Southern California Water Coalition 1 Af Affordability Municipal - - PowerPoint PPT Presentation

Southern California Water Coalition

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Af Affordability

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• Municipal utilities have a competing mandate –
• 1. Provide high quality and reliable water and wastewater service
• 2. Provide that service at an affordable price while meeting

increased regulations

• “Affordability” cannot be measured by averages
• The impact of the current economic conditions could be

delayed and affect a new group of customers

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Cu Custome

• mer

r Su Survey

Customer Rate Relief Programs

Rate Decreases Bill Credit Assistance Program

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Al Alternate Programs

Alternative Overview Fiscal Impacts Rate Decrease Lowers rates to provide ongoing reduction to monthly bills. Benefit to the customer is experienced over time with small monthly reduction in costs. Permanent revenue reductions that will result in future rate increases. May require a Proposition 218 process to restore the rates to current level.

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Al Alternate Programs

Alternative Overview Fiscal Impacts Rate Decrease Lowers rates to provide ongoing reduction to monthly bills. Benefit to the customer is experienced over time with small monthly reduction in costs. Permanent revenue reductions that will result in future rate increases. May require a Proposition 218 process to restore the rates to current level. Bill Credit Provides immediate discount relief to customers on a system-wide basis with a one-time credit in an amount equivalent to a rate rollback. One-time use of reserves, which may be recovered through future rate increases.

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Al Alternate Programs

Alternative Overview Fiscal Impacts Rate Decrease Lowers rates to provide ongoing reduction to monthly bills. Benefit to the customer is experienced over time with small monthly reduction in costs. Permanent revenue reductions that will result in future rate increases. May require a Proposition 218 process to restore the rates to current level. Bill Credit Provides immediate discount relief to customers on a system-wide basis with a one-time credit in an amount equivalent to a rate rollback. One-time use of reserves, which may be recovered through future rate increases. Assistance Program Program targeted to those in greatest need to provide immediate financial relief. One-time use of reserves with

• pportunity to recover some costs.

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Draft Assistance Program

Annual Revenues Number of Accounts Maximum Amount Estimated Participants Repayment Term Monthly Installment Payment Residential $53.9 million 51,666 $300 3,450 24 months $12.50 Apartment Complexes $3.3 million 616 $1,500 77 12 months $125 Commercial $5.1 million 982 $1,500 383 12 months $125 Irrigation $15.6 million 2,952 $1,500 383 12 months $125

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