SUBJECT
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Public Hearing to consider the adoption of a Resolution approving proposed revisions to the Utilities Division Schedule of Rates, Charges, and Fees (No fiscal impact).
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DESCRIPTION
In July, 2024, the Board adopted a five-year Utilities Rate Plan adjusting rates to meet the projected capital and operating expenses of the County's water utility system. At that time it was noted that if inflation persisted above anticipated rates and project costs continued to increase beyond financial projections, the Rate Plan would need to be further adjusted to address those conditions. During a rate study conducted for a proposed 2026 bond series which would fund capital improvements to both new and existing water and wastewater facilities, it was determined that the existing utility rates were insufficient to fund the aggregate costs of utility operating expenses, required debt service payments, and those capital improvement costs which are funded from utility rates and surcharges.
To address the funding shortfall, Utilities staff engaged a rate consultant and recommends the following changes to the County's current Utilities Rate Plan: (i) extend the present $0.25 per year PWRI/AWS Surcharge increase into each of the years 2029 and 2030; (ii) extend the present six percent (6%) indexing of its potable water rates and wastewater rates into each of the years 2029 and 2030; (iii) increase the base facility charge and usage charges for each reclaimed water service connection, as follows: on October 1, 2026 increase by 1.5 times the existing rate, on April 1, 2027 increase the rate by thirty-three percent (33%), and on October 1st for each of the years 2027 - 2030 (inclusive) increase the rate by six percent (6%); (iv) establish a fee of $0.15 per gallon for septage processing; and (v) on January, 1, 2027, increase the water connection charge by nine hundred fifty-one dollars ($951.00) per Equivalent Residential Connection ("ERC") and the wastewater con...
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