Proposed FY 2023/24 Utility Rates
2City of Sunnyvale – FY 2021/22 Utility Rates Hearing
Overview
• Sunnyvale operates water, wastewater, and solid
waste utilities.
• Each utility is self-supporting and funded solely
through utility rates.
• Rates are based on the cost of service for each
utility.
3City of Sunnyvale – FY 2021/22 Utility Rates Hearing
Utility Funds
Utility
Original
Projection
Recommended
FY 2023/24
Change in
Percentage
Points
Water 4.0% 4.0% 0.0%
Wastewater 2.5% 9.0% 6.5%
Solid Waste 6.0% 5.5% 0.5%
4City of Sunnyvale – FY 2021/22 Utility Rates Hearing
Primary
Drivers -
Water
• Wholesale Water Rate
Increases (11.6% SFPUC, 15%
Valley Water)
• Improvements to aging
infrastructure
• Use of Rate Stabilization
Reserve to help absorb cost
increases
• Recommended increase:
4.0%
5City of Sunnyvale – FY 2021/22 Utility Rates Hearing
Primary Drivers -
Wastewater
• Sunnyvale Cleanwater Program
• Improvements to aging
infrastructure
• Cost for chemicals
• Sunnyvale also services an area
of approximately 1,728
properties outside the City
• Recommended Increase: 9%
6City of Sunnyvale – FY 2021/22 Utility Rates Hearing
Primary Drivers – Solid
Waste
• Zero Waste initiatives
• SB 1383 Compliance
• General increase in contract
costs
• Recommended Increase: 6%
7City of Sunnyvale – FY 2021/22 Utility Rates Hearing
• Sunnyvale Fiscal Policy
Rates recover cost of service
Rates reviewed annually
Rates support the total costs of the utility
• Proposition 218
Property related fees may not exceed the
proportional cost of the service attributable to
the parcel
Public notification process
Rate Setting & Proposition 218
8City of Sunnyvale – FY 2021/22 Utility Rates Hearing
• Notices were mailed to all utility customers on
May 12, 2023
• If written protests are received from a majority
of customers, the proposed rates will not
become effective
• Approximately 15,700 protests are needed for a
protest majority
As of June 27, 2023, 74 protests were received
Proposition 218 Noticing
9City of Sunnyvale – FY 2021/22 Utility Rates Hearing
• Alternatives 1 and 2:
• Alternative 1) Find that the project is exempt
from the California Environmental Quality Act
(CEQA) as noted in the report.
• Alternative 2) Adopt a resolution increasing
water rates by 4%, wastewater rates by 9%, and
solid waste rates by 6% for FY 2023/24.
Recommendation