Water and Wastewater Utility Rates June 6, 2017 Presented By: - - PowerPoint PPT Presentation

Water and Wastewater Utility Rates

June 6, 2017 Presented By: Diana Langley Public Works Director

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Purpose of Rates

• To ensure adequate revenues in the Water and

Wastewater Enterprise Funds for:

– Operation and Maintenance – Debt Service Coverage – Capital Projects

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BACKGROUND

Funding Allocation Over Time

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$0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 Annual Obligations Fiscal Year

Water Revenue Requirements vs. Revenue Under Previous Rates

Reserve Funded Capital Expenses Rate Funded Capital Expenses Debt Service O&M Expenses Revenues under Existing Rates Anticipated Revenues under 2011 Approved Rates

Funding Allocation Over Time

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$0 $2,500,000 $5,000,000 $7,500,000 $10,000,000 $12,500,000 $15,000,000 $17,500,000 $20,000,000 $22,500,000 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 Annual Obligations Fiscal Year

Wastewater Revenue Requirements vs. Revenue Under Previous Rates

Reserve Funded Capital Expenses Rate Funded Capital Expenses Debt Service O&M Expenses Revenues under Existing Rates Anticipated Revenues under 2011 Approved Rates

Proposition 218 Approved Water Rates

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Meter Size Baseline HCF’s* Year 1 Year 2 Year 3 Year 4 Year 5 1” 11 $28.50 $33.91 $39.49 $41.01 $42.59 1-1/2” 22 $57.00 $67.83 $78.98 $82.03 $85.18 2” 44 $114.01 $135.67 $157.99 $164.07 $170.39 3” 176 $456.02 $542.66 $631.93 $656.26 $681.53 4” 352 $912.05 $1,085.34 $1,263.88 $1,312.54 $1,363.08 6” 660 $1,710.09 $2,035.00 $2,369.76 $2,461.00 $2,555.74 8” 1,540 $3,990.21 $4,748.36 $5,529.46 $5,742.34 $5,963.42

Flow Rate Per Excess HCF

$1.430 $1.701 $1.981 $2.057 $2.137

*1 HCF = 748 Gallons

Council Adopted Water Rates FY 2016/17

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Meter Size Baseline HCF’s* Difference from Prop. 218 Rates FY 16/17 Rates Difference from Prop. 218 Rates

1” 15 +4 $27.85 ($0.65) 1-1/2” 30 +8 $55.70 ($1.30) 2” 60 +16 $111.42 ($2.59) 3” 240 +64 $445.66 ($10.36) 4” 480 +128 $891.33 ($20.72) 6” 900 +240 $1,671.22 ($38.87) 8” 2,100 +560 $3,899.53 ($90.68)

Flow Rate Per Excess HCF

$1.430 $0.00

*1 HCF = 748 Gallons

Proposition 218 Approved & Council Adopted Wastewater Rates

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Sewer Rate Schedule Year 1 Year 2 Year 3 Year 4 Year 5 Single Family $44.58 $49.04 $53.95 $59.34 $65.27 Multi-Family $35.67 $39.24 $43.16 $47.48 $52.23 Commercial – C1 $44.58 $49.04 $53.95 $59.34 $65.27 Commercial – C2 $50.16 $55.18 $60.69 $66.76 $73.44 Commercial – C3 $60.75 $66.83 $73.51 $80.86 $88.95 Commercial Volumetric Charge (HCF) $1.76 $1.93 $2.13 $2.34 $2.57 Schools – Per Student/Year $20.47 $22.52 $24.77 $27.25 $29.97

Proposition 218 Approved & Council Adopted Wastewater Rates

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Sewer Rate Schedule Year 1 Year 2 Year 3 Year 4 Year 5

Industrial Volume (MG) $2,570.61 $2,827.67 $3,110.44 $3,421.48 $3,763.63 TSS (lbs) $0.198 $0.218 $0.240 $0.264 $0.290 BOD (lbs) $0.263 $0.290 $0.319 $0.350 $0.385 Septage Hauler $/Gallon $0.343 $0.378 $0.415 $0.457 $0.502 400 Gallons $137.28 $151.01 $166.11 $182.72 $200.99 1,000 Gallon $343.20 $377.52 $415.27 $456.80 $502.48 1,500 Gallon $514.80 $566.28 $622.91 $685.20 $753.72

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FISCAL YEAR 2016/17

Water Conservation FY 16/17

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Month Conservation Achieved Compared to 2013 Residential Per Capita Usage (gpcd) July 2016 29.7% 144 August 2016 20.8% 153 September 2016 17.2% 138 October 2016 24.0% 104 November 2016 30.2% 75 December 2016 22.4% 66 January 2017 11.4% 77 February 2017 24.5% 64 March 2017 28.7% 76 April 2017 35.8% 83 Average: 24.5% 98

