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HomeMy WebLinkAbout2025-02-11; City Council; 08; 2025 Cost of Service Studies for Water and Wastewater, Setting a Public Hearing to Approve Rate Changes, Issuing a Written Notice of the Public Hearing and Establishing PCA Review GH Meeting Date: Feb. 11, 2025 To: Mayor/President and City Council/Board Members From: Geoff Patnoe, City Manager/Executive Manager Staff Contact: Shoshana Aguilar, Senior Management Analyst shoshana.aguilar@carlsbadca.gov, 760-814-0241 Amanda L. Flesse, Utilities Director/General Manager amanda.flesse@carlsbadca.gov, 760-438-2722 Subject: 2025 Cost of Service Studies for Water and Wastewater, Setting a Public Hearing to Approve Rate Changes, Issuing a Written Notice of the Public Hearing and Establishing Procedures for Objections to Proposed Fees Districts: All Recommended Actions 1.Adopt a City Council resolution approving and filing the 2025 Wastewater Cost of Service Study, setting a public hearing for April 22, 2025, at 5 p.m., to approve increases to rates for wastewater services effective July 1, 2025, and directing the City Manager or designee to issue a written notice of the public hearing. 2.Adopt a City Council resolution establishing a procedure for customer and property owner objections to proposed property-related fees and charges for wastewater services. 3.Adopt a Carlsbad Municipal Water District Board of Directors resolution approving and filing the 2025 Potable and Recycled Water Cost of Service Study, Setting a public hearing for April 22, 2025, at 5 p.m., to approve increases to rates for potable and recycled water services effective July 1, 2025, and directing the Executive Manager or designee to issue written notice of the public hearing. 4.Adopt a Carlsbad Municipal Water District Board of Directors resolution establishing a procedure for customer and property owner objections to proposed water-related fees and charges for water services. Executive Summary Rate increases are needed to pay for increased costs to run Carlsbad’s water, recycled water and wastewater. The City of Carlsbad and the Carlsbad Municipal Water District, or the CMWD, recently completed studies on the cost of providing potable water, recycled water and wastewater services within their respective services areas. Cost-of-service studies with rate analyses are performed periodically so that revenues from rates adequately fund utility operations, maintenance and capital investments. These cost-of- service studies assess how much revenue needs to be collected to cover the costs of delivering Feb. 11, 2025 Item #8 Page 1 of 265 these services. By law, rates may only be high enough to cover the actual cost to provide the service. Based on these studies, staff recommend increases to the rates for potable water, recycled water and wastewater services for the next three years, as detailed below. The rates being proposed are below the county average for potable water, recycled and wastewater services, and the proposed rate for potable water will be less than the 2025 average even into the third year of increases. The main driver of the proposed water rate increases is the increased costs of purchased water from the San Diego County Water Authority, which are passed on to the CMWD’s customers. Other drivers for the proposed rate increases include: • Increased costs for wastewater treatment from the Encina Wastewater Authority • The need to make capital investments in maintaining more than $2.1 billion1 worth of city and CMWD utility infrastructure assets, as well as regional wastewater treatment infrastructure that has reached the end of its useful life • Increased costs of materials and supplies needed to operate the potable water, recycled water and wastewater systems • Maintaining sufficient reserves for fiscal stability, as required by the Utilities Reserve Policy, City Council Policy No. 96 The cost-of-service studies recommend increasing the rates for each of the utility services to provide adequate funding to operate, maintain and rehabilitate the utility infrastructure systems that are critical to the public health of our community, the prosperity of the city and the healthy natural environment that Carlsbad enjoys. Additionally, maintaining the fiscal health of the potable water, recycled water and wastewater services is part of the goals of the city’s Strategic Plan. Ultimately, reliable water and wastewater services maintain the quality of life and safety of our residents, businesses and visitors. The cost-of-service studies describe the services that are provided by these utilities, how the rate analysis was performed and the results. Information on rates that includes comparisons to similar utilities in the region is included in this staff report. Financial data, including historical results and future budget projections, is incorporated into the cost-of-service studies. The city, CMWD, and Carollo Engineers, a consultant with extensive expertise in utility rate setting, used this data to prepare the cost-of-service studies. Staff recommend that the City Council and the CMWD Board of Directors set a public hearing to consider the proposed rate increases2 detailed below. Additionally, staff recommend that the City Council and the CMWD Board of Directors adopt resolutions to establish procedures for ratepayer and property owner to submit written objections to the proposed rate increases 1 The City of Carlsbad and CMWD operate, maintain and rehabilitate sewer, potable water and recycled water infrastructure. The 2019 Asset Management Master Plan estimated the replacement cost of this infrastructure to be more than $2.1 billion. 2 The City Council and the CMWD Board last voted on utilities rates in January 2022, approving rate increases for March 2022, January 2023, and January 2024. Feb. 11, 2025 Item #8 Page 2 of 265 Explanation & Analysis Overview of utilities The CMWD provides reliable drinking and recycled water to homes and businesses within a 32.3-square mile service area, as shown in Exhibit 6, while meeting all federal and state water quality regulations. The CMWD buys treated water from the Water Authority, including desalinated water, and serves it through the CMWD’s potable water system to approximately 28,317 accounts, not including fire service. Water is available 24 hours per day and is properly metered and monitored for pressure, availability and quality. The city operates a wastewater collection system in an approximately 30-square mile service area, as shown in Exhibit 7. This system must meet stringent regulations because it conveys wastewater from homes and businesses to the Encina Water Pollution Control Facility for treatment. There are about 24,000 wastewater connections within the service area. A portion of the wastewater treated at the Encina facility is then further treated at the Carlsbad Water Recycling Facility and then delivered to customers through the CMWD’s recycled water system for landscape irrigation. The CMWD has one of the most comprehensive recycled water systems in San Diego County. This recycled water provides a drought-resilient water supply through about 1,000 customer connections. The city and the CMWD’s three utilities own more than $2.1 billion worth of infrastructure assets that are critical to the community’s health and the environment, including: • Over 800 miles of underground pipelines • Over 14,000 water valves • Over 4,000 fire hydrants • 12 reservoirs • 11 wastewater lift stations3 • Approximately 6,200 access holes • A water recycling treatment facility and other assets This list does not include the city’s share of the Encina Wastewater Authority’s assets or those owned by the Water Authority. Each utility – potable water, recycled water and wastewater – has its own separate budget, which is called an enterprise fund. Enterprise funds exist to provide a specific service, and they are funded by ratepayers – the customers. The enterprise fund establishes a separate accounting and financial reporting mechanism for municipal services for which a fee is charged in exchange for those services. The funds collected for providing the specific services cannot be used for any other expense. Proposition 218 Overview Proposition 218, or the “Right to Vote on Taxes Act,” was approved by the California voters in 1996 and amended the California Constitution by adding Articles XIII D, which established requirements for levying new or increased “property-related fees” and limits how revenues derived from these fees may be used. 3 A lift station uses pumps to move wastewater to the wastewater treatment plant. Feb. 11, 2025 Item #8 Page 3 of 265 The requirements set forth under Article XIII D can be divided into two categories: substantive requirements and procedural requirements. Substantive requirements New or increased rates for property-related fees must comply with the following substantive requirements: • Revenues derived from the fee must not exceed the funds required to provide the property-related service. • Revenues derived from the fee shall not be used for any purpose other than that for which the fee or charge was imposed. • The amount of a fee imposed upon any parcel or person as an incident of property ownership must not exceed the proportional cost of the service attributable to the parcel. • The fee may not be imposed for a service, unless the service is used by, or immediately available to, the owner of the property subject to the fee. A fee based on potential or future use of a service is not permitted, and standby charges must be classified as assessments subject to ballot protest and proportionality requirements for assessments. • No fee may be imposed for general governmental services including, but not limited to, police, fire, ambulance or library services, when the service is available to the public at large in substantially the same manner as it is to property owners. Procedural requirements The procedures for adopting new or increased property-related fees are: • Mail notification of the proposed fee or charge to every affected property owner or customer of record. The information needs to provide directions for submitting written protests and written objections, as well as information about the proposed fees or charges. This notice may be mailed with a customer's bill or separately. • Hold what is known as a majority-protest hearing at least 45 days after the mailing. The purpose of the hearing is to determine whether a majority of those affected object to the proposed fee or charge. • Adopt the proposed fee or charge or reject it if there is a majority protest. Majority-protest public hearing Before adopting any rate increase the City Council and Board must hold what is known as a majority-protest public hearing and notify property owners and customers at least 45 days in advance of public hearings related to proposed water, recycled water and wastewater rates. The City Council and the CMWD Board’s approvals are needed to establish the date of the public hearing. Staff request that the City Council and the CMWD Board set the public hearing date for April 22, 2025. State law establishes the following • Any affected customers and property owners may protest the proposed rates by submitting their concerns in writing to the City Clerk's Office any time before the close of the public hearing. • The written protest must contain the address of service, the rate change being protested and be received prior to the close of the public hearing. Feb. 11, 2025 Item #8 Page 4 of 265 • While protesters may appear at the hearing and be heard on the matter, only written protests are to be considered as part of the majority protest. • Only one protest per parcel will be counted. • If fewer than 50% of customers protest the proposed rates, the City Council and the CMWD Board may consider adopting the proposed changes at the public hearing. • If it is determined at the public hearing that a majority of affected customers and property owners, including customers of record, have submitted formal protests, the proposed fee changes must be rejected. Rates can be adopted for a period not to exceed five years. In the past, the city and the CMWD have adopted rates for two- or three-year periods. This allows adjustments to be made to changing conditions, such as a change in the Water Authority’s rates or inflation on maintenance and capital costs. Notice of public hearing The legally required elements in the notice are as follows: • Amount of the fees or charges proposed to be imposed • Basis upon which the fees or charges were calculated • Statement regarding the reason for the imposition of the new, or increases to the existing, fees or charges • Description of pass-through increases and the maximum amount by which specific rates will increase as a result of any pass-through increase • Date, time and location of the public hearing at which the legislative body will consider new fees or charges, or proposed increases to existing fees or charges • Statement that the city and CMWD adopted what is known as the “opt-in” exhaustion of administrative remedies process, which requires written objections by property owners or ratepayers to preserve a right to legally challenge the proceedings and to provide notice of a 120-day statute of limitations for challenging any new, increased, or extended fees or charges. The draft Proposition 218 notice to customers and property owners is included as Exhibit 5. Exhaustion of administrative remedies One of the most fundamental rules governing the relationship between public agencies and the courts is the "exhaustion of remedies" principle, which requires people to raise concerns about proposed agency actions by pursuing the agency’s available procedures for addressing concerns before suing the agency over those concerns. The exhaustion requirement serves several important purposes: 1. Permitting the agency to resolve factual issues, apply its expertise, and exercise statutorily delegated remedies 2. Bolstering administrative autonomy 3. Promoting judicial economy 4. Mitigating damages Assembly Bill 2257 added Government Code Sections 53759.1 and 53759.2 and became effective January 1, 2025, allowing local agencies to adopt administrative exhaustion procedures for ratemaking procedures under Proposition 218. Staff recommend that the City Feb. 11, 2025 Item #8 Page 5 of 265 and CMWD adopt the recently established exhaustion of administrative remedies procedures for proposed water, recycled water, and wastewater rates by allowing the public to submit timely written objections to the proposed rate increases to exhaust their administrative remedies as a prerequisite to later litigating the particular issue raised. Staff recommend that the City Council and the CMWD Board adopt the resolutions provided as Exhibits 2 and 4, respectively, to establish objection procedures. Rate-setting process The 2025 cost-of-service studies, provided as Exhibits 8 and 9, present a comprehensive analysis that conforms with Proposition 218 and with industry best practices, as outlined by the American Water Works Association’s Principles of Water Rates, Fees, and Charges M1 Manual. The manual is the most widely used rate-setting manual among public water purveyors, and rates developed in accordance with the manual represent industry standards. The studies also follow the policies and practices of the city and the CMWD. Neither the city nor the CMWD profit on utility rates; they only recover the costs of service consistent with the requirements of Proposition 218. The City Council and the CMWD Board last voted to approve rate increases on Jan. 11, 2022. They approved three years of increases, taking effect on March 1, 2022, Jan. 1, 2023, and Jan. 1, 2024. Recommended increases Carollo Engineers, consultant experts in utility rate setting, recently updated the 2021 studies and created the new 2025 cost-of-service studies provided as Exhibits 8 and 9. The studies recommend increasing the revenue for each of the utilities to provide adequate funding to operate, maintain and rehabilitate aging utility infrastructure systems. These systems are: • The CMWD’s potable water distribution system, including treated water purchased from the Water Authority • The CMWD’s recycled water production and delivery system, including the Carlsbad Water Recycling Facility • The City of Carlsbad’s wastewater collection system, including sewage treatment at the Encina facility Staff recommend rate increases beginning July 1, 2025, Jan. 1, 2026, and Jan. 1, 2027, to meet the revenue requirements recommended in the cost of service studies. After the development of the rates proposed in the cost-of-service studies, the Utilities Department opted to delay the first rate increases from January 1, 2025, until July 1, 2025. This delay allows time to update the customer billing system to show the pass-through charges from the Water Authority. The implementation of the rates developed based on January 1, 2025, increases will be delayed by six months. Consequently, this schedule delay will also delay revenue increases by six months, a gap that may be temporarily covered by reserves. Rate structures Potable and recycled water The CMWD maintains separate rate structures for its potable and recycled water customers. Potable and recycled water customers have two components to their bill: Feb. 11, 2025 Item #8 Page 6 of 265 • The water delivery fee is a fixed monthly charge. It is assessed based on meter size. It is set at the amount needed to capture the costs associated with providing customer service for each account, as well as a portion of the costs of providing and maintaining the system capacity to serve each account. This component of the charge is equal for all customers in a particular class, e.g., single-family residential, commercial or industrial. • The water usage fee is a charge based on the amount of water consumed each month, as measured by each customer’s water meter. It is set at the amount needed to capture the costs of the water utility, which vary with the amount of water provided. Wastewater The city also maintains a separate rate structure for wastewater customers. The city does not individually meter customers’ wastewater usage, because metering wastewater is an expensive and generally inefficient process. • All customers are appropriately assigned to one of 16 classes, e.g., single-family, multi- family, small medium and large commercial, industrial, etc. Each class is then charged based upon a unit cost per hundred cubic feet of water sold. The unit cost for each of the classes is based on such factors as water use, the quality of the water discharged into the city’s collection system. • Single-family residential customers, including those who live in duplexes, incur a flat monthly charge for wastewater service based upon an estimated monthly flow of 6.69 hundred cubic feet. • A home with an accessory dwelling unit is charged 1.5 times that amount. • All other customers are charged based upon the factors that apply specifically to their class. The cost-of-service studies determined that, in general, the current wastewater and recycled water rate structures do not need to be changed; they adequately cover the cost of providing these services. Proposed billing changes Staff are proposing the CMWD change how potable water rates are structured in three ways: • Two tiers are proposed instead of the three tiers currently used for single family residential customers. This change would align with how residential customers are now using water and simplify how rates are calculated, increasing efficiency. • Water bills would show the charges from the wholesaler, the Water Authority, that are passed onto them. Almost all water agencies in San Diego County already bill this way, including the City of Oceanside, Vista Irrigation District and Olivenhain Municipal Water District. This change would provide greater transparency, allowing customers to readily see how much of their payments go toward buying water from the Water Authority. (More than half the water bill consists of these pass-through charges.) • A unique rate for the accounts at the San Diego County McClellan-Palomar Airport is proposed to provide for costs that are unique to water service there. The CMWD owns and operates a system of water distribution mains on the airport property. Prudent management The CMWD’s residential water rates and the city’s wastewater rates are below the county average, while operational and capital improvement costs continue to increase. Like most Feb. 11, 2025 Item #8 Page 7 of 265 agencies in the San Diego County region and statewide, the Water Authority and Encina Wastewater Authority share the challenges of managing aged infrastructure and rising construction, energy and treatment costs. Rate increases are needed to continue to maintain these systems and protect the health of the community and the environment that the public enjoys. The city and the CMWD have little control over the cost of purchasing treated drinking water from the Water Authority or the cost of wastewater treatment at the Encina facility. To keep the rates as low as possible, the city and the CMWD have prioritized maintaining the utility systems in a way that extends the useful life of the utility infrastructure. The city and the CMWD work to avoid expensive replacement whenever possible and perform rehabilitation and replacement when it is most cost-effective. Investing in capital projects increases the reliability of our infrastructure and decreases the likelihood of water main breaks and sewer spills. Staff have also implemented an asset management system that uses high-level technology to prioritize capital projects with the highest risk of failure, with less crucial projects being postponed. Potable water rates Under state law, rates are allocated to customer classes, e.g., single-family, commercial or industrial, based on each class's proportionate share of the system, which is why there is some variation in rate increases across customer classes. • Overall, more than half of a customer’s water bill is to purchase water from the Water Authority. The CMWD relies exclusively on the Water Authority for potable water supply, so it does not have a choice in accepting rate adjustments from the wholesale water provider. • The remainder of the water bill goes towards maintaining and operating the potable water delivery system, including replacing aged infrastructure to maintain service reliability and minimize main breaks and service interruptions. Cost of water from Water Authority per acre-foot (One acre-foot of water is enough to supply three average Carlsbad households for a year.) Projected Feb. 11, 2025 Item #8 Page 8 of 265 The Water Authority’s rates make up approximately 65% of customer water bills. Its rates for water are increasing and are expected to continue to increase significantly. A factor in these future increases is the certain reduction in the demand for Water Authority water that results from water conservation efforts. While conservation is extremely important in creating a more sustainable water supply, decreased demand from customers results in a per unit cost increase in the water the Water Authority delivers. The Water Authority must also pay to maintain its infrastructure and for all requirements to treat and convey water to wholesale customers, including the CMWD. In addition to the efforts that the CMWD’s customers have made to conserve water, more local water reuse supplies are coming online, so the Water Authority will be selling even less water. This will result in much higher Water Authority rate increases in the future. Last summer, the Water Authority approved an overall rate increase of 14%, which took effect in January 2025. Rate increases are also needed for the ongoing CMWD operations. The utilities’ reserves cannot absorb the additional costs resulting from the increased Water Authority rates. Staff are recommending setting a public hearing on April 22, 2025, to change the rate structure so that the Water Authority rates are passed on to customers. Staff are also recommending to m ake these costs visible on utility bills separately from the CMWD costs for maintaining and operating the delivery system. Residential water rates The CMWD’s water rates have remained low compared to those in the rest of San Diego County. The chart below compares the CMWD’s current and proposed average water bill for single-family residential customers with those from neighboring agencies. The average monthly water bill for San Diego County is currently $114.49, in comparison to the CMWD’s proposed average monthly bill of $91.10. (The chart does not include increases that other water agencies are currently considering.) Regional monthly single-family residential water bill Feb. 11, 2025 Item #8 Page 9 of 265 The average monthly bill with the proposed rate increases for a single-family residential home are as follows and include the CMWD costs and the Water Authority’s pass-through costs: Single family residential average bill Current 2025 2026 2027 $73.91 $91.10 $103.38 $109.62 Commercial water rates Commercial bills would also increase, though there is not one average commercial bill, since this category includes many types of businesses with different meter sizes and usage patterns. Commercial customers include restaurants, industrial parks and water users that use water outdoors but are not connected to the recycled water system. The current and proposed potable water rates by customer class are shown in Exhibit 5. Recycled water rates The primary driver of modest recycled water rate increases are the inflationary costs for operations and maintenance, including rising costs for electricity to produce and deliver recycled water as well as chemicals, labor and materials. The CMWD contracts with Encina Wastewater Authority for operation of the Carlsbad Water Recycling Facility. Recycled water is a relatively new commodity in the region not available in every water district, so meaningful cost comparisons are not easily available. Customer usage within the CMWD varies widely depending on irrigation needs. The rate increases proposed are under 5%. The current and proposed recycled water rates by customer meter size are shown in Exhibit 5. Most recycled water customers are homeowner associations or multifamily housing that irrigate shared spaces or businesses, rather than single-family homes. The proposed recycled water rate is lower than the proposed rate for potable irrigation. This promotes local water use and conservation of potable water for drinking, cooking, washing and other needs. Wastewater rates The wastewater rate increases proposed are 6% lower than the prior increases that City Council approved in 2022. Since the last increase, the City Council approved a successful low interest loan application to the state to fund a needed wastewater Capital Improvement Program project to update the system for remote flow monitoring. The loan allows for lower rate increases in the near future and spreads the cost of infrastructure projects with a lifespan of 20 years or more over time. Major cost drivers for the proposed wastewater rates include: • Increased costs to meet the city’s Sewer Master Plan Capital Improvement Program goals, which are needed to continue to operate the city’s wastewater system in future years. (The costs of materials and construction have increased significantly. Materials such as steel, PVC pipe and odor control chemicals have not only risen in cost significantly over the past few years but are now also difficult to obtain.) Feb. 11, 2025 Item #8 Page 10 of 265 • The city’s portion of capital and operating costs for treatment at the Encina facility, which the Encina Wastewater Authority owns and operates, has increased 16% in the last three fiscal years. • Aged infrastructure throughout the city and at the Encina facility that needs to be replaced • Delayed project implementation by the Encina Wastewater Authority, resulting in higher construction costs • Decreasing wastewater volumes associated with water conservation causing higher treatment costs. (More concentrated wastewater solids are harder to treat than more diluted wastewater.) The utilities also must maintain adequate reserves in keeping with the 2023 City Council-approved Utilities Reserve Policy to ensure fiscal stability. Staff have made major adjustments to the schedule of capital improvement projects to minimize the size of the proposed rate increases for wastewater services. Without the proposed rate increases, additional adjustments would need to be made. Staff do not recommend making additional adjustments because this could increase the risk of infrastructure failures, which could result in sewage overflows, environmental damage and regulatory fines. Wastewater treatment costs are determined by the Encina Wastewater Authority, charged directly to the Wastewater Enterprise Fund and then to the city’s wastewater customers. The Encina Wastewater Authority’s costs make up about 43% of customer’s wastewater bills. The chart below compares the city’s current average wastewater bill for single-family residential customers with those of other agencies in San Diego County. The average monthly wastewater bill in San Diego County is currently $66.02, shown in the dashed horizontal line, in comparison to the City of Carlsbad’s proposed monthly bill of $59.85. (This chart does not include increases that other wastewater agencies may soon consider, which could raise the regional average significantly in the near future.) Regional monthly single-family residential wastewater bill Feb. 11, 2025 Item #8 Page 11 of 265 The wastewater monthly bill with the proposed rate increases for single-family residential customers are as follows: Current 2025 2026 2027 $51.74 $59.85 $68.22 $77.78 As with water, there is not one average commercial wastewater bill, since this category includes many types of businesses with different sizes of wastewater connections and usage patterns. Commercial customers could include locations such as a stand-alone post office, a small business, a 250-room hotel or Legoland California. Utilities Department staff will contact some of the largest commercial customers and trade and business organizations to go over their potential increases with them before the proposed public hearing on April 22, 2025. Alternatives to raising rates Options for proposing smaller rate increases were considered, such as issuing more long-term debt, by issuing bonds, applying for more state revolving fund loans or other borrowing mechanisms. Taking on debt may be prudent when spreading large, one-time costs over a generation of ratepayers and when it does not add significant debt-related costs. For example, the CMWD holds long-term debt through a large state revolving fund loan at a 1% interest rate, with the funds being used to build out the city’s recycled water system. This allowed the CMWD to smooth rates and spread the costs over time. In wastewater, the city was awarded a state revolving fund loan for a portion of the project to replace the remote monitoring and control system used for wastewater. (The Supervisory Control and Data Acquisition, or SCADA, replacement project.) While the state revolving fund loans are the lowest cost option for debt, they are very competitive now and in the next few years. Given the cost of potential alternative loans, the limited funding available from state revolving fund and the recurring nature of the forecasted costs, staff recommend the proposed rate increases. Staff will continue to analyze debt options in the future as part of the city’s enterprise fund management. Staff also actively monitor grant opportunities. The CMWD has been awarded two federal grants and one state grant to be used to pay for recycled water projects. These grants have totaled $4 million in the last four years. There are not any regular grant programs to fund the replacement of aged potable and wastewater infrastructure, particularly not for a city such as Carlsbad, which does not have many disadvantaged communities. Community notification and outreach The CMWD and the city will notify affected customers and property owners about the proposed rates and the proposed April 22, 2025, public hearing by mail at least 45 days before the hearing. The draft notice, which complies with the requirements of state law, is provided as Exhibit 5. Staff will also post information about the proposed rates and the public hearing on the city's website and share it through other information channels. Public notifications of this item, such as mailings, public hearing notices posted in a newspaper and on the city’s website, will be available in the office of the City Clerk. The city’s Economic Development Department will help Feb. 11, 2025 Item #8 Page 12 of 265 inform the business community with outreach campaigns targeted to different commercial customer types. Staff also plan to hold informational workshops on the proposed rates and changes with commercial customers. Staff will be reaching out to large commercial customers by starting with direct communications to major business organizations. These may include Visit Carlsbad, Carlsbad Chamber of Commerce, Carlsbad Village Association, and the Building Owners and Managers Association. After listening to the needs of the city’s business community, staff will determine the scope and timing of the informational workshops. Fiscal Analysis The updated cost-of-service studies presented as Exhibits 8 and 9 assess the revenues needed to maintain service delivery for critical water, recycled water and wastewater services. The proposed rate increases project revenue that is incorporated into operating and capital budgets, which are presented for approval as part of the regular annual budgeting cycle. The City Council approved City Council Policy No. 96 - Utilities Reserve Policy in March 2023 to establish guidelines to ensure the fiscal stability of the potable water, recycled water and wastewater funds and provide guidance to staff in the management of each utility’s finances. Annual reporting on reserves is included in the city’s Annual Comprehensive Financial Report. Reserve levels are treated as practical reserve minimums and may be allowed to increase or decrease as necessary within the minimum and target levels. Rate increases as identified in the cost-of-service studies include input from historical financial data, including actual costs and fund balances. Options 1. Accept staff’s recommendation, approve and file the cost-of-service studies, set the hearing date, issue the notice, and establish objection procedures. Approve, receive and file the 2025 cost-of-service studies; set a public hearing date on April 22, 2025, to approve increase to the water, recycled water and wastewater rates and charges to be effective July 1, 2025, and direct staff to issue the Proposition 218 notice. Adopt resolutions to establish a procedure for ratepayer and property owner objections to proposed rates, to create a procedure to exhaust administrative remedies as a prerequisite to later litigating the approved rates. 2. Defer approval Defer approval of the 2025 cost-of-service studies and the July 1, 2025, changes to water, recycled water and wastewater rates and charges and provide direction to staff on revisions necessary before bringing the study and revised notice back to the City Council and the CMWD Board for consideration. Feb. 11, 2025 Item #8 Page 13 of 265 Next Steps Upon receiving direction from the City Council and the CMWD Board, staff will begin the required customer notification process within the following timeline: Feb. 12, 2025 Final preparation of the required notification and address list; printing of mailer (approximately 35,000 copies) Feb. 18, 2025 Required notifications are mailed informing customers of the April 22, 2025, public hearing for the CMWD Board and City Council to consider adoption of the rate changes proposed by the 2025 cost of service studies for potable and recycled water, and wastewater. Required 45- day public notification period begins. April 22, 2025 Public hearing for the CMWD Board/City Council to consider adoption of the rate changes proposed by the 2025 cost of service studies for potable and recycled water, and wastewater July 1, 2025 New rates from the 2025 cost of service studies for potable and recycled water and wastewater will go into effect if approved by the CMWD Board and City Council on April 22, 2025. If they are approved, the proposed rates will go into effect July 1, 2025, Jan. 1, 2026, and Jan. 1, 2027. Environmental Evaluation This informational item and the actions proposed do not constitute a project within the meaning of the California Environmental Quality Act under Public Resources Code Section 21065 because it has no potential to cause either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. Exhibits 1. City Council resolution setting public hearing 2. City Council resolution establishing objection procedures 3. CMWD Board resolution setting public hearing 4. CMWD Board resolution establishing objection procedures 5. Draft public hearing notice 6. Carlsbad Municipal Water District water service area map 7. City of Carlsbad wastewater service area map Feb. 11, 2025 Item #8 Page 14 of 265 RESOLUTION NO. 2025-047 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING AND FILING THE 2025 WASTEWATER COST OF SERVICE STUDY, SETTING A PUBLIC HEARING FOR APRIL 22, 2025, AT 5 P.M., TO APPROVE INCREASES TO RATES FOR WASTEWATER SERVICES EFFECTIVE JULY 1, 2025, AND DIRECTING THE CITY MANAGER OR DESIGNEE TO ISSUE WRITTEN NOTICE OF THE PUBLIC HEARING WHEREAS, the City of Carlsbad provides wastewater collection services to approximately two thirds of the City's population and is responsible for the collection and conveyance of sewer discharges to the Encina Water Pollution Control Facility; and WHREAS, the City and the Carlsbad Municipal Water District, or CMWD, solicited responses to its 2019 Utilities Cost of Service Study Request for Proposals and received four responses, and after an evaluation determined that Carollo Engineers, Inc., was the most qualified consultant; and WHEREAS, the City Council and CMWD Board authorized a professional services agreement with Carollo Engineers, Inc., to develop a comprehensive cost-of-service study, including the City's wastewater cost of services; and WHEREAS, the City of Carlsbad's Final Wastewater Cost-of-Service Study dated January 2025 provides a revenue requirement analysis, cost of service analysis, and a rate design process, including recommended adjustments for wastewater rates; and WHEREAS, the City is proposing wastewater service rate increases effective July 1, 2025, Jan . 1, 2026, and Jan. 1, 2027, consistent with the Final Wastewater Cost-of-Service Study dated January 2025; and WHEREAS, the California Constitution, Article XIII D, section 6, or Proposition 218, requires the City to hold a majority-protest public hearing on any proposed new or increased rates and fees and mail a written notice at least 45 days prior to the public hearing to the record owners of each identified parcel upon which the fees or charge for imposition is proposed. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. The Final Wastewater Cost-of-Service Study dated January 2025 (Attachment A) is approved by the City Council. 3. That the City Council of the City of Carlsbad hereby sets a majority-protest public hearing for Tuesday, April 22, 2025, at 5 p.m. 4. That the City Manager of designee is directed to issue written notice of the public hearing. 5. That approving a cost study, setting of a majority-protest public hearing, and sending written notice of the public hearing do not constitute a project within the meaning of the California Environmental Quality Act under Public Resources Code Section 21065 because it has no potential to cause either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad, California, and the City Council of the City of Carlsbad, California, on the 11th day of February 2025, by the following vote, to wit: AYES: NAYS: ABSTAIN: ABSENT: Blackburn, Bhat-Patel, Acosta, Burkholder, Shin. None. None. None. KEITH BLACKBURN, MAYOR CITY OF CARLSBAD Wastewater Cost-of-Service Study 2025 Wastewater Cost-of-Service Study FINAL / January 2025 Attachment A Feb. 11, 2025 Item #8 Page 17 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD i Contents SECTION 1 INTRODUCTION 1 1.1 Study Purpose and Key Drivers 1 1.2 Overview of the Rate Setting Process 2 1.2.1 Revenue Requirement Analysis 2 1.2.2 Cost of Service Analysis 4 1.3 Project Findings and Recommendations 4 SECTION 2 INPUTS AND ASSUMPTIONS 7 2.1 Growth and Wastewater Usage 7 2.2 User Rate Categories 8 SECTION 3 REVENUE REQUIREMENT ANALYSIS 9 3.1 Fiscal Policies 9 3.2 Operating Revenues 10 3.3 Operations and Maintenance Expenditures 11 3.4 Capital Improvement Program Funding 11 3.5 Recommended Revenue Requirements 13 SECTION 4 COST-OF-SERVICE ANALYSIS 15 4.1 Revenue Needs 15 4.2 Functional Allocation 16 4.2.1 Functional Allocation Factors 17 4.2.2 Functional Allocation Results 18 SECTION 5 RATE DESIGN ANALYSIS 20 5.1 Customer Characteristics 20 5.1.1 Class Flow and Loading Assumptions 22 5.2 Unit Cost Calculation 27 5.3 Rate Design 27 5.3.1 Class Unit Costs per HCF Discharges 27 5.3.2 Customer Class Rate Calculations 30 5.3.3 Proposed Rates 31 SECTION 6 ALTERNATIVE OPTION 32 6.1 Bond Issuance 32 6.2 Recommended Revenue Requirements – Alternative Option 32 6.3 Proposed Rates – Alternative Option 34 Feb. 11, 2025 Item #8 Page 18 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD ii Appendices APPENDIX A PROJECTED O&M APPENDIX B CAPITAL IMPROVEMENT PLAN APPENDIX C REVENUE REQUIREMENT ANALYSIS APPENDIX D FUNCTIONAL ALLOCATION APPENDIX E RATE CALCULATIONS APPENDIX F PROJECTED FLOW AND LOADS APPENDIX G PROJECTIONS FOR ALTERNATIVE OPTION Tables Table 1 Proposed Wastewater Rates by Customer Class 6 Table 2 Escalation Factors 7 Table 3 Current Rate Revenues (in millions) 10 Table 4 Offsetting Revenues (in millions) 10 Table 5 Operating Expenditures (in millions) 11 Table 6 Capital Improvement Plan Expenditures (in millions) 12 Table 7 Capital Improvement Plan Funding (in millions) 13 Table 8 Revenue Requirement Summary (in millions) 14 Table 9 Expenditures and Offsetting Revenues (in millions) 15 Table 10 Functional Allocation Factors 17 Table 11 CIP Functional Allocation (in millions, 2024 Dollars) 18 Table 12 O&M Functional Allocation (in millions) 18 Table 13 Revenue Requirements Functional Allocation (in millions) 19 Table 14 Wastewater Flow Mass Balance – FY 2021/22 Data 23 Table 15 Wastewater BOD Mass Balance – FY 2021/22 Data 24 Table 16 Wastewater TSS Mass Balance – FY 2021/22 Data 25 Table 17 Expected Billed Units by Customer Class for FY 2024/25 26 Table 18 Unit Cost per Billable Constituents 27 Table 19 Group I Unit Cost per HCF Calculation 28 Table 20 All Classes Unit Cost per HCF Calculation 29 Table 21 Group I Monthly Rate Calculation 30 Table 22 Rate per HCF of Water Consumption Calculation 30 Table 23 Schools Rates Calculation 30 Table 24 Proposed Wastewater Rates by Customer Class 31 Table 25 Alternative Option – Bond Summary 32 Table 26 Alternative Option with Bond Funding – Revenue Requirement Summary (in millions) 33 Table 27 Alternative Option with Bond Funding – Proposed Wastewater Rates by Customer Class 34 Table 28 Comparison of Rate Revenue Increases for Baseline Option to Alternative with Additional Bonds 35 Feb. 11, 2025 Item #8 Page 19 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD iii Figures Figure 1 Cost of Service Rate Study Process 2 Figure 2 Single Family Bill Comparison 35 Feb. 11, 2025 Item #8 Page 20 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD iv Abbreviations ACFR Annual Comprehensive Financial Report ADU Accessory Dwelling Unit BOD biological oxygen demand Carlsbad City of Carlsbad Carollo Carollo Engineers, Inc. CIP capital improvement program DSCR Debt Service Coverage Ratio EDU Equivalent Dwelling Unit EWA Encina Wastewater Authority EWPCF Encina Water Pollution Control Facility FYE Fiscal Year Ending gpd gallons per day HCF hundred cubic feet MFR Multi-Family Residential mgd or MGD million gallons per day mg/L milligrams per liter O&M Operation and maintenance SFR Single Family Residential SRF State Revolving Fund Study Cost of Service Study TSS total suspended solids WEF Water Environment Federation Feb. 11, 2025 Item #8 Page 21 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD 1 SECTION 1 INTRODUCTION The City of Carlsbad (Carlsbad) owns a wastewater system that provides wastewater service to roughly two thirds (2/3) of the City’s population and is responsible for the collection and conveyance of sewer discharges to the Encina Water Pollution Control Facility (EWPCF). The EWPCF is jointly owned by the cities of Carlsbad, Vista, Encinitas, the Buena Sanitation District, Vallecitos Water District, and Leucadia Wastewater District and provides full secondary treatment, sludge handling, and disposal through a deep ocean outfall that extends along the ocean floor to a point 1.5 miles offshore. The City’s wastewater service customer base includes approximately 24,000 sewer accounts, consisting of single family residential, multi-family residential, commercial, other, breweries, industrial, and schools. The City maintains a separate wastewater enterprise fund with its own operating and capital reserves. The wastewater user rates are designed to distribute the cost of the operation and improvement of the City’s collection system and the City’s share of the EWPCF equitably among all users in accordance with California legal requirements as defined by Proposition 218. 1.1 Study Purpose and Key Drivers Carlsbad retained Carollo Engineers, Inc. (Carollo) to perform a comprehensive Cost of Service Study (Study) of the City’s potable water, recycled water, and wastewater systems and to develop a rate plan for the upcoming 5-year period, Fiscal Year Ending (FYE) 2025 through FYE 2029. The City has historically set rates on a calendar year basis, and the rates calculated in this assume that schedule is retained. However, to align with the proposed increased for water and recycled water rates, implementation of the first increase will be delayed to July 1, 2025. Carollo’s analysis was guided by the policies and practices of the City, industry best practices for cost-of- service analyses as outlined by the Water Environment Federation (WEF) updated Manual of Practice No. 27, Financing and Charges for Wastewater Systems, and requirements for establishing wastewater rates within the State of California. This report summarizes the findings and recommendations of the cost-of-service and rate analysis for the City’s wastewater system. The findings of the cost-of-service analysis for potable and recycled water are provided by Carollo in a separate report. Several matters influence the need to conduct a comprehensive cost-of-service rate design study. Identifying these matters upfront defines the strategic intent needed to complete this project successfully. These issues include the following:  The State of California requires that all utility rates meet the cost-of-service requirements imposed under Proposition 218. These principles underlie the approach to rate setting such that all customers are charged rates that are proportional to the cost of providing service attributable to a parcel based on the demands that each customer class places on the system.  Although there are others, the main factor driving the need for increased rate revenues for this Study is funding of the capital improvement program (CIP). Based on current projections, the City and the EWPCF have identified a total of $122.3 million (2024 dollars) in necessary capital improvements over the next 5 years. The City’s share of the EWPCF projects is expected to total approximately half of the City’s total CIP expenses over this time period. Feb. 11, 2025 Item #8 Page 22 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD 2  In addition to anticipated CIP expenditures, the recent high inflation rates have affected operating costs of utilities dramatically in the last few years. Although the inflation rate is expected to return to a more historically “normal” rate during the Study period, FYE 2024 budget was carefully reviewed and updated to develop the appropriate 5-year financial plan. 1.2 Overview of the Rate Setting Process Rate analyses should be performed periodically so that revenues from rates adequately fund utility operations and maintenance (O&M) and capital investments. Additionally, in California, water and wastewater rates must adhere to the cost-of-service requirements imposed by the State Constitution. Proposition 218 requires that property related fees and charges, including wastewater rates, do not exceed the reasonable proportional cost of providing the service. In addition to adhering to state requirements, Carollo’s rate-setting methodology is consistent with industry guidelines described in the WEF Manual of Practice 27: Financial and Charges for Wastewater Systems (MOP 27). The cost-of-service analysis presented within this report consists of the following three interconnected processes: Figure 1 Cost of Service Rate Study Process While the process is described in a linear step by step approach, it is better understood as an iterative process where the ultimate objective is to balance revenues with costs in an equitable manner for customers. These three processes will form the basis for the rate analyses presented within this report. 1.2.1 Revenue Requirement Analysis The revenue requirement analysis is a comprehensive test of a utility’s fiscal health, examining the adequacy of current revenues under existing rates and forecasted demands to its forecasted future O&M and capital funding needs. This analysis sets the basis for rate planning and reviews the viability of a utility’s revenues against expenses, debts, and reserve policies. Revenue Requirement Analysis Compares existing revenues of the utility to its operating, capital, and policy driven costs to establish the adequacy of the existing cost recovery levels. Cost of Service Analysis Identifies and apportions annual revenue requirements to functional rate components based on its application of the utility system. Rate Design Considers both the level and structure of the rate design to collect the distributed revenue requirements from each class of service. Feb. 11, 2025 Item #8 Page 23 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD 3 If revenue projections under existing rates do not meet forecasted requirements, rate revenue increases are recommended until the tests are passed. The study analyzed the revenue requirements to test the fiscal health of the City’s wastewater system, evaluated the adequacy of current rates and charges, and set the basis for the 5-year rate plan for the City. No bond issuance was assumed during the Study period. 1.2.1.1 Revenue Requirements Components Revenue requirements are the summation of expenses or costs for providing wastewater services, including collecting and treating sewage, and handling treated effluent to the environment. They are determined on an annual basis, and they include:  O&M: Salaries and benefits, chemicals, power, vehicles, equipment, supplies, etc. Some costs vary by the volume of treatment such as chemicals and power, but other costs are fixed and independent of volume such as salaries and vehicles.  Capital Improvements and Financing: Design and construction of new and replacement infrastructure, including labor for City employees and fees for consultants and contractors that perform this work, along with debt service payments, bond issuance costs, commercial paper fees, etc. including debt coverage. Capital requirements include the City’s internal collection assets as well as the City’s share of costs for Encina.  Encina Operating Costs: Wastewater treatment and effluent disposal costs incurred by Encina Wastewater Authority (EWA).  Financial Policies: Maintenance of financial policies, such as minimum reserve balances, which are supported by user rates. 1.2.1.2 Revenue Requirement Tests There are three sufficiency tests that can be used to define the annual revenue requirement: (1) operating income, (2) debt coverage, and (3) reserves. These sufficiency tests are commonly used to determine the amount of annual revenue that must be generated from an agency’s rates.  The cash flow sufficiency test examines whether a utility is generating enough revenues to meet O&M expenses, debt service payments, policy driven additions to working capital (and reserves), miscellaneous capital outlays, replacement funding, and rate- funded- capital expenditures. It requires a net positive cash flow at the end of each fiscal year. When there is a cash flow deficit, an increase in rate revenues is recommended. However, when ending reserve balance is sufficient, the rate increase can be reduced or omitted to mitigate rate payer impacts.  The debt service coverage test assesses a utility’s ability to meet their annual debt service obligations. Bond issuances regularly include a stipulation that the agency must maintain sufficient cash flows to meet annual debt service payments plus an additional amount by its covenant. Typical debt service coverage ratio (DSCR) target ranges from 1.10 to 1.40 times annual debt service payment, depending on an agency’s specific financial situation and the type of debt instrument issued. This means that for a utility’s every $100 in debt obligation, it needs to generate $110 to $140 in net operating income. When the calculated DSCR falls below the target, an increase in rate revenues is recommended. Based on the City’s State Revolving Fund loan agreement with the California State Water Resources Control Board, the DSCR target for the wastewater State Revolving Fund (SRF) loan is 1.20. Feb. 11, 2025 Item #8 Page 24 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD 4  Reserves Test measures if a utility is maintaining its reserve target to ensure continuation of their operations and any financial obligations during unexpected revenue shortfalls. This test is not legally binding under Proposition 218 but provides an assurance for a utility’s financial stability. The reserve target is based on the polices adopted by the City Council. When the end of the year balance falls before the target, an increase in rate revenues is recommended. However, reserve targets could be reduced in some cases in order to mitigate rate payer impacts. 1.2.2 Cost-of-Service Analysis This step builds a link between the City’s cost of wastewater service and the proposed rates for each customer. After determining the revenue requirement, this step outlines the cost to collect and treat each unit of sewage to serve each customer. This process reviews each item in the system’s budget and allocates the items based on what function is served. For example, some cost items support the collection or treatment of wastewater while other costs are incurred to provide customer service or to fund infrastructure maintenance. Organizing the budget in terms of end function allows the creation of a nexus between the budget item and the rate. This process bridges the costs incurred by the City and the unique and varied benefits delivered to each customer. With respect to wastewater, there are two methods outlined in Manual of Practice No. 27 for distributing these costs: Wastewater Flow and Wastewater Loading Strengths. Both are considered fair and equitable because both approaches distribute revenue requirements to each class in proportion to their respective contribution to the system cost components. This study’s cost of service analysis uses the Base-Extra Capacity method which uses a three-part allocation process: 1. Functionalization: Annual costs are allocated by utility functions, such as collections, treatment, and customer service. 2. Rate Components: Wastewater facilities are designed and operated to collect wastewater and treat it to remove pollutants prior to reuse or disposal. The costs can be tracked in rate components such as collection flow, treatment flow, biochemical oxygen demand (BOD), total suspended solids (TSS), and customer service. These services are the basis for allocating the functionalized costs to cost components. 3. Customer Class: Cost components are distributed to customer classes in proportion to their burden on the system based on their estimated wastewater flows and loading. 