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HomeMy WebLinkAboutAgenda Packet - Finance & Human Resources Committee - 02/27/2024FINANCE & HUMAN RESOURCES COMMITTEE FEBRUARY 27, 2024 East Valley Water District was formed in 1954 and provides water and wastewater services to 107,000 residents within the cities of San Bernardino and Highland, and portions of San Bernardino County. EVWD operates under the direction of a 5­member elected Board. COMMITTEE MEMBERS David E. Smith Governing Board Member Ronald L. Coats Governing Board Member Special Finance & Human Resources Committee Meeting February 27, 2024 ­ 2:00 PM 31111 Greenspot Road, Highland, CA 92346 www.eastvalley.org PLEASE NOTE: Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection in the District’s office located at 31111 Greenspot Rd., Highland, during normal business hours. Also, such documents are available on the District’s website at eastvalley.org and are subject to staff’s ability to post the documents before the meeting. Pursuant to Government Code Section 54954.2(a), any request for a disability­related modification or accommodation, including auxiliary aids or services, that is sought in order to participate in the above agendized public meeting should be directed to the District Clerk at (909) 885­4900 at least 72 hours prior to said meeting. In order to comply with legal requirements for posting of agenda, only those items filed with the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesday meeting not requiring departmental investigation, will be considered by the Board of Directors. CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. INFORMATIONAL ITEMS 1.​Cost­of­Service and Rate Design Workshop REPORTS 2.Finance Activities 3.Human Resource Activities ADJOURN FINANCE & HUMAN RESOURCES COMMITTEEFEBRUARY 27, 2024East Valley Water District was formed in 1954 and provides water and wastewater services to107,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County.EVWD operates under the direction of a 5­member elected Board.COMMITTEE MEMBERS David E. Smith Governing Board Member Ronald L. Coats Governing Board Member Special Finance & Human Resources Committee Meeting February 27, 2024 ­ 2:00 PM 31111 Greenspot Road, Highland, CA 92346 www.eastvalley.org PLEASE NOTE: Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection in the District’s office located at 31111 Greenspot Rd., Highland, during normal business hours. Also, such documents are available on the District’s website at eastvalley.org and are subject to staff’s ability to post the documents before the meeting. Pursuant to Government Code Section 54954.2(a), any request for a disability­related modification or accommodation, including auxiliary aids or services, that is sought in order to participate in the above agendized public meeting should be directed to the District Clerk at (909) 885­4900 at least 72 hours prior to said meeting. In order to comply with legal requirements for posting of agenda, only those items filed with the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesday meeting not requiring departmental investigation, will be considered by the Board of Directors. CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. INFORMATIONAL ITEMS 1.