|
<br />
<br />Water Rate Cost-of-Service Study
<br />Section 1. Executive Summary
<br />
<br />
<br />HF&H Consultants, LLC | Revised October 30, 2025 | Page 5 of 53
<br />Note: City’s Reserve Target is a proposed policy, recommended by City staff.
<br />
<br />Figure 1-4. Debt Service Coverage
<br /> Source: Figure 3-8.
<br />* Non-operating income includes backflow admin & testing fees, sewer & general fund transfers.
<br />RATE STRUCTURE
<br />Current Rate Structure
<br />The City’s current rate structure is comprised of two components: Service Charges and Water
<br />Use Charges.
<br />Current Service Charges
<br />The Service Charges 6 are fixed rates that are charged on a dwelling unit basis for Single
<br />Family Residential customers, and are graduated in proportion to the capacity of the service
<br />provided for Multi-Family and Non-Residential (commercial, municipal, industrial, other,
<br />recycled water, and irrigation) customers. Single Family Residential customers are billed on a
<br />bi-monthly 7 basis by dwelling unit (DU). All Single Family Residential customers are assumed
<br />to have a 5/8” meter based on the current rate structure which bills a fixed bi-monthly charge
<br />based on the smallest level of capacity (5/8”). While some single-family residential properties
<br />may have larger water meters for reasons such as fire flow requirements or property-specific
<br />conditions, their typical water usage patterns remain similar to other single-family customers.
<br />Multi-Family Residential customers are charged on a bi-monthly basis, according to meter
<br />size. Non-residential, Commercial and irrigation customers are billed on a monthly basis.
<br />Figure 1-5 summarizes the current Service Charges.
<br />
<br />6 The service is the connection between the public water system and the property served. The service includes the
<br />pipes, valves, and meter set (i.e., box, lid, yoke, meter, valve); in some cases, there are multiple meters. The service
<br />is installed at the property owner’s expense. After the meter is purchased and installed, customers pay Service
<br />Charge rates. The terminology in this report refers to the capacity of the service and the capacity of the meter
<br />interchangeably.
<br />7 Bi-monthly periods assume a billing period of 60 days.
<br />FY 2025-26 FY 2026-27 FY 2027-28
<br />Rate Revenue w/ Increases $51,236,452 $54,538,877 $57,530,573
<br />Non-Operating Income*$1,648,725 $1,699,695 $1,752,254
<br />Interest Income $352,856 $315,027 $275,464
<br />Total Funds Available $53,238,033 $56,553,599 $59,558,291
<br />O&M Expenses ($41,266,135) ($41,804,432) ($42,695,938)
<br />Net Revenue $11,971,898 $14,749,167 $16,862,352
<br />Debt Service $3,782,913 $3,779,913 $3,777,213
<br />Debt Coverage Ratio 3.16 3.90 4.46
<br />ATTY/RESO.0109/CC RESO WATER RATES - EXHIBIT A
<br />REV: 11-05-25 MI
|