1.3 Project Findings and Recommendations Based on the analysis projections, the City will need to increase wastewater rate revenues to implement identified capital improvement projects and, to a lesser extent, to keep pace with inflationary increases to O&M costs. While the use of reserves to fund a share of capital projects will help to mitigate the necessary level of rate increases, significant rate increases will still be required due to the magnitude of the capital improvements that are necessary. The main analysis discussed in this report assumes that the City will not be issuing bonds to support the CIP projects during the Study period, in line with the City’s typical capital funding practices. An alternative analysis, assuming the use of bonds, is included in the last section of the report. It is recommended that the City review its revenues and expenditures on an annual basis to verify that the implemented rates are adequately recovering costs. Feb. 11, 2025 Item #8 Page 25 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD 5 The key findings and recommendations are as follows:  Proposed Rate Increases: Given the considerable capital improvement projects for the study period (FYE 2025 – FYE 2029), increases of 14 percent per year through FYE 2027 are proposed with projected increases at 7-percent per year for FYE 2028 and FYE 2029.  Retain the Current Rate Structure: The proposed user rates largely retain the City’s current rate structure and will include a cost-of-service adjustment on July 1, 2025 based on the updated cost-of-service allocations followed by across the board increases on January 1, 2026 and January 1, 2027.  Rate Implementation Timing: Subsequent to the development of the rates proposed in this report, the City opted to delay rate increased until July 1, 2025. This will allow time to update the customer billing system to include the pass-through charges that have been developed for water rates. Rather than recalculating rates, the implementation of the rates developed based on a January 1, 2025 increase will be delayed by six months. The City will resume its typical calendar year rate increases starting January 1, 2026. The delay in 2025 will result in decreased revenues of approximately $1.8 million which will be covered with reserves. Future increases, beyond FYE 2027 may need to be higher than those presented to replenish the reserves.  Projected Reserves: The City’s utilities reserve policy sets a minimum reserve target based on components for 90-days of O&M costs, 1 year of annual debt service payments, 25-percent of the five year annual average CIP, a rate stabilization reserve set at minimum of 5-percent of annual rate revenues, and 1-percent of the system’s replacement value in an emergency reserve ($4.4 million for FYE 2025). The policy also includes general guidance to maintain total reserves equivalent to between 180 and 365 days of O&M expenditures. Due to the large anticipated CIP expenditures, the City will draw on its existing reserves to fund projects, resulting in rate increases lower than those that would be otherwise necessary. This use of reserves will result in total reserves being drawn below the minimum amount defined by the components, however they will remain within the 180 to 365 days of O&M range for all years except FYE 2028. Longer-term projections indicate that reserves would rebound above the minimum level by FYE 2030. Feb. 11, 2025 Item #8 Page 26 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD 6 Table 1 outlines the calculated wastewater charges for FYE 2025 through FYE 2029 for Option 1. Table 1 Proposed Wastewater Rates by Customer Class Customer Class Current Rate FYE 2025 Proposed Delayed to Jul. 1 2025 FYE 2026 Proposed Jan. 1 2026 FYE 2027 Proposed Jan. 1 2027 Increase(1) 14.00% CoS Adj. 14.00% 14.00% Group I - Residential - Monthly Flat Rate SFR $51.74 $59.85 $68.22 $77.77 SFR w/ Second Dwelling Unit 77.60 89.77 102.33 116.66 Group I - Residential - Rates per HCF MFR $5.95 $6.89 $7.85 $8.95 Mobile Home 5.95 6.89 7.85 8.95 Commercial - Rates per HCF GROUP II - Commercial 2 $5.06 $6.06 $6.91 $7.88 GROUP III - Commercial 3 7.21 8.01 9.13 10.41 GROUP IV - Commercial 4 12.61 12.90 14.71 16.76 Industrial Pretreatment Class III 8.14 9.03 10.29 11.73 Group V - School - Monthly Rates per Student Elementary School (per student) $1.02 $1.18 $1.34 $1.53 Junior High School (per student) 1.53 1.77 2.01 2.30 High School (per student) 2.03 2.36 2.68 3.06 Boarding School (per student) 10.56 11.98 13.65 15.56 Breweries - Rates per HCF B1 - Brewery without a restaurant and hauls waste for outside treatment $5.06 $6.06 $6.91 $7.88 B2 - Brewery without a restaurant that does not haul waste for outside treatment 14.06 14.63 16.67 19.01 B3 - Brewery with a restaurant and hauls waste for outside treatment 12.61 12.90 14.71 16.76 B4 - Brewery with a restaurant that does not haul waste for outside treatment 17.34 17.76 20.25 23.08 Notes: HCF – hundred cubic feet; MFR – multi family resident; SFR – single family resident. (1) Proposed rates for FYE 2025 include a cost-of-service adjustment and increases for specific rates vary from the 14.0-percent overall rate revenue increase. Feb. 11, 2025 Item #8 Page 27 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD 7 SECTION 2 INPUTS AND ASSUMPTIONS Financial, operational, and billing information provided by the City serve as the backbone of the revenue requirement and cost-of-service analysis. The projections developed for this analysis are based on several sources of information including the budgeted revenues and expenditures for FY 2023/24, actual revenues and expenditures from several prior fiscal years, EWPCF charge records, and other pertinent information such as the Council approved Utilities Reserve Policy. The analyses were completed by adding supplemental information and calculations to the City’s existing financial model. 2.1 Growth and Wastewater Usage The escalation factors used in this analysis are based on a review of both long-term and recent cost escalation factors from the Engineering News-Record Index Construction Cost Index, an industry benchmarking resource, and based on input from Carlsbad staff based on realized cost escalations. Other costs were escalated based on recent and specific cost trends. A customer growth escalation factor, used to project revenues, wastewater accounts, and wastewater discharge, is included based on the City’s planning growth estimates. These factors are presented in Table 2. Table 2 Escalation Factors Escalation Factor FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 General Inflation 4.0% 2.5% 2.5% 2.5% 2.5% Labor Inflation 4.0% 3.0% 3.0% 3.0% 3.0% Labor - PERS (Normal Cost) 13.2% 13.2% 13.2% 13.2% 13.2% Labor - PERS (UAL) 17.0% 16.8% 16.6% 16.5% 16.3% Labor - Health Insurance 6.4% 6.1% 5.9% 5.7% 5.7% EWA Operating 3.0% 3.0% 3.0% 3.0% 3.0% Chemicals Inflation 4.0% 4.0% 4.0% 4.0% 4.0% Utilities Inflation 4.0% 4.0% 4.0% 4.0% 4.0% Depreciation Funding 1.2% 1.2% 1.2% 1.2% 1.2% Interest Earnings 2.5% 2.5% 2.5% 2.5% 2.5% Customer Demand Growth 0.6% 0.2% 0.4% 1.0% 1.0% Gnrl Infltn + Cstmr Dmnd Grwth 4.6% 2.7% 2.9% 3.5% 3.5% No Annual Increase 0.0% 0.0% 0.0% 0.0% 0.0% One Time Expense -100.0% -100.0% -100.0% -100.0% -100.0% Feb. 11, 2025 Item #8 Page 28 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD 8 2.2 User Rate Categories Carlsbad classifies its wastewater customers as follows:  Group I: » SFR. » Single family residential with second dwelling unit. » Mobile Home. » Multi-Family Residential.  Group II - Commercial 2.  Group III - Commercial 3.  Group IV - Commercial 4.  Group V - Schools: » Elementary Schools. » Junior High Schools. » High Schools. » Boarding Schools.  Group VI - Large volume (no accounts).  Breweries: » B1 - Brewery without a restaurant and hauls waste for outside treatment. » B2 - Brewery without a restaurant that does not haul waste for outside treatment. » B3 - Brewery with a restaurant and hauls waste for outside treatment. » B4 - Brewery with a restaurant that does not haul waste for outside treatment.  Industrial pretreatment class III. SFR customers are charged a fixed monthly fee. SFR with an accessory-dwelling unit (ADU) has a higher fixed monthly fee to account for the additional discharges associated with the ADU as compared to a normal SFR account. All commercial groups and group VI customers are subject to a volumetric charge based on water usage. Schools are charged based on the number of students, as that influences a school’s impact on the wastewater system. The volumetric charges vary between customer classes based on each class’s assumed flow and loadings. Wastewater customers’ effluent discharges are not individually metered; instead, each user’s discharges are estimated using wastewater billing records and/or metered water consumption records and assumed strength characteristics. The City’s billing system has a detailed listing of historic water consumption by customer, property use classification, and month. Commercial customers are grouped into Group II, Group III and Group IV depending on their discharge characteristics. Customers in the Brewery category are split into separate rate classes based on whether or not they also operate as a restaurant, and whether they haul their brewing waste offsite for treatment. The Group VI - Large Volume rate category is currently not in use as the only customer in this category is located outside the service area and no longer has a business presence within the City. Feb. 11, 2025 Item #8 Page 29 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD 9 SECTION 3 REVENUE REQUIREMENT ANALYSIS The revenue requirement analysis is a comprehensive test of a utility’s fiscal health, scrutinizing the adequacy of current revenues, and setting the basis for rate planning. It reviews the utility’s revenues, expenses, debts, and reserve policies, and other requirements assessing the viability of each metric going forward. Where cash flows and balances are insufficient, the revenue requirement analysis determines the needed additional cash flows to meet all funding goals. The City’s FYE 2024 budget expenses serve as the base year for O&M costs. Furthermore, Carollo collected information related to current cash and restricted fund balances and policies, the budgeted capital improvement program expenditures, and all other operating and non-operating future revenues and expenditures. Once the revenue requirement is established by compiling all of the City’s cost drivers, three tests are utilized to define the annual revenues necessary.  The Cash Flow Sufficiency Test looks for a net positive cash flow at the end of each fiscal year to examine whether a utility is generating enough revenues to meet O&M expenses, debt service payments, policy driven additions to working capital (and reserves), miscellaneous capital outlays, replacement funding, and rate funded capital expenditures. When revenues exceed expenses, an increase in rate revenues is recommended.  The Debt Service Coverage Test assesses a utility’s ability to meet their annual debt service obligations. Bond issuances regularly include a stipulation that the agency must maintain sufficient cash flows to meet annual debt service payments plus an additional amount by its covenant. Typical debt service coverage ratio (DSCR) target ranges from 1.25 to 1.40 times annual debt service payment, depending on an agency’s specific financial situation and the type of debt instrument issued. This means that for a utility’s every $100 in debt obligation, it needs to generate $125 to $140 in net operating income. When the calculated DSCR falls below the target, an increase in rate revenues is recommended. The City’s DSCR requirement is 1.20. The main analysis presented in this report assumes that the City has no plan to issue additional debt other than the planned State Revolving Fund (SRF) debt service loans for FYE 2025 and FYE 2026.  The Reserves Test determines whether sufficient cash balances are maintained to ensure continuation of their operations and any financial obligations in the event of unforeseen costs or revenue shortfalls. This test is not legally binding but provides an assurance for a utility’s financial stability. When the end of the year balance falls before the target, an increase in rate revenues is recommended. However, reserve targets can be reduced in some cases in order to mitigate rate payer impacts. 3.1 Fiscal Policies Utility fund policies are intended to be implemented as a measure of safety and security against future events that may negatively impact the utility’s financial health. Fund balances can address variability and timing of expenditures and receipts, as well as occasional disruptions in activities, costs, or revenues. The general objectives of these policies are to facilitate stable and predictable rates and funding sources, along with equitable recovery of costs from customers as they are being incurred (or accrued). Feb. 11, 2025 Item #8 Page 30 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD 10 Overall, a utility’s fund policies are a collection of rules and guidelines. The collective use of individual funds will allow the utility to minimize its exposure to revenue shortfalls and to mitigate the rate increases that would otherwise be necessary to fund the CIP. As a part of the Revenue Requirement Analysis, the utility’s fiscal policies were incorporated to assess their impact on rates in relation to capital funding and reserves. The City’s utilities reserve policy sets a minimum reserve target based on components for 90-days of O&M costs, 1 year of annual debt service payments, 25-percent of the five year annual average CIP, a rate stabilization reserve set at 5-percent of annual rate revenues, and 1-percent of the system’s replacement value in an emergency reserve ($4.4 million for FYE 2025). The policy also includes general guidance to maintain total of these component reserves equivalent to between 180 and 365 days of O&M expenditures. 3.2 Operating Revenues Operating revenues are projected from budgeted revenues based on the escalation factors shown in Table 2. Table 3 below shows the projected user rate revenues based on the current rates and prior to the inclusion of any rate increases for FYE 2025 through FYE 2029. This base level of rate revenue is expected to increase modestly over the study period based on the expected level of growth in customer accounts. Table 3 Current Rate Revenues (in millions) FYE 2024 (budget) FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 Commodity Usage $23.557 $25.907 $25.962 $26.059 $26.316 $26.586 Sewer Pre-Treat 0.012 0.012 0.013 0.013 0.013 0.014 Total Wastewater Rate Revenues $23.569 $25.920 $25.974 $26.072 $26.329 $26.599 Notes: (1) Line or column totals may not tie due to rounding. In addition to rate revenues, the City also receives other offsetting revenues that can be used to decrease the amount of revenues needed from user rates. Table 4 summarizes the projected offsetting revenues for the wastewater fund. Table 4 Offsetting Revenues (in millions) FYE 2024 (budget) FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 Fines & Forfeitures $0.120 $0.121 $0.121 $0.121 $0.123 $0.124 Income from Property & Investments(1) 0.744 0.503 0.205 0.177 0.176 0.156 Interdepartmental 0.120 0.125 0.128 0.131 0.134 0.138 Other Revenues 0.067 0.070 0.071 0.073 0.075 0.077 Total Offsetting Revenues $1.051 $0.819 $0.525 $0.503 $0.508 $0.495 Notes: (1) Includes interest earned on the City’s fund balance based on the rate implementation. (2) Line or column totals may not tie due to rounding. Feb. 11, 2025 Item #8 Page 31 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD 11 3.3 Operations and Maintenance Expenditures The cost-of-service analysis utilizes the wastewater fund’s FYE 2024 budget as the basis for forecasting future revenue needs. O&M expenditures are assumed to increase commensurate with cost inflation and projected cost increases associated with increases in wastewater flows due to growth and higher treatment standards. Revenues and expenses are projected for future fiscal years using the annual escalation factors shown in Table 2. Table 5 presents a summary of the projected operating expenditures for FYE 2025 through FYE 2029. Detailed O&M projections are included in Appendix A. Table 5 Operating Expenditures (in millions) FYE 2024 (budget) FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 Personnel $3.322 $3.608 $3.726 $3.848 $3.973 $4.102 Encina (EWPCF) Operations 6.000 6.180 6.365 6.556 6.753 6.956 Maintenance & Equipment 4.100 3.981 4.086 4.194 4.305 4.419 Capital Outlay 0.025 0.026 0.026 0.027 0.028 0.028 Budget Adjustment (1.425) (1.456) (1.491) (1.528) (1.566) (1.605) Total Operating Expenses $12.022 $12.340 $12.713 $13.097 $13.492 $13.900 Notes: (1) Line or column totals may not tie due to rounding. 3.4 Capital Improvement Program Funding The City completed a wastewater master plan update in 2019 as well as an asset management master plan and a SCADA master plan. The plans developed capital improvement strategies, and the City has continually worked to refine the CIP based on project execution timelines, system needs, and funding availability. The City categorizes its capacity expansion-related projects as ‘connection projects’ and replacement-related projects as ‘replacement projects.’ Along with the City identified collection system projects, the EWPCF expects to continue its own reinvestment through rehabilitation and replacement projects. The City has budgeted $53.22 million (in 2024 dollars) for 15 replacement projects for the next 5 years. In addition, there are projects associated with the EWA’s general improvement projects and planned asset replacements totaling approximately $40.69 million. The City also has budgeted $13.56 million for 7 connection (expansion related) projects for the next 5 years. Table 6 shows the projected CIP project costs for FYE 2025 through FYE 2029. The capital costs develop by the City are adjusted to the midpoint of construction. Based on discussion with the City, the funding analysis includes additional 2.0-percent annual cost escalation factor for FYE 2025 and FYE 2026 to account for increases in construction and contracting costs. Project level detail of the CIP is included in Appendix B. Feb. 11, 2025 Item #8 Page 32 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD 12 Table 6 Capital Improvement Plan Expenditures (in millions) FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 Connection Fee Fund Projects $1.421 $1.312 $2.107 $4.700 $2.031 Replacement Fund Projects 6.598 13.102 9.325 12.615 11.580 Encina Projects 8.450 8.003 7.757 7.952 8.529 Total Sewer Projects $16.469 $22.417 $19.189 $25.267 $22.140 Total Escalated Cost $16.798 $25.187 $22.316 $30.412 $27.581 Notes: (1) Line or column totals may not tie due to rounding. The City frequently adjusts this CIP based on engineering and planning needs for the wastewater system. Prior to the completion of the wastewater master plan and asset management master plan, the City’s CIP spending had been limited. The City continued to set aside funds for capital projects throughout that time in anticipation of increased investments, however, not to the level required by the wastewater master plan. While the use of these reserves to fund a share of capital projects will help to mitigate the necessary level of rate increases, significant rate increases will still be required due to the magnitude of the capital improvements that are necessary based on the recommendations of the sewer master plan and on the EWPCF’s CIP needs. As shown in Table 6, the escalated CIP is projected to total approximately $122.29 million over the next 5 years. Table 7, on the next page, illustrates the anticipated funding sources to support these capital projects. At the beginning of FYE 2025, the City is expected to have a combined balance of $6.143 million between connection fee fund and replacement fund. Due to the level of capital spending needed, capital reserves will be drawn below the minimum of 25-percent of five year rolling average costs starting in FYE 2025 as they are spent to mitigate rate increases. Longer-term projections show the capital reserves rebounding above the minimum level in FYE 2030. Feb. 11, 2025 Item #8 Page 33 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD 13 Table 7 Capital Improvement Plan Funding (in millions) FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 Escalated Capital Costs (escalated) $16.798 $25.187 $22.316 $30.412 $27.581 Amount to be Rate Funded 4.594 14.868 12.615 21.131 21.278 Amount to be Funded with Reserves and Loans 12.204 10.319 9.700 9.281 6.303 Beginning Capital Funds Balance (Connection Fee and Replacement) $6.442 $4.567 $4.101 $3.528 $0.152 Transfers and Replacement Funding 5.361 5.423 5.486 5.549 5.612 Connection Fees 0.401 0.329 0.114 0.204 0.538 Loan Proceeds 0.500 4.101 0.000 0.000 0.000 Use of Replacement Funds (12.204) (10.319) (9.700) (9.281) (6.303) Year-End Transfer from Operating Fund 4.067 0.000 3.528 0.152 2.765 Year-End Balance $4.567 $4.101 $3.528 $0.152 $2.765 Notes: (1) Line or column totals may not tie due to rounding. An important aspect of the capital funding plan is that the City intends to draw on both existing replacement reserves and existing connection fee reserves to fund capital projects. Since the implementation of the City’s existing connection fees, reduced volumetric discharges due to conservation and changes in planned developments have reshaped the CIP projects that are necessary to serve new users. While some of the projects initially conceived and included in the connection fees have changed, other projects have been modified or expanded to take their place. Further, replacements and upgrades to the City’s existing infrastructure are required to maintain the assets that serve new users and to maintain the excess system capacity that will be needed to serve users that have not yet connected to the system. To these ends, the City plans to allocate existing connection fee reserves, as well as a share of future connection fees, to pay for replacement projects that have an excess capacity component. 3.5 Recommended Revenue Requirements Rate revenue increases will be necessary in order to meet the City’s projected revenue requirements, with funding of the capital program as the primary driver. Table 8, on the next page, summarizes the revenue requirement projection. Additional details of the revenue requirement calculations are shown in Appendix C. Feb. 11, 2025 Item #8 Page 34 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD 14 Table 8 Revenue Requirement Summary (in millions) FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 Pre-Rate Increase Rate Revenues without Increases $25.907 $25.962 $26.059 $26.316 $26.586 Revenues from Prior Years’ Increases 0.000 3.635 7.807 12.672 15.559 Offsetting Revenues (Inc. Pre Treatment) 0.831 0.538 0.516 0.522 0.509 Revenues $26.738 $30.134 $34.383 $39.510 $42.654 LESS: Operating Expenditures $13.795 $14.204 $14.625 $15.058 $15.505 One-time Funding (Budget Analysis Amount) (1.456) (1.491) (1.528) (1.566) (1.605) Rate Funded Capital 4.594 14.868 12.615 21.131 21.278 Debt Service (SRF Loan) 0.000 0.000 0.294 0.294 0.294 Replacement Funding 5.361 5.423 5.486 5.549 5.612 Expenses $22.295 $33.004 $31.492 $40.466 $41.084 Cash Flow Surplus/(Deficit) $4.443 ($2.870) $2.891 ($0.956) $1.570 Rate Revenue Increase 14.00% 14.00% 14.00% 7.00% 7.00% Post-Rate Increase Revenues from Rate Increases $3.627 $4.143 $4.741 $2.729 $2.950 Less: Rate Increase Delay(1) ($1.814) ($2.072) ($2.371) ($1.365) ($1.475) Adjustment for Implementation Delay(2) ($1.814) $0.000 $0.000 $0.000 $0.000 Total Operating Revenues With Increases $26.738 $32.206 $36.753 $40.874 $44.129 Operating Cash Flows Available for Capital and Reserves $4.443 ($0.798) $5.261 $0.409 $3.045 Operating Fund Reserve Beginning Operating Fund Balance $4.546 $4.922 $4.123 $5.856 $6.113 Cash Flow 4.443 (0.798) 5.261 0.409 3.045 Transfers to Capital Reserve (4.067) 0.000 (3.528) (0.152) (2.765) Ending Operating Fund Balance $4.922 $4.123 $5.856 $6.113 $6.393 Ending Capital Fund Balance 4.567 4.101 3.528 0.152 2.765 Combined Ending Balance $9.489 $8.224 $9.385 $6.265 $9.158 Total Days of O&M Costs 281 days 236 days 261 days 170 days 240 days Operating Reserve Days of O&M Costs 130 days 106 days 146 days 148 days 151 days Notes: (1) Adjustment to account for rate implementation on January 1 of each fiscal year. (2) Adjustment to reflect delay of rate implementation from January 1, 2025 to July 1, 2025. (3) Line or column totals may not tie due to rounding. Feb. 11, 2025 Item #8 Page 35 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD 15 SECTION 4 COST-OF-SERVICE ANALYSIS The purpose of a cost-of-service (COS) analysis is to provide a rational basis for distributing the full costs of wastewater service to each customer in proportion to the demands they place on the system. The COS analysis yields an appropriate method for allocating costs, which could be continued until substantial changes in cost drivers or customer flow or loading patterns occur. Using a COS analysis, user rates are developed to allocate O&M, debt service, and rehabilitation and replacement costs to system users. Allocating costs begins by developing unit costs for each billable constituent: treatment flow, BOD, TSS, and collections flow. Unit costs are then applied to the flow and loading of each customer category in order to allocate the costs to each customer. The City’s current rate structure was developed using a COS analysis. The overall procedure used to develop the user rates is as follows:  Revenue Needs. Define the annual revenue that must be recovered from user rates and permit users.  Functional Allocation. Determine the percentage allocation of O&M and capital costs to the billable constituents: treatment flow, BOD, TSS, and collection flow.  Unit Costs. Develop unit costs for each billable constituent by dividing the total cost allocated to that constituent by the total wastewater flow or loadings of that constituent.  Customer Category Rates. Calculate customer rates based on each customer type’s wastewater discharge characteristics. Note: The cost-of-service analysis values presented and discussed in this section are included for reference in Appendix D. 4.1 Revenue Needs The revenue needs are defined as the amount of revenues that must be recovered through user rates and industrial user rates in order to cover annual expenditures less any offsetting revenues. Expenditures and offsetting revenues for FYE 2025 are shown in Table 9 below. Table 9 Expenditures and Offsetting Revenues (in millions) FYE 2025 O&M Expenses $13.795 One-Time Funding (Budget Analysis Amount) (1.456) Rate-Funded capital 4.594 Debt Service 0.000 Replacement Funding 5.361 Adjustment to Reflect Full Year Increase 3.627 Operating Cash Flows (Available for Capital and Reserves) 4.443 Less: Offsetting Revenues (Inc. Pre Treatment) (0.831) Rate Revenues Required $29.534 Notes: (1) Line or column totals may not tie due to rounding. Feb. 11, 2025 Item #8 Page 36 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD 16 For FYE 2025, wastewater rates must be set to recover $29.53 million in annual revenue requirements. Because the calculated rate revenue increases reflected a January 1, 2025 implementation, and will be further delayed to July 1, 2025, the rate revenue requirements for each year include an “Adjustment to Reflect Full Year Increase.” This line item adjusts the required rate revenue to reflect a full year increase to match the full year of projected discharges and customer bills that are used to calculate the rates for each year. 4.2 Functional Allocation The American Water Works Association (AWWA) defines a two-step process for recovering costs for wastewater services. First, capital and O&M costs should be allocated to applicable functional categories. A functional category is a primary function of the utility that costs can be allocated to, then recovered based on how customers utilize the system. For this study, four functional categories were assumed as follows:  Treatment flow costs are associated with the treatment of sewage at the EWPCF based on volume and regardless of strength. The City does not meter sewage discharges. Instead, flows by each customer class are estimated using water consumption. The flow component is measured in assumed flow in HCF.  BOD costs are associated with providing the transportation and treatment of dissolved organisms within sewage effluent. BOD costs are allocated based on assumed BOD strength in a user class’s discharges. BOD is measured in pounds.  TSS costs relate to providing the transportation and treatment of solid matter within sewage effluent. TSS costs are allocated based on assumed TSS strength in a user class’s discharges. TSS is measured in pounds.  Collection flow costs represent the collection and transportation of sewage discharges to the EWPCF for treatment. The City does not meter sewage discharges. Instead, flows by each customer class are estimated using water consumption. The flow component is measured in assumed flow in HCF. Once the functional categories have been defined, each operating and capital cost is allocated on a line item basis to one or more of these functional categories. The functional costs are then used to develop unit costs for each category’s billable constituent. Feb. 11, 2025 Item #8 Page 37 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD 17 4.2.1 Functional Allocation Factors Annual expenditures and off-setting non-rate revenues are allocated on a line-by-line item basis between the functional components outlined in Table 10. The allocation metrics shown above are consistent with industry standards. Items that cannot be reasonably allocated between these functional categories are allocated “As-All-Others” and costs are split proportionally based on the allocation split of all other items. Table 10 Functional Allocation Factors Allocation Factor Treatment Flow BOD TSS Collection Flow As All Other (Weighted Average) Total Treatment Flow/BOD/TSS 40.3% 28.6% 31.1% 0.0% - 100.0% Collections - 5.0% 5.0% 90.0% - 100.0% Staff Allocation - 3.3% 3.3% 60.2% 33.1% 100.0% Vehicles - 5.0% 5.0% 90.0% - 100.0% Capital Improvement Plan 13.6% 12.6% 13.6% 60.2% - 100.0% Weighted Average O&M 26.6% 20.6% 22.3% 30.5% - 100.0% Weighted Average Total Rate Revenue Requirements 20.8% 17.0% 18.4% 43.8% - 100.0% Notes: (1) Line or column totals may not tie due to rounding. The allocation factors shown in Table 10 were determined as follows: Treatment Flow/BOD/TSS: This allocation factor is used to allocate the ongoing costs the City pays to the EWPCF for wastewater treatment. It represents the estimated average allocation of the City’s EWPCF charges and was determined based on detailed records of the City’s EWPCF invoices by allocating specific invoice elements to Treatment Flow, BOD, and TSS. Collections: This allocation factor is applied to line item costs that are specifically attributable to the City’s wastewater collection activities. Collections costs are driven primarily by flow, and therefore they are allocated 90 percent to collections flow. The City’s collections staff also spend time and resources reacting to and preventing issues within the collection system that are related to the BOD and TSS carried in the wastewater. These issues include material buildup, pipe degradation, and odor problems among others. To recognize these activities, a small share of collections costs is allocated to BOD and TSS at 5 percent each. Staff Allocation: The staff allocation was determined using an analysis of the City’s wastewater staff positions and the typical costs for each position. Operations and maintenance staff as well as asset management staff were allocated to the functional categories using the collections allocation, as their responsibilities relate to the collection system. All other staff costs are allocated to the As All Other category to be redistributed based on the weighted average O&M costs. Vehicles: The vehicles allocation was determined based on the responsibilities of the staff members who typically utilize City vehicles. These include predominantly operations and maintenance personnel and as such, the majority of vehicle costs are allocated based on the collections allocation and split between Collection Flow, BOS, and TSS. Feb. 11, 2025 Item #8 Page 38 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD 18 Capital Improvement Plan: Costs related to capital improvements are allocated to reflect the proposed CIP over the next 10 years. As shown in Table 11, capital costs for the collection system are assigned to the Collection Flow component. Capital costs for EWPCF projects are split between Treatment Flow, BOD, and TSS based on a typical allocation for municipal wastewater treatment plants. Using the 10-year CIP rather than a single year reflects that CIP projects are long-lived investments and helps to avoid large swings in cost allocations that could result from changes in the types of projects being completed from year-to-year. Weighted Average – O&M: This allocation reflects the overall allocation of O&M costs. Weighted Average – Total Revenue Requirements: This allocation reflects the overall allocation of total revenue requirements. 4.2.2 Functional Allocation Results Table 11 shows the functional allocation of projected O&M costs for FYE 2025. The resulting allocated O&M is then included along with the other revenue requirement elements to determine the overall revenue requirements allocation as shown in Table 13. The total allocated revenue requirements for each functional category are then used to determine the unit costs by billable constituent and subsequently the rates. Additional detail showing the line item allocations is included in Appendix D. Table 11 CIP Functional Allocation (in millions, 2024 Dollars) CIP Allocation Treatment Flow BOD TSS Collection Flow Ten-Year Total Encina Projects - Treatment $27.024 $24.975 $26.923 $0.000 $78.922 Carlsbad Projects - Collections 0.000 0.000 0.000 119.361 119.361 Allocated Cash Funded CIP Costs $27.024 $24.975 $26.923 $119.361 $198.283 CIP Percentage Allocation 13.6% 12.6% 13.6% 60.2% 100.0% Notes: (1) Line or column totals may not tie due to rounding. Table 12 O&M Functional Allocation (in millions) O&M Cost Allocation Treatment Flow BOD TSS Collection Flow As All Other (Weighted Average) Total Personnel $0.000 $0.121 $0.121 $2.172 $1.195 $3.608 Maintenance & Equipment 0.000 0.064 0.064 1.154 2.981 4.263 Encina Services 2.376 1.687 1.835 0.000 0.000 5.898 Capital Outlay 0.003 0.003 0.003 0.015 0.000 0.026 Budget Adjustment 0.000 (0.034) (0.034) (0.615) (0.772) (1.456) Allocated Costs $2.380 $1.841 $1.989 $2.726 $3.404 $12.340 Reallocation of "As All Other" 0.906 0.701 0.758 1.038 Total O&M Allocation $3.286 $2.542 $2.747 $3.765 $12.340 O&M Percentage Allocation 26.63% 20.60% 22.26% 30.51% 100.0% Notes: (1) Line or column totals may not tie due to rounding. Feb. 11, 2025 Item #8 Page 39 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD 19 Table 13 Revenue Requirements Functional Allocation (in millions) Revenue Requirements Allocation Treatment Flow BOD TSS Collection Flow As All Other (Weighted Average) Total Allocated O&M $3.286 $2.542 $2.747 $3.765 $12.340 Replacement Funding 0.731 0.675 0.728 3.227 0.000 5.361 Rate Funded Capital 0.626 0.579 0.624 2.766 0.000 4.594 Debt Service 0.000 0.000 0.000 0.000 0.000 0.000 Adj. to Reflect Full Year Increase 0.000 0.000 0.000 0.000 3.627 3.627 Operating Cash Flows 0.000 0.000 0.000 0.000 4.443 4.443 LESS: Offsetting Revenues 0.000 0.000 0.000 0.000 (0.831) (0.831) Allocated Costs $4.643 $3.796 $4.099 $9.758 $7.239 $29.534 Reallocation of "As All Other" 1.507 1.233 1.331 3.168 7.239 Total Allocation $6.150 $5.029 $5.429 $12.926 $29.534 O&M Percentage Allocation 20.82% 17.03% 18.38% 43.77% Notes: (1) Line or column totals may not tie due to rounding. Feb. 11, 2025 Item #8 Page 40 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD 20 SECTION 5 RATE DESIGN ANALYSIS 5.1 Customer Characteristics The City does not individually meter wastewater usage by its customers. Metering wastewater is an expensive and generally inefficient process. Single family residential customers, including duplex and flat billed multi-family customers tracked as ‘M1’ customers in the billing system data, incur a flat monthly charge for service. Schools are charged on a per student basis, and all other customer classes are charged based on a percentage of water consumption, which is outlined in this report. For the purposes of this study, City staff provided wastewater billing records, including January 2019 through June 2022. FY 2021/22 data were utilized to develop usage information by customer class and by month. Wastewater billing records list monthly charges by customer as well as the amount of water used by each customer. Water consumption was not provided for those customers who receive a flat monthly bill (i.e., single family residences and schools). For these customers, data from the water utility billing system was used to estimate discharges to the sewer system. In order to test the validity of the customer data, two tests were performed: an accuracy test and a reliability test. The accuracy test verifies that the correct data is being used by performing a price out on the provided data set in order to calculate revenues and compare the result to the City’s actual revenues. An acceptable margin of error for this test is +/-3 percent (actual revenues compared to revenues calculated from the billing records). Based on preliminary actuals for FYE 2022, the actual wastewater rate revenues collected by the City amounted to $16.057 million. Using the customer data set provided, the calculated amount came to $15.699 million, a difference of $0.36 million or 2.24 percent. This minimal level of discrepancy validates that the data provided is sufficiently accurate to be used in the model and calculations. Performing a reliability test is also necessary in order to confirm that the correct data is being used. From a statistical standpoint, the definition of reliability is the consistency of a set of measurements. In other words, "Can the provided data be considered a ‘normal’ year?" It is important to verify that a normalized year of data is being used as the foundation for developing rates; otherwise, revenues may be over or under collected. For example, during a wet year, consumption may be reduced. If a test for reliability is not performed under these circumstances, then the customer base may be understated. Rates would then be set at a level higher than needed and revenues would be over collected. While there is no guarantee that a ‘normal’ year will occur in the years addressed by this study, for the sake of projections, it is prudent to assume that this will be the case. Feb. 11, 2025 Item #8 Page 41 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD 21 After the provided customer data sets were validated, the number of accounts, the amount of flow, BOD, and TSS for each customer class were determined. This allowed for the allocation of costs from the various functional categories (as described in the previous section) to each customer class. The customer classes are defined as follows:  Single Family Residential includes single family residences, duplexes and M1 (multiple PDUs) accounts. These users are charged a flat monthly wastewater bill. The analysis of water usage was used to determine an estimated wastewater discharge of 164.54 gallons per day (gpd) or 6.69 HCF per month. The estimated discharge was calculated by applying an 80-percent return to sewer factor to the average water use for minimum two months of each of the last three fiscal years. This amount represents the estimated monthly indoor water use that is discharged to the sewer by each single family customer.  Multi-Family Residential includes multi-family residences and mobile homes. These users are charged based on their water usage (per HCF).  Group II Commercial includes soft water services, car washes, office buildings, professional buildings, laundromats, department and retail stores, warehouses, hospital convalescent homes and indoor theaters. These users are charged based on their water usage (per HCF).  Group III Commercial includes hotels and motels without restaurants, repair and service stations, shopping centers, amusement parks, nightclubs, nurseries and greenhouses, commercial laundries, manufacturing and lumber yards. These users are charged based on their water usage (per HCF).  Group IV Commercial includes hotels and motels with restaurants, wholesale bakeries, supermarkets, mortuaries, and restaurants. These users are charged based on their water usage (per HCF).  Group V includes schools: » Elementary Schools are billed on a per-student basis. » Middle Schools are billed on a per-student basis. » High Schools are billed on a per-student basis. » Boarding Schools are billed on a per-student basis.  Group VI Large Volume includes organizations and social services. These users are charged based on their water usage (per HCF). Currently, there is no accounts under this class.  Breweries include all businesses where beer or beverage brewing takes place. Breweries are split into four classes based on the strength of their discharge. Each brewery class has specific concentration assumptions depending on whether or not they have an attached restaurant and whether or not they haul their brewing waste offsite for treatment. The brewery classes are: » B1 - Brewery without a restaurant and hauls waste for outside treatment. These users are charged based on their water usage (per HCF). » B2 - Brewery without a restaurant that does not haul waste for outside treatment. These users are charged based on their water usage (per HCF). » B3 - Brewery with a restaurant and hauls waste for outside treatment. These users are charged based on their water usage (per HCF). » B4 - Brewery with a restaurant and hauls waste for outside treatment. These users are charged based on their water usage (per HCF). Feb. 11, 2025 Item #8 Page 42 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD 22  Industrial Pretreatment Class III includes any user discharging waste other than domestic waste, having a reasonable potential to adversely affect the Encina Water Pollution Control Facility and requires annual inspection and permits every three years. These users are charged based on their water usage. 5.1.1 Class Flow and Loading Assumptions Return to sewer factors and loading assumptions for each class are based on typically expected values for each type of customer as well as additional analysis completed for previous rate planning efforts. The loading assumptions for most classes are source from the California Revenue Program Guidelines, Appendix G. Assumptions for breweries were developed during previous studies and reflect typical values for breweries published by brewing industry groups. The baseline assumptions are adjusted using a mass-balance calculation that compares the flow and loading estimated based on metered water use, return to sewer assumptions, and loading concentration assumptions to the City’s flow and loads measured by Encina for billing purposes. Table 14 shows the flow mass balance for the FY 2021/22 billing data. Based on the billing data, the calculated flow per Equivalent Dwelling Unit (EDU) for single family customers, the assumed flow per student for schools, and assumed return to sewer factors for volumetric billed classes, estimated wastewater flows are 6.71 million gallons per day (MGD). EWA’s billing records (based on their FYE 2022 Annual Comprehensive Financial Report [ACFR]) indicated billed flow for Carlsbad at 5.74 MGD, 14.5-percent below the estimated amount. Based on this comparison, estimated flows for all customer classes and return to sewer factors for volumetric classes are reduced by 14.5-percent for subsequent calculations. The mass balance analysis indicated the need for significant adjustments to BOD and TSS concentration assumptions. This level of discrepancy is typical for agencies whose concentration assumptions are based on Appendix G of the California Revenue Program Guidelines. Since those guidelines were developed agencies have experienced significant indoor water conservation leading to increased constituent concentrations in their wastewater. To account for this discrepancy, adjustments will be applied proportionally for all customer classes. Table 15 shows the BOD mass balance for the FY 2021/22 billing data. Based on the adjusted flows from Table 14 and the assumed BOD concentration for each customer class, total BOD is estimated at 11,706 pounds per day. EWA’s billing records (based on their FYE 2022 ACFR) indicated billed BOD for Carlsbad at 17,639 pounds per day, 50.7-percent above the estimated amount. Based on this comparison, estimated BOD for all customer classes and assumed concentrations are increased by 50.7-percent for subsequent calculations. Table 16 shows the TSS mass balance for the FY 2021/22 billing data. Based on the adjusted flows from Table 14 and the assumed TSS concentration for each customer class, total TSS is estimated at 10,962 pounds per day. EWA’s billing records (based on their FYE 2022 ACFR) indicated billed TSS for Carlsbad at 20,790 pounds per day, 89.6-percent above the estimated amount. Based on this comparison, estimated TSS for all customer classes and assumed concentrations are increased by 89.6-percent for subsequent calculations. Feb. 11, 2025 Item #8 Page 43 of 265 20 2 5 WA S T E W A T E R C O S T -OF -SE R V I C E ST U D Y JA N U A R Y 2 0 2 5 / FI N A L / CA R O L L O CI T Y O F C A R L S B A D 23 Ta b l e 14 Wa s t e w a t e r F l o w M a s s B a l a n c e – FY 2 0 2 1 / 2 2 D a t a Cu s t o m e r C l a s s Bi l l e d / E s t i m a t e d Wa t e r U s e ( H C F ) In i t i a l R T S As s u m p t i o n Es t i m a t e d Wa s t e w a t e r Fl o w Ma s s B a l a n c e Ad j u s t m e n t Es t i m a t e d Wa s t e w a t e r Fl o w Ad j u s t e d R T S Pr i o r t o M a s s B a l a n c e Ma s s B a l a n c e A d j u s t ed GR O U P I – SF R (i n c . M1 ) : Es t . Flo w = 6. 6 9 H C F / mo n t h / E D U x 25 2 ,81 7 E D U s b i l l e d / y e a r 1, 7 3 5 , 8 7 7 (2 5 1 , 4 9 8 ) 1, 4 8 4 , 3 7 8 0. 0 % GR O U P I - MF R / M o b i l e H o m e s 64 6 , 4 2 6 90 . 0 % 58 1 , 7 8 3 (8 4 , 2 9 0 ) 49 7 , 4 9 3 77 . 0 % GR O U P I I - Co m m e r c i a l 2 38 3 , 0 0 6 90 . 0 % 34 4 , 7 0 6 (4 9 , 9 4 2 ) 29 4 , 7 6 4 77 . 0 % GR O U P I I I - Co m m e r c i a l 3 40 5 , 2 4 8 90 . 0 % 36 4 , 7 2 3 (5 2 , 8 4 2 ) 31 1 , 8 8 1 77 . 0 % GR O U P I V - Co m m e r c i a l 4 19 9 , 9 1 7 90 . 0 % 17 9 , 9 2 5 (2 6 , 0 6 8 ) 15 3 , 8 5 7 77 . 0 % In s t i t u t i o n a l 68 0 90 . 0 % 61 2 (8 9 ) 52 3 77 . 0 % GR O U P V - El e m e n t a r y S c h o o l s Es t. Fl o w = 6, 9 0 5 S t u d e n t s x 8 gp d / s t u d e n t x 2 0 0 d a y s / 7 4 8 g a l / H C F 14 , 7 7 0 (2 , 1 4 0 ) 12 , 6 3 0 0. 0 % GR O U P V - Ju n i o r H i g h S c h o o l s Es t . F l o w = 2 , 6 9 2 S t u d e n t s x 1 2 g p d / s t u d e n t x 2 0 0 d a y s / 7 4 8 g a l / H C F 8, 6 3 7 (1 , 2 5 1 ) 7, 3 8 6 0. 0 % GR O U P V - Hi g h S c h o o l s Es t . F l o w = 3 , 9 6 5 S t u d e n t s x 1 6 g p d / s t u d e n t x 2 0 0 d a y s / 7 4 8 g a l / H C F 16 , 9 6 3 (2 , 4 5 8 ) 14 , 5 0 5 0. 0 % GR O U P V - Bo a r d i n g S c h o o l s Es t . F l o w = 18 0 St u d e n t s x 44 . 7 gp d / s t u d e n t x 36 5 da y s / 7 4 8 g a l / H C F 3, 9 2 2 (5 6 8 ) 3, 3 5 4 0. 0 % GR O U P V I - La r g e V o l u m e ( n o a c c o u n t s ) 0 90 . 0 % 0 0 0 77 . 0 % Br e w e r y - B2 4, 7 8 6 82 . 5 % 3, 9 4 8 (5 7 2 ) 3, 3 7 6 70 . 5 % Br e w e r y - B3 9, 9 3 9 90 . 0 % 8, 9 4 5 (1 , 2 9 6 ) 7, 6 4 9 77 . 0 % Br e w e r y - B4 3, 0 8 8 82 . 5 % 2, 5 4 8 (3 6 9 ) 2, 1 7 8 70 . 5 % In d u s t r i a l P r e t r e a t m e n t C l a s s I I I 0 90 . 0 % 8, 1 4 0 (1 , 1 7 9 ) 6, 9 6 0 77 . 0 % To t a l ( H C F ) 1, 6 5 3 , 0 9 0 3, 2 7 5 , 4 9 8 (4 7 4 , 5 6 2 ) 2, 8 0 0 , 9 3 6 To t a l M G D 6. 7 1 (0 . 9 7 ) 5. 7 4 To t a l F l o w s F r o m E W A B i l l i n g ( M G D ) ( F Y E 2 0 2 2 AC F R ) ad j u s t m e n t : -14 . 5 % 5. 7 4 No t e s : (1 ) Li ne o r c o l u m n t o t a l s m a y n o t t i e d u e t o r o u n d i n g . Feb. 11, 2025 Item #8 Page 44 of 265 20 2 5 WA S T E W A T E R C O S T -OF -SE R V I C E ST U D Y JA N U A R Y 2 0 2 5 / FI N A L / CA R O L L O CI T Y O F C A R L S B A D 24 Ta b l e 15 Wa s t e w a t e r B O D M a s s B a l a n c e – FY 2 0 2 1 / 2 2 D a t a Cu s t o m e r C l a s s Es t i m a t e d Wa s t e w a t e r F l o w w i t h Ma s s B a l a n c e A d j u s t m e n t Es t i m a t e d B O D Pr i o r t o M a s s B a l a n c e BO D M a s s Ba l a n c e Ad j u s t m e n t Es t i m a t e d B O D Wi t h t o M a s s B a l a n c e HC F MG mg / L lb s lb s lb s mg / L GR O U P I - SF R 1, 4 8 4 , 3 7 8 1, 1 1 0 . 3 2 20 0 1, 8 5 3 , 2 0 6 93 9 , 2 2 8 2, 7 9 2 , 4 3 3 30 1 GR O U P I - MF R / M o b i l e H o m e s 49 7 , 4 9 3 37 2 . 1 2 20 0 62 1 , 1 0 6 31 4 , 7 8 4 93 5 , 8 9 1 30 1 GR O U P I I - Co m m e r c i a l 2 29 4 , 7 6 4 22 0 . 4 8 13 0 23 9 , 8 1 6 12 1 , 5 4 2 36 1 , 3 5 8 19 6 GR O U P I I I - Co m m e r c i a l 3 31 1 , 8 8 1 23 3 . 2 9 32 8 63 9 , 2 2 4 32 3 , 9 6 7 96 3 , 1 9 1 49 5 GR O U P I V - Co m m e r c i a l 4 15 3 , 8 5 7 11 5 . 0 9 82 0 78 7 , 5 5 4 39 9 , 1 4 2 1, 1 8 6 , 6 9 5 1, 2 3 6 In s t i t u t i o n a l 52 3 0. 3 9 13 0 42 5 21 5 64 0 19 6 GR O U P V - El e m e n t a r y S c h o o l s 12 , 6 3 0 9. 4 5 13 0 10 , 2 4 9 5, 1 9 5 15 , 4 4 4 19 6 GR O U P V - Ju n i o r H i g h S c h o o l s 7, 3 8 6 5. 5 2 13 0 5, 9 9 4 3, 0 3 8 9, 0 3 2 19 6 GR O U P V - Hi g h S c h o o l s 14 , 5 0 5 10 . 8 5 13 0 11 , 7 7 1 5, 9 6 6 17 , 7 3 7 19 6 GR O U P V - Bo a r d i n g S c h o o l s 3, 3 5 4 2. 5 1 13 0 2, 7 2 1 1, 3 7 9 4, 1 0 1 19 6 GR O U P V I - La r g e V o l u m e ( n o a c c o u n t s ) 0 0. 0 0 80 0 0 0 12 1 Br e w e r y - B2 3, 3 7 6 2. 5 3 1, 2 6 5 26 , 6 6 5 13 , 5 1 4 40 , 1 8 0 1, 9 0 6 Br e w e r y - B3 7, 6 4 9 5. 7 2 82 0 39 , 1 5 4 19 , 8 4 4 58 , 9 9 7 1, 2 3 6 Br e w e r y - B4 2, 1 7 8 1. 6 3 1, 6 1 0 21 , 8 9 4 11 , 0 9 6 32 , 9 9 1 2, 4 2 6 In d u s t r i a l P r e t r e a t m e n t C l a s s I I I 6, 9 6 0 5. 2 1 29 9 12 , 9 7 2 6, 5 7 4 19 , 5 4 6 45 0 To t a l ( l b s ) 2, 8 0 0 , 9 3 6 2, 0 9 5 4, 2 7 2 , 7 5 2 2, 1 6 5 , 4 8 3 6, 4 3 8 , 2 3 5 Po u n d s p e r D a y 11 , 7 0 6 17 , 6 3 9 Po u n d s p e r D a y M e a s u r e d b y E W A (F Y E 2 0 2 2 A C F R ) ad j u s t m e n t : 50 . 7 % 17 , 6 3 9 No t e s : mg/ L - mi l l i g r a m s p e r l i t e r . (1 ) Li ne o r c o l u m n t o t a l s m a y n o t t i e d u e t o r o u n d i n g . Feb. 11, 2025 Item #8 Page 45 of 265 20 2 5 WA S T E W A T E R C O S T -OF -SE R V I C E ST U D Y JA N U A R Y 2 0 2 5 / FI N A L / CA R O L L O CI T Y O F C A R L S B A D 25 Ta b l e 16 Wa s t e w a t e r T S S M a s s B a l a n c e – FY 2 0 2 1 / 2 2 D a t a Cu s t o m e r C l a s s Es t i m a t e d W a s t e w a t e r F l o w wi t h M a s s B a l a n c e Ad j u s t m e n t Es t i m a t e d T S S Pr i o r t o M a s s B a l a n c e TS S M a s s Ba l a n c e Ad j u s t m e n t Es t i m a t e d T S S ( l b s ) Wi t h t o M a s s B a l a n c e HC F MG mg / L lb s lb s lb s mg / L GR O U P I - SF R 1, 4 8 4 , 3 7 8 1, 1 1 0 . 3 2 20 0 1, 8 5 3 , 2 0 6 1, 6 6 1 , 3 7 5 3, 5 1 4 , 5 8 0 37 9 GR O U P I - MF R / M o b i l e H o m e s 49 7 , 4 9 3 37 2 . 1 2 20 0 62 1 , 1 0 6 55 6 , 8 1 4 1, 1 7 7 , 9 2 0 37 9 GR O U P I I - Co m m e r c i a l 2 29 4 , 7 6 4 22 0 . 4 8 12 1 22 1 , 8 2 5 19 8 , 8 6 3 42 0 , 6 8 8 22 9 GR O U P I I I - Co m m e r c i a l 3 31 1 , 8 8 1 23 3 . 2 9 27 9 54 2 , 9 6 2 48 6 , 7 5 8 1, 0 2 9 , 7 2 0 52 9 GR O U P I V - Co m m e r c i a l 4 15 3 , 8 5 7 11 5 . 0 9 68 0 65 3 , 0 9 3 58 5 , 4 9 0 1, 2 3 8 , 5 8 3 1, 2 9 0 In s t i t u t i o n a l 52 3 0. 3 9 10 0 32 7 29 3 62 0 19 0 GR O U P V - El e m e n t a r y S c h o o l s 12 , 6 3 0 9. 4 5 10 0 7, 8 8 4 7, 0 6 8 14 , 9 5 2 19 0 GR O U P V - Ju n i o r H i g h S c h o o l s 7, 3 8 6 5. 5 2 10 0 4, 6 1 1 4, 1 3 3 8, 7 4 4 19 0 GR O U P V - Hi g h S c h o o l s 14 , 5 0 5 10 . 8 5 10 0 9, 0 5 5 8, 1 1 7 17 , 1 7 2 19 0 GR O U P V - Bo a r d i n g S c h o o l s 3, 3 5 4 2. 5 1 10 0 2, 0 9 3 1, 8 7 7 3, 9 7 0 19 0 GR O U P V I - La r g e V o l u m e ( n o a c c o u n t s ) 0 0. 0 0 80 0 0 0 15 2 Br e w e r y - B2 3, 3 7 6 2. 5 3 81 0 17 , 0 7 8 15 , 3 1 0 32 , 3 8 8 1, 5 3 7 Br e w e r y - B3 7, 6 4 9 5. 7 2 68 0 32 , 4 6 9 29 , 1 0 8 61 , 5 7 7 1, 2 9 0 Br e w e r y - B4 2, 1 7 8 1. 6 3 1, 0 9 0 14 , 8 2 3 13 , 2 8 9 28 , 1 1 1 2, 0 6 7 In d u s t r i a l P r e t r e a t m e n t C l a s s I I I 6, 9 6 0 5. 2 1 47 7 20 , 7 3 5 18 , 5 8 9 39 , 3 2 4 90 5 To t a l ( l b s ) 2, 8 0 0 , 9 3 6 1, 1 1 0 . 3 2 4, 0 0 1 , 2 6 7 3, 5 8 7 , 0 8 3 7, 5 8 8 , 3 5 0 Po u n d s p e r D a y 10 , 9 6 2 20 , 7 9 0 Po u n d s p e r D a y M e a s u r e d b y E W A (F Y E 2 0 2 2 A C F R ) ad j u s t m e n t : 89 . 6 % 20 , 7 9 0 No t e s : (1 ) Li ne o r c o l u m n t o t a l s m a y n o t t i e d u e t o r o u n d i n g . Feb. 11, 2025 Item #8 Page 46 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD 26 Using these assumptions and adjusted flow and loading discussed above, and wastewater billing records, the number of accounts, flows, and loading were projected for each customer class based on the City’s account growth assumptions. Projected statistics for FYE 2025 for each customer class are summarized in Table 17. The City’s rate structure includes a minimum monthly bill provision in which volumetric users are charged for a minimum of 1 EDU (the single family charge) for months where their otherwise calculated bill would be less than that amount. The incremental flow and loads associated with those minimum charges is accounted for in the unit cost calculations so that the rates accurately reflect the amount of units billed, inclusive of those indicated by the minimum charges. The incremental flow associated with the minimum charges is calculated by applying the flow per EDU to the number of minimum charges occurring. Incremental loading is calculated by applying the adjusted residential concentrations for BOD and TSS to the incremental flow. The incremental amount billed in minimum charges is shown in Table 17. Table 17 Expected Billed Units by Customer Class for FY 2024/25 Customer Class Monthly Account Flow (HCF) BOD (lbs) TSSb(lbs) GROUP I – SFR 21,844 1,499,777 2,821,402 3,551,041 GROUP I – MFR/Mobile Homes 784 502,654 945,600 1,190,140 GROUP II – Commercial 2 1,102 297,822 365,107 425,052 GROUP III – Commercial 3 247 315,117 973,183 1,040,402 GROUP IV – Commercial 4 167 155,453 1,199,006 1,251,432 Institutional 3 529 647 626 Elementary School 20 12,761 15,604 15,107 Middle School 4 7,463 9,125 8,835 High School 4 14,655 17,921 17,350 Boarding School 1 3,388 4,143 4,011 GROUP VI – Large Volume (no accounts) 0 0 0 0 Breweries B1 0 0 0 0 B2 7 3,411 40,597 32,724 B3 12 7,728 59,609 62,216 B4 4 2,201 33,333 28,403 Industrial Pretreatment Class III 1 7,033 19,749 39,732 Incremental Amount Billed in Minimum Charges 308,704 580,737 730,921 Total 24,200 3,138,696 7,085,763 8,397,992 Notes: (1) Line or column totals may not tie due to rounding. Feb. 11, 2025 Item #8 Page 47 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD 27 5.2 Unit Cost Calculation Unit costs for each billable constituent are calculated by dividing the total allocated revenue requirements from Table 13 by the billed units from Table 17. Table 18 shows the calculation of unit costs for FYE 2025. Table 18 Unit Cost per Billable Constituents Unit Cost Calculation Treatment Flow BOD TSS Collection Flow Allocated Rate Revenue (Millions) $6.150 $5.029 $5.429 $12.926 Unit Basis for Rate Design Estimated Sewer Flows (HCF) Estimated BOD Discharges (lbs) Estimated TSS Discharges (lbs) Estimated Sewer Flows (HCF) FYE 2025 Billed Units 3,138,696 7,085,763 8,397,992 3,138,696 FYE 2025 Unit Costs $1.959 per HCF $0.710 per lb $0.646 per lb $4.118 per HCF Notes: (1) Line or column totals may not tie due to rounding. 5.3 Rate Design Based on the rate evaluation performed under the previous tasks, it was determined that in general, the City’s current rate structure is capable of meeting the City's goals. The recommended rates are based on “cost-of-service” principles that incorporate the work performed in previous tasks and adhere to Proposition 218 requirements. Rates for each class are determined using two general steps:  First, a unit cost per HCF of wastewater discharge is determined for each class based on the unit costs per billable constituent from Table 18 and the assumed BOD and TSS concentrations from Tables 15 and 16.  