Water & Sewer Rate Study Workshop
Water & Sewer Rate Study Workshop City of Placerville, California November 8, 2017
1
Overview • Welcome and introductions • Mission Statement & primary goal of rate study • Sewer and water services • Capital Improvement Program • Additional service needs • Cost of providing services
2
Overview (Continued) • Proposed rates • Next steps • Questions and answers
3
Mission Statement
Provide clean, safe, and reliable water and wastewater collection and treatment services at a reasonable cost to Placerville Customers 24 hours a day, 7 days a week. 4
Primary Goal of Rate Study
Establish rates that cover the cost of operating and maintaining the sewer and water systems over the next 5 years. 5
Water Acquisition & Delivery • Water system is regulated by the State Water Resources Control Board
– State Water Code Title 17 & 22 – Transitioning from a D2 to a D3 system – Increased regulatory compliance and reporting
• Purchase water from the El Dorado
Irrigation District (445 million gallons) 6
Water Acquisition & Delivery (Cont.) • Operate and maintain 45 miles of water line ranging from 3” to 24”
– 8 Pressure zones – Maintain and exercise 400+ valves throughout – Operate and maintain 295 hydrants for fire flow – Perform periodic flushing of 155 dead end lines – Operate and maintain 15 Pressure Reducing 7 Stations
Water Acquisition & Delivery (Cont.) • Test and maintain 313 privately owned
backflow prevention devices • Read 2,810 water meters on a bi-monthly basis • Sample and test water in 13 locations throughout the City on a weekly basis • Respond to 230 calls for service annually • Respond to 775 USA tickets annually 8 (water, sewer, & storm drains)
Water Acquisition & Delivery (Cont.) • Provide leak checks (audit) upon request • Maintain leak detection program • Respond to emergency repairs as necessary • Shut off water service for extended vacancies and repairs
9
Water Acquisition & Delivery (Cont.)
10
Sewer Collection • Regulated by the State Water Resources Control Board
– Order 2006-003-Amendment No. WQ 20080002-Exec – California Integrated Water Quality Systems – Increased regulatory compliance & reporting
11
Sewer Collection (Cont.) • Sewer System Programs – Sanitary Sewer Overflow Reduction Program (SSO) – Sewer System Management Plan (SSMP) – Overflow Emergency Response Plan – Fats, Oils, & Greases (FOG) program – Inflow & infiltration reduction program – Root intrusion & control program (new) 12
Sewer Collection (Cont.) • Operate and maintain 50 miles of sewer line ranging from 3” to 24”
– Operate and maintain 4 lift stations – Perform periodic flushing and CCTV of sewer lines – Perform system inspections
• Respond to emergency repairs as
necessary • Respond to sewer spills as needed
13
Sewer Collection (Cont.)
14
Public Works Crew
15
Sewer Treatment • Operate and maintain Water Reclamation
• • • •
Facility (tertiary treatment) Treat approximately 400 million gallons of sewer annually Sample and test effluent (treated water) on an ongoing basis Haul 1,600 tons of sludge byproduct off site Negotiate and monitor NPDES permit (5year permit) 16
Sewer Treatment (Continued) • Perform periodic studies as required by State Water Resources Control Board
– Example: Zinc Water Effect Ratio (WER) study – Fresh water muscle study
• Monitor WRF 24/7 • Continually search and implement additional
efficiencies and environmental friendly enhancements (e.g., reduction in the use of chemicals and the use of more environmentally friendly chemicals, conversion to solar power, 17 etc.)
