 0 0 0 0 0 100.0% AC Safety ServicesSummary Account (2) Summary Account (2) 50,000 0 0 0 50,000 0 0 0 100.0% AC Safety ServicesTelephone Telephone 250 0 0 0 250 0 0 0 100.0% AC Safety ServicesPublicity & Advertising Publicity & Advertising 500 0 0 0 500 0 0 0 100.0% AC Safety ServicesSecurity & Alarm Services Security & Alarm Services 180,000 0 0 0 180,000 0 0 0 100.0% AC Safety Services ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Safety ServicesTotal Other Services Total Other Services $291,946 $0 $0 $0 $291,946 $0 $0 $0 Materials & Supplies
Safety ServicesMaterials and Supplies Materials and Supplies $0 $0 $0 $0 $0 $0 $0 $0 100.0% AC Safety ServicesComputer Software Computer Software 6,000 0 0 0 6,000 0 0 0 100.0% AC Safety ServicesSubscription-Periodical Subscription-Periodical 0 0 0 0 0 0 0 0 100.0% AC Safety ServicesLibrary Materials Library Materials 0 0 0 0 0 0 0 0 100.0% AC Safety ServicesSummary Account (3) Summary Account (3) 30,000 0 0 0 30,000 0 0 0 100.0% AC Safety ServicesNon-Capital Assets Non-Capital Assets 2,000 0 0 0 2,000 0 0 0 100.0% AC Safety Services ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Safety ServicesTotal Materials & Supplies Total Materials & Supplies $38,000 $0 $0 $0 $38,000 $0 $0 $0 Other Expenses
Safety ServicesTraining Training $0 $0 $0 $0 $0 $0 $0 $0 100.0% AC Safety ServicesMemberships Memberships 150 0 0 0 150 0 0 0 100.0% AC Safety ServicesSummary Account (4) Summary Account (4) 2,500 0 0 0 2,500 0 0 0 100.0% AC Safety ServicesSettlement Payments Settlement Payments 4,160 0 0 0 4,160 0 0 0 100.0% AC Safety Services ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Safety ServicesTotal Other Expenses Total Other Expenses $6,810 $0 $0 $0 $6,810 $0 $0 $0 Safety Services
Total Safety Services $520,738 $0 $0 $0 $520,738 $0 $0 $0 DRAFT 08/12/2024 46 EXHIBIT 1
2204
City of Stockton
Wastewater Rate Study Page 13 of 15
Functionalization and Classification
of the Revenue Requirement
Exhibit 12.1
Weighted
Carbonaceous Bio- Suspended Actual Customer Revenue Direct Expenses Volume Chemical Demand Solids Customer Accounting Related Assign.

FY 2024-25 (VOL) (CBOD) (SS) (AC) (WCA) (RR) (DA)
Strength Related
Basis of Classification
Customer Related
SCADA Services
Employee Services
SCADA ServicesSalaries - Regular Salaries - Regular $0 $0 $0 $0 $0 $0 $0 $0 As Net Plant in Service SCADA ServicesRegular Overtime Regular Overtime 1,100 560 181 195 165 0 0 0 As Net Plant in Service SCADA ServicesRetirement Retirement 56,805 28,896 9,344 10,059 8,506 0 0 0 As Net Plant in Service SCADA ServicesMedicare Medicare 2,904 1,477 478 514 435 0 0 0 As Net Plant in Service SCADA ServicesHealth/Dental/Vision Health/Dental/Vision 28,728 14,613 4,726 5,087 4,302 0 0 0 As Net Plant in Service SCADA ServicesL/T Disability Insurance L/T Disability Insurance 1,256 639 207 222 188 0 0 0 As Net Plant in Service SCADA ServicesLife Insurance Life Insurance 110 56 18 19 16 0 0 0 As Net Plant in Service SCADA ServicesWorkers Compensation Workers Compensation 6,055 3,080 996 1,072 907 0 0 0 As Net Plant in Service SCADA ServicesUnemployment Insurance Unemployment Insurance 202 103 33 36 30 0 0 0 As Net Plant in Service SCADA ServicesCell Phone Allowance Cell Phone Allowance 0 0 0 0 0 0 0 0 As Net Plant in Service SCADA ServicesSummary Account Summary Account 199,509 101,487 32,818 35,330 29,874 0 0 0 As Net Plant in Service SCADA ServicesEmployee Separation Pay Employee Separation Pay 3,862 1,965 635 684 578 0 0 0 As Net Plant in Service SCADA ServicesVacation Sell Back Vacation Sell Back 407 207 67 72 61 0 0 0 As Net Plant in Service SCADA Services ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- SCADA ServicesTotal Employee Services Total Employee Services $300,938 $153,082 $49,503 $53,292 $45,061 $0 $0 $0 SCADA Services
Other Services
SCADA ServicesTelephone Telephone $18,700 $9,512 $3,076 $3,312 $2,800 $0 $0 $0 As Net Plant in Service SCADA ServicesInsurance Premiums Insurance Premiums 20,664 10,511 3,399 3,659 3,094 0 0 0 As Net Plant in Service SCADA ServicesComputer/Tech/Oper Supprt Computer/Tech/Oper Supprt 42,113 21,422 6,927 7,458 6,306 0 0 0 As Net Plant in Service SCADA ServicesTelephone Rental Telephone Rental 0 0 0 0 0 0 0 0 As Net Plant in Service SCADA ServicesProf & Special Services Prof & Special Services 0 0 0 0 0 0 0 0 As Net Plant in Service SCADA ServicesSummary Account (2) Summary Account (2) 49,500 25,180 8,142 8,766 7,412 0 0 0 As Net Plant in Service SCADA Services ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- SCADA ServicesTotal Other Services Total Other Services $130,977 $66,626 $21,545 $23,194 $19,612 $0 $0 $0 SCADA Services
Materials & Supplies
SCADA ServicesMaterials & Supplies Materials & Supplies $0 $0 $0 $0 $0 $0 $0 $0 As Net Plant in Service SCADA ServicesComputer Software Computer Software 110,000 55,955 18,094 19,479 16,471 0 0 0 As Net Plant in Service SCADA ServicesSummary Account (3) Summary Account (3) 2,750 1,399 452 487 412 0 0 0 As Net Plant in Service SCADA ServicesNon-Capital Assets Non-Capital Assets 165,000 83,933 27,142 29,219 24,706 0 0 0 As Net Plant in Service SCADA Services ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- SCADA ServicesTotal Materials & Supplies Total Materials & Supplies $277,750 $141,287 $45,688 $49,186 $41,589 $0 $0 $0 Other Expenses
SCADA ServicesMeetings & Travel Meetings & Travel $0 $0 $0 $0 $0 $0 $0 $0 As Net Plant in Service SCADA ServicesSummary Account (4) Summary Account (4) 2,750 1,399 452 487 412 0 0 0 As Net Plant in Service SCADA ServicesSettlement Payments Settlement Payments 7,022 3,572 1,155 1,243 1,051 0 0 0 As Net Plant in Service SCADA Services ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- SCADA ServicesTotal Other Expenses Total Other Expenses $9,772 $4,971 $1,607 $1,730 $1,463 $0 $0 $0 Total SCADA Services $719,437 $365,966 $118,343 $127,402 $107,725 $0 $0 $0 DRAFT 08/12/2024 47 EXHIBIT 1
2205
City of Stockton
Wastewater Rate Study Page 14 of 15
Functionalization and Classification
of the Revenue Requirement
Exhibit 12.1
Weighted
Carbonaceous Bio- Suspended Actual Customer Revenue Direct Expenses Volume Chemical Demand Solids Customer Accounting Related Assign.