​Cost­of­Service and Rate Design Workshop REPORTS 2.Finance Activities 3.Human Resource Activities ADJOURN FINANCE & HUMAN RESOURCES COMMITTEEFEBRUARY 27, 2024East Valley Water District was formed in 1954 and provides water and wastewater services to107,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County.EVWD operates under the direction of a 5­member elected Board.COMMITTEE MEMBERSDavid E. SmithGoverning Board Member Ronald L. CoatsGoverning Board MemberSpecial Finance & Human Resources Committee MeetingFebruary 27, 2024 ­ 2:00 PM31111 Greenspot Road, Highland, CA 92346www.eastvalley.orgPLEASE NOTE:Materials related to an item on this agenda submitted to the Board after distribution of theagenda packet are available for public inspection in the District’s office located at 31111Greenspot Rd., Highland, during normal business hours. Also, such documents are availableon the District’s website at eastvalley.org and are subject to staff’s ability to post thedocuments before the meeting.Pursuant to Government Code Section 54954.2(a), any request for a disability­relatedmodification or accommodation, including auxiliary aids or services, that is sought in orderto participate in the above agendized public meeting should be directed to the District Clerkat (909) 885­4900 at least 72 hours prior to said meeting. In order to comply with legal requirements for posting of agenda, only those items filed with the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesday meeting not requiring departmental investigation, will be considered by the Board of Directors. CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. INFORMATIONAL ITEMS 1.​Cost­of­Service and Rate Design Workshop REPORTS 2.Finance Activities 3.Human Resource Activities ADJOURN Brian Tompkins, Chief Financial Officer CURRENT RATE STRUCTURE February 27, 2024 2 WATER BUDGET RATE STRUCTURE Behavior Change Water Resource Management Price Information 3 WATER BUDGET TIER STRUCTURE 4 INDOOR WATER BUDGET Indoor Water Budget “IWB” Size Household Size – No. of Residents GPCD Gallons per Capita per day Days Days of Service V indoor Indoor Variance OUTDOOR WATER BUDGET 5 Outdoor Water Budget “OWB” ET0 Evapotranspiration Weather Data ETAF ET Adjustment Factors LA Landscape Area (1 sq. ft. = 0.62 gals)DF Outdoor Drought Factor V outdoor Outdoor Variance 6 BUDGETS BY CUSTOMER CLASS TIERS RESIDENTIAL IRRIGATION NON-RESIDENTIAL Tier 1 Budget N/A 90% of Historical Tier 2 Budget Budget 10% of Historical Tier 3 Excess Use Excess Use Excess Use CUSTOMER CLASSES PRIOR CURRENT Single-Family Residential Single-Family Residential Multi-Family Residential Multi-Family Residential Office Building / Motel Commercial / Retail Municipal School / Church Car Wash Low Strength Dry Cleaner / Laundromat Hospital / Convalescent Facility Auto Repair Medium Strength Restaurant Hotel w/ Restaurant High Strength Patton 7 8 COST OF SERVICE Cost Components for Rate Development Biological Oxygen Demand (BOD) Total Suspended Solids (TSS)Collection Fixed Treatment Fixed $3,961,923 $3,778,350 Units of Service Accounts/Units 365,916 Units of Service Accounts/Units 365,916 $1,585,761 $2,148,125 Units of Service Flow 2,817,840 Units of Service Flow 2,817,840 $1,566,420 $1,566,420 Units of Service Weighted TSS 444,191 Treatment Flow Collection Variable Units of Service Weighted BOD 458,310 Cost Of Service 9 CHARGES –CUSTOMER CLASS CUSTOMER CLASS ACCOUNTS DWELLING UNITS FIXED CHARGE VOLUMETRIC CHARGE (HCF) Single-Family 19,325 19,325 X Multi-Family 458 10,654 X Commercial –Low Strength 463 N/A X X Commercial –Medium Strength 70 N/A X X Commercial –High Strength 86 N/A X X Commercial –Patton 1 N/A X X DISCUSSION East Valley Water District Cost-of-Service and Rate Design Workshop February 27, 2024 Cost -of-Service and Rate Design Workshop Agenda 1 2 3 4 5 Water Cost-of-Service and Rates 2 Reclamation Cost-of-Service and Rates Next Steps Collections Cost-of-Service and Rates Customer Impacts Water Enterprise