HomeMy WebLinkAbout12 Consideration of FY19 Water Rates
ACTION ITEM #12FY19 Water RatesConsideration of Approving the FY19 Water RatesConsideration of Approving the November 7, 2018
Consideration of FY19 Water Rates Provide customers advance 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 FY19 Water Rates
Consideration of FY19 Water Rates forecasts while also maintaining reserve levelswere required to maintain operations based on future economic The remaining 3% annual increases forecast
for FY18 through FY20 •improvement projectsMaintain the pipeline replacement program and other capital •requirementsSupport ongoing State legislative and regulatory compliance •specifically
to The FY16 and FY17 rate increases of 6% and 5% were established •BACKGROUND / HISTORY Consideration of FY19 Water Rates
Consideration of FY19 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 FY19 Water Rates
NEW INFORMATION the District’s minimum goal of $5 millionreserves as the Water Utility reserves are projected to remain just at Staff does not recommend utilizing additional funding
from •3% maximum rateFY19 revenue will increase by approximately $286,000 based on the •Water RatesFY19 Water RatesFY19
NEW INFORMATION This increase represents an additional $2.20 per month•approximately $73.30The average monthly bill for metered residential customers is •Customers will receive 30 days
notice of change in rates•FY19 rates will be effective on bills printed after January 1, 2019•Water RatesFY19 Water RatesFY19
FISCAL IMPACT replacement project for FY19 with FY20 in 2020Staff is currently anticipating combining the planned pipeline •FY19 Approved Budget includes minimal funding of $20K to reserves
•assumption in the Financial Master Plan This increase is included in the approved FY19 Budget and is an •District’s water revenue by approximately $286,00001 will increase the -FY19
rates as described in Ordinance 2015•Water RatesFY19 Consideration of Water RatesFY19 Consideration of
RECOMMENDATION 01-2015Direct staff to implement the FY19 water rates as listed in Ordinance •Water RatesFY19 of Consideration Water RatesFY19 of Consideration