FY 2024-25 (VOL) (CBOD) (SS) (AC) (WCA) (RR) (DA)
Strength Related
Basis of Classification
Customer Related
Outreach & Training Services
Employee Services
Outreach & Training ServicesRegular Overtime Regular Overtime $350 $0 $0 $0 $350 $0 $0 $0 100.0% AC Outreach & Training ServicesMedicare Medicare 639 0 0 0 639 0 0 0 100.0% AC Outreach & Training ServicesWorkers Compensation Workers Compensation 1,357 0 0 0 1,357 0 0 0 100.0% AC Outreach & Training ServicesSummary Account Summary Account 43,873 0 0 0 43,873 0 0 0 100.0% AC Outreach & Training ServicesEmployee Separation Pay Employee Separation Pay 542 0 0 0 542 0 0 0 100.0% AC Outreach & Training ServicesAdditional Pay Additional Pay 0 0 0 0 0 0 0 0 100.0% AC Outreach & Training ServicesRetirement Retirement 12,482 0 0 0 12,482 0 0 0 100.0% AC Outreach & Training ServicesHealth/Dental/Vision Health/Dental/Vision 5,880 0 0 0 5,880 0 0 0 100.0% AC Outreach & Training ServicesL/T Disability Insurance L/T Disability Insurance 276 0 0 0 276 0 0 0 100.0% AC Outreach & Training ServicesLife Insurance Life Insurance 25 0 0 0 25 0 0 0 100.0% AC Outreach & Training ServicesUnemployment Insurance Unemployment Insurance 44 0 0 0 44 0 0 0 100.0% AC Outreach & Training ServicesAllowances Allowances 210 0 0 0 210 0 0 0 100.0% AC Outreach & Training ServicesAdditional Pay (2) Additional Pay (2) 158 0 0 0 158 0 0 0 100.0% AC Outreach & Training ServicesVacation Sell Back Vacation Sell Back 90 0 0 0 90 0 0 0 100.0% AC Outreach & Training Services ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Outreach & Training ServicesTotal Employee Services Total Employee Services $65,926 $0 $0 $0 $65,926 $0 $0 $0 Other Services
Outreach & Training ServicesInsurance Premiums Insurance Premiums $4,557 $0 $0 $0 $4,557 $0 $0 $0 100.0% AC Outreach & Training ServicesPrinting & Mapping Printing & Mapping 0 0 0 0 0 0 0 0 100.0% AC Outreach & Training ServicesDuplication/Copy Costs Duplication/Copy Costs 15,000 0 0 0 15,000 0 0 0 100.0% AC Outreach & Training ServicesPublicity & Advertising Publicity & Advertising 35,000 0 0 0 35,000 0 0 0 100.0% AC Outreach & Training ServicesPostage/Mailing Services Postage/Mailing Services 60,000 0 0 0 60,000 0 0 0 100.0% AC Outreach & Training ServicesProcessing Fees Processing Fees 0 0 0 0 0 0 0 0 100.0% AC Outreach & Training ServicesTraining Services Training Services 1,000 0 0 0 1,000 0 0 0 100.0% AC Outreach & Training ServicesProf & Special Services Prof & Special Services 0 0 0 0 0 0 0 0 100.0% AC Outreach & Training ServicesComputer/Tech/Oper Supprt Computer/Tech/Oper Supprt 2,424 0 0 0 2,424 0 0 0 100.0% AC Outreach & Training Services ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Outreach & Training ServicesTotal Other Services Total Other Services $117,981 $0 $0 $0 $117,981 $0 $0 $0 Materials & Supplies
Outreach & Training ServicesComputer Software Computer Software $0 $0 $0 $0 $0 $0 $0 $0 100.0% AC Outreach & Training ServicesSubscription-Periodical Subscription-Periodical 90 0 0 0 90 0 0 0 100.0% AC Outreach & Training ServicesMaterials and Supplies Materials and Supplies 9,000 0 0 0 9,000 0 0 0 100.0% AC ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Outreach & Training ServicesTotal Materials & Supplies Total Materials & Supplies $9,090 $0 $0 $0 $9,090 $0 $0 $0 Other Expenses
Outreach & Training ServicesMeetings & Travel Meetings & Travel $200 $0 $0 $0 $200 $0 $0 $0 100.0% AC Outreach & Training ServicesMemberships Memberships 125 0 0 0 125 0 0 0 100.0% AC Outreach & Training ServicesTraining Training 0 0 0 0 0 0 0 0 100.0% AC Outreach & Training ServicesSettlement Payments Settlement Payments 1,543 0 0 0 1,543 0 0 0 100.0% AC ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Outreach & Training ServicesTotal Other Expenses Total Other Expenses $1,868 $0 $0 $0 $1,868 $0 $0 $0 Total Outreach & Training Services $194,865 $0 $0 $0 $194,865 $0 $0 $0 Total Operations & Maintenance $77,803,393 $29,055,843 $14,439,077 $15,156,415 $19,152,059 $0 $0 $0 DRAFT 08/12/2024 48 EXHIBIT 1
2206
City of Stockton
Wastewater Rate Study Page 15 of 15
Functionalization and Classification
of the Revenue Requirement
Exhibit 12.1
Weighted
Carbonaceous Bio- Suspended Actual Customer Revenue Direct Expenses Volume Chemical Demand Solids Customer Accounting Related Assign.