FY 16/17 Revenue Summary

• Water Sales

– Budgeted = $11,944,200 – Projected = $11,109,000

• Wastewater Service Charges

– Budgeted = $11,280,000 – Projected = $11,452,400

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PROPOSED RATES

Proposed Water Rates

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Meter Size Baseline HCF’s* Current Rate FY 17/18 FY 18/19 FY 19/20 FY 20/21 1” 15 $27.85 $32.58 $36.33 $38.87 $41.60 1-1/2” 30 $55.70 $65.17 $72.66 $77.75 $83.19 2” 60 $111.42 $130.36 $145.35 $155.53 $166.41 3” 240 $445.66 $521.42 $581.39 $622.08 $665.63 4” 480 $891.33 $1,042.86 $1,162.78 $1,244.18 $1,331.27 6” 900 $1,671.22 $1,955.33 $2,180.19 $2,332.80 $2,496.10 8” 2,100 $3,899.53 $4,562.45 $5,087.13 $5,443.23 $5,824.26

Flow Rate Per Excess HCF

$1.430 $1.673 $1.866 $1.996 $2.136

*1 HCF = 748 Gallons

Proposed Water Rates

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$21.59 $28.50 $33.91 $39.49 $41.01 $42.59 $21.59 $27.85 $32.58 $36.33 $38.87 $41.60 $1.430 $1.430 $1.673 $1.866 $1.996 $2.136 $1.430 $1.430 $1.701 $1.981 $2.057 $2.137 FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21

Approved (Prop 218), Adopted & Proposed Rates

Approved: 1 Inch Meter Fixed Service Charge Proposed: 1 Inch Meter Fixed Service Charge Proposed: Volumetric Rate Per HCF above Baseline (15 hcf) Appoved & Adopted: Volumetric Rate Per HCF above Baseline (15 hcf)

Proposed FY 17/18 Water Rates

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Meter Size Baseline HCF’s* Difference from Prop. 218 Rates FY 17/18 Rates Difference from Prop. 218 Rates

1” 15 +4 $32.58 ($1.33) 1-1/2” 30 +8 $65.17 ($2.66) 2” 60 +16 $130.36 ($5.31) 3” 240 +64 $521.42 ($21.24) 4” 480 +128 $1,042.86 ($42.48) 6” 900 +240 $1,955.33 ($79.67) 8” 2,100 +560 $4,562.45 ($185.91)

Flow Rate Per Excess HCF

$1.673 ($0.028)

*1 HCF = 748 Gallons

Regional Comparison – 1” Water Service

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$35.00 $40.95 $44.39 $47.90 $56.32 $58.26 $65.12 $66.70 $66.95 $68.63 $96.26 $114.05 $115.99

$- $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 $140.00

Monthly Bill REGIONAL COMPARISON - MONTHLY WATER BILL SINGLE FAMILY RESIDENCE - 1" METER 20 HCF AVERAGE USE

Funding Allocation Over Time

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$0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Annual Obligations Fiscal Year Ending June 30

Water Revenue Requirements vs. Revenue Under Existing and Increased Rates

Reserve Funded Capital Expenses Rate Funded Capital Expenses Debt Service O&M Expenses Revenues under Existing Rates Revenues under Increased Rates

Debt Service - Water

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• 0.20

0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 2.00 11/12 12/13 13/14 14/15 15/16 E16/17 E17/18 Debt Coverage Ratio Fiscal Year Debt Service Coverage Ratio Minimum Required (1.20)

Proposed Wastewater Rates

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Sewer Rate Schedule Current Rate FY 17/18 FY 18/19 FY 19/20 FY 20/21 Single Family $44.58 $49.04 $53.95 $59.34 $65.27 Multi-Family $35.67 $39.24 $43.16 $47.48 $52.23 Commercial – C1 $44.58 $49.04 $53.95 $59.34 $65.27 Commercial – C2 $50.16 $55.18 $60.69 $66.76 $73.44 Commercial – C3 $60.75 $66.83 $73.51 $80.86 $88.95 Commercial Volumetric Charge (HCF) $1.76 $1.93 $2.13 $2.34 $2.57 Schools – Per Student/Year $20.47 $22.52 $24.77 $27.25 $29.97

Proposition 218 Approved & Council Adopted Wastewater Rates

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Sewer Rate Schedule Current Rate FY 17/18 FY 18/19 FY 19/20 FY 20/21

