2024 Wastewater Enterprise
Financial Plan Update
Final Report / August 17, 2023
CITY OF
THOUSAND OAKS
ATTACHMENT #2
445 S Figueroa Street, Suite 1925
Los Angeles, CA 90071
www.raftelis.com
August 17, 2023
City of Thousand Oaks
Attn.: Clifford G. Finley, Public Works Director
& Jaime Boscarino, Finance Director
City of Thousand Oaks
2100 Thousand Oaks Blvd
Thousand Oaks, CA 91362
Subject: 2024 Wastewater Enterprise Financial Plan Update
Dear Mr. Finley and Ms. Boscarino,
Raftelis is pleased to provide this report on the 202 4 Wastewater Enterprise Financial Plan Update Study (Study) to the City of Thousand Oaks (City). The Study involved a comprehensive update of the City’s five -year wastewater financial plan to determine proposed wastewater rate increases for FY 2024 -25 and FY 2025 -26. We are confident that the update to the financial plan and revenue adjustments will result in fair and equitable rates for the City’s wastewater customers and comply with the requirements of Proposition 218.
It was a pleasure working with you , and we wish to express our thanks to you, Mr. Nader Heydari, Ms. Tara Tosatto, and other participating City staff members for the support and cooperation extended over the course of the Study. Should you have any questions, please do not hesitate to contact me.
Sincerely,
Charles Diamond
Project Manager
Raftelis
Table of Contents
1. Executive Summary .................................................................................... 1
1.1. Study Background ......................................................................................................... 1
1.2. Objectives of the Study .................................................................................................. 1
1.3. Results and Recommendations ...................................................................................... 1
2. Introduction ............................................................................................. 6
2.1. Study Background ......................................................................................................... 6
2.2. Objectives of the Study .................................................................................................. 6
2.3. Legal Requirements and Rate-Setting Methodology ....................................................... 6
3. Financial Plan ........................................................................................... 7
3.1. General Assumptions .................................................................................................... 7
3.2. Revenues from Current Rates ........................................................................................ 8
3.3. O&M Expenses ........................................................................................................... 10
3.4. Capital Improvement Plan (CIP) .................................................................................. 11
3.5. Debt Service ................................................................................................................ 12
3.6. Reserve Policy ............................................................................................................. 12
3.7. Status Quo Financial Plan ........................................................................................... 13
3.8. Proposed Financial Plan .............................................................................................. 15
4. Proposed Rates ........................................................................................ 18
4.1. Proposed Wastewater Rates ......................................................................................... 18
List of Tables
Table 1-1: Reserve Policy ............................................................................................................... 2 Table 1-2: Proposed Revenue Adjustments ..................................................................................... 3 Table 1-3: Current Wastewater Rates.............................................................................................. 5 Table 1-4: Proposed Wastewater Rates ........................................................................................... 5 Table 3-1: Annual Cost Inflation Assumptions ................................................................................ 7 Table 3-2: Account Growth Assumptions ....................................................................................... 7 Table 3-3: Current Wastewater Rates.............................................................................................. 8 Table 3-4: Projected Service Units .................................................................................................. 8 Table 3-5: Revenue from Current Rates .......................................................................................... 9 Table 3-6: Projected Miscellaneous Revenue ................................................................................... 9 Table 3-7: Projected O&M Costs .................................................................................................. 10 Table 3-8: Capital Improvement Plan ........................................................................................... 11 Table 3-9: Debt Service ................................................................................................................ 12 Table 3-10: Reserve Policies ......................................................................................................... 13 Table 3-11: Reserve Targets .......................................................................................................... 13 Table 3-12: Status Quo Financial Plan .......................................................................................... 14 Table 3-13: Proposed Revenue Adjustments ................................................................................. 15 Table 3-14: Proposed Financial Plan............................................................................................. 16 Table 4-1: Proposed Wastewater Rates ......................................................................................... 18
List of Figures
Figure 1-1: Capital Improvement Plan Summary ............................................................................ 2 Figure 1-2: Projected Ending Cash Balance ..................................................................................... 4 Figure 1-3: Proposed Financial Plan ............................................................................................... 4 Figure 3-1: Capital Improvement Plan Summary .......................................................................... 11 Figure 3-2: Proposed Financial Plan ............................................................................................. 17 Figure 3-3: Projected Ending Cash Balance ................................................................................... 17
List of Appendices
Appendix A: Detailed Five-Year Planned CIP Projects
Appendix B: Single Family Residential Bill Comparison To Neighboring Agencies
List of Abbreviations
Terms Descriptions
CIP Capital Improvement Plan
City City of Thousand Oaks
CY Calendar Year (January 1 – December 31)
FY Fiscal Year (July 1 – June 30)
O&M Operations and Maintenance
Study 2024 Wastewater Enterprise Financial Plan Update
This page is intentionally left blank to facilitate two-sided printing.
202 4 WASTEWATER ENTERPRISE FINANCIAL PLAN UPDATE 1
1. Executive Summary
1.1. Study Background
The City of Thousand Oaks (City) conducts financial plan update studies every two years to develop updated five - year financial projections and proposed two -year rate schedules for the City’s Wa stewater Enterprise. The last financial plan update was completed in 202 1 and provided the basis for the City’s adopted wastewater rates in Fiscal Year (FY) 2022 -23 and FY 2023 -24. The City also conducts wastewater cost of service updates approximately eve ry five years to ensure that customers are appropriately charged in proportion to the costs incurred by the City to provide wastewater service. The last cost of service update was completed in 2019.
Raftelis was engaged in 2023 to assist the City with a financial plan update to establish updated five -year financial projections and a proposed two-year wastewater rate schedule for FY 2024 -25 and FY 2025-26. The results of this 2024 Wastewater Enterprise Financial Plan Update (Study) are documented in this report. A cost of service update was not conducted as part of this Study but will be necessary during the next two -year wastewater rate update in 2025.
1.2. Objectives of the Study
The major objectives of the Study include the following:
Update the five-year financial plan for the Wastewater Enterprise to ensure financial sufficiency, meet Operations & Maintenance (O&M) costs, ensure sufficient funding for Capital Improvement Plan (CIP) projects, and maintain the financial health of the Wastewater Enterprise; and Develop fair and equitable two-year rate adjustments for the City’s wastewater customers.
1.3. Results and Recommendations
Reserve Policy
A reserve policy establishes cash reserve target s to ensure sufficient cash on hand to cope with uneven cash flow, unanticipated revenue shortfalls, asset failures, and other financial risks. It provides guidelines for sound financial management and helps utilities maintain financial solvency and mitigate financial risks over the long term. The City maintains three types of reserves for its Wastewater Enterprise:
1. An Operating Reserve to provide working capital to support the utility’s operation, maintenance, and administration.
2. A Capital Reserve to fund future obligations necessary to maintain reliable infrastructure.
3. An Emergency Reserve to allow the utility to provide uninterrupted service during a fiscal or physical emergency.
Raftelis does not recommend any changes to the City’s existing reserve policies for the Wastewater Enterprise at this time. Table 1-1 lists the Wastewater Enterprise’s existing reserve policies and associated reserve target levels for the current fiscal year.