Next, each class’s unit cost per HCF of discharge is used along with other assumptions to determine the proposed rate. » For single family and other flat rate customers, the class unit cost per HCF is multiplied by the assumed flow per month to determine the monthly charge. » For customers charged based on water usage, each class’s unit cost per HCF is multiplied by its adjusted return-to-sewer factor to determine the rate per HCF of water consumption. » For schools, the class unit cost per HCF is multiplied by the assumed flow per student to determine the monthly rate per student. The following sections outline the calculations used to determine rates for each customer class. 5.3.1 Class Unit Costs per HCF Discharges As noted above, the first step in the rate calculations is determining each class’s unit cost per HCF of sewage discharged. This calculation is performed by converting the BOD and TSS mg/L concentrations from Tables 15 and 16 to a mass load concentration in lb/HCF. Next, the mass load in lb/HCF is multiplied by its respective unit cost per lb from Table 16 to calculate a component unit cost per HCF. Finally, the component unit costs per HCF for BOD and TSS are added to the unit costs for Treatment Flow and Collection Flow from Table 18 (already in terms of per HCF) to determine the total unit cost per HCF. Feb. 11, 2025 Item #8 Page 48 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD 28 An example of this calculation for Group 1 residential customers is shown in Table 19. An identical calculation is used to determine the $/HCF unit cost for each class as summarized in Table 20. Table 19 Group I Unit Cost per HCF Calculation Group I SFR Unit Cost per HCF Example Concentration (mg/L) Mass Load lb/HCF Unit Cost $/lb Unit Cost $/HCF Discharged Item A B C D BOD 301 1.881 $0.710 $1.34 TSS 379 2.367 $0.646 $1.53 Treatment Flow N/A N/A N/A $1.96 Collections Flow N/A N/A N/A $4.12 Total Unit Cost per HCF N/A N/A N/A $8.94 Mass Load, lb per HCF (B) = [Concentration, mg/L (A)] x [3.785 gallons per L] x [748 gallons per HCF] / [453,592 mg per lb] Unit Cost, $/HCF (D) = [Mass Load, lb/HCF (B)] x [Unit Cost, $/lb (C)] Notes: (1) Line or column totals may not tie due to rounding. Feb. 11, 2025 Item #8 Page 49 of 265 20 2 5 WA S T E W A T E R C O S T -OF -SE R V I C E ST U D Y JA N U A R Y 2 0 2 5 / FI N A L / CA R O L L O CI T Y O F C A R L S B A D 29 Ta b l e 20 Al l C l a s s e s U n i t C o s t p e r H C F C a l c u l a t i o n Cu s t o m e r C l a s s U n i t C o s t s pe r H C F D i s c h a r g e d BO D ( m g / L) Ma s s L o a d lb / H C F BO D ( $ / H C F ) TS S ( m g / L) Ma s s L o a d lb / H C F TS S ( $ / H C F ) Fl o w (C o l l e c t i o n an d Tr e a t m e n t ) ($ / H C F ) To t a l $ P e r HC F Di s c h a r g e d GR O U P I - SF R & Mi n i m u m C h a r g e s 30 1 1. 8 8 1 $1 . 3 4 37 9 2. 3 6 7 $1 . 5 3 $6 . 0 8 $8 . 9 4 GR O U P I - MF R /M o b i l e H o m e s 30 1 1. 8 8 1 $1 . 3 4 37 9 2. 3 6 7 $1 . 5 3 $6 . 0 8 $8 . 9 4 GR O U P I I - Co m m e r c i a l 2 19 6 1. 2 2 6 $0 . 8 7 22 9 1. 4 2 7 $0 . 9 2 $6 . 0 8 $7 . 8 7 GR O U P I I I - Co m m e r c i a l 3 49 5 3. 0 8 8 $2 . 1 9 52 9 3. 3 0 1 $2 . 1 3 $6 . 0 8 $1 0 . 4 0 GR O U P I V - Co m m e r c i a l 4 1, 2 3 6 7. 7 1 2 $5 . 4 7 1, 2 9 0 8. 0 4 9 $5 . 2 0 $6 . 0 8 $1 6 . 7 6 In s t i t u t i o n a l 19 6 1. 2 2 3 $0 . 8 7 19 0 1. 1 8 4 $0 . 7 7 $6 . 0 8 $7 . 7 1 El e m e n t a r y S c h o o l s 19 6 1. 2 2 3 $0 . 8 7 19 0 1. 1 8 4 $0 . 7 7 $6 . 0 8 $7 . 7 1 Ju n i o r H i g h S c h o o l s 19 6 1. 2 2 3 $0 . 8 7 19 0 1. 1 8 4 $0 . 7 7 $6 . 0 8 $7 . 7 1 Hi g h S c h o o l s 19 6 1. 2 2 3 $0 . 8 7 19 0 1. 1 8 4 $0 . 7 7 $6 . 0 8 $7 . 7 1 Bo a r d i n g S c h o o l s 19 6 1. 2 2 3 $0 . 8 7 19 0 1. 1 8 4 $0 . 7 7 $6 . 0 8 $7 . 7 1 GR O U P V I - La r g e V o l u m e ( n o a c c o u n t s ) 12 1 0. 7 5 2 $0 . 5 3 15 2 0. 9 4 7 $0 . 6 1 $6 . 0 8 $7 . 2 2 Br e w e r i e s B1 19 6 1. 2 2 6 $0 . 8 7 22 9 1. 4 2 7 $0 . 9 2 $6 . 0 8 $7 . 8 7 B2 1, 9 0 6 11 . 8 9 9 $8 . 4 5 1, 5 3 7 9. 5 9 1 $6 . 2 0 $6 . 0 8 $2 0 . 7 3 B3 1, 2 3 6 7. 7 1 2 $5 . 4 7 1, 2 9 0 8. 0 4 9 $5 . 2 0 $6 . 0 8 $1 6 . 7 6 B4 2, 4 2 6 15 . 1 4 2 $1 0 . 7 5 2, 0 6 7 12 . 9 0 3 $8 . 3 4 $6 . 0 8 $2 5 . 1 7 In d u s t r i a l P r e t r e a t m e n t C l a s s I I I 45 0 2. 8 0 8 $1 . 9 9 90 5 5. 6 4 9 $3 . 6 5 $6 . 0 8 $1 1 . 7 2 No t e s : (1 ) Li ne o r c o l u m n t o t a l s m a y n o t t i e d u e t o r o u n d i n g . Feb. 11, 2025 Item #8 Page 50 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD 30 5.3.2 Customer Class Rate Calculations Charges for customers that pay flat monthly fees are determined by multiplying their $/HCF unit cost by their assumed monthly flow. The calculation of monthly charges for single-family and applicable multi- family, duplex, and flat charges is shown in Table 21. The calculated FYE 2025 charge for a single EDU customer is $59.85, equal to the $/HCF unit cost multiplied by the estimated monthly flow of 6.69 HCF. For single family customers with an ADU, and EDU flow factor of 1.5 is applied to reflect the additional sewage discharged by the ADU. This results in a calculated charge for FYE 2025 of $89.77. Table 21 Group I Monthly Rate Calculation Unit Cost $/HCF Discharged EDU Flow Factor Monthly Discharge (HCF) Proposed Monthly Rate (per Account) GROUP I – Single-Family & Minimum Charges $8.94 1.0 6.69 $59.85 Single Family with ADU $8.94 1.5 10.04 $89.77 Table 22 shows the rate calculation for classes that pay rates based on their billed water consumption in HCF. The rates are determined by multiplying each class’s $/HCF unit cost by the adjusted return to sewer factor to determine the rate per HCF of water consumed. Table 22 Rate per HCF of Water Consumption Calculation Usage Based Rates Unit Cost $/HCF Discharged Return to Sewer Factor Calculated Monthly Rate (per HCF of Water Used) GROUP I – Multi-Family/Mobile Homes $8.94 76.96% $6.89 GROUP II - Commercial 2 $7.87 76.96% $6.06 GROUP III - Commercial 3 $10.40 76.96% $8.01 GROUP IV - Commercial 4 $16.76 76.96% $12.90 Brewery - B1 $7.87 76.96% $6.06 Brewery - B2 $20.73 70.55% $14.63 Brewery - B3 $16.76 76.96% $12.90 Brewery - B4 $25.17 70.55% $17.76 GROUP VI - Large Volume (no accounts) $7.22 76.96% $5.56 Industrial Pretreatment Class III $11.72 76.96% $9.03 Charges for schools that pay rates on a per-student basis are determined by multiplying their $/HCF unit cost by their assumed monthly flow per student. The calculation of monthly charges for each type of school is shown in Table 23. Table 23 Schools Rates Calculation Group V - Schools Rates Unit Cost $/HCF Discharged Assumed Flow per Student (gpd) Assumed Flow per Student (HCF per Month) Proposed Monthly Rate (per Student) GROUP V - Elementary Schools $7.71 6.84 0.15 $1.18 GROUP V - Junior High Schools $7.71 10.26 0.23 $1.77 GROUP V - High Schools $7.71 13.68 0.30 $2.36 GROUP V - Boarding Schools $7.71 38.18 1.55 $11.98 Feb. 11, 2025 Item #8 Page 51 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD 31 5.3.3 Proposed Rates Table 24 shows the proposed rates for January 1, 2025 (delayed to July 1, 2025), which are determined based on the COS analysis and Rate Design analysis as discussed above. Effective rates for each customer class in the first year vary from the overall 14-percent increase due to the updated cost allocation and rate design calculations. Rates for 2026 through 2029 are determined by applying the proposed rate revenue increases for those years to the 2025 rates. Table 24 Proposed Wastewater Rates by Customer Class Customer Class Current Rate FYE 2025 Proposed Delayed to Jul. 1 2025 FYE 2026 Proposed Jan. 1 2026 FYE 2027 Proposed Jan. 1 2027 Increase(1) 14.00% CoS Adj. 14.00% 14.00% Group I - Residential - Monthly Flat Rate Single Family Resident (SFR) $51.74 $59.85 $68.22 $77.77 SFR w/ Second Dwelling Unit 77.60 89.77 102.33 116.66 Group I - Residential - Rates per HCF Multi Family Resident (MFR) $5.95 $6.89 $7.85 $8.95 Mobile Home 5.95 6.89 7.85 8.95 Commercial - Rates per HCF GROUP II - Commercial 2 $5.06 $6.06 $6.91 $7.88 GROUP III - Commercial 3 7.21 8.01 9.13 10.41 GROUP IV - Commercial 4 12.61 12.90 14.71 16.76 Industrial Pretreatment Class III 8.14 9.03 10.29 11.73 Group V - School - Monthly Rates per Student Elementary School (per student) $1.02 $1.18 $1.34 $1.53 Junior High School (per student) 1.53 1.77 2.01 2.30 High School (per student) 2.03 2.36 2.68 3.06 Boarding School (per student) 10.56 11.98 13.65 15.56 Breweries - Rates per HCF B1 – Brewery without a restaurant and hauls waste for outside treatment $5.06 $6.06 $6.91 $7.88 B2 – Brewery without a restaurant that does not haul waste for outside treatment 14.06 14.63 16.67 19.01 B3 – Brewery with a restaurant and hauls waste for outside treatment 12.61 12.90 14.71 16.76 B4 – Brewery with a restaurant that does not haul waste for outside treatment 17.34 17.76 20.25 23.08 Notes: (1) Rates are rounded to the nearest $0.01. Feb. 11, 2025 Item #8 Page 52 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD 32 SECTION 6 ALTERNATIVE OPTION Using the same FYE 2024 budget, CIP, and assumptions, Carollo developed a scenario should the City decide to utilize bonds to mitigate impact of CIP funding on the rate payers. This chapter summarizes the findings and results of the alternative option with bond issuance. 6.1 Bond Issuance Issuing bonds could help to mitigate immediate impact of CIP funding on the rate payers by recovering the cost over the future years. City has a SRF loan in the amount of $4,601,000 entering repayment in FYE 2027 with annual debt service of $293,749. Anticipated draws on this loan are in Table 25 below. The calculated coverage during the Study period is shown well above the requirement of 1.20 x, indicating the City’s capacity to issue additional debt if appropriate. For the alternative option, additional debt issuances totaling $40.0M are assumed as shown in the table below. These potential bonds are assumed with loan terms of 30 years, 5.0 percent interest rates, and 1.0 percent of issuance cost. The debt service payments are calculated based on the assumptions shown in the table below. The table also illustrates the City’s capacity to meet its debt service coverage ratio requirement of 1.20 x with the assumed bonds. Table 25 Alternative Option – Bond Summary FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 Assumptions SRF Loan SRF Loan Bond Bond Term 20 years 20 years 30 years n/a 30 years Interest Rate 2.45% 2.45% 5.00% n/a 5.00% Issuance Costs n/a n/a 1.00% n/a 1.00% Total Proceeds $500,0001 $4,101,0001 $25,000,000 n/a $15,000,000 Annual Debt Service Payment3 $- $- $1,936,462 $1,936,462 $2,922,090 DSCR (Target of 1.25x) No Debt No Debt 8.71 x 9.24 x 6.55 x Notes: (1) Planned draws for the existing SRF loan. (2) Annual debt service payment shows the combined payments for all of the loans and bonds issued at any given year. 6.2 Recommended Revenue Requirements – Alternative Option With the additional debt issuances lower rate increases, as compared to those discussed in the previous sections, could be implemented. With the assumed debt issuances, the alternative option includes rate increases at 8-percent per year for FYE 2025 and FYE 2026 and at 3-percent per year thereafter. Though the combined fund balance in FYE 2026 falls below the minimum targets due to bond issuance timing, reserves would rebound in the following year. Table 26 below summarizes the revenue requirement projection. Feb. 11, 2025 Item #8 Page 53 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD 33 Table 26 Alternative Option with Bond Funding – Revenue Requirement Summary (in millions) FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 Pre-Rate Increase Rate Revenues without Increases $25.907 $25.962 $26.059 $26.316 $26.586 Revenues from Prior Years’ Increases 0.000 2.077 4.336 5.300 6.312 Offsetting Revenues (Inc. Pre Treatment) 0.831 0.538 0.491 0.624 0.693 Revenues $26.738 $28.576 $30.886 $32.240 $33.591 LESS: Operating Expenditures $13.795 $14.204 $14.625 $15.058 $15.505 One-time Funding (Budget Analysis Amount) (1.456) (1.491) (1.528) (1.566) (1.605) Rate Funded Capital 4.594 14.788 0.000 6.973 1.843 Debt Service 0.000 0.000 1.936 1.936 2.922 Replacement Funding 5.361 5.423 5.486 5.549 5.612 Expenses $22.295 $32.924 $20.519 $27.951 $24.278 Cash Flow Surplus/(Deficit) $4.443 ($4.348) $10.367 $4.289 $9.313 Rate Revenue Increase 8.00% 8.00% 3.00% 3.00% 3.00% Post-Rate Increase Revenues from Rate Increases $2.073 $2.243 $0.912 $0.948 $0.987 Less: Rate Increase Delay(1) ($1.036) ($1.122) ($0.456) ($0.474) ($0.493) Adjustment for Implementation Delay(2) ($1.036) $0.000 $0.000 $0.000 $0.000 Total Operating Revenues With Increases $26.738 $29.698 $31.342 $32.714 $34.084 Operating Cash Flows Available for Capital and Reserves $4.443 ($3.226) $10.823 $4.763 $9.806 Operating Fund Reserve Beginning Operating Fund Balance $4.546 $4.842 $1.615 $7.136 $7.313 Cash Flow 4.443 (3.226) 10.823 4.763 9.806 Transfers to Capital Reserve (4.147) 0.000 (5.302) (4.587) (8.646) Ending Operating Fund Balance $4.842 $1.615 $7.136 $7.313 $8.473 Ending Capital Fund Balance 4.647 4.100 15.002 4.587 8.646 Combined Ending Balance $9.489 $5.715 $22.138 $11.900 $17.119 Days of O&M Costs – Total Reserves 281 days 164 days 617 days 322 days 450 days Days of O&M Costs – Operating Reserve Only 128 days 42 days 178 days 177 days 199 days Notes: (1) Adjustment to account for rate implementation on January 1 of each fiscal year. (2) Adjustment to reflect delay of rate implementation from January 1, 2025 to July 1, 2025. (3) Line or column totals may not tie due to rounding. Feb. 11, 2025 Item #8 Page 54 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD 34 6.3 Proposed Rates – Alternative Option Based on the adjusted revenue requirement shown in Table 27, the cost of service analysis and rate designs are conducted in similar matter detailed in Sections 4 and 5. The resulting rates for alternative options are summarized in the table below. The proposed rates for January 1, 2025 (delayed to July 1, 2025), are determined based on the COS analysis and Rate Design analysis as discussed above. Effective rates for each customer class in the first year vary from the overall 8-percent increase due to the updated cost allocation and rate design calculations. Rates for 2026 through 2029 are determined by applying the proposed rate revenue increases for those years to the 2025 rates. Table 27 Alternative Option with Bond Funding – Proposed Wastewater Rates by Customer Class Customer Class Current Rate FYE 2025 Proposed Delayed to Jul. 1 2025 FYE 2026 Proposed Jan. 1 2026 FYE 2027 Proposed Jan. 1 2027 Increase(1) 8.00% CoS Adj. 8.00% 3.00% Group I - Residential - Monthly Flat Rate Single Family Resident (SFR) $51.74 $56.70 $61.23 $63.07 SFR w/ Second Dwelling Unit 77.60 85.04 91.84 94.60 Group I - Residential - Rates per HCF Multi Family Resident (MFR) $5.95 $6.53 $7.05 $7.26 Mobile Home 5.95 6.53 7.05 7.26 Commercial - Rates per HCF GROUP II - Commercial 2 $5.06 $5.74 $6.20 $6.39 GROUP III - Commercial 3 7.21 7.59 8.20 8.44 GROUP IV - Commercial 4 12.61 12.22 13.20 13.60 Industrial Pretreatment Class III 8.14 8.55 9.24 9.51 Group V - School - Monthly Rates per Student Elementary School (per student) $1.02 $1.12 $1.21 $1.24 Junior High School (per student) 1.53 1.68 1.81 1.86 High School (per student) 2.03 2.23 2.41 2.48 Boarding School (per student) 10.56 11.35 12.25 12.62 Breweries - Rates per HCF B1 – Brewery without a restaurant and hauls waste for outside treatment $5.06 $5.74 $6.20 $6.39 B2 – Brewery without a restaurant that does not haul waste for outside treatment 14.06 13.86 14.96 15.41 B3 – Brewery with a restaurant and hauls waste for outside treatment 12.61 12.22 13.20 13.60 B4 – Brewery with a restaurant that does not haul waste for outside treatment 17.34 16.83 18.17 18.72 Notes: (1) Rates are rounded to the nearest $0.01. Feb. 11, 2025 Item #8 Page 55 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD 35 Table 28 compares the rate revenue increases required for the baseline option presented in the previous section to those required for the alternative option. Table 28 Comparison of Rate Revenue Increases for Baseline Option to Alternative with Additional Bonds Financial Forecast Option FYE 2025 FYE 2026 FYE 2027 Baseline Option - No Additional Bonds 14.0% 14.0% 14.0% Alternative Option - $40 million in Additional Bonds 8.0% 8.0% 3.0% Figure 2 compares the monthly single family bill for the baseline and alternative options. Figure 2 Single Family Bill Comparison $51.74 $59.85 $68.22 $77.77 $51.74 $56.70 $61.23 $63.07 $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 FYE 2025 FYE 2026 FYE 2027 Monthly Single Family Bill Baseline Option - No Additional Bonds Alternative Option - $40 million in Additional Bonds Feb. 11, 2025 Item #8 Page 56 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD APPENDIX A PROJECTED O&M Feb. 11, 2025 Item #8 Page 57 of 265 20 1 0 20 2 8 20 2 9 20 3 0 20 3 1 20 3 2 20 3 3 CI T Y O F C A R L S B A D Wa s t e w a t e r F i n a n c i a l M o d e l Op e r a t i o n & M a i n t e n a n c e FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 O& M E s c a l a t o r s 20 2 4 20 2 5 20 2 6 20 2 7 20 2 8 20 2 9 Ge n e r a l I n f l a t i o n 5.0 0 % 4. 0 0 % 2. 5 0 % 2. 5 0 % 2.5 0 % 2. 5 0 % La b o r I n f l a t i o n 5.0 0 % 4. 0 0 % 3. 0 0 % 3. 0 0 % 3.0 0 % 3. 0 0 % La b o r - P E R S ( N o r m a l C o s t ) 13 . 2 0 % 13 . 2 0 % 13 . 2 0 % 13 . 2 0 % 13 . 2 0 % 13 . 2 0 % La b o r - P E R S ( U A L ) 16 . 6 6 % 16 . 9 5 % 16 . 7 9 % 16 . 6 3 % 16 . 4 7 % 16 . 3 1 % La b o r - H e a l t h I n s u r a n c e 6.6 3 % 6. 3 8 % 6. 1 3 % 5. 9 0 % 5.7 0 % 5. 7 0 % EW A O p e r a t i n g 10 . 0 0 % 3. 0 0 % 3. 0 0 % 3. 0 0 % 3.0 0 % 3. 0 0 % Ch e m i c a l s I n f l a t i o n 7.0 0 % 4. 0 0 % 4. 0 0 % 4. 0 0 % 4.0 0 % 4. 0 0 % Ut i l i t i e s I n f l a t i o n 7.0 0 % 4. 0 0 % 4. 0 0 % 4. 0 0 % 4.0 0 % 4. 0 0 % Co n s t r u c t i o n I n f l a t i o n 3.5 0 % 3. 5 0 % 3. 5 0 % 3. 5 0 % 3.5 0 % 3. 5 0 % De p r e c i a t i o n F u n d i n g 1.1 7 % 1. 1 6 % 1. 1 5 % 1. 1 5 % 1.1 5 % 1. 1 5 % In t e r e s t E a r n i n g s 2.3 0 % 2. 5 0 % 2. 5 0 % 2. 5 0 % 2.5 0 % 2. 5 0 % Cu s t o m e r D e m a n d G r o w t h 0. 7 5 % 0. 6 1 % 0. 2 1 % 0. 3 8 % 0.9 9 % 1. 0 2 % Gn r l I n f l t n + C s t m r D m n d G r w t h 5. 7 5 % 4. 6 1 % 2. 7 1 % 2. 8 8 % 3.4 9 % 3. 5 2 % No A n n u a l I n c r e a s e 0.0 0 % 0. 0 0 % 0. 0 0 % 0. 0 0 % 0.0 0 % 0. 0 0 % On e T i m e E x p e n s e -1 0 0 . 0 0 % -1 0 0 . 0 0 % -1 0 0 . 0 0 % -1 0 0 . 0 0 % -1 0 0 . 0 0 % -1 0 0 . 0 0 % O& M S u m m a r y RE V E N U E S Ch a r g e s f o r S e r v i c e s 23 , 5 6 8 , 8 1 8 $ 25 , 9 1 9 , 7 9 0 $ 29 , 6 0 9 , 0 8 2 $ 33 , 8 7 9 , 6 3 2 $ 39 , 0 0 1 , 7 5 0 $ 42 , 1 5 8 , 5 9 6 $ Fin e s a n d F o r f e i t u r e s 12 0 , 0 0 0 12 0 , 7 3 0 12 0 , 9 8 0 12 1 , 4 3 0 12 2 , 6 3 0 12 3 , 8 9 0 In c o m e f r o m P r o p e r t y & I n v e s t m e n t s 74 4 , 0 1 1 50 3 , 3 3 7 20 4 , 7 5 8 17 7 , 1 2 8 17 6 , 0 8 9 15 6 , 4 9 9 In t e r d e p a r t m e n t a l 12 0 , 0 0 0 12 4 , 8 0 0 12 7 , 9 2 0 13 1 , 1 2 0 13 4 , 4 0 0 13 7 , 7 6 0 Ot h e r R e v e n u e s 67 , 0 0 0 69 , 6 8 0 71 , 4 2 2 73 , 2 0 5 75 , 0 4 0 76 , 9 1 6 TO T A L 24 , 6 1 9 , 8 3 0 $ 26 , 7 3 8 , 3 3 7 $ 30 , 1 3 4 , 1 6 2 $ 34 , 3 8 2 , 5 1 5 $ 39 , 5 0 9 , 9 0 8 $ 42 , 6 5 3 , 6 6 1 $ EX P E N D I T U R E S Pe r s o n n e l 3, 3 2 2 , 0 8 8 $ 3, 6 0 8 , 1 8 0 $ 3, 7 2 6 , 4 5 2 $ 3, 8 4 7 , 9 1 5 $ 3, 9 7 2 , 6 7 9 $ 4, 1 0 1 , 8 4 1 $ Ma i n t e n a n c e & E q u i p m e n t 13 , 9 7 5 , 5 9 5 14 , 0 6 7 , 2 0 7 14 , 3 8 3 , 4 4 3 14 , 7 0 7 , 8 7 8 15 , 0 4 0 , 7 4 6 15 , 3 8 2 , 1 9 0 Ca p i t a l O u t l a y 24 , 6 5 1 25 , 6 3 7 26 , 2 7 8 26 , 9 3 5 27 , 6 0 8 28 , 2 9 9 Ot h e r F i n a n c i n g U s e s 10 , 0 9 0 , 1 1 3 - - - - - TO T A L 27 , 4 1 2 , 4 4 7 $ 17 , 7 0 1 , 0 2 5 $ 18 , 1 3 6 , 1 7 3 $ 18 , 5 8 2 , 7 2 7 $ 19 , 0 4 1 , 0 3 4 $ 19 , 5 1 2 , 3 3 0 $ NE T O P E R A T I N G S U R P L U S ( D E F I C I T ) (2 , 7 9 2 , 6 1 7 ) $ 9,0 3 7 , 3 1 2 $ 11 , 9 9 7 , 9 8 9 $ 15 , 7 9 9 , 7 8 8 $ 20 , 4 6 8 , 8 7 4 $ 23 , 1 4 1 , 3 3 1 $ Pa g e 1 Feb. 11, 2025 Item #8 Page 58 of 265 20 1 0 20 2 8 20 2 9 20 3 0 20 3 1 20 3 2 20 3 3 CI T Y O F C A R L S B A D Wa s t e w a t e r F i n a n c i a l M o d e l Op e r a t i o n & M a i n t e n a n c e FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 CO D E LIN E I T E M ES C A L A T O R FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 RE V E N U E S Wo r k i n g B u d g e t P r o j e c t i o n P r o j e c t i o n P r o j e c t i o n P r o j e c t i o n P r o j e c t i o n Ch a r g e s f o r S e r v i c e s 51 0 0 Co m m o d i t y U s a g e Cu s t o m e r D e m a n d G r o w t h 23 , 5 5 6 , 8 1 8 $ 25 , 9 0 7 , 3 1 0 $ 29 , 5 9 6 , 2 9 0 $ 33 , 8 6 6 , 5 2 0 $ 38 , 9 8 8 , 3 1 0 $ 42 , 1 4 4 , 8 2 0 $ 51 1 2 Se w e r P r e - T r e a t Ge n e r a l I n f l a t i o n 12 , 0 0 0 12 , 4 8 0 12 , 7 9 2 13 , 1 1 2 13 , 4 4 0 13 , 7 7 6 51 2 1 Se w e r L a t e r a l s Ge n e r a l I n f l a t i o n - - - - - - Ot h e r C h a r g e s f o r S e r v i c e s Ge n e r a l I n f l a t i o n - - - - - - To t a l C h a r g e s f o r S e r v i c e s 23 , 5 6 8 , 8 1 8 $ 25 , 9 1 9 , 7 9 0 $ 29 , 6 0 9 , 0 8 2 $ 33 , 8 7 9 , 6 3 2 $ 39 , 0 0 1 , 7 5 0 $ 42 , 1 5 8 , 5 9 6 $ 24 . 0 5 % 9. 9 7 % Fi n e s a n d F o r f e i t u r e s 52 2 5 La t e C h a r g e s Cu s t o m e r D e m a n d G r o w t h 12 0 , 0 0 0 $ 12 0 , 7 3 0 $ 12 0 , 9 8 0 $ 12 1 , 4 3 0 $ 12 2 , 6 3 0 $ 12 3 , 8 9 0 $ Ot h e r F i n e s a n d F o r f e i t u r e s Cu s t o m e r D e m a n d G r o w t h - - - - - - To t a l F i n e s a n d F o r f e i t u r e s 12 0 , 0 0 0 $ 12 0 , 7 3 0 $ 12 0 , 9 8 0 $ 12 1 , 4 3 0 $ 12 2 , 6 3 0 $ 12 3 , 8 9 0 $ In c o m e f r o m P r o p e r t y & I n v e s t m e n t s 53 0 0 In t e r e s t I n c o m e - P o o l e d C a s h [ C a l c u l a t e d ] 74 4 , 0 1 1 $ 50 3 , 3 3 7 $ 20 4 , 7 5 8 $ 17 7 , 1 2 8 $ 17 6 , 0 8 9 $ 15 6 , 4 9 9 $ 53 0 5 In t e r e s t - U n r e a l z d G a i n s / L o s s e s Ge n e r a l I n f l a t i o n - - - - - - 53 1 0 In t e r e s t I n c o m e F r m O t h r I n v Ge n e r a l I n f l a t i o n - - - - - - 53 6 0 Sa l e o f C a p i t a l A s s e t s ( c a s h a d j ) Ge n e r a l I n f l a t i o n - - - - - - 53 6 1 Do n a t e d A s s e t s Ge n e r a l I n f l a t i o n - - - - - - Ot h e r I n c o m e f r o m P r o p e r t y & I n v e s t m e n t s Ge n e r a l I n f l a t i o n - - - - - - To t a l I n c o m e f r o m P r o p e r t y & I n v e s t m e n t s 74 4 , 0 1 1 $ 50 3 , 3 3 7 $ 20 4 , 7 5 8 $ 17 7 , 1 2 8 $ 17 6 , 0 8 9 $ 15 6 , 4 9 9 $ In t e r d e p a r t m e n t a l 54 3 0 En g L a b o r Ge n e r a l I n f l a t i o n 12 0 , 0 0 0 $ 12 4 , 8 0 0 $ 12 7 , 9 2 0 $ 13 1 , 1 2 0 $ 13 4 , 4 0 0 $ 13 7 , 7 6 0 $ Ot h e r I n t e r d e p a r t m e n t a l Ge n e r a l I n f l a t i o n - - - - - - To t a l I n t e r d e p a r t m e n t a l 12 0 , 0 0 0 $ 12 4 , 8 0 0 $ 12 7 , 9 2 0 $ 13 1 , 1 2 0 $ 13 4 , 4 0 0 $ 13 7 , 7 6 0 $ Ot h e r R e v e n u e s 55 5 0 Pr i o r Y e a r F e e R e f u n d s Ge n e r a l I n f l a t i o n - $ - $ - $ - $ - $ - $ 56 3 6 Lo s s R e c o v e r y Ge n e r a l I n f l a t i o n - - - - - - 56 3 9 Mi s c R e i m b u r s e m e n t E x p . Ge n e r a l I n f l a t i o n 65 , 0 0 0 67 , 6 0 0 69 , 2 9 0 71 , 0 2 0 72 , 8 0 0 74 , 6 2 0 56 6 4 MI S C A R W r i t e O f f s Ge n e r a l I n f l a t i o n - - - - - - 56 7 4 Mi s c R e v e n u e s Ge n e r a l I n f l a t i o n 2,0 0 0 2, 0 8 0 2, 1 3 2 2, 1 8 5 2,2 4 0 2, 2 9 6 46 9 1 MI S C O T H E R F E D On e T i m e E x p e n s e - - - - - - 47 5 0 MI S C R V F R O M O T H E R A G E N C I E S On e T i m e E x p e n s e - - - - - - Ot h e r Ge n e r a l I n f l a t i o n - - - - - - To t a l O t h e r R e v e n u e s 67 , 0 0 0 $ 69 , 6 8 0 $ 71 , 4 2 2 $ 73 , 2 0 5 $ 75 , 0 4 0 $ 76 , 9 1 6 $ TO T A L R E V E N U E S 24 , 6 1 9 , 8 3 0 $ 26 , 7 3 8 , 3 3 7 $ 30 , 1 3 4 , 1 6 2 $ 34 , 3 8 2 , 5 1 5 $ 39 , 5 0 9 , 9 0 8 $ 42 , 6 5 3 , 6 6 1 $ Pa g e 2 Feb. 11, 2025 Item #8 Page 59 of 265 20 1 0 20 2 8 20 2 9 20 3 0 20 3 1 20 3 2 20 3 3 CI T Y O F C A R L S B A D Wa s t e w a t e r F i n a n c i a l M o d e l Op e r a t i o n & M a i n t e n a n c e FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 CO D E LIN E I T E M ES C A L A T O R FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 EX P E N D I T U R E S Wo r k i n g B u d g e t P r o j e c t i o n P r o j e c t i o n P r o j e c t i o n P r o j e c t i o n P r o j e c t i o n Pe r s o n n e l 61 0 0 Re g S a l a r i e s La b o r I n f l a t i o n 2, 1 3 0 , 6 9 5 $ 2, 2 1 5 , 9 2 0 $ 2, 2 8 2 , 4 0 0 $ 2, 3 5 0 , 8 7 0 $ 2, 4 2 1 , 4 0 0 $ 2, 4 9 4 , 0 4 0 $ 61 0 1 In c e n t i v e P a y La b o r I n f l a t i o n - - - - - - 61 3 5 Ha z a r d P a y La b o r I n f l a t i o n 49 , 5 8 6 51 , 5 7 0 53 , 1 2 0 54 , 7 1 0 56 , 3 5 0 58 , 0 4 0 61 5 0 IO D W o r k e r ' s C o m p La b o r I n f l a t i o n - - - - - - 62 0 0 Ov e r t i m e S a l a r i e s La b o r I n f l a t i o n 65 , 0 0 0 67 , 6 0 0 69 , 6 3 0 71 , 7 2 0 73 , 8 7 0 76 , 0 9 0 62 1 0 St a n d b y P a y La b o r I n f l a t i o n 25 , 4 7 0 26 , 4 9 0 27 , 2 8 0 28 , 1 0 0 28 , 9 4 0 29 , 8 1 0 63 0 0 Pa r t t i m e s S a l a r i e s La b o r I n f l a t i o n - - - - - - 63 0 5 In t e r n S a l a r i e s La b o r I n f l a t i o n 3,6 4 6 3, 7 9 0 3, 9 0 0 4, 0 2 0 4,1 4 0 4, 2 6 0 64 0 0 Te m p o r a r y H e l p La b o r I n f l a t i o n - - - - - - 65 0 1 He a l t h I n s u r a n c e La b o r - H e a l t h I n s u r a n c e 42 8 , 4 7 3 45 5 , 8 1 0 48 3 , 7 5 0 51 2 , 2 9 0 54 1 , 4 9 0 57 2 , 3 5 0 65 1 0 Li f e I n s u r a n c e Ge n e r a l I n f l a t i o n 1,4 3 8 1, 5 0 0 1, 5 4 0 1, 5 8 0 1,6 2 0 1, 6 6 0 65 1 1 AD & D - C i t y P a i d Ge n e r a l I n f l a t i o n 71 6 74 0 76 0 78 0 80 0 82 0 65 2 0 Vi s i o n I n s u r a n c e Ge n e r a l I n f l a t i o n - - - - - - 65 3 0 Me d i c a r e Ge n e r a l I n f l a t i o n 32 , 1 3 8 33 , 4 2 0 34 , 2 6 0 35 , 1 2 0 36 , 0 0 0 36 , 9 0 0 66 2 9 Ce l l P h o n e R e i m b u r s e m e n t Ge n e r a l I n f l a t i o n - - - - - - 66 3 0 Au t o A l l o w a n c e Ge n e r a l I n f l a t i o n 1,1 3 8 1, 1 8 0 1, 2 1 0 1, 2 4 0 1,2 7 0 1, 3 0 0 66 4 0 Ea r n e d L e a v e A c c r u a l La b o r I n f l a t i o n - - - - - - 66 5 1 He a l t h y E m p A w a r d s Ge n e r a l I n f l a t i o n - - - - - - 66 5 3 Fin a l V a c a t i o n P a y La b o r I n f l a t i o n - - - - - - 66 5 4 Fin a l S i c k L e a v e P a y La b o r I n f l a t i o n - - - - - - 66 5 5 Dis a b i l i t y Ge n e r a l I n f l a t i o n 12 , 8 2 9 13 , 3 4 0 13 , 6 7 0 14 , 0 1 0 14 , 3 6 0 14 , 7 2 0 66 5 6 Un e m p l o y m e n t Ge n e r a l I n f l a t i o n 11 , 0 7 9 11 , 5 2 0 11 , 8 1 0 12 , 1 1 0 12 , 4 1 0 12 , 7 2 0 66 5 7 Wo r k e r ' s C o m p e n s a t i o n Ge n e r a l I n f l a t i o n 55 , 0 0 0 57 , 2 0 0 58 , 6 3 0 60 , 1 0 0 61 , 6 0 0 63 , 1 4 0 67 2 0 PE R S La b o r - P E R S ( N o r m a l C o s t ) 27 2 , 2 7 2 29 2 , 5 0 1 30 1 , 2 7 7 31 0 , 3 1 5 31 9 , 6 2 5 32 9 , 2 1 3 67 2 3 PE R S U n f u n d e d L i a b E x p La b o r - P E R S ( N o r m a l C o s t ) 23 2 , 4 7 1 37 5 , 5 9 8 38 3 , 2 1 5 39 0 , 9 5 0 39 8 , 8 0 5 40 6 , 7 7 8 67 2 1 PE R S ( G A S B 6 8 C O N T R A A C C O U N T ) On e T i m e E x p e n s e - - - - - - 67 2 2 Op e r a t i o n E x p e n s e On e T i m e E x p e n s e - - - - - - 67 3 0 So c i a l S e c u r i t y On e T i m e E x p e n s e - - - - - - 67 4 0 De f e r r e d C o m p On e T i m e E x p e n s e 13 7 - - - - - Ot h e r P e r s o n n e l On e T i m e E x p e n s e - - - - - - To t a l P e r s o n n e l C o s t s T o t a l C o s t s 3, 3 2 2 , 0 8 8 $ 3,6 0 8 , 1 8 0 $ 3, 7 2 6 , 4 5 2 $ 3, 8 4 7 , 9 1 5 $ 3, 9 7 2 , 6 7 9 $ 4, 1 0 1 , 8 4 1 $ Pa g e 3 Feb. 11, 2025 Item #8 Page 60 of 265 20 1 0 20 2 8 20 2 9 20 3 0 20 3 1 20 3 2 20 3 3 CI T Y O F C A R L S B A D Wa s t e w a t e r F i n a n c i a l M o d e l Op e r a t i o n & M a i n t e n a n c e FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 Ma i n t e n a n c e & E q u i p m e n t 71 1 1 Ot h e r M a c h & E q u i p Ge n e r a l I n f l a t i o n - $ - $ - $ - $ - $ - $ 71 1 5 Ve h i c l e R e n t a l s Ge n e r a l I n f l a t i o n - - - - - - 71 1 9 Mi s c R e n t a l s Ge n e r a l I n f l a t i o n 10 , 0 0 0 10 , 4 0 0 10 , 6 6 0 10 , 9 3 0 11 , 2 0 0 11 , 4 8 0 71 2 0 Mi s c L e a s e s Ge n e r a l I n f l a t i o n - - - - - - 72 1 0 Of f i c e E q u i p M a i n t Ge n e r a l I n f l a t i o n - - - - - - 72 1 1 Co m m u n i c a t i o n E q u i p M a i n t e n a n c e Ge n e r a l I n f l a t i o n 1,0 0 0 1, 0 4 0 1, 0 7 0 1, 1 0 0 1,1 3 0 1, 1 6 0 72 1 5 So f t w a r e M a i n t e n a n c e Ge n e r a l I n f l a t i o n 27 , 2 2 8 28 , 3 2 0 29 , 0 3 0 29 , 7 6 0 30 , 5 0 0 31 , 2 6 0 72 1 6 Co m p u t e r M a i n t e n a n c e Ge n e r a l I n f l a t i o n - - - - - - 72 2 0 Ve h i c l e M a i n t e n a n c e Ge n e r a l I n f l a t i o n 15 , 0 0 0 15 , 6 0 0 15 , 9 9 0 16 , 3 9 0 16 , 8 0 0 17 , 2 2 0 72 2 1 Wa s h a n d W a x Ge n e r a l I n f l a t i o n 4,5 0 0 4, 6 8 0 4, 8 0 0 4, 9 2 0 5,0 4 0 5, 1 7 0 72 2 2 Ot h e r E q u i p M a i n t Ge n e r a l I n f l a t i o n - - - - - - 72 2 6 Pi p e l i n e M a i n t e n a n c e Ge n e r a l I n f l a t i o n 84 , 6 0 0 87 , 9 8 0 90 , 1 8 0 92 , 4 3 0 94 , 7 4 0 97 , 1 1 0 72 3 0 Ro u t i n e B u i l d i n g M a i n t e n a n c e Ge n e r a l I n f l a t i o n - - - - - - 72 4 1 As p h a l t R e p a i r s Ge n e r a l I n f l a t i o n 10 , 0 0 0 10 , 4 0 0 10 , 6 6 0 10 , 9 3 0 11 , 2 0 0 11 , 4 8 0 72 4 9 Ma i n t e n a n c e , R e p a i r a n d R e h a b Ge n e r a l I n f l a t i o n 3,0 0 0 3, 1 2 0 3, 2 0 0 3, 2 8 0 3,3 6 0 3, 4 4 0 74 0 0 Au d i t Ge n e r a l I n f l a t i o n - - - - - - 74 1 0 Le g a l Ge n e r a l I n f l a t i o n - - - - - - 74 3 5 Ad m i n i s t r a t i v e Ge n e r a l I n f l a t i o n - - - - - - 74 9 0 Mi s c P r o f e s s i o n a l S e r v i c e s Ge n e r a l I n f l a t i o n 41 7 , 2 7 8 43 3 , 9 7 0 44 4 , 8 2 0 45 5 , 9 4 0 46 7 , 3 4 0 47 9 , 0 2 0 75 0 0 En c i n a S e r v i c e s EW A O p e r a t i n g 6, 0 0 0 , 0 0 0 6, 1 8 0 , 0 0 0 6, 3 6 5 , 4 0 0 6, 5 5 6 , 3 6 0 6, 7 5 3 , 0 5 0 6, 9 5 5 , 6 4 0 En c i n a S e r v i c e s ( P e n s i o n P a y o f f ) No A n n u a l I n c r e a s e (2 8 1 , 7 5 0 ) (2 8 9 , 8 5 0 ) (2 9 8 , 1 8 3 ) (3 0 6 , 7 5 6 ) (3 1 5 , 5 7 5 ) 75 5 0 Mi s c e l l a n e o u s O u t s i d e S e r v i c e s Ge n e r a l I n f l a t i o n 45 0 , 5 2 0 46 8 , 5 4 0 48 0 , 2 5 0 49 2 , 2 6 0 50 4 , 5 7 0 51 7 , 1 8 0 75 5 1 Ba n k S e r v i c e s Ge n e r a l I n f l a t i o n 43 , 2 1 3 44 , 9 4 0 46 , 0 6 0 47 , 2 1 0 48 , 3 9 0 49 , 6 0 0 75 5 3 Co m m A r t s S u p p o r t Ge n e r a l I n f l a t i o n - - - - - - 75 5 4 Re g u l a t o r y / P e r m i t t i n g F e e s Ge n e r a l I n f l a t i o n 38 , 3 5 0 39 , 8 8 0 40 , 8 8 0 41 , 9 0 0 42 , 9 5 0 44 , 0 2 0 75 5 6 Mi s c S e r v i c e s Ge n e r a l I n f l a t i o n - - - - - - 75 5 8 La u n d r y a n d U n i f o r m M a i n t e a n c e Ge n e r a l I n f l a t i o n 5,0 0 0 5, 2 0 0 5, 3 3 0 5, 4 6 0 5,6 0 0 5, 7 4 0 75 5 9 Ele c t r i c a l / S C A D A S e r v i c e s Ge n e r a l I n f l a t i o n 33 , 4 4 3 34 , 7 8 0 35 , 6 5 0 36 , 5 4 0 37 , 4 5 0 38 , 3 9 0 75 6 0 Wa t e r S a m p l i n g S e r v i c e s Ge n e r a l I n f l a t i o n - - - - - - 75 6 2 FO G I n s p e c t i o n S e r v i c e s Ge n e r a l I n f l a t i o n 20 , 0 0 0 20 , 8 0 0 21 , 3 2 0 21 , 8 5 0 22 , 4 0 0 22 , 9 6 0 75 6 3 Sm a r t c o v e r W I F I / A l a r m S e r v i c e s Ge n e r a l I n f l a t i o n 50 , 0 0 0 52 , 0 0 0 53 , 3 0 0 54 , 6 3 0 56 , 0 0 0 57 , 4 0 0 75 6 4 La n d s c a p i n g S e r v i c e s Ge n e r a l I n f l a t i o n 13 0 , 2 8 0 13 5 , 4 9 0 13 8 , 8 8 0 14 2 , 3 5 0 14 5 , 9 1 0 14 9 , 5 6 0 77 1 0 Ad s a n d P u b l i s h i n g Ge n e r a l I n f l a t i o n 2,0 0 0 2, 0 8 0 2, 1 3 0 2, 1 8 0 2,2 3 0 2, 2 9 0 77 1 1 Du e s a n d S u b s c r i p t i o n s Ge n e r a l I n f l a t i o n 10 , 5 0 0 10 , 9 2 0 11 , 1 9 0 11 , 4 7 0 11 , 7 6 0 12 , 0 5 0 77 1 2 Bo o k s a n d P u b l i c a t i o n s Ge n e r a l I n f l a t i o n 50 0 52 0 53 0 54 0 55 0 56 0 77 1 3 Au d i o V i s u a l M a t e r i a l s Ge n e r a l I n f l a t i o n - - - - - - Pa g e 4 Feb. 11, 2025 Item #8 Page 61 of 265 20 1 0 20 2 8 20 2 9 20 3 0 20 3 1 20 3 2 20 3 3 CI T Y O F C A R L S B A D Wa s t e w a t e r F i n a n c i a l M o d e l Op e r a t i o n & M a i n t e n a n c e FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 77 1 5 Pr i n t i n g Ge n e r a l I n f l a t i o n 7,5 0 0 7, 8 0 0 8, 0 0 0 8, 2 0 0 8,4 1 0 8, 6 2 0 77 2 0 Po s t a g e Ge n e r a l I n f l a t i o n 4,5 0 0 4, 6 8 0 4, 8 0 0 4, 9 2 0 5,0 4 0 5, 1 7 0 77 2 5 Of f i c e S u p p l i e s Ge n e r a l I n f l a t i o n 5,0 0 0 5, 2 0 0 5, 3 3 0 5, 4 6 0 5,6 0 0 5, 7 4 0 77 2 6 Of f i c e F u r n i t u r e & E q u i p m e n t Ge n e r a l I n f l a t i o n 5,0 0 0 5, 2 0 0 5, 3 3 0 5, 4 6 0 5,6 0 0 5, 7 4 0 77 3 0 Co m p u t e r S o f t w a r e Ge n e r a l I n f l a t i o n 10 , 0 0 0 10 , 4 0 0 10 , 6 6 0 10 , 9 3 0 11 , 2 0 0 11 , 4 8 0 77 3 1 Mi s c . C o m p u t e r H a r d w a r e Ge n e r a l I n f l a t i o n 4,0 0 0 4, 1 6 0 4, 2 6 0 4, 3 7 0 4,4 8 0 4, 5 9 0 77 3 5 Pr o m o M a t e r i a l s Ge n e r a l I n f l a t i o n 5,0 0 0 5, 2 0 0 5, 3 3 0 5, 4 6 0 5,6 0 0 5, 7 4 0 77 4 5 Fo o d E x p e n s e Ge n e r a l I n f l a t i o n - - - - - - 77 5 0 He a t a n d L i g h t Ut i l i t i e s I n f l a t i o n 31 0 , 5 5 1 32 2 , 9 7 0 33 5 , 8 9 0 34 9 , 3 3 0 36 3 , 3 0 0 37 7 , 8 3 0 77 5 1 Te l e p h o n e & C o m m u n i c a t i o n s Ut i l i t i e s I n f l a t i o n 12 , 0 0 0 12 , 4 8 0 12 , 9 8 0 13 , 5 0 0 14 , 0 4 0 14 , 6 0 0 77 5 2 Wa s t e D i s p o a l S e r v i c e s Ut i l i t i e s I n f l a t i o n 10 , 6 9 6 11 , 1 2 0 11 , 5 6 0 12 , 0 2 0 12 , 5 0 0 13 , 0 0 0 77 5 3 Wa t e r Ut i l i t i e s I n f l a t i o n 37 , 4 4 0 38 , 9 4 0 40 , 5 0 0 42 , 1 2 0 43 , 8 0 0 45 , 5 5 0 78 0 1 Bu i l d i n g M a i n t e n a n c e Ge n e r a l I n f l a t i o n - - - - - - 78 1 0 Ele c t r i c a l S u p p l i e s Ge n e r a l I n f l a t i o n 50 0 52 0 53 0 54 0 55 0 56 0 78 1 1 Ja n i t o r i a l S u p p l i e s Ge n e r a l I n f l a t i o n 30 0 31 0 32 0 33 0 34 0 35 0 78 2 0 Pa r t s - V e h i c l e s Ge n e r a l I n f l a t i o n 50 0 52 0 53 0 54 0 55 0 56 0 78 2 1 Pa r t s - E q u i p Ge n e r a l I n f l a t i o n 20 9 , 2 5 5 21 7 , 6 2 0 22 3 , 0 6 0 22 8 , 6 4 0 23 4 , 3 6 0 24 0 , 2 2 0 78 3 0 Ro c k a n d M i n e r a l P r o d u c t s Ge n e r a l I n f l a t i o n 4,0 0 0 4, 1 6 0 4, 2 6 0 4, 3 7 0 4,4 8 0 4, 5 9 0 78 3 1 As p h a l t Ge n e r a l I n f l a t i o n 50 0 52 0 53 0 54 0 55 0 56 0 78 5 0 Sm a l l T o o l s Ge n e r a l I n f l a t i o n 1,5 0 0 1, 5 6 0 1, 6 0 0 1, 6 4 0 1,6 8 0 1, 7 2 0 78 5 1 Sa f e t y E q u i p m e n t Ge n e r a l I n f l a t i o n 21 , 7 5 0 22 , 6 2 0 23 , 1 9 0 23 , 7 7 0 24 , 3 6 0 24 , 9 7 0 78 5 2 Un i f o r m s a n d A c c e s s o r i e s Ge n e r a l I n f l a t i o n 5,0 0 0 5, 2 0 0 5, 3 3 0 5, 4 6 0 5,6 0 0 5, 7 4 0 78 5 3 Me t e r s / F i t t i n g s Ge n e r a l I n f l a t i o n - - - - - - 78 5 7 Pe r s o n a l P r o t e c t i v e E q u i p m e n t Ge n e r a l I n f l a t i o n - - - - - - 78 8 0 Ga s o l i n e a n d O i l Ut i l i t i e s I n f l a t i o n 2,0 0 0 2, 0 8 0 2, 1 6 0 2, 2 5 0 2,3 4 0 2, 4 3 0 78 8 3 Ch e m i c a l s Ch e m i c a l s I n f l a t i o n 82 , 3 4 0 85 , 6 3 0 89 , 0 6 0 92 , 6 2 0 96 , 3 2 0 10 0 , 1 7 0 78 8 6 Tr a i n i n g S u p p l i e s Ge n e r a l I n f l a t i o n - - - - - - 78 9 6 Me d i c a l S u p p l i e s - D i s p o s a b l e Ge n e r a l I n f l a t i o n - - - - - - 78 9 9 Mi s c S u p p l i e s Ge n e r a l I n f l a t i o n 16 , 4 0 0 17 , 0 6 0 17 , 4 9 0 17 , 9 3 0 18 , 3 8 0 18 , 8 4 0 81 1 0 Em p l o y e e T r a i n i n g Ge n e r a l I n f l a t i o n 3,0 0 0 3, 1 2 0 3, 2 0 0 3, 2 8 0 3,3 6 0 3, 4 4 0 81 2 0 Tu i t i o n R e i m b u r s e m e n t Ge n e r a l I n f l a t i o n - - - - - - 81 3 0 Tr a i n i n g / T r a i n i n g R e l a t e d T r a v e l Ge n e r a l I n f l a t i o n 4,5 0 0 4, 6 8 0 4, 8 0 0 4, 9 2 0 5,0 4 0 5, 1 7 0 85 2 0 Co n f e r e n c e T r a v e l Ge n e r a l I n f l a t i o n 3,1 7 1 3, 3 0 0 3, 3 8 0 3, 4 6 0 3,5 5 0 3, 6 4 0 85 2 2 Mi s c . M e a l s / M i l e s Ge n e r a l I n f l a t i o n 3,2 1 1 3, 3 4 0 3, 4 2 0 3, 5 1 0 3,6 0 0 3, 6 9 0 85 3 0 Ba d D e b t E x p - O t h e r I n v / B i l l s Ge n e r a l I n f l a t i o n 20 , 0 0 0 20 , 8 0 0 21 , 3 2 0 21 , 8 5 0 22 , 4 0 0 22 , 9 6 0 Pa g e 5 Feb. 11, 2025 Item #8 Page 62 of 265 20 1 0 20 2 8 20 2 9 20 3 0 20 3 1 20 3 2 20 3 3 CI T Y O F C A R L S B A D Wa s t e w a t e r F i n a n c i a l M o d e l Op e r a t i o n & M a i n t e n a n c e FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 85 3 2 Dis p o s a l o f A s s e t s Ge n e r a l I n f l a t i o n - - - - - - 85 3 4 Re g O v e r / S h o r t Ge n e r a l I n f l a t i o n - - - - - - 85 4 2 NE D R e n t a l A s s i s t a n c e P a y m e n t s No A n n u a l I n c r e a s e - - - - - - 85 4 4 La t e r a l A s s i s t a n c e P r o g r a m No A n n u a l I n c r e a s e 25 , 0 0 0 25 , 0 0 0 25 , 0 0 0 25 , 0 0 0 25 , 0 0 0 25 , 0 0 0 86 1 0 Se t t l e m e n t s Ge n e r a l I n f l a t i o n - - - - - - 87 0 0 Co n t i n g e n c i e s No A n n u a l I n c r e a s e - - - - - - 88 0 9 Ve h i c l e D i r e c t C h a r g e s Ge n e r a l I n f l a t i o n 2,6 2 8 2, 7 3 0 2, 8 0 0 2, 8 7 0 2,9 4 0 3, 0 1 0 88 1 0 Ve h i c l e M a i n t e n a n c e ( 2 ) Ge n e r a l I n f l a t i o n 13 8 , 9 6 0 14 4 , 5 2 0 14 8 , 1 3 0 15 1 , 8 3 0 15 5 , 6 3 0 15 9 , 5 2 0 88 1 1 Ve h i c l e R e p l a c e m e n t Ge n e r a l I n f l a t i o n 17 9 , 5 7 3 18 6 , 7 6 0 19 1 , 4 3 0 19 6 , 2 2 0 20 1 , 1 3 0 20 6 , 1 6 0 88 3 0 Ge n e r a l L i a b Ge n e r a l I n f l a t i o n 44 1 , 2 1 0 45 8 , 8 6 0 47 0 , 3 3 0 48 2 , 0 9 0 49 4 , 1 4 0 50 6 , 4 9 0 88 6 0 In f o r m a t i o n T e c h n o l o g i e s Ge n e r a l I n f l a t i o n 32 2 , 9 5 5 33 5 , 8 7 0 34 4 , 2 7 0 35 2 , 8 8 0 36 1 , 7 0 0 37 0 , 7 4 0 88 9 0 Mi s c I n t e r d e p a r t m e n t a l C h a r g e s Ge n e r a l I n f l a t i o n 84 3 , 8 0 8 87 7 , 5 6 0 89 9 , 5 0 0 92 1 , 9 9 0 94 5 , 0 4 0 96 8 , 6 7 0 88 9 1 Mi s C h g B a c k Ge n e r a l I n f l a t i o n - - - - - - 88 9 2 Ut i l i t y B i l l i n g C h a r g e b a c k Ge n e r a l I n f l a t i o n - - - - - - 89 1 0 Fis c a l A g e n t F e e s Ge n e r a l I n f l a t i o n - - - - - - 89 1 1 Ar b i t r a g e C o s t s Ge n e r a l I n f l a t i o n - - - - - - 89 2 2 In t E x p - C a p i t a l i z e d I n t e r e s t On e T i m e E x p e n s e - - - - - - Ot h e r - H e a t & L i g h t No A n n u a l I n c r e a s e - - - - - - Ot h e r - P a r t s & E q u i p m e n t No A n n u a l I n c r e a s e - - - - - - Ot h e r - S m a r t C o v e r s No A n n u a l I n c r e a s e - - - - - - Ad d t ' l M a i n t e n a n c e & E q u i p m e n t Ge n e r a l I n f l a t i o n - - - - - - Ot h e r M a i n t e n a n c e & E q u i p m e n t [ C a l c u l a t e d B e l o w ] (1 , 4 2 4 , 5 6 6 ) (1 , 4 5 5 , 6 7 3 ) (1 , 4 9 1 , 4 5 7 ) (1 , 5 2 8 , 1 7 9 ) (1 , 5 6 5 , 8 6 8 ) (1 , 6 0 4 , 6 2 5 ) To t a l M a i n t e n a n c e & E q u i p m e n t C o s t s 13 , 9 7 5 , 5 9 5 $ 14 , 0 6 7 , 2 0 7 $ 14 , 3 8 3 , 4 4 3 $ 14 , 7 0 7 , 8 7 8 $ 15 , 0 4 0 , 7 4 6 $ 15 , 3 8 2 , 1 9 0 $ Ca p i t a l O u t l a y 90 0 5 Ca p i t a l O u t l a y < $ 1 0 k - N e w Ge n e r a l I n f l a t i o n - $ - $ - $ - $ - $ - $ 90 0 6 Ca p i t a l O u t l a y < $ 1 0 k - R e p l Ge n e r a l I n f l a t i o n - - - - - - 90 1 0 Ca p O u t l a y - V e h i c l e s Ge n e r a l I n f l a t i o n 24 , 6 5 1 25 , 6 3 7 26 , 2 7 8 26 , 9 3 5 27 , 6 0 8 28 , 2 9 9 90 2 0 Co m p u t e r E q u i p > $ 1 0 k - R e p l Ge n e r a l I n f l a t i o n - - - - - - 90 2 1 Of f i c e E q u i p m e n t Ge n e r a l I n f l a t i o n - - - - - - 90 2 2 Ot h e r E q u i p m e n t Ge n e r a l I n f l a t i o n - - - - - - 90 3 0 Of f i c e F u r n i t u r e Ge n e r a l I n f l a t i o n - - - - - - 90 5 0 Ca p i t a l i z e d A s s e t s On e T i m e E x p e n s e - - - - - - Ot h e r C a p i t a l O u t l a y Ge n e r a l I n f l a t i o n - - - - - - To t a l C a p i t a l O u t l a y C o s t s 24 , 6 5 1 $ 25 , 6 3 7 $ 26 , 2 7 8 $ 26 , 9 3 5 $ 27 , 6 0 8 $ 28 , 2 9 9 $ Pa g e 6 Feb. 11, 2025 Item #8 Page 63 of 265 20 1 0 20 2 8 20 2 9 20 3 0 20 3 1 20 3 2 20 3 3 CI T Y O F C A R L S B A D Wa s t e w a t e r F i n a n c i a l M o d e l Op e r a t i o n & M a i n t e n a n c e FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 Ot h e r F i n a n c i n g U s e s 99 9 9 Re p l a c e m e n t F u n d i n g On e T i m e E x p e n s e 10 , 0 9 0 , 1 1 3 $ - $ - $ - $ - $ - $ Tr a n s f e r O u t - D e b t S e r v i c e Ge n e r a l I n f l a t i o n - - - - - - To t a l O t h e r F i n a n c i n g U s e s C o s t s 10 , 0 9 0 , 1 1 3 $ - $ - $ - $ - $ - $ TO T A L E X P E N D I T U R E S 27 , 4 1 2 , 4 4 7 $ 17 , 7 0 1 , 0 2 5 $ 18 , 1 3 6 , 1 7 3 $ 18 , 5 8 2 , 7 2 7 $ 19 , 0 4 1 , 0 3 4 $ 19 , 5 1 2 , 3 3 0 $ 7 8 9 10 11 12 AD D I T I O N A L O & M E X P E N D I T U R E S FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9  PW D i r e c t o r S a l a r y - e s t . 1 0 % La b o r I n f l a t i o n - $ - $ - $ - $ - $ - $  Ad d t ' l O & M 2 Ge n e r a l I n f l a t i o n - - - - - -  On e - t i m e ( E W A s p i l l c o s t s ) On e T i m e E x p e n s e - - - - - -  On e - t i m e ( O p t i m i z a t i o n , e t c . ) On e T i m e E x p e n s e - - - - - -  le s s : A d d e d R e v e n u e Ge n e r a l I n f l a t i o n - - - - - -  Le s s : B u d g e t A n a l y s i s A m o u n t ` On e T i m e E x p e n s e (1 , 4 2 4 , 5 6 6 ) (1 , 4 5 5 , 6 7 3 ) (1 , 4 9 1 , 4 5 7 ) (1 , 5 2 8 , 1 7 9 ) (1 , 5 6 5 , 8 6 8 ) (1 , 6 0 4 , 6 2 5 )  Ad d e d O & M Ge n e r a l I n f l a t i o n - - - - - - (1 , 4 2 4 , 5 6 6 ) $ (1 , 4 5 5 , 6 7 3 ) $ (1 , 4 9 1 , 4 5 7 ) $ (1 , 5 2 8 , 1 7 9 ) $ (1 , 5 6 5 , 8 6 8 ) $ (1 , 6 0 4 , 6 2 5 ) $ RA T E R E V E N U E S W I T H O U T I N C R E A S E S - F O R R E F E R E N C E FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 Co m m o d i t y U s a g e Cu s t o m e r D e m a n d G r o w t h 23 , 5 5 6 , 8 1 8 $ 25 , 9 0 7 , 3 1 0 $ 25 , 9 6 1 , 6 5 7 $ 26 , 0 5 9 , 1 8 5 $ 26 , 3 1 5 , 9 9 7 $ 26 , 5 8 5 , 5 6 3 $ Se w e r P r e - T r e a t Ge n e r a l I n f l a t i o n 12 , 0 0 0 $ 12 , 4 8 0 $ 12 , 7 9 2 13 , 1 1 2 13 , 4 4 0 13 , 7 7 6 Se w e r L a t e r a l s Ge n e r a l I n f l a t i o n - - - - - - Ot h e r C h a r g e s f o r S e r v i c e s Ge n e r a l I n f l a t i o n - - - - - - 23 , 5 6 8 , 8 1 8 $ 25 , 9 1 9 , 7 9 0 $ 25 , 9 7 4 , 4 4 9 $ 26 , 0 7 2 , 2 9 7 $ 26 , 3 2 9 , 4 3 7 $ 26 , 5 9 9 , 3 3 9 $ Pa g e 7 Feb. 11, 2025 Item #8 Page 64 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD APPENDIX B CAPITAL IMPROVEMENT PLAN Feb. 11, 2025 Item #8 Page 65 of 265 CI T Y O F C A R L S B A D Wa s t e w a t e r F i n a n c i a l M o d e l Ca p i t a l I m p r o v e m e n t P l a n SE W E R R E P L A C E M E N T P R O J E C T S FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 In c l u d e P r o j e c t I D Pr o j e c t T i t l e  34 9 2 2 V i s t a C a r l s b a d I n t e r c e p t o r - A g u a H e d i o n d a L S a n d F o r c e m a i n ( V C 1 2 - V C 1 3 ) 10 4 , 0 0 0 $ 75 , 0 0 0 $ 75 , 0 0 0 $ 75 , 0 0 0 -  35 7 2 3 O r i o n C e n t e r (3 , 7 7 8 , 5 0 0 ) (2 0 4 , 9 8 5 ) -  38 4 0 1 S e w e r L i f t S t a t i o n R e p a i r s a n d U p g r a d e s 15 0 , 0 0 0 15 0 , 0 0 0 15 0 , 0 0 0 15 0 , 0 0 0 15 0 , 0 0 0 15 0 , 0 0 0  39 5 0 2 V i s t a C a r l s b a d I n t e r c e p t o r - R e a c h V C 3 -  40 1 5 3 V i l l a g e a n d B a r r i o T r a f f i c C i r c l e s 50 0 , 0 0 0 -  55 0 1 1 B u e n a I n t e r c e p t o r S e w e r I m p r o v e m e n t s 1, 5 0 0 , 0 0 0 1, 5 0 0 , 0 0 0 2,9 5 0 , 0 0 0 3, 5 4 0 , 0 0 0 3, 5 4 0 , 0 0 0  55 0 3 1 S e w e r S y s t e m R e h a b i l i t a t i o n a n d R e p l a c e m e n t 2, 5 0 0 , 0 0 0 1, 8 5 0 , 0 0 0 1, 8 5 0 , 0 0 0 1,8 5 0 , 0 0 0 1, 8 5 0 , 0 0 0 2, 6 7 0 , 0 0 0  55 1 3 1 S e w e r C o n d i t i o n A s s e s s m e n t 10 0 , 0 0 0 10 0 , 0 0 0 10 0 , 0 0 0 10 0 , 0 0 0 10 0 , 0 0 0  55 2 0 1 O d o r a n d C o r r o s i o n P r e v e n t i o n P r o g r a m -  55 2 6 1 F o x e s L a n d i n g L i f t S t a t i o n W e t w e l l a n d P u m p R e p l a c e m e n t -  55 3 5 2 V i s t a C a r l s b a d I n t e r c e p t o r - B u e n a V i s t a L i f t S t a t i o n I m p r o v e m e n t s 85 , 7 0 0 35 , 0 0 0 50 , 0 0 0 10 0 , 0 0 0 10 0 , 0 0 0 12 0 , 0 0 0  55 3 6 1 N o r t h B a t i q u i t o s L i f t S t a t i o n F o r c e m a i n R e h a b i l i t a t i o n (1 2 5 , 0 0 0 ) -  55 3 7 1 B u e n a I n t e r c e p t o r S e w e r A c c e s s R o a d I m p r o v e m e n t s (6 5 0 , 0 0 0 ) (2 0 0 , 0 0 0 ) - 4 0 0 , 0 0 0 -  55 4 2 1 S C A D A I m p r o v e m e n t s 38 0 , 7 3 4 -  55 4 4 1 B u e n a I n t e r c e p t o r S e w e r R e a l i g n m e n t - E a s t S e g m e n t 40 0 , 0 0 0 80 0 , 0 0 0 3,6 0 0 , 0 0 0 1, 8 0 0 , 0 0 0 -  55 4 5 1 A g u a H e d i o n d a L i f t S t a t i o n B i o l o g i c a l M o n i t o r i n g a n d M a i n t e n a n c e -  55 4 7 1 N o r t h B a t i q u i t o s A c c e s s R o a d I m p r o v e m e n t 25 , 5 0 0 -  55 4 8 1 S e w e r L i n e C a p a c i t y I m p r o v e m e n t s 20 0 , 0 0 0 69 4 , 0 0 0 1, 0 5 7 , 0 0 0 -  55 4 9 1 V a l l e c i t o s I n t e r c e p t o r S e w e r C l e a n i n g a n d C C T V -  55 5 0 1 V i l l a s S e w e r L i f t S t a t i o n R e p l a c e m e n t 75 , 0 0 0 -  55 5 1 1 V i s t a C a r l s b a d I n t e r c e p t o r - R e h a b i l i t a t i o n ( V C 1 a n d V C 2 ) 90 , 0 0 0 70 , 0 0 0 12 0 , 0 0 0 -  55 5 2 1 C a n n o n R o a d L i f t S t a t i o n I m p r o v e m e n t s 50 , 0 0 0 -  55 5 4 1 C h i n q u a p i n L i f t S t a t i o n I m p r o v e m e n t s 92 0 , 0 0 0 -  55 5 5 1 V i s t a / C a r l s b a d I n t e r c e p t o r - P o i n t R e p a i r R e a c h e s ( V C 1 3 & V C 1 4 ) 1, 2 0 0 , 0 0 0 -  55 5 6 1 P o i n s e t t i a L i f t S t a t i o n R e h a b i l i t a t i o n 65 0 , 0 0 0 30 0 , 0 0 0 8, 0 0 0 , 0 0 0 -  58 0 1 1 E n c i n a C a p i t a l P r o j e c t s ( E W P C F ) 6, 2 7 7 , 6 0 0 8, 4 5 0 , 0 0 0 8, 0 0 2 , 5 0 0 7,7 5 7 , 2 0 0 7, 9 5 2 , 0 0 0 8, 5 2 8 , 8 0 0  60 5 4 4 T e r r a m a r A r e a C o a s t a l I m p r o v e m e n t s -  NE W V a l l e c i t o s L a n d O u t f a l l R e p l a c e m e n t - S e g m e n t B 20 0 , 0 0 0 20 0 , 0 0 0 20 0 , 0 0 0 5, 0 0 0 , 0 0 0 5, 0 0 0 , 0 0 0  Sp e n d D o w n o f A v a i l a b l e B a l a n c e 28 , 0 7 7 , 1 9 6  Ad j u s t f o r B u r n R a t e o n N e w A p p r o p r i a t i o n s - - - - - -  Pr o j e c t A d j u s t m e n t s F r o m D a s h b o a r d - - - - - - TO T A L S E W E R R E P L A C E M E N T P R O J E C T S 35 , 9 2 8 , 2 3 0 $ 15 , 0 4 8 , 0 1 5 $ 21 , 1 0 4 , 5 0 0 $ 17 , 0 8 2 , 2 0 0 $ 20 , 5 6 7 , 0 0 0 $ 20 , 1 0 8 , 8 0 0 $ 1 Ci t y o f C a r l s b a d A m o u n t ( t o t a l - E W A ) 6, 5 9 8 , 0 1 5 $ 13 , 1 0 2 , 0 0 0 $ 9,3 2 5 , 0 0 0 $ 12 , 6 1 5 , 0 0 0 $ 11 , 5 8 0 , 0 0 0 $ Pa g e 1 Feb. 11, 2025 Item #8 Page 66 of 265 CI T Y O F C A R L S B A D Wa s t e w a t e r F i n a n c i a l M o d e l Ca p i t a l I m p r o v e m e n t P l a n SU M M A R Y O F S E W E R R E P L A C E M E N T P R O J E C T S FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 UN E S C A L A T E D R& R 35 , 9 2 8 , 2 3 0 $ 15 , 0 4 8 , 0 1 5 $ 21 , 1 0 4 , 5 0 0 $ 17 , 0 8 2 , 2 0 0 $ 20 , 5 6 7 , 0 0 0 $ 20 , 1 0 8 , 8 0 0 $ Ex p a n s i o n - - - - - - TO T A L : 35 , 9 2 8 , 2 3 0 $ 15 , 0 4 8 , 0 1 5 $ 21 , 1 0 4 , 5 0 0 $ 17 , 0 8 2 , 2 0 0 $ 20 , 5 6 7 , 0 0 0 $ 20 , 1 0 8 , 8 0 0 $ ES C A L A T E D R& R 35 , 9 2 8 , 2 3 0 $ 15 , 3 4 8 , 9 7 5 $ 23 , 7 1 3 , 0 1 6 $ 19 , 8 6 5 , 3 3 5 $ 24 , 7 5 5 , 0 2 6 $ 25 , 0 5 0 , 6 4 6 $ Ex p a n s i o n - - - - - - TO T A L : 35 , 9 2 8 , 2 3 0 $ 15 , 3 4 8 , 9 7 5 $ 23 , 7 1 3 , 0 1 6 $ 19 , 8 6 5 , 3 3 5 $ 24 , 7 5 5 , 0 2 6 $ 25 , 0 5 0 , 6 4 6 $ SE W E R C O N N E C T I O N P R O J E C T S FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 In c l u d e P r o j e c t I D Pr o j e c t T i t l e  34 9 2 1 V i s t a C a r l s b a d I n t e r c e p t o r - A g u a H e d i o n d a L S a n d F o r c e m a i n ( V C 1 2 - V C 1 3 ) 22 0 , 0 0 0 $  38 8 6 1 V i s t a C a r l s b a d I n t e r c e p t o r - L a g o o n B r i d g e R e p l a c e m e n t ( V C 1 1 B )  39 4 9 1 V i s t a C a r l s b a d I n t e r c e p t o r - R e a c h V C 1 4 T o V C 1 5  39 5 0 1 V i s t a C a r l s b a d I n t e r c e p t o r - R e a c h V C 3 30 , 0 0 0 38 7 , 0 0 0 40 5 , 0 0 0  55 0 1 2 B u e n a I n t e r c e p t o r S e w e r I m p r o v e m e n t s - 5 0 0 , 0 0 0  55 0 4 1 S e w e r M o n i t o r i n g P r o g r a m ( C a p a c i t y ) 44 , 0 0 0 30 , 8 0 0  55 3 5 1 V i s t a C a r l s b a d I n t e r c e p t o r - B u e n a V i s t a L i f t S t a t i o n I m p r o v e m e n t s 67 , 0 0 0 67 , 0 0 0  55 3 9 1 F a r a d a y a n d E l C a m i n o R e a l S e w e r R e p l a c e m e n t - O r i o n t o P a l o m a r A i r p o r t R o a d 1, 1 0 0 , 0 0 0  55 4 0 1 L a s P a l m a s T r u n k S e w e r (2 5 5 , 0 0 0 ) - 8 0 0 , 0 0 0 2,0 0 0 , 0 0 0 3, 7 0 0 , 0 0 0  55 4 6 1 S e w e r M o d e l i n g (1 0 0 , 0 0 0 )  55 5 3 1 E l F u e r t e L i f t S t a t i o n P u m p A d d i t i o n 20 0 , 0 0 0 45 0 , 0 0 0  NE W V a l l e c i t o s L a n d O u t f a l l R e p l a c e m e n t - S e g m e n t B 40 , 0 0 0 40 , 0 0 0 40 , 0 0 0 1, 0 0 0 , 0 0 0 2, 0 0 0 , 0 0 0  PA 0 3 1 L o a n R e p a y - S e w e r C o n n t o S e w e r R e p l  Sp e n d D o w n o f A v a i l a b l e B a l a n c e 4, 3 0 4 , 9 3 1  Ad j u s t f o r B u r n R a t e o n N e w A p p r o p r i a t i o n s - - - - - -  Pr o j e c t A d j u s t m e n t s F r o m D a s h b o a r d - - - - - - TO T A L S E W E R C O N N E C T I O N P R O J E C T S 5,4 9 9 , 9 3 1 $ 1, 4 2 1 , 0 0 0 $ 1, 3 1 2 , 0 0 0 $ 2,1 0 7 , 0 0 0 $ 4, 7 0 0 , 0 0 0 $ 2,0 3 0 , 8 0 0 $ SU M M A R Y O F S E W E R C O N N E C T I O N P R O J E C T S FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 UN E S C A L A T E D R& R - $ - $ - $ - $ - $ - $ Ex p a n s i o n 5, 4 9 9 , 9 3 1 1, 4 2 1 , 0 0 0 1, 3 1 2 , 0 0 0 2,1 0 7 , 0 0 0 4, 7 0 0 , 0 0 0 2, 0 3 0 , 8 0 0 TO T A L : 5,4 9 9 , 9 3 1 $ 1, 4 2 1 , 0 0 0 $ 1, 3 1 2 , 0 0 0 $ 2,1 0 7 , 0 0 0 $ 4, 7 0 0 , 0 0 0 $ 2,0 3 0 , 8 0 0 $ ES C A L A T E D R& R - $ - $ - $ - $ - $ - $ Ex p a n s i o n 5, 4 9 9 , 9 3 1 1, 4 4 9 , 4 2 0 1, 4 7 4 , 1 6 3 2,4 5 0 , 2 8 5 5, 6 5 7 , 0 5 4 2, 5 2 9 , 8 8 0 TO T A L : 5,4 9 9 , 9 3 1 $ 1, 4 4 9 , 4 2 0 $ 1, 4 7 4 , 1 6 3 $ 2,4 5 0 , 2 8 5 $ 5, 6 5 7 , 0 5 4 $ 2,5 2 9 , 8 8 0 $ Pa g e 2 Feb. 11, 2025 Item #8 Page 67 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD APPENDIX C REVENUE REQUIREMENT ANALYSIS Feb. 11, 2025 Item #8 Page 68 of 265 20 2 4 20 2 5 20 2 6 20 2 7 20 2 8 20 2 9 CI T Y O F C A R L S B A D Wa s t e w a t e r F i n a n c i a l M o d e l Re v e n u e R e q u i r e m e n t FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 CA S H F L O W T E S T S RE V E N U E S Ra t e R e v e n u e s 23 , 5 5 6 , 8 1 8 $ 25 , 9 0 7 , 3 1 0 $ 29 , 5 9 6 , 2 9 0 $ 33 , 8 6 6 , 5 2 0 $ 38 , 9 8 8 , 3 1 0 $ 42 , 1 4 4 , 8 2 0 $ Ot h e r C h a r g e s f o r S e r v i c e s 12 , 0 0 0 12 , 4 8 0 12 , 7 9 2 13 , 1 1 2 13 , 4 4 0 13 , 7 7 6 Fi n e s a n d F o r f e i t u r e s 12 0 , 0 0 0 12 0 , 7 3 0 12 0 , 9 8 0 12 1 , 4 3 0 12 2 , 6 3 0 12 3 , 8 9 0 In c o m e f r o m P r o p e r t y & I n v e s t m e n t s 74 4 , 0 1 1 50 3 , 3 3 7 20 4 , 7 5 8 17 7 , 1 2 8 17 6 , 0 8 9 15 6 , 4 9 9 In t e r d e p a r t m e n t a l 12 0 , 0 0 0 12 4 , 8 0 0 12 7 , 9 2 0 13 1 , 1 2 0 13 4 , 4 0 0 13 7 , 7 6 0 Ot h e r R e v e n u e s 67 , 0 0 0 69 , 6 8 0 71 , 4 2 2 73 , 2 0 5 75 , 0 4 0 76 , 9 1 6 TO T A L R E V E N U E S 24 , 6 1 9 , 8 3 0 $ 26 , 7 3 8 , 3 3 7 $ 30 , 1 3 4 , 1 6 2 $ 34 , 3 8 2 , 5 1 5 $ 39 , 5 0 9 , 9 0 8 $ 42 , 6 5 3 , 6 6 1 $ EX P E N D I T U R E S On g o i n g O p e r a t i n g E x p e n s e s Pe r s o n n e l 3, 3 2 2 , 0 8 8 $ 3, 6 0 8 , 1 8 0 $ 3, 7 2 6 , 4 5 2 $ 3, 8 4 7 , 9 1 5 $ 3, 9 7 2 , 6 7 9 $ 4, 1 0 1 , 8 4 1 $ En c i n a O p e r a t i o n s 6, 0 0 0 , 0 0 0 6, 1 8 0 , 0 0 0 6, 3 6 5 , 4 0 0 6, 5 5 6 , 3 6 0 6, 7 5 3 , 0 5 0 6, 9 5 5 , 6 4 0 Ma i n t e n a n c e & E q u i p m e n t 4, 1 0 0 , 1 6 1 3, 9 8 1 , 4 0 0 4, 0 8 6 , 3 6 0 4, 1 9 4 , 1 8 7 4, 3 0 4 , 9 7 4 4, 4 1 8 , 7 7 5 Ca p i t a l O u t l a y 24 , 6 5 1 25 , 6 3 7 26 , 2 7 8 26 , 9 3 5 27 , 6 0 8 28 , 2 9 9 Re p l a c e m e n t F u n d i n g 10 , 0 9 0 , 1 1 3 - - - - - Tr a n s f e r O u t - D e b t S e r v i c e - - - - - - Ot h e r O p e r a t i n g E x p e n s e s On e - t i m e F u n d i n g (B u d g e t A n a l y s i s A m o u n t ) (1 , 4 2 4 , 5 6 6 ) (1 , 4 5 5 , 6 7 3 ) (1 , 4 9 1 , 4 5 7 ) (1 , 5 2 8 , 1 7 9 ) (1 , 5 6 5 , 8 6 8 ) (1 , 6 0 4 , 6 2 5 ) Ra t e F u n d e d C a p i t a l 2, 7 9 7 , 1 0 6 4, 5 9 4 , 3 7 9 14 , 8 6 8 , 0 9 6 12 , 6 1 5 , 2 2 7 21 , 1 3 0 , 7 2 1 21 , 2 7 7 , 7 3 3 De b t S e r v i c e - - - 2 9 3 , 7 4 9 29 3 , 7 4 9 29 3 , 7 4 9 To t a l O p e r a t i n g E x p e n d i t u r e s 24 , 9 0 9 , 5 5 2 $ 16 , 9 3 3 , 9 2 3 $ 27 , 5 8 1 , 1 2 9 $ 26 , 0 0 6 , 1 9 3 $ 34 , 9 1 6 , 9 1 3 $ 35 , 4 7 1 , 4 1 2 $ Po l i c y E x p e n d i t u r e s Re p l a c e m e n t F u n d i n g 5, 3 0 0 , 0 0 0 $ 5, 3 6 1 , 4 8 0 $ 5, 4 2 3 , 1 4 0 $ 5, 4 8 5 , 5 1 0 $ 5, 5 4 8 , 5 9 0 $ 5, 6 1 2 , 4 0 0 $ Tr a n s f e r s t o C a p i t a l F u n d - - - - - - Ad d i t i o n s t o M e e t M i n i m u m F u n d B a l a n c e s - - - - - - To t a l P o l i c y E x p e n d i t u r e s 5, 3 0 0 , 0 0 0 $ 5, 3 6 1 , 4 8 0 $ 5, 4 2 3 , 1 4 0 $ 5, 4 8 5 , 5 1 0 $ 5, 5 4 8 , 5 9 0 $ 5, 6 1 2 , 4 0 0 $ Pa g e 1 Feb. 11, 2025 Item #8 Page 69 of 265 20 2 4 20 2 5 20 2 6 20 2 7 20 2 8 20 2 9 CI T Y O F C A R L S B A D Wa s t e w a t e r F i n a n c i a l M o d e l Re v e n u e R e q u i r e m e n t FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 PO L I C Y O V E R R I D E S ( i n p u t i n D a s h b o a r d ) Re p l a c e m e n t F u n d i n g No O v e r r i d e N o O v e r r i d e N o O v e r r i d e N o O v e r r i d e N o O v e r r i d e N o O v e r r i d e Tr a n s f e r s t o C a p i t a l F u n d - $ - $ - $ - $ - $ - $ Ad d i t i o n s t o M e e t M i n i m u m F u n d B a l a n c e s ( * ) - $ - $ - $ - $ - $ - $ TO T A L E X P E N D I T U R E S 30 , 2 0 9 , 5 5 2 $ 22 , 2 9 5 , 4 0 3 $ 33 , 0 0 4 , 2 6 9 $ 31 , 4 9 1 , 7 0 3 $ 40 , 4 6 5 , 5 0 3 $ 41 , 0 8 3 , 8 1 2 $ CA S H F L O W S U R P L U S ( D E F I C I T ) (5 , 5 8 9 , 7 2 3 ) $ 4, 4 4 2 , 9 3 3 $ (2 , 8 7 0 , 1 0 7 ) $ 2, 8 9 0 , 8 1 2 $ (9 5 5 , 5 9 5 ) $ 1, 5 6 9 , 8 4 9 $ Pa g e 2 Feb. 11, 2025 Item #8 Page 70 of 265 20 2 4 20 2 5 20 2 6 20 2 7 20 2 8 20 2 9 CI T Y O F C A R L S B A D Wa s t e w a t e r F i n a n c i a l M o d e l Re v e n u e R e q u i r e m e n t FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 DE B T C O V E R A G E T E S T 1. 