HomeMy WebLinkAbout13, Water Rate Study and Prop 218 Process
WORKSHOP ITEM #13Study and Proposition 218 ProcessDiscussion on Potential Water Rate Study and Proposition 218 ProcessDiscussion on Potential Water Rate October 16, 2019
Water Rate Study and Proposition 218 Process Provide customers advance notice for future years•Financial Master Plan projections •Capital Improvement Plan projections•with California
Proposition 218 to achieve increases were established in compliance FY20 maximum rate –FY16 •reservescomplete capital projects and maintain adequate cash and confirming the District
would need to annually raise rates in order to 2015 Water Rate Study results were consistent with the 2013 report The •In 2015 HDR Engineering updated the 2013 Water Rate Study•BACKGROUND
/ HISTORY Water Rate Study and Proposition 218 Process
NEW INFORMATION rate that exceeds that of inflationary expectationsGeneral repair, replacement, and operating costs continue to rise at a •in FY22regarding water conservation are expected
to be implemented starting unfunded State mandates –yet to be determined –Significant •generatorsharden the water system reliability with additional emergency Increasing operating risk
requires the Water Utility to continue to •improvementsgoing investment in capital -Reducing water loss requires on•Since 2015 there continues to be upward pressure on the District’s
•Water Rate Study and Proposition 218 ProcessWater Rate Study and Proposition 218 Process
Water Rate Study and Proposition 218 Process NEW INFORMATION July 2020–The timeline for a Water Rate study would be March 2020•April 2020–The timeline for the CIP Plan would be December
2019 •completeThe Water Rate Study is expected to take about three to four months to •The Capital Improvement Plan is expected to take about four to five months•and then proceeding
with a Water Rate StudyStaff is recommending a formal Capital Improvement Plan be established •cash and reserve goalseeting the Water Utility will be unable to meet the Board’s current
mYear Financial Plan reviewed at the October 2, 2019 Board -Per the Ten•Water Rate Study and Proposition 218 Process
Water Rate Study and Proposition 218 Process NEW INFORMATION of an OrdinanceRates can become effective 30 days after a Public Hearing and adoption •rejectedreceived from a majority of
the affected property owners and if not Proposed change in rates is considered rejected if written protests are •noticesA Public Hearing must be held at least 45 days after the mailing
of the •in ratesThe District must mail a notice to all rate payers of the proposed change •District would then have to comply with Proposition 218 as followsIf the Board decides to
move forward with water rate changes the •Water Rate Study and Proposition 218 Process
Water Rate Study and Proposition 218 Process NEW INFORMATION New rates would become effective the first bill printed after January 1•Consideration to adopt an Ordinance for the new rates–October
7, 2020 •Hold a Public Hearing regarding proposed rates–October 7, 2020 •Advertise in local newspaper of proposed rates and Public Hearing•owners of proposed rates and of the Public
HearingMail notices to customers and parcel –August 14, 2020 (on or before) •a Public HearingConsideration to approve water rate changes subject to –August 5, 2020 •following draft
timeline in compliance with Prop 218If staff received direction for a rate change staff proposes the •Water Rate Study and Proposition 218 Process
Water Rate Study and Proposition 218 Process FISCAL IMPACT take to implement changes to water ratesThis item is intended to be informative in regards to what it would •There is no direct
fiscal impact associated with this Workshop•Water Rate Study and Proposition 218 Process
RECOMMENDATION to staffinput and direction Provide •Water Rate Study and Proposition 218 ProcessWater Rate Study and Proposition 218 Process