2 CITY OF THOUSAND OAKS
Table 1-1: Reserve Policy
A B C
Line Reserve Reserve Target
FY 2023-24
Reserve Target ($)
1 Fund 621 - Wastewater Operating
2 Operating 25% of O&M expenses $5,495,856
3 Fund 624 - Wastewater Capital
4 Capital Two years of annual average five-year CIP $22,574,275 5 Emergency
Replacement Cost of Chlorine Contact
Chamber and Filter Influent Pumps (most
critical asset)
$3,518,943
6 Total $31,589,074
Five-Year CIP Expenses
The City provided Raftelis with a five-year schedule of planned wastewater CIP project costs through FY 2027-28, amounting to $80.6M. Based on a historical comparison of planned versus executed wastewater CIP, City staff and Raftelis determined that it would be most appropriate for Raftelis’ financial plan projections to assume a 70% CIP execution factor over the study period. After applying the 70% execution factor, the total five-year CIP amounts to $56.4M (see Figure 1-1). This averages approximately $11.3M per year , representing significant capital spending relative to prior financial plan updates , primarily due to rising construction costs plus increased rehabilitation and replacement needs for the City’s aging wastewater infrastructure . All CIP projects over the stu dy period are assumed to be funded e ntirely by rates and reserves (i.e., pay-as-you-go), as the City does not expect to receive grant funding or to issue any new debt in the next five years.
Figure 1-1: Capital Improvement Plan Summary
202 4 WASTEWATER ENTERPRISE FINANCIAL PLAN UPDATE 3 Proposed Revenue Adjustments
To ensure that the Wastewater Enterprise generates sufficient revenues to adequately recover its operating and capital expenses while maintaining sufficient cash reserves, Raftelis recommends 11% annual rate increases (i.e., revenue adjustments) beginning in FY 2024-25. The revenue adjustments are assumed to be implemented on July 1 of each fiscal year, as shown in Table 1-2. Note that proposed revenue adjustments in FY 2026-27 and FY 2027-28 are for planning purposes only, as the City only adopts two years of wastewater rates at a time. Raftelis evaluated various financial plan scenarios with City staff to develop the recommended revenue adjustments below. Key factors influencing the need for significant rate increases include:
Operating cost increases: O&M expenses continue to increase yearly due to inflationary pressures, which have been significantly higher over the past few years across the global economy. Notably, budgeted chemical costs more than doubled between FY 2022-23 and FY 2023-24.
Substantial capital needs : Total five -year CIP expenses amount to $56.4M, which represents an 11% increase in CIP relative to the prior financial plan update in 2021. All CIP expen ses are assumed to be funded by rates and reserves, resulting in a need for the Wastewater Enterprise to generate increased revenues from rates.
Low existing rates: The City’s existing wastewater rates are substantially lower than other public wastewater utilities in Ventura County and the surrounding area (see Appendix B residential bill comparisons to neighboring utilities). This suggests that current rates may be lower than what is necessary to support typical wastewater system needs in the Ventura County region.
Table 1-2: Proposed Revenue Adjustments
A B C
Line Fiscal Year Effective
Month
Revenue
Adjustment
1 FY 2023-24 July 2023 3.0%1
2 FY 2024-25 July 2024 11.0%
3 FY 2025-26 July 2025 11.0%
4 FY 2026-27 July 2026 11.0%
5 FY 2027-28 July 2027 11.0%
1 3% wastewater rate increases in FY 2023 -24 were proposed during the 2022 Wastewater Financial Plan Update and have already been adopted and implemented.
4 CITY OF THOUSAND OAKS
Proposed Financial Plan
Under the proposed financial plan, ending cash reserves are projected to fall slightly below the reserve target in FY 2024-25 through FY 2026-27 before building back up to above the target level in FY 2027 -28 (see Figure 1-2). This is primarily due to a significant drawdown in reserves in the first year to fund substantial CIP projects. Raftelis and City staff determined that the magnitude of revenue adjustments needed to maintain cash reserve levels above the target level in all years would result in unacceptably high b ill impacts to the City’s wastewater customers. The proposed rate increases are necessary to ensure sufficient revenues to meet capital funding needs and maintain sufficient cash reserves. This is demonstrated in Figure 1-3, which compares current revenues (excluding proposed rate increases) and proposed revenues (including proposed rate increases) versus various funding requirements.
Figure 1-2: Projected Ending Cash Balance
Figure 1-3: Proposed Financial Plan
202 4 WASTEWATER ENTERPRISE FINANCIAL PLAN UPDATE 5 Current Wastewater Rate Structure
Currently adopted wastewater rates in effect in FY 2023-24 are summarized below in Table 1-3. The City’s current wastewater rate structure consists of a monthly fixed service charge per Service Unit for all customer classes. One Service Unit is equal to one single family residence in terms of wastewater flow (i.e., quantity of discharge to the wastewater system) and strength (i.e., concentration of Biological Oxygen Demand and Suspend ed Solids). The number of Service Units attributed to each non-residential customer is calculated based on the number of plumbing fixture units, wastewater strength adjustment factors, and additional considerations. The City also serves a small number of w astewater customers outside city limits. These “Outside City” customers are also subject to an additional monthly surcharge per Service Unit. No changes to the current wastewater rate structure are recommended at this time.
Table 1-3: Current Wastewater Rates
A B
Line Description
FY 2023-24
(July 2023)
1 Monthly Service Charge per Service Unit $31.78
2 Outside City Monthly Surcharge per Service Unit $0.44
Proposed Wastewater Rates
Although the financial plan spans a five-year period, the City only adopts wastewater rates for two years at a time.
Therefore, proposed wastewater rates are presented below for FY 2024-25 and FY 2025-26 only. All proposed rates are assumed to be implement ed in July of each fiscal year. The current FY 2023-24 monthly charges per Service Unit are proposed to be increased by 11% per year (per Table 1-2) and rounded up to the nearest cent to determine the proposed monthly charges shown below in Table 1-4. Each single family residential customer is charged based on one Service Unit. Therefore, single family residential customers within city limits will experience a $3.50 increase in monthly wastewater charges in FY 2024 -25 and an additional $3.89 monthly increase in FY 2025 -26.
Note that since FY 2021-22, wastewater service charges for single family residential customers are now collected by the City in two installments per year via the Ventura County Property Tax Roll.
Table 1-4: Proposed Wastewater Rates
A B C D
Line Description
Current
FY 2022-23
(July 2023)
Proposed
FY 2024-25
(July 2024)
Proposed
FY 2025-26
(July 2025)
1 Service Charge (All Customers)
2 Monthly Charge per Service Unit $31.78 $35.28 $39.17
3 Difference ($) $3.50 $3.89
4 5 Outside City Surcharge (Outside City Customers Only) 6 Monthly Charge per Service Unit $0.44 $0.49 $0.55
7 Difference ($) $0.05 $0.06
6 CITY OF THOUSAND OAKS
2. Introduction
2.1. Study Background
The City conducts financial plan update studies every two years to develop updated five-year financial projections and proposed two -year rate schedules for the City’s Wastewater Enterprise. The last financial plan update was completed in 2021 and provided the basis for the City’s adopted wastewater rates in Fiscal Year (FY) 2022 -23 and FY 2023-24. The City also conducts wastewater cost of service updates approximately every five years to ensure that customers are appropriately charged in proportion to the costs incurred by the City to provide wastewater service. The last cost of service update was completed in 2019. Raftelis was engaged in 2023 to assist the City with a financial plan update to establish updated five-year financial projections and a proposed two-year wastewater rate schedule for FY 2024 -25 and FY 2025 -26. The results of this 2024 Wastewater Enterprise Financial Plan Update (Study) are documented in this report. A cost of service update was not conducted as part of this Study but will be necessary during the next wastewater rate update in 2025.