2 5 x Bo n d C o v e r a g e Ca l c u l a t i o n o f N e t R e v e n u e s Op e r a t i n g R e v e n u e s Us e r C h a r g e s 23 , 5 5 6 , 8 1 8 $ 25 , 9 0 7 , 3 1 0 $ 29 , 5 9 6 , 2 9 0 $ 33 , 8 6 6 , 5 2 0 $ 38 , 9 8 8 , 3 1 0 $ 42 , 1 4 4 , 8 2 0 $ Ot h e r / M i s c R e v e n u e s - E x c l u d e s I n t e r e s t E a r n i n g s 31 9 , 0 0 0 32 7 , 6 9 0 33 3 , 1 1 4 33 8 , 8 6 7 34 5 , 5 1 0 35 2 , 3 4 2 Ye s Co n n e c t i o n F e e s 47 1 , 4 3 8 $ 40 0 , 9 7 4 $ 32 8 , 8 9 6 $ 11 3 , 8 8 3 $ 20 4 , 3 6 8 $ 53 8 , 1 4 4 $ Ye s Gr a n t s - - - - - - Mo d e l e d I n t e r e s t E a r n i n g s Ye s Op e r a t i n g F u n d s 26 5 , 5 7 1 $ 21 1 , 2 2 6 $ 94 , 6 7 2 $ 90 , 4 4 8 $ 99 , 7 9 5 $ 11 9 , 6 9 3 $ Ye s Ca p i t a l F u n d s 47 8 , 4 4 0 29 2 , 1 1 1 11 0 , 0 8 6 86 , 6 8 0 76 , 2 9 4 36 , 8 0 6 To t a l R e v e n u e s I n c l u d e d i n T e s t 25 , 0 9 1 , 2 6 8 $ 27 , 1 3 9 , 3 1 1 $ 30 , 4 6 3 , 0 5 9 $ 34 , 4 9 6 , 3 9 8 $ 39 , 7 1 4 , 2 7 6 $ 43 , 1 9 1 , 8 0 4 $ Le s s : O p e r a t i n g E x p e n s e s (1 3 , 4 2 2 , 2 4 9 ) $ (1 3 , 7 6 9 , 5 8 0 ) $ (1 4 , 1 7 8 , 2 1 2 ) $ (1 4 , 5 9 8 , 4 6 2 ) $ (1 5 , 0 3 0 , 7 0 3 ) $ (1 5 , 4 7 6 , 2 5 6 ) $ Ne t O p e r a t i n g R e v e n u e s A v a i a b l e f o r D e b t S e r v i c e 11 , 6 6 9 , 0 1 9 $ 13 , 3 6 9 , 7 3 1 $ 16 , 2 8 4 , 8 4 7 $ 19 , 8 9 7 , 9 3 6 $ 24 , 6 8 3 , 5 7 3 $ 27 , 7 1 5 , 5 4 8 $ De b t S e r v i c e - $ - $ - $ 2 9 3 , 7 4 9 $ 29 3 , 7 4 9 $ 29 3 , 7 4 9 $ Co v e r a g e - - - 3 6 7 , 1 8 6 36 7 , 1 8 6 36 7 , 1 8 6 Su b t o t a l : D e b t S e r v i c e a n d C o v e r a g e - $ - $ - $ 6 6 0 , 9 3 5 $ 66 0 , 9 3 5 $ 66 0 , 9 3 5 $ BO N D C O V E R A G E S U R P L U S ( D E F I C I T ) 11 , 6 6 9 , 0 1 9 $ 13 , 3 6 9 , 7 3 1 $ 16 , 2 8 4 , 8 4 7 $ 19 , 2 3 7 , 0 0 2 $ 24 , 0 2 2 , 6 3 8 $ 27 , 0 5 4 , 6 1 4 $ Pa g e 3 Feb. 11, 2025 Item #8 Page 71 of 265 20 2 4 20 2 5 20 2 6 20 2 7 20 2 8 20 2 9 CI T Y O F C A R L S B A D Wa s t e w a t e r F i n a n c i a l M o d e l Re v e n u e R e q u i r e m e n t FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 RE V E N U E R E Q U I R E M E N T Re v e n u e R e q u i r e m e n t (5 , 5 8 9 , 7 2 3 ) $ 4, 4 4 2 , 9 3 3 $ (2 , 8 7 0 , 1 0 7 ) $ 2, 8 9 0 , 8 1 2 $ (9 5 5 , 5 9 5 ) $ 1, 5 6 9 , 8 4 9 $ Ca s h F l o w D r i v e n S u r p l u s C a s h F l o w D r i v e n S u r p l u s C a s h F l o w D r i v e n S u r p l u s Mo n t h o f i m p l e m e n t a t i o n Ja n u a r y J a n u a r y J a n u a r y J a n u a r y J a n u a r y J a n u a r y Ca l c u l a t e d I n c r e a s e ( % ) 47 . 4 6 % 0. 0 0 % 19 . 4 0 % 0. 0 0 % 4. 9 0 % 0. 0 0 % Ra t e I n c r e a s e O v e r r i d e ( I N P U T i n D a s h b o a r d ) 20 . 0 0 % 14 . 0 0 % 14 . 0 0 % 14 . 0 0 % 7. 0 0 % 7. 0 0 % Ra t e I n c r e a s e ( % ) 20 . 0 0 % 14 . 0 0 % 14 . 0 0 % 14 . 0 0 % 7. 0 0 % 7. 0 0 % Cu m u l a t i v e R a t e I n c r e a s e ( % ) 8 6 . 0 % 11 5 . 2 % 14 5 . 3 % 17 9 . 6 % 19 9 . 2 % 22 0 . 2 % SF R R a t e $5 1 . 7 4 $5 9 . 8 5 $6 8 . 2 2 $7 7 . 7 7 $8 3 . 2 2 $8 9 . 0 4 CA S H F L O W Re v e n u e s B e f o r e R a t e I n c r e a s e 24 , 6 1 9 , 8 3 0 $ 26 , 7 3 8 , 3 3 7 $ 30 , 1 3 4 , 1 6 2 $ 34 , 3 8 2 , 5 1 5 $ 39 , 5 0 9 , 9 0 8 $ 42 , 6 5 3 , 6 6 1 $ Re v e n u e s F r o m R a t e I n c r e a s e - 3 , 6 2 7 , 0 2 3 4, 1 4 3 , 4 8 1 4, 7 4 1 , 3 1 3 2, 7 2 9 , 1 8 2 2, 9 5 0 , 1 3 7 Le s s : R a t e I n c r e a s e D e l a y - ( 1 , 8 1 3 , 5 1 2 ) (2 , 0 7 1 , 7 4 0 ) (2 , 3 7 0 , 6 5 6 ) (1 , 3 6 4 , 5 9 1 ) (1 , 4 7 5 , 0 6 9 ) Le s s : A d j u s t m e n t f o r I m p l e m e n t a t i o n D e l a y (1 , 8 1 3 , 5 1 2 ) Le s s : E x p e n d i t u r e s (3 0 , 2 0 9 , 5 5 2 ) (2 2 , 2 9 5 , 4 0 3 ) (3 3 , 0 0 4 , 2 6 9 ) (3 1 , 4 9 1 , 7 0 3 ) (4 0 , 4 6 5 , 5 0 3 ) (4 1 , 0 8 3 , 8 1 2 ) Ca s h F l o w (5 , 5 8 9 , 7 2 3 ) $ 4, 4 4 2 , 9 3 3 $ (7 9 8 , 3 6 6 ) $ 5, 2 6 1 , 4 6 9 $ 40 8 , 9 9 6 $ 3, 0 4 4 , 9 1 8 $ RA T E R E V E N U E R E Q U I R E M E N T 23 , 5 5 6 , 8 1 8 $ 29 , 5 3 4 , 3 3 3 $ 33 , 7 3 9 , 7 7 1 $ 38 , 6 0 7 , 8 3 3 $ 41 , 7 1 7 , 4 9 2 $ 45 , 0 9 4 , 9 5 7 $ To t a l E n d i n g B a l a n c e 10 , 9 8 7 , 2 3 6 $ 9, 4 8 8 , 6 0 7 $ 8, 2 2 4 , 1 9 4 $ 9, 3 8 4 , 6 6 2 $ 6, 2 6 5 , 2 5 8 $ 9, 1 5 7 , 9 2 6 $ 16 1 d a y s 20 5 d a y s 10 9 d a y s 13 2 d a y s 65 d a y s 94 d a y s Op e r a t i n g F u n d Be g i n n i n g B a l a n c e 16 , 5 7 6 , 9 5 9 $ 4, 5 4 5 , 6 7 4 $ 4, 9 2 1 , 5 6 0 $ 4, 1 2 3 , 1 9 4 $ 5, 8 5 6 , 2 6 2 $ 6, 1 1 3 , 0 0 8 $ Ca s h F l o w (5 , 5 8 9 , 7 2 3 ) 4, 4 4 2 , 9 3 3 (7 9 8 , 3 6 6 ) 5, 2 6 1 , 4 6 9 40 8 , 9 9 6 3, 0 4 4 , 9 1 8 Tr a n s f e r s f r o m O p e r a t i n g t o C a p i t a l F u n d (6 , 4 4 1 , 5 6 2 ) (4 , 0 6 7 , 0 4 7 ) - ( 3 , 5 2 8 , 4 0 0 ) (1 5 2 , 2 4 9 ) (2 , 7 6 4 , 8 8 5 ) En d i n g O p e r a t i n g F u n d B a l a n c e 4, 5 4 5 , 6 7 4 $ 4, 9 2 1 , 5 6 0 $ 4, 1 2 3 , 1 9 4 $ 5, 8 5 6 , 2 6 2 $ 6, 1 1 3 , 0 0 8 $ 6, 3 9 3 , 0 4 1 $ Pa g e 4 Feb. 11, 2025 Item #8 Page 72 of 265 20 2 4 20 2 5 20 2 6 20 2 7 20 2 8 20 2 9 CI T Y O F C A R L S B A D Wa s t e w a t e r F i n a n c i a l M o d e l Re v e n u e R e q u i r e m e n t FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 Co v e r a g e T e s t s - P o s t R a t e I n c r e a s e Ca l c u l a t i o n o f N e t R e v e n u e s Op e r a t i n g R e v e n u e s Us e r C h a r g e s 23 , 5 5 6 , 8 1 8 $ 25 , 9 0 7 , 3 1 0 $ 31 , 6 6 8 , 0 3 0 $ 36 , 2 3 7 , 1 7 6 $ 40 , 3 5 2 , 9 0 1 $ 43 , 6 1 9 , 8 8 9 $ Ot h e r / M i s c R e v e n u e s 31 9 , 0 0 0 32 7 , 6 9 0 33 3 , 1 1 4 33 8 , 8 6 7 34 5 , 5 1 0 35 2 , 3 4 2 Ch a n g e s e l e c t i o n a b o v e Ye s Co n n e c t i o n F e e s 47 1 , 4 3 8 $ 40 0 , 9 7 4 $ 32 8 , 8 9 6 $ 11 3 , 8 8 3 $ 20 4 , 3 6 8 $ 53 8 , 1 4 4 $ Ye s Gr a n t s - - - - - - Mo d e l e d I n t e r e s t E a r n i n g s Ye s Op e r a t i n g F u n d s 26 5 , 5 7 1 $ 21 1 , 2 2 6 $ 94 , 6 7 2 $ 90 , 4 4 8 $ 99 , 7 9 5 $ 11 9 , 6 9 3 $ Ye s Ca p i t a l F u n d s 47 8 , 4 4 0 29 2 , 1 1 1 11 0 , 0 8 6 86 , 6 8 0 76 , 2 9 4 36 , 8 0 6 To t a l R e v e n u e s I n c l u d e d i n T e s t 25 , 0 9 1 , 2 6 8 $ 27 , 1 3 9 , 3 1 1 $ 32 , 5 3 4 , 7 9 9 $ 36 , 8 6 7 , 0 5 4 $ 41 , 0 7 8 , 8 6 7 $ 44 , 6 6 6 , 8 7 3 $ LE S S : O p e r a t i n g E x p e n s e s (1 3 , 4 2 2 , 2 4 9 ) $ (1 3 , 7 6 9 , 5 8 0 ) $ (1 4 , 1 7 8 , 2 1 2 ) $ (1 4 , 5 9 8 , 4 6 2 ) $ (1 5 , 0 3 0 , 7 0 3 ) $ (1 5 , 4 7 6 , 2 5 6 ) $ Ne t O p e r a t i n g R e v e n u e s A v a i l a b l e f o r D e b t S e r v i c e 1 1 , 6 6 9 , 0 1 9 $ 13 , 3 6 9 , 7 3 1 $ 18 , 3 5 6 , 5 8 7 $ 22 , 2 6 8 , 5 9 3 $ 26 , 0 4 8 , 1 6 4 $ 29 , 1 9 0 , 6 1 7 $ Ex i s t i n g D e b t T e s t - I n c l u d e s d e b t s e r v i c e o n l y f o r d e b t t h a t h a s b e e n i s s u e d a n d h a s b e e n i n p u t i n t o t h e m o d e l . Ne t O p e r a t i n g R e v e n u e s A v a i l a b l e f o r D e b t S e r v i c e 11 , 6 6 9 , 0 1 9 $ 13 , 3 6 9 , 7 3 1 $ 18 , 3 5 6 , 5 8 7 $ 22 , 2 6 8 , 5 9 3 $ 26 , 0 4 8 , 1 6 4 $ 29 , 1 9 0 , 6 1 7 $ LE S S : E x i s t i n g D e b t S e r v i c e - - - ( 2 9 3 , 7 4 9 ) (2 9 3 , 7 4 9 ) (2 9 3 , 7 4 9 ) Re v e n u e s A v a i l a b l e f o r C o v e r a g e 11 , 6 6 9 , 0 1 9 $ 13 , 3 6 9 , 7 3 1 $ 18 , 3 5 6 , 5 8 7 $ 21 , 9 7 4 , 8 4 4 $ 25 , 7 5 4 , 4 1 5 $ 28 , 8 9 6 , 8 6 8 $ Ex i s t i n g D e b t S e r v i c e C o v e r a g e R a t i o No E x i s t i n g D e b t N o E x i s t i n g D e b t N o E x i s t i n g D e b t 7 5 . 8 1 x 88 . 6 7 x 99 . 3 7 x To t a l D e b t T e s t - I n c l u d e s e x i sti n g a n d p r o j e c t e d d e b t . Ne t O p e r a t i n g R e v e n u e s A v a i l a b l e f o r D e b t S e r v i c e 11 , 6 6 9 , 0 1 9 $ 13 , 3 6 9 , 7 3 1 $ 18 , 3 5 6 , 5 8 7 $ 22 , 2 6 8 , 5 9 3 $ 26 , 0 4 8 , 1 6 4 $ 29 , 1 9 0 , 6 1 7 $ Le s s : E x i s t i n g D e b t S e r v i c e - - - ( 2 9 3 , 7 4 9 ) (2 9 3 , 7 4 9 ) (2 9 3 , 7 4 9 ) Le s s : P r o j e c t e d D e b t S e r v i c e - - - - - - Re v e n u e s A v a i l a b l e f o r C o v e r a g e 11 , 6 6 9 , 0 1 9 $ 13 , 3 6 9 , 7 3 1 $ 18 , 3 5 6 , 5 8 7 $ 21 , 9 7 4 , 8 4 4 $ 25 , 7 5 4 , 4 1 5 $ 28 , 8 9 6 , 8 6 8 $ To t a l D e b t S e r v i c e C o v e r a g e R a t i o No D e b t N o D e b t N o D e b t 7 5 . 8 1 x 88 . 6 7 x 99 . 3 7 x Pa g e 5 Feb. 11, 2025 Item #8 Page 73 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD APPENDIX D FUNCTIONAL ALLOCATION Feb. 11, 2025 Item #8 Page 74 of 265 CIT Y O F C A R L S A B A D Wa s t e w a t e r F i n a n c i a l M o d e l Fu n c t i o n a l A l l o c a t i o n TE S T Y E A R : FY E 2 0 2 5 AL L O C A T I O N I N D E X FY E 2 0 2 5 TR E A T M E N T F L O W B O D TS S C O L L E C T I O N F L O W A S A L L O T H E R S NO T E S Tr e a t m e n t F l o w / B O D / T S S 40 . 3 % 28 . 6 % 31 . 1 % 0.0 % 0. 0 % Se e " O p E x p f o r E n c i n a S e r v i c e s " t a b f o r b r e a k d o w n 50 P e r c e n t C u s t o m e r 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ad m i n 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % All o c a t i o n 4 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % All o c a t i o n 5 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % All o c a t i o n 6 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % All o c a t i o n 7 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Flo w O n l y 10 0 . 0 % 0.0 % 0.0 % 0.0 % 0. 0 % Cu s t o m e r O n l y 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Co l l e c t i o n s 5.0 % 5.0 % 90 . 0 % 0. 0 % St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % Ve h i c l e s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Un i f o r m s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Mi s c e l l a n e o u s P r o f e s s i o n a l S e r v i c e s - 7 4 9 0 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Mi s c e l l a n e o u s O u t s i d e S e r v i c e s - 7 5 5 0 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ca p i t a l I m p r o v e m e n t P l a n 13 . 6 % 12 . 6 % 13 . 6 % 60 . 2 % 0. 0 % We i g h t e d A v e r a g e O & M 26 . 6 % 20 . 6 % 22 . 3 % 30 . 5 % 0. 0 % We i g h e d A v e r a g e R e v e n u e R e q u i r e m e n t s 20 . 8 % 17 . 0 % 18 . 4 % 43 . 8 % 0. 0 % PL A N T I N S E R V I C E RC N L D TR E A T M E N T F L O W B O D TS S C O L L E C T I O N F L O W A S A L L O T H E R S NO T E S IM - I M P R O V E M E N T S 7,1 8 7 , 2 6 0 $ 10 0 . 0 % 0% JV - J O I N T V E N T U R E 52 , 5 8 4 , 2 1 4 40 . 3 % 28 . 6 % 31 . 1 % 0% LD - L A N D 2,6 2 9 , 1 0 2 10 0 % ME - M A C H I N E R Y & E Q U I P M E N T 80 6 , 0 7 3 10 0 % PP - P I P E S & P U M P I N G 70 , 9 2 7 , 4 5 9 5.0 % 5.0 % 90 . 0 % 0% Pl a n t - I n - S e r v i c e S u b T o t a l 13 4 , 1 3 4 , 1 0 7 $ 21 , 1 8 2 , 6 4 2 $ 18 , 5 8 8 , 2 6 5 $ 19 , 9 0 6 , 0 5 3 $ 71 , 0 2 1 , 9 7 3 $ 3, 4 3 5 , 1 7 5 $ Re a l l o c a t i o n o f " A s A l l O t h e r s " 55 6 , 7 4 6 $ 48 8 , 5 5 7 $ 52 3 , 1 9 3 $ 1, 8 6 6 , 6 7 8 $ (3 , 4 3 5 , 1 7 5 ) $ To t a l A l l o c a t i o n 13 4 , 1 3 4 , 1 0 7 $ 21 , 7 3 9 , 3 8 7 $ 19 , 0 7 6 , 8 2 3 $ 20 , 4 2 9 , 2 4 6 $ 72 , 8 8 8 , 6 5 1 $ - $ Pe r c e n t a g e A l l o c a t i o n 10 0 % 16 . 2 % 14 . 2 % 15 . 2 % 54 . 3 % 0.0 % Pa g e 1 Feb. 11, 2025 Item #8 Page 75 of 265 CIT Y O F C A R L S A B A D Wa s t e w a t e r F i n a n c i a l M o d e l Fu n c t i o n a l A l l o c a t i o n TE S T Y E A R : FY E 2 0 2 5 AL L O C A T I O N I N D E X FY E 2 0 2 5 TR E A T M E N T F L O W B O D TS S C O L L E C T I O N F L O W A S A L L O T H E R S NO T E S FY E 2 0 2 5 AL L O C A T I O N TR E A T M E N T F L O W B O D TS S C O L L E C T I O N F L O W A S A L L O T H E R S NO T E S EX P E N D I T U R E S Pe r s o n n e l Re g S a l a r i e s 2,2 1 5 , 9 2 0 $ St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % In c e n t i v e P a y - St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % Ha z a r d P a y 51 , 5 7 0 St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % IO D W o r k e r ' s C o m p - St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % Ov e r t i m e S a l a r i e s 67 , 6 0 0 St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % St a n d b y P a y 26 , 4 9 0 St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % Pa r t t i m e s S a l a r i e s - St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % In t e r n S a l a r i e s 3,7 9 0 St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % Te m p o r a r y H e l p - St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % He a l t h I n s u r a n c e 45 5 , 8 1 0 St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % Lif e I n s u r a n c e 1,5 0 0 St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % AD & D - C i t y P a i d 74 0 St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % Vis i o n I n s u r a n c e - St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % Me d i c a r e 33 , 4 2 0 St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % Ce l l P h o n e R e i m b u r s e m e n t - St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % Au t o A l l o w a n c e 1,1 8 0 St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % Ea r n e d L e a v e A c c r u a l - St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % He a l t h y E m p A w a r d s - St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % Fin a l V a c a t i o n P a y - St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % Fin a l S i c k L e a v e P a y - St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % Dis a b i l i t y 13 , 3 4 0 St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % Un e m p l o y m e n t 11 , 5 2 0 St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % Wo r k e r ' s C o m p e n s a t i o n 57 , 2 0 0 St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % PE R S 29 2 , 5 0 1 St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % PE R S U n f u n d e d L i a b E x p 37 5 , 5 9 8 St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % PE R S ( G A S B 6 8 C O N T R A A C C O U N T ) - St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % Op e r a t i o n E x p e n s e - St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % So c i a l S e c u r i t y - St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % De f e r r e d C o m p - St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % Ot h e r P e r s o n n e l - St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % Ma i n t e n a n c e & E q u i p m e n t Ot h e r M a c h & E q u i p - $ As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ve h i c l e R e n t a l s - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Mi s c R e n t a l s 10 , 4 0 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Mi s c L e a s e s - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Of f i c e E q u i p M a i n t - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Co m m u n i c a t i o n E q u i p M a i n t e n a n c e 1,0 4 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % So f t w a r e M a i n t e n a n c e 28 , 3 2 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Co m p u t e r M a i n t e n a n c e - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ve h i c l e M a i n t e n a n c e 15 , 6 0 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Wa s h a n d W a x 4,6 8 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Ot h e r E q u i p M a i n t - Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Pa g e 2 Feb. 11, 2025 Item #8 Page 76 of 265 CIT Y O F C A R L S A B A D Wa s t e w a t e r F i n a n c i a l M o d e l Fu n c t i o n a l A l l o c a t i o n TE S T Y E A R : FY E 2 0 2 5 AL L O C A T I O N I N D E X FY E 2 0 2 5 TR E A T M E N T F L O W B O D TS S C O L L E C T I O N F L O W A S A L L O T H E R S NO T E S Pi p e l i n e M a i n t e n a n c e 87 , 9 8 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Ro u t i n e B u i l d i n g M a i n t e n a n c e - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % As p h a l t R e p a i r s 10 , 4 0 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Ma i n t e n a n c e , R e p a i r a n d R e h a b 3,1 2 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Au d i t - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Le g a l - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ad m i n i s t r a t i v e - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Mi s c P r o f e s s i o n a l S e r v i c e s 43 3 , 9 7 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % En c i n a S e r v i c e s 6,1 8 0 , 0 0 0 Tr e a t m e n t F l o w / B O D / T S S 40 . 3 % 28 . 6 % 31 . 1 % 0.0 % 0. 0 % En c i n a S e r v i c e s ( P e n s i o n P a y o f f ) (2 8 1 , 7 5 0 ) Tr e a t m e n t F l o w / B O D / T S S 40 . 3 % 28 . 6 % 31 . 1 % 0.0 % 0. 0 % Mi s c e l l a n e o u s O u t s i d e S e r v i c e s 46 8 , 5 4 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ba n k S e r v i c e s 44 , 9 4 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Co m m A r t s S u p p o r t - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Re g u l a t o r y / P e r m i t t i n g F e e s 39 , 8 8 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Mi s c S e r v i c e s - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % La u n d r y a n d U n i f o r m M a i n t e a n c e 5,2 0 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % El e c t r i c a l / S C A D A S e r v i c e s 34 , 7 8 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Wa t e r S a m p l i n g S e r v i c e s - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % FO G I n s p e c t i o n S e r v i c e s 20 , 8 0 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Sm a r t c o v e r W I F I / A l a r m S e r v i c e s 52 , 0 0 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % La n d s c a p i n g S e r v i c e s 13 5 , 4 9 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ad s a n d P u b l i s h i n g 2,0 8 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Du e s a n d S u b s c r i p t i o n s 10 , 9 2 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Bo o k s a n d P u b l i c a t i o n s 52 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Au d i o V i s u a l M a t e r i a l s - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Pr i n t i n g 7,8 0 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Po s t a g e 4,6 8 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Of f i c e S u p p l i e s 5,2 0 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Of f i c e F u r n i t u r e & E q u i p m e n t 5,2 0 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Co m p u t e r S o f t w a r e 10 , 4 0 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Mi s c . C o m p u t e r H a r d w a r e 4,1 6 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Pr o m o M a t e r i a l s 5,2 0 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Fo o d E x p e n s e - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % He a t a n d L i g h t 32 2 , 9 7 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Te l e p h o n e & C o m m u n i c a t i o n s 12 , 4 8 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Wa s t e D i s p o a l S e r v i c e s 11 , 1 2 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Wa t e r 38 , 9 4 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Bu i l d i n g M a i n t e n a n c e - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % El e c t r i c a l S u p p l i e s 52 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Ja n i t o r i a l S u p p l i e s 31 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Pa r t s - V e h i c l e s 52 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Pa r t s - E q u i p 21 7 , 6 2 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Ro c k a n d M i n e r a l P r o d u c t s 4,1 6 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % As p h a l t 52 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Sm a l l T o o l s 1,5 6 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Sa f e t y E q u i p m e n t 22 , 6 2 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Un i f o r m s a n d A c c e s s o r i e s 5,2 0 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Me t e r s / F i t t i n g s - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Pe r s o n a l P r o t e c t i v e E q u i p m e n t - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ga s o l i n e a n d O i l 2,0 8 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Ch e m i c a l s 85 , 6 3 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Tr a i n i n g S u p p l i e s - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Me d i c a l S u p p l i e s - D i s p o s a b l e - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Mi s c S u p p l i e s 17 , 0 6 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Em p l o y e e T r a i n i n g 3,1 2 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Tu i t i o n R e i m b u r s e m e n t - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Pa g e 3 Feb. 11, 2025 Item #8 Page 77 of 265 CIT Y O F C A R L S A B A D Wa s t e w a t e r F i n a n c i a l M o d e l Fu n c t i o n a l A l l o c a t i o n TE S T Y E A R : FY E 2 0 2 5 AL L O C A T I O N I N D E X FY E 2 0 2 5 TR E A T M E N T F L O W B O D TS S C O L L E C T I O N F L O W A S A L L O T H E R S NO T E S Tr a i n i n g / T r a i n i n g R e l a t e d T r a v e l 4,6 8 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Co n f e r e n c e T r a v e l 3,3 0 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Mi s c . M e a l s / M i l e s 3,3 4 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ba d D e b t E x p - O t h e r I n v / B i l l s 20 , 8 0 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Dis p o s a l o f A s s e t s - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Re g O v e r / S h o r t - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % NE D R e n t a l A s s i s t a n c e P a y m e n t s - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % La t e r a l A s s i s t a n c e P r o g r a m 25 , 0 0 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Se t t l e m e n t s - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Co n t i n g e n c i e s - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ve h i c l e D i r e c t C h a r g e s 2,7 3 0 Ve h i c l e s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Ve h i c l e M a i n t e n a n c e ( 2 ) 14 4 , 5 2 0 Ve h i c l e s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Ve h i c l e R e p l a c e m e n t 18 6 , 7 6 0 Ve h i c l e s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Ge n e r a l L i a b 45 8 , 8 6 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % In f o r m a t i o n T e c h n o l o g i e s 33 5 , 8 7 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Mi s c I n t e r d e p a r t m e n t a l C h a r g e s 87 7 , 5 6 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Mi s C h g B a c k - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ut i l i t y B i l l i n g C h a r g e b a c k - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Fis c a l A g e n t F e e s - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ar b i t r a g e C o s t s - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Pr i n c i p a l - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % In t e r e s t E x p e n s e - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % In t E x p - C a p i t a l i z e d I n t e r e s t - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ot h e r - H e a t & L i g h t - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ot h e r - P a r t s & E q u i p m e n t - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ot h e r - S m a r t C o v e r s - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ad d t ' l M a i n t e n a n c e & E q u i p m e n t - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ot h e r M a i n t e n a n c e & E q u i p m e n t (1 , 4 5 5 , 6 7 3 ) [N o n - E n c i n a O & M ] 0.0 % 2.3 % 2.3 % 42 . 3 % 53 . 1 % Ca p i t a l O u t l a y Ca p i t a l O u t l a y < $ 1 0 k - N e w - $ Ca p i t a l I m p r o v e m e n t P l a n 13 . 6 % 12 . 6 % 13 . 6 % 60 . 2 % 0. 0 % Ca p i t a l O u t l a y < $ 1 0 k - R e p l - Ca p i t a l I m p r o v e m e n t P l a n 13 . 6 % 12 . 6 % 13 . 6 % 60 . 2 % 0. 0 % Ca p O u t l a y - V e h i c l e s 25 , 6 3 7 Ca p i t a l I m p r o v e m e n t P l a n 13 . 6 % 12 . 6 % 13 . 6 % 60 . 2 % 0. 0 % Co m p u t e r E q u i p > $ 1 0 k - R e p l - Ca p i t a l I m p r o v e m e n t P l a n 13 . 6 % 12 . 6 % 13 . 6 % 60 . 2 % 0. 0 % Of f i c e E q u i p m e n t - Ca p i t a l I m p r o v e m e n t P l a n 13 . 6 % 12 . 6 % 13 . 6 % 60 . 2 % 0. 0 % Ot h e r E q u i p m e n t - Ca p i t a l I m p r o v e m e n t P l a n 13 . 6 % 12 . 6 % 13 . 6 % 60 . 2 % 0. 0 % Of f i c e F u r n i t u r e - Ca p i t a l I m p r o v e m e n t P l a n 13 . 6 % 12 . 6 % 13 . 6 % 60 . 2 % 0. 0 % Ca p i t a l i z e d A s s e t s - Ca p i t a l I m p r o v e m e n t P l a n 13 . 6 % 12 . 6 % 13 . 6 % 60 . 2 % 0. 0 % Ot h e r C a p i t a l O u t l a y - Ca p i t a l I m p r o v e m e n t P l a n 13 . 6 % 12 . 6 % 13 . 6 % 60 . 2 % 0. 0 % Op e r a t i n g E x p e n d i t u r e s S u b T o t a l 12 , 3 3 9 , 5 4 5 $ 2, 3 7 9 , 5 0 2 $ 1, 8 4 1 , 0 4 8 $ 1, 9 8 9 , 1 1 3 $ 2, 7 2 6 , 3 1 9 $ 3, 4 0 3 , 5 6 2 $ Re a l l o c a t i o n o f " A s A l l O t h e r s " 90 6 , 3 1 1 $ 70 1 , 2 2 4 $ 75 7 , 6 1 9 $ 1, 0 3 8 , 4 0 8 $ (3 , 4 0 3 , 5 6 2 ) $ To t a l A l l o c a t i o n 12 , 3 3 9 , 5 4 5 $ 3, 2 8 5 , 8 1 4 $ 2, 5 4 2 , 2 7 2 $ 2, 7 4 6 , 7 3 2 $ 3, 7 6 4 , 7 2 7 $ - $ Pe r c e n t a g e A l l o c a t i o n 1 0 0 . 0 % 26 . 6 % 20 . 6 % 22 . 3 % 30 . 5 % Pa g e 4 Feb. 11, 2025 Item #8 Page 78 of 265 CIT Y O F C A R L S A B A D Wa s t e w a t e r F i n a n c i a l M o d e l Fu n c t i o n a l A l l o c a t i o n TE S T Y E A R : FY E 2 0 2 5 AL L O C A T I O N I N D E X FY E 2 0 2 5 TR E A T M E N T F L O W B O D TS S C O L L E C T I O N F L O W A S A L L O T H E R S NO T E S RA T E R E V E N U E R E Q U I R E M E N T FY E 2 0 2 5 AL L O C A T I O N TR E A T M E N T F L O W B O D TS S C O L L E C T I O N F L O W A S A L L O T H E R S NO T E S OP E R A T I N G E X P E N S E S ( f r o m a b o v e ) 12 , 3 3 9 , 5 4 5 $ 26 . 6 % 20 . 6 % 22 . 3 % 30 . 5 % 0. 0 % NO N - O P E R A T I N G E X P E N S E S Re p l a c e m e n t F u n d i n g ( D e p r e c i a t i o n ) 5,3 6 1 , 4 8 0 $ Ca p i t a l I m p r o v e m e n t P l a n 13 . 6 % 12 . 6 % 13 . 6 % 60 . 2 % 0. 0 % Ra t e F u n d e d C a p i t a l 4,5 9 4 , 3 7 9 Ca p i t a l I m p r o v e m e n t P l a n 13 . 6 % 12 . 6 % 13 . 6 % 60 . 2 % 0. 0 % De b t S e r v i c e - Ca p i t a l I m p r o v e m e n t P l a n 13 . 6 % 12 . 6 % 13 . 6 % 60 . 2 % 0. 0 % Tr a n s f e r s t o C a p i t a l F u n d - Ca p i t a l I m p r o v e m e n t P l a n 13 . 6 % 12 . 6 % 13 . 6 % 60 . 2 % 0. 0 % Re p l a c e m e n t F u n d i n g - Ca p i t a l I m p r o v e m e n t P l a n 13 . 6 % 12 . 6 % 13 . 6 % 60 . 2 % 0. 0 % Tr a n s f e r O u t - D e b t S e r v i c e - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ad j . t o R e f l e c t F u l l Y e a r I n c r e a s e 3,6 2 7 , 0 2 3 . 3 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % LE S S : O f f s e t t i n g R e v e n u e s Ov e r / U n d e r C o l l e c t i o n o f R e v e n u e s ( A v a i l a b l e f o r C a p i t a l o r R e s e r v e s ) 4,4 4 2 , 9 3 3 $ As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ot h e r C h a r g e s f o r S e r v i c e s (1 2 , 4 8 0 ) As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Fin e s a n d F o r f e i t u r e s (1 2 0 , 7 3 0 ) As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % In c o m e f r o m P r o p e r t y & I n v e s t m e n t s (5 0 3 , 3 3 7 ) As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % In t e r d e p a r t m e n t a l (1 2 4 , 8 0 0 ) As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ot h e r R e v e n u e s (6 9 , 6 8 0 ) As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % To t a l R a t e R e v e n u e s t o b e C o l l e c t e d 29 , 5 3 4 , 3 3 3 $ 4, 6 4 2 , 7 0 0 $ 3, 7 9 6 , 2 6 7 $ 4, 0 9 8 , 5 6 6 $ 9, 7 5 7 , 8 7 0 $ 7, 2 3 8 , 9 3 0 $ Re a l l o c a t i o n o f " A s A l l O t h e r s " 1, 5 0 7 , 4 0 4 $ 1, 2 3 2 , 5 8 2 $ 1, 3 3 0 , 7 3 3 $ 3, 1 6 8 , 2 1 1 $ (7 , 2 3 8 , 9 3 0 ) $ To t a l A l l o c a t i o n 29 , 5 3 4 , 3 3 3 $ 6, 1 5 0 , 1 0 4 $ 5, 0 2 8 , 8 4 8 $ 5, 4 2 9 , 3 0 0 $ 12 , 9 2 6 , 0 8 1 $ - $ Pe r c e n t a g e A l l o c a t i o n 10 0 % 20 . 8 % 17 . 0 % 18 . 4 % 43 . 8 % 0.0 % Ch e c k Ra t e R e v e n u e s f r o m R e v e n u e R e q u i r e m e n t 29 , 5 3 4 , 3 3 3 $ Ra t e R e v e n u e s f r o m F u n c t i o n a l A l l o c a t i o n 29 , 5 3 4 , 3 3 3 $ Dif f e r e n c e - $ UN I T C O S T C A L C U L A T I O N S TR E A T M E N T F L O W B O D TS S C O L L E C T I O N F L O W A S A L L O T H E R S cc f s lb s lb s lb s Am o u n t A l l o c a b l e t o C o n s t i t u e n t 6,1 5 0 , 1 0 4 $ 5, 0 2 8 , 8 4 8 $ 5, 4 2 9 , 3 0 0 $ 12 , 9 2 6 , 0 8 1 $ To t a l U n i t s 3, 1 3 8 , 6 9 6 7 , 0 8 5 , 7 6 3 8 , 3 9 7 , 9 9 2 3 , 1 3 8 , 6 9 6 PE R U N I T C O S T S 1. 9 5 9 $ 0. 7 1 0 $ 0. 6 4 6 $ 4. 1 1 8 $ Pa g e 5 Feb. 11, 2025 Item #8 Page 79 of 265 CI T Y O F C A R L S A B A D Wa s t e w a t e r F i n a n c i a l M o d e l St a f f A l l o c a t i o n TIT L E BA R G A I N I N G UN I T OR G . K E Y FT E AL L O C A T I O N RA N G E M I D - P O I N T FY 2 0 2 3 M I D - P T SA L A R Y / W A G E CO S T CM W D VE H I C L E U S E UN I F O R M TR E A T M E N T FL O W BO D TS S CO L L E C T I O N FL O W AS A L L O T H E R S TO T A L ** U t i l i t y L o c a t o r * * CC E A 51 1 6 3 1 0 0. 3 66 76 , 2 1 1 22 , 8 6 3 10 0 . 0 % 0. 0 % Ac c o u n t i n g T e c h n i c i a n CC E A 51 1 6 3 1 0 0. 1 47 63 , 1 2 8 6,3 1 3 10 0 . 0 % 0. 0 % Ad m i n i s t r a t i v e S e c r e t a r y CC E A 51 1 6 3 1 0 0. 3 43 60 , 6 1 1 18 , 1 8 3 10 0 . 0 % 0. 0 % As s e t M a n a g e m e n t P r o g r a m S p e c i a l i s t CC E A 51 1 6 3 1 0 0. 5 84 91 , 2 0 8 45 , 6 0 4 10 0 . 0 % 0. 0 % As s o c i a t e E n g i n e e r CC E A 51 1 6 3 1 0 0.3 5 98 10 4 , 8 1 1 36 , 6 8 4 10 0 . 0 % 0. 0 % BU Y E R / C O N T R A C T A D M I N I S T R A T O R CC E A 51 1 6 3 1 0 0. 2 63 74 , 0 0 6 14 , 8 0 1 10 0 . 0 % 0. 0 % En g i n e e r i n g T e c h n i c i a n I I CC E A 51 1 6 3 1 0 0.3 5 60 71 , 8 0 2 25 , 1 3 1 5.0 % 5.0 % 90 . 0 % 0. 0 % 10 0 . 0 % GIS A s s o c i a t e A n a l y s t CC E A 51 1 6 3 1 0 0.3 5 70 79 , 3 3 1 27 , 7 6 6 10 0 . 0 % 0. 0 % Ma n a g e m e n t A n a l y s t MG T 51 1 6 3 1 0 0. 2 89 , 1 0 8 17 , 8 2 2 10 0 . 0 % 0. 0 % Sa n i t a t i o n S y s t e m s O p e r a t o r I I CC E A 51 1 6 3 1 0 1 89 95 , 8 4 6 95 , 8 4 6 y y 5.0 % 5.0 % 90 . 0 % 0. 0 % 10 0 . 0 % Sa n i t a t i o n S y s t e m s O p e r a t o r I I CC E A 51 1 6 3 1 0 1 89 95 , 8 4 6 95 , 8 4 6 y y 5.0 % 5.0 % 90 . 0 % 0. 0 % 10 0 . 0 % Sa n i t a t i o n S y s t e m s O p e r a t o r I I I CC E A 51 1 6 3 1 0 1 10 3 11 0 , 1 7 8 11 0 , 1 7 8 y y 5.0 % 5.0 % 90 . 0 % 0. 0 % 10 0 . 0 % Sa n i t a t i o n S y s t e m s O p e r a t o r I I CC E A 51 1 6 3 1 0 1 89 95 , 8 4 6 95 , 8 4 6 y y 5.0 % 5.0 % 90 . 0 % 0. 0 % 10 0 . 0 % SE N I O R S C A D A & I M P L E M E N T A T I O N T E C H . 1 0 3 S E N I O R S T O R M D R A I N M A I N T . W O R K E R MG T 51 1 6 3 1 0 0.4 5 72 80 , 8 9 1 36 , 4 0 1 10 0 . 0 % 0. 0 % SC A D A & I M P L E M E N T A T I O N T e c h n i c i a n CC E A 51 1 6 3 1 0 1 98 10 4 , 8 1 1 10 4 , 8 1 1 10 0 . 0 % 0. 0 % Se c r e t a r y CC E A 51 1 6 3 1 0 0. 1 35 56 , 0 1 4 5,6 0 1 10 0 . 0 % 0. 0 % Se c r e t a r y CC E A 51 1 6 3 1 0 0. 5 35 56 , 0 1 4 28 , 0 0 7 10 0 . 0 % 0. 0 % Se n i o r E n g i n e e r MG T 51 1 6 3 1 0 0. 3 12 7 , 2 5 4 38 , 1 7 6 5.0 % 5.0 % 90 . 0 % 0. 0 % 10 0 . 0 % Se n i o r M a n a g e m e n t A n a l y s t MG T 51 1 6 3 1 0 0.2 5 10 8 , 5 6 0 27 , 1 4 0 10 0 . 0 % 0. 0 % Se n i o r O f f i c e S p e c i a l i s t CC E A 51 1 6 3 1 0 0. 3 27 51 , 7 0 9 15 , 5 1 3 10 0 . 0 % 0. 0 % AS S I S T A N T E N G I N E E R CC E A 51 1 6 3 1 0 0.3 5 82 89 , 3 9 8 31 , 2 8 9 5.0 % 5.0 % 90 . 0 % 0. 0 % 10 0 . 0 % Ut i l i t i e s D i r e c t o r MG T 51 1 6 3 1 0 0.3 5 19 3 , 4 6 5 67 , 7 1 3 10 0 . 0 % 0. 0 % Ut i l i t i e s E n g i n e e r i n g M a n a g e r MG T 51 1 6 3 1 0 0.3 5 16 6 , 3 9 2 58 , 2 3 7 5.0 % 5.0 % 90 . 0 % 0. 0 % 10 0 . 0 % Ut i l i t i e s M a i n t e n a n c e P l a n n e r MG T 51 1 6 3 1 0 0. 3 89 , 1 0 8 26 , 7 3 2 5.0 % 5.0 % 90 . 0 % 0. 0 % 10 0 . 0 % Ut i l i t i e s M a n a g e r MG T 51 1 6 3 1 0 0. 4 16 6 , 3 9 2 66 , 5 5 7 5.0 % 5.0 % 90 . 0 % 0. 0 % 10 0 . 0 % Ut i l i t i e s S e n i o r E n g i n e e r MG T 51 1 6 3 1 0 0.3 5 12 7 , 2 5 4 44 , 5 3 9 5.0 % 5.0 % 90 . 0 % 0. 0 % 10 0 . 0 % Ut i l i t i e s S e n i o r E n g i n e e r MG T 51 1 6 3 1 0 0.3 5 12 7 , 2 5 4 44 , 5 3 9 5.0 % 5.0 % 90 . 0 % 0. 0 % 10 0 . 0 % Ut i l i t i e s S u p e r i n t e n d e n t MG T 51 1 6 3 1 0 1 12 7 , 2 5 4 12 7 , 2 5 4 10 0 . 0 % 0. 0 % Ut i l i t i e s T e c h n i c a l S e r v i c e s M a n a g e r MG T 51 1 6 3 1 0 0. 5 14 2 , 9 2 1 71 , 4 6 1 10 0 . 0 % 0. 0 % Ut i l i t y W o r k e r I I CC E A 51 1 6 3 1 0 1 66 76 , 2 1 1 76 , 2 1 1 y y 5.0 % 5.0 % 90 . 0 % 0. 0 % 10 0 . 0 % Wa r e h o u s e T e c h n i c i a n CC E A 51 1 6 3 1 0 0. 3 43 60 , 6 1 1 18 , 1 8 3 y y 5.0 % 5.0 % 90 . 0 % 0. 0 % 10 0 . 0 % Wa s t e w a t e r U t i l i t y W o r k e r I - U F CC E A 51 1 6 3 1 0 1 54 67 , 6 8 3 67 , 6 8 3 y y 5.0 % 5.0 % 90 . 0 % 0. 0 % 10 0 . 0 % Wa s t e w a t e r U t i l i t y W o r k e r I I CC E A 5 1 1 6 3 1 0 1 66 76 , 2 1 1 76 , 2 1 1 y y 5.0 % 5 . 0 % 9 0 . 0 % 0. 0 % 1 0 0 . 0 % Wa s t e w a t e r U t i l i t y W o r k e r I I CC E A 51 1 6 3 1 0 1 66 76 , 2 1 1 76 , 2 1 1 y y 5.0 % 5.0 % 90 . 0 % 0. 0 % 10 0 . 0 % Wa s t e w a t e r U t i l i t y W o r k e r I I CC E A 51 1 6 3 1 0 1 66 76 , 2 1 1 76 , 2 1 1 y y 5.0 % 5.0 % 90 . 0 % 0. 0 % 10 0 . 0 % Wa s t e w a t e r U t i l i t y W o r k e r I I CC E A 51 1 6 3 1 0 1 66 76 , 2 1 1 76 , 2 1 1 y y 5.0 % 5.0 % 90 . 0 % 0. 0 % 10 0 . 0 % Wa s t e w a t e r U t i l i t y W o r k e r I I CC E A 51 1 6 3 1 0 1 66 76 , 2 1 1 76 , 2 1 1 y y 5.0 % 5.0 % 90 . 0 % 0. 0 % 10 0 . 0 % Wa s t e w a t e r U t i l i t y W o r k e r I I I CC E A 51 1 6 3 1 0 1 77 85 , 0 5 1 85 , 0 5 1 y y 5.0 % 5.0 % 90 . 0 % 0. 0 % 10 0 . 0 % Al l S t a f f A l l o c a t i o n 21 . 8 3, 5 9 3 , 2 3 9 $ 2, 0 3 5 , 0 3 9 $ - $ 68 , 0 5 5 $ 68 , 0 5 5 $ 1,2 2 4 , 9 9 2 $ 67 3 , 9 3 7 $ 2, 0 3 5 , 0 3 9 $ Re s u l t i n g A l l o c a t i o n 1 0 0 % 0. 0 % 3. 3 % 3. 3 % 60 . 2 % 33 . 1 % 10 0 % St a f f w i t h C M W D V e h i c l e U s e Ve h i c l e U s e U n i t s ( A s s u m e d e q u a l t o a l l o c a t e d F T E s ) - 0.6 2 0. 6 2 11 . 0 7 - 12 . 3 0 Ve h i c l e C o s t s A l l o c a t i o n 0. 0 % 5. 0 % 5.0 % 90 . 0 % 0.0 % 10 0 % FT E s w i t h U n i f o r m s Un i f o r m U n i t s ( A s s u m e d e q u a l t o a l l o c a t e d F T E s ) - 0.6 2 0. 6 2 11 . 0 7 - 12 . 3 0 Un i f o r m s C o s t A l l o c a t i o n 0. 0 % 5. 0 % 5.0 % 90 . 0 % 0.0 % 10 0 % No t e : T o t a l s a l a r y c o s t i n d i c a t e d h e r e i s b a s e d o n a s s u m i n g m i d p o i n t o f r a n g e f o r e a c h F T E a n d p o s i t i o n as a r e a s o n a b l e m e a n s o f a l l o c a t i n g c o s t s . T h i s n u m b e r i s n o t a d i r e c t m a t c h t o a c t u a l o r b u d g e t e d c o s t s wh i c h r e f l e c t e a c h s p e c i f i c s t a f f m e m b e r ' s a s s i g n e d c o m p e n s a t i o n l e v e l . Feb. 11, 2025 Item #8 Page 80 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD APPENDIX E RATE CALCULATIONS Feb. 11, 2025 Item #8 Page 81 of 265 CI T Y O F C A R L S A B A D Wa s t e w a t e r F i n a n c i a l M o d e l Cu s t o m e r A l l o c a t i o n & R a t e s FY E 2 0 2 5 PR O P O S E D Cu s t o m e r D a t a B i l l e d U n i t s S u m m a r y FY E 2 0 2 5 Un i t s ES T I M A T E D S E W E R F L O W S ( H C F ) 3, 1 3 8 , 6 9 6 ES T I M A T E D B O D D I S C H A R G E ( l b s ) 7, 0 8 5 , 7 6 3 ES T I M A T E D T S S D I S C H A R G E ( l b s ) 8, 3 9 7 , 9 9 2 CU S T O M E R A C C O U N T S 24 , 2 0 0 Al l o c a t e d R e v e n u e R e q u i r e m e n t s TR E A T M E N T F L O W B O D TS S CO L L E C T I O N F L O W TO T A L Ra t e R e v e n u e R e q u i r e d 6, 1 5 0 , 1 0 4 $ 5, 0 2 8 , 8 4 8 $ 5, 4 2 9 , 3 0 0 $ 12 , 9 2 6 , 0 8 1 $ 29 , 5 3 4 , 3 3 3 $ Un i t B a s i s f o r R a t e D e s i g n ES T I M A T E D S E W E R FL O W S ( H C F ) E S T I M A T E D B O D DI S C H A R G E ( l b s ) ES T I M A T E D T S S DI S C H A R G E ( l b s ) ES T I M A T E D S E W E R FL O W S ( H C F ) 20 2 5 U n i t s 3, 1 3 8 , 6 9 6 7, 0 8 5 , 7 6 3 8, 3 9 7 , 9 9 2 3, 1 3 8 , 6 9 6 20 2 5 U n i t C o s t $1 . 9 5 9 $0 . 7 1 0 $0 . 6 4 6 $4 . 1 1 8 pe r H C F pe r l b pe r l b pe r H C F Ra t e C l a s s U n i t C o s t s - P e r H C F D i s c h a r g e d BO D ( m g / l ) B O D ( $ / H C F ) T S S ( m g / l ) T S S ( $ / H C F ) F l o w ( $ / H C F ) To t a l $ P e r H C F D i s c h a r g e d GR O U P I - S F R & M i n i m u m C h a r g e s 30 1 $1 . 3 4 3 7 9 $1 . 5 3 $ 6 . 0 8 $8 . 9 4 GR O U P I - M F R / M o b i l e H o m e s 30 1 $1 . 3 4 3 7 9 $1 . 5 3 $ 6 . 0 8 $8 . 9 4 GR O U P I I - C o m m e r c i a l 2 19 6 $0 . 8 7 2 2 9 $0 . 9 2 $ 6 . 0 8 $7 . 8 7 GR O U P I I I - C o m m e r c i a l 3 49 5 $2 . 1 9 5 2 9 $2 . 1 3 $ 6 . 0 8 $1 0 . 4 0 GR O U P I V - C o m m e r c i a l 4 12 3 6 $5 . 4 7 1 2 9 0 $5 . 2 0 $ 6 . 0 8 $1 6 . 7 6 Ot h e r 0 $0 . 0 0 0 $0 . 0 0 $ 6 . 0 8 $6 . 0 8 Br e w e r y - B 2 19 0 6 $8 . 4 5 1 5 3 7 $6 . 2 0 $ 6 . 0 8 $2 0 . 7 3 Br e w e r y - B 3 12 3 6 $5 . 4 7 1 2 9 0 $5 . 2 0 $ 6 . 0 8 $1 6 . 7 6 Br e w e r y - B 4 24 2 6 $1 0 . 7 5 2 0 6 7 $8 . 3 4 $ 6 . 0 8 $2 5 . 1 7 GR O U P V I - L a r g e V o l u m e ( n o a c c o u n t s ) 12 1 $0 . 5 3 1 5 2 $0 . 6 1 $ 6 . 0 8 $7 . 2 2 In d u s t r i a l P r e t r e a t m e n t C l a s s I I I 45 0 $1 . 9 9 9 0 5 $3 . 6 5 $ 6 . 0 8 $1 1 . 7 2 In s t i t u t i o n a l 19 6 $0 . 8 7 1 9 0 $0 . 7 7 $ 6 . 0 8 $7 . 7 1 GR O U P V - E l e m e n t a r y S c h o o l s 19 6 $0 . 8 7 1 9 0 $0 . 7 7 $ 6 . 0 8 $7 . 7 1 GR O U P V - J u n i o r H i g h S c h o o l s 19 6 $0 . 8 7 1 9 0 $0 . 7 7 $ 6 . 0 8 $7 . 7 1 GR O U P V - H i g h S c h o o l s 19 6 $0 . 8 7 1 9 0 $0 . 7 7 $ 6 . 0 8 $7 . 7 1 GR O U P V - B o a r d i n g S c h o o l s 19 6 $0 . 8 7 1 9 0 $0 . 7 7 $ 6 . 0 8 $7 . 7 1 AL L O C A T I O N Y E A R : Feb. 11, 2025 Item #8 Page 82 of 265 CI T Y O F C A R L S A B A D Wa s t e w a t e r F i n a n c i a l M o d e l Cu s t o m e r A l l o c a t i o n & R a t e s GR O U P I - S F R & M i n i m u m C h a r g e s $8 . 9 4 1. 0 6. 6 9 $5 9 . 8 4 $5 9 . 8 5 SF R w i t h A D U $8 . 9 4 1. 5 10 . 0 4 $8 9 . 7 6 $8 9 . 7 7 GR O U P I - M F R / M o b i l e H o m e s $8 . 9 4 76 . 9 6 % $6 . 8 8 $6 . 8 9 GR O U P I I - C o m m e r c i a l 2 $7 . 8 7 76 . 9 6 % $6 . 0 6 $6 . 0 6 GR O U P I I I - C o m m e r c i a l 3 $1 0 . 4 0 76 . 9 6 % $8 . 0 1 $8 . 0 1 GR O U P I V - C o m m e r c i a l 4 $1 6 . 7 6 76 . 9 6 % $1 2 . 9 0 $1 2 . 9 0 Ot h e r $6 . 0 8 0.0 0 % $0 . 0 0 $0 . 0 0 Br e w e r y - B 2 $2 0 . 7 3 70 . 5 5 % $1 4 . 6 2 $1 4 . 6 3 Br e w e r y - B 3 $1 6 . 7 6 76 . 9 6 % $1 2 . 9 0 $1 2 . 9 0 Br e w e r y - B 4 $2 5 . 1 7 70 . 5 5 % $1 7 . 7 6 $1 7 . 7 6 GR O U P V I - L a r g e V o l u m e ( n o a c c o u n t s ) $7 . 2 2 76 . 9 6 % $5 . 5 6 $5 . 5 6 In d u s t r i a l P r e t r e a t m e n t C l a s s I I I $1 1 . 7 2 76 . 9 6 % $9 . 0 2 $9 . 0 3 In s t i t u t i o n a l $7 . 7 1 76 . 9 6 % $5 . 9 3 $5 . 9 4 In s t i t u t i o n a l R a t e s To t a l $ P e r H C F Di s c h a r g e d As s u m e d F l o w p e r St u d e n t ( g p d ) Ad j u s t m e n t f o r St u d e n t D a y s Ef f e c t i v e F l o w p e r St u d e n t ( H C F p e r Mo n t h ) Ca l c u l a t e d M o n t h l y R a t e (p e r S t u d e n t ) No R o u n d i n g Pr o p o s e d M o n t h l y R a t e (p e r S t u d e n t ) R o u n d e d GR O U P V - E l e m e n t a r y S c h o o l s $7 . 7 1 6. 8 4 55 % 0. 1 5 $1 . 1 8 $1 . 1 8 GR O U P V - J u n i o r H i g h S c h o o l s $7 . 7 1 10 . 2 6 55 % 0. 2 3 $1 . 7 6 $1 . 7 7 GR O U P V - H i g h S c h o o l s $7 . 7 1 13 . 6 8 55 % 0. 3 0 $2 . 3 5 $2 . 3 6 GR O U P V - B o a r d i n g S c h o o l s $7 . 7 1 38 . 1 8 10 0 % 1. 5 5 $1 1 . 9 7 $1 1 . 9 8 Ca l c u l a t e d M o n t h l y R a t e (p e r A c c o u n t o r D w e l l i n g Un i t ) No R o u n d i n g Ca l c u l a t e d M o n t h l y R a t e ( p e r H C F o f Wa t e r U s e d ) R o u n d e d Pr o p o s e d M o n t h l y R a t e ( p e r A c c o u n t or D w e l l i n g U n i t ) Ro u n d e d GR O U P I - S F R & M i n i m u m C h a r g e s Es t i m a t e d M o n t h l y Di s c h a r g e ( H C F ) To t a l $ P e r H C F Di s c h a r g e d ED U F l o w F a c t o r Di s c h a r g e B a s e d R a t e s To t a l $ P e r H C F Di s c h a r g e d Re t u r n t o S e w e r Fa c t o r Ca l c u l a t e d M o n t h l y R a t e (p e r A c c o u n t o r D w e l l i n g Un i t ) No R o u n d i n g Feb. 11, 2025 Item #8 Page 83 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD APPENDIX F PROJECTED FLOW AND LOADS Feb. 11, 2025 Item #8 Page 84 of 265 CI T Y O F C A R L S B A D Wa s t e w a t e r F i n a n c i a l M o d e l Cu s t o m e r D a t a P r o j e c t i o n NO T E FY E 2 0 2 2 F Y E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 ES T I M A T E D S E W E R F L O W S ( H C F ) GR O U P I - S F R & M i n i m u m C h a r g e s Ca l c u l a t e d S e w e r F l o w s S F R a n d D u p l e x w / M a s s B a l a n c e A d j u s t m e n t 1, 4 8 4 , 3 7 8 1,4 7 9 , 6 1 4 1 , 4 9 0 , 6 9 1 1 , 4 9 9 , 7 7 7 1 , 5 0 2 , 9 2 3 1 , 5 0 8 , 5 6 9 1 , 5 2 3 , 4 3 6 1 , 5 3 9 , 0 4 2 Ad d i t i o n a l B i l l e d D u e t o M i n i m u m C h a r g e s 30 5 , 5 3 4 30 4 , 5 5 3 3 0 6 , 8 3 3 3 0 8 , 7 0 4 3 0 9 , 3 5 1 3 1 0 , 5 1 3 3 1 3 , 5 7 3 3 1 6 , 7 8 5 GR O U P I - S F R & M i n i m u m C h a r g e s Ad j u s t e d t o R e f l e c t M i n i m u m C h a r g e s 1,7 8 9 , 9 1 2 1 , 7 8 4 , 1 6 7 1 , 7 9 7 , 5 2 5 1 , 8 0 8 , 4 8 1 1 , 8 1 2 , 2 7 5 1 , 8 1 9 , 0 8 3 1 , 8 3 7 , 0 1 0 1 , 8 5 5 , 8 2 7 GR O U P I - M F R / M o b i l e H o m e s 49 7 , 4 9 3 49 5 , 8 9 6 4 9 9 , 6 0 9 5 0 2 , 6 5 4 5 0 3 , 7 0 8 5 0 5 , 6 0 1 5 1 0 , 5 8 3 5 1 5 , 8 1 3 CO M M E R C I A L , C 1 In c l u d e d i n G r o u p I 0 0 0 0 0 0 0 0 GR O U P I I - C o m m e r c i a l 2 29 4 , 7 6 4 29 3 , 8 1 8 2 9 6 , 0 1 7 2 9 7 , 8 2 2 2 9 8 , 4 4 6 2 9 9 , 5 6 7 3 0 2 , 5 2 0 3 0 5 , 6 1 9 GR O U P I I I - C o m m e r c i a l 3 31 1 , 8 8 1 31 0 , 8 8 0 3 1 3 , 2 0 8 3 1 5 , 1 1 7 3 1 5 , 7 7 8 3 1 6 , 9 6 4 3 2 0 , 0 8 8 3 2 3 , 3 6 6 GR O U P I V - C o m m e r c i a l 4 15 3 , 8 5 7 15 3 , 3 6 3 1 5 4 , 5 1 1 1 5 5 , 4 5 3 1 5 5 , 7 7 9 1 5 6 , 3 6 4 1 5 7 , 9 0 5 1 5 9 , 5 2 3 Ot h e r 0 0 0 0 0 0 0 0 Br e w e r y - B 2 3,3 7 6 3, 3 6 6 3, 3 9 1 3,4 1 1 3, 4 1 9 3, 4 3 1 3,4 6 5 3, 5 0 1 Br e w e r y - B 3 7,6 4 9 7, 6 2 5 7, 6 8 2 7,7 2 8 7, 7 4 5 7, 7 7 4 7,8 5 0 7, 9 3 1 Br e w e r y - B 4 2,1 7 8 2, 1 7 2 2, 1 8 8 2,2 0 1 2, 2 0 6 2, 2 1 4 2,2 3 6 2, 2 5 9 GR O U P V I - L a r g e V o l u m e ( n o a c c o u n t s ) 0 0 0 0 0 0 0 0 In d u s t r i a l P r e t r e a t m e n t C l a s s I I I 6,9 6 0 6, 9 3 8 6, 9 9 0 7,0 3 3 7, 0 4 7 7, 0 7 4 7,1 4 3 7, 2 1 7 In s t i t u t i o n a l 52 3 52 2 52 6 52 9 53 0 53 2 53 7 54 3 GR O U P V - E l e m e n t a r y S c h o o l s 12 , 6 3 0 12 , 5 9 0 12 , 6 8 4 12 , 7 6 1 12 , 7 8 8 12 , 8 3 6 12 , 9 6 2 13 , 0 9 5 GR O U P V - J u n i o r H i g h S c h o o l s 7,3 8 6 7, 3 6 2 7, 4 1 7 7,4 6 3 7, 4 7 8 7, 5 0 6 7,5 8 0 7, 6 5 8 GR O U P V - H i g h S c h o o l s 14 , 5 0 5 14 , 4 5 8 14 , 5 6 7 14 , 6 5 5 14 , 6 8 6 14 , 7 4 1 14 , 8 8 7 15 , 0 3 9 GR O U P V - B o a r d i n g S c h o o l s 3,3 5 4 3, 3 4 3 3, 3 6 8 3,3 8 8 3, 3 9 5 3, 4 0 8 3,4 4 2 3, 4 7 7 To t a l E s t i m a t e d S e w e r F l o w s ( H C F ) 3, 1 0 6 , 4 7 0 3,0 9 6 , 4 9 8 3,1 1 9 , 6 8 1 3, 1 3 8 , 6 9 6 3, 1 4 5 , 2 8 0 3,1 5 7 , 0 9 6 3, 1 8 8 , 2 0 9 3, 2 2 0 , 8 6 7 ES T I M A T E D B O D D I S C H A R G E ( l b s ) GR O U P I - S F R & M i n i m u m C h a r g e s 2, 7 9 2 , 4 3 3 2,7 8 3 , 4 7 0 2 , 8 0 4 , 3 0 9 2 , 8 2 1 , 4 0 2 2 , 8 2 7 , 3 2 0 2 , 8 3 7 , 9 4 2 2 , 8 6 5 , 9 0 9 2 , 8 9 5 , 2 6 6 Ad d i t i o n a l B i l l e d D u e t o M i n i m u m C h a r g e s 57 4 , 7 7 5 57 2 , 9 3 0 5 7 7 , 2 1 9 5 8 0 , 7 3 7 5 8 1 , 9 5 6 5 8 4 , 1 4 2 5 8 9 , 8 9 9 5 9 5 , 9 4 1 GR O U P I - S F R & M i n i m u m C h a r g e s Ad j u s t e d t o R e f l e c t M i n i m u m C h a r g e s 3,3 6 7 , 2 0 8 3 , 3 5 6 , 4 0 0 3 , 3 8 1 , 5 2 8 3 , 4 0 2 , 1 3 9 3 , 4 0 9 , 2 7 6 3 , 4 2 2 , 0 8 3 3 , 4 5 5 , 8 0 8 3 , 4 9 1 , 2 0 7 GR O U P I - M F R / M o b i l e H o m e s 93 5 , 8 9 1 93 2 , 8 8 7 9 3 9 , 8 7 1 9 4 5 , 6 0 0 9 4 7 , 5 8 3 9 5 1 , 1 4 3 9 6 0 , 5 1 6 9 7 0 , 3 5 5 CO M M E R C I A L , C 1 In c l u d e d i n G r o u p I 0 0 0 0 0 0 0 0 GR O U P I I - C o m m e r c i a l 2 36 1 , 3 5 8 36 0 , 1 9 8 3 6 2 , 8 9 5 3 6 5 , 1 0 7 3 6 5 , 8 7 3 3 6 7 , 2 4 7 3 7 0 , 8 6 6 3 7 4 , 6 6 5 GR O U P I I I - C o m m e r c i a l 3 96 3 , 1 9 1 96 0 , 0 9 9 9 6 7 , 2 8 7 9 7 3 , 1 8 3 9 7 5 , 2 2 4 9 7 8 , 8 8 8 9 8 8 , 5 3 5 9 9 8 , 6 6 1 GR O U P I V - C o m m e r c i a l 4 1, 1 8 6 , 6 9 5 1,1 8 2 , 8 8 6 1 , 1 9 1 , 7 4 2 1 , 1 9 9 , 0 0 6 1 , 2 0 1 , 5 2 1 1 , 2 0 6 , 0 3 5 1 , 2 1 7 , 9 2 0 1 , 2 3 0 , 3 9 6 Ot h e r 0 0 0 0 0 0 0 0 Br e w e r y - B 2 40 , 1 8 0 40 , 0 5 1 40 , 3 5 1 40 , 5 9 7 40 , 6 8 2 40 , 8 3 5 41 , 2 3 7 41 , 6 5 9 Br e w e r y - B 3 58 , 9 9 7 58 , 8 0 8 59 , 2 4 8 59 , 6 0 9 59 , 7 3 5 59 , 9 5 9 60 , 5 5 0 61 , 1 7 0 Br e w e r y - B 4 32 , 9 9 1 32 , 8 8 5 33 , 1 3 1 33 , 3 3 3 33 , 4 0 3 33 , 5 2 8 33 , 8 5 9 34 , 2 0 6 GR O U P V I - L a r g e V o l u m e ( n o a c c o u n t s ) 0 0 0 0 0 0 0 0 In d u s t r i a l P r e t r e a t m e n t C l a s s I I I 19 , 5 4 6 19 , 4 8 3 19 , 6 2 9 19 , 7 4 9 19 , 7 9 0 19 , 8 6 5 20 , 0 6 1 20 , 2 6 6 In s t i t u t i o n a l 64 0 63 8 64 3 64 7 64 8 65 1 65 7 66 4 GR O U P V - E l e m e n t a r y S c h o o l s 15 , 4 4 4 15 , 3 9 4 15 , 5 1 0 15 , 6 0 4 15 , 6 3 7 15 , 6 9 6 15 , 8 5 0 16 , 0 1 3 GR O U P V - J u n i o r H i g h S c h o o l s 9,0 3 2 9, 0 0 3 9, 0 7 0 9,1 2 5 9, 1 4 4 9, 1 7 9 9,2 6 9 9, 3 6 4 GR O U P V - H i g h S c h o o l s 17 , 7 3 7 17 , 6 8 0 17 , 8 1 2 17 , 9 2 1 17 , 9 5 8 18 , 0 2 6 18 , 2 0 3 18 , 3 9 0 GR O U P V - B o a r d i n g S c h o o l s 4,1 0 1 4, 0 8 8 4, 1 1 8 4,1 4 3 4, 1 5 2 4, 1 6 8 4,2 0 9 4, 2 5 2 To t a l B O D D i s c h a r g e ( l b s ) 7, 0 1 3 , 0 1 0 6,9 9 0 , 4 9 9 7,0 4 2 , 8 3 4 7, 0 8 5 , 7 6 3 7, 1 0 0 , 6 2 7 7,1 2 7 , 3 0 1 7, 1 9 7 , 5 4 0 7, 2 7 1 , 2 6 8 Feb. 11, 2025 Item #8 Page 85 of 265 CI T Y O F C A R L S B A D Wa s t e w a t e r F i n a n c i a l M o d e l Cu s t o m e r D a t a P r o j e c t i o n NO T E FY E 2 0 2 2 F Y E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 ES T I M A T E D T S S D I S C H A R G E ( l b s ) GR O U P I - S F R & M i n i m u m C h a r g e s 3, 5 1 4 , 5 8 0 3,5 0 3 , 2 9 9 3 , 5 2 9 , 5 2 7 3 , 5 5 1 , 0 4 1 3 , 5 5 8 , 4 9 0 3 , 5 7 1 , 8 5 8 3 , 6 0 7 , 0 5 8 3 , 6 4 4 , 0 0 7 Ad d i t i o n a l B i l l e d D u e t o M i n i m u m C h a r g e s 72 3 , 4 1 6 72 1 , 0 9 4 7 2 6 , 4 9 3 7 3 0 , 9 2 1 7 3 2 , 4 5 4 7 3 5 , 2 0 6 7 4 2 , 4 5 1 7 5 0 , 0 5 7 GR O U P I - S F R & M i n i m u m C h a r g e s Ad j u s t e d t o R e f l e c t M i n i m u m C h a r g e s 4,2 3 7 , 9 9 7 4 , 2 2 4 , 3 9 3 4 , 2 5 6 , 0 2 0 4 , 2 8 1 , 9 6 2 4 , 2 9 0 , 9 4 4 4 , 3 0 7 , 0 6 4 4 , 3 4 9 , 5 1 0 4 , 3 9 4 , 0 6 3 GR O U P I - M F R / M o b i l e H o m e s 1, 1 7 7 , 9 2 0 1,1 7 4 , 1 3 9 1 , 1 8 2 , 9 2 9 1 , 1 9 0 , 1 4 0 1 , 1 9 2 , 6 3 6 1 , 1 9 7 , 1 1 7 1 , 2 0 8 , 9 1 4 1 , 2 2 1 , 2 9 8 CO M M E R C I A L , C 1 In c l u d e d i n G r o u p I 0 0 0 0 0 0 0 0 GR O U P I I - C o m m e r c i a l 2 42 0 , 6 8 8 41 9 , 3 3 8 4 2 2 , 4 7 7 4 2 5 , 0 5 2 4 2 5 , 9 4 4 4 2 7 , 5 4 4 4 3 1 , 7 5 7 4 3 6 , 1 8 0 GR O U P I I I - C o m m e r c i a l 3 1, 0 2 9 , 7 2 0 1,0 2 6 , 4 1 5 1 , 0 3 4 , 0 9 9 1 , 0 4 0 , 4 0 2 1 , 0 4 2 , 5 8 5 1 , 0 4 6 , 5 0 1 1 , 0 5 6 , 8 1 5 1 , 0 6 7 , 6 4 0 GR O U P I V - C o m m e r c i a l 4 1, 2 3 8 , 5 8 3 1,2 3 4 , 6 0 7 1 , 2 4 3 , 8 5 0 1 , 2 5 1 , 4 3 2 1 , 2 5 4 , 0 5 7 1 , 2 5 8 , 7 6 8 1 , 2 7 1 , 1 7 3 1 , 2 8 4 , 1 9 4 Ot h e r 0 0 0 0 0 0 0 0 Br e w e r y - B 2 32 , 3 8 8 32 , 2 8 4 32 , 5 2 6 32 , 7 2 4 32 , 7 9 3 32 , 9 1 6 33 , 2 4 0 33 , 5 8 1 Br e w e r y - B 3 61 , 5 7 7 61 , 3 7 9 61 , 8 3 9 62 , 2 1 6 62 , 3 4 6 62 , 5 8 1 63 , 1 9 7 63 , 8 4 5 Br e w e r y - B 4 28 , 1 1 1 28 , 0 2 1 28 , 2 3 1 28 , 4 0 3 28 , 4 6 3 28 , 5 7 0 28 , 8 5 1 29 , 1 4 7 GR O U P V I - L a r g e V o l u m e ( n o a c c o u n t s ) 0 0 0 0 0 0 0 0 In d u s t r i a l P r e t r e a t m e n t C l a s s I I I 39 , 3 2 4 39 , 1 9 8 39 , 4 9 2 39 , 7 3 2 39 , 8 1 6 39 , 9 6 5 40 , 3 5 9 40 , 7 7 2 In s t i t u t i o n a l 62 0 61 8 62 2 62 6 62 7 63 0 63 6 64 3 GR O U P V - E l e m e n t a r y S c h o o l s 14 , 9 5 2 14 , 9 0 4 15 , 0 1 6 15 , 1 0 7 15 , 1 3 9 15 , 1 9 6 15 , 3 4 6 15 , 5 0 3 GR O U P V - J u n i o r H i g h S c h o o l s 8,7 4 4 8, 7 1 6 8, 7 8 1 8,8 3 5 8, 8 5 3 8, 8 8 6 8,9 7 4 9, 0 6 6 GR O U P V - H i g h S c h o o l s 17 , 1 7 2 17 , 1 1 7 17 , 2 4 5 17 , 3 5 0 17 , 3 8 6 17 , 4 5 2 17 , 6 2 4 17 , 8 0 4 GR O U P V - B o a r d i n g S c h o o l s 3,9 7 0 3, 9 5 7 3, 9 8 7 4,0 1 1 4, 0 2 0 4, 0 3 5 4,0 7 5 4, 1 1 6 To t a l T S S D i s c h a r g e ( l b s ) 8, 3 1 1 , 7 6 6 8,2 8 5 , 0 8 7 8,3 4 7 , 1 1 4 8, 3 9 7 , 9 9 2 8, 4 1 5 , 6 0 9 8,4 4 7 , 2 2 4 8, 5 3 0 , 4 7 1 8, 6 1 7 , 8 5 2 CU S T O M E R A C C O U N T S GR O U P I - S F R & M i n i m u m C h a r g e s 21 , 6 2 0 21 , 5 5 0 21 , 7 1 2 21 , 8 4 4 21 , 8 9 0 21 , 9 7 2 22 , 1 8 9 22 , 4 1 6 GR O U P I - M F R / M o b i l e H o m e s 77 6 77 4 77 9 78 4 78 6 78 9 79 6 80 5 CO M M E R C I A L , C 1 In c l u d e d i n G r o u p I 0 0 0 0 0 0 0 0 GR O U P I I - C o m m e r c i a l 2 1,0 9 1 1, 0 8 7 1, 0 9 6 1,1 0 2 1, 1 0 5 1, 1 0 9 1,1 2 0 1, 1 3 1 GR O U P I I I - C o m m e r c i a l 3 24 4 24 3 24 5 24 7 24 7 24 8 25 0 25 3 GR O U P I V - C o m m e r c i a l 4 16 5 16 4 16 6 16 7 16 7 16 8 16 9 17 1 Ot h e r 0 0 0 0 0 0 0 0 Br e w e r y - B 2 7 7 7 7 7 7 7 7 Br e w e r y - B 3 12 12 12 12 12 12 12 12 Br e w e r y - B 4 4 4 4 4 4 4 4 4 GR O U P V I - L a r g e V o l u m e ( n o a c c o u n t s ) 0 0 0 0 0 0 0 0 In d u s t r i a l P r e t r e a t m e n t C l a s s I I I 1 1 1 1 1 1 1 1 In s t i t u t i o n a l 3 3 3 3 3 3 3 3 GR O U P V - E l e m e n t a r y S c h o o l s 20 20 20 20 20 20 21 21 GR O U P V - J u n i o r H i g h S c h o o l s 4 4 4 4 4 4 4 4 GR O U P V - H i g h S c h o o l s 4 4 4 4 4 4 4 4 GR O U P V - B o a r d i n g S c h o o l s 1 1 1 1 1 1 1 1 To t a l A c c o u n t s 23 , 9 5 2 23 , 8 7 5 24 , 0 5 4 24 , 2 0 0 24 , 2 5 1 24 , 3 4 2 24 , 5 8 2 24 , 8 3 4 Feb. 11, 2025 Item #8 Page 86 of 265 CI T Y O F C A R L S B A D Wa s t e w a t e r F i n a n c i a l M o d e l Cu s t o m e r D a t a P r o j e c t i o n NO T E FY E 2 0 2 2 F Y E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 SF R & M I N I M U M C H A R G E S GR O U P I - S F R & M i n i m u m C h a r g e s 21 , 6 2 0 21 , 5 5 0 21 , 7 1 2 21 , 8 4 4 21 , 8 9 0 21 , 9 7 2 22 , 1 8 9 22 , 4 1 6 Ad d i t i o n a l B i l l e d D u e t o M i n i m u m C h a r g e s M o n t h l y 67 3 67 1 67 6 68 0 68 1 68 4 69 1 69 8 To t a l M i n i m u m C h a r g e s ( M o n t h l y ) 22 , 2 9 3 22 , 2 2 1 22 , 3 8 8 22 , 5 2 4 22 , 5 7 1 22 , 6 5 6 22 , 8 7 9 23 , 1 1 4 -0 . 3 2 1 % 0.7 4 9 % 0. 6 1 0 % 0. 2 1 0 % BI L L E D / E S T I M A T E D W A T E R U S E ( H C F ) GR O U P I - S F R & M i n i m u m C h a r g e s 0 0 0 0 0 0 0 0 GR O U P I - M F R / M o b i l e H o m e s 64 6 , 4 2 6 64 4 , 3 5 1 6 4 9 , 1 7 5 6 5 3 , 1 3 2 6 5 4 , 5 0 2 6 5 6 , 9 6 1 6 6 3 , 4 3 5 6 7 0 , 2 3 1 CO M M E R C I A L , C 1 0 0 0 0 0 0 0 0 GR O U P I I - C o m m e r c i a l 2 38 3 , 0 0 6 38 1 , 7 7 7 3 8 4 , 6 3 5 3 8 6 , 9 7 9 3 8 7 , 7 9 1 3 8 9 , 2 4 8 3 9 3 , 0 8 4 3 9 7 , 1 1 1 GR O U P I I I - C o m m e r c i a l 3 40 5 , 2 4 8 40 3 , 9 4 7 4 0 6 , 9 7 1 4 0 9 , 4 5 2 4 1 0 , 3 1 1 4 1 1 , 8 5 2 4 1 5 , 9 1 1 4 2 0 , 1 7 1 GR O U P I V - C o m m e r c i a l 4 19 9 , 9 1 7 19 9 , 2 7 5 2 0 0 , 7 6 7 2 0 1 , 9 9 1 2 0 2 , 4 1 4 2 0 3 , 1 7 5 2 0 5 , 1 7 7 2 0 7 , 2 7 9 Ot h e r 0 0 0 0 0 0 0 0 Br e w e r y - B 2 4,7 8 6 4, 7 7 1 4, 8 0 6 4,8 3 6 4, 8 4 6 4, 8 6 4 4,9 1 2 4, 9 6 2 Br e w e r y - B 3 9,9 3 9 9, 9 0 7 9, 9 8 1 10 , 0 4 2 10 , 0 6 3 10 , 1 0 1 10 , 2 0 1 10 , 3 0 5 Br e w e r y - B 4 3,0 8 8 3, 0 7 8 3, 1 0 1 3,1 2 0 3, 1 2 7 3, 1 3 8 3,1 6 9 3, 2 0 2 GR O U P V I - L a r g e V o l u m e ( n o a c c o u n t s ) 0 0 0 0 0 0 0 0 In d u s t r i a l P r e t r e a t m e n t C l a s s I I I 9,0 4 4 9, 0 1 5 9, 0 8 2 9,1 3 8 9, 1 5 7 9, 1 9 1 9,2 8 2 9, 3 7 7 In s t i t u t i o n a l 68 0 67 8 68 3 68 7 68 9 69 1 69 8 70 5 GR O U P V - E l e m e n t a r y S c h o o l s 0 0 0 0 0 0 0 0 GR O U P V - J u n i o r H i g h S c h o o l s 0 0 0 0 0 0 0 0 GR O U P V - H i g h S c h o o l s 0 0 0 0 0 0 0 0 GR O U P V - B o a r d i n g S c h o o l s 0 0 0 0 0 0 0 0 To t a l A c c o u n t s 1, 6 6 2 , 1 3 4 1,6 5 6 , 7 9 8 1 , 6 6 9 , 2 0 2 1 , 6 7 9 , 3 7 7 1 , 6 8 2 , 8 9 9 1 , 6 8 9 , 2 2 2 1 , 7 0 5 , 8 6 9 1 , 7 2 3 , 3 4 3 NU M B E R O F S T U D E N T S GR O U P V - E l e m e n t a r y S c h o o l s 6,9 0 5 6, 8 8 3 6, 9 3 4 6,9 7 7 6, 9 9 1 7, 0 1 8 7,0 8 7 7, 1 5 9 GR O U P V - J u n i o r H i g h S c h o o l s 2,6 9 2 2, 6 8 3 2, 7 0 3 2,7 2 0 2, 7 2 6 2, 7 3 6 2,7 6 3 2, 7 9 1 GR O U P V - H i g h S c h o o l s 3,9 6 5 3, 9 5 2 3, 9 8 2 4,0 0 6 4, 0 1 5 4, 0 3 0 4,0 6 9 4, 1 1 1 GR O U P V - B o a r d i n g S c h o o l s 18 0 17 9 18 1 18 2 18 2 18 3 18 5 18 7 Feb. 11, 2025 Item #8 Page 87 of 265 2025 WASTEWATER COST-OF-SERVICE STUDY JANUARY 2025 / FINAL / CAROLLO CITY OF CARLSBAD APPENDIX G PROJECTIONS FOR ALTERNATIVE OPTION Feb. 11, 2025 Item #8 Page 88 of 265 CIT Y O F C A R L S A B A D Wa s t e w a t e r F i n a n c i a l M o d e l - A l t e r n a t i v e O p t i o n W i t h B o n d s Fu n c t i o n a l A l l o c a t i o n TE S T Y E A R : FY E 2 0 2 5 AL L O C A T I O N I N D E X FY E 2 0 2 5 TR E A T M E N T F L O W B O D TS S C O L L E C T I O N F L O W A S A L L O T H E R S NO T E S Tr e a t m e n t F l o w / B O D / T S S 40 . 3 % 28 . 6 % 31 . 1 % 0.0 % 0. 0 % Se e " O p E x p f o r E n c i n a S e r v i c e s " t a b f o r b r e a k d o w n 50 P e r c e n t C u s t o m e r 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ad m i n 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % All o c a t i o n 4 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % All o c a t i o n 5 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % All o c a t i o n 6 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % All o c a t i o n 7 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Flo w O n l y 10 0 . 0 % 0.0 % 0.0 % 0.0 % 0. 0 % Cu s t o m e r O n l y 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Co l l e c t i o n s 5.0 % 5.0 % 90 . 0 % 0. 0 % St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % Ve h i c l e s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Un i f o r m s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Mi s c e l l a n e o u s P r o f e s s i o n a l S e r v i c e s - 7 4 9 0 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Mi s c e l l a n e o u s O u t s i d e S e r v i c e s - 7 5 5 0 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ca p i t a l I m p r o v e m e n t P l a n 13 . 6 % 12 . 6 % 13 . 6 % 60 . 2 % 0. 0 % We i g h t e d A v e r a g e O & M 26 . 6 % 20 . 6 % 22 . 3 % 30 . 5 % 0. 0 % We i g h e d A v e r a g e R e v e n u e R e q u i r e m e n t s 20 . 8 % 17 . 0 % 18 . 4 % 43 . 8 % 0. 0 % PL A N T I N S E R V I C E RC N L D TR E A T M E N T F L O W B O D TS S C O L L E C T I O N F L O W A S A L L O T H E R S NO T E S IM - I M P R O V E M E N T S 7,1 8 7 , 2 6 0 $ 10 0 . 0 % 0% JV - J O I N T V E N T U R E 52 , 5 8 4 , 2 1 4 40 . 3 % 28 . 6 % 31 . 1 % 0% LD - L A N D 2,6 2 9 , 1 0 2 10 0 % ME - M A C H I N E R Y & E Q U I P M E N T 80 6 , 0 7 3 10 0 % PP - P I P E S & P U M P I N G 70 , 9 2 7 , 4 5 9 5.0 % 5.0 % 90 . 0 % 0% Pl a n t - I n - S e r v i c e S u b T o t a l 13 4 , 1 3 4 , 1 0 7 $ 21 , 1 8 2 , 6 4 2 $ 18 , 5 8 8 , 2 6 5 $ 19 , 9 0 6 , 0 5 3 $ 71 , 0 2 1 , 9 7 3 $ 3, 4 3 5 , 1 7 5 $ Re a l l o c a t i o n o f " A s A l l O t h e r s " 55 6 , 7 4 6 $ 48 8 , 5 5 7 $ 52 3 , 1 9 3 $ 1, 8 6 6 , 6 7 8 $ (3 , 4 3 5 , 1 7 5 ) $ To t a l A l l o c a t i o n 13 4 , 1 3 4 , 1 0 7 $ 21 , 7 3 9 , 3 8 7 $ 19 , 0 7 6 , 8 2 3 $ 20 , 4 2 9 , 2 4 6 $ 72 , 8 8 8 , 6 5 1 $ - $ Pe r c e n t a g e A l l o c a t i o n 10 0 % 16 . 2 % 14 . 2 % 15 . 2 % 54 . 