Review Current Financial Position Proposed Long-Term Financial Plan Cost-of-Service and Rates Water –Financial Position at Current Rates Results From Review 4  FY 2024 is developing into another wet winter Year -to-date water consumption is similar to FY 2023  Net operating income decreasing Annual rate-funded capital averages $6.7M over the next 5 years Revenue increases are needed to continue meeting requirements Water –Capital Improvement Plan (CIP) CIP with Funding Sources 5  Grant Funding: $19.5M for seismic upgrades  New well: $4M will be funded by Capacity Fees  Debt funding option: $12M in new proceeds $3.8 $10.8 $11.9 $12.4 $12.1 $9.9 $0 $2 $4 $6 $8 $10 $12 $14 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Mi l l i o n s Capital Funding Sources Capacity Fee Funded Debt Funded Grant Funded Rate /Reserve Funded Total CIP $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Mi l l i o n s Opera�ng Financial Plan Net Cashflow Projected Revenue Opera�ng Expenses $3.8 $10.8 $11.9 $12.4 $12.1 $9.9 $0 $2 $4 $6 $8 $10 $12 $14 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Mi l l i o n s Capital Funding Sources Capacity Fee Funded Debt Funded Grant Funded Rate /Reserve Funded Total CIP $0 $10 $20 $30 $40 $50 $60 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Mi l l i o n s All Reserves (except Capacity ) Ending Balance Minimum Reserve Target Reserve Proposed Water Financial Plan –No Debt FY 2024 – FY 2029 Planning Period 6 Proposed Financial Plan  Positive Net Income  Fully Fund Planned CIP  Meets minimum reserve in FY 2027 Revenue Adjustments: FY 2025 – FY 2027: 9.5%, 9.5%, 9.5% FY 2028 – FY 2029: 6%, 6% $0 $5 $10 $15 $20 $25 $30 $35 $40 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Mi l l i o n s Opera�ng Financial Plan Net Cashflow Projected Revenue Opera�ng Expenses $0 $10 $20 $30 $40 $50 $60 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Mi l l i o n s All Reserves (except Capacity) Ending Balance Minimum Reserve Target Reserve Proposed Water Financial Plan –With Debt FY 2024 – FY 2029 Planning Period 7 Proposed Financial Plan  Positive Net Income  Fully Fund Planned CIP $12M in Debt Proceeds  Meets minimum reserve in FY 2027 Revenue Adjustments: FY 2025 – FY 2027: 6%, 6%, 6%, FY 2028 – FY 2029: 6%, 6% FY 2025 Water Cost-of-Service Rate Components 8 Fixed Components 37% Variable Components 63% $3.6M Units of Service Total Bills $7.7M Units of Service Meter Equivalents $126k Units of Service Fire Flow Demand Account Services Meter Capacity Fire Flow Demand $2.3M Units of Service Water Usage by Class and Tier $10.6M Units of Service Total Usage $4.9M Units of Service Weighted Peak $1M Units of Service Tier 3 Usage Groundwater Delivery Peaking $346k Units of Service Water Usage by Class and Tier State Water Project $262k Units of Service Water Usage by Class and Tier Surface Water Water Efficiency 9 FY 2025 Proposed Water Fixed Charges Monthly Fixed Charge Components Proposed Monthly Fixed Charges Meter Size EVWD Ratio # of Meters Account Service Meter Capacity Fire Flow Demand FY 2025 Proposed Fixed Charge [A][B] = Unit Rate [C] = A × Unit Rate [D] = A × Unit Rate [E] = B + C + D 5/8"0.67 3,479 $13.80 $14.51 $0.22 $28.53 3/4"1.00 13,066 $13.80 $21.76 $0.32 $35.88 1"1.67 4,235 $13.80 $36.27 $0.54 $50.61 1 1/2"3.33 276 $13.80 $72.54 $1.07 $87.41 2"5.33 303 $13.80 $116.06 $1.71 $131.57 3"16.67 63 $13.80 $362.67 $5.34 $381.81 4"41.67 24 $13.80 $906.67 $13.34 $933.81 6"66.67 12 $13.80 $1,450.67 $21.34 $1,485.81 8"133.33 13 $13.80 $2,901.34 $42.67 $2,957.81 10"216.67 0 $13.80 $4,714.67 $69.34 $4,797.81 12"266.67 0 $13.80 $5,802.67 $85.34 $5,901.81 Proposed vs. Existing Existing Fixed Charge Difference ($) Difference (%) $25.49 $3.04 11.9% $32.74 $3.14 9.6% $47.24 $3.37 7.1% $83.50 $3.91 4.7% $127.00 $4.57 3.6% $243.01 $138.80 57.1% $373.52 $560.29 150.0% $736.05 $749.76 101.9% $2,041.16 $916.65 44.9% $2,041.16 $2,756.65 135.1% $2,041.16 $3,860.65 189.1% 10 Proposed Water Fixed Charge Schedule FY 2025 –FY 2027 Proposed Monthly Fixed Charges Meter Size FY 2025 FY 2026 FY 2027 5/8"$28.53 $31.25 $34.22 3/4"$35.88 $39.29 $43.03 1"$50.61 $55.42 $60.69 1 1/2"$87.41 $95.72 $104.82 2"$131.57 $144.07 $157.76 3"$381.81 $418.09 $457.81 4"$933.81 $1,022.53 $1,119.68 6"$1,485.81 $1,626.97 $1,781.54 8"$2,957.81 $3,238.81 $3,546.50 10"$4,797.81 $5,253.61 $5,752.71 12"$5,901.81 $6,462.49 $7,076.43 11 FY 2025 Proposed Water Commodity Rates Commodity Rate Components Proposed vs. Existing Existing Commodity Rate Difference ($)Difference (%) $2.11 $0.15 7.1% $2.70 $0.23 8.5% $4.18 $0.06 1.4% $2.11 $0.35 16.6% Proposed Commodity Rates ($/hcf) Customer Class & Tiers Tiers Projected Usage (hcf) Water Supply Delivery Peaking Water Efficiency FY 2025 Proposed Commodity Rates [A][B][C][D]E = A + B + C + D Budget Based Customers Tier 1 IWB 2,413,489 $0.31 $1.56 $0.39 $0.00 $2.26 Tier 2 OWB 2,544,818 $0.52 $1.56 $0.85 $0.00 $2.93 Tier 3 > TWB 1,159,766 $0.52 $1.56 $1.28 $0.88 $4.24 Commercial Tier 1 Uniform 701,355 $0.44 $1.56 $0.46 $0.00 $2.46 Rate Structure Adjustments  Residential SB 1157 sets new standards for indoor water usage at 47 gpcd starting in January 2025, and 42 gpcd by January 2030 Indoor Water Budget reduced by 1 hcf, reflecting 47 gpcd  Commercial Budget-based rates include two tiers: Tier 1 equal to 90% of historical use; Tier 2 equal to 10% of historical use Based on current structure, efficient commercial accounts would see their Tier 1 budget reduce every year Recommend adjusting from Budget-Based Rates to a Uniform Rate 12 Proposed Water Commodity Rate Schedule FY 2025 –FY 2027 Proposed Commodity Rates ($/hcf) Customer Class & Tiers FY 2025 FY 2026 FY 2027 Budget Based Customers Tier 1 $2.26 $2.48 $2.72 Tier 2 $2.93 $3.21 $3.52 Tier 3 $4.24 $4.65 $5.10 Commercial Tier 1 $2.46 $2.70 $2.96 13 FY 2025 Proposed Water Rates with Debt Funding Rate Comparison: Without Debt vs With Debt Proposed Monthly Fixed Charges Meter Size FY 2025 FY 2026 FY 2027 5/8"$28.53 $31.25 $34.22 3/4"$35.88 $39.29 $43.03 1"$50.61 $55.42 $60.69 1 1/2"$87.41 $95.72 $104.82 2"$131.57 $144.07 $157.76 3"$381.81 $418.09 $457.81 4"$933.81 $1,022.53 $1,119.68 6"$1,485.81 $1,626.97 $1,781.54 8"$2,957.81 $3,238.81 $3,546.50 10"$4,797.81 $5,253.61 $5,752.71 12"$5,901.81 $6,462.49 $7,076.43 Proposed Commodity Rates ($/hcf) Customer Class & Tiers FY 2025 FY 2026 FY 2027 Budget Based Customers Tier 1 $2.26 $2.48 $2.72 Tier 2 $2.93 $3.21 $3.52 Tier 3 $4.24 $4.65 $5.10 Commercial Tier 1 $2.46 $2.70 $2.96 Proposed Monthly Fixed Charges Meter Size FY 2025 FY 2026 FY 2027 5/8"$27.52 $29.18 $30.94 3/4"$34.62 $36.70 $38.91 1"$48.83 $51.76 $54.87 1 1/2"$84.35 $89.42 $94.79 2"$126.97 $134.59 $142.67 3"$368.48 $390.59 $414.03 4"$901.23 $955.31 $1,012.63 6"$1,433.98 $1,520.02 $1,611.23 8"$2,854.65 $3,025.93 $3,207.49 10"$4,630.48 $4,908.31 $5,202.81 12"$5,695.98 $6,037.74 $6,400.01 Proposed Commodity Rates ($/hcf) Customer Class & Tiers FY 2025 FY 2026 FY 2027 Budget Based Customers Tier 1 $2.19 $2.33 $2.47 Tier 2 $2.84 $3.02 $3.21 Tier 3 $4.10 $4.35 $4.62 Commercial Tier 1 $2.39 $2.54 $2.70 Without Debt With Debt Wastewater (WW) – Collection Enterprise Review of Current Financial Position Proposed Long-Term Financial Plan Cost-of-Service and Rates WW