Sewer Treatment (Continued)
18
Sewer Treatment (Continued)
19
Sewer Treatment (Continued)
20
Engineering • Operate and maintain Geographical Information
• • • • •
System (GIS) Design the replacement of sewer and water systems as needed Develop budgets for the replacement of sewer and water systems as needed Administer sewer and water grants Present CIP budgets and analysis to the Measures H and L Sales Tax Committee Work with the RWQCB as necessary
21
Engineering
22
Finance • Provide customer service • Prepare 22,630 utility bills annually • Administer work orders for water leak checks • • • •
(audits) Administer Lifeline application process Co-facilitate water efficiency program with EID Administer operating budget development Provide general accounting services 23
Finance (Continued) • Prepare ongoing disclosure reports for Publicly
• • •
traded debt (bonds) Administer water conservation (Drought) program Facilitate water acquisition agreements with EID Administer rate studies
24
General Administration • Manage Departments providing sewer and water
• • • •
services Monitor and enforce City policies and procedures Provide legal services as necessary Administer risk programs including general liability insurance, property insurance, and worker’s compensation insurance Respond and resolve customer comments and complaints 25
Capital Improvement Program • Measure H Sales Tax (annually) – $548,190 for sewer & water projects – $516,070 for sewer charge discounts
• Measure L sales tax (annually) – $2,121,021 for street, sewer, and water system projects
26
Unfunded Program Needs • Fully funding 2006 SRF loan payment and 20%
•
coverage Additional Public Works positions • Maintenance Worker II/Water Distribution III Operator
– Additional valve exercising – Additional hydrant exercising – Additional water flushing
• Senior Maintenance Worker – Additional sewer flushing – Shore up FOG Program – Additional root foaming
27
Unfunded Program Needs (Cont.) • Additional WRF position
• NPDES permit compliance • Address coverage during staffing shortages • Reduce overtime costs • Equipment replacement program • Normal inflation
28
Water Enterprise Fund Adopted Budget Fiscal Year 2017/2018
Personnel $0.36
Supplies $0.34
Overhead $0.12 Services Equipment, $0.04 Contingency, Debt Service, & Other Expenses $0.15 29
Water Enterprise Fund (Cont.) • Cost factors – Personnel – Supplies – Services – Debt payments – Property and general liability insurance – Equipment replacement – Contingency – Other expenses
30
Water Enterprise Fund (Cont.) Revenues vs. Expenditures $3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0 Budget 17/18
Forecast 18/19
Forecast 19/20
Forecast 20/21
Forecast 21/22
Forecast 22/23
31
Water Enterprise Fund (Cont.) Projected Deficit Growth 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00%
7.35%
7.31% 6.10%
5.96%
2020/2021 Forecast
2021/2022 Forecast
5.59%
0.00% 2017/2018 Adopted Budget
2018/2019 Forecast
2019/2020 Forecast
2022/2023 Forecast
32
Proposed Rate Revenue Increases 7.50%
7.00% 5.50%
February 2018
June 2019
June 2020
5.00%
June 2021
4.50%
June 2022 33
Proposed Water Rate Structure (Recovering the same total rate revenue) Current Rate Structure Base Charge 0 to 1,000 Cubic Feet 1,001 to 2,500 Cubic Feet Over 2,500 Cubic Feet
$27.56 $2.94 $3.52 $3.81
Proposed Rate Structure Base Charge $19.30 All Cubic Feet
$3.86
34
Monthly Structure Change Bill Impacts $80
$70
$64.41
$67.55
$60 $50 $35.52 $36.67
$40 $30 $27.01 $27.02
$20 $10 $0 Median Use (9 ccf)
Average Use (14 ccf) Existing Structure
Proposed Structure
Average Summer Use (30 ccf) 35
Proposed Water Rates City of Placerville Proposed Single-Family Residential Water Rates
Rate Category
Current Rates
Rate Increase Base Charge All Cubic Feet 0 to 1,000 Cubic Feet 1,001 to 2,500 Cubic Feet Over 2,500 Cubic Feet
$27.56
February 2018
June 2019
June 2020
June 2021
June 2022
7.50%
7.00%
5.50%
5.00%
4.50%
$20.75
$22.21
$23.44
$24.62
$25.73
$4.15
$4.45
$4.70
$4.94
$5.17
$2.94 $3.52 $3.81 36
Proposed Water Rates (Cont.) City of Placerville Proposed Single-Family Residential-Lifeline Water Rates