FY 2024-25 (VOL) (CBOD) (SS) (AC) (WCA) (RR) (DA)
Strength Related
Basis of Classification
Customer Related
Taxes & Transfers
Taxes & TransfersTaxes & Transfers $0 $0 $0 $0 $0 $0 $0 $0 100.0% RR ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Total Taxes & Transfers Total Taxes & Transfers $0 $0 $0 $0 $0 $0 $0 $0 Rate Funded Capital $16,000,000 $0 $0 $0 $16,000,000 $0 $0 $0 100.0% AC Debt Service
Wastewater Revenue Refunding Bonds, 2014 Revenue Bond Wastewater Revenue Refunding Bonds, 2014 Revenue Bond $6,698,250 $0 $0 $0 $6,698,250 $0 $0 $0 100.0% AC Regional Wastewater Facility Modification - N18126CA WIFIA Loan Regional Wastewater Facility Modification - N18126CA WIFIA Loan 1,296,000 0 0 0 1,296,000 0 0 0 100.0% AC Regional Wastewater Control Facilities (SRF) Regional Wastewater Control Facilities (SRF) 1,603,318 0 0 0 1,603,318 0 0 0 100.0% AC Assumed Future SRF Loan Assumed Future SRF Loan 0 0 0 0 0 0 0 0 100.0% AC Asssumed Revenue Bond Asssumed Revenue Bond 0 0 0 0 0 0 0 0 100.0% AC Additional Revenue Bond Additional Revenue Bond 0 0 0 0 0 0 0 0 100.0% AC ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Total Debt ServiceTotal Debt Service $9,597,568 $0 $0 $0 $9,597,568 $0 $0 $0 Less: Debt Service Funding Less: Debt Service Funding
Connection Fees (434 Fund) Connection Fees (434 Fund) $2,095,736 $0 $0 $0 $2,095,736 $0 $0 $0 As Debt Bond Defeasance (431 Fund) Bond Defeasance (431 Fund) 0 0 0 0 0 0 0 0 As Debt Bond Defeasance (434 Fund) Bond Defeasance (434 Fund) 0 0 0 0 0 0 0 0 As Debt ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Total Less Debt Service Funding Total Less Debt Service Funding $2,095,736 $0 $0 $0 $2,095,736 $0 $0 $0 Net Debt ServiceNet Debt Service $7,501,832 $0 $0 $0 $7,501,832 $0 $0 $0 To / (From) Reserves
Operating Fund - Sewer (431) Operating Fund - Sewer (431) ($4,842,874) ($4,842,874) $0 $0 $0 $0 $0 $0 100.0% VOL Capital Fund - Sewer Capital Fund - Sewer 0 0 0 0 0 0 0 0 100.0% AC Rate Stabilization Fund - Sewer (438) Rate Stabilization Fund - Sewer (438) 0 0 0 0 0 0 0 0 100.0% AC ---------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- ----------------- Total To / (From) Reserves Total To / (From) Reserves ($4,842,874) ($4,842,874) $0 $0 $0 $0 $0 $0 Total Revenue Requirement $96,462,351 $24,212,969 $14,439,077 $15,156,415 $42,653,891 $0 $0 $0 Less: Other Revenues
Fats, Oils, Grease Inspection Fats, Oils, Grease Inspection $44,311 $13,808 $12,363 $13,309 $4,831 $0 $0 $0 As Treatment Plant Interest IncomeInterest Income 843,714 211,780 126,292 132,566 373,075 0 0 0 As Net Revenue Requirement Service PenaltiesService Penalties 1,478,664 371,159 221,336 232,332 653,838 0 0 0 As Net Revenue Requirement Lien Admin FeesLien Admin Fees 100,000 25,101 14,969 15,712 44,218 0 0 0 As Net Revenue Requirement Pre-Treatment Violations Pre-Treatment Violations 60,291 15,134 9,025 9,473 26,660 0 0 0 As Net Revenue Requirement Returned Check Fees Returned Check Fees 1,005 252 150 158 444 0 0 0 As Net Revenue Requirement Other Revenue Other Revenue 45,225 11,352 6,770 7,106 19,998 0 0 0 As Net Revenue Requirement Program RevenueProgram Revenue 2,513 631 376 395 1,111 0 0 0 As Net Revenue Requirement Refunds and Reimbursements Refunds and Reimbursements 30,150 7,568 4,513 4,737 13,332 0 0 0 As Net Revenue Requirement Mapping Fee Mapping Fee 6,442 1,617 964 1,012 2,849 0 0 0 As Net Revenue Requirement Permit Center Operations Permit Center Operations 46,744 11,733 6,997 7,344 20,669 0 0 0 As Net Revenue Requirement Plan Check FeesPlan Check Fees 10,050 2,523 1,504 1,579 4,444 0 0 0 As Net Revenue Requirement Wastewater Hauler Wastewater Hauler 0 0 0 0 0 0 0 0 As Net Revenue Requirement --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Total Other Revenues Total Other Revenues $2,669,108 $672,657 $405,259 $425,724 $1,165,468 $0 $0 $0 Net Revenue Requirement $93,793,243 $23,540,312 $14,033,818 $14,730,690 $41,488,422 $0 $0 $0 DRAFT 08/12/2024 49 EXHIBIT 1
2207
City of Stockton
Wastewater Rate Study
Distribution of Revenue Requirement
Exhibit 13
ResidentialSingle Family & Condo ResidentialMulti-Family ResidentialApartments Commercial/InstitutionalLow Strength Commercial/InstitutionalMedium Strength Commercial/InstitutionalHigh Strength Commercial/InstitutionalSchools Industrial Net Revenue Basis of
Requirement Industrial Allocation
Volume $23,540,312 $14,711,197 $1,276,103 $3,200,444 $154,008 $1,565,357 $569,356 $422,275 $1,641,573 (VOL) Strength
Carbonaceous Biochemical Oxygen Demand $14,033,818 $7,930,152 $687,890 $1,725,217 $83,019 $1,104,630 $585,928 $227,630 $1,689,352 (CBOD) Suspended Solids 14,730,690 8,594,773 745,542 1,869,806 89,977 1,113,855 533,072 246,707 1,536,958 (SS) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Strength $28,764,508 $16,524,926 $1,433,432 $3,595,023 $172,995 $2,218,485 $1,119,000 $474,337 $3,226,310 Customer
Actual Customer $41,488,422 $27,599,576 $2,829,376 $9,757,036 $66,513 $1,052,993 $144,883 $29,705 $8,341 (AC) Weighted for Cust. Acctg. 0 0 0 0 0 0 0 0 0 (WCA)
---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Customer Related $41,488,422 $27,599,576 $2,829,376 $9,757,036 $66,513 $1,052,993 $144,883 $29,705 $8,341 Revenue Related $0 $0 $0 $0 $0 $0 $0 $0 $0 (RR)
Direct Assign. $0 $0 $0 $0 $0 $0 $0 $0 $0 (DA)
Net Revenue Requirement $93,793,243 $58,835,699 $5,538,911 $16,552,503 $393,516 $4,836,835 $1,833,239 $926,317 $4,876,223 Residential Commercial/Institutional
High Strength
Medium
Multi-Family Apartments Low Strength Strength
Single Family
& Condo Schools
DRAFT 08/12/2024 50 EXHIBIT 1
2208
City of Stockton
Wastewater Rate Study
Summary of Cost of Service Analysis
Exhibit 14
FY 2024-25
Expenses
Revenues at Present Rates $91,654,635 $57,144,290 $5,495,976 $16,548,040 $372,425 $4,806,833 $1,895,325 $932,940 $4,458,805 Allocated Revenue Requirement $93,793,243 $58,835,699 $5,538,911 $16,552,503 $393,516 $4,836,835 $1,833,239 $926,317 $4,876,223 ---------------- ---------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Bal / (Def) of Funds ($2,138,608) ($1,691,408) ($42,935) ($4,463) ($21,091) ($30,002) $62,086 $6,623 ($417,418) Required % Change in Rates 2.3% 3.0% 0.8% 0.0% 5.7% 0.6% -3.3% -0.7% 9.4% High Strength Schools Industrial
Medium
Multi-Family Strength
Single Family
& Condo Apartments Low Strength
Residential Commercial/Institutional
DRAFT 08/12/2024 51 EXHIBIT 1
2209
City of Stockton
Wastewater Rate Study
Average Unit Costs
Exhibit 15
Total Industrial
Volume - $ / CCF $1.55 $1.61 $1.61 $1.61 $1.13 $1.14 $1.49 $0.61 $1.45 CBOD - $ / CCF 0.93 0.87 0.87 0.87 0.61 0.80 1.53 0.33 1.50 SS - $ / CCF 0.97 0.94 0.94 0.94 0.66 0.81 1.40 0.36 1.36 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Total - $ / CCF $3.45 $3.43 $3.43 $3.43 $2.40 $2.75 $4.42 $1.29 $4.31 Customer - $ / Cust $26.91 $26.91 $26.91 $26.91 $26.91 $26.91 Total - $ / Cust $60.83 $57.36 $52.67 $45.65
Total - $ / CCF $6.18 $6.46 $7.01 $8.35 $2.89 $3.52 $4.80 $3.54 $4.32 Current Average Revenues $6.04 $6.27 $6.96 $8.35 $2.73 $3.50 $4.96 $3.57 $3.95 Customer Data
Volume 15,166,003 9,109,792 790,216 1,981,849 136,240 1,375,032 381,904 261,491 1,129,479 Customer 128,496 85,480 8,763 30,219 206 3,261 449 92 26 ADA 57,886 57,886
High Strength Schools
Single Family
& Condo Multi-Family Apartments Low Strength
Medium
Strength
Residential Commercial/Institutional
DRAFT 08/12/2024 52 EXHIBIT 1
2210
City of Stockton
Wastewater Rate Study
Residential
Present
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Base Charge
Single Family & Condo
City Customer $55.68 $57.36 $59.65 $62.04 $64.52 $67.10 Non-City Customer 50.77 52.30 54.39 56.57 58.83 61.18
Multi-Family
City Customer $52.45 $52.86 $54.97 $57.17 $59.46 $61.84 Non-City Customer 47.05 47.42 49.32 51.29 53.34 55.47
Apartments
City Customer $47.57 $47.57 $49.47 $51.45 $53.51 $55.65 Non-City Customer 41.75 41.75 43.42 45.16 46.97 48.85
Proposed
DRAFT 08/12/2024 53 EXHIBIT 1
2211
Consumption Present Proposed
(CCF) Rates Rates $ %
City Customer
0 $55.68 $57.36 $1.68 3.0%
2 55.68 57.36 1.68 3.0%
4 55.68 57.36 1.68 3.0%
6 55.68 57.36 1.68 3.0%
8 55.68 57.36 1.68 3.0%
10 55.68 57.36 1.68 3.0%
12 55.68 57.36 1.68 3.0%
14 55.68 57.36 1.68 3.0%
16 55.68 57.36 1.68 3.0%
Non-City Customer
0 $50.77 $52.30 $1.53 3.0%
2 50.77 52.30 1.53 3.0%
4 50.77 52.30 1.53 3.0%
6 50.77 52.30 1.53 3.0%
8 50.77 52.30 1.53 3.0%
10 50.77 52.30 1.53 3.0%
12 50.77 52.30 1.53 3.0%
14 50.77 52.30 1.53 3.0%
16 50.77 52.30 1.53 3.0%
Base Charge $ / Acct. Base Charge $ / Acct.

