HomeMy WebLinkAbout14, WS Prop 218 Water Rate ChangesWorkshop Item # 14
Discussion of the Process for
Adopting New Water Rates
September 18, 2013
Background / History
• California's Proposition 218
— Adopted in 1996
— Effective 1997
— "Right to Vote for Taxes Act"
— Courts ruled that Prop 218 includes water utility rate changes
• FY14 & FY15 Budget
— Modest water rate increase needed in FY14 & FY15
— Board authorized HDR to perform rate and cost of service study
— HDR is scheduled to present results on November 6
— Must follow Prop 218
2
New Information
• Prop 218 Requirements
— Rates must be based on actual cost of service
— Notice must be mailed to all rate payers
— Notice may be mailed to all property owners
— Public hearing must be held after 45 days of notice
— If majority of rate payers protest, then rates are rejected
— Rates can become effective 30 days after public hearing
3
Effect of Water Rate Changes and Meter Surcharge
Average Meter
Residential
$ 6 1 w A
$ n `
' 'MrAr 1, . 41
3%
$ 2.
$0.
$ 2. 2
4%
$62.62
$0.00
$62.62
r %
$63.22
$0.00
$63.22
0
Schedule
• October 16
— Present draft summary of FY14 & FY15 Budget
— Present draft of 10-year Financial Master Plan
— Propose water rate increase
• November 6
— HDR to present updated water rate and cost of service study
— Consider approving water rate increase subject to public
hearing
• November 8
— Mail notices of public hearing to customers and property
owners
— Advertise public hearing in local newspaper
5
Schedule
• January 15
— Hold a public hearing regarding proposed water rates
— Consider adopting ordinance for new water rates
• February 14
— Adopted water rates can become effective
— Effective for utility bills printed after March 15
a
Fiscal Impact
• This workshop is part of the overall budget process that will
affect the District's revenue and spending for the next two
years
7
Recommendation
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