Rate Category
Current Rates
Rate Increase Base Charge All Cubic Feet 0 to 1,000 Cubic Feet 1,001 to 2,500 Cubic Feet Over 2,500 Cubic Feet
$20.68
February 2018
June 2019
June 2020
June 2021
June 2022
7.50%
7.00%
5.50%
5.00%
4.50%
$15.57
$16.67
$17.58
$18.47
$19.30
$3.12
$3.34
$3.53
$3.71
$3.88
$2.22 $2.65 $2.87
37
Proposed Water Rates (Cont.) City of Placerville Monthly Single-Family Residential Water Bill (1,400 Cubic Feet) $60.00
$50.00 $44.62
$42.26 $40.00
$30.00
$49.06
$46.89
$39.43 $35.52 $31.72
$29.63
$33.50
$35.21
$36.81
$26.74
$20.00
$10.00
$0.00 Current Rates
February 2018
June 2019
Single-Family Residential
June 2020
June 2021
June 2022
Single-Family Residential (Lifeline)
38
Proposed Water Rates (Cont.) City of Placerville Increase in Monthly Single-Family Residential Water Bill (1,400 Cubic Feet) $4.50
$4.00
$3.91
$3.50 $3.00
$2.89
$2.83 $2.36
$2.50
$2.27
$2.09
$2.00
$1.79
$2.17 $1.71
$1.61
$1.50 $1.00 $0.50 $0.00 February 2018
June 2019 Single-Family Residential
June 2020
June 2021
June 2022
Single-Family Residential (Lifeline)
39
Proposed Water Rates (Cont.) Regional Water Bill Comparison November 2017 For Two Months of Service - 14 ccf (average use) $140 $120 $92.98
$100 $71.04
$80 $60
$59.76
$78.85
$97.28
$104.32 $104.87 $99.57 $104.03
$110.78
$118.76
$80.24
$61.52
$45.12
$40 $20 $0
Fixed Charge
Variable Charge
40
Sewer Enterprise Fund Adopted Budget Fiscal Year 2017/2018
Personnel $0.28
Services Supplies $0.13 $0.06 Overhead $0.05
Contingency, Debt Payments & Coverage, Equipment, Transfers, Contingency, Other Expenses $0.47 41
Sewer Enterprise Fund (Cont.) • Cost factors – Personnel – Supplies – Services – Debt payments – Property and general liability insurance – Equipment replacement – Contingency – Other expenses
42
Sewer Enterprise Fund (Cont.) Projected Revenues vs. Expenditures $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $-
2017/2018 Adopted Budget
2018/2019 Forecast
2019/2020 Forecast
2020/2021 Forecast
2021/2022 Forecast
2022/2023 Forecast
43
Sewer Enterprise Fund (Cont.) Projected Deficit Growth 12.00%
10.77%
10.00% 8.00%
7.99% 6.31%
6.00%
5.06%
5.42% 3.95%
4.00% 2.00% 0.00% 2017/2018 Adopted Budget
2018/2019 Forecast
2019/2020 Forecast
2020/2021 Forecast
2021/2022 Forecast
2022/2023 Forecast
44
Sewer Rate/Discount Options Sewer Rate/Discount Options - Single-Family Residential
Option Option #1: Maintain existing discounts Sewer Rate Increase Option #2: Reduce the discounts 1/5 each year for the next 5 years Sewer Rate Increase Option #3: Reduce the discounts by 50% in 2018 Sewer Rate Increase Option #4: Eliminate the discounts in 2018 Sewer Rate Increase
Current BiMonthly Discount $15.00
$15.00
$15.00
$15.00
Current Effective Effective Effective Effective Effective Monthly February June June June June Discount 2018 2019 2020 2021 2022 $7.50
$7.50
$7.50
$0.00
$7.50
$7.50
$7.50
$7.50
$7.50
13.00%
9.00%
3.75%
3.75%
2.75%
$6.00
$4.50
$3.00
$1.50
$0.00
12.00%
6.50%
2.50%
2.50%
2.50%
$3.75
$3.75
$3.75
$3.75
$3.75
9.00%
9.00%
4.00%
3.50%
3.00%
$0.00
$0.00
$0.00
$0.00
$0.00
5.75%
7.25%
4.50%
4.00%
3.00%
45
Proposed Sewer Rates (Option #1) Proposed Sewer Rates and Discounts - Single-Family Residential (Option #1)
Rate Category
Current Bi- Effective Effective Effective Effective Effective Monthly February June June June June Amount 2018 2019 2020 2021 2022
Single-Family Residential Sewer Rate Increase Base Charge Per 100 Cubic Feet Over 750 cf
13.00% 9.00% 3.75% 3.75% 2.75% $162.11 $183.18 $199.67 $207.16 $214.93 $220.84 $7.51 $8.49 $9.25 $9.60 $9.96 $10.23
Single-Family Residential - Lifeline Base Charge Per 100 Cubic Feet Over 750 cf
$121.58 $137.39 $149.75 $155.37 $161.19 $165.62 $5.63 $6.36 $6.93 $7.19 $7.46 $7.67
Single-Family Residential - All Sewer Charge Discount
$15.00
$15.00
$15.00
$15.00
$15.00
$15.00 46
Proposed Sewer Rates (Option #2) Proposed Sewer Rates and Discounts - Single-Family Residential (Option #2)
Rate Category
Current Bi- Effective Effective Effective Effective Effective Monthly February June June June June Amount 2018 2019 2020 2021 2022
