2013 Draft Water Rates

Note from TheGardeningSnail: Although This Meeting Was Canceled Until Further Notice, the information here is still relevant.

City of Livingston

UTILITY RATES STAKEHOLDER’S MEETING

City Council Chambers

December 19, 2013 @ 5:30 pm

AGENDA

 

1. REVISED CAPITAL IMPROVEMENT PLAN (WATER): OPTION A

2. REVISED CAPITAL IMPROVEMENT PLAN (WATER): OPTION B

3. DRAFT PRELIMINARY WATER RATES FOR OPTION A & B: PRESENTATION BY CATHERINE HANSFORD

4. CAPITAL IMPROVEMENT PLAN (SEWER)/PRELIMINARY RATES

5. FUNDING SOURCES

6. CALPOP PROGRAM WWTP

 

FACT SHEET FOR WATER RATE INCREASE and RESTRUCTURE

The City has been cutting operations costs to a bare minimum and has subsidized the water fund with other City funds for several years.

The City has identified a minimum of $10.7 million of capital improvements in today’s dollars to be funded over the next 5 years. In addition, improvements to wells 12 and 15 are highly desirable within this timeframe. Addition of the costs of wells 12 and 15 increase the total costs to $13.8 million in today’s dollars.

  • o The funding plan applies a City-awarded grant of $1,395,000 for well 17 and assumes that improvements to wells 12, 13, 15, and 18 are paid for through a State Revolving Fund loan at 0% interest repaid over 20 years. The City will continue to aggressively pursue any grant opportunities. Improvements to wells 8, 14, and exploratory well 16 will be paid for with TCP settlement funds.

The current rate structure has many obsolete codes and is complicated for certain customer categories. The new rate structure simplifies the calculations for monthly billing:

  • Attached units (such as apartments) will have a monthly allowance of 10,000 gallons

  • Single family homes will have a monthly allowance of 25,000 gallons

  • All other customers will have a monthly allowance of 35,000 gallons

  • All water usage above the monthly allowance will be billed at the same rate per gallon

Customer bills will continue to be comprised of 3 fees: (1) service charge (flat rate each month), (2) meter replacement fee (flat rate each month), and (3) use charge (for use above the allowance)

By raising the rates in 2014 with the new rate structure the City will generate sufficient revenue to continue to meet its bond covenants, to build a healthy reserve, to fund necessary capital improvements and to fully fund water operations without using other City funds. Two rate scenarios are provided. Under Scenario A all the CIP items are planned to be built within the next 5 to 6 years.

Under Scenario B improvements to wells 12 and 15 are not completed.

For a single family home the potential total utility bill is:

Image 1

T0 see the rest of this report: click on the following: Summary Water Dec16 2013

You will probably also be interested in the two links below

Summary Sewer Rate Increase and Restructure Dec16 2013

Water Key Tables Reduced Capital Improvement Projects.

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