2.2. Objectives of the Study
The major objectives of the Study include the following:
Update the five-year financial plan for the Wastewater Enterprise to ensure financial sufficiency, meet Operations & Maintenance (O&M) costs, ensure sufficient funding for Capital Improvement Plan (CIP) projects, and maintain the financial health of the Wastewater Enterprise; and Develop fair and equitable two-year rate adjustments for the City’s wastewater customers.
2.3. Legal Requirements and Rate-Setting Methodology
California Constitution - Article XIII D, Section 6 (Proposition 218) Proposition 218, reflected in the California Constitution as Article XIII D, was enacted in 1996 to ensure that rates and fees are reasonable and proportional to the cost of providing service. The principal requirements, as they relate to public water and wastewater service, are as follows:
1. A property -related charge (such as w astewater rates) imposed by a public agency on a parcel shall not exceed the costs required to provide the property related service.
2. Revenues derived by the charge shall not be used for any purpose other than that for which the charge was imposed.
3. The amount of the charge imposed upon any parcel shall not exceed the proportional cost of service attributable to the parcel.
4. No charge may be imposed for a service unless that service is actually used or i mmediately available to the owner of the property.
5. A written notice of the proposed charge shall be mailed to the record owner of each parcel at least 45 days prior to the public hearing, when the agency considers all written protests against the charge.
Water and wastewater rates and charges should be recovered from classes of customers in proportion to the cost of serving those customers. Prop osition 218 makes clear that wastewater rates cannot be “arbitrary and capricious,” meaning that the rate-setting methodology must be sound and that there must be a nexus between the costs and the rates charged. Raftelis’ 2019 Wastewater Enterprise Financial Plan and Cost of Service Update Study followed industry-standard rate -setting methodologies set forth by the Water Environment Federation to ensure that the City’s wastewater rates do not exceed the proportionate cost of providing wastewater service.
202 4 WASTEWATER ENTERPRISE FINANCIAL PLAN UPDATE 7
3. Financial Plan
The five -year financial plan includes projections of Wastewater Enterprise revenues, O&M expenses, CIP expenses, debt service payments, and reserve funding . The overall purpose of the financial plan is to d etermine annual wastewater rate revenues required to achieve sufficient cash flow, maintain adequate reserves, and meet any debt service coverage requirements. The key outcome of the financial plan update is to identify the required annual increases in wastewater rates needed to maintain the financial sufficiency of the City’s Wastewater Enterprise.
3.1. General Assumptions
The five-year study period spans from FY 20 23-24 to FY 20 27-28. Various assumptions incorporated into the updated financial plan projections were determined based on recommendations from Raftelis and/or direction from City staff. These assumptions include cost inflation and customer account growth, outlined below.
Cost Inflation
Inflationary assumptions are shown below in Table 3-1. Raftelis utilized the City’s adopted budgets for FY 2023-24 and FY 202 4-25 as a baseline for O&M expenses and then escalated expenses beyond FY 202 4-25 based on the inflationary increases shown below in Lines 1-4. CIP expenses are escalated beginning next fiscal year in FY 2024- 25 based on the “Capital” inflationary category in Line 5.
Table 3-1: Annual Cost Inflation Assumptions
A B C D E F
Line Inflationary Categories FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 1 General N/A N/A 2.5% 2.5% 2.5%
2 Salary/Benefits N/A N/A 3.2% 3.2% 3.2%
3 Electricity N/A N/A 3.0% 3.0% 3.0%
4 Chemicals N/A N/A 3.0% 3.0% 3.0%
5 Capital N/A 3.0% 3.0% 3.0% 3.0%
Account Growth
The assumed annual growth in the number of customer connections to the City’s wastewater system is shown in Table 3-2. Assumed single family residential and multi -family residential account growth is based on expected development and was provided by City staff. Assumed non-residential annual account growth of 0.5% is based on a projected customer growth between 2020 and 2045 from the City’s 2020 Urban Water Management Plan.
Table 3-2: Account Growth Assumptions
A B C D E F
Line Customer Class FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 1 Single Family Residential 0.2% 0.2% 0.2% 0.2% 0.2%
2 Multi-Family Residential 1.0% 1.0% 1.0% 1.0% 1.0%
3 Commercial 0.5% 0.5% 0.5% 0.5% 0.5%
4 Industrial 0.5% 0.5% 0.5% 0.5% 0.5%
8 CITY OF THOUSAND OAKS
3.2. Revenues from Current Rates
Current Rates
Table 3-3 summarizes the current adopted wastewater rates in effect in FY 2023-24. The City’s current wastewater rate structure consists of a monthly fixed service charge per Service Unit for all customer classes. One Service Unit is equal to one single family residence in terms of wastewater flow (i.e., quantity of discharge to the wastewater system) and strength (i.e., concentration of Biological Oxygen Demand and Suspended Solids) . The number of Service Units attributed to each n on-residential customer is calculated based on the number of plumbing fixture units, wastewater strength adjustment factors, and additional considerations.
The City also serves a small number of wastewater customers outside city limits. These “Outside City” customers are also subject to an additional monthly surcharge per Service Unit. The City’s Wastewater Enterprise must pay taxes to the County of Ventura because the City’s wastewater lines extend through County land to serve Outside City customers. The Outside City surcharges are designed to recover said taxes.
Table 3-3: Current Wastewater Rates
A B
Line Description
FY 2023-24
(July 2023)
1 Monthly Service Charge per Service Unit $31.78
2 Outside City Monthly Surcharge per Service Unit $0.44
Projected Service Units
The projected number of Service Units by customer class is shown in Table 3-4. Actual Service Units in FY 2022 - 23 were increased annually by the account growth percentages from Table 3-2 to determine the number of projected Service Units through FY 2027-28.
