AGENDA TITLE:
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Set Public Hearing for January 17, 2024, to Consider Adopting Resolution Setting Future Water and Wastewater Rate Schedules Pursuant to Proposition 218 for Residential, Commercial and Industrial Customers (PW)
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MEETING DATE:
November 15, 2023
PREPARED BY:
Rebecca Areida, PW Management Analyst
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RECOMMENDED ACTION:
Set public hearing for January 17, 2024, to consider adopting resolution setting future water and wastewater rate schedules pursuant to Proposition 218 for residential, commercial and industrial customers.
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BACKGROUND INFORMATION:
In 2019, the City Council approved a five-year rate program for the water and wastewater utilities. The Council action complied with the Proposition 218 requirements pertaining to such actions. The last pre-approved rate adjustment under the current program for the water utility reflected a 3% increase effective March 1, 2023, which was at the cap of 3% approved in 2019; and a 3% increase for wastewater utility effective July 1, 2023, which was also at the cap of 3%, also approved in 2019. The Staff recommendation for the maximum annual rate increase of 3 percent was largely driven by the historic inflation rates over the past several years.
In the new five-year program, the requested cap would be set at 5% in consideration of the recent rise in inflation. A summary of the past rate adjustments is provided in the table in Exhibit A. The purpose of this table is to demonstrate past rate increases have frequently been below the approved rate cap of 3 percent.
Proposed rate schedules and information outlining the financial plan, along with a cost of services study examining the operational costs, water and wastewater treatment, water delivery, wastewater collection, facility replacement/upgrades and many other factors was presented at the September 26, 2023, Shirtsleeve meeting. The public hearing being conducted is to consider adopting the various rate schedules for...
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