3 % 0.0 % Pa g e 1 Feb. 11, 2025 Item #8 Page 89 of 265 CIT Y O F C A R L S A B A D Wa s t e w a t e r F i n a n c i a l M o d e l - A l t e r n a t i v e O p t i o n W i t h B o n d s Fu n c t i o n a l A l l o c a t i o n TE S T Y E A R : FY E 2 0 2 5 AL L O C A T I O N I N D E X FY E 2 0 2 5 TR E A T M E N T F L O W B O D TS S C O L L E C T I O N F L O W A S A L L O T H E R S NO T E S FY E 2 0 2 5 AL L O C A T I O N TR E A T M E N T F L O W B O D TS S C O L L E C T I O N F L O W A S A L L O T H E R S NO T E S EX P E N D I T U R E S Pe r s o n n e l Re g S a l a r i e s 2,2 1 5 , 9 2 0 $ St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % In c e n t i v e P a y - St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % Ha z a r d P a y 51 , 5 7 0 St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % IO D W o r k e r ' s C o m p - St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % Ov e r t i m e S a l a r i e s 67 , 6 0 0 St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % St a n d b y P a y 26 , 4 9 0 St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % Pa r t t i m e s S a l a r i e s - St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % In t e r n S a l a r i e s 3,7 9 0 St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % Te m p o r a r y H e l p - St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % He a l t h I n s u r a n c e 45 5 , 8 1 0 St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % Lif e I n s u r a n c e 1,5 0 0 St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % AD & D - C i t y P a i d 74 0 St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % Vis i o n I n s u r a n c e - St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % Me d i c a r e 33 , 4 2 0 St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % Ce l l P h o n e R e i m b u r s e m e n t - St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % Au t o A l l o w a n c e 1,1 8 0 St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % Ea r n e d L e a v e A c c r u a l - St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % He a l t h y E m p A w a r d s - St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % Fin a l V a c a t i o n P a y - St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % Fin a l S i c k L e a v e P a y - St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % Dis a b i l i t y 13 , 3 4 0 St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % Un e m p l o y m e n t 11 , 5 2 0 St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % Wo r k e r ' s C o m p e n s a t i o n 57 , 2 0 0 St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % PE R S 29 2 , 5 0 1 St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % PE R S U n f u n d e d L i a b E x p 37 5 , 5 9 8 St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % PE R S ( G A S B 6 8 C O N T R A A C C O U N T ) - St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % Op e r a t i o n E x p e n s e - St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % So c i a l S e c u r i t y - St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % De f e r r e d C o m p - St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % Ot h e r P e r s o n n e l - St a f f A l l o c a t i o n 0.0 % 3.3 % 3.3 % 60 . 2 % 33 . 1 % Ma i n t e n a n c e & E q u i p m e n t Ot h e r M a c h & E q u i p - $ As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ve h i c l e R e n t a l s - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Mi s c R e n t a l s 10 , 4 0 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Mi s c L e a s e s - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Of f i c e E q u i p M a i n t - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Co m m u n i c a t i o n E q u i p M a i n t e n a n c e 1,0 4 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % So f t w a r e M a i n t e n a n c e 28 , 3 2 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Co m p u t e r M a i n t e n a n c e - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ve h i c l e M a i n t e n a n c e 15 , 6 0 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Wa s h a n d W a x 4,6 8 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Ot h e r E q u i p M a i n t - Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Pa g e 2 Feb. 11, 2025 Item #8 Page 90 of 265 CIT Y O F C A R L S A B A D Wa s t e w a t e r F i n a n c i a l M o d e l - A l t e r n a t i v e O p t i o n W i t h B o n d s Fu n c t i o n a l A l l o c a t i o n TE S T Y E A R : FY E 2 0 2 5 AL L O C A T I O N I N D E X FY E 2 0 2 5 TR E A T M E N T F L O W B O D TS S C O L L E C T I O N F L O W A S A L L O T H E R S NO T E S Pi p e l i n e M a i n t e n a n c e 87 , 9 8 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Ro u t i n e B u i l d i n g M a i n t e n a n c e - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % As p h a l t R e p a i r s 10 , 4 0 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Ma i n t e n a n c e , R e p a i r a n d R e h a b 3,1 2 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Au d i t - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Le g a l - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ad m i n i s t r a t i v e - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Mi s c P r o f e s s i o n a l S e r v i c e s 43 3 , 9 7 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % En c i n a S e r v i c e s 6,1 8 0 , 0 0 0 Tr e a t m e n t F l o w / B O D / T S S 40 . 3 % 28 . 6 % 31 . 1 % 0.0 % 0. 0 % En c i n a S e r v i c e s ( P e n s i o n P a y o f f ) (2 8 1 , 7 5 0 ) Tr e a t m e n t F l o w / B O D / T S S 40 . 3 % 28 . 6 % 31 . 1 % 0.0 % 0. 0 % Mi s c e l l a n e o u s O u t s i d e S e r v i c e s 46 8 , 5 4 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ba n k S e r v i c e s 44 , 9 4 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Co m m A r t s S u p p o r t - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Re g u l a t o r y / P e r m i t t i n g F e e s 39 , 8 8 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Mi s c S e r v i c e s - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % La u n d r y a n d U n i f o r m M a i n t e a n c e 5,2 0 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % El e c t r i c a l / S C A D A S e r v i c e s 34 , 7 8 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Wa t e r S a m p l i n g S e r v i c e s - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % FO G I n s p e c t i o n S e r v i c e s 20 , 8 0 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Sm a r t c o v e r W I F I / A l a r m S e r v i c e s 52 , 0 0 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % La n d s c a p i n g S e r v i c e s 13 5 , 4 9 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ad s a n d P u b l i s h i n g 2,0 8 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Du e s a n d S u b s c r i p t i o n s 10 , 9 2 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Bo o k s a n d P u b l i c a t i o n s 52 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Au d i o V i s u a l M a t e r i a l s - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Pr i n t i n g 7,8 0 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Po s t a g e 4,6 8 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Of f i c e S u p p l i e s 5,2 0 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Of f i c e F u r n i t u r e & E q u i p m e n t 5,2 0 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Co m p u t e r S o f t w a r e 10 , 4 0 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Mi s c . C o m p u t e r H a r d w a r e 4,1 6 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Pr o m o M a t e r i a l s 5,2 0 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Fo o d E x p e n s e - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % He a t a n d L i g h t 32 2 , 9 7 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Te l e p h o n e & C o m m u n i c a t i o n s 12 , 4 8 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Wa s t e D i s p o a l S e r v i c e s 11 , 1 2 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Wa t e r 38 , 9 4 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Bu i l d i n g M a i n t e n a n c e - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % El e c t r i c a l S u p p l i e s 52 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Ja n i t o r i a l S u p p l i e s 31 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Pa r t s - V e h i c l e s 52 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Pa r t s - E q u i p 21 7 , 6 2 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Ro c k a n d M i n e r a l P r o d u c t s 4,1 6 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % As p h a l t 52 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Sm a l l T o o l s 1,5 6 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Sa f e t y E q u i p m e n t 22 , 6 2 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Un i f o r m s a n d A c c e s s o r i e s 5,2 0 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Me t e r s / F i t t i n g s - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Pe r s o n a l P r o t e c t i v e E q u i p m e n t - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ga s o l i n e a n d O i l 2,0 8 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Ch e m i c a l s 85 , 6 3 0 Co l l e c t i o n s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Tr a i n i n g S u p p l i e s - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Me d i c a l S u p p l i e s - D i s p o s a b l e - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Mi s c S u p p l i e s 17 , 0 6 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Em p l o y e e T r a i n i n g 3,1 2 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Tu i t i o n R e i m b u r s e m e n t - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Pa g e 3 Feb. 11, 2025 Item #8 Page 91 of 265 CIT Y O F C A R L S A B A D Wa s t e w a t e r F i n a n c i a l M o d e l - A l t e r n a t i v e O p t i o n W i t h B o n d s Fu n c t i o n a l A l l o c a t i o n TE S T Y E A R : FY E 2 0 2 5 AL L O C A T I O N I N D E X FY E 2 0 2 5 TR E A T M E N T F L O W B O D TS S C O L L E C T I O N F L O W A S A L L O T H E R S NO T E S Tr a i n i n g / T r a i n i n g R e l a t e d T r a v e l 4,6 8 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Co n f e r e n c e T r a v e l 3,3 0 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Mi s c . M e a l s / M i l e s 3,3 4 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ba d D e b t E x p - O t h e r I n v / B i l l s 20 , 8 0 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Dis p o s a l o f A s s e t s - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Re g O v e r / S h o r t - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % NE D R e n t a l A s s i s t a n c e P a y m e n t s - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % La t e r a l A s s i s t a n c e P r o g r a m 25 , 0 0 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Se t t l e m e n t s - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Co n t i n g e n c i e s - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ve h i c l e D i r e c t C h a r g e s 2,7 3 0 Ve h i c l e s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Ve h i c l e M a i n t e n a n c e ( 2 ) 14 4 , 5 2 0 Ve h i c l e s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Ve h i c l e R e p l a c e m e n t 18 6 , 7 6 0 Ve h i c l e s 0.0 % 5.0 % 5.0 % 90 . 0 % 0. 0 % Ge n e r a l L i a b 45 8 , 8 6 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % In f o r m a t i o n T e c h n o l o g i e s 33 5 , 8 7 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Mi s c I n t e r d e p a r t m e n t a l C h a r g e s 87 7 , 5 6 0 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Mi s C h g B a c k - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ut i l i t y B i l l i n g C h a r g e b a c k - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Fis c a l A g e n t F e e s - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ar b i t r a g e C o s t s - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Pr i n c i p a l - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % In t e r e s t E x p e n s e - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % In t E x p - C a p i t a l i z e d I n t e r e s t - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ot h e r - H e a t & L i g h t - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ot h e r - P a r t s & E q u i p m e n t - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ot h e r - S m a r t C o v e r s - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ad d t ' l M a i n t e n a n c e & E q u i p m e n t - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ot h e r M a i n t e n a n c e & E q u i p m e n t (1 , 4 5 5 , 6 7 3 ) [N o n - E n c i n a O & M ] 0.0 % 2.3 % 2.3 % 42 . 3 % 53 . 1 % Ca p i t a l O u t l a y Ca p i t a l O u t l a y < $ 1 0 k - N e w - $ Ca p i t a l I m p r o v e m e n t P l a n 13 . 6 % 12 . 6 % 13 . 6 % 60 . 2 % 0. 0 % Ca p i t a l O u t l a y < $ 1 0 k - R e p l - Ca p i t a l I m p r o v e m e n t P l a n 13 . 6 % 12 . 6 % 13 . 6 % 60 . 2 % 0. 0 % Ca p O u t l a y - V e h i c l e s 25 , 6 3 7 Ca p i t a l I m p r o v e m e n t P l a n 13 . 6 % 12 . 6 % 13 . 6 % 60 . 2 % 0. 0 % Co m p u t e r E q u i p > $ 1 0 k - R e p l - Ca p i t a l I m p r o v e m e n t P l a n 13 . 6 % 12 . 6 % 13 . 6 % 60 . 2 % 0. 0 % Of f i c e E q u i p m e n t - Ca p i t a l I m p r o v e m e n t P l a n 13 . 6 % 12 . 6 % 13 . 6 % 60 . 2 % 0. 0 % Ot h e r E q u i p m e n t - Ca p i t a l I m p r o v e m e n t P l a n 13 . 6 % 12 . 6 % 13 . 6 % 60 . 2 % 0. 0 % Of f i c e F u r n i t u r e - Ca p i t a l I m p r o v e m e n t P l a n 13 . 6 % 12 . 6 % 13 . 6 % 60 . 2 % 0. 0 % Ca p i t a l i z e d A s s e t s - Ca p i t a l I m p r o v e m e n t P l a n 13 . 6 % 12 . 6 % 13 . 6 % 60 . 2 % 0. 0 % Ot h e r C a p i t a l O u t l a y - Ca p i t a l I m p r o v e m e n t P l a n 13 . 6 % 12 . 6 % 13 . 6 % 60 . 2 % 0. 0 % Op e r a t i n g E x p e n d i t u r e s S u b T o t a l 12 , 3 3 9 , 5 4 5 $ 2, 3 7 9 , 5 0 2 $ 1, 8 4 1 , 0 4 8 $ 1, 9 8 9 , 1 1 3 $ 2, 7 2 6 , 3 1 9 $ 3, 4 0 3 , 5 6 2 $ Re a l l o c a t i o n o f " A s A l l O t h e r s " 90 6 , 3 1 1 $ 70 1 , 2 2 4 $ 75 7 , 6 1 9 $ 1, 0 3 8 , 4 0 8 $ (3 , 4 0 3 , 5 6 2 ) $ To t a l A l l o c a t i o n 12 , 3 3 9 , 5 4 5 $ 3, 2 8 5 , 8 1 4 $ 2, 5 4 2 , 2 7 2 $ 2, 7 4 6 , 7 3 2 $ 3, 7 6 4 , 7 2 7 $ - $ Pe r c e n t a g e A l l o c a t i o n 1 0 0 . 0 % 26 . 6 % 20 . 6 % 22 . 3 % 30 . 5 % Pa g e 4 Feb. 11, 2025 Item #8 Page 92 of 265 CIT Y O F C A R L S A B A D Wa s t e w a t e r F i n a n c i a l M o d e l - A l t e r n a t i v e O p t i o n W i t h B o n d s Fu n c t i o n a l A l l o c a t i o n TE S T Y E A R : FY E 2 0 2 5 AL L O C A T I O N I N D E X FY E 2 0 2 5 TR E A T M E N T F L O W B O D TS S C O L L E C T I O N F L O W A S A L L O T H E R S NO T E S RA T E R E V E N U E R E Q U I R E M E N T FY E 2 0 2 5 AL L O C A T I O N TR E A T M E N T F L O W B O D TS S C O L L E C T I O N F L O W A S A L L O T H E R S NO T E S OP E R A T I N G E X P E N S E S ( f r o m a b o v e ) 12 , 3 3 9 , 5 4 5 $ 26 . 6 % 20 . 6 % 22 . 3 % 30 . 5 % 0. 0 % NO N - O P E R A T I N G E X P E N S E S Re p l a c e m e n t F u n d i n g ( D e p r e c i a t i o n ) 5,3 6 1 , 4 8 0 $ Ca p i t a l I m p r o v e m e n t P l a n 13 . 6 % 12 . 6 % 13 . 6 % 60 . 2 % 0. 0 % Ra t e F u n d e d C a p i t a l 4,5 9 4 , 3 7 9 Ca p i t a l I m p r o v e m e n t P l a n 13 . 6 % 12 . 6 % 13 . 6 % 60 . 2 % 0. 0 % De b t S e r v i c e - Ca p i t a l I m p r o v e m e n t P l a n 13 . 6 % 12 . 6 % 13 . 6 % 60 . 2 % 0. 0 % Tr a n s f e r s t o C a p i t a l F u n d - Ca p i t a l I m p r o v e m e n t P l a n 13 . 6 % 12 . 6 % 13 . 6 % 60 . 2 % 0. 0 % Re p l a c e m e n t F u n d i n g - Ca p i t a l I m p r o v e m e n t P l a n 13 . 6 % 12 . 6 % 13 . 6 % 60 . 2 % 0. 0 % Tr a n s f e r O u t - D e b t S e r v i c e - As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ad j . t o R e f l e c t F u l l Y e a r I n c r e a s e 2,0 7 2 , 5 8 4 . 8 As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % LE S S : O f f s e t t i n g R e v e n u e s Ov e r / U n d e r C o l l e c t i o n o f R e v e n u e s ( A v a i l a b l e f o r C a p i t a l o r R e s e r v e s ) 4,4 4 2 , 9 3 3 $ As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ot h e r C h a r g e s f o r S e r v i c e s (1 2 , 4 8 0 ) As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Fin e s a n d F o r f e i t u r e s (1 2 0 , 7 3 0 ) As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % In c o m e f r o m P r o p e r t y & I n v e s t m e n t s (5 0 3 , 3 3 7 ) As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % In t e r d e p a r t m e n t a l (1 2 4 , 8 0 0 ) As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % Ot h e r R e v e n u e s (6 9 , 6 8 0 ) As W e i g h t e d A v e r a g e 0.0 % 0.0 % 0.0 % 0.0 % 10 0 . 0 % To t a l R a t e R e v e n u e s t o b e C o l l e c t e d 27 , 9 7 9 , 8 9 4 $ 4, 6 4 2 , 7 0 0 $ 3, 7 9 6 , 2 6 7 $ 4, 0 9 8 , 5 6 6 $ 9, 7 5 7 , 8 7 0 $ 5, 6 8 4 , 4 9 1 $ Re a l l o c a t i o n o f " A s A l l O t h e r s " 1, 1 8 3 , 7 1 4 $ 96 7 , 9 0 6 $ 1, 0 4 4 , 9 8 1 $ 2, 4 8 7 , 8 9 1 $ (5 , 6 8 4 , 4 9 1 ) $ To t a l A l l o c a t i o n 27 , 9 7 9 , 8 9 4 $ 5, 8 2 6 , 4 1 4 $ 4, 7 6 4 , 1 7 2 $ 5, 1 4 3 , 5 4 7 $ 12 , 2 4 5 , 7 6 1 $ - $ Pe r c e n t a g e A l l o c a t i o n 10 0 % 20 . 8 % 17 . 0 % 18 . 4 % 43 . 8 % 0.0 % Ch e c k Ra t e R e v e n u e s f r o m R e v e n u e R e q u i r e m e n t 27 , 9 7 9 , 8 9 4 $ Ra t e R e v e n u e s f r o m F u n c t i o n a l A l l o c a t i o n 27 , 9 7 9 , 8 9 4 $ Dif f e r e n c e - $ UN I T C O S T C A L C U L A T I O N S TR E A T M E N T F L O W B O D TS S C O L L E C T I O N F L O W A S A L L O T H E R S cc f s lb s lb s lb s Am o u n t A l l o c a b l e t o C o n s t i t u e n t 5,8 2 6 , 4 1 4 $ 4, 7 6 4 , 1 7 2 $ 5, 1 4 3 , 5 4 7 $ 12 , 2 4 5 , 7 6 1 $ To t a l U n i t s 3, 1 3 8 , 6 9 6 7 , 0 8 5 , 7 6 3 8 , 3 9 7 , 9 9 2 3 , 1 3 8 , 6 9 6 PE R U N I T C O S T S 1. 8 5 6 $ 0. 6 7 2 $ 0. 6 1 2 $ 3. 9 0 2 $ Pa g e 5 Feb. 11, 2025 Item #8 Page 93 of 265 20 2 4 20 2 5 20 2 6 20 2 7 20 2 8 20 2 9 CI T Y O F C A R L S B A D Wa s t e w a t e r F i n a n c i a l M o d e l - A l t e r n a t i v e O p t i o n W i t h B o n d s Re v e n u e R e q u i r e m e n t FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 CA S H F L O W T E S T S RE V E N U E S Ra t e R e v e n u e s 23 , 5 5 6 , 8 1 8 $ 25 , 9 0 7 , 3 1 0 $ 28 , 0 3 8 , 5 9 0 $ 30 , 3 9 5 , 4 3 0 $ 31 , 6 1 5 , 8 3 0 $ 32 , 8 9 7 , 8 7 0 $ Ot h e r C h a r g e s f o r S e r v i c e s 12 , 0 0 0 12 , 4 8 0 12 , 7 9 2 13 , 1 1 2 13 , 4 4 0 13 , 7 7 6 Fi n e s a n d F o r f e i t u r e s 12 0 , 0 0 0 12 0 , 7 3 0 12 0 , 9 8 0 12 1 , 4 3 0 12 2 , 6 3 0 12 3 , 8 9 0 In c o m e f r o m P r o p e r t y & I n v e s t m e n t s 74 4 , 0 1 1 50 3 , 3 3 7 20 4 , 7 5 8 15 2 , 0 4 9 27 8 , 5 5 1 34 0 , 3 9 4 In t e r d e p a r t m e n t a l 12 0 , 0 0 0 12 4 , 8 0 0 12 7 , 9 2 0 13 1 , 1 2 0 13 4 , 4 0 0 13 7 , 7 6 0 Ot h e r R e v e n u e s 67 , 0 0 0 69 , 6 8 0 71 , 4 2 2 73 , 2 0 5 75 , 0 4 0 76 , 9 1 6 TO T A L R E V E N U E S 24 , 6 1 9 , 8 3 0 $ 26 , 7 3 8 , 3 3 7 $ 28 , 5 7 6 , 4 6 2 $ 30 , 8 8 6 , 3 4 6 $ 32 , 2 3 9 , 8 9 0 $ 33 , 5 9 0 , 6 0 6 $ EX P E N D I T U R E S On g o i n g O p e r a t i n g E x p e n s e s Pe r s o n n e l 3, 3 2 2 , 0 8 8 $ 3, 6 0 8 , 1 8 0 $ 3, 7 2 6 , 4 5 2 $ 3, 8 4 7 , 9 1 5 $ 3, 9 7 2 , 6 7 9 $ 4, 1 0 1 , 8 4 1 $ En c i n a O p e r a t i o n s 6, 0 0 0 , 0 0 0 6, 1 8 0 , 0 0 0 6, 3 6 5 , 4 0 0 6, 5 5 6 , 3 6 0 6, 7 5 3 , 0 5 0 6, 9 5 5 , 6 4 0 Ma i n t e n a n c e & E q u i p m e n t 4, 1 0 0 , 1 6 1 3, 9 8 1 , 4 0 0 4, 0 8 6 , 3 6 0 4, 1 9 4 , 1 8 7 4, 3 0 4 , 9 7 4 4, 4 1 8 , 7 7 5 Ca p i t a l O u t l a y 24 , 6 5 1 25 , 6 3 7 26 , 2 7 8 26 , 9 3 5 27 , 6 0 8 28 , 2 9 9 Re p l a c e m e n t F u n d i n g 10 , 0 9 0 , 1 1 3 - - - - - Tr a n s f e r O u t - D e b t S e r v i c e - - - - - - Ot h e r O p e r a t i n g E x p e n s e s On e - t i m e F u n d i n g (B u d g e t A n a l y s i s A m o u n t ) (1 , 4 2 4 , 5 6 6 ) (1 , 4 5 5 , 6 7 3 ) (1 , 4 9 1 , 4 5 7 ) (1 , 5 2 8 , 1 7 9 ) (1 , 5 6 5 , 8 6 8 ) (1 , 6 0 4 , 6 2 5 ) Ra t e F u n d e d C a p i t a l 2, 7 9 7 , 1 0 6 4, 5 9 4 , 3 7 9 14 , 7 8 8 , 0 9 6 - 6 , 9 7 2 , 2 2 4 1, 8 4 2 , 3 2 1 De b t S e r v i c e - - - 1 , 9 3 6 , 4 6 2 1, 9 3 6 , 4 6 2 2, 9 2 2 , 0 9 0 To t a l O p e r a t i n g E x p e n d i t u r e s 24 , 9 0 9 , 5 5 2 $ 16 , 9 3 3 , 9 2 3 $ 27 , 5 0 1 , 1 2 9 $ 15 , 0 3 3 , 6 7 9 $ 22 , 4 0 1 , 1 3 0 $ 18 , 6 6 4 , 3 4 0 $ Po l i c y E x p e n d i t u r e s Re p l a c e m e n t F u n d i n g 5, 3 0 0 , 0 0 0 $ 5, 3 6 1 , 4 8 0 $ 5, 4 2 3 , 1 4 0 $ 5, 4 8 5 , 5 1 0 $ 5, 5 4 8 , 5 9 0 $ 5, 6 1 2 , 4 0 0 $ Tr a n s f e r s t o C a p i t a l F u n d - - - - - - Ad d i t i o n s t o M e e t M i n i m u m F u n d B a l a n c e s - - - - - - To t a l P o l i c y E x p e n d i t u r e s 5, 3 0 0 , 0 0 0 $ 5, 3 6 1 , 4 8 0 $ 5, 4 2 3 , 1 4 0 $ 5, 4 8 5 , 5 1 0 $ 5, 5 4 8 , 5 9 0 $ 5, 6 1 2 , 4 0 0 $ Pa g e 1 Feb. 11, 2025 Item #8 Page 94 of 265 20 2 4 20 2 5 20 2 6 20 2 7 20 2 8 20 2 9 CI T Y O F C A R L S B A D Wa s t e w a t e r F i n a n c i a l M o d e l - A l t e r n a t i v e O p t i o n W i t h B o n d s Re v e n u e R e q u i r e m e n t FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 PO L I C Y O V E R R I D E S ( i n p u t i n D a s h b o a r d ) Re p l a c e m e n t F u n d i n g No O v e r r i d e N o O v e r r i d e N o O v e r r i d e N o O v e r r i d e N o O v e r r i d e N o O v e r r i d e Tr a n s f e r s t o C a p i t a l F u n d - $ - $ - $ - $ - $ - $ Ad d i t i o n s t o M e e t M i n i m u m F u n d B a l a n c e s ( * ) - $ - $ - $ - $ - $ - $ TO T A L E X P E N D I T U R E S 30 , 2 0 9 , 5 5 2 $ 22 , 2 9 5 , 4 0 3 $ 32 , 9 2 4 , 2 6 9 $ 20 , 5 1 9 , 1 8 9 $ 27 , 9 4 9 , 7 2 0 $ 24 , 2 7 6 , 7 4 0 $ CA S H F L O W S U R P L U S ( D E F I C I T ) (5 , 5 8 9 , 7 2 3 ) $ 4, 4 4 2 , 9 3 3 $ (4 , 3 4 7 , 8 0 7 ) $ 10 , 3 6 7 , 1 5 7 $ 4, 2 9 0 , 1 7 0 $ 9, 3 1 3 , 8 6 6 $ Pa g e 2 Feb. 11, 2025 Item #8 Page 95 of 265 20 2 4 20 2 5 20 2 6 20 2 7 20 2 8 20 2 9 CI T Y O F C A R L S B A D Wa s t e w a t e r F i n a n c i a l M o d e l - A l t e r n a t i v e O p t i o n W i t h B o n d s Re v e n u e R e q u i r e m e n t FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 DE B T C O V E R A G E T E S T 1. 2 5 x Bo n d C o v e r a g e Ca l c u l a t i o n o f N e t R e v e n u e s Op e r a t i n g R e v e n u e s Us e r C h a r g e s 23 , 5 5 6 , 8 1 8 $ 25 , 9 0 7 , 3 1 0 $ 28 , 0 3 8 , 5 9 0 $ 30 , 3 9 5 , 4 3 0 $ 31 , 6 1 5 , 8 3 0 $ 32 , 8 9 7 , 8 7 0 $ Ot h e r / M i s c R e v e n u e s - E x c l u d e s I n t e r e s t E a r n i n g s 31 9 , 0 0 0 32 7 , 6 9 0 33 3 , 1 1 4 33 8 , 8 6 7 34 5 , 5 1 0 35 2 , 3 4 2 Ye s Co n n e c t i o n F e e s 47 1 , 4 3 8 $ 40 0 , 9 7 4 $ 32 8 , 8 9 6 $ 11 3 , 8 8 3 $ 20 4 , 3 6 8 $ 53 8 , 1 4 4 $ Ye s Gr a n t s - - - - - - Mo d e l e d I n t e r e s t E a r n i n g s Ye s Op e r a t i n g F u n d s 26 5 , 5 7 1 $ 21 1 , 2 2 6 $ 93 , 8 7 2 $ 64 , 5 6 9 $ 87 , 5 1 6 $ 14 4 , 4 9 3 $ Ye s Ca p i t a l F u n d s 47 8 , 4 4 0 29 2 , 1 1 1 11 0 , 8 8 6 87 , 4 8 0 19 1 , 0 3 5 19 5 , 9 0 2 To t a l R e v e n u e s I n c l u d e d i n T e s t 25 , 0 9 1 , 2 6 8 $ 27 , 1 3 9 , 3 1 1 $ 28 , 9 0 5 , 3 5 9 $ 31 , 0 0 0 , 2 2 9 $ 32 , 4 4 4 , 2 5 9 $ 34 , 1 2 8 , 7 5 0 $ Le s s : O p e r a t i n g E x p e n s e s (1 3 , 4 2 2 , 2 4 9 ) $ (1 3 , 7 6 9 , 5 8 0 ) $ (1 4 , 1 7 8 , 2 1 2 ) $ (1 4 , 5 9 8 , 4 6 2 ) $ (1 5 , 0 3 0 , 7 0 3 ) $ (1 5 , 4 7 6 , 2 5 6 ) $ Ne t O p e r a t i n g R e v e n u e s A v a i a b l e f o r D e b t S e r v i c e 11 , 6 6 9 , 0 1 9 $ 13 , 3 6 9 , 7 3 1 $ 14 , 7 2 7 , 1 4 7 $ 16 , 4 0 1 , 7 6 8 $ 17 , 4 1 3 , 5 5 5 $ 18 , 6 5 2 , 4 9 4 $ De b t S e r v i c e - $ - $ - $ 1 , 9 3 6 , 4 6 2 $ 1, 9 3 6 , 4 6 2 $ 2, 9 2 2 , 0 9 0 $ Co v e r a g e - - - 2 , 4 2 0 , 5 7 7 2, 4 2 0 , 5 7 7 3, 6 5 2 , 6 1 2 Su b t o t a l : D e b t S e r v i c e a n d C o v e r a g e - $ - $ - $ 4 , 3 5 7 , 0 3 9 $ 4, 3 5 7 , 0 3 9 $ 6, 5 7 4 , 7 0 2 $ BO N D C O V E R A G E S U R P L U S ( D E F I C I T ) 11 , 6 6 9 , 0 1 9 $ 13 , 3 6 9 , 7 3 1 $ 14 , 7 2 7 , 1 4 7 $ 12 , 0 4 4 , 7 2 9 $ 13 , 0 5 6 , 5 1 6 $ 12 , 0 7 7 , 7 9 2 $ Pa g e 3 Feb. 11, 2025 Item #8 Page 96 of 265 20 2 4 20 2 5 20 2 6 20 2 7 20 2 8 20 2 9 CI T Y O F C A R L S B A D Wa s t e w a t e r F i n a n c i a l M o d e l - A l t e r n a t i v e O p t i o n W i t h B o n d s Re v e n u e R e q u i r e m e n t FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 RE V E N U E R E Q U I R E M E N T Re v e n u e R e q u i r e m e n t (5 , 5 8 9 , 7 2 3 ) $ 4, 4 4 2 , 9 3 3 $ (4 , 3 4 7 , 8 0 7 ) $ 10 , 3 6 7 , 1 5 7 $ 4, 2 9 0 , 1 7 0 $ 9, 3 1 3 , 8 6 6 $ Ca s h F l o w D r i v e n S u r p l u s C a s h F l o w D r i v e n S u r p l u s Su r p l u s Su r p l u s Mo n t h o f i m p l e m e n t a t i o n Ja n u a r y J a n u a r y J a n u a r y J a n u a r y J a n u a r y J a n u a r y Ca l c u l a t e d I n c r e a s e ( % ) 47 . 4 6 % 0. 0 0 % 31 . 0 1 % 0. 0 0 % 0. 0 0 % 0. 0 0 % Ra t e I n c r e a s e O v e r r i d e ( I N P U T i n D a s h b o a r d ) 20 . 0 0 % 8. 0 0 % 8. 0 0 % 3. 0 0 % 3. 0 0 % 3. 0 0 % Ra t e I n c r e a s e ( % ) 20 . 0 0 % 8. 0 0 % 8. 0 0 % 3. 0 0 % 3. 0 0 % 3. 0 0 % Cu m u l a t i v e R a t e I n c r e a s e ( % ) 8 6 . 0 % 10 3 . 9 % 12 0 . 2 % 12 6 . 8 % 13 3 . 6 % 14 0 . 6 % SF R R a t e $5 1 . 7 4 $5 6 . 7 0 $6 1 . 2 3 $6 3 . 0 7 $6 4 . 9 6 $6 6 . 9 1 CA S H F L O W Re v e n u e s B e f o r e R a t e I n c r e a s e 24 , 6 1 9 , 8 3 0 $ 26 , 7 3 8 , 3 3 7 $ 28 , 5 7 6 , 4 6 2 $ 30 , 8 8 6 , 3 4 6 $ 32 , 2 3 9 , 8 9 0 $ 33 , 5 9 0 , 6 0 6 $ Re v e n u e s F r o m R a t e I n c r e a s e - 2 , 0 7 2 , 5 8 5 2, 2 4 3 , 0 8 7 91 1 , 8 6 3 94 8 , 4 7 5 98 6 , 9 3 6 Le s s : R a t e I n c r e a s e D e l a y - ( 1 , 0 3 6 , 2 9 2 ) (1 , 1 2 1 , 5 4 4 ) (4 5 5 , 9 3 1 ) (4 7 4 , 2 3 7 ) (4 9 3 , 4 6 8 ) Le s s : A d j u s t m e n t f o r I m p l e m e n t a t i o n D e l a y (1 , 0 3 6 , 2 9 2 ) Le s s : E x p e n d i t u r e s (3 0 , 2 0 9 , 5 5 2 ) (2 2 , 2 9 5 , 4 0 3 ) (3 2 , 9 2 4 , 2 6 9 ) (2 0 , 5 1 9 , 1 8 9 ) (2 7 , 9 4 9 , 7 2 0 ) (2 4 , 2 7 6 , 7 4 0 ) Ca s h F l o w (5 , 5 8 9 , 7 2 3 ) $ 4, 4 4 2 , 9 3 3 $ (3 , 2 2 6 , 2 6 3 ) $ 10 , 8 2 3 , 0 8 8 $ 4, 7 6 4 , 4 0 8 $ 9, 8 0 7 , 3 3 4 $ RA T E R E V E N U E R E Q U I R E M E N T 23 , 5 5 6 , 8 1 8 $ 27 , 9 7 9 , 8 9 4 $ 30 , 2 8 1 , 6 7 7 $ 31 , 3 0 7 , 2 9 3 $ 32 , 5 6 4 , 3 0 5 $ 33 , 8 8 4 , 8 0 6 $ To t a l E n d i n g B a l a n c e 10 , 9 8 7 , 2 3 6 $ 9, 4 8 8 , 6 0 7 $ 5, 7 1 6 , 2 9 7 $ 22 , 1 3 8 , 7 7 8 $ 11 , 9 0 0 , 6 7 0 $ 17 , 1 2 0 , 3 4 2 $ 16 1 d a y s 20 5 d a y s 76 d a y s 53 8 d a y s 19 4 d a y s 33 5 d a y s Op e r a t i n g F u n d Be g i n n i n g B a l a n c e 16 , 5 7 6 , 9 5 9 $ 4, 5 4 5 , 6 7 4 $ 4, 8 4 1 , 5 6 0 $ 1, 6 1 5 , 2 9 7 $ 7, 1 3 6 , 2 6 2 $ 7, 3 1 3 , 0 0 8 $ Ca s h F l o w (5 , 5 8 9 , 7 2 3 ) 4, 4 4 2 , 9 3 3 (3 , 2 2 6 , 2 6 3 ) 10 , 8 2 3 , 0 8 8 4, 7 6 4 , 4 0 8 9, 8 0 7 , 3 3 4 Tr a n s f e r s f r o m O p e r a t i n g t o C a p i t a l F u n d (6 , 4 4 1 , 5 6 2 ) (4 , 1 4 7 , 0 4 7 ) - ( 5 , 3 0 2 , 1 2 3 ) (4 , 5 8 7 , 6 6 2 ) (8 , 6 4 7 , 3 0 1 ) En d i n g O p e r a t i n g F u n d B a l a n c e 4, 5 4 5 , 6 7 4 $ 4, 8 4 1 , 5 6 0 $ 1, 6 1 5 , 2 9 7 $ 7, 1 3 6 , 2 6 2 $ 7, 3 1 3 , 0 0 8 $ 8, 4 7 3 , 0 4 1 $ Pa g e 4 Feb. 11, 2025 Item #8 Page 97 of 265 20 2 4 20 2 5 20 2 6 20 2 7 20 2 8 20 2 9 CI T Y O F C A R L S B A D Wa s t e w a t e r F i n a n c i a l M o d e l - A l t e r n a t i v e O p t i o n W i t h B o n d s Re v e n u e R e q u i r e m e n t FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 Co v e r a g e T e s t s - P o s t R a t e I n c r e a s e Ca l c u l a t i o n o f N e t R e v e n u e s Op e r a t i n g R e v e n u e s Us e r C h a r g e s 23 , 5 5 6 , 8 1 8 $ 25 , 9 0 7 , 3 1 0 $ 29 , 1 6 0 , 1 3 4 $ 30 , 8 5 1 , 3 6 1 $ 32 , 0 9 0 , 0 6 7 $ 33 , 3 9 1 , 3 3 8 $ Ot h e r / M i s c R e v e n u e s 31 9 , 0 0 0 32 7 , 6 9 0 33 3 , 1 1 4 33 8 , 8 6 7 34 5 , 5 1 0 35 2 , 3 4 2 Ch a n g e s e l e c t i o n a b o v e Ye s Co n n e c t i o n F e e s 47 1 , 4 3 8 $ 40 0 , 9 7 4 $ 32 8 , 8 9 6 $ 11 3 , 8 8 3 $ 20 4 , 3 6 8 $ 53 8 , 1 4 4 $ Ye s Gr a n t s - - - - - - Mo d e l e d I n t e r e s t E a r n i n g s Ye s Op e r a t i n g F u n d s 26 5 , 5 7 1 $ 21 1 , 2 2 6 $ 93 , 8 7 2 $ 64 , 5 6 9 $ 87 , 5 1 6 $ 14 4 , 4 9 3 $ Ye s Ca p i t a l F u n d s 47 8 , 4 4 0 29 2 , 1 1 1 11 0 , 8 8 6 87 , 4 8 0 19 1 , 0 3 5 19 5 , 9 0 2 To t a l R e v e n u e s I n c l u d e d i n T e s t 25 , 0 9 1 , 2 6 8 $ 27 , 1 3 9 , 3 1 1 $ 30 , 0 2 6 , 9 0 2 $ 31 , 4 5 6 , 1 6 0 $ 32 , 9 1 8 , 4 9 6 $ 34 , 6 2 2 , 2 1 8 $ LE S S : O p e r a t i n g E x p e n s e s (1 3 , 4 2 2 , 2 4 9 ) $ (1 3 , 7 6 9 , 5 8 0 ) $ (1 4 , 1 7 8 , 2 1 2 ) $ (1 4 , 5 9 8 , 4 6 2 ) $ (1 5 , 0 3 0 , 7 0 3 ) $ (1 5 , 4 7 6 , 2 5 6 ) $ Ne t O p e r a t i n g R e v e n u e s A v a i l a b l e f o r D e b t S e r v i c e 1 1 , 6 6 9 , 0 1 9 $ 13 , 3 6 9 , 7 3 1 $ 15 , 8 4 8 , 6 9 1 $ 16 , 8 5 7 , 6 9 9 $ 17 , 8 8 7 , 7 9 3 $ 19 , 1 4 5 , 9 6 2 $ Ex i s t i n g D e b t T e s t - I n c l u d e s d e b t s e r v i c e o n l y f o r d e b t t h a t h a s b e e n i s s u e d a n d h a s b e e n i n p u t i n t o t h e m o d e l . Ne t O p e r a t i n g R e v e n u e s A v a i l a b l e f o r D e b t S e r v i c e 11 , 6 6 9 , 0 1 9 $ 13 , 3 6 9 , 7 3 1 $ 15 , 8 4 8 , 6 9 1 $ 16 , 8 5 7 , 6 9 9 $ 17 , 8 8 7 , 7 9 3 $ 19 , 1 4 5 , 9 6 2 $ LE S S : E x i s t i n g D e b t S e r v i c e - - - ( 2 9 3 , 7 4 9 ) (2 9 3 , 7 4 9 ) (2 9 3 , 7 4 9 ) Re v e n u e s A v a i l a b l e f o r C o v e r a g e 11 , 6 6 9 , 0 1 9 $ 13 , 3 6 9 , 7 3 1 $ 15 , 8 4 8 , 6 9 1 $ 16 , 5 6 3 , 9 5 0 $ 17 , 5 9 4 , 0 4 4 $ 18 , 8 5 2 , 2 1 3 $ Ex i s t i n g D e b t S e r v i c e C o v e r a g e R a t i o No E x i s t i n g D e b t N o E x i s t i n g D e b t N o E x i s t i n g D e b t 5 7 . 3 9 x 60 . 8 9 x 65 . 1 8 x To t a l D e b t T e s t - I n c l u d e s e x i t i n g a n d p r o j e c t e d d e b t . Ne t O p e r a t i n g R e v e n u e s A v a i l a b l e f o r D e b t S e r v i c e 11 , 6 6 9 , 0 1 9 $ 13 , 3 6 9 , 7 3 1 $ 15 , 8 4 8 , 6 9 1 $ 16 , 8 5 7 , 6 9 9 $ 17 , 8 8 7 , 7 9 3 $ 19 , 1 4 5 , 9 6 2 $ Le s s : E x i s t i n g D e b t S e r v i c e - - - ( 2 9 3 , 7 4 9 ) (2 9 3 , 7 4 9 ) (2 9 3 , 7 4 9 ) Le s s : P r o j e c t e d D e b t S e r v i c e - - - ( 1 , 6 4 2 , 7 1 3 ) (1 , 6 4 2 , 7 1 3 ) (2 , 6 2 8 , 3 4 1 ) Re v e n u e s A v a i l a b l e f o r C o v e r a g e 11 , 6 6 9 , 0 1 9 $ 13 , 3 6 9 , 7 3 1 $ 15 , 8 4 8 , 6 9 1 $ 14 , 9 2 1 , 2 3 7 $ 15 , 9 5 1 , 3 3 1 $ 16 , 2 2 3 , 8 7 2 $ To t a l D e b t S e r v i c e C o v e r a g e R a t i o No D e b t N o D e b t N o D e b t 8. 7 1 x 9. 2 4 x 6. 5 5 x Pa g e 5 Feb. 11, 2025 Item #8 Page 98 of 265 CI T Y O F C A R L S A B A D Wa s t e w a t e r F i n a n c i a l M o d e l - A l t e r n a t i v e O p t i o n w i t h B o n d s Cu s t o m e r A l l o c a t i o n & R a t e s FY E 2 0 2 5 PR O P O S E D Cu s t o m e r D a t a B i l l e d U n i t s S u m m a r y FY E 2 0 2 5 Un i t s ES T I M A T E D S E W E R F L O W S ( H C F ) 3, 1 3 8 , 6 9 6 ES T I M A T E D B O D D I S C H A R G E ( l b s ) 7, 0 8 5 , 7 6 3 ES T I M A T E D T S S D I S C H A R G E ( l b s ) 8, 3 9 7 , 9 9 2 CU S T O M E R A C C O U N T S 24 , 2 0 0 Al l o c a t e d R e v e n u e R e q u i r e m e n t s TR E A T M E N T F L O W B O D TS S CO L L E C T I O N F L O W TO T A L Ra t e R e v e n u e R e q u i r e d 5, 8 2 6 , 4 1 4 $ 4, 7 6 4 , 1 7 2 $ 5, 1 4 3 , 5 4 7 $ 12 , 2 4 5 , 7 6 1 $ 27 , 9 7 9 , 8 9 4 $ Un i t B a s i s f o r R a t e D e s i g n ES T I M A T E D S E W E R FL O W S ( H C F ) E S T I M A T E D B O D DI S C H A R G E ( l b s ) ES T I M A T E D T S S DI S C H A R G E ( l b s ) ES T I M A T E D S E W E R FL O W S ( H C F ) 20 2 5 U n i t s 3, 1 3 8 , 6 9 6 7, 0 8 5 , 7 6 3 8, 3 9 7 , 9 9 2 3, 1 3 8 , 6 9 6 20 2 5 U n i t C o s t $1 . 8 5 6 $0 . 6 7 2 $0 . 6 1 2 $3 . 9 0 2 pe r H C F pe r l b pe r l b pe r H C F Ra t e C l a s s U n i t C o s t s - P e r H C F D i s c h a r g e d BO D ( m g / l ) B O D ( $ / H C F ) T S S ( m g / l ) T S S ( $ / H C F ) F l o w ( $ / H C F ) To t a l $ P e r H C F D i s c h a r g e d GR O U P I - S F R & M i n i m u m C h a r g e s 30 1 $1 . 2 6 3 7 9 $1 . 4 5 $ 5 . 7 6 $8 . 4 7 GR O U P I - M F R / M o b i l e H o m e s 30 1 $1 . 2 6 3 7 9 $1 . 4 5 $ 5 . 7 6 $8 . 4 7 GR O U P I I - C o m m e r c i a l 2 19 6 $0 . 8 2 2 2 9 $0 . 8 7 $ 5 . 7 6 $7 . 4 6 GR O U P I I I - C o m m e r c i a l 3 49 5 $2 . 0 8 5 2 9 $2 . 0 2 $ 5 . 7 6 $9 . 8 6 GR O U P I V - C o m m e r c i a l 4 12 3 6 $5 . 1 9 1 2 9 0 $4 . 9 3 $ 5 . 7 6 $1 5 . 8 7 Ot h e r 0 $0 . 0 0 0 $0 . 0 0 $ 5 . 7 6 $5 . 7 6 Br e w e r y - B 2 19 0 6 $8 . 0 0 1 5 3 7 $5 . 8 8 $ 5 . 7 6 $1 9 . 6 3 Br e w e r y - B 3 12 3 6 $5 . 1 9 1 2 9 0 $4 . 9 3 $ 5 . 7 6 $1 5 . 8 7 Br e w e r y - B 4 24 2 6 $1 0 . 1 8 2 0 6 7 $7 . 9 0 $ 5 . 7 6 $2 3 . 8 4 GR O U P V I - L a r g e V o l u m e ( n o a c c o u n t s ) 12 1 $0 . 5 1 1 5 2 $0 . 5 8 $ 5 . 7 6 $6 . 8 4 In d u s t r i a l P r e t r e a t m e n t C l a s s I I I 45 0 $1 . 8 9 9 0 5 $3 . 4 6 $ 5 . 7 6 $1 1 . 1 1 In s t i t u t i o n a l 19 6 $0 . 8 2 1 9 0 $0 . 7 3 $ 5 . 7 6 $7 . 3 1 GR O U P V - E l e m e n t a r y S c h o o l s 19 6 $0 . 8 2 1 9 0 $0 . 7 3 $ 5 . 7 6 $7 . 3 1 GR O U P V - J u n i o r H i g h S c h o o l s 19 6 $0 . 8 2 1 9 0 $0 . 7 3 $ 5 . 7 6 $7 . 3 1 GR O U P V - H i g h S c h o o l s 19 6 $0 . 8 2 1 9 0 $0 . 7 3 $ 5 . 7 6 $7 . 3 1 GR O U P V - B o a r d i n g S c h o o l s 19 6 $0 . 8 2 1 9 0 $0 . 7 3 $ 5 . 7 6 $7 . 3 1 AL L O C A T I O N Y E A R : Feb. 11, 2025 Item #8 Page 99 of 265 CI T Y O F C A R L S A B A D Wa s t e w a t e r F i n a n c i a l M o d e l - A l t e r n a t i v e O p t i o n w i t h B o n d s Cu s t o m e r A l l o c a t i o n & R a t e s GR O U P I - S F R & M i n i m u m C h a r g e s $8 . 4 7 1. 0 6. 6 9 $5 6 . 6 9 $5 6 . 7 0 SF R w i t h A D U $8 . 4 7 1. 5 10 . 0 4 $8 5 . 0 4 $8 5 . 0 4 GR O U P I - M F R / M o b i l e H o m e s $8 . 4 7 76 . 9 6 % $6 . 5 2 $6 . 5 3 GR O U P I I - C o m m e r c i a l 2 $7 . 4 6 76 . 9 6 % $5 . 7 4 $5 . 7 4 GR O U P I I I - C o m m e r c i a l 3 $9 . 8 6 76 . 9 6 % $7 . 5 9 $7 . 5 9 GR O U P I V - C o m m e r c i a l 4 $1 5 . 8 7 76 . 9 6 % $1 2 . 2 2 $1 2 . 2 2 Ot h e r $5 . 7 6 0.0 0 % $0 . 0 0 $0 . 0 0 Br e w e r y - B 2 $1 9 . 6 3 70 . 5 5 % $1 3 . 8 5 $1 3 . 8 6 Br e w e r y - B 3 $1 5 . 8 7 76 . 9 6 % $1 2 . 2 2 $1 2 . 2 2 Br e w e r y - B 4 $2 3 . 8 4 70 . 5 5 % $1 6 . 8 2 $1 6 . 8 3 GR O U P V I - L a r g e V o l u m e ( n o a c c o u n t s ) $6 . 8 4 76 . 9 6 % $5 . 2 7 $5 . 2 7 In d u s t r i a l P r e t r e a t m e n t C l a s s I I I $1 1 . 1 1 76 . 9 6 % $8 . 5 5 $8 . 5 5 In s t i t u t i o n a l $7 . 3 1 76 . 9 6 % $5 . 6 2 $5 . 6 3 In s t i t u t i o n a l R a t e s To t a l $ P e r H C F Di s c h a r g e d As s u m e d F l o w p e r St u d e n t ( g p d ) Ad j u s t m e n t f o r St u d e n t D a y s Ef f e c t i v e F l o w p e r St u d e n t ( H C F p e r Mo n t h ) Ca l c u l a t e d M o n t h l y R a t e (p e r S t u d e n t ) No R o u n d i n g Pr o p o s e d M o n t h l y R a t e (p e r S t u d e n t ) R o u n d e d GR O U P V - E l e m e n t a r y S c h o o l s $7 . 3 1 6. 8 4 55 % 0. 1 5 $1 . 1 1 $1 . 1 2 GR O U P V - J u n i o r H i g h S c h o o l s $7 . 3 1 10 . 2 6 55 % 0. 2 3 $1 . 6 7 $1 . 6 8 GR O U P V - H i g h S c h o o l s $7 . 3 1 13 . 6 8 55 % 0. 3 0 $2 . 2 3 $2 . 2 3 GR O U P V - B o a r d i n g S c h o o l s $7 . 3 1 38 . 1 8 10 0 % 1. 5 5 $1 1 . 3 4 $1 1 . 3 5 Ca l c u l a t e d M o n t h l y R a t e (p e r A c c o u n t o r D w e l l i n g Un i t ) No R o u n d i n g Ca l c u l a t e d M o n t h l y R a t e ( p e r H C F o f Wa t e r U s e d ) R o u n d e d Pr o p o s e d M o n t h l y R a t e ( p e r A c c o u n t or D w e l l i n g U n i t ) Ro u n d e d GR O U P I - S F R & M i n i m u m C h a r g e s Es t i m a t e d M o n t h l y Di s c h a r g e ( H C F ) To t a l $ P e r H C F Di s c h a r g e d ED U F l o w F a c t o r Di s c h a r g e B a s e d R a t e s To t a l $ P e r H C F Di s c h a r g e d Re t u r n t o S e w e r Fa c t o r Ca l c u l a t e d M o n t h l y R a t e (p e r A c c o u n t o r D w e l l i n g Un i t ) No R o u n d i n g Feb. 11, 2025 Item #8 Page 100 of 265 RESOLUTION NO. 2025-048 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ESTABLISHING A PROCEDURE FOR CUSTOMER AND PROPERTY OWNER OBJECTIONS TO PROPOSED PROPERTY-RELATED FEES AND CHARGES FOR WASTEWATER SERVICES WHEREAS, the City of Carlsbad provides property-related services, including but not limited to, wastewater services, and assesses fees and charges for the costs of providing these services; and WHEREAS, California law requires that any new fee or increase to an existing property-related fee must be adopted in accordance with the substantive and procedural requirements of Article XIII D, section 6 of the California Constitution, or Proposition 218; and WHEREAS, Assembly Bill 2257, codified as Government Code Sections 53759.1 and 53759.2, or AB 2257, became effective January 1, 2025, and authorizes local agencies to adopt certain procedures for the submittal and consideration of public comments regarding proposed wastewater (sewer) or water fees; and WHEREAS, if a local agency adopts the procedures authorized by AB 2257, then members of the public must timely submit written objections as part of the ratemaking process, to exhaust their administrative remedies as a prerequisite to later litigating the particular issue raised; and WHEREAS, the City Council of the City of Carlsbad has determined that electing to opt-in to the adoption of exhaustion of administrative procedures authorized by AB 2257 allows the City Council to hear substantive concerns by members of the public prior to approving any proposed rate changes and creates a better administrative record to facilitate judicial review. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the City of Carlsbad elects to adopt the exhaustion of administrative procedures authorized by Government Codes Sections 53759.1 and 53759.2. 3. That prior to the adoption of any rates changes for wastewater services there will be a period of at least 45 days after the Proposition 218 notice is mailed for customers and property owners to submit written objections. 4. That the City Manager or designee will establish a deadline for the members of the public to submit any written objections to the proposed wastewater fees prior to the majority-protest public hearing. 5. That the City Manager or designee will review all submitted written objections and provide written responses to all timely written objections. 6. That prior to the close of the majority protest hearing all written objections and responses will be submitted to the City Council for consideration. 7. That the required Proposition 218 notice will describe these objection procedures, including how to submit written objections, and the deadline by which all written objections must be received. 8. That approving a procedure for customers and property owners to raise objections to proposed wastewater fees does not constitute a project within the meaning of the California Environmental Quality Act under Public Resources Code Section 21065 because it has no potential to cause either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 11th day of February 2025, by the following vote, to wit: AYES: NAYS: ABSTAIN : ABSENT: Blackburn, Bhat-Patel, Acosta, Burkholder, Shin. None. None. None. KEITH BLACKBURN, MAYOR RESOLUTION NO. 1760 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING AND FILING THE 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY, SETTING A PUBLIC HEARING FOR APRIL 22, 2025, AT 5 P.M., TO APPROVE INCREASES TO RATES FOR POTABLE AND RECYCLED WATER SERVICES EFFECTIVE JULY 1, 2025, AND DIRECTING THE EXECUTIVE MANAGER OR DESIGNEE TO ISSUE WRITTEN NOTICE OF THE PUBLIC HEARING WHEREAS the Carlsbad Municipal Water District provides water and recycled water services to approximately 29,000 connections within a 32.3 square mile service area within the City of Carlsbad; and WHEREAS, the City and the Carlsbad Municipal Water District, or CMWD, solicited responses to its 2019 Utilities Cost of Service Study Request for Proposals and received four responses, and after an evaluation determined that Carollo Engineers, Inc., was the most qualified consultant; and WHEREAS the City Council and CMWD Board authorized a professional services agreement with Carollo Engineers, Inc., to develop a comprehensive cost-of-service study, including CMWD's potable and recycled water services; and WHEREAS, CMWD's Final Potable and Recycled Cost-of-Service Study dated February 2025 provides a revenue requirement analysis, cost of service analysis, and a rate design process, including recommended adjustments to potable and recycled water rates; and WHEREAS, the CMWD is proposing potable and recycled water service rate increases effective July 1, 2025, Jan. 1, 2026, and Jan. 1, 2027, consistent with the Final Potable and Recycled Cost-of- Service Study dated February 2025; and WHEREAS, the California Constitution, Article XIII D, section 6, or Proposition 218, requires CMWD to hold a majority-protest public hearing on any proposed new or increased rates and fees and mail a written notice at least 45 days prior to the public hearing to the record owners of each identified parcel upon which the fees or charge for imposition is proposed. NOW, THEREFORE, BE IT RESOLVED by the Carlsbad Municipal Water District Board of Directors of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. The Final Potable and Recycled Water Cost-of-Service Study dated February 2025 (Attachment A) is approved by the CMWD Board. 3. That the CMWD Board of Directors hereby sets a majority-protest public hearing for Tuesday, April 22, 2025, at 5 p.m. 4. That the Executive Manager of designee is directed to written notice of the public hearing. 5. That approving a cost study, setting of a majority-protest public hearing, and sending written notice of the public hearing do not constitute a project within the meaning of the California Environmental Quality Act under Public Resources Code Section 21065 because it has no potential to cause either a direct physical change in the environment or a rea sonably foreseeable indirect physical change in the environment. PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad, California, and the City Council of the City of Carlsbad, California, on the 11th day of February 2025, by the following vote, to wit: AYES: NAYS: ABSTAIN: ABSENT: Blackburn, Bhat-Patel, Acosta, Burkholder, Sh in. None. None. None. KEITH BLACKBURN, President Water Cost-of-Service Study 2025 Potable and Recycled Water Cost-of-Service Study FINAL / February 2025 Attachment A Feb. 11, 2025 Item #8 Page 105 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNCIPAL WATER DISTRICT i Contents SECTION 1 INTRODUCTION 1 1.1 Study Purpose 1 1.2 Potable Water Rate Structure Updates 1 1.3 Overview of the Rate Setting Process 2 1.3.1 Revenue Requirement Analysis 3 1.3.2 Water Demand Analysis 3 1.3.3 Cost-of-Service Analysis 4 1.3.4 Rate Design Analysis & Calculation 4 1.3.5 Rate Adoption 4 1.4 Project Objectives 4 1.4.1 Rate Study Best Practices and Legal Considerations 5 1.5 Current Rate Structure 5 1.6 Project Findings and Recommendations 6 SECTION 2 INPUTS AND ASSUMPTIONS 10 2.1 Forecast Assumptions 10 2.2 Potable and Recycled Water Customer Base 11 2.2.1 Water Demand Forecast 11 SECTION 3 REVENUE REQUIREMENT ANALYSIS 13 3.1 Operating Revenues 13 3.2 Operating Expenses 15 3.3 Water Supply 16 3.4 Capital Improvement Plan Funding 17 3.5 Recommended Revenue Requirements 20 3.5.1 Cash Flow Sufficiency Test 20 3.5.2 Debt Coverage Test 24 3.5.3 SDCWA Surcharge Pass-Through 25 SECTION 4 COST-OF-SERVICE ANALYSIS 29 4.1 Ratemaking Framework 30 4.1.1 California Ratemaking 30 4.1.2 Industry Guidance 30 4.2 Functional Cost Allocation – Potable 31 4.2.1 Functional Cost Categories – Potable 31 4.3 Rate Component Allocation – Potable 33 4.3.1 Rate Component Descriptions – Potable 33 4.4 Extra Capacity Allocation Factors – Potable 34 4.4.1 Max Day Demand – Potable 34 4.4.2 Max Hour Demand – Potable 35 Feb. 11, 2025 Item #8 Page 106 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT ii 4.5 Allocation of Revenue Requirements to Cost Components – Potable 36 4.6 Functional Allocation Results – Potable 43 4.6.1 Potable Water Functional Allocation Results 43 4.6.2 Unit Cost Calculation 44 4.7 Customer Class Allocation 44 4.7.1 Potable Volumetric Cost Customer Class Allocation 45 4.7.2 Potable Fixed Cost Customer Class Allocation 46 4.7.3 Potable Water Customer Allocation Results 47 4.7.4 Functional Cost Allocation – Recycled 47 4.7.5 Rate Component Allocation – Recycled 48 4.7.6 Allocation of Revenue Requirements to Cost Components – Recycled 49 4.7.7 Functional Allocation Results – Recycled 53 SECTION 5 RATE DESIGN ANALYSIS 54 5.1 Rate Structure Objectives and Goals 54 5.2 Potable Water Delivery Fees 54 5.3 Potable Water Usage Fees 56 5.3.1 Residential Rates 57 5.3.2 CI&I, Agricultural, and Irrigation Rate Design 60 5.4 Recycled Water Rates 60 5.4.1 Recycled Water Delivery Charges 60 5.4.2 Recycled Water Usage Rates 61 5.5 Proposed Potable Water Rates 62 5.5.1 Water Delivery Fees 62 5.5.2 Water Usage Fees 63 5.6 Proposed Recycled Water Rates 64 5.7 Proposed Fire Service Rates 65 5.8 Airport Capital Charges 65 5.8.1 Airport System Capital Costs 66 5.8.2 Monthly Airport Capital Charge Calculations 67 Appendices APPENDIX A CUSTOMER AND DEMAND FORECASTS APPENDIX B WATER SUPPLY PURCHASES AND COSTS APPENDIX C CAPITAL IMPROVEMENT PLAN APPENDIX D PROJECTED O&M COSTS APPENDIX E REVENUE REQUIREMENT ANALYSIS APPENDIX F POTABLE COST OF SERVICE ANALYSIS APPENDIX G RECYCLED COST OF SERVICE ANALYSIS APPENDIX H POTABLE WATER CUSTOMER ALLOCATION Feb. 11, 2025 Item #8 Page 107 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT iii Tables Table 1 Proposed Water Usage Fees 7 Table 2 Proposed Water Delivery Fee 8 Table 3 Escalation Factors 10 Table 4 Water System Customer Profile 11 Table 5 Forecasted Water Demand by Customer Class (CCF) 12 Table 6 Current Water Rate Revenue ($ millions) 14 Table 7 Offsetting Revenues - Potable Water ($ millions) 14 Table 8 Offsetting Revenues - Recycled Water ($ millions) 14 Table 9 Expenditures - Potable Water ($ millions) 15 Table 10 Expenditures - Recycled Water ($ millions) 16 Table 11 Water Supply Purchases (AF, $ millions) 17 Table 12 Capital Improvement Plan Expenditures - Potable Water ($ millions) 18 Table 13 Capital Improvement Plan Expenditures - Recycled Water ($ millions) 18 Table 14 Capital Improvement Plan Expenditures and Funding - Potable Water ($ millions) 19 Table 15 Capital Improvement Plan Expenditures and Funding - Recycled Water ($ millions) 19 Table 16 User Revenues and Proposed Increases ($ millions) 21 Table 17 Cash Flow Sufficiency Test - Potable Water ($ millions) 22 Table 18 Cash Flow Sufficiency Test - Recycled Water ($ millions) 23 Table 19 Debt Service Coverage Test - Recycled Water ($ millions) 24 Table 20 SDCWA Pass-through Expenses – Fiscal Year Basis ($ millions) 25 Table 21 SDCWA Variable Pass-through Calculation – Calendar Year Basis ($ millions) 26 Table 22 Eligible Costs to Recover Through SDCWA Fixed Pass-through – Potable Water ($ millions) 26 Table 23 SDCWA Fixed Pass-through Calculation – Potable Water ($ millions) 27 Table 24 Calculated Variable Pass-through Revenues – Potable Water ($ millions) 28 Table 25 Calculated Fixed Pass-through Revenues – Potable Water ($ millions) 28 Table 26 Fiscal Year Pass-through Revenue Summary – Potable Water ($ millions) 28 Table 27 Functionalized O&M Expenses - Potable ($ millions) 32 Table 28 Max Day Allocation 35 Table 29 Max Hour Allocation 35 Table 30 Extra Capacity Allocation 36 Table 31 Functional Allocation Factors - Potable 39 Table 32 Fixed Asset Allocation (Plant-in-Service) - Potable ($ millions) 40 Table 33 O&M Allocation to Rate Components - Potable ($ millions) 41 Table 34 Revenue Requirements Allocation to Rate Components - Potable ($ millions) 42 Table 35 Functional Allocation Results Summary - Potable Water ($ millions) 43 Table 36 Unit Cost Calculation - Potable Water ($ millions) 44 Table 37 Customer Class Service Units 44 Table 38 Base Allocation ($ millions) 45 Table 39 Max Day Allocation ($ millions) 45 Table 40 Max Hour Allocation ($ millions) 45 Feb. 11, 2025 Item #8 Page 108 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT iv Table 41 Customer Allocation ($ millions) 46 Table 42 Service Allocation ($ millions) 46 Table 43 Potable Water Customer Allocation Summary, FYE 2025 ($ millions) 47 Table 44 Functionalized O&M Expenses - Recycled ($ millions) 48 Table 45 Functional Allocation Factors - Recycled 50 Table 46 Fixed Asset Allocation (Plant-in-Service) - Recycled ($ millions) 50 Table 47 O&M Allocation to Rate Components – Recycled ($ millions) 51 Table 48 Revenue Requirements Allocation to Rate Components – Recycled ($ millions) 52 Table 49 Functional Allocation Results Summary – Recycled ($ millions) 53 Table 50 Fixed Unit Costs – Potable 55 Table 51 Proposed Monthly Water Delivery Fees – Potable 55 Table 52 Proposed Fixed Unit Costs – Fire 56 Table 53 Proposed Monthly Water Delivery Fees – Fire 56 Table 54 Proposed Single-Family Residential Tier Allotments 57 Table 55 Single-Family Rate Design – Base, Max Day, Max Hour 58 Table 56 Single-Family Rate Design Summary, FYE 2025 58 Table 57 Proposed Multi-Family Residential Tier Allotments 59 Table 58 Multi-Family Rate Design – Base, Max Day, Max Hour 59 Table 59 Multi-Family Rate Design Summary, FYE 2025 60 Table 60 CI&I, Agricultural, and Irrigation Rate Design Summary, FYE 2025 60 Table 61 Fixed Unit Costs – Recycled 61 Table 62 Proposed Monthly Water Delivery Fees – Recycled 61 Table 63 Recycled Water Usage Rate Design Summary, FYE 2025 61 Table 64 Proposed Carlsbad Potable Water Delivery Fees 62 Table 65 Calculated SDCWA Pass-Through Fees 62 Table 66 Proposed Total Potable Water Delivery Fees 63 Table 67 Proposed Potable Water Usage Fees 63 Table 68 Proposed Recycled Water Delivery Fees 64 Table 69 Proposed Recycled Water Usage Fees 65 Table 70 Proposed Fire Service Delivery Fees 65 Table 71 Airport Assets and Capital Needs (Millions) 66 Table 72 Annual Airport Capital Charge Calculation 66 Table 73 Projected Annual Airport Capital Charges 67 Table 74 Airport Service Meters 67 Table 75 Airport Fire Line Connections 67 Table 76 Airport System Capacity Allocation 68 Table 77 Monthly Airport Capital Charge - Service Meters 68 Table 78 Monthly Airport Capital Charge – Fire Line Connections 69 Figures Figure 1 Conceptual Overview of the Rate-Setting Process 3 Figure 2 Rate Revenues with First Year Increase and Restructuring for Pass-through 21 Figure 3 Cost-of-Service Analysis Steps 29 Feb. 11, 2025 Item #8 Page 109 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT POTABLE AND RECYCLED WATER COST-OF-SERVICE STUDY v Abbreviations acre-ft acre per feet ADD Average Day Demand AF acre feet AWWA American Water Works Association Carollo Carollo Engineers, Inc. CCF or ccf hundred cubic feet CI&I Commercial, Institutional, & Industrial CIP Capital Improvement Plan CMWD or District Carlsbad Municipal Water District Desal desalination DSCR Debt Service Coverage Ratio DU Dwelling Unit EWA Encina Wastewater Authority FYE fiscal year ending IAC Infrastructure-Access-Charge M1 Manual Principles of Water Rates, Fees, and Charges: Manual of Water Supply Practices M1 MDD Maximum Day Demand MEU Meter Equivalent Unit MGD or mgd million gallons per day MHD Max Hour Demand MWD Metropolitan Water District of Southern California O&M operations and maintenance PERS Public Employees' Retirement System SCADA Supervisory Control And Data Acquisition SDCWA San Diego County Water Authority SFR Single-Family Residential SRF State Revolving Fund Study Cost-of-Service Study UAL Unfunded Accrued Liability UMAPC Uniform Member Agency Purchase Contract VWD Vallecitos Water District Feb. 11, 2025 Item #8 Page 110 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 1 SECTION 1 INTRODUCTION The Carlsbad Municipal Water District (CMWD or the District) supplies potable and recycled water to approximately 29,000 connections within a 32.3 square mile service area in Southern California. In fiscal year ending (FYE) 2024, the District is projected to deliver approximately 14,250 acre-feet (AF) of potable water and 4,230 AF of recycled water to customers. The District currently purchases its potable water supplies from the San Diego County Water Authority (SDCWA) and in 2016 the CMWD Board entered into a purchase agreement with SDCWA for 2,500 acre-feet per year of desalinated water as local supply. Desalinated water supplies are produced at the Carlsbad Desalination Plant (Desal). Recycled water is produced at the Carlsbad Water Recycling Facility, as well as purchased from the Vallecitos Water District (VWD). 1.1 Study Purpose The District retained Carollo Engineers, Inc. (Carollo) to perform a comprehensive Cost-of-Service Study (Study) of the District’s potable water, recycled water, and wastewater systems and to develop a rate plan for the upcoming five-year period, FYE 2025 through FYE 2029. Although this Study presents a five-year rate projection, the District is adopting rates for the next two or three years at this time. Carollo’s analysis was guided by the policies and practices of the District, industry best practices for cost-of-service analyses as outlined by the American Water Works Association (AWWA), and requirements for establishing water rates within the State of California. The findings and recommendations of this cost-of-service analysis for potable and recycled water are detailed within this report. The findings of the cost-of-service analysis for wastewater are provided by Carollo in a separate report. 1.2 Potable Water Rate Structure Updates The current potable water rate structure has been in place since approximately 2010 with periodic updates to the volumetric rates (usage fee) and fixed charges (delivery fee). Only minimal updates have been made to the underlying rate structure since that time. Historically, the District’s rates have combined costs for internal activities such as operating and maintenance, management, and capital improvement with external costs to purchase water from SDCWA. Since the development of the current rate structure, the District’s operations, cost structure, and demands have evolved, necessitating a fresh look at the rate structure.  Between 2010 and 2023, annual customer demands decreased from approximately 17,000 acre per feet (acre-ft) to 13,500 acre-ft, a 21-percent decrease. This decrease occurred in spite of 5.2-percent growth in the number of connections over that same time. Considering both the growth and the overall demand decrease, annual use per account decreased from 0.61 acre-ft to 0.46 acre-ft, a decrease of approximately 25-percent.  Continued conservation by single family customers has resulted in average monthly consumption decreasing from 13.5 hundred cubic feet (CCF) per month in 2014 to 11.2 ccf per month in 2022. Feb. 11, 2025 Item #8 Page 111 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 2  While demands and water purchases have decreased, the cost for the District to purchase water from SDCWA has increased significantly over time. In 2010, SDCWA accounted for approximately 52-percent of overall operating costs and by 2023, that percentage had risen to 59-percent. Based on SDCWA’s adopted rates for 2025 and the expected customer demands, SDCWA purchases will make up 59-percent of overall operating costs with a further 19-percent of costs related to desalination purchases. Thus, approximately 78-percent of annual operating costs are incurred to purchase supplies from outside entities and therefore largely outside of the District’s control. The financial conditions of SDCWA cause further concern as significant increases in its rates is expected in the coming years to alleviate its own financial stresses. Note: Historical data based on the City of Carlsbad’s 2010 and 2023 Annual Comprehensive Financial Reports and rate models from prior rate setting efforts. The proposed updates to the rate structure address these changes through the inclusion of pass-through charges for SDCWA costs and by including updates to the single family rate tiers. Fixed and variable pass-through charges will recover from the District’s potable customers, the costs incurred to purchase imported water from SDCWA. A monthly fixed pass-through will recover the fixed costs charged to the District by SDCWA. A variable pass-through per CCF will recover the variable supply, transportation, and treatment costs for water purchases. The pass-through charges will allow the District better flexibility and transparency in rate planning as the internal and external costs can be addressed separately. Costs for desalinated water purchases are not included in the pass-through because the take-or-pay contract that governs the purchase amounts and rates helps to stabilize costs to the District. The single family rates will be updated to be based on a two-tier structure rather than the current three- tier structure. This update reflects the current usage patterns of single family customers and the conservation that has occurred since the current tiers were initially developed. It also reflects that a portion of the costs that were previously included in the tiered rates will now be recovered in the pass- through. 