Table 3-4: Projected Service Units
A B C D E F G
Line Customer Class
FY 2022-23
Actual
FY 2023-24
Projected
FY 2024-25
Projected
FY 2025-26
Projected
FY 2026-27
Projected
FY 2027-28
Projected
1 Inside City Limits
2 Single Family Residential 33,961 34,029 34,097 34,165 34,234 34,302 3 Multi-Family Residential 4,104 4,145 4,186 4,228 4,271 4,313 4 Commercial 10,419 10,471 10,523 10,576 10,629 10,682
5 Industrial 3,719 3,738 3,756 3,775 3,794 3,813
6 Subtotal 52,203 52,383 52,563 52,745 52,927 53,110
7 8 Outside City Limits
9 Single Family Residential 2,051 2,055 2,059 2,063 2,067 2,072 10 Multi-Family Residential 24 24 24 25 25 25
11 Commercial 28 28 28 28 29 29
12 Industrial 45 45 45 46 46 46
13 Subtotal 2,148 2,153 2,157 2,162 2,167 2,172
14 15 Total 54,351 54,535 54,721 54,907 55,094 55,282
202 4 WASTEWATER ENTERPRISE FINANCIAL PLAN UPDATE 9 Revenue from Current Rates
The wastewater rate revenue projections in this section assume that current FY 202 3-24 rates remain in effect throughout the five-year study period, and therefore represent estimated rate revenues without any rate increases.
This status quo scenario provides a baseline from which Raftelis evaluated the need for rate increases. Annual wastewater rate revenue is calculated by multiplying the number of Service Units (from Table 3-4) by the monthly fixed charge rates per Service Unit (from Table 3-3) and then multiplying by twelve months. For example, the total estimated revenue from Inside City single family residential customers in FY 2023-24 is:
𝑀𝑜𝑛𝑡ℎ𝑙𝑦 𝑆𝑒𝑟𝑣𝑖𝑐𝑒 𝐶ℎ𝑎𝑟𝑔𝑒 × 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑆𝑒𝑟𝑣𝑖𝑐𝑒 𝑈𝑛𝑖𝑡𝑠 × 12 𝑀𝑜𝑛𝑡ℎ𝑠 = 𝐴𝑛𝑛𝑢𝑎𝑙 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 𝑓𝑟𝑜𝑚 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑅𝑎𝑡𝑒𝑠 $31.78 × 34,029 × 12 = $13.8𝑀
The same calculation is repeated for all other customer classes and summed to determine the total annual revenue from current rates shown below in Table 3-5.
Table 3-5: Revenue from Current Rates
A B C D E F
Line Customer Class
FY 2023-24
Projected
FY 2024-25
Projected
FY 2025-26
Projected
FY 2026-27
Projected
FY 2027-28
Projected
1 Single Family Residential $13,771,854 $13,799,398 $13,826,997 $13,854,651 $13,882,360 2 Multi-Family Residential $1,590,125 $1,606,026 $1,622,086 $1,638,307 $1,654,690 3 Commercial $4,004,137 $4,024,158 $4,044,278 $4,064,500 $4,084,822 4 Industrial $1,442,855 $1,450,069 $1,457,320 $1,464,606 $1,471,929 5 Total $20,808,971 $20,879,651 $20,950,681 $21,022,064 $21,093,802
Miscellaneous Revenue
In addition to revenue from rates, the Wastewater Enterprise receives miscellaneous revenues from different sources such as reclaimed water sales, connection fees, and other miscellaneous revenues shown in Table 3-6. All miscellaneous revenues except connection fees and interest income are set equal to the adopted budget in FY 2023- 24 and FY 2024 -25 and then held constant thereafter to ensure sufficiently conservative revenue projections.
Connection fees in FY 2023 -24 and FY 2024 -25 are based on updated City staff projections and differ from the adopted budget . Interest income beyond FY 2024 -25 is calculated based on projected changes in Wastewater Enterprise cash reserve levels.
Table 3-6: Projected Miscellaneous Revenue
A B C D E F
Line Miscellaneous Revenue
FY 2023-24
Budget
FY 2024-25
Budget
FY 2025-26
Projected
FY 2026-27
Projected
FY 2027-28
Projected
1 Interest Income $1,010,000 $1,010,000 $922,892 $836,914 $884,837 2 Grease Diversion Charges $700,000 $700,000 $700,000 $700,000 $700,000 3 Connection Fees $600,000 $600,000 $600,000 $600,000 $600,000 4 Reclaimed Water Sales $400,000 $400,000 $400,000 $400,000 $400,000 5 WW Frappo Recycling Charges $125,000 $125,000 $125,000 $125,000 $125,000 6 Rental of City Facilities $46,200 $46,200 $46,200 $46,200 $46,200 7 Inspection Fees $35,200 $35,200 $35,200 $35,200 $35,200 8 Interest/Penalty Water Receivable $15,000 $20,000 $20,000 $20,000 $20,000 9 Other Miscellaneous Revenue $3,800 $3,800 $3,800 $3,800 $3,800 10 Total $2,935,200 $2,940,200 $2,853,092 $2,767,114 $2,815,037
10 CITY OF THOUSAND OAKS
3.3. O&M Expenses
The Wastewater Enterprise’s O&M expenses primarily include the cost of operating and maintaining wastewater collection, treatment, and disposal facilities . Additional O&M expenses include laboratory service s, customer service and billing, and other administrative costs. Projected O&M expenses in FY 2023-24 and FY 2024-25 are set equal to the adopted budget. Beyond FY 2024 -25, O&M expenses are projected by increasing FY 2024 -25 O&M expenses by the annual inflationary increases from Table 3-1. Table 3-7 summarizes projected O&M expenses for the Wastewater Enterprise over the study period.
Table 3-7: Projected O&M Costs
A B C D E F
Line O&M Expenses
FY 2023-24
Budget
FY 2024-25
Budget
FY 2025-26
Projected
FY 2026-27
Projected
FY 2027-28
Projected
1 Salaries $5,575,362 $5,890,254 $6,078,742 $6,273,261 $6,474,006 2 Professional/Contractual
Services $5,288,083 $5,394,171 $5,529,025 $5,667,251 $5,808,932 3 Fringe Benefits $2,977,432 $3,027,431 $3,124,309 $3,224,287 $3,327,464 4 Chemicals $2,456,000 $2,634,000 $2,713,020 $2,794,411 $2,878,243 5 Capital Outlay $2,271,605 $976,119 $163,000 $167,075 $171,252 6 Utilities $1,302,100 $1,297,100 $1,334,728 $1,373,452 $1,413,305 7 Supplies and Equipment $1,228,700 $1,219,450 $1,249,936 $1,281,185 $1,313,214 8 Repairs and Maintenance $691,557 $685,138 $702,266 $719,823 $737,819 9 Insurance and Claims $504,250 $595,000 $609,875 $625,122 $640,750 10 Asset Replacement Funding $370,448 $472,828 $484,649 $496,765 $509,184 11 Training and Memberships $106,825 $107,325 $110,008 $112,758 $115,577 12 Equipment/Building Rental $44,760 $45,080 $46,207 $47,362 $48,546 13 Use of Asset Replacement ($833,696) ($492,265) ($163,000) ($167,075) ($171,252) 14 Total $21,983,426 $21,851,631 $21,982,765 $22,615,677 $23,267,040
202 4 WASTEWATER ENTERPRISE FINANCIAL PLAN UPDATE 11
3.4. Capital Improvement Plan (CIP)
The City provided Raftelis with a five-year schedule of planned CIP project costs through FY 2027-28, amounting to $80.6M after incorporating 3% annual inflationary adjustments (from Table 3-1). See Appendix A for detailed costs by project. Based on a historical comparison of planned versus executed wastewater CIP, City staff and Raftelis determined that it would be most appropriate for Raftelis’ financial plan projections to assume a 70% CIP execution factor over the study period. After applying the 70% execution factor , the five-year CIP totals $56.4M (approximately $11.3M per year on ave rage). All CIP over the study period is assumed to be funded e ntirely by rates and reserves (i.e., pay-as-you-go), as the City does not expect to receive grant funding or to issue any new debt in the next five years. CIP assumptions are outlined in Table 3-8 and summarized in Figure 1-1.
