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<br />
<br />Water Rate Cost-of-Service Study
<br />Section 4. Cost-of-Service Analysis
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<br />HF&H Consultants, LLC | July 8, 2025 | Page 35 of 53
<br />Figure 4-9 summarizes the small shift in the Service Charge revenues from the Water Use
<br />Charge revenues to align with the cost-of-service. The exercise performed in Figure 4-9
<br />indicates that the proportion of Service Charge revenues will decrease slightly from roughly
<br />37.7% to 37.4% of total rate revenues, while Water Use Charge revenues will increase slightly
<br />from 62.3% to 62.6%. The right-hand columns summarizing the difference between the cost-
<br />of-service and current revenues include both the impacts of the realignment of rates through
<br />the cost allocation process and the overall revenue increases proposed.
<br />Figure 4-9. Cost-of-Service Revenue Summary
<br /> Note: Commercial/Multi Family includes all Commercial, Multi-Family, and Irrigation customers.
<br />
<br />Revenue at Cost Difference
<br />Components of Rate Structure Current Rates of Service FY 2025-26 COS Minus Current
<br />Single Family
<br />Water Use Charge Revenue $14,300,730 60.0% $15,242,481 58.7% $941,752 6.6%
<br />Fixed Service Charge Revenue $9,546,588 40.0% $10,741,466 41.3% $1,194,878 12.5%
<br />Subtotal - Single Family $23,847,318 100.0% $25,983,947 100.0% $2,136,630 9.0%
<br />Commercial/Multi Family
<br />Water Use Charge Revenue $16,532,381 65.8% $17,922,536 68.8% $1,390,156 8.4%
<br />Fixed Service Charge Revenue $8,589,272 34.2% $8,137,088 31.2%($452,184)-5.3%
<br />Subtotal - Commercial $25,121,653 100.0% $26,059,624 100.0% $937,971 3.7%
<br />Private Fire Service
<br />Fixed Service Charge Revenue $494,525 $906,795 $412,270 83.4%
<br />Total
<br />Water Use Charge Revenue $30,833,111 62.3% $33,165,018 62.6% $2,331,907 7.6%
<br />Fixed Service Charge Revenue $18,630,385 37.7% $19,785,349 37.4% $1,154,964 6.2%
<br />Total $49,463,496 100.0% $52,950,366 100.0% $3,486,871 7.0%
<br />ATTY/RESO.0109/CC RESO WATER RATES - EXHIBIT A
<br />REV: 11-05-25 MI
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