Collection –Financial Position at Current Rates Results from Review 15  Healthy net income, but decreases annually  CIP includes standard mainline replacement and capital outlay Reserves slightly below minimum and requires a rate adjustment to meet minimum reserves WW Collection –Capital Improvement Plan (CIP) CIP with Funding Sources 16 $0 $1 $2 $3 $4 $5 $6 $7 $8 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Mi l l i o n s Opera�ng Financial Plan Net Cashflow Projected Revenue Opera�ng Expenses $0 $1 $2 $3 $4 $5 $6 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Mi l l i o n s All Reserves (except Capacity) Ending Balance Minimum Reserve Target Reserve WW Collection –Proposed Financial Plan FY 2024 – FY 2029 Planning Period 17 Proposed Financial Plan  Positive Net Income  Fully Fund Planned CIP  Meet minimum reserves Revenue Adjustments: FY 2025 – FY 2027: 3%, 3%, 3% FY 2028 – FY 2029: 3%, 3% FY 2025 Collection Cost-of-Service Rate Components 18 19 FY 2025 Collection Proposed Fixed Charges Residential Proposed vs. Existing Existing Difference ($)Difference (%) $16.32 $0.38 2.3% $15.42 $0.06 0.4% Proposed Monthly Fixed Charges Customer Class Account Services Flow Total Revenue Requirement Single Family $2,468,851 $1,423,495 $3,892,346 Multi-Family $1,386,791 $639,679 $2,026,470 Proposed Monthly Fixed Charges Customer Class Annual Billing Units Total Revenue Requirement Total Monthly Fixed Charge [A][B][C] = B ÷ A Single Family 233,136 $3,892,346 $16.70 Multi-Family 130,956 $2,026,470 $15.48 20 FY 2025 Collection Proposed Charges Non-Residential Proposed Monthly Fixed Charges Customer Class Annual Billing Units Account Services Total Monthly [A][B][C] = B ÷ A Non-Residential 7,776 $82,346 $10.59 Proposed vs. Existing Existing Difference ($)Difference (%) $11.84 ($1.25)-10.6% Proposed vs. Existing Existing Difference ($)Difference (%) $0.41 $0.36 87.8% $0.54 $0.23 42.6% $0.54 $0.23 42.6% $0.41 $0.04 9.8% $0.66 ($0.22)-33.3% Proposed Variable Rates ($/hcf) Customer Class Non-Residential Water Usage (hcf) Flow Total Variable Rates ($/hcf) [A][B][C] = B ÷ A Non-Residential Low Strength 202,777 $155,015 $0.77 Medium Strength 74,000 $56,570 $0.77 High Strength 198,237 $151,544 $0.77 Schools & Churches 150,994 $67,887 $0.45 Patton State Hospital 163,645 $71,822 $0.44 21 Proposed Collection Rate Schedule FY 2025 –FY 2027 Fixed Charges ($/Month) Customer Class FY 2025 FY 2026 FY 2027 Single Family $16.70 $17.21 $17.73 Multi-Family $15.48 $15.95 $16.43 Non-Residential Low Strength $10.59 $10.91 $11.24 Medium Strength $10.59 $10.91 $11.24 High Strength $10.59 $10.91 $11.24 Schools & Churches $10.59 $10.91 $11.24 Patton State Hospital $10.59 $10.91 $11.24 Variable Rates ($/hcf) Customer Class FY 2025 FY 2026 FY 2027 Non-Residential Low Strength $0.77 $0.80 $0.83 Medium Strength $0.77 $0.80 $0.83 High Strength $0.77 $0.80 $0.83 Schools & Churches $0.45 $0.47 $0.49 Patton State Hospital $0.44 $0.46 $0.48 Wastewater (WW) – Reclamation Enterprise Review of Current Financial Position Proposed Long-Term Financial Plan Cost-of-Service and Rates Reclamation –Financial Position at Current Rates Results From Review 23  SNRC debt payments commence in FY 2026 = $7.6M  Required debt reserve needs to be funded (equal to annual debt payment) Capacity Fees = $3M Edison SGIP Program = $2M SRF reimbursements from previously funded SNRC construction = $2.66M Rate revenue increases needed to meet increased operating expenses (SNRC debt payments) and maintain healthy reserves Reclamation –Capital Improvement Plan (CIP) CIP with Funding Sources 24  SRF Funded = $4M remaining draw ($5) $0 $5 $10 $15 $20 $25 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Mi l l i o n s Opera�ng Financial Plan Net Cashflow Projected Revenue Opera�ng Expenses $0 $5 $10 $15 $20 $25 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 Mi l l i o n s All Reserves Ending Balance Minimum Reserve Target Reserve Reclamation –Proposed Financial Plan FY 2024 – FY 2029 Planning Period 25 Proposed Financial Plan Limited net Income as SNRC debt comes online Reserves can absorb shortages Fully Fund Planned CIP  Meet minimum reserves Revenue Adjustments: FY 2025 – FY 2027: 10%, 10%, 10% FY 2028 – FY 2029: 8%, 8% FY 2025 Reclamation Cost-of-Service Rate Components 26 $3.4M Units of Service Total Bills Account Services $3.6M Units of Service Flow Flow $2.6M Units of Service Weighted COD Chemical Oxygen Demand $2.6M Units of Service Weighted TSS Total Suspended Solids Variable Components 27 FY 2025 Reclamation Proposed Fixed Charges Residential Customer Class Account Services Flow COD TSS Total Revenue Requirement [A][B][C][D][E] = A+B+C+D Single-Family $2,133,951 $2,017,971 $1,351,728 $1,459,163 $6,962,813 Multi-Family $1,198,673 $906,820 $607,429 $655,707 $3,368,628 Proposed Monthly Fixed Charges Customer Class Annual Billing Units Total Revenue Requirement Total Monthly Fixed Charge [A][B][C] = B ÷ A Single-Family 233,136 $6,962,813 $29.87 Multi-Family 130,956 $3,368,628 $25.73 Proposed vs. Existing Existing Difference ($)Difference (%) $26.77 $3.10 11.6% $23.90 $1.83 7.7% 28 FY 2025 Reclamation Proposed Charges Non-Residential Proposed Monthly Fixed Charges Customer Class Annual Billing Units Account Services Total Monthly [A][B][C] = B ÷ A Non-Residential 7,776 $71,176 $9.16 Proposed vs. Existing Existing Difference ($)Difference (%) $12.41 ($3.25)-26.2% Proposed Variable Rates ($/hcf)Variable Rate Components Variable Rates Customer Class Non-Residential Water Usage (hcf) Flow COD TSS Flow COD TSS Total Variable Rates ($/hcf) [A][B][C][D][E] = B ÷ A [F] = C ÷ A [G] = D ÷ A [H] = E + F + G Non-Residential Low Strength 202,777 $219,752 $134,299 $87,656 $1.09 $0.67 $0.44 $2.20 Medium Strength 74,000 $80,195 $49,213 $57,764 $1.09 $0.67 $0.79 $2.55 High Strength 198,237 $214,832 $322,015 $247,809 $1.09 $1.63 $1.26 $3.98 Schools & Churches 150,994 $96,238 $58,815 $38,388 $0.64 $0.39 $0.26 $1.29 Patton State Hospital 163,645 $101,816 $62,789 $39,801 $0.63 $0.39 $0.25 $1.27 Proposed vs. Existing Existing Difference ($)Difference (%) $1.11 $1.09 98.2% $1.76 $0.79 44.9% $3.92 $0.06 1.5% $1.11 $0.18 16.2% $2.06 ($0.79)-38.3% 29 Proposed Reclamation Rate Schedule FY 2025 –FY 2027 Fixed Charges ($/Month) Customer Class FY 2025 FY 2026 FY 2027 Single-Family $29.87 $32.86 $36.15 Multi-Family $25.73 $28.31 $31.15 Non-Residential Low Strength $9.16 $10.08 $11.09 Medium Strength $9.16 $10.08 $11.09 High Strength $9.16 $10.08 $11.09 Schools & Churches $9.16 $10.08 $11.09 Patton State Hospital $9.16 $10.08 $11.09 Variable Rates ($/hcf) Customer Class FY 2025 FY 2026 FY 2027 Non-Residential Low Strength $2.20 $2.42 $2.67 Medium Strength $2.55 $2.81 $3.10 High Strength $3.98 $4.38 $4.82 Schools & Churches $1.29 $1.42 $1.57 Patton State Hospital $1.27 $1.40 $1.54 Customer Impact Without Debt and With Debt 31 FY 2025 Customer Impacts –No Debt for Water Single-Family Residential with 3/4” Meter at 21 HCF 32 FY 2025 Customer Impacts –With Debt for Water Single-Family Residential with 3/4” Meter at 21 HCF Next Steps Upcoming Tasks / Meetings 33  Draft Presentation for Board March 13th Meeting Board Rate Workshop March 13th Draft Prop. 218 Notice Prepare Cost-of-Service Report Public Hearing: May 15, 2024