HomeMy WebLinkAbout14-Discussion of the Process for Adopting New Water RatesMQ
TRUC EE DCON 1E
Public Utility District
WORKSHOP
To:
Board of Directors
From:
Robert Mescher
Date:
September 18, 2013
Subject: Discussion of the Process for Adopting New Water Rates
1. WHY THIS MATTER IS BEFORE THE BOARD
The purpose of this workshop is to discuss the process for adopting new water rates.
2. HISTORY
Proposition 218 was adopted in 1996 and became effective in 1997. It is also known
as the "Right to Vote on Taxes Act."
As indicated in the first budget workshop on September 4th, staff anticipates the need
to raise water rates about 3% in FY14 and 3% in FY15.
3. NEW INFORMATION
The adoption of new water rates is subject to the requirements of Proposition 218. The
main requirements are:
• Rates must be based on actual cost of service;
• District must mail a notice to all rate payers and may mail a notice to property
owners of the proposed change in rates;
• District must hold a public hearing at least 45 days after the mailing of the
notices; and
• Proposed change in rates is considered rejected if written protests are received
from a majority of the affected property owners; and if not rejected
• Rates can become effective 30 days after the public hearing and adoption of an
ordinance.
On August 21st, the Board authorized a contract for HDR to update the District's 2009
rate and cost of service study. HDR is scheduled to present the results at the
November 6th board meeting.
Therefore the following schedule has been developed for implementation of new rates
in FY14 and FY15:
October 16
• Present a draft summary of the FY14 and FY15 Budget
• Present a draft 10-year Financial Master Plan
• Propose water rate increase
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• Present an updated water rate study
• Approve the water rate increase subject to a public hearing
November 8
• Mail notices to customers and parcel owners of proposed rates and of public
hearing
• Advertise in local newspaper of proposed rates and of public hearing
January 15
• Hold a public hearing regarding proposed water rates
• Adopt an ordinance for the new water rates
February 14
• New rates can become effective after this date
4. FISCAL IMPACT
This workshop is part of the overall budget process that will affect the District's
spending for the next two fiscal years.
5. RECOMMENDATION
Receive this report and provide comments to staff.
Robert Mescher
Administrative Services Manager
7
Michael D. Holley
General Manager