Single-Family Residential Sewer Rate Increase Base Charge Per 100 Cubic Feet Over 750 cf
12.00% 6.50% 2.50% 2.50% 2.50% $162.11 $181.56 $193.36 $198.20 $203.15 $208.23 $7.51 $8.41 $8.96 $9.18 $9.41 $9.65
Single-Family Residential - Lifeline Base Charge Per 100 Cubic Feet Over 750 cf
$121.58 $136.17 $145.02 $148.65 $152.36 $156.17 $5.63 $6.31 $6.72 $6.88 $7.06 $7.23
Single-Family Residential - All Sewer Charge Discount
$15.00
$12.00
$9.00
$6.00
$3.00
$0.00 47
Proposed Sewer Rates (Option #3) Proposed Sewer Rates and Discounts - Single-Family Residential (Option #3)
Rate Category
Current Bi- Effective Effective Effective Effective Effective Monthly February June June June June Amount 2018 2019 2020 2021 2022
Single-Family Residential Sewer Rate Increase Base Charge Per 100 Cubic Feet Over 750 cf
9.00% 9.00% 4.00% 3.50% 3.00% $162.11 $176.70 $192.60 $200.31 $207.32 $213.54 $7.51 $8.19 $8.92 $9.28 $9.60 $9.89
Single-Family Residential - Lifeline Base Charge Per 100 Cubic Feet Over 750 cf
$121.58 $132.52 $144.45 $150.23 $155.49 $160.15 $5.63 $6.14 $6.69 $6.96 $7.20 $7.42
Single-Family Residential - All Sewer Charge Discount
$15.00
$7.50
$7.50
$7.50
$7.50
$7.50 48
Proposed Sewer Rates (Option #4) Proposed Sewer Rates and Discounts - Single-Family Residential (Option #4)
Rate Category
Current Bi- Effective Effective Effective Effective Effective Monthly February June June June June Amount 2018 2019 2020 2021 2022
Single-Family Residential Sewer Rate Increase Base Charge Per 100 Cubic Feet Over 750 cf
5.75% 7.25% 4.50% 4.00% 3.00% $162.11 $171.43 $183.86 $192.13 $199.82 $205.81 $7.51 $7.94 $8.52 $8.90 $9.26 $9.53
Single-Family Residential - Lifeline Base Charge Per 100 Cubic Feet Over 750 cf
$121.58 $128.57 $137.89 $144.10 $149.86 $154.36 $5.63 $5.95 $6.39 $6.67 $6.94 $7.15
Single-Family Residential - All Sewer Charge Discount
$15.00
$0.00
$0.00
$0.00
$0.00
$0.00 49
Proposed Sewer Rates (Continued) Monthly Sewer Bill - Single-Family Residential (1,050 cf)
$140.00 $120.00 $100.00 $80.00 $60.00
$40.00 $20.00 $0.00 Current
Effective February 2018
Effective June 2019
Effective June 2020
Effective June 2021
Effective June 2022
Option #1 Option #2 Option #3 Option #4
50
Proposed Sewer Rates (Continued) Monthly Sewer Bill - Single-Family Residential Lifeline (1,050 cf) $100.00 $90.00 $80.00 $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $0.00 Current
Effective February Effective June 2018 2019
Effective June 2020
Effective June 2021
Effective June 2022
Option #1 Option #2 Option #3
Option #4
51
Proposed Sewer Rates (Continued) Increase in Monthly Sewer Bill - Single-Family Residential (1,050 cf)
$14.00 $12.00
$12.81 $12.00$12.58 $12.06 $9.39
$10.00
$9.06 $8.22
$8.00
$7.08
$6.00 $4.00
$4.26 $4.25 $4.39 $4.71
$4.42 $4.32
Effective June 2020
Effective June 2021
$3.99 $4.38
$3.37
$4.39 $3.54 $3.41
$2.00 $0.00 Effective February 2018 Effective June 2019
Effective June 2022
Option #1 Option #2 Option #3 Option #4
52
Proposed Sewer Rates (Continued) Increase in Monthly Sewer Bill - Single-Family Residential Lifeline (1,050 cf) $14.00 $12.00 $10.00
$11.48 $9.81 $9.98 $9.00
$8.00
$7.04
$6.54 $6.79 $5.31
$6.00 $4.00
$3.20 $3.56$3.29 $3.53
$3.32 $3.62$2.99 $3.28
Effective June 2020
Effective June 2021
$3.67 $2.52
$2.66 $2.56
$2.00 $0.00 Effective February 2018
Effective June 2019
Effective June 2022
Option #1 Option #2 Option #3 Option #4
53
Proposed Sewer Rates (Continued) Regional Sewer Bill Comparison November 2017 For Two Months of Service - 10.5 ccf (average winter use) $300 $245.78
$250 $191.56 $193.65
$200 $138.01
$150 $100
$104.30 $91.90 $96.24
$150.98
$205.14
$223.44
$169.64
$105.89 $111.70 $116.05
$68.61
$50 $0
54
Questions and Answers
? 55
Next Steps • City Council authorizes Proposition 218
• • •
• •
(November 28, 2017) Proposition 218 Notice to customers (December 2017) Public Hearing/Rate Adoption (February 2018) Additional informational notices to customers (March and May 2018) Implementation (April and May 2018) First Utility bill with new rates (May 2018) 56
Conclusion • Thank you for your attendance and input!
