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33 <br />Water Rate Increases <br />Historical Rates Increases. The City’s most recent rate increase took effect in February, <br />2024. Table 9 below sets forth historical water rate increases since Fiscal Year 2017-18. <br />Table 9 <br />Historic Water Rate Increases <br />Fiscal Year <br />Average Rate <br />Increase <br />2017-18 6.8% <br />2018-19 6.8 <br />2019-20 0.0 <br />2020-21 0.0 <br />2021-22 0.0 <br />2022-23 0.0 <br />2023-24 8.0 <br />2024-25 7.0 <br />______________________ <br />Source: City of Redwood City Public Works Services Department. <br />Future Rate Increases. An overall 8% water rate increase for Fiscal Year 2023-24 was <br />approved and adopted by the City Council on December 4, 2023. At the same meeting, City <br />Council also approved a 7% increase for Fiscal Year 2024-25. While additional increases have <br />not been considered by the City Council, increases sufficient to increase water revenues 6-7% <br />annually in Fiscal Years 2025-26 through 2028-29 have been assumed for planning purposes <br />and have been used in the projection of revenues, expenses and debt service coverage shown <br />in Table 16. Such increases would be subject to compliance with Proposition 218 and, if approved, <br />could be higher or lower than projected. Rate increases are made, when necessary, to reflect <br />wholesale water rate increases (see Table 5), the cost of City capital improvement projects for <br />the potable water system, debt service obligations and expected increases to maintenance and <br />operating costs to manage the Enterprise. The City plans to prepare an update to the water rate <br />and fee study completed in 2023 in preparation for potential further rate increases beginning in <br />Fiscal Year 2025-26. The City Council may elect to increase service and water rates, defer capital <br />expenditures, sell additional bonds, or take other actions it deems financially prudent and <br />advisable to satisfy the operating and capital improvement project requirements of the Enterprise. <br />Comparative Monthly Water Bills <br />The following table shows comparative residential monthly water bills for neighboring <br />communities for Fiscal Year 2022-23, based on customers with 5/8-inch or ¾-inch meters <br />consuming water at a rate of 7 CCF per month. <br />8.A. - Page 47 of 255 <br />675