City Customer $55.68 City Customer $57.36
Non-City Customer 50.77 Non-City Customer 52.30
Consumption Charge $ / CCF Consumption Charge $ / CCF
Consumption $0.00 Consumption $0.00
Difference
Present Rates
City of Stockton
Wastewater Rate Study
Single Family & Condo - Year 1 Rates
Year 1 Rates
DRAFT 08/12/2024 54 EXHIBIT 1
2212
Consumption Present Proposed
(CCF) Rates Rates $ %
City Customer
0 $52.45 $52.86 $0.41 0.8%
5 52.45 52.86 0.41 0.8%
10 52.45 52.86 0.41 0.8%
15 52.45 52.86 0.41 0.8%
20 52.45 52.86 0.41 0.8%
25 52.45 52.86 0.41 0.8%
30 52.45 52.86 0.41 0.8%
35 52.45 52.86 0.41 0.8%
40 52.45 52.86 0.41 0.8%
Non-City Customer
0 $47.05 $47.42 $0.37 0.8%
5 47.05 47.42 0.37 0.8%
10 47.05 47.42 0.37 0.8%
15 47.05 47.42 0.37 0.8%
20 47.05 47.42 0.37 0.8%
25 47.05 47.42 0.37 0.8%
30 47.05 47.42 0.37 0.8%
35 47.05 47.42 0.37 0.8%
40 47.05 47.42 0.37 0.8%
Base Charge $ / Acct. Base Charge $ / Acct.