57
Water Enterprise Fund (Cont.) Projected Growth in Expenditures 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Personnel -5.00% -10.00%
Supplies
Overhead
Services
Contingency, Debt Payments Equipment, Transfers, & Other Expenses
Total
2018/2019 2019/2020 2020/2021 2021/2022 2022/2023
-15.00% -20.00% -25.00% -30.00%
58
Sewer Enterprise Fund (Cont.) Projected Growth in Expenditures 20.00%
15.00% 10.00%
2018/2019 2019/2020 2020/2021 2021/2022 2022/2023
5.00% 0.00% Personnel -5.00% -10.00%
Services
Supplies
Overhead
Contingency, Debt Payments Equipment, Transfers, & Other Expenses
Total
-15.00%
-20.00%
59
1
Overview • Welcome and introductions • Mission Statement & primary goal of rate study • Sewer and water services • Capital Improvement Program • Additional service needs • Cost of providing services
2
Overview (Continued) • Proposed rates • Next steps • Questions and answers
3
Mission Statement
Provide clean, safe, and reliable water and wastewater collection and treatment services at a reasonable cost to Placerville Customers 24 hours a day, 7 days a week. 4
Primary Goal of Rate Study
Establish rates that cover the cost of operating and maintaining the sewer and water systems over the next 5 years. 5
Water Acquisition & Delivery • Water system is regulated by the State Water Resources Control Board
– State Water Code Title 17 & 22 – Transitioning from a D2 to a D3 system – Increased regulatory compliance and reporting
• Purchase water from the El Dorado
Irrigation District (445 million gallons) 6
Water Acquisition & Delivery (Cont.) • Operate and maintain 45 miles of water line ranging from 3” to 24”
– 8 Pressure zones – Maintain and exercise 400+ valves throughout – Operate and maintain 295 hydrants for fire flow – Perform periodic flushing of 155 dead end lines – Operate and maintain 15 Pressure Reducing 7 Stations
Water Acquisition & Delivery (Cont.) • Test and maintain 313 privately owned
backflow prevention devices • Read 2,810 water meters on a bi-monthly basis • Sample and test water in 13 locations throughout the City on a weekly basis • Respond to 230 calls for service annually • Respond to 775 USA tickets annually 8 (water, sewer, & storm drains)
Water Acquisition & Delivery (Cont.) • Provide leak checks (audit) upon request • Maintain leak detection program • Respond to emergency repairs as necessary • Shut off water service for extended vacancies and repairs
9
Water Acquisition & Delivery (Cont.)
10
Sewer Collection • Regulated by the State Water Resources Control Board
– Order 2006-003-Amendment No. WQ 20080002-Exec – California Integrated Water Quality Systems – Increased regulatory compliance & reporting
11
Sewer Collection (Cont.) • Sewer System Programs – Sanitary Sewer Overflow Reduction Program (SSO) – Sewer System Management Plan (SSMP) – Overflow Emergency Response Plan – Fats, Oils, & Greases (FOG) program – Inflow & infiltration reduction program – Root intrusion & control program (new) 12
Sewer Collection (Cont.) • Operate and maintain 50 miles of sewer line ranging from 3” to 24”
– Operate and maintain 4 lift stations – Perform periodic flushing and CCTV of sewer lines – Perform system inspections
• Respond to emergency repairs as
necessary • Respond to sewer spills as needed
13
Sewer Collection (Cont.)
14
Public Works Crew
15
Sewer Treatment • Operate and maintain Water Reclamation
• • • •
Facility (tertiary treatment) Treat approximately 400 million gallons of sewer annually Sample and test effluent (treated water) on an ongoing basis Haul 1,600 tons of sludge byproduct off site Negotiate and monitor NPDES permit (5year permit) 16
Sewer Treatment (Continued) • Perform periodic studies as required by State Water Resources Control Board
– Example: Zinc Water Effect Ratio (WER) study – Fresh water muscle study
• Monitor WRF 24/7 • Continually search and implement additional
efficiencies and environmental friendly enhancements (e.g., reduction in the use of chemicals and the use of more environmentally friendly chemicals, conversion to solar power, 17 etc.)