Table 3-8: Capital Improvement Plan
A B C D E F
Line Capital Improvement Plan FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 1 Planned CIP
2 Fund 624 $34,374,900 $10,279,400 $13,680,306 $10,413,688 $11,874,118 3 Total Planned CIP $34,374,900 $10,279,400 $13,680,306 $10,413,688 $11,874,118 4 5 CIP Execution
6 CIP Execution Factor 70% 70% 70% 70% 70%
7 Executed CIP $24,062,430 $7,195,580 $9,576,214 $7,289,582 $8,311,883 8 Non-Executed CIP $10,312,470 $3,083,820 $4,104,092 $3,124,106 $3,562,235 9 10 Executed CIP by Funding Source
11 Pay-as-you-go $24,062,430 $7,195,580 $9,576,214 $7,289,582 $8,311,883 12 Grant Funded $0 $0 $0 $0 $0
13 Debt Funded $0 $0 $0 $0 $0
14 Total Executed CIP $24,062,430 $7,195,580 $9,576,214 $7,289,582 $8,311,883
Figure 3-1: Capital Improvement Plan Summary
12 CITY OF THOUSAND OAKS
3.5. Debt Service
The City’s Wastewater Enterprise retired its outstanding debt in FY 2022 -23, which was associated with a Clean Water State Revolving Fund Loan. No new debt is anticipated to be issued over the study period to finance CIP projects. Therefore, no debt service payments are included in Raftelis’ financial plan projections (see Table 3-9).
Table 3-9: Debt Service
A B C D E F
Line Debt Service FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 1 Existing Debt Service $0 $0 $0 $0 $0
2 Proposed Debt Service $0 $0 $0 $0 $0
3 Total $0 $0 $0 $0 $0
3.6. Reserve Policy
A reserve policy is a written document that provides a basis for a wastewater utility to cope with unanticipated reductions in revenues, fluctuations in costs of providing services, asset failure s, and natural disasters. It provides guidelines for sound fi nancial management with an overall long -range perspective to maintain financial solvency and mitigate financial risks. A sound policy also sets funds aside for routine repair and replacement of capital assets as they age and for new capital projects. Adopt ing and adhering to a sustainable reserve policy enhances financial management transparency and may help to achieve or maintain a specific credit rating for future debt issues.
The appropriate amount of reserves and reserve types are determined by various factors, such as the size of the operating budget, the amount of debt, the type of rate structure, the frequency of customer billing, and the risk of natural disasters. Thus, most reserves tend to fall into the following categories: operating, rate stabilization, capital, and emergency reserves. The City currently maintains three reserves for the Wastewater Enterprise. Raftelis recommends that the City maintain these three existing reserve policies described below.
Operating Reserve Target (Fund 621)
The purpose of an operating reserve is to provide working capital to support the utility’s operation, maintenance, and administration. From a risk management perspective, the operating reserve supports the Wastewater Enterprise’s cash flow needs during normal operations and ensures that operations can continue should there be significant events that impact cash flows. Raftelis recommends that the Ci ty maintain its existing Wastewater Enterprise operating reserve target of 90 days cash ( i.e., approximately 25% of annual O&M expenses) to ensure adequate working capital for operating expenses.
Capital Reserve Target (Fund 624)
Capital reserves are used to fund future obligations necessary for maintaining reliable infrastructure. Because wastewater utilities are highly capital -intensive, it is important to accurately estimate long -term CIP costs and develop a reserve to fund the repair and eventual replacement of the system assets and new capital projects. Raftelis recommends that the City maintain its existing Wastewater Enterprise capital reserve target, equal to two years of annual average five-year CIP. This reserve target is intended to ensure that the City has cash reserves on hand to award construction contracts flexibly and efficiently and to reduce the potential need for debt financing of CIP projects.
202 4 WASTEWATER ENTERPRISE FINANCIAL PLAN UPDATE 13 Emergency Reserve Target (Fund 624)
The purpose of an emergency reserve is to allow the utility to provide uninterrupted service after a fiscal emergency, natural disaster, or facility failure. An emergency reserve decreases risk by recognizing the high capital costs of facilities and setting aside adequate funds to restore service after an unanticipated event or replace an essential facility. Raftelis recommends that the City maintain its existing Wastewater Enterprise emergency reserve target, equal to the replacement cost of the wastewater system’s most critical assets (the chlor ine contact chamber and filter influent pumps). Raftelis recommends that this reserve target be reevaluated periodically as the wastewater system ages.
Wastewater Enterprise Reserve Targets
Table 3-10 summarizes the recommended reserve polic ies and associated FY 2023-24 reserve target levels for the Wastewater Enterprise’s operating, capital, and emergency reserves . Table 3-11 shows annual reserve target levels for each year of the study period.
Table 3-10: Reserve Policies
A B C
Line Reserve Reserve Target
FY 2023-24
Reserve Target ($)
1 Fund 621 - Wastewater Operating
2 Operating 25% of O&M expenses $5,495,856
3 Fund 624 - Wastewater Capital
4 Capital Two years of annual average five-year CIP $22,574,275 5 Emergency
Replacement Cost of Chlorine Contact
Chamber and Filter Influent Pumps (most
critical asset)
$3,518,943
6 Total $31,589,074
Table 3-11: Reserve Targets
A B C D E F
Line Reserves FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 1 Operating Reserve $5,495,856 $5,462,908 $5,495,691 $5,653,919 $5,816,760 2 Capital Reserve $22,574,275 $22,574,275 $22,574,275 $22,574,275 $22,574,275 3 Emergency Reserve $3,518,943 $3,624,511 $3,733,246 $3,845,244 $3,960,601 4 Total $31,589,074 $31,661,694 $31,803,213 $32,073,438 $32,351,636
3.7. Status Quo Financial Plan
To evaluate the need for future rate increases, Raftelis first developed a status quo financial plan. The status quo financial plan assumes that current FY 2023-24 rates remain unchanged over the five-year study period. Table 3-12 combines projected Wastewater Enterprise rate revenues (from Table 3-5), miscellaneous revenues (from Table 3-6), O&M expenses (from Table 3-7), CIP expenses (from Table 3-8), and debt service (from Table 3-9) to project cash flow, cash reserve levels, and debt service coverage ratios . The status quo financial plan shows that without any rate increases over the next five years , the Wastewater Enterprise is projected to fail to meet its total reserve target beginning in FY 2024-25 and to deplete its cash reserves severely by FY 2027-28.
