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HomeMy WebLinkAbout15 Consideration of 2017 Water Rates ACTION ITEM #15Fiscal Year 2017 Water RatesConsideration of Approving the Fiscal Year 2017 Water RatesConsideration of Approving the December 7, 2016 Consideration of FY17 Water Rates the Board prior to implementation Per the Board’s direction all annual adjustments will be reviewed by •rates for FY16 through FY2001 was approved August 19, 2015 setting -District Ordinance 2015•BACKGROUND / HISTORY Consideration of FY17 Water Rates Consideration of FY17 Water Rates Provide customers advanced notice for future years•Financial Master Plan projections •Capital Improvement Plan projections•California Proposition 218 to achieve The 5 year rate increases were established in compliance with •reservesorder to complete capital projects and maintain adequate cash and report confirming the District would need to annually raise rates in The 2015 Water Rate Study results were consistent with the 2013 •In 2015 HDR Engineering updated the 2013 Water Rate Study•BACKGROUND / HISTORY Consideration of FY17 Water Rates Consideration of FY17 Water Rates operations based on future economic forecastsare anticipated to be required to restore reserves and maintain The remaining 3% annual increases forecast for FY18 through FY20 •capital improvement projectsMaintain the accelerated pipeline replacement program and other •requirementsSupport ongoing State legislative and regulatory compliance •The FY16 and FY17 rate increases were established specifically to •BACKGROUND / HISTORY Consideration of FY17 Water Rates NEW INFORMATION Planpgrades as outlined in the Capital Improvement uPump Station •District Pipeline Replacement Program•been included in balancing the FY17 Budget for the following:This increase has 01. -5% rate increase represented in Ordinance 2015FY17 revenue will increase by approximately $580,000 based on the •Consideration of FY17 Water RatesConsideration of FY17 Water Rates NEW INFORMATION minimum goal of $5 million by the close of FY17as the Water Utility reserves are projected to just meet the District’s Staff does not recommend utilizing additional funding from reserves •Consideration of FY17 Water RatesConsideration of FY17 Water Rates NEW INFORMATION in ratesCustomers will receive 30 days notice of change •FY17 rates will be effective on bills printed after January 1, 2017•Consideration of FY17 Water RatesConsideration of FY17 Water Rates FISCAL IMPACT District’s water revenue by approximately $580,00001 will increase the -FY17 rates as described in Ordinance 2015•Consideration of FY17 Water RatesConsideration of FY17 Water Rates RECOMMENDATION 01-2015Direct staff to implement the FY17 water rates as listed in Ordinance •of FY17 Water RatesConsideration of FY17 Water RatesConsideration