Sewer Treatment (Continued)
18
Sewer Treatment (Continued)
19
Sewer Treatment (Continued)
20
Engineering • Operate and maintain Geographical Information
• • • • •
System (GIS) Design the replacement of sewer and water systems as needed Develop budgets for the replacement of sewer and water systems as needed Administer sewer and water grants Present CIP budgets and analysis to the Measures H and L Sales Tax Committee Work with the RWQCB as necessary
21
Engineering
22
Finance • Provide customer service • Prepare 22,630 utility bills annually • Administer work orders for water leak checks • • • •
(audits) Administer Lifeline application process Co-facilitate water efficiency program with EID Administer operating budget development Provide general accounting services 23
Finance (Continued) • Prepare ongoing disclosure reports for Publicly
• • •
traded debt (bonds) Administer water conservation (Drought) program Facilitate water acquisition agreements with EID Administer rate studies
24
General Administration • Manage Departments providing sewer and water
• • • •
services Monitor and enforce City policies and procedures Provide legal services as necessary Administer risk programs including general liability insurance, property insurance, and worker’s compensation insurance Respond and resolve customer comments and complaints 25
Capital Improvement Program • Measure H Sales Tax (annually) – $548,190 for sewer & water projects – $516,070 for sewer charge discounts
• Measure L sales tax (annually) – $2,121,021 for street, sewer, and water system projects
26
Unfunded Program Needs • Fully funding 2006 SRF loan payment and 20%
•
coverage Additional Public Works positions • Maintenance Worker II/Water Distribution III Operator
– Additional valve exercising – Additional hydrant exercising – Additional water flushing
• Senior Maintenance Worker – Additional sewer flushing – Shore up FOG Program – Additional root foaming
27
Unfunded Program Needs (Cont.) • Additional WRF position
• NPDES permit compliance • Address coverage during staffing shortages • Reduce overtime costs • Equipment replacement program • Normal inflation
28
Water Enterprise Fund Adopted Budget Fiscal Year 2017/2018
Personnel $0.36
Supplies $0.34
Overhead $0.12 Services Equipment, $0.04 Contingency, Debt Service, & Other Expenses $0.15 29
Water Enterprise Fund (Cont.) • Cost factors – Personnel – Supplies – Services – Debt payments – Property and general liability insurance – Equipment replacement – Contingency – Other expenses
30
Water Enterprise Fund (Cont.) Revenues vs. Expenditures $3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0 Budget 17/18
Forecast 18/19
Forecast 19/20
Forecast 20/21
Forecast 21/22
Forecast 22/23
31
Water Enterprise Fund (Cont.) Projected Deficit Growth 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00%
7.35%
7.31% 6.10%
5.96%
2020/2021 Forecast
2021/2022 Forecast
5.59%
0.00% 2017/2018 Adopted Budget
2018/2019 Forecast
2019/2020 Forecast
2022/2023 Forecast
32
Proposed Rate Revenue Increases 7.50%
7.00% 5.50%
February 2018
June 2019
June 2020
5.00%
June 2021
4.50%
June 2022 33
Proposed Water Rate Structure (Recovering the same total rate revenue) Current Rate Structure Base Charge 0 to 1,000 Cubic Feet 1,001 to 2,500 Cubic Feet Over 2,500 Cubic Feet
$27.56 $2.94 $3.52 $3.81
Proposed Rate Structure Base Charge $19.30 All Cubic Feet
$3.86
34
Monthly Structure Change Bill Impacts $80
$70
$64.41
$67.55
$60 $50 $35.52 $36.67
$40 $30 $27.01 $27.02
$20 $10 $0 Median Use (9 ccf)
Average Use (14 ccf) Existing Structure
Proposed Structure
Average Summer Use (30 ccf) 35
Proposed Water Rates City of Placerville Proposed Single-Family Residential Water Rates
Rate Category
Current Rates
Rate Increase Base Charge All Cubic Feet 0 to 1,000 Cubic Feet 1,001 to 2,500 Cubic Feet Over 2,500 Cubic Feet
$27.56
February 2018
June 2019
June 2020
June 2021
June 2022
7.50%
7.00%
5.50%
5.00%
4.50%
$20.75
$22.21
$23.44
$24.62
$25.73
$4.15
$4.45
$4.70
$4.94
$5.17
$2.94 $3.52 $3.81 36
Proposed Water Rates (Cont.) City of Placerville Proposed Single-Family Residential-Lifeline Water Rates
Rate Category
Current Rates
Rate Increase Base Charge All Cubic Feet 0 to 1,000 Cubic Feet 1,001 to 2,500 Cubic Feet Over 2,500 Cubic Feet
$20.68
February 2018
June 2019