1.3 Overview of the Rate Setting Process Rate analyses are performed periodically so that revenues continue to adequately fund utility operations, maintenance, and necessary capital investments, and so that the rates paid by customers accurately reflect the costs of the services that they receive. In California, water rates must adhere to the cost-of-service requirements imposed by Proposition 218 and the State Constitution. Proposition 218 requires that property related fees and charges, including water rates, do not exceed the reasonable and proportional cost of providing the service. The District’s last rate study was completed by Carollo in 2021 and provided rates for FYE 2022 through FYE 2024. Feb. 11, 2025 Item #8 Page 112 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 3 The District also has obligations to safeguard and preserve the State’s limited water resources. Article X (2) of the State Constitution establishes the need to preserve the State’s water supplies and discourage the wasteful or unreasonable use of water by encouraging conservation. To achieve these multi-faceted requirements—rates that must simultaneously be equitable and reasonable while meeting the Districts policy goals— Carollo’s cost-of-service approach tests the adequacy of existing revenues, recommends additional revenues where needed, and develops rates built on comprehensive cost allocation and customer data analyses. Carollo reviewed the District’s current cost-of-service rate setting process. The processes presented below are advocated by the AWWA. While the process is described in a linear step-by-step approach, it is an iterative process, where the ultimate objective is to balance revenues with costs in an equitable manner for customers. 1.3.1 Revenue Requirement Analysis The methodology that the District applies to establish annual rate revenue needs is consistent with industry standards established by the Principles of Water Rates, Fees, and Charges: Manual of Water Supply Practices M1 (M1 Manual), which is published by AWWA, a national industry trade group that makes recommendations on generally accepted practices in the water and sewer industry. The revenue requirements analysis compares the forecasted revenues of the utility to its forecasted operating and capital reserve costs to determine the adequacy of the existing rates to recover the utility’s costs. If any shortfalls exist, rates may need to increase. 1.3.2 Water Demand Analysis Forecasting water sales and purchases is a critical component in the rate setting process. As part of the budget process, the District forecasts the expected water usage based on historical demand, proposed changes to rates, regulatory impacts, weather, and other variables. These forecasted water demands are then compared against forecasted revenue requirements, and rates are developed in order to recover costs. Future demands are based on historic sales and escalated for projected growth and per capita demand changes. Revenue Requirement AnalysisCompares existing revenues of the district to its operating, capital reserves, and policy driven costs to establish the adequacy of the existing cost recovery levels. Water Demand AnalysisForecasts water sales based on historical billings, modifications to the rate structure, and any regulatory restrictions. Cost-of-Service AnalysisIdentifies and apportions annual revenue requirements to functional components based on its application to the District's system, and then allocates to customer classes and tiers based on system usage. Rate Design & CalculationConsiders both the level and structure of the rate design to collect the distributed revenue requirements from each class of service. Rate AdoptionThe Study presents the basis for the rates proposed to be adopted in compliance with Proposition 218. Figure 1 Conceptual Overview of the Rate-Setting Process Feb. 11, 2025 Item #8 Page 113 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 4 1.3.3 Cost-of-Service Analysis After determining the revenue requirement, this step outlines the cost to deliver each unit of water and to serve each customer. This process takes each item in the water system’s budget and allocates each item’s cost based on what function is served. For example, some cost items support the ability to deliver additional, more expensive water, while other costs are incurred to provide customer service or to fund capital replacement. Organizing the budget in terms of end function allows the creation of a nexus between the budget item and the rate. This organization bridges the costs incurred by the District and the unique and varied benefits delivered to each customer. 1.3.4 Rate Design Analysis & Calculation The rate design involves developing a rate structure that proportionately recovers costs from customers. The rate structure must be tailored to the customer demand and account profile; built upon a nexus between costs and the rates that customers are charged; resilient enough to handle changing cost and demand scenarios; and flexible enough to meet multiple other unique criteria. The rate design allows the District to develop unit costs that can then be layered based on requirements to meet customer needs. This is a critical process for establishing tiered rates, as increasing usage incurs additional supply, infrastructure, operating, and maintenance costs making excess water more expensive to provide. The final part of the rate design analysis is the rate calculation. This provides the nexus between the revenue requirements, the functional cost allocation, and the final rates that customers are charged. This process connects planned expenditures to the designed rates by establishing rates to match the estimated revenue generation with expenditures. 1.3.5 Rate Adoption To comply with the requirements of Proposition 218, the results of the Study are documented in this Report to support the District’s public outreach regarding the proposed changes and provide the rationale and justifications behind the changes and the anticipated financial impacts. While the document should be easily understood, it must provide sufficient detail to fully support and document the rate setting process. In order to adjust rates, the District must provide a written notice 45 days prior to adoption of the rates. During this 45-day notice period, any property owner or tenant directly responsible for the payment of water or sewer service fees may submit a written protest to the proposed rate increases. If written protests against the proposed rate increases are not presented by a majority of affected District property owners or customers, the Board of Directors will be authorized to adopt the rate increases. As the following sections of this Report will demonstrate, this process creates a fair and equitable foundation for each charge and rate that the District levies. 1.4 Project Objectives The Study aims to achieve several objectives related to the District’s rate setting, cost recovery, and financial planning methodologies. Specific objectives for the project include the following. Feb. 11, 2025 Item #8 Page 114 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 5  Review of the current financial plans for the District’s potable and recycled water systems to identify opportunities to improve long-term financial standing.  Evaluation and development of policy recommendations for the existing potable water and recycled water rate structures to achieve the objectives of the District. Namely, the rate structure should: » Be easy to understand. » Maintain continued compliance with cost-of-service requirements.  Thorough documentation of the cost-of-service analysis, including the functional allocation and classification of costs, and the allocation of costs among customer classes.  Preparation of a rate design framework that proportionately recovers costs from the District’s customers and meets the goals outlined above.  Develop a potable rate structure that separates the costs the District incurs for water purchased from SDCWA. The Study identifies what actions the District should implement to maintain the financial viability of the system in light of changing consumer demands, increasing purchased water costs, regulatory requirements, and future infrastructure investments. 1.4.1 Rate Study Best Practices and Legal Considerations Rates are typically designed to achieve multiple objectives. While industry standards provide a basis for testing reasonableness, this basis does not on its own meet legal requirements—particularly the unique legal requirements for agencies in California. Within the cost-of-service approach and legal requirements, an agency’s practices form the basis of the detailed rate structure design elements, making it distinct to the agency and the community it serves. Within the District's rate structure, these policies and practices encompass the entire structure including the selection of rate design, methodology for allotting the amount of water use within customer tier allocations, and how costs are allocated to be recovered in the upper tiers. With its rate structure, the District is able to satisfy its policy and practices objectives and proportionally recover costs from its customers. 1.5 Current Rate Structure The CMWD maintains separate rate structures for potable and recycled water customers. The following section identifies how the District is currently charging their potable and recycled water customers. Currently, potable and recycled water customers have two components to their bill: 1. Water Delivery Fee. 2. Water Usage Fee. The Water Delivery Fee is a fixed monthly charge. It is assessed based on meter size and is intended to capture the costs associated with providing customer service for each account, as well as a portion of the costs of providing and maintaining the system capacity to serve each account. The customer service component of the charge is equal to all customers while the capacity component varies based on meter equivalent ratios as identified in the AWWA M1 Manual. Feb. 11, 2025 Item #8 Page 115 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 6 The Water Usage Fee is a volumetric charge based on the amount of water consumed each month, as measured by each customer’s water meter. It is intended to capture the costs of the water utility that vary with the amount of water provided. Customers with private fire protection lines pay a monthly fixed charge based on the size of that connection to recover the capacity and account service costs required to serve that connection. The account component is equal for all line sizes, the capacity component varies by connection size and is determined using fire line connection specific ratios as determined in the AWWA M1 Manual. 1.6 Project Findings and Recommendations Based on the analysis projections, the District will need to increase water rate revenues to keep pace with increases in wholesale water supply costs, inflationary increases in operating expenses, and necessary capital improvements to the District’s systems. The use of reserves, grant awards, and low interest financing to fund a share of capital projects will help to mitigate the necessary level of rate increases. It is recommended that the District reviews its revenues and expenditures on an annual basis to verify that the implemented rates are adequately recovering costs. The District has historically set rates on a calendar year basis. Tables and figures throughout the report show results in fiscal years to match the District’s accounting practices. The key findings and recommendations are as follows:  Proposed Potable Water Rate Structure: The District has decided to adjust water rates to be the sum of a volumetric water consumption charge plus the pass through of SDCWA Infrastructure- Access-Charge (IAC), a fixed monthly charged assessed based on meter size to maintain connections to the SDCWA system. Due to cost-of-service changes for this pass-through, Carollo proposes reducing the single family residential (SFR) tier structure from three tiers to two, now that SDCWA costs are no longer included in the tiered rates. All other customers’ proposed user rates largely retain the District’s current rate structure.  Rate Implementation Timing: “Subsequent to the development of the rates proposed in this report, the District opted to delay rate increased until July 1, 2025. This will allow time to update the customer billing system to include the pass-through charges. Rather than recalculating rates, the implementation of the rates developed based on a January 1, 2025 increase will be delayed by six months. The District will resume its typical calendar year rate increases starting January 1, 2026. The delay in 2025 will result in decreased revenues of approximately $2.9 million for potable water and $0.2 million for recycled water which will be covered with reserves. Future increases, beyond FYE 2027 may need to be higher than those presented to replenish the reserves.  Proposed Potable Water Rate Revenue Increases: With the separation of SDCWA costs into the pass-through, the overall increase in rate revenues will now reflect the weighted average of the pass-through increases and the increases to the District’s internal rates. Based on the results of the study, the proposed potable water rates reflect overall revenue increases of 13.2-percent on January 1, 2025 (delayed to July 1, 2025), 13.4-percent on January 1, 2026, 6-percent on January 1, 2027, and 5-percent on January 1, 2028 and January 1, 2029. Rate increase drivers include increases in SDCWA costs, inflationary increases in operating expenses, and continued funding of capital and reserves. Feb. 11, 2025 Item #8 Page 116 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 7 » SDCWA’s adopted increases for calendar year 2025 will result in an increase in costs for the District of approximately 15-percent. The study also assumes a calendar year increase of 15-percent for 2026 and increases between 4-percent and 5-percent thereafter based on SDCWA’s long-term forecasts. » Internal operating expenses have faced inflationary pressure higher than the implemented rate increases over the past several years. Increases for the District’s internal rates are necessary to meet and maintain positive operating cash flows and the minimum operating reserve in light of this inflation. Forgoing increases would result in ongoing operating deficits that would require larger increases to address in later years. Further, forgoing rate increases could result in the District not meeting its debt coverage obligations on the recycled water loans which consider both potable and recycled water revenues. Finally, forgoing increases would result in less funding for Capital Improvement Plan (CIP) critical to replacing aged infrastructure and minimizing main breaks and subsequent interruptions in water delivery. » The District has identified capital projects necessary for the continued reliable and efficient operation of the system, with average costs of approximately $11 million per year over the next five years. The impact of the CIP on rate increases over the next five years will be minimal as the District has utilized its replacement and connection fee reserves to help stabilize rates.  Recycled Water Rate Revenue Increases: Annual user rate revenue increases of 4.5-percent for FYE 2025 through FYE 2029 will be required to fund recycled water activities. The proposed user rates largely retain the District’s current rate structure and will include a cost-of-service adjustment in FYE 2025 based on the updated cost-of-service allocations followed by an across-the-board increase in FYE 2026 and beyond. The recycled water rate structure does not include a separate pass-through charge. Table 1 and Table 2 outline the current and proposed water usage and water delivery fees. Table 1 Proposed Water Usage Fees Customer Class Current Rates Proposed Rates – Delayed to July 1, 2025 Tier Limit Rate Tier Limit Total Rate SDCWA Pass-Through Carlsbad Potable Water Usage Fees Single Family Residential 1 10 ccf $4.00 1 10 $5.19 $4.01 $1.18 2 18 ccf $4.97 2 >10 ccf $5.52 $4.01 $1.51 3 > 18 ccf $7.69 3 n/a - - - Multi-Family Residential 1 5 ccf $3.95 1 5 $5.19 $4.01 $1.18 2 10 ccf $6.13 2 > 10 ccf $5.37 $4.01 $1.36 Commercial, Institutional, & Industrial n/a All ccf $4.52 n/a All ccf $5.31 $4.01 $1.30 Agricultural n/a All ccf $4.89 n/a All ccf $5.41 $4.01 $1.40 Irrigation n/a All ccf $5.69 n/a All ccf $5.45 $4.01 $1.44 Recycled Water Usage Fees Recycled n/a All ccf $4.26 N/A All ccf $4.43 n/a n/a Feb. 11, 2025 Item #8 Page 117 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 8 Table 2 Proposed Water Delivery Fee Meter Size Current Rates Proposed Rates – Delayed to July 1, 2025 Potable Monthly Charge Total Monthly Charge SDCWA Carlsbad 5/8" $28.94 $33.68 $16.66 $17.02 3/4" $38.84 $43.56 $22.77 $20.79 1" $58.65 $65.99 $37.66 $28.33 1.5" $108.17 $121.60 $74.43 $47.17 2" $167.60 $190.64 $120.85 $69.79 2 1/2" $236.93 $269.57 $173.39 $96.18 3" $306.26 $348.50 $225.93 $122.57 4" $504.35 $576.27 $378.31 $197.96 6" $999.57 $1,130.71 $744.26 $386.45 8" $1,593.84 $1,821.10 $1,208.47 $612.63 10" $2,287.15 $2,628.02 $1,751.52 $876.50 Recycled Monthly Charge Current Rates Monthly Charge 5/8" $25.36 $27.37 3/4" $35.54 $38.30 1" $55.91 $60.16 1.5" $106.81 $114.81 2" $167.90 $180.39 2 1/2" $239.17 $256.91 3" $310.44 $333.42 4" $514.07 $552.02 6" $1,023.14 $1,098.52 8" $1,634.02 $1,754.33 10" $2,346.71 $2,519.43 Fire Monthly Charge Current Rates Monthly Charge 5/8" $8.67 $9.37 3/4" $8.79 $9.39 1" $9.02 $9.46 1.5" $9.62 $9.70 2" $10.33 $10.11 2 1/2" $11.15 $10.74 3" $11.98 $11.60 4" $14.35 $14.17 6" $20.26 $23.39 8" $27.36 $39.29 10" $35.65 $63.20 12" $55.76 $96.35 Feb. 11, 2025 Item #8 Page 118 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 9 The proposed rates shown in the previous tables include a cost-of-service adjustment and increases. For 2025 specific rates vary from the effective 13.2-percent (potable, inclusive of internal and pass-through adjustments) and 4.5-percent (recycled) overall rate revenue increases due to the updated cost of serve allocations and rate structure updates. Proposed Carlsbad rates for 2026 and subsequent years are calculated by applying the proposed overall rate revenue increase to the 2025 rate proportionally. The proposed rates for subsequent years are shown in Table 64 through Table 70. Estimated SDCWA Pass-through rates for future years are calculated based on the projected costs from SDCWA and expected water sales and number of accounts. Implemented pass-through charges may vary from those presented as they will be based on the actual rates and charges adopted by SDCWA. Customers with private fire protection connections are charged a fixed monthly fee based on the size of their connection. Feb. 11, 2025 Item #8 Page 119 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 10 SECTION 2 INPUTS AND ASSUMPTIONS Financial, operational, and billing information provided by the District serves as the backbone of the revenue requirement and cost-of-service analysis. The projections developed for this analysis are based on several sources of information including the budgeted revenues and expenditures for FYE 2025, actual revenues and expenditures from several prior fiscal years, outstanding debt obligations, water purchase records, and other pertinent information such as the City Council’s Utilities Reserve Policy. The analyses were completed by adding supplemental information and calculations to the District’s existing financial models. 2.1 Forecast Assumptions The escalation factors used in this analysis are based on a review of both long-term and recent cost escalation factors from the Engineering News-Record Index, an industry benchmarking resource, and informed by input from Carlsbad staff to reflect realized cost escalations. Other costs were escalated based on recent and specific cost trends. The escalators used for the Metropolitan Water District (MWD) and SDCWA pass-through costs are presented in Appendix B of this Study. Other escalation factors include account growth and changes in per account demands from each customer class. These factors for both potable and recycled water are presented in Table 3. Table 3 Escalation Factors Escalation Factor FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 General Inflation 4.0% 2.5% 2.5% 2.5% 2.5% Labor Inflation 4.0% 3.0% 3.0% 3.0% 3.0% Labor - PERS (Normal Cost) 13.2% 13.2% 13.2% 13.2% 13.2% Labor - PERS (UAL) 17.0% 16.8% 16.6% 16.5% 16.3% Labor - Health Insurance 6.4% 6.1% 5.9% 5.7% 5.7% Chemicals Inflation 5.0% 5.0% 5.0% 5.0% 5.0% Utilities Inflation 5.0% 5.0% 5.0% 5.0% 5.0% Construction Inflation 2.5% 2.5% 2.5% 2.5% 2.5% Property Tax Increase 3.0% 3.2% 3.3% 3.0% 3.1% Depreciation Funding 1.2% 1.2% 1.2% 1.2% 1.2% Interest Income 2.5% 2.5% 2.5% 2.5% 2.5% Customer Growth 0.6% 0.2% 0.4% 1.0% 1.0% Notes: PERS – Public Employees’ Retirement System; UAL – Unfunded Accrued Liability Feb. 11, 2025 Item #8 Page 120 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 11 2.2 Potable and Recycled Water Customer Base Detailed customer billing records for July 2019 through June 2022 were analyzed along with other summary level data to develop customer demand and account projections for the study. After discussions with the District, Carollo applied growth and price out adjustments (to correct the customer data to the actual revenues collected) to project the number of accounts for FYE 2025. Cost of service allocations and rate design allocations were performed using projected accounts and demands for FYE 2025. Table 4 summarizes the projected FYE 2025 number of accounts and demand by customer class, including the percentage of the totals. Currently, the District serves approximately 28,300 potable water accounts and 980 recycled water accounts. Water demands for FYE 2025 are expected at 6.21 million ccf of potable water and 1.85 million ccf of recycled water demands. Table 4 Water System Customer Profile Customer Class Number of Accounts Account Percentage of Total FYE 2025 Demand (ccf) Demand Percentage of Total Single Family Residential 24,521 83.7% 3,361,234 41.7% Multi-Family Residential 1,284 4.4% 817,637 10.1% Commercial, Institutional, & Industrial (CI&I) (1) 1,707 5.8% 1,252,320 15.5% Agricultural 12 0.0% 81,534 1.0% Irrigation 793 2.7% 702,011 8.7% Subtotal: Potable Water 28,317 6,214,735 Recycled Water 978 3.3% 1,852,895 23.0% Total Water Service Customers 29,295 100.0% 8,067,630 100.0% Private Fire Protection Connections 1,116 Notes: (1) CI&I – Commercial, Institutional, & Industrial, Temporary accounts are included in this category. (2) Line or column totals may not tie due to rounding. 2.2.1 Water Demand Forecast Water demand drives several key components of the revenue requirement analysis, as a large portion of the District’s water revenues and operations and maintenance (O&M) costs are tied to the amount of water usage. Changes in demands for existing customers are not expected and thus the forecasted water demand was calculated using the customer growth escalation factor presented in Table 3. Table 5 shows the projected water demands by customer class for FYE 2025 through FYE 2029. Detailed projections of customer accounts and demands are included for reference in Appendix A. Feb. 11, 2025 Item #8 Page 121 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 12 Table 5 Forecasted Water Demand by Customer Class (CCF) Customer Class FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026 Potable Water Demands Single Family Residential 3,361,234 3,368,511 3,376,457 3,405,566 3,437,943 Multi-Family Residential 817,637 819,407 821,340 828,421 836,297 CI&I (1) 1,252,320 1,255,392 1,268,512 1,286,310 1,302,463 Agricultural 81,534 81,711 81,903 82,610 83,395 Irrigation 702,011 703,531 705,190 711,270 718,032 Total Potable Water Demands 6,214,735 6,228,552 6,253,402 6,314,176 6,378,129 Recycled Water Demands 1,852,895 1,856,907 1,861,287 1,877,333 1,895,181 Total All Customers 8,067,630 8,085,459 8,114,689 8,191,509 8,273,310 Notes: (1) Demands of temporary accounts is included in this category. (2) Line or column totals may not tie due to rounding. Feb. 11, 2025 Item #8 Page 122 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 13 SECTION 3 REVENUE REQUIREMENT ANALYSIS The revenue requirement analysis is a comprehensive test of a utility’s fiscal health, scrutinizing the adequacy of current revenues, and setting the basis for rate planning. It reviews the utility’s revenues, expenses, debts, and reserve policies, and other requirements assessing the viability of each metric going forward. Where cash flows and balances are insufficient, the revenue requirement analysis determines the needed additional cash flows to meet all funding goals. The District’s FYE 2025 budget expenses serve as the base year for O&M costs. Furthermore, Carollo collected information related to current cash and restricted fund balances and policies, the budgeted capital improvement plan expenditures, and all other operating and non-operating future revenues and expenditures. Once the revenue requirement is established by compiling all of the District’s cost drivers, three tests are utilized to define the annual revenues necessary. 1. The cash flow sufficiency test looks for a net positive cash flow at the end of each fiscal year. This test looks at whether revenues exceed expenses; when they do not, this test recommends additional revenue. 2. The second test is the debt service coverage test. Utility bond or loan issuances regularly include a stipulation that the agency maintain sufficient cash flows to cover the planned debt service, plus an additional percentage of that debt service, typically between 25 and 40 percent. Debt coverage is often presented as a ratio, for example a 25 percent coverage target is shown as 1.25x. 3. The third test is the reserve sufficiency test which determines whether projected cash balances are sufficient to guard the utility in the event of unforeseen costs or revenue shortfalls. As an essential service provider, the District needs to maintain resources to continue water service in the event of natural disasters or other emergencies. Reserves provide a source of funds for immediate repairs or other needs so that disruptions to service can be minimized or avoided. 3.1 Operating Revenues The District’s primary source of water revenues is water service fees in the form of monthly fixed charges per meter, volumetric charges per CCF consumed, and a fixed pass-through rate that recover costs from SDCWA. Approximately 86 percent of revenues are generated by user rates, including both internal and pass-through rates. The remaining 14 percent of revenue is generated from a variety of sources including administrative fees, tax revenues, and investments. Operating revenues were projected for the next five years by applying the escalation factors outlined in Table 3 to the District’s FYE 2025 budgeted revenues. Table 6 shows the District’s projected potable and recycled water rate revenues for FYE 2025 through FYE 2029, before applying any proposed rate increases. Increases in commodity and delivery charge revenues are projected based on customer growth. Recycled water revenues escalate in the same manner. Currently, the potable water rate revenues cover both internal District costs as well as external costs for water purchases. As discussed later in this study, the proposed rates will separate rates and revenues associated with potable water purchases from those for internal activities. Feb. 11, 2025 Item #8 Page 123 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 14 Table 6 Current Water Rate Revenue ($ millions) Revenue Item FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 Potable Water Commodity Charges $29.3 $29.4 $29.5 $29.8 $30.1 Delivery Charges $13.5 $13.5 $13.5 $13.7 $13.8 Total Potable Water $42.8 $42.9 $43.1 $43.5 $43.9 Recycled Water Commodity Charges $7.9 $7.9 $7.9 $8.0 $8.1 Delivery Charges $1.4 $1.4 $1.5 $1.5 $1.5 Total Recycled Water $9.3 $9.3 $9.4 $9.4 $9.5 Notes: (1) Line or column totals may not tie due to rounding. In addition to above rate revenues above, the District also receives other offsetting revenues. Table 7 summarizes the projected offsetting revenues for the potable water funds, and Table 8 summarizes the projected offsetting revenues for the recycled water funds. Table 7 Offsetting Revenues - Potable Water ($ millions) Revenue Item FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 Non-Rate Charges for Services $0.41 $0.46 $0.47 $0.49 $0.50 Tax Revenues $3.68 $3.80 $3.92 $4.04 $4.17 Licenses and Permits $0.00 $0.00 $0.00 $0.00 $0.00 Intergovernmental $0.03 $0.03 $0.03 $0.03 $0.03 Fines & Forfeitures $0.18 $0.18 $0.19 $0.19 $0.19 Income from Prop & Investments $2.46 $1.90 $1.70 $1.57 $1.44 Interdepartmental $0.05 $0.05 $0.05 $0.05 $0.05 Other Revenues $0.10 $0.10 $0.10 $0.11 $0.11 Total Offsetting Operating Revenues $6.90 $6.51 $6.46 $6.47 $6.49 Developer Connection Fees $1.30 $0.45 $0.83 $2.23 $2.40 Notes: (1) Line or column totals may not tie due to rounding. Table 8 Offsetting Revenues - Recycled Water ($ millions) Revenue Item FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 Non-Rate Charges for Services $0.001 $0.001 $0.001 $0.001 $0.001 Intergovernmental $0.000 $0.000 $0.000 $0.000 $0.000 Fines and Forfeitures $0.086 $0.088 $0.090 $0.092 $0.094 Income from Property & Investments $0.097 $0.106 $0.107 $0.077 $0.049 Interdepartmental $0.011 $0.011 $0.011 $0.012 $0.012 Other Revenues $0.863 $0.891 $0.921 $0.948 $0.977 Other Financing Sources $0.000 $0.000 $0.000 $0.000 $0.000 Total Offsetting Revenues $1.058 $1.098 $1.130 $1.130 $1.134 Notes: (1) Line or column totals may not tie due to rounding. Feb. 11, 2025 Item #8 Page 124 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 15 3.2 Operating Expenses Most operating expenses were projected for the next five years by applying the escalation factors outlined in Table 3 to the District’s FYE 2024 budgeted expenditures. Costs for water purchases from outside agencies were calculated based on projected water demands and wholesale rates. Table 9 and Table 10 illustrate operating expenditures over the five-year projection period for potable and recycled water, respectively. Potable operating expenses are projected to increase approximately $18.9 million by FYE 2029. The increases are largely due to the rise in purchased water costs. Throughout this Study period, there are no transfers to Capital Reserve. The transfers will be paused as existing reserve levels are sufficient to meet capital needs and to mitigate rate increases over the study period. These transfers are projected to begin again in FYE 2030. Recycled operating expenses are projected to increase approximately $1.0 million over the projection period. However, that increase in operating costs will be offset by a decrease in overall debt service as the 2005 and 2006 State Revolving Fund (SRF) loans are fully repaid in 2025 and 2027, respectively. Debt service for new SRF loans will begin during the study period and total approximately $0.5 million per year. However, the repayment of the 2005 and 2006 loans will still result in an overall decrease in debt service. Detailed projections of O&M costs are included for reference in Appendix D. Table 9 Expenditures - Potable Water ($ millions) Expense Item FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 Internal Expenses Personnel $5.19 $5.36 $5.53 $5.71 $5.90 Desal Purchases $9.98 $10.94 $11.22 $11.51 $11.80 Maintenance & Equipment (w/o depreciation) (1) $6.48 $6.78 $6.92 $7.09 $7.27 Capital Outlay $0.05 $0.05 $0.05 $0.06 $0.06 Rate Funded Capital $0.00 $0.00 $0.00 $0.00 $4.14 Pass-Through Expenses SDCWA Purchases $23.59 $26.87 $29.49 $30.95 $32.40 SDCWA & MWD Fixed Charges $8.09 $9.64 $10.57 $11.01 $11.42 Total Operating Expenses $53.39 $59.64 $63.79 $66.33 $72.98 Notes: (1) Value is presented without depreciation since it is not a cash expense. (2) Line or column totals may not tie due to rounding. Feb. 11, 2025 Item #8 Page 125 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 16 Table 10 Expenditures - Recycled Water ($ millions) Expense Item FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 Personnel $1.96 $2.03 $2.09 $2.16 $2.23 Recycled Water Purchases (VWD) $2.94 $3.93 $4.12 $4.33 $4.55 Recycled Water Costs (EWA) $1.93 $1.86 $1.91 $1.96 $2.01 Maintenance & Equipment (w/o depreciation) (1) $2.10 $2.16 $2.20 $2.27 $2.33 Capital Outlay $0.01 $0.01 $0.01 $0.01 $0.01 Debt Service $2.39 $1.92 $1.92 $0.69 $0.69 Rate Funded Capital $0.00 $0.00 $0.00 $1.09 $0.93 Total Operating Expenditures $11.32 $11.91 $12.26 $12.50 $12.74 Notes: (1) Value is presented without depreciation since it is not a cash expense. (2) Line or column totals may not tie due to rounding. 3.3 Water Supply The District obtains its potable water from SDCWA, which in turn has two main sources: imported water (largely from the Colorado River) and locally produced water from the Carlsbad Desalination Plant. Desalinated water deliveries began in 2016 per the Uniform Member Agency Purchase Contract (UMAPC). The District is required to purchase a minimum 2,500 acre-feet of desalinated water per year, and purchases are expected to remain at that level through FYE 2029. The District produces recycled water at the Carlsbad Water Recycling Facility (CWRF) and purchases recycled water from VWD. Recycled water purchased from Vallecitos is strategically used in portions of the CMWD service area closest to interagency interties and to reduce pumping costs between different elevations. The District is developing a new take-or-pay agreement with VWD for 2,700 acre-feet per year through the study period. The agreement will also set rates for the FYE 2026 at FYE 2027 at $1,454 per acre-foot, $1,527 per acre-ft, respectively. After that time, VWD purchase rate increases are assumed at 5- percent per year. The agreement to purchase 2.700 acre-ft per year from VWD would result in a decrease in the amount of recycled water sourced from the Encina Wastewater Authority (EWA). The District expects to cost savings due to the reduction in EWA recycled water production. For the purpose of this analysis, the reduction in costs from EWA is set at 7-percent based on EWA’s budget for the Carlsbad Water Recycling Facility and the expected decrease in water produced at that facility. Table 11 presents a summary of the District’s forecasted potable and recycled water purchases in FYE 2025 through FYE 2029. Detailed projections of water purchases and costs are included for reference in Appendix B. Feb. 11, 2025 Item #8 Page 126 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 17 Table 11 Water Supply Purchases (AF, $ millions) Source of Supply FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 Potable Water Potable Water Demands 14,267 14,299 14,356 14,495 14,642 Unaccounted for Water (system loss) 713 715 718 725 732 Total Potable Water to Purchase 14,980 15,014 15,074 15,220 15,374 SDCWA Water Purchases (AF) 12,480 12,514 12,574 12,720 12,874 Fixed Charges $8.1 $9.6 $10.6 $11.0 $11.4 Variable Charges $23.6 $26.9 $29.5 $30.9 $32.4 Total SDCWA Purchase Costs $31.7 $36.5 $40.1 $42.0 $43.8 Desalination Water Purchases (AF) 2,500 2,500 2,500 2,500 2,500 Fixed Charges $5.6 $6.3 $6.8 $7.0 $7.1 Variable Charges $3.4 $3.5 $3.6 $3.7 $3.8 Other Charges $0.6 $0.6 $0.6 $0.7 $0.7 Total DESAL Purchase Costs $9.6 $10.4 $11.0 $11.3 $11.6 Recycled Water Recycled Water Demands 4,254 4,263 4,273 4,310 4,351 Unaccounted for Water 213 213 214 215 218 Total Recycled Water to Purchase 4,466 4,476 4,487 4,525 4,568 Water from CWRF 2,080 1,776 1,787 1,825 1,868 VWD Water Purchases (AF) 2,386 2,700 2,700 2,700 2,700 VWD Charges $2.9 $3.9 $4.1 $4.3 $4.5 EWA Charges $1.9 $1.9 $1.9 $2.0 $2.0 Total Recycled Purchase Costs $4.9 $5.8 $6.0 $6.3 $6.6 Total Water Purchases $46.2 $52.7 $57.1 $59.6 $62.0 Notes: (1) Line or column totals may not tie due to rounding. 3.4 Capital Improvement Plan Funding The District finalized a master plan for the potable and recycled water systems in 2019 as well as an asset management plan and a Supervisory Control and Data Acquisition (SCADA) master plan. Ongoing planning efforts have continued since that time to further identify and prioritize projects. Based on the results of those studies, the District plans to increase capital investment over the coming years to repair and replace critical infrastructure and maintain water system reliability. Feb. 11, 2025 Item #8 Page 127 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 18 Prior to the completion of the plans, the District’s CIP spending had been limited. However, the District continued to set aside funds for capital projects throughout that time in anticipation of increased investments. This prudent financial planning, which led to the reserve balance the District has accumulated, will allow for capital improvements to be completed for the potable water system while minimizing rate impacts. Table 12 and Table 13 summarize the projected CIP expenditures for the potable and recycled water systems. Over the study period, potable system improvements will total $54.8 million and recycled water improvements will total $9.4 million. The capital costs develop by the City are adjusted to the midpoint of construction. Based on discussion with the City, the funding analysis includes an additional 2.0-percent annual cost escalation factor for FYE 2025 and FYE 2026 to account for increases in construction and contracting costs. A detailed summary showing the District’s projects can be found in Appendix C. Table 12 Capital Improvement Plan Expenditures - Potable Water ($ millions) CIP FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 Connection Fee Fund Projects $1.8 $4.4 $0.6 $5.0 $5.0 Replacement Fund Projects $7.0 $6.2 $4.8 $10.0 $10.0 Total Potable Water Projects $8.6 $10.1 $5.2 $15.0 $15.0 Total Escalated Cost $8.8 $10.6 $5.5 $15.0 $15.0 Notes: (1) Line or column totals may not tie due to rounding. Table 13 Capital Improvement Plan Expenditures - Recycled Water ($ millions) CIP FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 Connection Fee Fund Projects $2.8 $2.0 $0.8 $1.9 $0.9 Replacement Fee Fund Projects $0.3 $0.4 $0.0 $0.0 $0.0 Total Recycled Water Projects $3.1 $2.4 $0.8 $1.9 $0.9 Total Escalated Cost $3.2 $2.5 $0.8 $2.0 $0.9 Notes: (1) Line or column totals may not tie due to rounding. The District’s potable and recycled CIP expenses and funding are shown in Table 14 and Table 15. The transfers and replacement funding line item represents the transfer of operating revenues to the capital reserve for depreciation funding as well as any planned additional transfers for cash funding of capital. An important aspect of the capital funding plan is that the District intends to draw on both existing replacement reserves and existing connection fee reserves to fund capital projects. Since the implementation of the District’s existing connection fees, reduced water consumption due to conservation and changes in planned developments have reshaped the CIP projects that are necessary to serve new users. While some of the projects initially conceived and included in the connection fees have changed, other projects have been modified or expanded to take their place. Further, replacements and upgrades to the District’s existing infrastructure are required to maintain the assets that serve new users and to maintain the excess system capacity that will be needed to serve users that have not yet connected to the system. Feb. 11, 2025 Item #8 Page 128 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 19 To these ends, the District plans to allocate existing connection fee reserves, as well as a share of future connection fees, to pay for replacement projects that have an excess capacity component. The District plans to update their connection fees in a future study within the next twelve months. The District continually seeks sources of outside funding from grants and low interest loans to offset the rate impacts of capital funding. The District has secured $2.75 million and $1.8 million in grants for recycled water projects in FYE 2025 and 2026, respectively. Additionally, a final $3 million draw from SRF loans is projected for FYE 2025. The projected debt service associated with that draw is included in the “Debt Service” line of Table 10. Table 14 Capital Improvement Plan Expenditures and Funding - Potable Water ($ millions) FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 Total Potable Water Projects (Escalated) $8.8 $10.6 $5.5 $15.0 $15.0 Amount to be Rate Funded $0.0 $0.0 $0.0 $0.0 $4.1 Amount to be Funded with Reserves $8.8 $10.6 $5.5 $15.0 $10.9 Beginning Capital Funds Balance (Connection Fee and Replacement) $69.3 $61.8 $51.7 $47.1 $34.3 Transfers and Replacement Funding $0.0 $0.0 $0.0 $0.0 $0.0 Connection Fees $1.3 $0.4 $0.8 $2.2 $2.4 Use of Replacement Funds for Projects ($7.0) ($6.2) ($4.8) ($10.0) ($5.9) Use of Connection Fee Funds for Projects ($1.8) ($4.4) ($0.6) ($5.0) ($5.0) Year-End Balance $61.8 $51.7 $47.1 $34.3 $25.9 Change in Reserves ($7.5) ($10.1) ($4.6) ($12.8) ($8.5) Notes: (1) Line or column totals may not tie due to rounding. Table 15 Capital Improvement Plan Expenditures and Funding - Recycled Water ($ millions) FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 Total Recycled Water Projects (Escalated) $3.2 $2.5 $0.8 $2.0 $0.9 Amount to be Rate Funded $0.0 $0.0 $0.0 $1.1 $0.9 Amount to be Funded with Reserves, Debt, and Grants $3.2 $2.5 $0.8 $0.9 $0.0 Beginning Capital Funds Balance (Connection Fee and Replacement) $3.4 $4.6 $3.2 $1.8 $0.9 Transfers and Replacement Funding(1) ($1.3) ($0.8) ($0.5) $0.0 $0.0 Grants $2.8 $1.8 $0.0 $0.0 $0.0 SRF Loan Disbursements $3.0 $0.0 $0.0 $0.0 $0.0 Connection Fees $0.0 $0.0 $0.0 $0.0 $0.0 Use of Replacement Funds for Projects ($3.2) ($2.1) ($0.8) ($0.9) $0.0 Use of Connection Fee Funds for Projects $0.0 ($0.4) $0.0 $0.0 $0.0 Year-End Balance $4.6 $3.2 $1.8 $0.9 $0.9 Change in Reserves $1.3 ($1.5) ($1.3) ($0.9) $0.0 Notes: (1) Assumed transfer of reserves from rate revenues to Operating Fund to balance reserves. (2) Line or column totals may not tie due to rounding. Feb. 11, 2025 Item #8 Page 129 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 20 3.5 Recommended Revenue Requirements Rate revenue increases will be necessary in order to meet the District’s projected operating needs and to continue to fund capital investments. The increases for potable water are primarily driven by increasing purchased water cost from SDCWA and the delivery of desalinated water pursuant to the UMAPC. The increases for recycled water are driven primarily by increased purchases from VWD as well as increased treatment costs from EWA. The recommended increases will enable the District to continue to fully fund its capital program and meet its debt service requirements. Furthermore, by initiating annual increases, the District can mitigate larger increases in the future and avoid the need for substantial debt issuances. 3.5.1 Cash Flow Sufficiency Test The cash flow sufficiency test evaluates revenues received by the District to see that they are adequately covering both operating and non-operating expenses. Table 17 and Table 18 provide the cash flow sufficiency tests for potable and recycled water, respectively. The financial analysis included projections for a five-year period, and the District may adopt rate updates for a period of up to five years. 3.5.1.1 POTABLE WATER Based on the analysis, rate increases are needed to adequately recover internal revenue requirements as well as pass-through costs from SDCWA. Figure 2 shows the revenue generated, over a full year, by the existing rate structure compared to the proposed rate structure for 2025. As shown, the current rate structure combines revenue requirements for CMWD with costs for purchases from SDCWA. Based on the current revenue requirements, of the $43.7 million in user rates and charges generated, $29.5 million is attributed to SDCWA costs and the remaining $14.2 million is attributed to internal O&M and capital costs. The proposed rate structure includes separate fixed and variable components for CMWD revenue requirements and SDCWA pass-through costs. The proposed rates would generate a total of $49.5 million, over a full year, with $33.7 million attributable to SDCWA and the remaining $15.8 million for internal requirements. The proposed rates represent an overall increase in user rates and charges of 13.2-percent for 2025 in which increases in SDCWA costs are the main driver. SDCWA has adopted significant increases for calendar year 2025 that will result in a 14.3-percent increase in the costs paid by CMWD to SDCWA for imported water. The CMWD internal rates will increase by 10.9-percent to cover increases in operating costs, to maintain the operating component of reserves, and to continue to meet debt coverage obligations. After 2025, proposed pass-through increases are calculated based on projected rate increases from SDCWA, projected imported water purchases, and projected sales. The study assumes a 15-percent increase in SDCWA costs for 2026, approximately 4-percent in 2027 and 2028, and approximately 3- percent in 2029. Increases in the CMWD rates are proposed at 10-percent per year in 2026 and 2027 and projected at 7.5-percent per year for 2028 and 2029. Table 16 shows the proposed rate and pass-through revenues and increases for each fiscal year. The Revenues Prior to Each Year’s Increase assume that the increases from proposed increases in previous years are implemented as proposed. Feb. 11, 2025 Item #8 Page 130 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 21 For example, the revenues prior to increases for FYE 2026 are inclusive of the increases proposed for FYE 2025 as well as customer growth. Figure 2 Rate Revenues with First Year Increase and Restructuring for Pass-through Table 16 User Revenues and Proposed Increases ($ millions) FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 Revenues Prior to Each Year's Increase SDCWA Portion/SDCWA Pass-throughs $29.5 $33.8 $39.1 $41.0 $43.0 Carlsbad Portion/Carlsbad Rates $14.2 $15.8 $17.5 $19.4 $21.1 Total User Rates and Charges $43.7 $49.6 $56.5 $60.4 $64.1 Revenues with Full Year of Increases and Pass-Through Adjustments SDCWA Pass-throughs $33.7 $38.9 $40.7 $42.6 $44.4 Carlsbad Rates $15.8 $17.4 $19.2 $20.9 $22.6 Total User Rates and Charges $49.5 $56.3 $59.9 $63.4 $67.0 Effective Rate Increases SDCWA Pass-throughs 14.3% 15.0% 4.2% 3.8% 3.2% Carlsbad Rates 10.9% 10.0% 10.0% 7.5% 7.5% Total (All User Rates and Charges) 13.2% 13.4% 6.0% 5.0% 4.6% The projected rate increases and proposed rates presented in this study were developed assuming rates would be implemented on January 1, 2025. Subsequent to the development of the rates, the District opted to delay the implementation to July 1, 2025 to allow sufficient time for the billing system to be updated to reflect the new rate structure and pass-through charges. For FYE 2025, the delay will result in a revenue decrease of $2.9 million. Combined Rates, CMWD Portion (Delivery Fee), $14.2 Combined Rates (SDCWA Portion), $29.5 CMWD Fixed Rates , $7.7 CMWD Variable Rates, $8.0 Fixed Pass-Through, $8.8 Variable Pass-Through, … $43.7 $49.5 $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 Current Rate Structure Proposed Rate Structure (FYE 2025) Mi l l i o n s SDCWA Pass- Through CMWD Cost Recovery Feb. 11, 2025 Item #8 Page 131 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 22 The proposed potable water rate revenue increases, to be implemented on July 1, 2025, would be a full cost-of-service adjustment, and rate adjustments will vary by customer class and rate component. For FYE 2026 and onward, the percentage rate revenue increase is recommended to be applied to the 2025 cost-of-service-based rates on January 1 of each year. Over time, the District has been proactive in annually contributing to the replacement of its system. Based on the current fund balances, the District can mitigate the necessary rate adjustments by spending down reserves to fund capital projects over the next several years. Table 17 Cash Flow Sufficiency Test - Potable Water ($ millions) FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 Pre-Rate Increase CMWD Rate Revenues without Increases $14.2 $14.3 $14.3 $14.5 $14.6 Revenue from Previous Years’ Increases $0.0 $1.6 $3.1 $4.9 $6.5 Pass-through Revenues(1) $31.6 $36.4 $39.9 $41.8 $43.7 Other Offsetting Revenues $6.9 $6.5 $6.5 $6.5 $6.5 Operating Revenues $52.7 $58.7 $63.8 $67.7 $71.2 Less Operating Expenditures ($53.4) ($59.6) ($63.8) ($66.3) ($73.0) Cash Flow Surplus/(Deficit) ($0.7) ($0.9) $0.1 $1.4 ($1.8) Post Rate Increase CMWD Rate Revenue Increase 10.91% 10.00% 10.00% 7.50% 7.50% Revenue from CMWD Rate Increase $1.6 $1.6 $1.7 $1.5 $1.6 (Less): Rate Increase Delay(2) ($0.8) ($0.8) ($0.9) ($0.7) ($0.8) Adjustment for Implementation Delay(3) ($2.9) $0.0 $0.0 $0.0 $0.0 Cash Flow Surplus/(Deficit) ($2.8) ($0.1) $0.9 $2.1 ($1.0) Operating Fund Reserve Beginning Operating Fund Balance $16.3 $13.5 $13.3 $14.3 $16.4 Operating Cash Flow ($2.8) ($0.1) $0.9 $2.1 ($1.0) Other Transfers $0.0 $0.0 $0.0 $0.0 $0.0 Ending Operating Fund Balance $13.5 $13.3 $14.3 $16.4 $15.4 Ending Capital Funds Balance $61.8 $51.7 $47.1 $34.3 $25.9 Combined Ending Cash Balance $75.3 $65.0 $61.4 $50.7 $41.2 Total Days of O&M Costs 515 Days 398 Days 351 Days 279 Days 219 Days Operating Fund Days of O&M Costs 92 Days 82 Days 82 Days 90 Days 77 Days Notes: (1) See Table 26 for Pass-through revenue calculation (2) Adjustment to account for rate implementation on January 1 of each fiscal year. (3) Adjustment to reflect delay of rate implementation from January 1, 2025 to July 1, 2025. (4) Line or column totals may not tie due to rounding. Feb. 11, 2025 Item #8 Page 132 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 23 3.5.1.2 Recycled Water Based on the analysis, 4.5-percent rate revenue increases are needed in each year to adequately cover the revenue requirements of the recycled water system. Like the potable rate increases discussed above, the implementation of recycled water rates will be delayed until July 1, 2025. This delay will result in a revenue decrease of $0.2 million. The proposed recycled water rate revenue increases for 2025 will be implemented by a full cost-of-service adjustment, and rate adjustments will vary by rate component. For 2026 and onward, the percentage rate revenue increase is recommended to be applied to the 2025 cost- of-service-based rates. The proposed rate increases are set to maintain the affordability of recycled water while working toward maintaining positive cash flows. As shown, the recycled water fund will draw down on reserves for FYE 2025 through FYE 2028 before stabilizing in FYE 2029. After that time, and with continued rate increases, positive cash flows are projected and reserves will be replenished over time. To mitigate the use of reserves over the study period, the District could consider taking additional SRF loan draws. Additional funds beyond those taken thus far may be available for eligible projects and could offset the use of reserves. Additional detail of the revenue requirement analysis is included for reference in Appendix E. Table 18 Cash Flow Sufficiency Test - Recycled Water ($ millions) FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 Pre-Rate Increase Rate Revenues without Increases $9.3 $9.3 $9.4 $9.4 $9.5 Revenue from Previous Years’ Increases $0.0 $0.4 $0.9 $1.3 $1.8 Offsetting Revenues $1.1 $1.1 $1.1 $1.1 $1.1 Operating Revenues $10.4 $10.8 $11.4 $11.9 $12.5 Less Operating Expenditures ($11.3) ($11.9) ($12.3) ($12.5) ($12.7) Cash Flow Surplus/(Deficit) ($1.0) ($1.1) ($0.9) ($0.6) ($0.2) Post Rate Increase Rate Revenue Increase 4.5% 4.5% 4.5% 4.5% 4.5% Revenue from Increase $0.4 $0.4 $0.5 $0.5 $0.5 (Less): Rate Increase Delay(1) ($0.2) ($0.2) ($0.2) ($0.2) ($0.3) Adjustment for Implementation Delay(2) ($0.2) $0.0 $0.0 $0.0 $0.0 Cash Flow Surplus/(Deficit) ($1.0) ($0.9) ($0.7) ($0.3) $0.0 Operating Fund Reserve Beginning Operating Fund Balance $1.1 $1.5 $1.4 $1.2 $0.9 Cash Flow ($1.0) ($0.9) ($0.7) ($0.3) $0.0 Other Transfers(3) Table continues on next page. $1.3 $0.8 $0.5 $0.0 $0.0 Feb. 11, 2025 Item #8 Page 133 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 24 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 Ending Operating Fund Balance $1.5 $1.4 $1.2 $0.9 $0.9 Ending Capital Funds Balance $4.6 $3.2 $1.8 $0.9 $0.9 Combined Ending Cash Balance $6.1 $4.6 $3.1 $1.8 $1.8 Total Days of O&M Costs 250 Days 168 Days 109 Days 62 Days 60 Days Operating Fund Days of O&M Costs 61 Days 52 Days 44 Days 31 Days 31 Days Notes: (1) Adjustment to account for rate implementation in January 1 of each year. (2) Adjustment to reflect delay of rate implementation from January 1, 2025 to July 1, 2025. (3) Assumed transfer of reserves from rate revenues to Operating Fund to balance reserves. (4) Line or column totals may not tie due to rounding. 