City Customer $52.45 City Customer $52.86
Non-City Customer 47.05 Non-City Customer 47.42
Consumption Charge $ / CCF Consumption Charge $ / CCF
Consumption $0.00 Consumption $0.00
Present Rates Year 1 Rates
City of Stockton
Wastewater Rate Study
Multi-Family - Year 1 Rates
Difference
DRAFT 08/12/2024 55 EXHIBIT 1
2213
Consumption Present Proposed
(CCF) Rates Rates $ %
City Customer
0 $47.57 $47.57 $0.00 0.0%
5 47.57 47.57 0.00 0.0%
10 47.57 47.57 0.00 0.0%
15 47.57 47.57 0.00 0.0%
20 47.57 47.57 0.00 0.0%
25 47.57 47.57 0.00 0.0%
30 47.57 47.57 0.00 0.0%
35 47.57 47.57 0.00 0.0%
40 47.57 47.57 0.00 0.0%
Non-City Customer
0 $41.75 $41.75 $0.00 0.0%
5 41.75 41.75 0.00 0.0%
10 41.75 41.75 0.00 0.0%
15 41.75 41.75 0.00 0.0%
20 41.75 41.75 0.00 0.0%
25 41.75 41.75 0.00 0.0%
30 41.75 41.75 0.00 0.0%
35 41.75 41.75 0.00 0.0%
40 41.75 41.75 0.00 0.0%
Base Charge $ / Acct. Base Charge $ / Acct.

City Customer $47.57 City Customer $47.57
Non-City Customer 41.75 Non-City Customer 41.75
Consumption Charge $ / CCF Consumption Charge $ / CCF
Consumption $0.00 Consumption $0.00
Present Rates Year 1 Rates
City of Stockton
Wastewater Rate Study
Apartments - Year 1 Rates
Difference
DRAFT 08/12/2024 56 EXHIBIT 1
2214
City of Stockton
Wastewater Rate Study
Commercial/Institutional
Present
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Base Charge
City Customer $26.83 $26.91 $27.99 $29.11 $30.27 $31.48 Non-City Customer 23.56 23.63 24.58 25.56 26.58 27.64
Consumption Charge
Com / Inst - Low Strength $2.22 $2.40 $2.50 $2.60 $2.70 $2.81 Com / Inst - Medium Strength 2.70 2.75 2.86 2.97 3.09 3.21 Com / Inst - High Strength 4.54 4.42 4.60 4.78 4.97 5.17 Schools ($ / ADA) 1.30 1.29 1.34 1.39 1.45 1.51
Proposed
DRAFT 08/12/2024 57 EXHIBIT 1
2215
Consumption Present Proposed
(CCF) Rates Rates $ %
City Customer
0 $26.83 $26.91 $0.08 0.3%
10 49.03 50.91 1.88 3.8%
20 71.23 74.91 3.68 5.2%
30 93.43 98.91 5.48 5.9%
40 115.63 122.91 7.28 6.3%
50 137.83 146.91 9.08 6.6%
60 160.03 170.91 10.88 6.8%
70 182.23 194.91 12.68 7.0%
80 204.43 218.91 14.48 7.1%
Non-City Customer
0 $23.56 $23.63 $0.07 0.3%
10 45.76 47.63 1.87 4.1%
20 67.96 71.63 3.67 5.4%
30 90.16 95.63 5.47 6.1%
40 112.36 119.63 7.27 6.5%
50 134.56 143.63 9.07 6.7%
60 156.76 167.63 10.87 6.9%
70 178.96 191.63 12.67 7.1%
80 201.16 215.63 14.47 7.2%
Base Charge $ / Acct. Base Charge $ / Acct.

City Customer $26.83 City Customer $26.91
Non-City Customer 23.56 Non-City Customer 23.63
Consumption $ / CCF Consumption $ / CCF
Consumption $2.22 Consumption $2.40
Present Rates
Difference
City of Stockton
Wastewater Rate Study
Com / Inst - Low Strength - Year 1 Rates
Proposed Rates
DRAFT 08/12/2024 58 EXHIBIT 1
2216
Consumption Present Proposed
(CCF) Rates Rates $ %
City Customer
0 $26.83 $26.91 $0.08 0.3%
10 53.83 54.41 0.58 1.1%
20 80.83 81.91 1.08 1.3%
30 107.83 109.41 1.58 1.5%
40 134.83 136.91 2.08 1.5%
50 161.83 164.41 2.58 1.6%
60 188.83 191.91 3.08 1.6%
70 215.83 219.41 3.58 1.7%
80 242.83 246.91 4.08 1.7%
Non-City Customer
0 $23.56 $23.63 $0.07 0.3%
10 50.56 51.13 0.57 1.1%
20 77.56 78.63 1.07 1.4%
30 104.56 106.13 1.57 1.5%
40 131.56 133.63 2.07 1.6%
50 158.56 161.13 2.57 1.6%
60 185.56 188.63 3.07 1.7%
70 212.56 216.13 3.57 1.7%
80 239.56 243.63 4.07 1.7%
Base Charge $ / Acct. Base Charge $ / Acct.

