Proposed FY 2024/25 Utility Rates
2City of Sunnyvale – FY 2024/25 Utility Rates Hearing
Overview
• Sunnyvale operates water, wastewater, and solid waste utilities.
• Sunnyvale also provides wastewater service to approximately 1,728 properties outside the City.
• 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 2024/25 Utility Rates Hearing
Utility Funds
Utility Original Projection
Recommended FY
2024/25
Change in
Percentage Points
Water 4.0% 4.0% 0.0%
Wastewater 7.5% 9.0% 1.5%
Solid Waste 4.5% 4.0% -0.5%
4City of Sunnyvale – FY 2024/25 Utility Rates Hearing
• Wholesale Water Rate Increases (8.8% SFPUC, 12.9% Valley Water) • Use of Rate Stabilization Reserve to help absorb wholesale rate increases
• Improvements to aging infrastructure
• Recommended increase: 4%
Primary Drivers - Water
5City of Sunnyvale – FY 2024/25 Utility Rates Hearing
• Sunnyvale Cleanwater Program
• Improvements to aging infrastructure
• Regulatory changes
• Recommended Increase: 9%
Primary Drivers - Wastewater
6City of Sunnyvale – FY 2024/25 Utility Rates Hearing
• Zero Waste initiatives
• SB 1383
• Recommended Increase: 4%
Primary Drivers – Solid Waste
7City of Sunnyvale – FY 2024/25 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 2024/25 Utility Rates Hearing
• Notices were mailed to all utility customers on May 9, 2024 • 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 24, 2024, 66 protests were received
Proposition 218 Noticing
9City of Sunnyvale – FY 2024/25 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 4% for FY 2024/25.
Staff Recommendation
10City of Sunnyvale – FY 2024/25 Utility Rates Hearing
• Assistance program in partnership with Sunnyvale Community Services
• Payment plans available
Assistance Programs
Questions?