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HomeMy WebLinkAbout#12 Annual Electric Water Standby Charges AGENDA ITEM #12 Public Utility District m MEETING DATE: March 6, 2024 TO: Board of Directors FROM: Michael Salmon, Chief Financial Officer SUBJECT: Consideration of Scheduling a Public Hearing Related to Adoption of the Annual Electric and Water Standby Charges APPROVED BY: Z- Brian C. Wright, General Manager RECOMMENDATION: Schedule a public hearing at the regularly scheduled District Board Meeting on April 3, 2024 at 6:00 PM, or as soon thereafter, for the purpose of receiving input on the adoption of annual Electric and Water Standby Charges. BACKGROUND: Board action is required annually to adopt electric and water standby charges. This process begins by scheduling a public hearing to renew the existing electric and water standby charges. Standby charges have been assessed on vacant parcels in the District since 1975. These annual charges recoup the District's operating and maintenance costs of the electric and water distribution facilities from parcel owners who benefit from their vacant lot being in close proximity to the distribution facilities. Standby rates have not been modified in many years. The current Electric Standby Charge is $20.00 per year for each parcel one acre or larger, or $10.00 per year for each parcel less than one acre. The current Water Standby Charge is $80.00 per parcel per year. The Board must formally adopt the standby charges each year. ANALYSIS AND BODY: Staff proposes a Public Hearing be held to consider renewing the existing Electric and Water Standby Charges on vacant parcels in the District, effective for the 2024-2025 property tax year. GOALS AND OBJECTIVES: District Code 1 .05.020 Objectives: 1. Responsibly serve the public. Page 1 of 2 Page 26 of 114 3. Provide reliable and high quality water supply and distribution system to meet current and future needs. 4. Provide reliable and high quality electric supply and distribution system to meet current and future needs. 6. Manage the District in an effective, efficient and fiscally responsible manner. District Code 1 .05.030 Goals: 1. Manage for Financial Stability and Resiliency 3. Engage with our customers and communities in a welcoming and transparent way to identify opportunities. FISCAL IMPACT: The estimated standby revenue for 2024-2025 is $16K for Electric and $95K for Water, consistent with budgeted revenue in the approved FY24 Budget. ATTACHMENTS: None Page 2 of 2 Page 27 of 114