City Customer $26.83 City Customer $26.91
Non-City Customer 23.56 Non-City Customer 23.63
Consumption $ / CCF Consumption $ / CCF
Consumption $2.70 Consumption $2.75
Present Rates Proposed Rates
City of Stockton
Wastewater Rate Study
Com / Inst - Medium Strength - Year 1 Rates
Difference
DRAFT 08/12/2024 59 EXHIBIT 1
2217
Consumption Present Proposed
(CCF) Rates Rates $ %
City Customer
0 $26.83 $26.91 $0.08 0.3%
15 94.93 93.21 (1.72) -1.8%
30 163.03 159.51 (3.52) -2.2%
45 231.13 225.81 (5.32) -2.3%
60 299.23 292.11 (7.12) -2.4%
75 367.33 358.41 (8.92) -2.4%
90 435.43 424.71 (10.72) -2.5%
105 503.53 491.01 (12.52) -2.5%
120 571.63 557.31 (14.32) -2.5%
Non-City Customer
0 $23.56 $23.63 $0.07 0.3%
15 91.66 89.93 (1.73) -1.9%
30 159.76 156.23 (3.53) -2.2%
45 227.86 222.53 (5.33) -2.3%
60 295.96 288.83 (7.13) -2.4%
75 364.06 355.13 (8.93) -2.5%
90 432.16 421.43 (10.73) -2.5%
105 500.26 487.73 (12.53) -2.5%
120 568.36 554.03 (14.33) -2.5%
Base Charge $ / Acct. Base Charge $ / Acct.

City Customer $26.83 City Customer $26.91
Non-City Customer 23.56 Non-City Customer 23.63
Consumption $ / CCF Consumption $ / CCF
Consumption $4.54 Consumption $4.42
Present Rates Proposed Rates
City of Stockton
Wastewater Rate Study
Com / Inst - High Strength - Year 1 Rates
Difference
DRAFT 08/12/2024 60 EXHIBIT 1
2218
Present Proposed
# of ADA's Rates Rates $ %
City Customer
0 $26.83 $26.91 $0.08 0.3%
100 156.83 155.91 (0.92) -0.6%
200 286.83 284.91 (1.92) -0.7%
300 416.83 413.91 (2.92) -0.7%
400 546.83 542.91 (3.92) -0.7%
500 676.83 671.91 (4.92) -0.7%
600 806.83 800.91 (5.92) -0.7%
700 936.83 929.91 (6.92) -0.7%
800 1,066.83 1,058.91 (7.92) -0.7%
Non-City Customer
0 $23.56 $23.63 $0.07 0.3%
100 153.56 152.63 (0.93) -0.6%
200 283.56 281.63 (1.93) -0.7%
300 413.56 410.63 (2.93) -0.7%
400 543.56 539.63 (3.93) -0.7%
500 673.56 668.63 (4.93) -0.7%
600 803.56 797.63 (5.93) -0.7%
700 933.56 926.63 (6.93) -0.7%
800 1,063.56 1,055.63 (7.93) -0.7%
Base Charge $ / Acct. Base Charge $ / Acct.

City Customer $26.83 City Customer $26.91
Non-City Customer 23.56 Non-City Customer 23.63
Avg Daily Attendance $ / ADA Avg Daily Attendance $ / ADA Avg Daily Attendance $1.30 Avg Daily Attendance $1.29
Present Rates Proposed Rates
City of Stockton
Wastewater Rate Study
Schools - Year 1 Rates
Difference
DRAFT 08/12/2024 61 EXHIBIT 1
2219
City of Stockton
Wastewater Rate Study
Industrial
Present
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Admin / Stand-by Charges
Base Charge $26.83 $26.91 $27.99 $29.11 $30.27 $31.48
Flow 864.80 945.76 983.59 1,022.93 1,063.85 1,106.40
BOD 140.13 153.25 159.38 165.76 172.39 179.29
SS 102.88 112.51 117.01 121.69 126.56 131.62
O&M (Consumption) Charges
Flow $748.52 $818.59 $851.33 $885.38 $920.80 $957.63
BOD 52.14 57.02 59.30 61.67 64.14 66.71
SS 83.45 91.26 94.91 98.71 102.66 106.77
Proposed
DRAFT 08/12/2024 62 EXHIBIT 1
2220
Flow BOD SS Present Proposed
(MG) (1,000 lbs.) (1,000 lbs.) Rates Rates $ %
0 0 0 $26.83 $26.91 $0.08 0.3%
1 5 2 2,974.16 3,250.15 275.99 9.3%
2 10 4 5,921.49 6,473.39 551.90 9.3%
3 15 6 8,868.82 9,696.63 827.81 9.3%
4 20 8 11,816.15 12,919.87 1,103.72 9.3%
5 25 10 14,763.48 16,143.11 1,379.63 9.3%
6 30 12 17,710.81 19,366.35 1,655.54 9.3%
7 35 14 20,658.14 22,589.59 1,931.45 9.3%
8 40 16 23,605.47 25,812.83 2,207.36 9.4%
9 45 18 26,552.80 29,036.07 2,483.27 9.4%
10 50 20 29,500.13 32,259.31 2,759.18 9.4%
11 55 22 32,447.46 35,482.55 3,035.09 9.4%
12 60 24 35,394.79 38,705.79 3,311.00 9.4%
13 65 26 38,342.12 41,929.03 3,586.91 9.4%
14 70 28 41,289.45 45,152.27 3,862.82 9.4%
15 75 30 44,236.78 48,375.51 4,138.73 9.4%
16 80 32 47,184.11 51,598.75 4,414.64 9.4%
17 85 34 50,131.44 54,821.99 4,690.55 9.4%
18 90 36 53,078.77 58,045.23 4,966.46 9.4%
Admin / Stand-by Charges $ / Unit Admin / Stand-by Charges $ / Unit Base Charge $26.83 Base Charge $26.91
Flow 864.80 Flow 945.76
BOD 140.13 BOD 153.25
SS 102.88 SS 112.51
O&M (Consumption) Charges $ / Unit O&M (Consumption) Charges $ / Unit Flow $748.52 Flow $818.59
BOD 52.14 BOD 57.02
SS 83.45 SS 91.26
Present Rates Proposed Rates
City of Stockton
Wastewater Rate Study
Industrial - Year 1 Rates
Difference
DRAFT 08/12/2024 63 EXHIBIT 1
2221
EXHIBIT 2

