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Water Utility Finances & Rates 37
<br /> Water & Sewer Financial Plans & Rate Studies
<br />Table W8: Cost Recovery from Fixed vs. Variable Rates
<br />
<br />2.13.2 Fixed Rate Derivation
<br />Proposed fixed meter charges are designed to recover costs from each meter in proportion to meter
<br />capacity and the associated demand placed on the water system by each meter size. The following
<br />table calculates fixed meter charges for the fiscal year 2018/19 by dividing the total costs allocated
<br />for fixed rate recovery by the total number of 5/8‐inch meter equivalents projected to be served by
<br />the City, with a minor adjustment to account for delinquencies.
<br />
<br />Projected
<br />2018/19FixedVariableFixedVariable
<br />EXPENSES
<br />Operating & Maintenance
<br />Water Customer Service & Admin2,437,000100%0%2,437,0000
<br />Water Supply & Distribution5,000,000100%0%5,000,0000
<br />SFWD Water Purchases16,352,0000%100%016,352,000
<br />SFWD Fixed Charges/BAWSCA Fees566,0000%100%0566,000
<br />BAWSCA Bond Surcharge1,550,0000%100%01,550,000
<br />Water Resources Management1,433,00020%80%286,6001,146,400
<br />Recycled Water Operations1,069,00020%80%213,800855,200
<br />Right‐of‐Way Rent2,263,000100%0%2,263,0000
<br />Revenue Services & Admin Svcs (Net)1,029,000100%0%1,029,0000
<br />Meter Replacement Program (AMI Meters)750,000100%0%750,0000_____________________________________________
<br /> Subtotal32,449,00037%63%11,979,40020,469,600
<br />Debt Service (Recycled Water Project)4,423,00020%80%884,6003,538,400
<br />Capital & Non‐Operating
<br />Annual Pay Go Capital Funding4,000,00050%50%2,000,0002,000,000
<br />Mtr Replacement Interfund Loan Repymt352,000100%0%352,0000_____________________________________________
<br /> Subtotal4,352,00054%46%2,352,0002,000,000
<br />Total Expenses 41,224,00037%63%15,216,00026,008,000
<br />NET FUNDING REQUIRED FROM WATER RATES
<br />Total Expenses41,224,00037%63%15,216,00026,008,000
<br />Less Funding Sources Other Than Rates(614,000)100%0%(614,000)0
<br />Fund Reserve Target Contribution200,000100%0%200,0000_____________________________________________
<br />Net Funding Requirement from Water Rates40,810,00036%64%14,802,00026,008,000
<br />Cost Recovery %Cost Recovery $
<br />6.4.A. - Page 64
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