June 2020
June 2021
June 2022
7.50%
7.00%
5.50%
5.00%
4.50%
$15.57
$16.67
$17.58
$18.47
$19.30
$3.12
$3.34
$3.53
$3.71
$3.88
$2.22 $2.65 $2.87
37
Proposed Water Rates (Cont.) City of Placerville Monthly Single-Family Residential Water Bill (1,400 Cubic Feet) $60.00
$50.00 $44.62
$42.26 $40.00
$30.00
$49.06
$46.89
$39.43 $35.52 $31.72
$29.63
$33.50
$35.21
$36.81
$26.74
$20.00
$10.00
$0.00 Current Rates
February 2018
June 2019
Single-Family Residential
June 2020
June 2021
June 2022
Single-Family Residential (Lifeline)
38
Proposed Water Rates (Cont.) City of Placerville Increase in Monthly Single-Family Residential Water Bill (1,400 Cubic Feet) $4.50
$4.00
$3.91
$3.50 $3.00
$2.89
$2.83 $2.36
$2.50
$2.27
$2.09
$2.00
$1.79
$2.17 $1.71
$1.61
$1.50 $1.00 $0.50 $0.00 February 2018
June 2019 Single-Family Residential
June 2020
June 2021
June 2022
Single-Family Residential (Lifeline)
39
Proposed Water Rates (Cont.) Regional Water Bill Comparison November 2017 For Two Months of Service - 14 ccf (average use) $140 $120 $92.98
$100 $71.04
$80 $60
$59.76
$78.85
$97.28
$104.32 $104.87 $99.57 $104.03
$110.78
$118.76
$80.24
$61.52
$45.12
$40 $20 $0
Fixed Charge
Variable Charge
40
Sewer Enterprise Fund Adopted Budget Fiscal Year 2017/2018
Personnel $0.28
Services Supplies $0.13 $0.06 Overhead $0.05
Contingency, Debt Payments & Coverage, Equipment, Transfers, Contingency, Other Expenses $0.47 41
Sewer Enterprise Fund (Cont.) • Cost factors – Personnel – Supplies – Services – Debt payments – Property and general liability insurance – Equipment replacement – Contingency – Other expenses
42
Sewer Enterprise Fund (Cont.) Projected Revenues vs. Expenditures $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $-
2017/2018 Adopted Budget
2018/2019 Forecast
2019/2020 Forecast
2020/2021 Forecast
2021/2022 Forecast
2022/2023 Forecast
43
Sewer Enterprise Fund (Cont.) Projected Deficit Growth 12.00%
10.77%
10.00% 8.00%
7.99% 6.31%
6.00%
5.06%
5.42% 3.95%
4.00% 2.00% 0.00% 2017/2018 Adopted Budget
2018/2019 Forecast
2019/2020 Forecast
2020/2021 Forecast
2021/2022 Forecast
2022/2023 Forecast
44
Sewer Rate/Discount Options Sewer Rate/Discount Options - Single-Family Residential
Option Option #1: Maintain existing discounts Sewer Rate Increase Option #2: Reduce the discounts 1/5 each year for the next 5 years Sewer Rate Increase Option #3: Reduce the discounts by 50% in 2018 Sewer Rate Increase Option #4: Eliminate the discounts in 2018 Sewer Rate Increase
Current BiMonthly Discount $15.00
$15.00
$15.00
$15.00
Current Effective Effective Effective Effective Effective Monthly February June June June June Discount 2018 2019 2020 2021 2022 $7.50
$7.50
$7.50
$0.00
$7.50
$7.50
$7.50
$7.50
$7.50
13.00%
9.00%
3.75%
3.75%
2.75%
$6.00
$4.50
$3.00
$1.50
$0.00
12.00%
6.50%
2.50%
2.50%
2.50%
$3.75
$3.75
$3.75
$3.75
$3.75
9.00%
9.00%
4.00%
3.50%
3.00%
$0.00
$0.00
$0.00
$0.00
$0.00
5.75%
7.25%
4.50%
4.00%
3.00%
45
Proposed Sewer Rates (Option #1) Proposed Sewer Rates and Discounts - Single-Family Residential (Option #1)
Rate Category
Current Bi- Effective Effective Effective Effective Effective Monthly February June June June June Amount 2018 2019 2020 2021 2022
Single-Family Residential Sewer Rate Increase Base Charge Per 100 Cubic Feet Over 750 cf
13.00% 9.00% 3.75% 3.75% 2.75% $162.11 $183.18 $199.67 $207.16 $214.93 $220.84 $7.51 $8.49 $9.25 $9.60 $9.96 $10.23
Single-Family Residential - Lifeline Base Charge Per 100 Cubic Feet Over 750 cf
$121.58 $137.39 $149.75 $155.37 $161.19 $165.62 $5.63 $6.36 $6.93 $7.19 $7.46 $7.67
Single-Family Residential - All Sewer Charge Discount
$15.00
$15.00
$15.00
$15.00
$15.00
$15.00 46
Proposed Sewer Rates (Option #2) Proposed Sewer Rates and Discounts - Single-Family Residential (Option #2)
Rate Category
Current Bi- Effective Effective Effective Effective Effective Monthly February June June June June Amount 2018 2019 2020 2021 2022
Single-Family Residential Sewer Rate Increase Base Charge Per 100 Cubic Feet Over 750 cf
12.00% 6.50% 2.50% 2.50% 2.50% $162.11 $181.56 $193.36 $198.20 $203.15 $208.23 $7.51 $8.41 $8.96 $9.18 $9.41 $9.65
Single-Family Residential - Lifeline Base Charge Per 100 Cubic Feet Over 750 cf
$121.58 $136.17 $145.02 $148.65 $152.36 $156.17 $5.63 $6.31 $6.72 $6.88 $7.06 $7.23
Single-Family Residential - All Sewer Charge Discount