WASTEWATER MAXIMUM MONTHLY RATES AND EFFECTIVE DATES
Residential
Present
Rates
January 1,
2025
July 1,
2025
July 1,
2026
July 1,
2027
July 1,
2028
Residential Charge
(Per Dwelling Unit)
Single-Family & Condo (City) $55.68 $57.36 $59.65 $62.04 $64.52 $67.10 Single-Family & Condo (NonCity)
$50.77 $52.30 $54.39 $56.57 $58.83 $61.18
Multi-Family (City) $52.45 $52.67 $54.78 $56.97 $59.25 $61.62 Multi-Family (Non-City) $47.05 $47.25 $49.14 $51.11 $53.15 $55.28 Apartments (City) $47.57 $47.57 $49.47 $51.45 $53.51 $55.65 Apartments (Non-City) $41.75 $41.75 $43.42 $45.16 $46.97 $48.85 Commercial/Institutional
Present
Rates
January 1,
2025
July 1,
2025
July 1,
2026
July 1,
2027
July 1,
2028
Consumption Charges
($/CCF1)
Com/Inst – Low-strength $2.22 $2.40 $2.50 $2.60 $2.70 $2.81 Com/Inst – Med-strength $2.70 $2.75 $2.86 $2.97 $3.09 $3.21 Com/Inst – High-strength $4.54 $4.42 $4.60 $4.78 $4.97 $5.17 Schools ($/ADA2) $1.30 $1.29 $1.34 $1.39 $1.45 $1.51
Fixed Monthly Charge (City) $26.83 $26.91 $27.99 $29.11 $30.27 $31.48 Fixed Monthly Charge (NonCity)
$23.56 $23.63 $24.58 $25.56 $26.58 $27.64
1CCF = one hundred cubic feet 2ADA = average daily attendance Industrial
Present
Rates
January 1,
2025
July 1,
2025
July 1,
2026
July 1,
2027
July 1,
2028
Industrial Charges
Fixed Monthly Charge $26.83 $26.91 $27.99 $29.11 $30.27 $31.48 Admin / Stand-by Charge
Industrial – Flow ($/MG1)
$864.80 $945.76 $983.59 $1,022.9
3 $1,063.8
5 $1,106.4
0 Industrial – BOD ($/Klbs2) $140.13 $153.25 $159.38 $165.76 $172.39 $179.29 Industrial – SS ($/Klbs) $102.88 $112.51 $117.01 $121.69 $126.56 $131.62 Consumption Charges
Industrial – Flow ($/MG) $748.52 $818.59 $851.33 $885.38 $920.80 $957.63 Industrial – BOD ($/Klbs) $52.14 $57.02 $59.30 $61.67 $64.14 $66.71 Industrial – SS ($/Klbs) $83.45 $91.26 $94.91 $98.71 $102.66 $106.77 1MG = million gallons 2Klbs = one thousand pounds
2222

PUBLIC HEARING ON PROPOSED

WASTEWATER RATE ADJUSTMENTS
Municipal Utilities Department
Agenda Item No. 16.5
November 12, 2024
2223
Wastewater Rate Study
Today’s Actions
 Provide overview of the Cost-of-Service analysis and Rate Study preparation
 Summarize Proposition 218 requirements
 Hold public hearing (today)
 Hear public comments and receive written protests
 Review / count protests
 Council may adopt rates if no majority protest (50% + 1) 2224
Provide an adequate level of rate revenue to operate and maintain the City’s wastewater utility
Develop cost-based and proportional wastewater rates
 Meet requirements of Proposition 218
Reflect prudent financial planning criteria
 Prudent rate funding of capital
 Meet target reserve balances
Developed using generally accepted methodologies
tailored to the City’s system and customer groups
 Water Environment Federation Manual of Practice #27
3 Purpose of a Rate Study
2225
Prop. 218 – California constitutional amendment to protect taxpayers
 Limits how taxes, fees and charges can be created
Prop. 218 is not prescriptive in defining a “cost-based” rate  Fees shall not exceed the reasonable cost of providing the service  Fees shall not exceed the proportional cost of providing service Cost of service analysis results are the foundation of the proposed rates
 Nexus between cost to provide service and rates charged 4 Proposition 218 – Establishing Cost Based Rates
2226
Rate Design
Design rates for each class of service to reflect the prior two analyses, along with rate design goals and objectives
Cost of Service
Proportionally distribute the revenue requirement between the various customer classes of service
Revenue Requirement
Compares the revenue of the utility to the expenses to
evaluate the level of overall rates
5 Developing Cost-Based Wastewater Rates
2227
 Revenues independently calculated by customer group
 O&M expenses based on FY 2023-24 and FY 2024-25 budgets  Capital Funding Plan based on current CIP
 Annual debt service
 Existing debt service is levelized
 No new debt
 Target annual rate funding of capital
 Increases from $15 million in FY 2023-24 to $19.5 million in FY 2028-29
 Reserve minimums
 Target: 6 months of O&M expenses
6 Wastewater Revenue Requirement - Key Assumptions
2228
Capital Improvement Plan
7 Capital Summary
 Annual R&R
 Complete RWCF
Upgrades
 Sewer Line
Replacements
 14-Mile Slough
 Westside Interceptor
7 2229
Revenue Requirement
8 $0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Revenue Requirement ($000s)
All Other O&M Expenses Treatment Expenses Collection Expenses Rate Funded Capital Net Debt Service Proposed Revenue
Present Revenue
8 2230
Proposed rate revenue adjustments are necessary to
prudently fund the utility
 Fund essential capital improvement projects
 Maintain strong, legally required, debt service coverage ratios  Reflect inflationary increases in annual O&M expenses  Overall revenue adjustment may not reflect individual bill impacts developed in the cost of service and rate design analyses Revenue Requirement Summary
9 FY
2023-24
FY
2024-25
FY
2025-26
FY
2026-27
FY
2027-28
FY
2028-29
Average SF Customer Bill $55.68 $57.91 $60.22 $62.63 $65.14 $67.74 Annual Monthly Change -- $2.23 $2.32 $2.41 $2.51 $2.61
Cumulative Bill Difference -- $2.23 $4.54 $6.95 $9.46 $12.06 System Average Rate Adj. -- 4.0% 4.0% 4.0% 4.0% 4.0%
9 2231
Provides the basis to meet Proposition 218 requirements  Proportional distribution of costs between customer classes Customer classes of service were reviewed
 Rates were adjusted based on cost-of-service results
Revenue requirement distributed proportionally to the
customer classes based on:
 Volume – average annual flow
 Strength – CBOD and SS
 Customer – number of customers
Cost of service average unit costs provide basis for proposed rate designs
Cost of Service Assumptions
1010
2232
Cost of Service – Results Summary
11 * Cost of service results are implemented in Year 1 only *  Cost of service provides
the basis for the
proposed rates
 Majority of customer
classes are within a
reasonable range
 Exception is high
strength and industrial
customers
 Reflects changes in
customer characteristics
11 2233
Residential
 Flat fixed charge
• Different charge for each subcategory
Non-Residential
 Flat fixed charge with volumetric charge ($/CCF)
• Different volumetric charge for each subcategory
 Industrial
 Administration / Stand-by Charge
• Flow ($/MG), BOD ($/1,000 lbs.), and SS ($/1,000 lbs.)  O&M Charge
• Flow ($/MG), BOD ($/1,000 lbs.), and SS ($/1,000 lbs.) Rate Design – Current Rates
12 * Non-City Customers have ≈ 10% discount on the fixed charge per agreement * 12 2234
Comparative Wastewater Rate Survey
13 2235
Adopt the Draft Wastewater Rate Study, dated August 2024, as prepared by HDR Engineering, Inc.
Approve the Wastewater Utility rate adjustments as
identified in the Study if less than a majority of the affected record owners or affected sewer utility customers directly responsible for the payment of sewer service charges have submitted written protests.
Authorize the City Manager to take appropriate and
necessary actions to carry out the purpose and intent of the Resolution.

