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HomeMy WebLinkAbout8 Consideration of FY20 Water Rates ACTION ITEM #FY20 Water RatesConsideration of Approving the FY20 Water RatesConsideration of Approving the 8 Consideration of FY20 Water Rates Provide customers advance notice for future years•Financial Master Plan projections •Capital Improvement Plan projections•California Proposition 218 to achieve In 2015 the 5 year rate increases were established in compliance with •complete capital projects and maintain adequate cash and reservesconfirming the District would need to annually raise rates in order to The 2015 Water Rate Study results were consistent with the 2013 report •In 2015 HDR Engineering updated the 2013 Water Rate Study•BACKGROUND / HISTORY Consideration of FY20 Water Rates Consideration of FY20 Water Rates forecasts while also maintaining operating cash and reserve levelsthrough FY20 were required for operations based on future economic The remaining 3% maximum annual increases forecast for FY18 •requirementsSupport ongoing State legislative and regulatory compliance •projectsimprovement Maintain the pipeline replacement program and other capital •specifically to The FY16 and FY17 rate increases of 6% and 5% were established •BACKGROUND / HISTORY Consideration of FY20 Water Rates Consideration of FY20 Water Rates the Board prior to implementation Per the Board’s direction all annual adjustments will be approved by •to exceed water rates for FY16 through FY2001 was approved August 19, 2015 setting not -District Ordinance 2015•BACKGROUND / HISTORY Consideration of FY20 Water Rates NEW INFORMATION below the goal levels set by the Boardthe Water Utility cash and reserve balances are projected to remain does not recommend utilizing additional funding from reserves as Staff •FY20 revenue would increase by approximately $388,000 •Staff is recommending the maximum 3% rate increase for FY20•Water RatesFY20 Water RatesFY20 NEW INFORMATION Customers would receive 30 days notice of change in rates•FY20 rates would be effective on bills printed after January 1, 2020•Water RatesFY20 Water RatesFY20 FISCAL IMPACT in the Financial Master Plan and is an assumption udget Bdraft FY20 This increase is included in the •District’s water revenue by approximately $388,00001 would increase the -FY20 rates as described in Ordinance 2015•Water RatesFY20 Consideration of Water RatesFY20 Consideration of RECOMMENDATION 01-2015Direct staff to implement the FY20 water rates as listed in Ordinance •Water RatesFY20 of Consideration Water RatesFY20 of Consideration