$15.00
$12.00
$9.00
$6.00
$3.00
$0.00 47
Proposed Sewer Rates (Option #3) Proposed Sewer Rates and Discounts - Single-Family Residential (Option #3)
Rate Category
Current Bi- Effective Effective Effective Effective Effective Monthly February June June June June Amount 2018 2019 2020 2021 2022
Single-Family Residential Sewer Rate Increase Base Charge Per 100 Cubic Feet Over 750 cf
9.00% 9.00% 4.00% 3.50% 3.00% $162.11 $176.70 $192.60 $200.31 $207.32 $213.54 $7.51 $8.19 $8.92 $9.28 $9.60 $9.89
Single-Family Residential - Lifeline Base Charge Per 100 Cubic Feet Over 750 cf
$121.58 $132.52 $144.45 $150.23 $155.49 $160.15 $5.63 $6.14 $6.69 $6.96 $7.20 $7.42
Single-Family Residential - All Sewer Charge Discount
$15.00
$7.50
$7.50
$7.50
$7.50
$7.50 48
Proposed Sewer Rates (Option #4) Proposed Sewer Rates and Discounts - Single-Family Residential (Option #4)
Rate Category
Current Bi- Effective Effective Effective Effective Effective Monthly February June June June June Amount 2018 2019 2020 2021 2022
Single-Family Residential Sewer Rate Increase Base Charge Per 100 Cubic Feet Over 750 cf
5.75% 7.25% 4.50% 4.00% 3.00% $162.11 $171.43 $183.86 $192.13 $199.82 $205.81 $7.51 $7.94 $8.52 $8.90 $9.26 $9.53
Single-Family Residential - Lifeline Base Charge Per 100 Cubic Feet Over 750 cf
$121.58 $128.57 $137.89 $144.10 $149.86 $154.36 $5.63 $5.95 $6.39 $6.67 $6.94 $7.15
Single-Family Residential - All Sewer Charge Discount
$15.00
$0.00
$0.00
$0.00
$0.00
$0.00 49
Proposed Sewer Rates (Continued) Monthly Sewer Bill - Single-Family Residential (1,050 cf)
$140.00 $120.00 $100.00 $80.00 $60.00
$40.00 $20.00 $0.00 Current
Effective February 2018
Effective June 2019
Effective June 2020
Effective June 2021
Effective June 2022
Option #1 Option #2 Option #3 Option #4
50
Proposed Sewer Rates (Continued) Monthly Sewer Bill - Single-Family Residential Lifeline (1,050 cf) $100.00 $90.00 $80.00 $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $0.00 Current
Effective February Effective June 2018 2019
Effective June 2020
Effective June 2021
Effective June 2022
Option #1 Option #2 Option #3
Option #4
51
Proposed Sewer Rates (Continued) Increase in Monthly Sewer Bill - Single-Family Residential (1,050 cf)
$14.00 $12.00
$12.81 $12.00$12.58 $12.06 $9.39
$10.00
$9.06 $8.22
$8.00
$7.08
$6.00 $4.00
$4.26 $4.25 $4.39 $4.71
$4.42 $4.32
Effective June 2020
Effective June 2021
$3.99 $4.38
$3.37
$4.39 $3.54 $3.41
$2.00 $0.00 Effective February 2018 Effective June 2019
Effective June 2022
Option #1 Option #2 Option #3 Option #4
52
Proposed Sewer Rates (Continued) Increase in Monthly Sewer Bill - Single-Family Residential Lifeline (1,050 cf) $14.00 $12.00 $10.00
$11.48 $9.81 $9.98 $9.00
$8.00
$7.04
$6.54 $6.79 $5.31
$6.00 $4.00
$3.20 $3.56$3.29 $3.53
$3.32 $3.62$2.99 $3.28
Effective June 2020
Effective June 2021
$3.67 $2.52
$2.66 $2.56
$2.00 $0.00 Effective February 2018
Effective June 2019
Effective June 2022
Option #1 Option #2 Option #3 Option #4
53
Proposed Sewer Rates (Continued) Regional Sewer Bill Comparison November 2017 For Two Months of Service - 10.5 ccf (average winter use) $300 $245.78
$250 $191.56 $193.65
$200 $138.01
$150 $100
$104.30 $91.90 $96.24
$150.98
$205.14
$223.44
$169.64
$105.89 $111.70 $116.05
$68.61
$50 $0
54
Questions and Answers
? 55
Next Steps • City Council authorizes Proposition 218
• • •
• •
(November 28, 2017) Proposition 218 Notice to customers (December 2017) Public Hearing/Rate Adoption (February 2018) Additional informational notices to customers (March and May 2018) Implementation (April and May 2018) First Utility bill with new rates (May 2018) 56
Conclusion • Thank you for your attendance and input!
57
Water Enterprise Fund (Cont.) Projected Growth in Expenditures 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Personnel -5.00% -10.00%
Supplies
Overhead
Services
Contingency, Debt Payments Equipment, Transfers, & Other Expenses
Total
2018/2019 2019/2020 2020/2021 2021/2022 2022/2023
-15.00% -20.00% -25.00% -30.00%
58
Sewer Enterprise Fund (Cont.) Projected Growth in Expenditures 20.00%
15.00% 10.00%
2018/2019 2019/2020 2020/2021 2021/2022 2022/2023
5.00% 0.00% Personnel -5.00% -10.00%
Services
Supplies
Overhead
Contingency, Debt Payments Equipment, Transfers, & Other Expenses
Total
-15.00%
-20.00%
59