3.5.2 Debt Coverage Test The District's current and projected debt obligations are State Revolving Fund loans. Per the Construction Installment Sale Agreement between the District and the State Water Resources Control Board, require the Districts’ annual operating revenues to be sufficient to cover annual operating expenses plus 120-percent of the annual debt service payments. This is stated as a debt service coverage ratio (DSCR) of 1.20x. The outstanding debt agreements allow both potable and recycled water revenues to be used in the calculation of debt coverage. Based on the proposed rate revenue increases, the District will meet its debt coverage obligation on exiting SRF debt in all years. With projected debt service included, the coverage factor will fall slightly below the target in FYE 2025 due to the six-month delay in rate increases to July 1, 2025. Table 19 presents the calculation of the DSCR. Table 19 Debt Service Coverage Test - Recycled Water ($ millions) Budget Item FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 Revenues Available For Coverage (Potable and Recycled Combined) User Charges(1) $53.0 $63.0 $68.7 $73.0 $77.2 Tax Revenues $4.5 $4.7 $4.8 $4.9 $5.1 Other/Misc Revenues $1.2 $1.2 $1.3 $1.3 $1.4 Connection Fees $1.3 $0.4 $0.8 $2.2 $2.4 Grants $2.8 $1.8 $0.0 $0.0 $0.0 Interest Earnings $2.3 $1.7 $1.5 $1.3 $1.2 Combined Revenues Available for Coverage $65.0 $72.8 $77.1 $82.8 $87.2 Potable Water Operating Expenses ($53.3) ($59.6) ($63.7) ($66.3) ($68.8) Recycled Water Operating Expenses ($8.9) ($10.0) ($10.3) ($10.7) ($11.1) Net Revenue Available for Debt Service $2.7 $3.2 $3.1 $5.8 $7.3 Recycled Water Existing Debt Service $1.9 $1.4 $1.4 $0.2 $0.2 DSCR - Existing Loans 1.47x 2.29x 2.16x 31.28x 39.18x Recycled Water Projected Debt Service $0.5 $0.5 $0.5 $0.5 $0.5 DSCR - Existing and Projected Loans 1.15x 1.69x 1.59x 8.38x 10.5x Notes: (1) FYE 2025 includes adjustment to reflect implementation delay. (2) Line or column totals may not tie due to rounding. Feb. 11, 2025 Item #8 Page 134 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 25 3.5.3 SDCWA Surcharge Pass-Through The District has decided to delineate cost recovery between Carlsbad-specific expenses and a pass-through charge recovering SDCWA-related expenses. The operating expenses in Table 9 provide an overview of this distinction. Table 20 presents the detailed line items associated with Carlsbad expenses and the SDCWA surcharge. SDCWA has historically updated, and plans to continue to update, its rates and charges on a calendar year basis. Accordingly, the proposed pass-through rates and charges are also calculated on a calendar year basis. The variable pass-through rate is calculated by dividing projected calendar year variable SDCWA costs by projected calendar year sales. Calendar year costs are calculated by converting expected fiscal year water purchases to a calendar year basis and applying SDCWA adopted or projected variable rates. For 2025, the calculated SDCWA pass-through charge is $4.01 per CCF, applied to all potable water sales. The calculation for the calendar year variable pass-through is in Table 21. Table 20 SDCWA Pass-through Expenses – Fiscal Year Basis ($ millions) Budget Item FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 Variable SDCWA Costs Transportation $2.06 $1.90 $2.08 $2.19 $2.29 SDCWA M&I Supply $15.93 $18.24 $20.02 $21.01 $21.99 SDCWA Treatment $5.61 $6.73 $7.39 $7.75 $8.12 Subtotal Variable SDCWA Costs $23.59 $26.87 $29.49 $30.95 $32.40 Fixed SDCWA Costs Customer Service Charge $0.96 $1.12 $1.22 $1.27 $1.31 Emergency Storage Charge $2.23 $2.55 $2.79 $2.89 $3.00 Infrastructure Access Charge $2.07 $2.18 $2.42 $2.52 $2.62 Supply Reliability Charge $1.65 $1.91 $2.09 $2.17 $2.24 Fixed Transportation Charge $0.52 $1.12 $1.22 $1.27 $1.31 MWD Capacity Reservation Charge $0.26 $0.31 $0.35 $0.38 $0.40 MWD Readiness to Service Charge $0.40 $0.44 $0.49 $0.52 $0.54 Subtotal Fixed SDCWA Costs $8.10 $9.64 $10.57 $11.01 $11.42 Total SDCWA Costs $31.69 $36.51 $40.06 $41.96 $43.82 Notes: (1) Line or column totals may not tie due to rounding. Feb. 11, 2025 Item #8 Page 135 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 26 Table 21 SDCWA Variable Pass-through Calculation – Calendar Year Basis ($ millions) Budget Item CY 2025 CY 2026 CY 2027 CY 2028 CY 2029 Transportation $1.76 $2.03 $2.13 $2.24 $2.34 SDCWA M&I Supply $16.93 $19.55 $20.50 $21.52 $22.46 SDCWA Treatment $6.25 $7.21 $7.56 $7.94 $8.29 Total to Collect Through Pass-through $24.94 $28.79 $30.19 $31.70 $33.09 Potable Water Sales (ccf)(1) 6,221,643 6,240,977 6,283,789 6,346,152 6,401,784 Calculated SDCWA Pass-through Rate ($/ccf) $4.01 $4.62 $4.81 $5.00 $5.17 Notes: (1) Calendar year sales. (2) Line or column totals may not tie due to rounding. Like the variable pass-through rate, the fixed pass-through charges are calculated on a calendar year basis to correspond to SDCWA’s rate setting. The fixed pass-through charge will be assessed per meter, by size, based on the number of meter equivalent units (MEUs) assigned to each size of meter. Its calculation includes two components based on the way that fixed SDCWA costs are assessed to CMWD. A unit charge per MEU is calculated for each component then multiplied by the MEU ratio for each meter size to calculate the component charge for each meter size. The components are then summed to calculate the SDCWA fixed pass-through for each meter size. Table 22 shows the calculation of the unit charge for each component and Table 23 shows the resulting calculated surcharges by meter size. SDCWA’s Customer Service, Emergency Storage, Supply Reliability, and Fixed Transportation charges along with the MWD Capacity Reservation and Readiness to Serve charges are assessed to CMWD based on rolling average consumption. For the pass-through calculation, they are combined and recovered per MEU assuming a 5/8-inch meter as the base size like CMWD’s current fixed charges. SDCWA assesses its Infrastructure Access Charge (IAC) on a 3/4-inch MEU basis and the fixed pass-through charge is therefore calculated using the same 3/4-inch basis. SDCWA charges the IAC to CMWD based on the number of MEUs reported for December of the previous year. Because the pass-through calculation is based on the projected number of MEUs in each year accounting for growth, the IAC component of the pass-through may be lower than SDCWA’s charge per MEU. For example, SDCWA’s adopted IAC for CY 2025 is $4.55 per MEU, while the calculated pass-through is $4.42 per MEU. Table 22 Eligible Costs to Recover Through SDCWA Fixed Pass-through – Potable Water ($ millions) Budget Item CY 2025 CY 2026 CY 2027 CY 2028 CY 2029 Customer Service Charge $1.04 $1.20 $1.25 $1.29 $1.34 Emergency Storage Charge $2.38 $2.73 $2.84 $2.95 $3.04 Supply Reliability Charge $1.78 $2.05 $2.13 $2.21 $2.28 Fixed Transportation Charge $1.04 $1.20 $1.25 $1.29 $1.34 MWD Capacity Reservation Charge $0.30 $0.33 $0.37 $0.39 $0.41 MWD Readiness to Service Charge (Adjusted to CY basis) $0.42 $0.47 $0.50 $0.53 $0.56 Less: SDCWA Fixed in Fire Service Rate ($0.11) ($0.13) ($0.14) ($0.14) ($0.15) Feb. 11, 2025 Item #8 Page 136 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 27 Budget Item CY 2025 CY 2026 CY 2027 CY 2028 CY 2029 Total to Collect Through Surcharge (Millions) Table continues on next page. $6.84 $7.84 $8.19 $8.51 $8.81 Potable MEUs (5/8" Basis)1 46,566 46,756 46,893 47,212 47,687 Calculated SDCWA Pass-Through per MEU (5/8” Basis) $12.24 $13.97 $14.56 $15.03 $15.39 Infrastructure Access Charge (Millions) $2.00 $2.36 $2.47 $2.57 $2.66 Calculated IAC per MEU (3/4” Basis) 37,714 37,868 37,979 38,238 38,622 Calculated SDCWA IAC Pass-Through per MEU (3/4” Basis) $4.42 $5.20 $5.42 $5.60 $5.75 Notes: (1) Calendar year. (2) Line or column totals may not tie due to rounding. Table 23 SDCWA Fixed Pass-through Calculation – Potable Water ($ millions) Meter Size 5/8” MEU Ratio 3/4" MEU Ratio CY 2025 CY 2026 CY 2027 CY 2028 CY 2029 Unit Charge per MEU – 5/8-inch Basis Component $12.24 $13.97 $14.56 $15.03 $15.39 Unit Charge per MEU – 3/4-inch Basis Component $4.42 $5.20 $5.42 $5.60 $5.75 5/8" 1.00 1.00 $16.66 $19.17 $19.99 $20.63 $21.15 3/4" 1.50 1.00 $22.77 $26.15 $27.27 $28.15 $28.84 1" 2.50 1.60 $37.66 $43.24 $45.08 $46.54 $47.68 1.5" 5.00 3.00 $74.43 $85.44 $89.08 $91.95 $94.21 2" 8.00 5.20 $120.85 $138.78 $144.69 $149.35 $153.04 2.5" 11.50 7.40 $173.39 $199.10 $207.58 $214.27 $219.56 3" 15.00 9.60 $225.93 $259.43 $270.48 $279.19 $286.08 4" 25.00 16.40 $378.31 $434.45 $452.96 $467.55 $479.10 6" 50.00 30.00 $744.26 $854.35 $890.74 $919.43 $942.10 8" 80.00 52.00 $1,208.47 $1,387.74 $1,446.86 $1,493.48 $1,530.34 10" 115.00 78.00 $1,751.52 $2,011.75 $2,097.48 $2,165.07 $2,218.54 Fiscal year pass-through revenues are calculated by applying the calculated calendar year pass-through rates and charges to calendar year sales, then averaging the appropriate calendar years for each fiscal year. For example, FYE 2025 revenues are calculated as the average of CY 2024 and CY 2025 revenues. Table 24 and Table 25 show the calculation of fiscal year variable pass-through and fixed pass-through revenues, respectively. Table 26 shows the combined fiscal year pass through revenue. Feb. 11, 2025 Item #8 Page 137 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 28 Table 24 Calculated Variable Pass-through Revenues – Potable Water ($ millions) CY 2024 CY 2025 CY 2026 CY 2027 CY 2028 CY 2029 Variable Pass-through Revenue Variable Pass-through ($/ccf) $3.59 $4.01 $4.61 $4.80 $5.00 $5.17 CY Sales (ccf) 6,195,775 6,221,643 6,240,977 6,283,789 6,346,152 6,401,784 CY Revenue (millions) $22.25 $24.94 $28.79 $30.19 $31.70 $33.09 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 FY Variable Pass-through Revenue (million) $23.59 $26.87 $29.49 $30.95 $32.40 Notes: (1) Line or column totals may not tie due to rounding. Table 25 Calculated Fixed Pass-through Revenues – Potable Water ($ millions) CY 2024 CY 2025 CY 2026 CY 2027 CY 2028 CY 2029 Fixed Pass-through Revenues Unit Charge per MEU – 5/8" Basis Component $9.03 $12.24 $13.97 $14.56 $15.03 $15.39 Unit Charge per MEU – 3/4" Basis Component $4.79 $4.42 $5.20 $5.42 $5.60 $5.75 CY MEUs - 5/8" Basis 46,252 46,566 46,756 46,893 47,212 47,687 CY MEUs - 3/4" Basis 37,460 37,714 37,868 37,979 38,238 38,622 CY Revenue 5/8" Basis (million) $5.01 $6.84 $7.84 $8.19 $8.51 $8.81 CY Revenue 5/8" Basis (million) $2.15 $2.00 $2.36 $2.47 $2.57 $2.66 Combined CY Revenue (million) $7.17 $8.84 $10.20 $10.66 $11.08 $11.47 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 FY Fixed Pass-through Revenue (million) $8.00 $9.52 $10.43 $10.87 $11.28 Amount recovered in Fire Service Rate (million) $0.10 $0.12 $0.13 $0.14 $0.15 Notes: (1) Line or column totals may not tie due to rounding. Table 26 Fiscal Year Pass-through Revenue Summary – Potable Water ($ millions) FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 FY Variable Pass-through Revenue (million) $23.59 $26.87 $29.49 $30.95 $32.40 FY Variable Pass-through Revenue (million) $8.00 $9.52 $10.43 $10.87 $11.28 Total FY Pass-through Revenue (million) $31.6 $36.4 $39.9 $41.8 $43.7 Notes: (1) Line or column totals may not tie due to rounding. Feb. 11, 2025 Item #8 Page 138 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 29 SECTION 4 COST-OF-SERVICE ANALYSIS The purpose of a cost-of-service analysis is to provide a rational basis for distributing the full costs of the District’s water service to each customer in proportion to the demands they place on the system. The Study developed a detailed cost allocation that serves as the basis for the proposed rate adjustments. This analysis yields an appropriate method for allocating costs, which could be sustained unless substantial changes in cost drivers or customer consumption patterns occur. The Cost-of-Service analysis follows a step-by-step approach to tying the District’s expenses to the rates charged to customers. Those steps are outlined in the figure below. Figure 3 Cost-of-Service Analysis Steps Based on the revenue requirement analysis outlined in the preceding chapter, the functional allocation designates each budget item to a functional category, which is then translated into a specific cost/rate component. Those functional categories and their associated costs are allocated to the distinct customer classes based on each class’s unique account, meter, and demand characteristics. A customer class consists of users that commonly create or share responsibility for certain costs incurred by the utility, which is determined by customer consumption data (including peak demand) in order to combine similar groups of customers. Cost Functionalization The District's expenses are allocated to functional categories on a line-by-line basis. Rate Component Allocation The functional categories are allocated to cost components based on system usage statistics and engineering standards. Customer Class and Tier Allocation The cost components are reallocated to each class or tier based on demand profiles. Feb. 11, 2025 Item #8 Page 139 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 30 4.1 Ratemaking Framework 4.1.1 California Ratemaking This Report should not be considered legal guidance, and it does not offer any assurances of compliance with any other state, federal, or other laws. However, it is guided by the best available legal guidance and strives to match that guidance. Rate analyses are performed periodically to ensure revenues continue to adequately fund utility operations, maintenance, and necessary capital investments. In California, water rates must adhere to the cost-of-service requirements imposed by Proposition 218 and the State Constitution. Proposition 218 requires that property related fees and charges, including water rates, do not exceed the reasonable and proportional cost of providing the service. In general:  Rates must be based on the cost of providing water service.  Tiered pricing is an acceptable methodology under Proposition 218.  Increasing block rates that pass incrementally higher costs of expensive water onto incrementally higher demand users is an acceptable methodology of proportionately allocating the costs of service under Proposition 218. Recently, Assembly Bill 1827 was passed and approved to clarify how rates and fees may include the incrementally higher costs of water service due to:  The higher water usage demand of parcels.  The maximum potential water use.  Projected peak water usage.  And any combination of the above. AB 1827 also states that: “The incrementally higher costs of water service associated with higher water usage demands, the maximum potential water use, or projected peak water usage may be allocated using any method that reasonably assesses the water service provider’s cost of serving those parcels that are increasing potential water usage demand, maximum potential water use, or projected peak water usage. In addition to any other method consistent with Section 6 of Article XIII D of the California Constitution, the incrementally higher costs of water service associated with higher water usage demand, maximum potential water use, or projected peak water usage may be allocated among customer classes, within customer classes, or both, based on meter size or peaking factors, as those methods reasonably assess the water service provider’s cost of serving parcels that increase water usage demand, maximum potential water use, or projected peak water usage.” 4.1.2 Industry Guidance While Proposition 218 and the state constitution are the ultimate test for rates in California, industry guidance and commonly accepted rate setting practices can serve as a template for achieving cost-based rates. The AWWA M1 Manual outlines the two most widely used methods for allocation of functionalized costs to cost components: Feb. 11, 2025 Item #8 Page 140 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 31  Base Extra Capacity Method, where costs are allocated among: (1) a base category to provide baseline water service or average day demand; (2) an extra capacity category to provide peak demand service, often split into maximum day and maximum hour components; (3) a customer category to provide services that do not vary with water usage, such as customer service and billing; and (4) direct fire protection.  Commodity Demand Method, where costs are allocated among: (1) a commodity category for costs that are directly driven by demand; (2) a demand category for building and maintaining peak system capacity; (3) a customer category to provide services that do not vary with water usage, such as customer service and billing; and (4) direct fire protection. Both methodologies recognize that cost-of-service “depends not only on the total volume of water used, but also on the rate of use, or peak demand requirements.” Costs incurred by the District are not incurred uniformly, or simply based on the total quantity or volume of water used. The cost-of-service changes based on both when, how, and how much water is used. Both methodologies account for this by including an extra capacity or demand category, in recognition of costs associated with capacity that is not used consistently which impacts operating costs and capital asset related costs to accommodate peak flows. For this analysis, the Base Extra Capacity methodology was selected. The following sections discuss how costs are allocated to the system’s functions, cost components, and customer classes using this methodology. 4.2 Functional Cost Allocation – Potable 4.2.1 Functional Cost Categories – Potable The functional cost allocation assigns the revenue requirement for the test year by major function. The Study developed a list of functions specific to the District’s water system. Each functional component is allocated to specific cost components, which can then be assigned to rates. The functional components used for the District are: Customer Account Service: Costs, materials and outside services directly related to customer communication such as outreach, printing, and postage. Meters and Services: Costs associated with water meters and service connections. Administration: Costs related to the overall management and oversight of the water system including legal costs, permitting and regulatory fees, studies, and other related items. This category also includes the costs that the water utility pays to other City of Carlsbad departments for services that they provide such as customer billing and information technology services. Distribution: Costs associated with delivering water to customers including the operation and maintenance of the water distribution system facilities. Treatment: The District’s internal costs associated with treating water purchased from SDCWA and desalinated water. These costs include chemicals, lab costs, and water sampling. SDCWA Variable: The variable portion of the costs that the District pays to SDCWA for purchases of treated water supplies. Under the proposed rates, these costs are recovered using the variable pass- through rate discussed previously. Feb. 11, 2025 Item #8 Page 141 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 32 SDCWA Fixed: The fixed portion of the costs that the District pays to SDCWA for treated water supplies not including the Infrastructure Access Charge (IAC). Under the proposed rates, these costs are recovered using the fixed pass-through charge discussed previously. SDCWA IAC: This category includes the costs of the SDCWA IAC, a fixed charge that SDCWA levies on the District based on the District’s count of MEUs. Under the proposed rates, these costs are recovered using the fixed pass-through charge discussed previously. Desalination: The costs that the District pays to purchase desalinated water as dictated by its purchase agreement with SDCWA. Conservation: Costs associated with conservation programs, such as rebates, and communications aimed at increasing overall water supply and reliability through encouraging or mandating customers that use large amounts of water to reduce water usage in order to increase water supply and reliability. Fire Protection: Costs that the District incurs specifically related to providing and maintaining facilities for fire protection. The ability to provide fire protection service is intrinsic to the water system based on typical water system planning and engineering. Those intrinsic characteristics are accounted for in costs allocated to the other categories, most notably within the Meters and Services and Distribution categories. Cross Connection Control: Costs related to the District’s cross-connection control program. Engineering: Costs related to the District’s engineering activities. General: Costs associated with other expenses that provide an overall benefit to the water system such as staff costs for management personnel who oversee all aspects of the water operation. This category also includes costs that do not fit any of the other categories such as asphalt repairs, landscaping services, miscellaneous supplies, and other overhead expenses. 4.2.1.1 O&M Expense Functionalization – Potable The District’s O&M expenses were functionalized into each of the above categories using the FYE 2025 budgeted operating expenses. Table 27 presents a summary of the O&M cost functionalization. A detailed table of the functionalization is included in Appendix F. Table 27 Functionalized O&M Expenses - Potable ($ millions) Functional Component Personnel Maintenance & Equipment Budget Adjustments Total Allocated Resulting Allocation Customer Account Service $0.00 $0.06 $0.00 $0.05 0.1% Meters and Services $0.40 $1.21 -$0.13 $1.49 2.8% Admin $1.22 $2.75 -$0.32 $3.66 6.9% Distribution $1.81 $2.44 -$0.34 $3.92 7.3% Treatment $0.00 $0.29 -$0.02 $0.27 0.5% SDCWA Variable $0.00 $23.59 $0.00 $23.59 44.2% SDCWA Fixed $0.00 $6.02 $0.00 $6.02 11.3% SDCWA IAC $0.00 $2.07 $0.00 $2.07 3.9% Desal Table continues on next page. $0.00 $9.98 $0.00 $9.98 18.7% Feb. 11, 2025 Item #8 Page 142 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 33 Functional Component Personnel Maintenance & Equipment Budget Adjustments Total Allocated Resulting Allocation Conservation $0.11 $0.01 -$0.01 $0.11 0.2% Fire Protection $0.00 $0.06 $0.00 $0.05 0.1% Cross Connection Control $0.36 $0.08 -$0.03 $0.40 0.7% Engineering $0.63 $0.24 -$0.07 $0.79 1.5% General $0.66 $0.40 -$0.08 $0.97 1.8% Total O&M Expenses $5.19 $49.21 -$1.01 $53.39 100.0% Notes: (1) Line or column totals may not tie due to rounding. 4.3 Rate Component Allocation – Potable After O&M costs are functionalized, they can be allocated to rate components along with capital costs and other revenue requirement elements. These rate components are the foundation of the individual rates, with each component corresponding to individual or multiple rate components. The District’s rate components are used to allocate costs to the fixed monthly service charges and the volumetric rates. The volumetric components include base, extra capacity (maximum day and maximum hour), and SDCWA. The customer related rate components (customer, service, and private fire protection) are the basis of the fixed monthly service charges. Revenues from the proposed pass-throughs are applied as offsets to the appropriate categories, variable pass-through revenues offset the SDCWA category and fixed pass-through revenues offset the Service category. Fire protection costs are separated into private and public. While private fire protection costs are only allocated to private fire customers through the private fire service charge, the public fire protection costs are attributable to all other customer classes and recovered via the service component. 4.3.1 Rate Component Descriptions – Potable The following describes each of the cost components for the District. 4.3.1.1 Volumetric Components Base: This category includes a portion of operating and capital costs related to internal source of supply and distribution costs, up to a level that meets the District’s baseline (average day) demands throughout the year. Base also includes a portion of general and administrative costs associated with the operations and management of those functions as well as the variable portion of desalination costs. Extra Capacity – Max Day: This category includes a portion of O&M and capital costs for water distribution related to meeting maximum day demands. Max day also includes a portion of general and administrative costs associated with the operations and management of those functions. Lastly, the costs of the District conservation activities are included in this category. These costs are incremental to those required for Base service. For example, they include capital costs related to oversizing the system to meet excess max day demand. Feb. 11, 2025 Item #8 Page 143 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 34 System peaking factors are used to determine the appropriate allocations to the Extra Capacity cost components. For the purpose of this study, the maximum day peaking factor is 1.96 based on the District’s water use records. This means that the maximum day demand is assumed to be 1.96 times the average day demand. This is a reduction from the 2.06 maximum day peaking factor determined in the previous Study. The impact is that proportionately more costs will be recovered at the Base component. The calculation of the allocation basis from these peaking factors is detailed in the next section. Extra Capacity – Max Hour: The Max Hour category is similar to the Max Day category but covers the additional costs related to peak above Max Day. These costs are incremental to those required for Base and Max Day service. The Max Hour peaking factor is 2.90 times the average hour demand. The Max Hour peaking factor was developed in the District’s master plan. This value is unchanged from the previous Study. SDCWA: This category includes the variable costs of purchasing treated water from SDCWA. 4.3.1.2 Fixed Components Service: Costs associated with customer meters and service lines and the associated capacity. The fixed costs charged to the District by SDCWA are also included in this component. These costs are included in the fixed charge based on the meter’s hydraulic capacity. The fixed portion of desalination costs are also allocated to this component. Customer: Costs related to operational support activities including accounting, administration, billing, and customer service. These expenditures are common to all customers and are reasonably uniform across the different customer classes. Private Fire Protection: Costs associated with providing private fire protection services via dedicated connections. A portion of the distribution system and service costs are included as the system must have sufficient hydraulic capacity to support the pressures and flow demands for fire protection service. 4.4 Extra Capacity Allocation Factors – Potable For costs related to either Max Day or Max Hour, the peaking factors for each component need to be normalized into a 100 percent scale to allow allocation of costs. The peaking factors are generated as a ratio of the peak demand for a given time period (max day, max hour, etc.) to the average demand for the same time period. For Base-Extra Capacity, this relies on Max Day Demand (MDD) and Max Hour Demand (MHD) flow criteria. District staff provided average day demand (ADD) and MDD conditions for the past three fiscal years based on SCADA monitoring data. The MHD peaking factor is based on the District’s 2019 Master Plan. 4.4.1 Max Day Demand – Potable For MDD, the highest demand day is approximately 26.50 million gallons per day (mgd) based on the peak demand from FYE 2021 which occurred on August 26, 2020. When divided by the average day demand of 13.50 mgd for that same year, the resulting peak factor is 1.96. That peak factor is then applied to the projected demands for the FYE 2025 rate design year to calculate peak demands and allocations for the cost-of-service analysis. Feb. 11, 2025 Item #8 Page 144 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 35 Table 20 outlines the calculation of the allocation basis from these peaking factors. Base corresponds with ADD of 12.50 mgd, which is set at 100 percent. The incremental Max Day capacity required above ADD to meet MDD is 12.00 mgd, or 96 percent of base. The percentages associated with total MDD capacity need to be normalized into a 100 percent basis. After normalizing, 49 percent of capacity is associated with Base demand and 51 percent is associated with the incremental capacity needed to meet MDD. Table 28 shows the calculation of the MDD allocation. Table 28 Max Day Allocation Peaking Factor MGD Percent of Base Normalized Allocation Base (Average Day) 12.50 100% 51% Incremental Max Day 12.04 96% 49% Total Max Day 24.54 196% 100% Notes: (1) Line or column totals may not tie due to rounding. 4.4.2 Max Hour Demand – Potable Table 29 outlines the calculation of the allocation basis from the MHD peaking factors. The District’s 2019 master plan determined a MHD peaking factor of 2.90. Applied to the ADD of 12.50 mgd, the 2.90 MHD factor results in estimated max hour demands of 36.26 mgd. Base corresponds with ADD of 12.00 mgd, which is set at 100 percent. The incremental Max Day capacity required above ADD to meet MDD is 12.04 mgd, or 96 percent of base. The incremental Max Hour capacity required above MHD is 11.71 mgd, or 94 percent of base. The percentages associated with total MHD capacity need to be normalized into a 100 percent basis. After normalizing, 34 percent of capacity is associated with Base demand, 33 percent is associated with the incremental capacity needed to meet MDD, and 32 percent is associated with the incremental capacity needed to meet MHD. Table 29 Max Hour Allocation Peaking Factor MGD Percent of Base Normalized Allocation Base (Average Day) 12.50 100% 34% Incremental Max Day 12.04 96% 33% Incremental Max Hour 11.71 94% 32% Total 36.26 290% 100% Notes: (1) Line or column totals may not tie due to rounding. Certain costs related to distribution system O&M or sizing are split between the extra capacity components, max day and max hour. The allocation for those costs is outlined in Table 30. The allocation is developed based on the incremental max day and max hour demands’ proportional share of total extra capacity. With the incremental max day demands of 12.04 mgd and incremental max hour demands of 11.71 mgd, the extra capacity allocation is 51 percent to max day and 49 percent to max hour. Feb. 11, 2025 Item #8 Page 145 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 36 Table 30 Extra Capacity Allocation Peaking Factor MGD Extra Capacity MGD Extra Capacity Allocation Base (Average Hour) 12.50 n/a n/a Incremental Max Day 12.04 12.04 51% Incremental Max Hour 11.71 11.71 49% Total 36.26 23.75 100% Notes: (1) Line or column totals may not tie due to rounding. 4.5 Allocation of Revenue Requirements to Cost Components – Potable The next step in the Cost-of-Service analysis is to allocate revenue requirements to each cost component outlined in Section 4.4.1. Each functional category allocation from Section 4.3.1 is then reallocated to a rate component. The percentages connecting each functional category with a rate component are outlined in Table 31. These percentages are then used to distribute the O&M functional category totals from Table 27 into the rate components, with results summarized in Table 33. Other revenue requirement elements including capital costs, replacement funding, and offsetting revenues are also allocated rate components in this step, shown in Table 34. Finally, revenue requirement elements allocated to each rate component are summed to determine the total revenue requirements, by rate component, for the FYE 2025 test year. The resulting allocation is shown in Table 35. Functionalized O&M expenses and the other revenue requirement elements are allocated to the rate categories based on the how and why the costs are incurred, and the services provided to each rate payer by those activities. The O&M expenses and other revenue requirement elements are allocated to rate components as follows: Customer Account Service: These costs are equal for all retail customers regardless of their water demands or the size of their water meters. Thus, to account for each billed connection’s share of these costs, they are allocated to the customer rate component. Administration and Management: These costs are equal for all customers regardless of their water demands or the size of their water meters. Thus, to account for each billed connection’s share of these costs, they are allocated to the customer and private fire protection rate components. Meters and Services: This category includes service costs that are common to all customers as well as costs that vary based on the size of each connection. Meters and services costs are split between the customer, service, and private fire components. They are allocated between private fire and service proportional to the number of potable MEUs and private fire protection MEUs. Feb. 11, 2025 Item #8 Page 146 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 37 Distribution: Distribution costs are split between the max day, max hour, and private fire components. This allocation accounts for the oversizing of the distribution system, including pipelines, pump stations, storage facilities and other infrastructure to meet peak demands and accounts for the share associated with private fire protection connections. This system oversizing drive increased operating and capital costs which are in turn recovered from the extra capacity components. Treatment: These costs are variable and equal for each unit of water sold, they are allocated to the base rate component. SDCWA Fixed and SDCWA IAC: These costs are assessed to the District, by SDCWA, on a fixed basis tied to a combination of rolling average water purchases, MEUs, and maximum capacity demands. Therefore, these costs are allocated to the service rate component to reflect the capacity needed to serve each customer. However, since these costs will now be recovered through the fixed pass-through charge, projected revenues from that charge are applied to offset this component. SDCWA Variable: These costs are allocated to the SDCWA component which is later allocated to each customer class based on their allocated share of SDCWA water purchases. These costs will be recovered through the variable pass-through rate and the revenues from that rate are applied as an offset to these costs. Desalination: These costs are related to supply and include fixed and variable components based on the purchase agreement between the District and SDCWA. The fixed portion of the costs is allocated to the service component to be recovered from each user based on their capacity as indicated by the size of their water meter. The variable portion is allocated to base to be recovered in proportion to the amount of water used by each customers. Conservation: These costs are allocated to the max day rate component as the conservation program is aimed at helping users reduce their incremental demands. Fire Protection: These costs are allocated to the service and the private fire rate components proportionally based on the number of MEUs for normal service meters and private fire protection connections. Cross Connection Control: These costs are fixed in nature and are allocated to the service rate component. Engineering: The District’s engineering efforts include planning and managing capital projects as well as supporting operations. These costs are allocated across the rate components based on the allocation of the water system’s fixed assets. General: These costs are for items and activities that provide a general benefit to the water system. They are therefore allocated to the rate components based on the weighted average of O&M expenses. Capital Costs: Capital-related revenue requirements including replacement funding and transfers to the capital replacement reserve are allocated based on the water system’s fixed assets. This reflects that the District, as well as most utilities, spend CIP typically in accordance with the current functionalization of the system. For instance, if 25 percent of the value of the system is related to storage tanks and reservoirs, as is the case with the District, then it is reasonable to assign approximately 25 percent of the CIP to storage tanks and reservoirs because it is assumed the District will invest a proportional amount of maintenance, repair, and replacement on storage. While some agencies rely on project specific capital allocations, that process can lead to shifting and rate spiking as projects of different types are completed. Feb. 11, 2025 Item #8 Page 147 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 38 Allocating capital costs using the overall fixed asset replacement cost ties the long-term costs of capital investments to the District’s physical system while avoiding rate spikes and shifting allocations. A summary of the allocation of fixed assets is shown in Table 32. Offsetting Revenues and Operating Cash Flows: Offsetting revenues and cash flows are allocated based on the weighted average allocation of all other revenue requirements. Feb. 11, 2025 Item #8 Page 148 of 265 20 2 5 PO T A B L E A N D R E C Y C L E D W A T E R CO S T O F S E R V I C E ST U D Y FE B R U A R Y 2 0 2 5 / FI N A L / CA R O L L O CA R L S B A D M U N I C I P A L W A T E R D I S T R I C T 39 Th e a l l o c a t i o n f a c t o r s u s e d i n t h e p o t a b l e w a t e r f u n c t i o n a l a l l o c a t i o n a r e o u t l i n e d i n Ta b l e 31 . Ta b l e 3 1 Fu n c t i o n a l A l l o c a t i o n F a c t o r s - Po t a b l e Al l o c a t i o n Cu s t o m e r Se r v i c e Ba s e Ma x D a y Ma x H o u r Fir e SD C W A IA C SD C W A Fix e d As A l l Ot h e r s Cu s t o m e r O n l y (1 ) 96 . 2 % 3. 8 % Cu s t o m e r O n l y - No F i r e 10 0 . 0 % Se r v i c e O n l y (2 ) 98 . 4 % 1. 6 % Se r v i c e O n l y - No F i r e 10 0 . 0 % SD C W A O n l y 10 0 . 0 % De s a l F i x e d / V a r (3 ) 59 . 5 % 40 . 5 % Ma x D a y 10 0 . 0 % Ma x H o u r 10 0 . 0 % Ba s e / M a x D a y (4 ) 50 . 9 % 49 . 1% Ba s e / M a x D a y / M a x H o u r (4 ) 34 . 5 % 33 . 2% 32 . 3% Ma x D a y / M a x H o u r ( 4 ) 50 . 7% 49 . 3% Ma x D a y / H o u r w / F i r e (5 ) 47 . 7% 50 . 7% 1. 6 % Pl a n t -In -Se r v i c e (6 ) 15 . 9 % 6.0 % 38 . 7 % 37 . 7 % 1. 6 % As A l l O t h e r s 10 0 . 0 % No t e s : (1 ) Al l o c a t i o n p r o p o r t i o n a l t o t h e n u m b e r o f c o n n e c t i o n s f o r r e t a i l p o t a b l e c u s t o m e r s a n d p r i v a t e f i r e p r o t e c t i o n c o n n e c t i o n s . (2 ) Al l o c a t i o n p r o p o r t i o n a l t o t h e n u m b e r o f M E U s f o r r e t a i l p o t a b l e c u s t o m e r s a n d p r i v a t e f i r e p r o t e c t i o n M E U s w i t h p r i v a t e f i r e pr o t e c t i o n c o m p o n e n t a d j u s t e d t o r e f l e c t o n l y t h e po r t i o n o f t h e s y s t e m r e l a t e d t o p r o v i d i n g s y s t e m w i d e f i r e p r o t e c t i o n . (3 ) Al l o c a t i o n s p l i t fi x e d ( S e r v i c e ) a n d v a r i a b l e ( B a s e ) c o m p o n e n t s in p r o p o r t i o n to f i x e d a n d v a r i a b l e d e s a l i n a t i o n c o s t s b a s e d o n t h e p u r c h a s e a g r e e m e n t w i t h S D C W A . (4 ) Al l o c a t i o n b a s e d o n e x t r a c a p a c i t y d e m a n d s a s d e s c r i b e d i n 4. 4 . (5 ) Ma x D a y / M a x H o u r a l l o c a t i o n a d j u s t e d t o a c c o u n t f o r p r i v a t e f i r e co n n e c t i o n s sh a r e o f i n f r a s t r u c t u r e c o s t s . (6 ) Al l o c a t i o n o f f i x e d a s s e t s a s s h o w n i n Ta b l e 3 2 . (7 ) Li n e o r c o l u m n t o t a l s m a y n o t t i e d u e t o ro u n d i n g . Feb. 11, 2025 Item #8 Page 149 of 265 20 2 5 PO T A B L E A N D R E C Y C L E D W A T E R CO S T O F S E R V I C E ST U D Y FE B R U A R Y 2 0 2 5 / FI N A L / CA R O L L O CA R L S B A D M U N I C I P A L W A T E R D I S T R I C T 40 Ta b l e 3 2 Fi x e d A s s e t A l l o c a t i o n ( P l a n t -i n - Se r v i c e ) - Po t a b l e ( $ mi l l i o n s ) As s e t C l a s s Re p l a c e m e n t Va l u e Cu s t o m e r Se r v i c e Ba s e Ma x D a y Ma x H o u r Sy s t e m w i d e F i r e Pr o t e c t i o n La n d $1 1 . 5 7 10 0 . 0 % Bu i l d i n g s $1 2 . 3 2 10 0 . 0 % Wa t e r S e r v i c e & M e t e r s $5 . 5 0 10 0 . 0 % Ma c h i n e r y & E q u i p m e n t $1 3 . 4 4 10 0 . 0 % Di s t r i c t Fi r e Co n n e c t i o n s $0 . 0 1 10 0 . 0 % Re s e r v o i r s $3 2 2 . 0 0 28 . 9 % 27 . 8 % 27 . 1 % 16 . 2 % Pi p e s & P u m p i n g $1 , 1 9 3 . 0 0 43 . 1 % 41 . 9 % 15 . 0 % Co n s t r u c t i o n i n P r o g r e s s $0 . 0 0 To t a l A l l o c a t i o n $1 , 5 5 7 . 8 5 $4 2 . 8 4 $9 3 . 0 8 $6 0 3 . 5 8 $5 8 7 . 3 3 $2 3 1 . 0 2 Pe r c e n t a g e A l l o c a t i o n 2. 7 % 6.0 % 38 . 7 % 37 . 7 % 14 . 8 % Re a l l o c a t i o n o f S y s t e m w i d e F i r e P r o t e c t i o n t o S e r v i c e a n d P r i v a t e F i r e P r o t e c t i o n Cu s t o m e r Se r v i c e Ba s e Ma x D a y Ma x H o u r Pr i v a t e F i r e Pr o t e c t i o n Fi x e d A s s e t A l l o c a t i o n f o r Co s t -of -Se r v i c e 15 . 9 % 6.0 % 38 . 7 % 37 . 7 % 1. 6 % No t e s: (1 ) Li n e o r c o l u m n t o t a l s m a y n o t t i e d u e t o r o u n d i n g . Feb. 11, 2025 Item #8 Page 150 of 265 20 2 5 PO T A B L E A N D R E C Y C L E D W A T E R CO S T O F S E R V I C E ST U D Y FE B R U A R Y 2 0 2 5 / FI N A L / CA R O L L O CA R L S B A D M U N I C I P A L W A T E R D I S T R I C T 41 Ta b l e 3 3 O& M A l l o c a t i o n t o R a t e C o m p o n e n t s - Po t a b l e ( $ m i l l i o n s ) Op e r a t i n g E x p e n d i t u r e s Cu s t o m e r Se r v i c e Ba s e Ma x D a y Ma x Ho u r Pr i v a t e F i r e SD C W A As A l l Ot h e r s To t a l Cu s t o m e r A c c o u n t S e r v i c e $0 . 0 5 - - - - - - - $0 . 0 5 Me t e r s a n d S e r v i c e s - $1 . 4 6 - - - $0 . 0 2 - - $1 . 4 9 Ad m i n $3 . 52 - - - - $0 . 14 - - $3 . 66 Di s t r i b u t i o n - - - $1 . 8 7 $1 . 9 9 $0 . 0 6 - - $3 . 9 2 Su p p l y - - $0 . 14 $0 . 13 - - - - $0 . 27 SD C W A V a r i a b l e - - - - - - $2 3 . 5 9 - $2 3 . 5 9 SD C W A F i x e d - $5 . 9 2 - - - $0 . 1 0 - - $6 . 02 SD C W A I A C - $2 . 0 7 - - - - - - $2 . 0 7 De s a l - $5 . 9 4 $4 . 0 5 - - - - - $9 . 9 8 Co n s e r v a t i o n - - - $0 . 1 1 - - - - $0 . 1 1 Fi r e P r o t e c t i o n - $0 . 0 5 - - - $0 . 0 0 - - $0 . 0 5 Cr o s s C o n n e c t i o n C o n t r o l - $0 . 39 - - - $0 . 0 1 - - $0 . 40 En g i n e e r i n g - $0 . 13 $0 . 05 $0 . 31 $0 . 30 $0 . 0 1 - - $0 . 79 Ge n e r a l - - - - - - - $0 . 97 $0 . 97 Op e r a t i n g E x p e n d i t u r e s S u b t o t a l $3 . 57 $1 5 . 9 6 $4 . 2 3 $2 . 4 2 $2 . 29 $0 . 35 $2 3 . 5 9 $0 . 97 $5 3 . 39 Re a l l o c a t i o n o f " A s A l l O t h e r s " $0 . 12 $0 . 54 $0 . 14 $0 . 08 $0 . 08 $0 . 0 1 ($ 0 . 97 ) - To t a l A l l o c a t i o n $3 . 69 $1 6 . 50 $4 . 3 7 $2 . 5 0 $2 . 36 $0 . 36 $2 3 . 5 9 - $5 3 . 39 No t e s: (1 ) Li n e o r c o l u m n t o t a l s m a y n o t t i e d u e t o r o u n d i n g . Feb. 11, 2025 Item #8 Page 151 of 265 20 2 5 PO T A B L E A N D R E C Y C L E D W A T E R CO S T O F S E R V I C E ST U D Y FE B R U A R Y 2 0 2 5 / FI N A L / CA R O L L O CA R L S B A D M U N I C I P A L W A T E R D I S T R I C T 42 Ta b l e 3 4 Re v e n u e Re q u i r e m e n t s A l l o c a t i o n t o R a t e C o m p o n e n t s - Po t a b l e ( $ m i l l i o n s ) Ra t e R e v e n u e R e q u i r e m e n t Cu s t o m e r Se r v i c e Ba s e Ma x D a y Ma x H o u r Pr i v a t e F i r e SD C W A As A l l Ot h e r s To t a l Op e r a t i n g E x p e n s e s $3 . 69 $1 6 . 50 $4 . 3 7 $2 . 5 0 $2 . 36 $0 . 36 $2 3 . 5 9 - $5 3 . 39 De b t - - - - - - - - - Ra t e F u n d e d C a p i t a l - - - - - - - - - Re p l a c e m e n t F u n d i n g ( D e p r e c i a t i o n Fu n d i n g ) - - - - - - - - - Ca s h F u n d e d C a p i t a l - $1 . 1 1 $0 . 42 $2 . 7 1 $2 . 6 3 $0 . 1 2 - - $6 . 9 8 Ca s h F l o w s - - - - - - - ($ 2 . 7 8 ) ($ 2 . 7 8 ) Le s s O f f s e t t i n g R e v e n u e s - ($ 12 . 7 9 ) ($ 0 . 42 ) ($ 2. 7 1 ) ($ 2. 6 3 ) ($ 0 . 1 2 ) ($ 23 . 5 9 ) $0 . 4 5 ($ 4 1 . 8 1 ) To t a l R a t e R e v e n u e s t o b e C o l l e c t e d $3 . 6 9 $4 . 8 2 $4 . 3 7 $2 . 5 0 $2 . 3 6 $0 . 3 6 - ($ 2 . 3 3 ) $1 5 . 7 8 Re a l l o c a t i o n o f " A s A l l O t h e r s " ($ 0 . 4 8 ) ($ 0 . 6 2 ) ($ 0 . 5 6 ) ($ 0 . 3 2 ) ($ 0 . 3 0 ) ($ 0 . 0 5 ) Di r e c t P a s s Th r o u g h $2 . 3 3 - To t a l A l l o c a t i o n $3 . 2 2 $4 . 2 0 $3 . 8 1 $2 . 1 8 $2 . 0 6 $0 . 3 1 - - $1 5 . 7 8 No t e : (1 ) Li n e o r c o l u m n t o t a l s m a y n o t t i e d u e t o r o u n d i n g . Feb. 11, 2025 Item #8 Page 152 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 43 4.6 Functional Allocation Results – Potable Once each revenue requirement element is allocated, a combined allocation of the District’s expenses is used as the basis for allocating rate revenue requirements to each functional category and subsequently to each customer class. The functional allocation also defines the split between costs recovered through fixed rate components and those recovered through variable rate components. 4.6.1 Potable Water Functional Allocation Results The results of the potable water functional allocation analysis are shown in Table 35. The largest component of the system's costs is related to variable supply costs for imported water from SDCWA. However, this Study allocates all SDCWA-related costs to a direct pass-throughs. The Service, Customer, and Fire cost components are collected through the CMWD fixed rate components and total approximately 49 percent of the District's potable costs. These costs are recovered through Carlsbad’s monthly delivery fee. The District’s water usage fees recover the remaining 51 percent of costs, which are allocated to the Base, Max Day, and Max Hour components. Table 35 Functional Allocation Results Summary - Potable Water ($ millions) Allocation Basis Revenue Requirement ($ millions) Percent of Total Functional Allocation Customer $3.22 20.4% Service $4.20 26.6% Base $3.81 24.1% Max Day $2.18 13.8% Max Hour $2.06 13.0% Fire $0.31 2.0% Total $15.78 100.0% Notes: (1) Line or column totals may not tie due to rounding. Feb. 11, 2025 Item #8 Page 153 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 44 4.6.2 Unit Cost Calculation The amount of costs allocable to customers is calculated with the unique units associated with each cost function. For example, the customer component is the same for all meter sizes and is calculated by dividing the allocated customer costs by the number of accounts. The resulting value will then be allocated to each customer class in the final cost of service step. Table 36 presents this calculation. Table 36 Unit Cost Calculation - Potable Water ($ millions) Customer Service Base Max Day Max Hour Allocation Basis Number of Accounts Number of MEUs Usage (ccf) Max Day Usage Max Hour Usage Total Units 353,194 1,159,848 6,214,735 32,808 2,020 Amount Allocable to Constituent $3.22 $4.20 $3.81 $2.18 $2.06 Unit Costs $9.11 $3.62 $0.61 $66.44 $1,019.56 4.7 Customer Class Allocation The final step in the cost-of-service analysis is the allocation of costs to each customer class. This step utilizes the results of the functional allocation and service units to proportionally allocate costs based on the level of service provided to each customer (rate) class. Service units are metrics for each customer class such as the number of accounts, number of meters by size, and usage characteristics that define the level of service provided to each class. Each functional cost component is divided amongst the customer classes in proportion to each class’s share of the service units used to allocate the respective functional component. Table 37 presents the total service units, otherwise known as the customer class characteristics, of each customer class. These totals are used to proportionally allocate the functional cost components between each customer class. The values presented in Table 37 are the projected values for FYE 2025. Table 37 Customer Class Service Units Service Unit Single Family Multi-Family CI&I Agricultural Irrigation Fire Total Number of Accounts (Customer) 24,521 1,284 1,707 12 793 1,116 29,433 Number of MEUs (Service) 28,141 5,482 8,445 173 4,183 50,230 96,654 Annual Water Usage (ccf) 3,361,234 817,637 1,252,320 81,534 702,011 - 6,214,735 Max Month (ccf) 335,466 72,733 125,869 9,418 85,564 - 629,050 Max Day (ccf) 17,496 3,793 6,565 491 4,463 - 32,808 Max Hour (ccf) 1,077 234 404 30 275 - 2,020 Notes: (1) Line or column totals may not tie due to rounding. Feb. 11, 2025 Item #8 Page 154 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 45 4.7.1 Potable Volumetric Cost Customer Class Allocation Costs allocated to the variable functional categories (Base, Max Day, and Max Hour) are allocated based on the amount of demand in each of those categories for each class. This directly ties the incremental cost of water to each class's consumption and to volumetric rate tiers (where applicable). Every unit of water has both an element of base, max day, and max hour costs. The elements are allocated across the total projected FYE 2025 demand and are summed to determine the total cost allocated to each class. The amounts allocable to constituents from Table 35 are multiplied by each customer class’s proportionate units, respective to the rate component. For example, single family customers use an annual sum of 3,361,234 ccf, which makes up approximately 54 percent of total system usage. Therefore, 54 percent of the total Base rate component allocable costs are assessed to single family customers and recovered through a volumetric rate. 4.7.1.1 Base Allocation Base costs are allocated to each class in proportion to their share of annual water usage, as shown in Table 38. Table 38 Base Allocation ($ millions) Allocation Basis Total Single Family Multi-Family CI&I Agricultural Irrigation Annual Water Usage (ccf) 6,214,735 3,361,234 817,637 1,252,320 81,534 702,011 Allocation (%) 100% 54% 13% 20% 1% 11% Allocated Customer Costs $4.20 $2.55 $0.50 $0.76 $0.02 $0.38 Notes: (1) Line or column totals may not tie due to rounding. 4.7.1.2 Extra Capacity Allocations Max Day and Max Hour costs are allocated to each class in proportion to their shares of Max Day in Table 39 and Max Hour demands in Table 40. Table 39 Max Day Allocation ($ millions) Allocation Basis Total Single Family Multi-Family CI&I Agricultural Irrigation Max Day Usage (ccf) 32,808 17,496 3,793 6,565 491 4,463 Allocation (%) 100% 53% 12% 20% 1% 14% Allocated Customer Costs $2.18 $1.16 $0.25 $0.44 $0.03 $0.30 Notes: (1) Line or column totals may not tie due to rounding. Feb. 11, 2025 Item #8 Page 155 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 46 Table 40 Max Hour Allocation ($ millions) Allocation Basis Total Single Family Multi-Family CI&I Agricultural Irrigation Max Hour Usage (ccf) 2,020 1,077 234 404 30 275 Allocation (%) 100% 53% 12% 20% 1% 14% Allocated Customer Costs $2.06 $1.10 $0.24 $0.41 $0.03 $0.28 Notes: (1) Line or column totals may not tie due to rounding. 4.7.1.3 Supply Allocations In the previous Study, the rate structure did not employ a pass-through to recover SDCWA costs. Therefore, the cost-of-service methodology reflected the steps necessary to allocate available water supplies based on using the lower cost source to fulfill base demand and desalinated water – the more expensive source – to fulfill any remaining base demand requirements and all peak demand requirements. This Study passes all costs associated with SDCWA, including variable, IAC, and fixed costs, through to the customer directly, as calculated in Table 21 and Table 23. Therefore, only the internal Carlsbad costs remain to be allocated by customer class, as shown in the sections above. 4.7.2 Potable Fixed Cost Customer Class Allocation Similar to the calculation for variable customer class allocation, the amounts allocable to constituents from Table 35 are multiplied by each customer class’s proportionate units. Fixed costs are allocated based on each class's share of accounts and MEUs. Customer costs are allocated based on the number of accounts and Service costs are allocated based on the number of MEUs. All costs allocated to the Private Fire rate component are allocated directly to fire customers. For example, there are 24,521 single family accounts in FYE 2025, which make up approximately 87 percent of all accounts. Therefore, 87 percent of the total Customer rate component allocable costs are assessed to single family customers and recovered through a monthly fixed charge. Table 41 and Table 42 summarize the service units and the percentage allocations used to allocate fixed costs to each customer class. Table 41 Customer Allocation ($ millions) Allocation Basis Total Single Family Multi-Family CI&I Agricultural Irrigation Number of Accounts 28,317 24,521 1,284 1,707 12 793 Allocation (%) 100% 87% 5% 6% 0% 3% Allocated Customer Costs $3.22 $2.79 $0.15 $0.19 $0.00 $0.09 Notes: (1) Line or column totals may not tie due to rounding. Feb. 11, 2025 Item #8 Page 156 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 47 Table 42 Service Allocation ($ millions) Allocation Basis Total Single Family Multi-Family CI&I Agricultural Irrigation Number of MEUs 46,424 28,141 5,482 8,445 173 4,183 Allocation (%) 100% 61% 12% 18% 0% 9% Allocated Customer Costs $4.20 $2.55 $0.50 $0.76 $0.02 $0.38 Notes: (1) Line or column totals may not tie due to rounding. 4.7.3 Potable Water Customer Allocation Results Table 43 summarizes the total revenue requirements allocated to each potable water customer class for FYE 2025. These allocated costs are subsequently used to determine the fixed delivery charges and volumetric rates for each customer class. Additional detail of the customer allocation analysis is included for reference in Appendix H. Table 43 Potable Water Customer Allocation Summary, FYE 2025 ($ millions) Functional Component Service Unit Single-Family Multi-Family CI&I Agricultural Irrigation Private Fire Customer Accounts $2.79 $0.15 $0.19 $0.00 $0.09 - Base Annual Usage (ccf) $2.06 $0.50 $0.77 $0.05 $0.43 - Max Day Max Day Usage (ccf) $1.16 $0.25 $0.44 $0.03 $0.30 - Max Hour Max Hour Usage (ccf) $1.10 $0.24 $0.41 $0.03 $0.28 - Service MEUs $2.55 $0.50 $0.76 $0.02 $0.38 - Fire MEUs - - - - - $0.31 Total $9.65 $1.63 $2.57 $0.13 $1.48 $0.31 Notes: (1) Line or column totals may not tie due to rounding. 4.7.4 Functional Cost Allocation – Recycled 4.7.4.1 Functional Cost Categories – Recycled The functional cost allocation for recycled water follows an approach similar to that laid out for potable water in the previous sections. The allocation assigns the revenue requirement for the test year by major function. The Study developed a list of functions specific to the District’s recycled water system. Each functional component is allocated to specific cost components, which can then be assigned to rates. The recycled water functional components used for the District are: Customer Account Service: Costs for materials and outside services directly related to customer communication such as outreach, printing, and postage. Feb. 11, 2025 Item #8 Page 157 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 48 Meters and Services: Costs associated with recycled water meters and service connections. Administration: Costs related to the overall management and oversight of the recycled water system including legal costs, permitting and regulatory fees, studies, and other related items. This category also includes the costs that the recycled water utility pays to other City of Carlsbad departments for services that they provide such as customer billing and information technology services. Distribution: Costs associated with delivering recycled water to customers including the operation and maintenance of the water distribution system facilities. Supply: The costs that the District pays to purchase recycled water from Vallecitos Water District as well as the costs paid to the Encina Wastewater Authority for the operation of the CWRF. Cross Connection Control: Costs related to the District’s cross-connection control program. Engineering: Costs related to the District’s engineering activities. General: Costs associated with other expenses that provide an overall benefit to the water system such as staff costs for management personnel who oversee all aspects of the water operation. This category also includes costs that do not fit any of the other categories such as asphalt repairs, landscaping services, miscellaneous supplies, and other overhead expenses. 4.7.4.2 O&M Expense Functionalization – Recycled The District’s O&M expenses were functionalized into each of the above categories using the FY 2025 budgeted operating expenses. Table 44 presents a summary of the O&M cost functionalization. A detailed table of the functionalization is included in Appendix G. Table 44 Functionalized O&M Expenses - Recycled ($ millions) Functional Category Personnel Maintenance & Equipment Budget Adjustments Total Allocated Resulting Allocation Customer Account Service $0.00 $0.01 $0.00 $0.01 0.1% Meters And Services $0.05 $0.30 -$0.01 $0.34 3.8% Admin $0.31 $0.69 -$0.02 $0.98 10.9% Distribution $0.38 $1.22 -$0.03 $1.56 17.4% Supply $0.00 $4.80 -$0.10 $4.70 52.6% Cross Connection Control $0.43 $0.06 -$0.01 $0.48 5.3% Engineering $0.65 $0.01 -$0.01 $0.65 7.3% General $0.15 $0.09 -$0.01 $0.23 2.6% Total O&M Expenses $1.96 $7.17 -$0.20 $8.94 100.0% Notes: (1) Line or column totals may not tie due to rounding. 4.7.5 Rate Component Allocation – Recycled After O&M costs are functionalized, they can be allocated to rate components along with capital costs and other revenue requirement elements. These rate components are the foundation of the individual rates, with each component corresponding to individual or multiple rate components. Feb. 11, 2025 Item #8 Page 158 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 49 The District’s rate components are used to allocate costs to the fixed monthly service charges and the volumetric rates. For recycled water, the volumetric components include base, and supply. Due to the relative homogeneity of the recycled water customer base a uniform volumetric charge is applied to all customers, thus the extra capacity components are not necessary in the recycled water allocation. The customer related rate components (customer, and service) are the basis of the fixed monthly service charges. 4.7.5.1 Rate Component Descriptions – Recycled The following describes each of the cost components for the District. Volumetric Components Base: This category includes the District’s volumetric costs for delivering recycled water to customers. Supply: This category includes the variable costs of purchasing recycled water from Vallecitos and the costs the District pays to the Encina Wastewater Authority for the operation of the CWRF. Fixed Components Service: Costs associated with customer meters and service lines and the associated capacity. These costs are included in the fixed charge based on the meter’s hydraulic capacity. Customer: Costs related to operational support activities including accounting, administration, billing, and customer service. These expenditures are common to all customers and are reasonably uniform across the different customer classes. 