Recommended Actions
1414
2236
QUESTIONS?
2237
Present and Proposed Residential Rates
16 Monthly Fixed Charge FY
2023-24
FY
2024-25
FY
2025-26
FY
2026-27
FY
2027-28
FY
2028-29
Single Family & Condo
City Customer $55.68 $57.36 $59.65 $62.04 $64.52 $67.10 Non-City Customer 50.77 52.30 54.39 56.57 58.83 61.18
Multi-Family
City Customer $52.45 $52.86 $54.97 $57.17 $59.46 $61.84 Non-City Customer 47.05 47.42 49.32 51.29 53.34 55.47
Apartments
City Customer $47.57 $47.57 $49.47 $51.45 $53.51 $55.65 Non-City Customer 41.75 41.75 43.42 45.16 46.97 48.85
2238
Present and Proposed Non-Residential Rates
17 FY
2023-24
FY
2024-25
FY
2025-26
FY
2026-27
FY
2027-28
FY
2028-29
Base Charge
City Customer $26.83 $26.91 $27.99 $29.11 $30.27 $31.48 Non-City Customer 23.56 23.63 24.58 25.56 26.58 27.64
Consumption Charge
Com / Inst - Low Strength $2.22 $2.40 $2.50 $2.60 $2.70 $2.81 Com / Inst – Medium Strength 2.70 2.75 2.86 2.97 3.09 3.21 Com / Inst - High Strength 4.54 4.42 4.60 4.78 4.97 5.17 Schools ($ / ADA) 1.30 1.29 1.34 1.39 1.45 1.51
2239
Present and Proposed Industrial Rates
18 FY
2023-24
FY
2024-25
FY
2025-26
FY
2026-27
FY
2027-28
FY
2028-29
Admin / Stand-by Charges
Base Charge $26.83 $26.91 $27.99 $29.11 $30.27 $31.48
Flow 864.80 945.76 983.59 1,022.93 1,063.85 1,106.40
BOD 140.13 153.25 159.38 165.76 172.39 179.29
SS 102.88 112.51 117.01 121.69 126.56 131.62
O&M (Consumption) Charges
Flow $748.52 $818.59 $851.33 $885.38 $920.80 $957.63
BOD 52.14 57.02 59.30 61.67 64.14 66.71
SS 83.45 91.26 94.91 98.71 102.66 106.77
2240
City of Stockton
Legislation Text
File #: 24-1024, Version: 1
MEASURE W CITIZENS’ OVERSIGHT COMMITTEE ADOPTED ANNUAL REPORT OF REVENUES AND EXPENDITURES FOR FISCAL YEAR 2022-23

RECOMMENDATION
This item is an informational item submitting the Measure W Citizens’ Oversight Committee Report for Fiscal Year 2022-23 to the City Council.

Summary
Stockton’s voters approved Measure W on November 2, 2004, and the City Council subsequently adopted program guidelines to implement the measure. The guidelines require an audit performed by an independent certified public accountant, and the establishment of a citizen’s oversight committee to ensure proper use of the revenues. The Measure W Citizens’ Oversight Committee has the responsibility to determine whether expenditures were made consistent with the program guidelines. Furthermore, the Committee is required to provide an annual report to the City Council.

The attached Measure W Annual Report for Fiscal Year (FY) 2022-23 (Attachment A) is presented to the City Council in compliance with the program guidelines.

DISCUSSION
Background
On August 3, 2004, the City Council adopted a resolution which called for an election to consider enactment of The Stockton Safe Neighborhood Gang and Drug Prevention, Police/Fire Measure, also known as Measure W. The voters approved the measure on November 2, 2004. Measure W enabled the collection of a one-quarter percent sales tax specifically for police and fire services. The ordinance guidelines call for the creation and operation of a citizens’ oversight committee to ensure funds collected would be deposited and expended according to the intent of the measure. After the passage of the measure, the Council adopted guidelines for the functioning of the oversight committee and appointed members to the committee.