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<br />
<br />Water Rate Cost-of-Service Study
<br />Section 1. Executive Summary
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<br />HF&H Consultants, LLC | July 8, 2025 | Page 3 of 53
<br />Figure 1-1. Total Revenue Requirement Projections
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<br /> Source: Figure 3-5.
<br />The rate and revenue increases from FY 2025-26 through FY 2027-28 are shown in Figure
<br />1-2. The proposed rate increases would become effective on January 1, 2026 for the first
<br />year and on January 1 of each calendar year thereafter.
<br />The fiscal year increase in revenue and rate adjustment columns typically do not match
<br />because the City implements rate increases mid-fiscal year. As a result, any changes to the
<br />rates apply to only six months of the fiscal year rather than the entire period. In effect, the
<br />rates within a single calendar year are made up of rates set in adjoining fiscal years. Proposed
<br />rates to be implemented have been realigned with the cost-of-service and calculated to
<br />increase revenues, which will result in varied adjustments per customer for Fiscal Year 2025-
<br />2026. It is assumed that rate increases for calendar years 2027 and 2028 will occur on January
<br />1 of each year, with uniform percentage adjustments applied across all rates.
<br />Figure 1-2. Projected Revenue Increases
<br /> Source: Figure 3-7.
<br />Note Rate Revenue excludes Private Fire Service Charge revenues.
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<br />Water Enterprise Expenses FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28
<br />Purchased Water $26,759,500 $26,759,500 $27,036,322 $28,743,394
<br />Other O&M $22,397,052 $20,941,441 $21,279,472 $22,605,436
<br />Capital Expenditures $8,638,538 $13,161,266 $13,161,266 $13,161,266
<br />Total Revenue Requirement $57,795,090 $60,862,207 $61,477,061 $64,510,096
<br />Annual Increase 5.3% 1.0% 4.9%
<br />Rate Date of Revenue After Fiscal Year
<br />Fiscal Year Adjustments
<br />Rate Adjustments Rate Adjustments Inc. in Revenue
<br />Revenue at Current Rates $48,968,971
<br />FY 2025-26 7.0% 1/1/2026 $50,682,884 3.5%
<br />FY 2026-27 6.0% 1/1/2027 $53,968,702 6.5%
<br />FY 2027-28 5.0% 1/1/2028 $56,929,122 5.5%
<br />ATTY/RESO.0109/CC RESO WATER RATES - EXHIBIT A
<br />REV: 11-05-25 MI
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