14 CITY OF THOUSAND OAKS
Table 3-12: Status Quo Financial Plan
A B C D E F
Line Description FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 1 Revenues
2 Revenue from Existing Rates $20,808,971 $20,879,651 $20,950,681 $21,022,064 $21,093,802 3 Revenue Adjustments $0 $0 $0 $0 $0
4 Miscellaneous Revenue2 $2,935,200 $2,940,200 $2,784,824 $2,552,281 $2,364,103 5 Total Revenues $23,744,171 $23,819,851 $23,735,504 $23,574,345 $23,457,904 6 7 O&M Expenses
8 Salaries & Benefits $8,552,794 $8,917,685 $9,203,051 $9,497,549 $9,801,470 9 Other O&M $13,430,632 $12,933,946 $12,779,714 $13,118,128 $13,465,570 10 Total O&M Expenses $21,983,426 $21,851,631 $21,982,765 $22,615,677 $23,267,040 11 12 Net Revenues3 $1,760,745 $1,968,220 $1,752,739 $958,668 $190,864 13 14 Debt Service
15 Existing Debt Service $0 $0 $0 $0 $0
16 Proposed Debt Service $0 $0 $0 $0 $0
17 Total Debt Service $0 $0 $0 $0 $0
18 19 CIP Expenses
20 Pay-as-you-go $24,062,430 $7,195,580 $9,576,214 $7,289,582 $8,311,883 21 Grant Funded $0 $0 $0 $0 $0
22 Debt Funded $0 $0 $0 $0 $0
23 Total CIP Expenses $24,062,430 $7,195,580 $9,576,214 $7,289,582 $8,311,883 24 25 Net Cash Flow4 ($22,301,685) ($5,227,360) ($7,823,475) ($6,330,914) ($8,121,019) 26 27 Cash Reserves
28 Beginning Balance $56,281,307 $33,979,622 $28,752,262 $20,928,787 $14,597,873 29 Net Cash Flow ($22,301,685) ($5,227,360) ($7,823,475) ($6,330,914) ($8,121,019) 30 Ending Balance $33,979,622 $28,752,262 $20,928,787 $14,597,873 $6,476,854 31 Target Balance $31,589,074 $31,661,694 $31,803,213 $32,073,438 $32,351,636 32 Target Balance Check Above Below Below Below Below
33 34 Debt Coverage
35 Projected Debt Coverage5 N/A N/A N/A N/A N/A
36 Target Debt Coverage 1.25 1.25 1.25 1.25 1.25
37 Debt Coverage Check N/A N/A N/A N/A N/A
2 Miscellaneous revenue is slightly lower than the amount shown in Table 3-6 due to decreased interest income under the status quo financial plan.
3 = [Line 5] – [Line 10]
4 = [Line 12] – [Line 17] – [Line 20]
5 = [Line 12] ÷ [Line 17]
202 4 WASTEWATER ENTERPRISE FINANCIAL PLAN UPDATE 15
3.8. Proposed Financial Plan
Recommendations and Proposed Revenue Adjustments
The status quo financial plan demonstrates that current wastewater rates are insufficient to support the Wastewater Enterprise’s financial needs over the next five years. To ensure that the Wastewater Enterprise generates sufficient revenues to adequately recover its operating and cap ital expenses while maintaining cash reserves at or above the target reserve level by the end of the five-year period, Raftelis recommends 11% annual rate increases (i.e., revenue adjustments) beginning in FY 2024-25. The revenue adjustments are assumed to be implemented on July 1 of each fiscal year, as shown in Table 3-13. Raftelis evaluated various financial plan scenarios with City staff to develop the recommended revenue adjustments below. Key factors influencing the need for significant rate increases include:
Operating cost increases: O&M expenses continue to increase yearly due to inflationary pressures, which have been significantly higher over the past few years across the global economy . Notably, budgeted chemical costs more than doubled between FY 2022-23 and FY 2023-24.
Substantial capital needs : Total five -year CIP ex penses amount to $56.4M, which represents an 11% increase in CIP relative to the prior financial plan update in 2021. All CIP expen ses are assumed to be funded by rates and reserves, resulting in the need for the Wastewater Enterprise to generate increased revenue from rates.
Low existing rates: The City’s existing wastewater rates are substantially lower than other public wastewater utilities in Ventura County and the surrounding area (see Appendix B for residential bill comparisons to neighboring utilities). This suggests that current rates may be lower than what is necessary to support typical wastewater system needs in the Ventura County region.
Table 3-13: Proposed Revenue Adjustments
A B C
Line Fiscal Year Effective
Month
Revenue
Adjustment
1 FY 2023-24 July 2023 3.0%6
2 FY 2024-25 July 2024 11.0%
3 FY 2025-26 July 2025 11.0%
4 FY 2026-27 July 2026 11.0%
5 FY 2027-28 July 2027 11.0%
Proposed Financial Plan
The proposed financial plan is shown in Table 3-14. Revenue from existing rates (Line 2) represents projected rate revenues in the absence of any rate increases. Revenue adjustments (Line 3) represent the cumulative increase in rate revenues resulting from the proposed 11% revenue adjustments . Under the proposed financial plan, ending cash res erves are projected to fall slightly below the reserve target in FY 2024 -25 through FY 2026 -27 before building back up to above the reserve target level in FY 2027-28. This is primarily due to a significant drawdown in cash reserves in the first year to fund substantial CIP projects. Raftelis and City staff determined that the magnitude of revenue adjustments needed to maintain cash reserve levels above the target level in all years would result in unacceptably high bill impacts to the City’s wastewaters customers.
6 3% wastewater rate increases in FY 2023 -24 were proposed during the 2022 Wastewater Financial Plan Update and have already been adopted and implemented.
16 CITY OF THOUSAND OAKS
Table 3-14: Proposed Financial Plan
A B C D E F
Line Description FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 1 Revenues
2 Revenue from Existing Rates $20,808,971 $20,879,651 $20,950,681 $21,022,064 $21,093,802 3 Revenue Adjustments $0 $2,296,762 $4,862,653 $7,728,362 $10,928,074 4 Miscellaneous Revenue $2,935,200 $2,940,200 $2,853,092 $2,767,114 $2,815,037 5 Total Revenues $23,744,171 $26,116,612 $28,666,426 $31,517,540 $34,836,913 6 7 O&M Expenses
8 Salaries & Benefits $8,552,794 $8,917,685 $9,203,051 $9,497,549 $9,801,470 9 Other O&M $13,430,632 $12,933,946 $12,779,714 $13,118,128 $13,465,570 10 Total O&M Expenses $21,983,426 $21,851,631 $21,982,765 $22,615,677 $23,267,040 11 12 Net Revenues7 $1,760,745 $4,264,981 $6,683,660 $8,901,864 $11,569,873 13 14 Debt Service
15 Existing Debt Service $0 $0 $0 $0 $0
16 Proposed Debt Service $0 $0 $0 $0 $0
17 Total Debt Service $0 $0 $0 $0 $0
18 19 CIP Expenses
20 Pay-as-you-go $24,062,430 $7,195,580 $9,576,214 $7,289,582 $8,311,883 21 Grant Funded $0 $0 $0 $0 $0
22 Debt Funded $0 $0 $0 $0 $0
23 Total CIP Expenses $24,062,430 $7,195,580 $9,576,214 $7,289,582 $8,311,883 24 25 Net Cash Flow8 ($22,301,685) ($2,930,599) ($2,892,553) $1,612,282 $3,257,991 26 27 Cash Reserves
28 Beginning Balance $56,281,307 $33,979,622 $31,049,023 $28,156,470 $29,768,751 29 Net Cash Flow ($22,301,685) ($2,930,599) ($2,892,553) $1,612,282 $3,257,991 30 Ending Balance $33,979,622 $31,049,023 $28,156,470 $29,768,751 $33,026,742 31 Target Balance $31,589,074 $31,661,694 $31,803,213 $32,073,438 $32,351,636 32 Target Balance Check Above Below Below Below Above
33 34 Debt Coverage
35 Projected Debt Coverage9 N/A N/A N/A N/A N/A
36 Target Debt Coverage 1.25 1.25 1.25 1.25 1.25
37 Debt Coverage Check N/A N/A N/A N/A N/A
7 = [Line 5] – [Line 10]
8 = [Line 12] – [Line 17] – [Line 20]
9 = [Line 12] ÷ [Line 17]
202 4 WASTEWATER ENTERPRISE FINANCIAL PLAN UPDATE 17 The proposed financial plan is summarized below in graphical format. Figure 3-2 compares current and proposed revenues versus various funding needs (note that negative reserve funding represents a drawdown of cash reserves).