Industrial Volume (MG) $2,570.61 $2,827.67 $3,110.44 $3,421.48 $3,763.63 TSS (lbs) $0.198 $0.218 $0.240 $0.264 $0.290 BOD (lbs) $0.263 $0.290 $0.319 $0.350 $0.385 Septage Hauler $/Gallon $0.343 $0.378 $0.415 $0.457 $0.502

• Min. Charge 400

Gallons/ Dump $137.28 $151.01 $166.11 $182.72 $200.99

Regional Comparison – Single Family Residence

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$22.98 $32.80 $34.70 $37.96 $40.00 $41.60 $44.58 $49.04 $56.44 $57.00 $72.56 $82.69 $90.97

$- $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 $90.00 $100.00

Monthly Bill REGIONAL COMPARISON - MONTHLY SEWER BILL SINGLE FAMILY RESIDENCE

Funding Allocation Over Time

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$0 $2,500,000 $5,000,000 $7,500,000 $10,000,000 $12,500,000 $15,000,000 $17,500,000 $20,000,000 $22,500,000 $25,000,000 $27,500,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Annual Obligations Fiscal Year Ending June 30

Wastewater Revenue Requirements vs. Revenue Under Existing and Increased Rates

Reserve Funded Capital Expenses Rate Funded Capital Expenses Debt Service O&M Expenses Revenues under Existing Rates Revenues under Increased Rates

Debt Service - Wastewater

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• 0.40

0.80 1.20 1.60 2.00 2.40 2.80 3.20 3.60 4.00 11/12 12/13 13/14 14/15 15/16 E16/17 E17/18 Debt Coverage Ratio Fiscal Year Debt Service Coverage Ratio Minimum Required (1.20)

Bill Comparison for Single Family Dwelling (1” Service)

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Average Consumption Current Total Bill Proposed Water Bill Proposed Sewer Bill Total Proposed Bill

• Prop. 218

Bill Winter (11 HCF) $72.43 $32.58 $49.04 $81.62 $82.95 Annual (20 HCF) $79.58 $40.95 $49.04 $89.99 $91.46 Summer (31 HCF) $95.31 $59.35 $49.04 $108.39 $110.17

Affordable Drinking Water – Low Income Rate Assistance (LIRA) Program

• Assembly Bill 401

– Directs the State Water Resources Control Board to prepare a plan that covers funding and implementation of a Low-Income Water Rate Assistance Program – Plan is due January 1, 2018 – Report is due to Legislature by February 1, 2018 regarding feasibility, financial stability, and desired structure of the program

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Affordable Drinking Water – Low Income Rate Assistance (LIRA) Program

• Public Hearing July 10 in Sacramento to receive

public input

• 81% of Yuba City water customers are below the

200% Federal Poverty Line ($48,600 for a 4- person household)

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Affordable Drinking Water – Low Income Rate Assistance (LIRA) Program

• Four Program Scenario Alternatives
• 1. Households below 200% of the FPL are enrolled in a

statewide program offering 20% discount

• 2. Households below 200% of the FPL and paying less

than $100 on their monthly water bill receive a 20% discount; households below 200% of the FPL paying $100 or more on their monthly water bill receive a 35% discount

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Affordable Drinking Water – Low Income Rate Assistance (LIRA) Program

• Four Program Scenario Alternatives
• 3. Households below 200% of the FPL who are not

served by a CPUC-regulated water system with an existing LIRA are enrolled in a separate, unified program offering 20% discount

• 4. Households below 200% of the FPL who are served

by a water system not currently offering a compliant LIRA are enrolled in a separate, unified program

• ffering a 20% discount

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Council Options

• 1. Do nothing and the Proposition 218 approved

rates will go into effect on 7/1/17

• 2. Adopt the recommended Resolutions to set the

water rates below the Proposition 218 approved level and the wastewater rates at the Proposition 218 approved level

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Community Workshop

June 15, 2017 Council Chambers 5:30 PM

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FY 17/18 Budget Summary

• Water Operations Fund - $10,617,937

– Salaries & Benefits – 26.6% – Supplies & Services – 45.2% – Contributions to Other Funds – 28.2%

• Wastewater Operations Fund - $11,501,427

– Salaries & Benefits – 34.7% – Supplies & Services – 37.7% – Contributions to Other Funds – 27.6%

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FY 16/17 Revenue Summary

• Water Sales

– Budgeted = $11,944,200 – Projected = $11,109,000

• Total Water Revenues

– Budgeted = $13,366,300 – Projected = $12,619,400

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FY 16/17 Revenue Summary

• Wastewater Service Charges

– Budgeted = $11,280,000 – Projected = $11,452,400

• Total Wastewater Revenues

– Budgeted = $13,810,100 – Projected = $14,044,900

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