Heber Public Utility District W ATER W ASTEWATER
Heber Public Utility District W ATER & W ASTEWATER R ATE S TUDY Rate Hearing March 16 th, 2016 BARTLE WELLS ASSOCIATES Independent Public Finance Advisors
STUDY OBJECTIVES Develop five-year water & wastewater rate plan Recommend rate structures to recover the full cost of providing water & wastewater service Develop rates that meet California’s legal requirements Phase-in rate increases gradually over five years New rates effective annually on July 1 st beginning in 2017 2
BACKGROUND Last rate and fee study was in 2009/10 Last rate increase was July 1, 2013 Drought and State-mandated cutbacks Potential for new growth and development Prop. 218 - San Juan Capistrano decision 3
WHY RATE INCREASES ARE NEEDED There have been no rate increases for 4 years Conservation has resulted in less net income for capital projects and debt service coverage Between 2017 and 2022, the District is projected to spend over $15 M in water and wastewater capital projects The District is required to maintain a minimum restricted fund balance Prop. 218 - San Juan Capistrano decision requires for all rates to be cost justified 4
CURRENT WATER RATES Class and Meter Size Base Limit Fixed Charge Variable (Gallons) ($/month) ($/1000 gallons) 1" Meter or less 15, 000 $53. 57 $3. 57 Multi-Residential: 1" Meter or less 15, 000 $53. 57 $3. 57 2" Meter 40, 000 $246. 88 $3. 57 3" Meter 60, 000 $470. 62 $3. 57 1" Meter or less 15, 000 $75. 09 $3. 57 2" Meter 40, 000 $246. 88 $3. 57 3" Meter 60, 000 $470. 62 $3. 57 4" Meter 75, 000 $705. 93 $3. 57 1" Meter or less 15, 000 $75. 09 $1. 79 2" Meter 40, 000 $246. 88 $1. 79 3" Meter 60, 000 $470. 62 $1. 79 1" Meter 15, 000 $66. 96 $3. 57 2" Meter 30, 000 $156. 17 $3. 57 Single-Family Residential: Commercial/Industrial: Public Agency Service Outside District (SOD) 5
CURRENT WASTEWATER RATES Current Rates as of July 1, 2013 Single-Family Residential Monthly 4" Connection $52. 31 6" Connection $78. 47 8" Connection $117. 71 Multi-Family, Commercial, Industrial, and Public 4" Connection 6 $71. 62 6" Connection $107. 42 8" Connection $143. 23
PROPOSED WATER RATES Please refer to Prop 218 notice for rates Five-year rate phase-in to minimize impact Public agency water volume rates go up to reflect the average cost to serve all customers Basic residential water bill increases $2. 50 per month on July 1 , 2017 Water rates are below regional average 7
PROPOSED WASTEWATER RATES Please refer to the Prop 218 notice for rates Implementation of a wastewater volume rate for Non-Residential customers Users that contribute higher flows into the sewer system will pay a higher monthly bill Residential wastewater bill increases $2. 45 per month Combined Residential (water & wastewater) bill increases $4. 95 per month (4. 7%) 8
PROPOSED RESIDENTIAL RATE INCREASES 9
WATER RATE SURVEY 10
WASTEWATER RATE SURVEY 11
RATE IMPLEMENTATION Proposition 218 Notices mailed to all customers no less than 45 days before the rate hearing Public Rate Hearing – Board of Directors must approve proposed rates in order for rates to be implemented Rates are subject to majority protest If more than 50% of customers protest the rate increase (in writing), the rates may not be adopted 12
Questions? Comments? BARTLE WELLS ASSOCIATES Independent Public Finance Advisors
- Slides: 13