Figure 3-3 compares projected ending cash reserves versus the total reserve target each year.
Figure 3-2: Proposed Financial Plan
Figure 3-3: Projected Ending Cash Balance
18 CITY OF THOUSAND OAKS
4. Proposed Rates
4.1. Proposed Wastewater Rates
Although the financial plan spans a five-year period, the City only adopts wastewater rates for two years at a time.
Therefore, proposed wastewater rates are presented below for FY 2024-25 and FY 2025-26 only. All proposed rates are assumed to be implemented in July of each fiscal year. Proposed revenue adjustments beyond FY 2025 -26 are for planning purposes only and will be reevaluated during the next two-year wastewater rate update.
The current FY 2023-24 monthly charges per Service Unit are proposed to be increased by 11% per year (per Table 3-13) and rounded up to the nearest cent to determine the proposed monthly charges shown below in Table 4-1.
Each single family residential customer is charged based on one Service Unit . Therefore, single family residential customers within city limits will experience a $3.50 increase in monthly wastewater charges in FY 2024-25 and an additional $3. 89 monthly increase in FY 2025 -26. Note that since FY 2021 -22, wastewater service charges for single family residential customers are now collected by the City in two installments per year via the Ventura County Property Tax Roll.
Table 4-1: Proposed Wastewater Rates
A B C D
Line Description
Current
FY 2023-24
(July 2023)
Proposed
FY 2024-25
(July 2024)
Proposed
FY 2025-26
(July 2025)
1 Service Charge (All Customers)
2 Monthly Charge per Service Unit $31.78 $35.28 $39.17
3 Difference ($) $3.50 $3.89
4 5 Outside City Surcharge (Outside City Customers Only) 6 Monthly Charge per Service Unit $0.44 $0.49 $0.55
7 Difference ($) $0.05 $0.06
202 4 WASTEWATER ENTERPRISE FINANCIAL PLAN UPDATE 1
APPENDICES
APPENDIX A: DETAILED FIVE-YEAR PLANNED CIP PROJECTS
A B C D E F G
Line Capital Improvement Plan Project No. FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 1 Municipal Service Center Parking Lot Repaving CI5459 $0 $0 $397,838 $0 $0 2 Emergency Communications Network CI5549 $25,000 $0 $0 $0 $0 3 Hill Canyon Wastewater Treatment Plant Fire Alarm &
System Upgrade CI5582 $500,000 $0 $0 $0 $0
4 CARRYOVER - Hill Canyon Wastewater Treatment Plant
Fire Alarm & System Upgrade CI5582 $50,000 $0 $0 $0 $0
5 Municipal Service Center Fire Alarm & System Upgrade CI5584 $75,000 $0 $0 $0 $0 6 CARRYOVER - Municipal Service Center Fire Alarm &
System Upgrade CI5584 $12,500 $0 $0 $0 $0
7 CARRYOVER - Municipal Service Center Microgrid Project CI5585 $150,000 $0 $0 $0 $0 8 CARRYOVER - Hill Canyon Treatment Plant Mechanical
System Upgrades CI5647 $650,000 $0 $0 $0 $0
9 Municipal Service Center Storm Water Quality
Improvements CI5661 $120,000 $0 $0 $0 $0
10 Municipal Service Center Security Upgrades CI5696 $90,000 $0 $0 $0 $0 11 Municipal Service Center Emergency Power Upgrades CI5697 $30,000 $154,500 $0 $0 $0 12 Electric Vehicle Charging at Hill Canyon Treatment Plant CI5709 $191,000 $0 $0 $0 $0 13 Electric Vehicle Charging at the Municipal Service Center CI5710 $111,900 $0 $0 $0 $0 14 Solar Canopy Expansion at the Municipal Service Center CI5718 $0 $0 $0 $546,364 $0 15 Hill Canyon Treatment Plant and Water Facilities Pavement Preservation MI2626 $250,000 $0 $0 $0 $0
16 Conejo Canyons Bridge at Hill Canyon Treatment Plant CI5527 $50,000 $0 $0 $0 $0 17 Bus and Car Wash CI5468 $215,000 $0 $0 $0 $0
18 CARRYOVER - Bus and Car Wash CI5468 $22,500 $0 $0 $0 $0 19 CARRYOVER - Interceptor Capital Improvement Program
Phase V - Unit Y2 CI5328 $120,000 $30,900 $31,827 $32,782 $33,765 20 Hill Canyon Treatment Plant Facility Stormwater Diversion CI5427 $950,000 $0 $0 $0 $0 21 CARRYOVER - Hill Canyon Treatment Plant Facility
Stormwater Diversion CI5427 $1,550,000 $0 $0 $0 $0
22 Municipal Service Center/Hill Canyon Treatment Plant Access Road CI5437 $0 $257,500 $2,652,250 $0 $0
23 Hill Canyon Treatment Plant Bioreactors Electrical Upgrades CI5440 $600,000 $0 $0 $0 $0 24 CARRYOVER - Hill Canyon Treatment Plant Bioreactors
Electrical Upgrades CI5440 $940,000 $0 $0 $0 $0
25 Fats, Oils, and Grease Station CI5441 $100,000 $0 $0 $0 $0 26 CARRYOVER - Fats, Oils, and Grease Station CI5441 $4,300,000 $0 $0 $0 $0 27 Unit W Improvements CI5445 $1,700,000 $0 $0 $0 $0
A B C D E F G
Line Capital Improvement Plan Project No. FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 28 CARRYOVER - Unit W Improvements CI5445 $1,374,000 $0 $0 $0 $0 29 CARRYOVER - Hill Canyon Treatment Plant Solar System Purchase CI5523 $1,500,000 $0 $0 $0 $0
30 Wastewater Pipe and Maintenance Hole Relining FY 2025-28 CI5532 $0 $0 $1,591,350 $1,639,091 $1,688,263 31 Cogeneration Facility Upgrade CI5613 $1,200,000 $0 $0 $0 $0 32 CARRYOVER - Cogeneration Facility Upgrade CI5613 $2,430,000 $0 $0 $0 $0 33 Digester Backup Boiler Upgrade CI5615 $300,000 $0 $0 $0 $0 34 CARRYOVER - Digester Backup Boiler Upgrade CI5615 $120,000 $0 $0 $0 $0 35 Flow Equalization Basin (FEB) Mechanical Mixing CI5617 $0 $618,000 $0 $0 $0 36 Electrical Classification & Compliance Upgrades CI5622 $450,000 $2,626,500 $0 $0 $0 37 Solar Plant Upgrade and Optimization - Phase 1 CI5625 $0 $0 $2,121,800 $0 $0 38 Solar Plant Upgrade and Optimization - Phase 2 CI5626 $0 $0 $0 $0 $2,251,018 39 CARRYOVER - In-Plant Variable Frequency Drives (VFDs) Replacements CI5629 $360,000 $0 $0 $0 $0
40 In-Plant Motor Control Center (MCC) Upgrades CI5630 $500,000 $0 $0 $0 $0 41 CARRYOVER - In-Plant Motor Control Center (MCC)
Upgrades CI5630 $337,000 $0 $0 $0 $0
42 CARRYOVER - In-Plant Electric Operators Assessment and Replacement CI5633 $264,000 $0 $0 $0 $0
43 In-Plant Meter Replacement CI5634 $694,000 $0 $0 $0 $0 44 In-Plant Pump Replacements; South RAS Pumps CI5636 $0 $0 $106,090 $764,909 $0 45 In-Plant Valve Assessment and Repairs CI5637 $130,000 $618,000 $0 $0 $0 46 Permeate Treatment Upgrades CI5638 $600,000 $0 $0 $0 $0 47 CARRYOVER - Permeate Treatment Upgrades CI5638 $233,000 $0 $0 $0 $0 48 Secondary Process Sensors CI5639 $0 $324,450 $0 $0 $0 49 Unit W - Pipe and Maintenance Hole Lining Project Phase II CI5641 $0 $360,500 $0 $218,545 $2,588,670 50 Wastewater Collection System Master Plan Implementation Projects Phase I CI5680 $0 $0 $265,225 $1,912,272 $0
51 Unit W Improvements - Phase II CI5681 $0 $257,500 $2,652,250 $0 $0 52 Biosolids Conveying and Storage Improvements CI5683 $900,000 $0 $0 $0 $0 53 Unit W Box Canyon Maintenance Hole Addition CI5684 $275,000 $0 $0 $0 $0 54 Hill Canyon Treatment Plant Rag-Bin Staging Area and Washout Bed Improvements CI5685 $125,000 $0 $0 $0 $0
55 Thousand Oaks Blvd Wastewater Pipe and Maintenance
Hole Lining CI5686 $4,650,000 $0 $0 $0 $0
56 Wastewater Collections System Master Plan Implementation Projects Phase II CI5687 $0 $0 $0 $273,182 $1,969,640
57 HCTP Slope Stabilization Project CI5736 $0 $242,050 $2,615,119 $0 $0
A B C D E F G
Line Capital Improvement Plan Project No. FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 58 Unit E Interceptor MI2515 $0 $0 $0 $327,818 $2,251,018 59 CARRYOVER - Collections Miscellaneous Repairs FY 2021- 23 MI2577 $373,000 $0 $0 $0 $0
60 CARRYOVER - Hill Canyon Treatment Plant Miscellaneous Repairs FY 2021-23 MI2585 $350,000 $0 $0 $0 $0
61 Lateral Inspections and Upgrades Unit W MI2586 $120,000 $0 $0 $0 $0 62 CARRYOVER - Lateral Inspections and Upgrades Unit W MI2586 $595,000 $0 $0 $0 $0 63 Collections Master Plan Update MI2589 $750,000 $0 $0 $0 $0 64 Hill Canyon Treatment Plant Tertiary Filters Rehabilitation MI2590 $330,000 $3,296,000 $0 $0 $0 65 CARRYOVER - Hill Canyon Treatment Plant Tertiary
Filters Rehabilitation MI2590 $290,000 $0 $0 $0 $0
66 South Plant Rehabilitation MI2591 $0 $0 $344,793 $2,458,636 $0 67 Collections Misc. Repairs FY 2023-25 MI2611 $500,000 $515,000 $0 $0 $0 68 Hill Canyon Treatment Plant Miscellaneous Repairs FY 2023-25 MI2612 $500,000 $515,000 $0 $0 $0
69 CARRYOVER - Bioreactor Basin 1 Concrete Rehab MI2618 $62,000 $0 $0 $0 $0 70 CARRYOVER - Hill Canyon Treatment Plant Piping,
Equipment Painting, and Coating MI2619 $640,000 $0 $0 $0 $0 71 On-Site Power Generation Upgrades MI2624 $0 $0 $0 $0 $135,061 72 Hill Canyon Treatment Plant Electrical Classification & Compliance Study MI2625 $100,000 $0 $0 $0 $0
73 CARRYOVER - Hill Canyon Treatment Plant Electrical
Classification & Compliance Study MI2625 $190,000 $0 $0 $0 $0 74 In-Plant Piping Assessment and Repairs MI2642 $0 $0 $0 $601,000 $0 75 Water Resources Project MI2643 $200,000 $0 $0 $0 $0
76 Collections Misc. Repairs FY 2025-2028 MI2644 $0 $0 $371,315 $382,454 $393,928 77 Collections Square Maintenance Hole Upgrades MI2645 $30,000 $206,000 $0 $0 $0 78 Hill Canyon Treatment Plant Miscellaneous Repairs FY 2025-28 MI2646 $0 $0 $424,360 $437,091 $450,204
79 Sewer System Management Plan (SSMP) 2024 Audit MI2647 $100,000 $0 $0 $0 $0 80 Sewer System Management Plan (SSMP) 2026 and 2028
Audits MI2648 $0 $0 $106,090 $0 $112,551
81 Sanitary Sewer Management Plan (SSMP) 2025 Update MI2649 $0 $257,500 $0 $0 $0 82 Hill Canyon Treatment Plant Record Drawings Electronic Mapping MI2650 $0 $0 $0 $819,545 $0
83 Total Planned CIP $34,374,900 $10,279,400 $13,680,306 $10,413,688 $11,874,118
APPENDIX B: SINGLE FAMILY RESIDENTIAL BILL COMPARISON TO NEIGHBORING AGENCIES Notes:
1. All bills shown are monthly.
2. The City of Thousand Oaks current bill is based on FY 2023-24 current rates.
3. The City of Thousand Oaks proposed bill is based on FY 2024-25 proposed rates.
4. All other agency bills based on current rates as of July 2023 and assume 12 HCF/month of billed wastewater flows for any volumetric rate components.
FIN:330-10\tt\H:\COMMON\Council\2023\Public Services\091223 Utility Rate Study FIN Plans Att 2.pdf