4.7.6 Allocation of Revenue Requirements to Cost Components – Recycled Functionalized O&M expenses and the other revenue requirement elements are allocated to the rate categories based on the how and why the costs are incurred, and the services provided to each rate payer by those activities. The O&M expenses and other revenue requirement elements are allocated to rate components as follows: Customer Account Service: These costs are considered to be equal for all customers regardless of their water demands or the size of their water meters and are thus allocated to the customer rate component. Administration: These costs are fixed in nature and are allocated to the service rate component. Meters and Services: This category includes service costs that are common to all customers as well as costs that vary based on the size of each connection. Meters and services costs are split between the customer and service categories. Twenty-five percent of costs are allocated to customer and 75-percent of costs are allocated to service. Distribution: Distribution costs are allocated to the base component. Supply: These costs are common for all units of water sold and do not vary based on system peaking. They are allocated to the supply rate component. Cross Connection Control: Due to the regulatory requirements of providing recycled water service, the recycled water system has a more extensive cross connection control program than the potable system. These costs are allocated 50-percent to the service component and 50-percent to base rate component. Feb. 11, 2025 Item #8 Page 159 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT 50 Engineering: The District’s engineering efforts include planning and managing capital projects as well as supporting operations. These costs are allocated across the rate components based on the allocation of the recycled water system’s fixed assets. General: These costs are for items and activities that provide a general benefit to the water system. They are therefore allocated to the rate components based on the weighted average of O&M expenses. Capital Costs: Capital-related revenue requirements including replacement funding and transfers to the capital replacement reserve are allocated based on the recycled water system’s fixed assets. This reflects that the District, as well as most utilities, spend CIP typically in accordance with the current functionalization of the system. A summary of the allocation of fixed assets in shown in Table 36. Offsetting Revenues and Operating Cash Flows: Offsetting revenues and cash flows are allocated based on the weighted average allocation of all other revenue requirements. The allocation factors used in the recycled water functional allocation are outlined in Table 45. Table 45 Functional Allocation Factors - Recycled Allocation Factor Customer Service Base Supply Customer Only 100% Customer and Meter Service 20% 80% Service Only 100% Base Only 100% Service and Base 50% 50% Supply Only 100% Plant In Service 25% 60% 15% Notes: (1) Line or column totals may not tie due to rounding. Table 46 shows the allocation of recycled water fixed assets. Table 46 Fixed Asset Allocation (Plant-in-Service) - Recycled ($ millions) Asset Class Replacement Value Service Base Supply Mains $99.16 25.0% 75.0% 0.0% Water Stations $11.94 25.0% 75.0% 0.0% Water Facility $28.18 25.0% 0.0% 75.0% Total Allocation $139.28 $34.82 $83.32 $21.14 Percentage Allocation 25.0% 59.8% 15.2% Notes: (1) Line or column totals may not tie due to rounding. Table 47 shows the allocation of O&M costs to rate components and Table 48 shows the allocation of revenue requirements to rate components. Feb. 11, 2025 Item #8 Page 160 of 265 20 2 5 PO T A B L E A N D R E C Y C L E D W A T E R CO S T O F S E R V I C E ST U D Y FE B R U A R Y 2 0 2 5 / FI N A L / CA R O L L O CA R L S B A D M U N I C I P A L W A T E R D I S T R I C T 51 Ta b l e 4 7 O& M A l l o c a t i o n t o R a t e C o m p o n e n t s – Re c y c l e d ( $ m i l l i o n s ) Op e r a t i n g E x p e n d i t u r e s Cu s t o m e r Se r v i c e Ba s e Su p p l y As A l l O t h e r s To t a l Cu s t o m e r A c c o u n t S e r v i c e $0 . 0 1 - - - - $0 . 0 1 Me t e r s a n d S e r v i c e s $0 . 0 7 $0 . 2 7 - - - $0 . 3 4 Ad m i n - $0 . 9 8 - - - $0 . 9 8 Di s t r i b u t i o n - - $1 . 5 6 - - $1 . 5 6 Su p p l y - - - $4 . 7 0 - $4 . 7 0 Cr o s s C o n n e c t i o n C o n t r o l - $0 . 2 4 $0 . 2 4 - - $0 . 4 8 En g i n e e r i n g - $0 . 1 6 $0 . 3 9 $0 . 1 0 - $0 . 6 5 Ge n e r a l - - - - $0 . 2 3 $0 . 2 3 Op e r a t i n g E x p e n d i t u r e s S u b t o t a l $0 . 0 7 $1 . 6 5 $2 . 1 8 $4 . 8 0 $0 . 2 3 $8 . 9 4 Re a l l o c a t i o n o f " A s A l l O t h e r s " $0 . 0 0 $0 . 0 4 $0 . 0 6 $0 . 1 3 ($ 0 . 2 3 ) - To t a l A l l o c a t i o n $0 . 0 8 $1 . 6 9 $2 . 2 4 $4 . 9 3 - $8 . 9 4 No t e s: (1 ) Li n e o r c o l u m n t o t a l s m a y n o t t i e d u e t o r o u n d i n g . Feb. 11, 2025 Item #8 Page 161 of 265 20 2 5 PO T A B L E A N D R E C Y C L E D W A T E R CO S T O F S E R V I C E ST U D Y FE B R U A R Y 2 0 2 5 / FI N A L / CA R O L L O CA R L S B A D M U N I C I P A L W A T E R D I S T R I C T 52 Ta b l e 4 8 Re v e n u e R e q u i r e m e n t s A l l o c a t i o n t o R a t e C o m p o n e n t s – Re c y c l e d ( $ mi l l i o n s ) Ra t e R e v e n u e R e q u i r e m e n t Cu s t o m e r Se r v i c e Ba s e Su p p l y As A l l O t h e r s To t a l Op e r a t i n g E x p e n s e s $0 . 0 8 $1 . 6 9 $2 . 2 4 $4 . 9 3 - $8 . 9 4 De b t - - $2 . 3 9 - - $2 . 3 9 Ra t e F u n d e d C a p i t a l - - - - - - Re p l a c e m e n t F u n d i n g ( D e p r e c i a t i o n F u n d i n g ) - - - - - - Tr a n s f e r t o C a p i t a l F u n d - - - - - - Ca s h F l o w s - - - - ($ 0 . 9 6 ) ($ 0 . 9 6 ) Le s s O f f s e t t i n g R e v e n u e s - - - - ($ 0 . 6 4 ) ($ 0 . 6 4 ) To t a l R a t e R e v e n u e s t o b e C o l l e c t e d $0 . 0 8 $1 . 6 9 $4 . 6 3 $4 . 9 3 ($ 1 . 6 0 ) $9 . 7 2 Re a l l o c a t i o n o f " A s A l l O t h e r s " ($ 0 . 0 1 ) ($ 0 . 2 4 ) ($ 0 . 6 5 ) ($ 0 . 7 0 ) $1 . 6 0 - To t a l A l l o c a t i o n $0 . 0 6 $1 . 4 5 $3 . 9 7 $4 . 2 3 - $9 . 7 2 No t e s: (1 ) Li n e o r c o l u m n t o t a l s m a y n o t t i e d u e t o r o u n d i n g . Feb. 11, 2025 Item #8 Page 162 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT POTABLE AND RECYCLED WATER COST-OF-SERVICE STUDY 53 4.7.7 Functional Allocation Results – Recycled Once each revenue requirement element is allocated, a combined allocation of the District’s expenses is used as the basis for allocating rate revenue requirements to each functional category and subsequently to each customer class. The functional allocation also defines the split between costs recovered through fixed rate components and those recovered through variable rate components. 4.7.7.1 Recycled Water Functional Allocation Results The results of the recycled water functional allocation analysis are shown in Table 49. The Service and Customer components are collected through fixed rate components and total approximately 15.4 percent of the District's potable costs. These costs are recovered through the monthly delivery fee. The recycled water usage fees recover the remaining 84.6 percent of costs, which are allocated to the Base and Supply components. Table 49 Functional Allocation Results Summary – Recycled ($ millions) Allocation Basis Revenue Requirement ($ millions) Percent of Total Functional Allocation Customer $.06 0.7% Service $1.45 15.0% Base $3.97 40.9% Supply $4.23 43.5% Total Revenue Requirements $9.72 100.0% Notes: (1) Line or column totals may not tie due to rounding. Feb. 11, 2025 Item #8 Page 163 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT POTABLE AND RECYCLED WATER COST-OF-SERVICE STUDY 54 SECTION 5 RATE DESIGN ANALYSIS The rate design analysis links the cost allocated to each customer class with the projected demand for each class. The resulting rates from this analysis must fully recover costs. Additionally, the analysis should demonstrate that each customer class is paying their fair and proportionate share of system costs. 5.1 Rate Structure Objectives and Goals With costs equitably allocated to each customer class, as outlined in Section 4, the District has some flexibility in designing a rate structure that meets its policy and fiscal objectives. In determining the appropriate rates and rate structures, the District considered various rate design alternatives and the resulting impacts to both the District and its customers. Carollo utilized multiple criteria in judging each rate structure. 1. Clear and understandable. 2. Easily administered. 3. Follows cost-of-service principles. 4. Provides revenue stability. 5. Provides affordability. 6. Complies with legal and regulatory requirements. Given the numerous and competing elements of rate design, selection of an appropriate rate structure is complex. There is no single structure that meets all objectives equally. The rate recommendations presented within this report proportionally recover costs from system users, help to stabilize annual rate revenues, and are easy to both administer and understand by the District's customers as they provide consistency with the existing rate structure. The following sections summarize the calculations and methodologies used to develop the proposed rates. 5.2 Potable Water Delivery Fees Delivery charges are intended to recover the District's fixed operating costs. The proposed delivery charges are a combination of the Customer and Service functional components. Separate delivery charges were developed for recycled customers to reflect the specific costs of the recycled water system. To determine the delivery charge, the meter unit cost is multiplied by the meter capacity ratios previously developed by the District to calculate the meter Service cost. These ratios are based on ratios identified in the AWWA M6 Manual 'Water Meters – Selection, Installation, Testing, and Maintenance' and represent the types of meters used by the District. The ratios are calculated using the average of maximum flow for meters of each size. The service cost is then added to the customer cost to calculate the cost based fixed charges. Table 50 presents the results of this calculation for FYE 2025. Feb. 11, 2025 Item #8 Page 164 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT POTABLE AND RECYCLED WATER COST-OF-SERVICE STUDY 55 The proposed revenue adjustments, as a percentage, do not equal or necessarily correlate to an equivalent percentage increase to rates or monthly bills. The results of the cost-of-service analysis and rate design will affect users differently based on their meter size and water consumptions habits. Since calculated SCDWA costs are fully passed through, the proposed revenue adjustments only pertain to the rates recovering internal Carlsbad costs. Table 50 Fixed Unit Costs – Potable Monthly Fixed Charges Customer Service Allocated Fixed Revenue Requirements $3,219,000 $4,200,098 Accounts MEU Customer Units 28,317 46,424 Per Account Per MEU Monthly Unit Charges $9.47 $7.54 Table 51 shows the calculation of the monthly water delivery fees for each meter size for FYE 2025. Table 51 Proposed Monthly Water Delivery Fees – Potable Meter Size Meter Equivalent Ratio Customer Component Service Component Total Fixed Charge 5/8" 1.00 $9.47 $7.54 $17.02 3/4" 1.50 $9.47 $11.31 $20.79 1" 2.50 $9.47 $18.85 $28.33 1.5" 5.00 $9.47 $37.70 $47.17 2" 8.00 $9.47 $60.31 $69.79 2 1/2" 11.50 $9.47 $86.70 $96.18 3" 15.00 $9.47 $113.09 $122.57 4" 25.00 $9.47 $188.48 $197.96 6" 50.00 $9.47 $376.97 $386.45 8" 80.00 $9.47 $603.15 $612.63 10" 115.00 $9.47 $867.03 $876.50 Notes: (1) Line or column totals may not tie due to rounding. Table 52 summarizes the proposed fixed charges for customers with private fire line service. The service connection size is the basis of the charge for customers that have fire line service. The size of the connection determines the flow capacity, or quantity of water that can be drawn from the District's system in the event of a fire. Service connection size can be measured either by consumption meter size or by service line size. In cases where an installed meter restricts the capacity of the connection and measures total water consumption, the charges will be based on the meter size. For fire lines that have a meter that is in place only to inform the District when water is drawn through the pipe and does not restrict water flows, the charge will be based on the service line size. Setting charges based on service connection size ensures legal compliance and ratepayer equity. This Study updated the capacity ratio basis for fire lines, in accordance with AWWA best practices. The proposed monthly water delivery fees are calculated using the capacity ratio formula presented in AWWA Chapter 4.8, which raises the fire line diameter to 2.63 power. For example, the capacity ratio for a 1.5-inch fire line is equal to 1.5^2.63, which is 2.90. Feb. 11, 2025 Item #8 Page 165 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT POTABLE AND RECYCLED WATER COST-OF-SERVICE STUDY 56 The total allocated revenue requirements for private fire protection are split between an amount to be collected on a per account basis and an amount to be collected on a fire line capacity unit basis. The split between these components is based on the detailed cost allocation. Line items that include a private fire service allocation that are customer related are allocated to the account charge, those that are allocated to the service component are collected via the capacity unit component of the charge. Table 52 Proposed Fixed Unit Costs – Fire Item Amount Allocated 2025 Revenue Requirement $312,943 Percent Recovered Through Account Charges 40% Number of Accounts 1,116 Monthly Fixed Charge Per Account $9.33 Recovered through Unit Charges 60% Effective Number of Fire line Capacity Units 124,089 Monthly Fixed Charge Per MEU $0.13 Notes: (1) Line or column totals may not tie due to rounding. Table 53 Proposed Monthly Water Delivery Fees – Fire Meter Size Fireline Capacity Ratio Customer Component Service Component Total Fixed Charge 5/8" 0.29 $9.33 $0.04 $9.37 3/4" 0.47 $9.33 $0.06 $9.39 1" 1.00 $9.33 $0.13 $9.46 1.5" 2.90 $9.33 $0.37 $9.70 2" 6.19 $9.33 $0.78 $10.11 2 1/2" 11.13 $9.33 $1.41 $10.74 3" 17.98 $9.33 $2.27 $11.60 4" 38.32 $9.33 $4.84 $14.17 6" 111.31 $9.33 $14.06 $23.39 8" 237.21 $9.33 $29.96 $39.29 10" 426.58 $9.33 $53.87 $63.20 12” 689.04 $9.33 $87.02 $96.35 Notes: (1) Line or column totals may not tie due to rounding. 5.3 Potable Water Usage Fees The District’s rate structure uses tiered rates and uniform rates to accurately and proportionally recover costs from water customers. Tiered rates are most effective for customer classes with individual users that are relatively consistent in use type and/or account characteristics. For example, the characteristics and demand patterns of single-family residential users are relatively consistent and can be analyzed to establish tiered rate structures. Conversely the account characteristics and demand patterns for non-residential users vary more widely based on the specific type of business or entity receiving service and the size of that entity, among other factors. This variability makes it difficult to establish tiered rate Feb. 11, 2025 Item #8 Page 166 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT POTABLE AND RECYCLED WATER COST-OF-SERVICE STUDY 57 structures that appropriately distribute costs to non-residential users without the development of more complex rate structures or individualized water budgets. Based on the above concerns, the District’s tiered customers include single-family and multi-family residential classes, referred to collectively as residential customers. All other customer classes are billed a class specific uniform rate, regardless of usage. 5.3.1 Residential Rates The current rates for single-family customers utilize a three-tiered inclining block structure and multi-family utilize a two-tier structure. Tier allotments are based on the water needs for each customer and on the actual usage patterns observed in the customer billing data. Water usage in the highest tier reflects excess use and places greater pressure on the system. Since the development of the current rate structure, single family customers have conserved considerably and no longer peak the system as significantly as they did in the past. The restructuring of the rates to recover SDCWA costs using the pass-through charge also led to updating the allocation of variable desalination costs to base, previously those costs helped to support the incremental charges for the upper tiers. To address those changes, this Study proposes a two- tiered inclining block structure for all residential customers. The incrementally higher rate for tier 2 reflects the increased max day and max hour costs for tier 2 usage, as evidenced by the higher peak factors calculated for tier 2 as compared to tier 1. Usage allotments for each tier would continue to be constant throughout the course of the year. 5.3.1.1 Single-Family Rate Design The single-family residential tiered rates provide a strong relationship between the District's cost of providing the water service and each customer's payment for that service. The tiered rates built from the functional allocation presented in Table 35 and are structured to recover Base, Max Day, and Max Hour cost. Based on an analysis of customer billing data and the changes to SDCWA cost recovery, Carollo proposes changing the single-family rate tier break structure from three to two tiers throughout the five-year rate analysis period. Table 54 Proposed Single-Family Residential Tier Allotments Customer Class Tier Allotment Single-Family Residential Tier 1 10 ccf Tier 2 > 10 ccf The Tier 1 allotment of 10 ccf corresponds roughly to the median monthly consumption for single-family customers and falls just below the average monthly use of 11 ccf. This level of consumption is considered to be efficient for indoor usage and places a lower burden on the system’s infrastructure and operational costs due to lower peak demands. The Tier 2 rate will be applied to all usage above the Tier 1 limit. This level of usage places an incrementally higher burden on the system than tier 1 and is therefore responsible for a greater share of peaking related costs. Usage above 10 ccf per month places the greatest burden on the system due to the highest peaking and thus pays the highest rate. Feb. 11, 2025 Item #8 Page 167 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT POTABLE AND RECYCLED WATER COST-OF-SERVICE STUDY 58 Single-family tiered rates are calculated by allocating the rate component costs that were allocated to the single-family customer class to each tier, then dividing the total costs allocated to each tier by the projected consumption in each tier. The cost allocations are developed based on the demands and extra capacity needs of each tier, as determined by an evaluation of the District’s billing data and the overall system demand characteristics discussed previously. Base costs are allocated to each tier in proportion to water use in each tier as they are the same for all units of water regardless of peaking. Max Day and Max Hour costs are allocated to each tier based on the Max Day and Max Hour extra capacity of each tier, respectively. Billing data for single family customers was evaluated on a per-tier basis to determine each tier’s extra capacity. A detailed summary of that evaluation is included in Appendix F. Percentage allocations for Base, Max Day, and Max Hour costs are calculated for each component proportional to each tier’s share of demands, Max Day, and Max Hour, as shown in Table 55. Table 55 Single-Family Rate Design – Base, Max Day, Max Hour Tier FYE 2025 Demand Max Day Extra Capacity Max Hour Extra Capacity ccf Base Alloc. mgd Alloc. mgd Alloc. Tier 1 2,248,418 66.9% 3.14 49.6% 8.17 62.9% Tier 2 1,112,816 33.1% 3.20 50.4% 4.83 37.1% Total 3,361,234 100% 6.34 100% 13.00 100% Notes: (1) Line or column totals may not tie due to rounding. Using the percentage allocations calculated in Table 55, the total revenue requirement for each functional component is assigned to Tiers 1 and 2. Rates are calculated by dividing the total costs allocated to each tier by that tier’s corresponding usage. The resulting proposed FYE 2025 single-family water usage fees are presented in Table 56. Rates for each tier are calculated by dividing the total revenue requirements for each tier by the projected demands within each tier. Table 56 Single-Family Rate Design Summary, FYE 2025 Functional Component FYE 2025 Revenue Requirement ($ millions) Tier 1 Tier 2 Base $2.06 $1.38 $0.68 Max Day $1.16 $0.58 $0.59 Max Hour $1.10 $0.69 $0.41 Total Requirements $4.32 $2.65 $1.68 FYE 2025 Demand (ccf) 2,248,418 1,112,816 Calculated FYE 2025 Carlsbad Rate $1.18/ccf $1.51/ccf Proposed FYE 2025 SDCWA Rate $4.01/ccf $4.01/ccf Proposed FYE 2025 Total Rate $5.19/ccf $5.52/ccf Notes: (1) Line or column totals may not tie due to rounding. Feb. 11, 2025 Item #8 Page 168 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT POTABLE AND RECYCLED WATER COST-OF-SERVICE STUDY 59 5.3.1.2 Multi-Family Rate Design The multi-family residential tiered rates provide a strong relationship between the District's cost of providing the water service and the customer's payment for that service. The tiered rates build from the functional allocation presented in Table 43 are structured to recover Base, Max Day, and Max Hour costs, which are costs related to internal expenditures. Carollo does not propose any changes to the current multi-family rate tier break structure during the five-year rate analysis period. Multi-family customers do not have yards and homeowners’ associations maintain separate meters for irrigation. On average each multi-family dwelling unit (DU) uses less water than an average single-family customer. Therefore, the tier per DU allotments for multi-family customers are lower than per account allotments of the single-family class. This Study recommends maintaining the two-tier structure for multi-family customers. Tier 1 allotment per dwelling unit remains at 5 ccf, which ties closely to average minimum month use per dwelling unit. Any usage above 5 ccf will be charged the multi-family Tier 2 rate. Table 57 Proposed Multi-Family Residential Tier Allotments Customer Class Tier Allotment per Dwelling Unit Multi-Family Residential (per DU) Tier 1 5 ccf Tier 2 > 5 ccf Notes: (1) Line or column totals may not tie due to rounding. Multi-family tiered rates are calculated by allocating the rate component costs that were allocated to the multi-family customer class to each tier, then dividing the total costs allocated to each tier by the projected consumption in each tier. The cost allocations are developed based on the demands and extra capacity needs of each tier, as determined by an evaluation of the District’s billing data. Base costs are allocated to each tier in proportion to the water use in each tier as they are the same for all units of water regardless of peaking. Max Day and Max Hour costs are allocated to each tier based on the Max Day and Max Hour extra capacity of each tier, respectively. Billing data for multi-family customers was evaluated on a per-tier basis to determine each tier’s extra capacity. A detailed summary of that evaluation is included in Appendix F. Percentage allocations for Base, Max Day, and Max Hour costs are calculated for each component proportional to each tier’s share of demands, Max Day, and Max Hour, as shown in Table 58. Table 58 Multi-Family Rate Design – Base, Max Day, Max Hour Tier FYE 2025 Demand Max Day Extra Capacity Max Hour Extra Capacity ccf Base Alloc. mgd Alloc. mgd Alloc. Tier 1 642,996 78.6% 0.84 70.0% 2.31 77.0% Tier 2 174,641 21.4% 0.36 30.0% 0.69 23.0% Total 817,637 100% 1.20 100% 3.00 100% Note: (1) Line or column totals may not tie due to rounding. Feb. 11, 2025 Item #8 Page 169 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT POTABLE AND RECYCLED WATER COST-OF-SERVICE STUDY 60 Using the percent allocations calculated in Table 58, the total revenue requirement for each functional component is divided between Tiers 1 and 2. The resulting proposed FYE 2025 multi-family water usage fees are presented in Table 59. Rates for each tier are calculated by dividing the total revenue requirements for each tier by the projected demands within each tier. Table 59 Multi-Family Rate Design Summary, FYE 2025 Functional Component FYE 2025 Revenue Requirement ($ millions) Tier 1 ($/ccf) Tier 2 ($/ccf) Base $0.50 $0.39 $0.11 Max Day $0.25 $0.18 $0.08 Max Hour $0.24 $0.18 $0.05 Total Requirements $0.99 $0.75 $0.24 FYE 2025 Demand (ccf) 642,996 174,641 Proposed FYE 2025 Carlsbad Rate $1.18/ccf $1.36/ccf Proposed FYE 2025 SDCWA Rate $4.01/ccf $4.01/ccf Proposed FYE 2025 Total Rate $5.19/ccf $5.37/ccf Notes: (1) Line or column totals may not tie due to rounding. 5.3.2 CI&I, Agricultural, and Irrigation Rate Design The water usage fee for the remaining customer classes are uniform rates charged for each ccf of consumption. Rates are calculated for each customer class by dividing each class’s allocated share of variable revenue requirements by its projected consumption. A summary of the rate calculation for CI&I, Agricultural, and Irrigation customers is shown in Table 60. Table 60 CI&I, Agricultural, and Irrigation Rate Design Summary, FYE 2025 Customer Class Base ($ millions) Max Day ($ millions Max Hour ($ millions) Total Costs to Recover ($ millions) Projected Demand (ccf) Carlsbad Rate ($/ccf) SDCWA Rate ($/ccf) Total Rate ($/ccf) CI&I $0.77 $0.44 $0.41 $1.62 1,252,320 $1.30 $4.01 $5.31 Agricultural $0.05 $0.03 $0.03 $0.11 81,534 $1.40 $4.01 $5.41 Irrigation $0.43 $0.30 $0.28 $1.01 702,011 $1.44 $4.01 $5.45 Notes: (1) Line or column totals may not tie due to rounding. 5.4 Recycled Water Rates 5.4.1 Recycled Water Delivery Charges Recycled water delivery charges are calculated using the same methodology as the potable water delivery charges discussed previously, but with the revenue requirements and customer units of the recycled water system. Table 61 shows the recycled water unit costs per account and per MEU. Feb. 11, 2025 Item #8 Page 170 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT POTABLE AND RECYCLED WATER COST-OF-SERVICE STUDY 61 Table 61 Fixed Unit Costs – Recycled Monthly Fixed Charges Customer Service Allocated Fixed Revenue Requirements $64,681 $1,454,174 Accounts MEU Customer Units 978 5,543 Per Account Per MEU Monthly Unit Charges $5.51 $21.86 Table 62 shows the calculation of recycled water delivery charges for FYE 2025. Table 62 Proposed Monthly Water Delivery Fees – Recycled Meter Size Meter Equivalent Ratio Customer Component Service Component Total Fixed Charge 5/8" 1.00 $5.51 $21.86 $27.37 3/4" 1.50 $5.51 $32.79 $38.30 1" 2.50 $5.51 $54.65 $60.16 1.5" 5.00 $5.51 $109.30 $114.81 2" 8.00 $5.51 $174.88 $180.39 2 1/2" 11.50 $5.51 $251.39 $256.91 3" 15.00 $5.51 $327.90 $333.42 4" 25.00 $5.51 $546.50 $552.02 6" 50.00 $5.51 $1,093.01 $1,098.52 8" 80.00 $5.51 $1,748.81 $1,754.33 10" 115.00 $5.51 $2,513.92 $2,519.43 5.4.2 Recycled Water Usage Rates Recycled water usage rates are calculated by dividing the total variable revenue requirements by the projected recycled water demands. Table 63 shows the calculation of the recycled water usage rate for FYE 2025. Table 63 Recycled Water Usage Rate Design Summary, FYE 2025 Customer Class Base ($ millions) Supply ($ millions) Total Costs to Recover ($ millions) Projected Demand (ccf) Rate ($/ccf) Recycled $3.97 $4.23 $8.20 1,852,895 $4.43 Feb. 11, 2025 Item #8 Page 171 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT POTABLE AND RECYCLED WATER COST-OF-SERVICE STUDY 62 5.5 Proposed Potable Water Rates Tables 64 through Table 67 present proposed potable water rates for the next three years. As discussed previously, the implementation of the rates initially calculated for January 1, 2025 will be delayed until July 1, 2025. Proposed rates for July 1, 2025 reflect the calculated overall revenue requirement increases as well as a cost-of-service adjustment to reflect the updated rate structure and cost allocations. As such, the percentage increase in each individual rate will vary in the first year. 5.5.1 Water Delivery Fees Table 64 Proposed Carlsbad Potable Water Delivery Fees Meter Size FYE 2025 Proposed Delayed to Jul. 1, 2025 FYE 2026 Proposed Jan. 1, 2026 FYE 2027 Proposed Jan. 1, 2027 CMWD Increase 10.91% with COS Adjustment 10.00% 10.00% 5/8" $17.02 $18.72 $20.59 3/4" $20.79 $22.87 $25.15 1" $28.33 $31.16 $34.27 1.5" $47.17 $51.89 $57.08 2" $69.79 $76.77 $84.45 2 1/2" $96.18 $105.80 $116.38 3" $122.57 $134.82 $148.31 4" $197.96 $217.76 $239.53 6" $386.45 $425.09 $467.60 8" $612.63 $673.89 $741.28 10" $876.50 $964.15 $1,060.57 Table 65 Calculated SDCWA Pass-Through Fees Meter Size FYE 2025 Proposed Delayed to Jul. 1, 2025 FYE 2026 Proposed Jan. 1, 2026 FYE 2027 Proposed Jan. 1, 2027 5/8" $16.66 $19.17 $19.99 3/4" $22.77 $26.15 $27.27 1" $37.66 $43.24 $45.08 1.5" $74.43 $85.44 $89.08 2" $120.85 $138.78 $144.69 2 1/2" $173.39 $199.10 $207.58 3" $225.93 $259.43 $270.48 4" $378.31 $434.45 $452.96 6" $744.26 $854.35 $890.74 8" $1,208.47 $1,387.74 $1,446.86 10" $1,751.52 $2,011.75 $2,097.48 Feb. 11, 2025 Item #8 Page 172 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT POTABLE AND RECYCLED WATER COST-OF-SERVICE STUDY 63 Table 66 Proposed Total Potable Water Delivery Fees Meter Size Current FYE 2025 Proposed Delayed to Jul. 1, 2025 FYE 2026 Proposed Jan. 1, 2026 FYE 2027 Proposed Jan. 1, 2027 5/8" $28.94 $33.68 $37.89 $40.58 3/4" $38.84 $43.56 $49.02 $52.42 1" $58.65 $65.99 $74.40 $79.35 1.5" $108.17 $121.60 $137.33 $146.16 2" $167.60 $190.64 $215.55 $229.14 2 1/2" $236.93 $269.57 $304.90 $323.96 3" $306.26 $348.50 $394.25 $418.79 4" $504.35 $576.27 $652.21 $692.49 6" $999.57 $1,130.71 $1,279.44 $1,358.34 8" $1,593.84 $1,821.10 $2,061.63 $2,188.14 10" $2,287.15 $2,628.02 $2,975.90 $3,158.05 5.5.2 Water Usage Fees Table 67 Proposed Potable Water Usage Fees Customer Class Tier Current ($/ccf) FYE 2025 Proposed Delayed to Jul. 1, 2025 FYE 2026 Proposed Jan. 1, 2026 FYE 2027 Proposed Jan. 1, 2027 SDCWA Pass-Through All $4.01 $4.62 $4.81 CMWD Increase 10.91% with COS Adjustment 10.00% 10.00% Single Family Residential Tier 1 $4.00 $1.18 $1.30 $1.43 Tier 2 $4.97 $1.51 $1.67 $1.83 Tier 3 $7.69 n/a n/a n/a Multi-Family Residential Tier 1 $3.95 $1.18 $1.29 $1.42 Tier 2 $6.13 $1.36 $1.50 $1.65 CI&I n/a $4.52 $1.30 $1.42 $1.57 Agricultural n/a $4.89 $1.40 $1.54 $1.69 Irrigation n/a $5.69 $1.44 $1.58 $1.74 Feb. 11, 2025 Item #8 Page 173 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT POTABLE AND RECYCLED WATER COST-OF-SERVICE STUDY 64 Customer Class Tier Current ($/ccf) FYE 2025 Proposed Delayed to Jul. 1, 2025 FYE 2026 Proposed Jan. 1, 2026 FYE 2027 Proposed Jan. 1, 2027 Total Water Usage Fees Single Family Residential Tier 1 $4.00 $5.19 $5.92 $6.24 Tier 2 $4.97 $5.52 $6.29 $6.64 Tier 3 $7.69 n/a n/a n/a Multi-Family Residential Tier 1 $3.95 $5.19 $5.91 $6.23 Tier 2 $6.13 $5.37 $6.12 $6.46 CI&I n/a $4.52 $5.31 $6.04 $6.38 Agricultural n/a $4.89 $5.41 $6.16 $6.50 Irrigation n/a $5.69 $5.45 $6.20 $6.55 5.6 Proposed Recycled Water Rates Table 68 and Table 69 present the current and proposed recycled water rates for the next three years, as well as projected rates for FYE 2028 and FYE 2029. Table 68 Proposed Recycled Water Delivery Fees Meter Size Current FYE 2025 Proposed Delayed to Jul. 1, 2025 FYE 2026 Proposed Jan. 1, 2026 FYE 2027 Proposed Jan. 1, 2027 Increase -- 4.50% with COS Adjustment 4.50% 4.50% 5/8" $25.36 $27.37 $28.61 $29.89 3/4" $35.54 $38.30 $40.03 $41.83 1" $55.91 $60.16 $62.87 $65.70 1.5" $106.81 $114.81 $119.98 $125.38 2" $167.90 $180.39 $188.51 $197.00 2 1/2" $239.17 $256.91 $268.47 $280.55 3" $310.44 $333.42 $348.42 $364.10 4" $514.07 $552.02 $576.86 $602.82 6" $1,023.14 $1,098.52 $1,147.95 $1,199.61 8" $1,634.02 $1,754.33 $1,833.27 $1,915.77 10" $2,346.71 $2,519.43 $2,632.80 $2,751.28 Feb. 11, 2025 Item #8 Page 174 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT POTABLE AND RECYCLED WATER COST-OF-SERVICE STUDY 65 Table 69 Proposed Recycled Water Usage Fees Customer Class Current ($/ccf) FYE 2025 Proposed Delayed to Jul. 1, 2025 FYE 2026 Proposed Jan. 1, 2026 FYE 2027 Proposed Jan. 1, 2027 Increase -- 4.50% with COS Adjustment 4.50% 4.50% Recycled $4.26 $4.43 $4.63 $4.84 5.7 Proposed Fire Service Rates Table 70 presents the current and adopted fire service delivery fee rates over the next three years, as well as projected rates for FYE 2028 and FYE 2029. Table 70 Proposed Fire Service Delivery Fees Meter Size Current FYE 2025 Proposed Delayed to Jul. 1, 2025 FYE 2026 Proposed Jan. 1, 2026 FYE 2027 Proposed Jan. 1, 2027 Effective Increase -- 4.5% with COS Adjustment 10.00% 10.00% 5/8" $8.67 $9.37 $10.31 $11.34 3/4" $8.79 $9.39 $10.33 $11.36 1" $9.02 $9.46 $10.40 $11.44 1.5" $9.62 $9.70 $10.67 $11.74 2" $10.33 $10.11 $11.13 $12.24 2 1/2" $11.15 $10.74 $11.81 $12.99 3" $11.98 $11.60 $12.76 $14.04 4" $14.35 $14.17 $15.59 $17.15 6" $20.26 $23.39 $25.73 $28.30 8" $27.36 $39.29 $43.22 $47.54 10" $35.65 $63.20 $69.52 $76.47 12" $55.76 $96.35 $105.98 $116.58 5.8 Airport Capital Charges The District owns and operates distribution and fire protection infrastructure that is in place exclusively to serve the McClellan-Palomar Airport (Airport). The operation, maintenance, and eventual replacement of the Airport system is undertaken by the District as a service to the San Diego County Department of Public Works. Because the assets servicing the airport are incremental to the District’s greater system, the cost to replace those assets should be recovered exclusively from Airport customers. This section outlines the calculation of proposed Airport capital charges based on the expected capital improvements needed at the airport over the next 25-years and the number and size of airport service meter and fire line service connections served by the airport system. Feb. 11, 2025 Item #8 Page 175 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT POTABLE AND RECYCLED WATER COST-OF-SERVICE STUDY 66 Revenues collected through the Airport capital charges have been projected based on the analysis discussed below and are included in the “Non-Rate Charges For Services” line in Table 7. Revenues from the Airport capital charges could be held aside to be spent specifically on airport projects. Alternatively, they can be treated as offsetting revenues with the understanding that once Airport projects need to be completed they will be funded along with the District’s other CIP projects recognizing that the District will have been previously compensated through the capital charges. 5.8.1 Airport System Capital Costs The District maintains records of the Airport assets, the replacement cost associated with each asset, and the estimated timing of those replacements. As shown in Table 71 the total value of the Airport assets is $6.81 million (2023 dollars). However, only a portion of the assets are expected to be replaced over the evaluation period resulting in escalated capital requirements of $2.40 million over the next 25 years. Table 71 Airport Assets and Capital Needs (Millions) Asset Type Replacement Cost (2023 dollars) Capital Required over the Next 25 Years (Escalated) Hydrants $1.18 $0.80 Valves $0.45 $0.29 Blow Off $0.19 $0.13 Air Vacuum Assembly $0.06 $0.03 Water Main $4.93 $1.15 Total Airport Specific Assets $6.81 $2.40 Notes: (1) Line or column totals may not tie due to rounding. The annual cost of projected capital replacements varies year-to-year and would therefore cause significant charge volatility if passed directly to the Airport customers. The proposed capital charges will be based on an increasing annual payment structure designed to generate the total capital needs, $2.40 million, over a 25-year period assuming annual increases of 3.5-percent. Table 72 shows the calculated total annual Airport capital charge in 2023 dollars, $61,506. The projected total charge for future years is calculated by applying the 3.5-percent per year charge growth rate, as shown in Table 73. The total charge for each year serves as the basis for calculating charges per service meter or fire line connection discussed in the next section. Table 72 Annual Airport Capital Charge Calculation Calculation Item Value Capital Required over the Next 25 Years (Escalated) (millions) FV $2.40 Annual Payment Increase (growth) g 3.50% Interest Rate r 0.00% Number of Years n 25 Annual Total Airport Charge (2023 Dollars) P $61,506 𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸: 𝑃𝑃=𝐹𝐹𝐹𝐹((1+𝑟𝑟)𝑛𝑛−(1+𝑔𝑔)𝑛𝑛) (𝑟𝑟−𝑔𝑔)⁄ Notes: (1) Line or column totals may not tie due to rounding. Feb. 11, 2025 Item #8 Page 176 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT POTABLE AND RECYCLED WATER COST-OF-SERVICE STUDY 67 Table 73 Projected Annual Airport Capital Charges Year Total Airport Charge FYE 2025 Annual Charge (includes 2-years of escalation at 3.5% applied to the 2023 value) $65,887 FYE 2026 $68,193 FYE 2027 $70,580 FYE 2028 $73,050 FYE 2029 $75,607 5.8.2 Monthly Airport Capital Charge Calculations The Airport system serves meters for offices, restaurants, hospitality, and other general facilities (referred to as service meters) as well as larger capacity fire line connections for fire suppression water in the above-mentioned areas as well as in hangers, fueling areas, maintenance areas and other facilities. Table 74 shows the number of service meters, by size, as well as the number of MEUs. Table 74 Airport Service Meters Meter Size MEU Ratio Connections MEUs 5/8" 1 1 1 3/4" 1.5 1 1.5 1" 2.5 8 20 1.5" 5 4 20 2" 8 5 40 Total Service Meters 19 82.5 Table 75 shows the fire line connections, by size, as well as the number fire capacity units. As discussed in Section 5.2, fire capacity units are determined by raising the line size in inches to the 2.63 power. Table 75 Airport Fire Line Connections Fire line Size Capacity Factor Connections Capacity Units 4" 38.32 1 38 6" 111.31 4 445 8" 237.21 6 1,423 Total Fire lines 11 1,907 Notes: (1) Line or column totals may not tie due to rounding. The total Airport capital charge to be collected is allocated between service meter connections and fire line connections to reflect the capacity needs of each type of service. The allocation is based on estimated flow requirements as shown in Table 76. Flow for service meters is calculated assuming 20 gpm per MEU, resulting in total service meter capacity requirements of 1,650 gpm. Fire flow requirements are assumed at 4,000 gpm based on the fire flow assumption used in the District’s master plan. These flow capacities result in a capital charge cost allocation of 29.2-percent for service meters and 70.8-percent for fire line connections. Feb. 11, 2025 Item #8 Page 177 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT POTABLE AND RECYCLED WATER COST-OF-SERVICE STUDY 68 Table 76 Airport System Capacity Allocation Service Section Capacity (gpm) Share of Capacity Service Meters Flow Capacity (20 gpm per MEU) 1650 29.2% Fire Flow Requirements (gpm) 4000 70.8% Total Flow Capacity Required (gpm) 5650 100% Notes: (1) Line or column totals may not tie due to rounding. Table 77 shows the calculation of the Airport capital charge for service meters. The charge is calculated using the following steps: First, the service meters’ share of the total annual charge is calculated by applying the service meters share of capacity, 29.2-percent to the total annual charges from Table 73. Next, a unit cost per MEU is determined by dividing the service meters’ share of the total annual charges by the number of service meter MEUs and dividing by 12 to reflect a monthly amount. Lastly, the monthly charge per MEU is multiplied by the MEU ratio for each meter size to determine a monthly charge by meter size. Table 77 Monthly Airport Capital Charge - Service Meters FYE 2025 FYE 2026 FYE 2027 Service Meters Share of Total Charge 29.2% $19,241 $19,915 $20,612 Service Meter MEUs 82.5 82.5 82.5 Monthly Charge Per MEU $19.44 $20.12 $20.82 Meter Size MEU Ratio FYE 2025 Proposed Delayed to Jul. 1 2025 FYE 2026 Proposed Jan. 1 2026 FYE 2027 Proposed Jan. 1 2027 5/8" 1 $19.44 $20.12 $20.82 3/4" 1.5 $29.15 $30.17 $31.23 1" 2.5 $48.59 $50.29 $52.05 1.5" 5 $97.18 $100.58 $104.10 2" 8 $155.49 $160.93 $166.56 Notes: (1) Line or column totals may not tie due to rounding. Table 78 shows the calculation of the Airport capital charge for fire line connections. The charge is calculated using the following steps: First, the fire line connections’ share of the total annual charge is calculated by applying the fire line share of capacity, 70.8-percent to the total annual charges from Table 73. Next, a unit cost per capacity unit is determined by dividing the fire line connections’ share of the total annual charges by the number of fire line capacity units and dividing by 12 to reflect a monthly amount. Last, the monthly charge per capacity unit is multiplied by the capacity factor for each connection size to determine a monthly charge by fire line connection size. Feb. 11, 2025 Item #8 Page 178 of 265 2025 POTABLE AND RECYCLED WATER COST OF SERVICE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT POTABLE AND RECYCLED WATER COST-OF-SERVICE STUDY 69 Table 78 Monthly Airport Capital Charge – Fire Line Connections FYE 2025 FYE 2026 FYE 2027 Fire Connections Share of Total Charge 70.8% $46,646 $48,278 $49,968 Fire line Capacity Units 1907 1907 1907 Monthly Charge per Fire line Capacity Unit $2.04 $2.11 $2.18 Line Size Capacity Factor FYE 2025 Proposed Delayed to Jul. 1 2025 FYE 2026 Proposed Jan. 1 2026 FYE 2027 Proposed Jan. 1 2027 4" 38.32 $78.12 $80.85 $83.68 6" 111.31 $226.91 $234.86 $243.08 8" 237.21 $483.56 $500.48 $518.00 Notes: (1) Line or column totals may not tie due to rounding. Feb. 11, 2025 Item #8 Page 179 of 265 2025 POTABLE AND RECYCLED WATER RATE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT POTABLE AND RECYCLED WATER COST-OF-SERVICE STUDY APPENDIX A CUSTOMER AND DEMAND FORECASTS Feb. 11, 2025 Item #8 Page 180 of 265 CITY OF CARLSABAD Potable Water and Recycled Water Financial Model Customer Data - Demand Projection Adjustment to Potable Sales Based on Priceout Check -0.37% SFR Growth Input 0.90% 0.88% 0.65% 0.22% 0.24% 0.86% 0.95% SINGLE FAMILY FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 TOTAL 3,310,144 3,339,402 3,361,234 3,368,511 3,376,457 3,405,566 3,437,943 MFR Growth Input 0.90% 0.88% 0.65% 0.22% 0.24% 0.86% 0.95% MULTI FAMILY FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 TOTAL 805,209 812,326 817,637 819,407 821,340 828,421 836,297 Commercial/Other Growth Input 0.61% 0.12% 0.46% 0.25% 1.05% 1.40% 1.26% COMM/OTHER FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 TOTAL 1,245,118 1,246,631 1,252,320 1,255,392 1,268,512 1,286,310 1,302,463 Ag Growth Input 0.90% 0.88% 0.65% 0.22% 0.24% 0.86% 0.95% AGRICULTURAL FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 TOTAL 80,295 81,005 81,534 81,711 81,903 82,610 83,395 Irr Growth Input 0.90%0.88%0.65%0.22%0.24%0.86%0.95% IRRIGATION FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 TOTAL 691,340 697,451 702,011 703,531 705,190 711,270 718,032 Carlsbad Potable & Recycled Water Financial Model DRAFT REPORT 1-24-2025.xlsm Customer Data - Appendix G Page 1 of 2Feb. 11, 2025 Item #8 Page 181 of 265 CITY OF CARLSABAD Potable Water and Recycled Water Financial Model Customer Data - Demand Projection RW Price Out Adjustment 1.13% RW Growth Input 0.90% 0.88% 0.65% 0.22% 0.24% 0.86% 0.95% RECYCLED WATER FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 TOTAL 1,824,731 1,840,860 1,852,895 1,856,907 1,861,287 1,877,333 1,895,181 AF 4,226.03 4,253.66 4,262.87 4,272.93 4,309.76 4,350.74 Conversion:1 AF = 436 ccf TOTAL POTABLE WATER (AF)FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 SFR 7,599 7,666 7,716 7,733 7,751 7,818 7,892 MFR 1,849 1,865 1,877 1,881 1,886 1,902 1,920 Commerical 2,858 2,862 2,875 2,882 2,912 2,953 2,990 Agriculture 184 186 187 188 188 190 191 Irrigation 1,587 1,601 1,612 1,615 1,619 1,633 1,648 Total Potable Water 14,077 14,180 14,267 14,299 14,356 14,495 14,642 Carlsbad Potable & Recycled Water Financial Model DRAFT REPORT 1-24-2025.xlsm Customer Data - Appendix G Page 2 of 2Feb. 11, 2025 Item #8 Page 182 of 265 CI T Y O F C A R L S B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Cu s t o m e r A c c o u n t s P r o j e c t i o n Po t a b l e W a t e r Ad j u s t m e n t t o P o t a b l e M e t e r s B a s e d o n P r i c e o u t C h e c k - 0 . 4 6 % Ac c o u n t s I n p u t b a s e d o n 1 2 - 3 1 - 2 3 C a r l s b a d M e t e r C o u n t s . p d f FY E 2 0 2 2 F Y E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 FY E 2 0 2 4 Si n g l e F a m i l y 5/ 8 " 21 , 1 9 4 21 , 2 6 2 21 , 0 8 0 21 , 2 3 7 21 , 3 6 7 21 , 4 1 2 21 , 4 9 2 21 , 7 0 4 21 , 1 7 7 3/ 4 " 1, 4 2 5 1, 4 3 0 1, 4 0 1 1,4 1 1 1, 4 2 0 1, 4 2 3 1, 4 2 8 1, 4 4 2 1, 4 0 7 1" 1, 7 7 2 1, 7 7 8 1, 8 2 7 1,8 4 1 1, 8 5 2 1, 8 5 6 1, 8 6 3 1, 8 8 1 1, 8 3 6 1. 5 " 22 22 23 23 23 23 23 24 23 2" 7 7 7 7 7 7 7 7 7 2. 5 " 1 1 1 1 1 1 1 1 1 3" 0 0 0 0 0 0 0 0 0 4" 0 0 0 0 0 0 0 0 0 6" 0 0 0 0 0 0 0 0 0 8" 0 0 0 0 0 0 0 0 0 10 " 0 0 0 0 0 0 0 0 0 TO T A L 24 , 4 2 1 24 , 4 9 9 24 , 3 3 9 24 , 5 2 1 24 , 6 7 0 24 , 7 2 2 24 , 8 1 5 25 , 0 6 0 24 , 4 5 2 Mu l t i - F a m i l y 5/ 8 " 31 4 31 5 31 6 31 9 32 0 32 1 32 2 32 6 31 8 3/ 4 " 13 3 13 3 13 4 13 5 13 6 13 6 13 7 13 8 13 5 1" 20 5 20 6 20 6 20 8 20 9 21 0 21 0 21 3 20 7 1. 5 " 25 5 25 6 25 7 25 9 26 0 26 1 26 2 26 4 25 8 2" 34 1 34 2 34 3 34 6 34 8 34 9 35 0 35 3 34 5 2. 5 " 0 0 0 0 0 0 0 0 0 3" 12 12 12 12 12 12 12 12 12 4" 4 4 4 4 4 4 4 4 4 6" 2 2 2 2 2 2 2 2 2 8" 0 0 0 0 0 0 0 0 0 10 " 0 0 0 0 0 0 0 0 0 TO T A L 1, 2 6 6 1, 2 7 0 1, 2 7 4 1,2 8 4 1, 2 9 2 1, 2 9 4 1, 2 9 9 1, 3 1 2 1, 2 8 0 Feb. 11, 2025 Item #8 Page 183 of 265 CI T Y O F C A R L S B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Cu s t o m e r A c c o u n t s P r o j e c t i o n Po t a b l e W a t e r Ad j u s t m e n t t o P o t a b l e M e t e r s B a s e d o n P r i c e o u t C h e c k - 0 . 4 6 % Ac c o u n t s I n p u t b a s e d o n 1 2 - 3 1 - 2 3 C a r l s b a d M e t e r C o u n t s . p d f FY E 2 0 2 2 F Y E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 FY E 2 0 2 4 Co m m e r c i a l / O t h e r 5/ 8 " 25 9 26 0 25 9 26 1 26 2 26 3 26 4 26 6 26 0 3/ 4 " 14 9 14 9 15 5 15 6 15 7 15 8 15 8 16 0 15 6 1" 29 8 29 9 30 1 30 3 30 5 30 5 30 6 31 0 30 2 1. 5 " 33 8 33 9 33 9 34 2 34 4 34 5 34 6 34 9 34 1 2" 60 5 60 7 62 4 62 9 63 3 63 4 63 6 64 3 62 7 2. 5 " 1 1 1 1 1 1 1 1 1 3" 43 43 7 7 7 7 7 7 7 4" 5 5 5 5 5 5 5 5 5 6" 4 4 1 1 1 1 1 1 1 8" 2 2 2 2 2 2 2 2 2 10 " 0 0 0 0 0 0 0 0 0 TO T A L 1, 7 0 4 1, 7 0 9 1, 6 9 4 1,7 0 7 1, 7 1 7 1, 7 2 1 1, 7 2 7 1, 7 4 4 1, 7 0 2 Ag r i c u l t u r a l 5/ 8 " 0 0 0 0 0 0 0 0 0 3/ 4 " 0 0 0 0 0 0 0 0 0 1" 1 1 1 1 1 1 1 1 1 1. 5 " 0 0 0 0 0 0 0 0 0 2" 4 4 5 5 5 5 5 5 5 2. 5 " 0 0 0 0 0 0 0 0 0 3" 2 2 2 2 2 2 2 2 2 4" 4 4 4 4 4 4 4 4 4 6" 0 0 0 0 0 0 0 0 0 8" 0 0 0 0 0 0 0 0 0 10 " 0 0 0 0 0 0 0 0 0 TO T A L 11 11 12 12 12 12 12 12 12 Feb. 11, 2025 Item #8 Page 184 of 265 CI T Y O F C A R L S B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Cu s t o m e r A c c o u n t s P r o j e c t i o n Po t a b l e W a t e r Ad j u s t m e n t t o P o t a b l e M e t e r s B a s e d o n P r i c e o u t C h e c k - 0 . 4 6 % Ac c o u n t s I n p u t b a s e d o n 1 2 - 3 1 - 2 3 C a r l s b a d M e t e r C o u n t s . p d f FY E 2 0 2 2 F Y E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 FY E 2 0 2 4 Ir r i g a t i o n 5/ 8 " 76 76 79 79 80 80 80 81 79 3/ 4 " 57 57 59 59 60 60 60 60 59 1" 17 9 18 0 18 4 18 6 18 7 18 7 18 8 19 0 18 5 1. 5 " 18 4 18 5 18 3 18 5 18 6 18 6 18 7 18 9 18 4 2" 26 3 26 4 27 1 27 3 27 4 27 5 27 6 27 9 27 2 2. 5 " 0 0 0 0 0 0 0 0 0 3" 0 0 1 1 1 1 1 1 1 4" 4 4 6 6 6 6 6 6 6 6" 4 4 4 4 4 4 4 4 4 8" 1 1 1 1 1 1 1 1 1 10 " 0 0 0 0 0 0 0 0 0 TO T A L 76 8 77 0 78 7 79 3 79 8 80 0 80 3 81 1 79 1 Po t a b l e T o t a l ME U R a t i o (5 / 8 " B a s i s ) ME U R a t i o (S D C W A I A C , 3/ 4 " B a s i s ) 5/ 8 " 1. 0 0 1 . 0 0 21 , 8 4 3 21 , 9 1 3 21 , 7 3 3 21 , 8 9 6 22 , 0 2 9 22 , 0 7 6 22 , 1 5 8 22 , 3 7 7 3/ 4 " 1. 5 0 1 . 0 0 1, 7 6 4 1, 7 7 0 1, 7 4 9 1,7 6 2 1, 7 7 3 1, 7 7 6 1, 7 8 3 1, 8 0 1 1" 2. 5 0 1 . 6 0 2, 4 5 5 2, 4 6 3 2, 5 1 9 2,5 3 8 2, 5 5 4 2, 5 5 9 2, 5 6 9 2, 5 9 4 1. 5 " 5. 0 0 3 . 0 0 79 9 80 2 80 2 80 8 81 3 81 5 81 8 82 6 2" 8. 0 0 5 . 2 0 1, 2 2 0 1, 2 2 4 1, 2 5 0 1,2 6 0 1, 2 6 7 1, 2 7 0 1, 2 7 5 1, 2 8 7 2. 5 " 11 . 5 0 7 . 4 0 2 2 2 2 2 2 2 2 3" 15 . 0 0 9 . 6 0 57 57 22 22 22 22 22 23 4" 25 . 0 0 1 6 . 4 0 17 17 19 19 19 19 19 19 6" 50 . 0 0 3 0 . 0 0 10 10 7 7 7 7 7 7 8" 80 . 0 0 5 2 . 0 0 3 3 3 3 3 3 3 3 10 " 11 5 . 0 0 7 8 . 0 0 0 0 0 0 0 0 0 0 TO T A L 28 , 1 7 0 28 , 2 6 0 28 , 1 0 7 28 , 3 1 7 28 , 4 9 0 28 , 5 4 9 28 , 6 5 7 28 , 9 3 9 Po t a b l e M E U s ( 5 / 8 " B a s i s ) 46 , 4 2 5 46 , 5 7 3 46 , 0 7 9 46 , 4 2 4 46 , 7 0 7 46 , 8 0 5 46 , 9 8 1 47 , 4 4 4 Po t a b l e M E U s ( S D C W A I A C , 3 / 4 " B a s i s ) 37 , 5 7 3 37 , 6 9 3 37 , 3 2 0 37 , 6 0 0 37 , 8 2 9 37 , 9 0 8 38 , 0 5 1 38 , 4 2 6 Feb. 11, 2025 Item #8 Page 185 of 265 CI T Y O F C A R L S B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Cu s t o m e r A c c o u n t s P r o j e c t i o n Po t a b l e W a t e r Ad j u s t m e n t t o P o t a b l e M e t e r s B a s e d o n P r i c e o u t C h e c k - 0 . 4 6 % Ac c o u n t s I n p u t b a s e d o n 1 2 - 3 1 - 2 3 C a r l s b a d M e t e r C o u n t s . p d f FY E 2 0 2 2 F Y E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 FY E 2 0 2 4 Re c y c l e d W a t e r Ad j u s t m e n t t o P o t a b l e M e t e r s B a s e d o n P r i c e o u t C h e c k 0 . 6 4 % ME U R a t i o (5 / 8 " B a s i s ) 5/ 8 " 1. 0 0 5 5 5 5 5 5 5 5 3/ 4 " 1. 5 0 17 17 17 17 18 18 18 18 1" 2. 5 0 24 9 24 9 25 1 25 3 25 5 25 5 25 6 25 9 1. 5 " 5. 0 0 34 0 34 1 34 4 34 7 34 9 35 0 35 1 35 4 2" 8. 0 0 33 1 33 2 33 5 33 7 33 9 34 0 34 1 34 5 2. 5 " 11 . 5 0 0 0 0 0 0 0 0 0 3" 15 . 0 0 9 9 9 9 9 9 9 9 4" 25 . 0 0 6 6 6 6 6 6 6 6 6" 50 . 0 0 3 3 3 3 3 3 3 3 8" 80 . 0 0 0 0 0 0 0 0 0 0 10 " 11 5 . 0 0 0 0 0 0 0 0 0 0 TO T A L 96 0 96 3 97 1 97 8 98 4 98 6 99 0 1, 0 0 0 Re c y c l e d M E U s ( 5 / 8 " B a s i s ) 5, 4 5 7 5, 5 0 2 5, 5 4 3 5, 5 7 7 5, 5 8 9 5, 6 1 0 5, 6 6 5 Feb. 11, 2025 Item #8 Page 186 of 265 2025 POTABLE AND RECYCLED WATER RATE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT POTABLE AND RECYCLED WATER COST-OF-SERVICE STUDY APPENDIX B WATER SUPPLY PURCHASES AND COSTS Feb. 11, 2025 Item #8 Page 187 of 265 20 2 2 20 2 3 20 2 4 20 2 5 20 2 6 20 2 7 20 2 8 20 2 9 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Wa t e r P u r c h a s e s - P a s s T h r u s FY E 2 0 2 2 F Y E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 WA T E R P U R C H A S E E S C A L A T O R S Cu s t o m e r S e r v i c e C h a r g e I n c r e a s e (2 ) ( 3 ) 5. 0 0 % 5. 0 0 % 3. 8 5 % 4. 9 0 % 15 . 0 0 % 4. 0 0 % 3. 7 8 % 3. 2 8 % Em e r g e n c y S t o r a g e C h a r g e I n c r e a s e (2 ) ( 3 ) 2. 0 0 % 2. 0 0 % 0. 0 0 % 3. 1 7 % 15 . 0 0 % 4. 0 0 % 3. 7 8 % 3. 2 8 % In f r a s t r u c t u r e A c c e s s C h a r g e I n c r e a s e (2 ) ( 3 ) 1. 0 0 % 1. 0 0 % 1. 8 9 % 4. 0 8 % 15 . 0 0 % 4. 0 0 % 3. 7 8 % 3. 2 8 % Su p p l y R e l i a b i l i t y C h a r g e I n c r e a s e ( 2 ) ( 3 ) 5. 0 0 % 5. 0 0 % 5. 0 0 % 22 . 5 3 % 15 . 0 0 % 4. 0 0 % 3. 7 8 % 3. 2 8 % Fi x e d T r a n s p o r t a t i o n C h a r g e 15 . 0 0 % 4. 0 0 % 3. 7 8 % 3. 2 8 % MW D C a p a c i t y R e s e r v a t i o n C h a r g e I n c r e a s e ( 2 ) ( 3 ) 3. 0 0 % 3. 0 0 % 3. 0 0 % 16 . 1 0 % 11 . 5 0 % 11 . 5 0 % 5. 0 0 % 5. 0 0 % MW D R e a d i n e s s t o S e r v i c e C h a r g e I n c r e a s e 6. 0 0 % 6. 0 0 % 3. 0 0 % 4. 0 0 % 11 . 5 0 % 11 . 5 0 % 5. 0 0 % 5. 0 0 % Tr a n s p o r t a t i o n R a t e I n c r e a s e (3 ) 5. 0 0 % 5. 0 0 % 5. 0 0 % -2 5 . 4 0 % 15 . 0 0 % 4. 0 0 % 3. 7 8 % 3. 2 8 % SD C W A M & I M e l d e d S u p p l y R a t e I n c r e a s e (3 ) 6. 0 0 % 6. 0 0 % 6. 0 0 % 19 . 1 7 % 15 . 0 0 % 4. 0 0 % 3. 7 8 % 3. 2 8 % SD C W A M e l d e d T r e a t m e n t R a t e I n c r e a s e ( 3 ) 2. 0 0 % 2. 0 0 % 2. 0 0 % 25 . 0 0 % 15 . 0 0 % 4. 0 0 % 3. 7 8 % 3. 2 8 % De s a l - F i x e d C a p i t a l I n c r e a s e ( 1 ) 2. 5 0 % 2. 5 0 % 2. 5 0 % 2. 5 0 % 2.5 0 % 2. 5 0 % 2. 5 0 % 2. 5 0 % De s a l - F i x e d F i n a n c i n g I n c r e a s e ( 1 ) 9. 7 0 % 9. 7 0 % 9. 7 0 % 9. 7 0 % 9.7 0 % 9. 7 0 % 9. 7 0 % 9. 7 0 % De s a l - F i x e d O & M I n c r e a s e ( 1 ) 2. 5 0 % 2. 5 0 % 2. 5 0 % 2. 5 0 % 2.5 0 % 2. 5 0 % 2. 5 0 % 2. 5 0 % De s a l - F i x e d E l e c t r i c i t y I n c r e a s e ( 1 ) 2. 5 0 % 2. 5 0 % 2. 5 0 % 2. 5 0 % 2.5 0 % 2. 5 0 % 2. 5 0 % 2. 5 0 % De s a l - V a r i a b l e O & M I n c r e a s e ( 1 ) 2. 5 0 % 2. 5 0 % 2. 5 0 % 2. 5 0 % 2.5 0 % 2. 5 0 % 2. 5 0 % 2. 5 0 % De s a l - V a r i a b l e E l e c t r i c i t y I n c r e a s e (1 ) 3. 0 0 % 3. 0 0 % 3. 0 0 % 3. 0 0 % 3.0 0 % 3. 0 0 % 3. 0 0 % 3. 0 0 % De s a l - C o n v e y a n c e C o s t I n c r e a s e ( 1 ) 2. 5 0 % 2. 5 0 % 2. 5 0 % 2. 5 0 % 2.5 0 % 2. 5 0 % 2. 5 0 % 2. 5 0 % De s a l - I n d i r e c t C o s t s I n c r e a s e ( 1 ) 1. 5 0 % 1. 5 0 % 1. 5 0 % 1. 5 0 % 1.5 0 % 1. 5 0 % 1. 5 0 % 1. 5 0 % De s a l - T . O . I n e f f i c i e n c y I n c r e a s e ( 1 ) 6. 0 0 % 6. 0 0 % 6. 0 0 % 6. 0 0 % 6.0 0 % 6. 0 0 % 6. 0 0 % 6. 0 0 % De s a l - W h e e l i n g I n c r e a s e (1 ) 5. 0 0 % 5. 0 0 % 5. 0 0 % 5. 0 0 % 5.0 0 % 5. 0 0 % 5. 0 0 % 5. 0 0 % AF - - > c c f 43 6 cc f - - > g a l l o n s 74 8 NO T E S : (1 ) S o u r c e : D e s a l u n i t c o s t s f r o m 2 0 2 3 - 0 4 - 1 0 _ D e s a l U n i t P r i c e P r o j e c t i o n . p d f (2 ) S o u r c e s : 2 0 2 4 r a t e s f r o m S D C W A D r a f t R e c c o m e n d e d B u d g e t h t t p s : / / w w w . s d c w a . o r g / w p - c o n t e n t / u p l o a d s / 2 0 2 2 / 1 0 / S D C W A - D r a f t - R e c o m m e n d e d - B u d g e t - F Y s - 2 4 . 2 5 - 3 . 2 3 . p d f , 2 0 2 5 r a t e s f r o m p u b l i s h e d r a t e s o n S D C W A . o r g a s o f 8 / 2 8 / 2 0 2 4 (3 ) F Y 1 9 : S D C W A c h a r g e e s c a l a t o r s b a s e d o n i n f o r m a t i o n f o r m S D C W A . Feb. 11, 2025 Item #8 Page 188 of 265 20 2 2 20 2 3 20 2 4 20 2 5 20 2 6 20 2 7 20 2 8 20 2 9 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Wa t e r P u r c h a s e s - P a s s T h r u s FY E 2 0 2 2 F Y E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 FY E 2 0 2 2 F Y E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 SD C W A / M W D P u r c h a s e s Wa t e r C o n s u m p t i o n O v e r r i d e Wa t e r P u r c h a s e s (A F ) 12 , 3 0 3 12 , 1 9 5 12 , 3 8 9 12 , 4 8 0 12 , 5 1 4 12 , 5 7 4 12 , 7 2 0 12 , 8 7 4 Wa t e r P u r c h a s e s (c c f ) 5, 3 5 8 , 9 6 9 5, 3 1 2 , 2 9 9 5, 3 9 6 , 6 5 5 5, 4 3 6 , 4 7 2 5, 4 5 0 , 9 8 0 5, 4 7 7 , 0 7 2 5, 5 4 0 , 8 8 5 5, 6 0 8 , 0 3 5 Wa t e r P u r c h a s e e (M G D ) 10 . 9 8 10 . 8 9 11 . 0 6 11 . 1 4 11 . 1 7 11 . 2 3 11 . 3 6 11 . 4 9 0. 7 3 % 0. 6 1 % 0.2 2 % 0. 4 0 % 0. 9 7 % 1. 0 1 % Cu s t o m e r D a t a ( c c f ) 6, 1 7 6 , 8 1 4 6, 1 3 2 , 1 0 7 6, 1 7 6 , 8 1 4 6, 2 1 4 , 7 3 5 6, 2 2 8 , 5 5 2 6, 2 5 3 , 4 0 2 6,3 1 4 , 1 7 6 6, 3 7 8 , 1 2 9 Sy s t e m L o s s ( i n p u t ) 4. 4 % 4. 4 % 5. 0 % 5. 0 % 5. 0 % 5. 0 % 5. 0 % 5. 0 % Sy s t e m L o s s ( c a l c u l a t e d ) 5, 0 8 7 , 8 1 4 5, 0 4 3 , 1 0 7 5, 0 8 7 , 8 1 4 5, 1 2 5 , 7 3 5 5, 1 3 9 , 5 5 2 5, 1 6 4 , 4 0 2 5,2 2 5 , 1 7 6 5, 2 8 9 , 1 2 9 14 , 8 0 3 14 , 6 9 5 14 , 8 8 9 14 , 9 8 0 FY E 2 0 2 2 F Y E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 Fix e d C h a r g e s ( C Y ) ( 1 , 2 , 3 ) SD C W A I A C c h a r g e p e r M E U ( m o n t h l y ) 4. 2 4 $ 4.4 1 $ 4. 5 5 $ 5. 2 3 $ 5. 4 4 $ 5. 6 5 $ 5. 8 3 $ Ca r l s b a d M E U s f o r I A C - S D C W A c h a r g e s b a s e d o n 1 2 / 3 1 a c c o u n t s f r o m p r e v i o u s y e a r , F Y a v e r a g e a c c o u n t s a r e p r o j e c t e d f o r t h e m o d e l b y p r o j e c t i n g f r o m t h e 1 2 / 3 1 / 2 0 2 3 i n p u t s . 36 , 5 9 0 40 , 5 1 9 36 , 6 0 2 37 , 6 0 0 37 , 8 2 9 37 , 9 0 8 38 , 0 5 1 CY C a r l s b a d I A C C h a r g e 1, 8 6 1 , 7 0 4 $ 2, 1 4 4 , 2 6 8 $ 1, 9 9 8 , 4 8 0 $ 2, 3 6 0 , 8 7 9 $ 2, 4 7 0 , 2 8 0 $ 2, 5 6 9 , 0 2 4 $ 2, 6 6 3 , 1 4 4 $ MW D R e a d i n e s s t o S e r v e C h a r g e ( F Y ) 39 7 , 8 3 6 $ 38 8 , 9 2 0 $ 37 4 , 9 1 6 $ 39 5 , 5 5 6 $ 44 1 , 0 4 5 $ 49 1 , 7 6 5 $ 51 6 , 3 5 3 $ 54 2 , 1 7 1 $ MW D R e a d i n e s s t o S e r v e C h a r g e ( C Y ) 39 3 , 3 7 8 $ 38 1 , 9 1 8 $ 38 5 , 2 3 6 $ 41 8 , 3 0 0 $ 46 6 , 4 0 5 $ 50 4 , 0 5 9 $ 52 9 , 2 6 2 $ 55 5 , 7 2 5 $ Al l o c a t e d F i x e d C h a r g e s , C Y B a s i s Cu s t o m e r S e r v i c e C h a r g e 82 1 , 2 5 6 $ 82 6 , 8 3 6 $ 88 4 , 7 6 0 $ 1, 0 4 1 , 5 8 8 $ 1, 1 9 7 , 8 2 6 $ 1, 2 4 5 , 7 3 9 $ 1,2 9 2 , 8 2 3 $ 1, 3 3 5 , 1 7 2 $ Em e r g e n c y S t o r a g e C h a r g e 2, 0 7 3 , 2 7 6 2, 0 4 5 , 9 5 2 2, 0 8 3 , 6 0 8 2, 3 7 5 , 3 7 6 2, 7 3 1 , 6 8 2 2, 8 4 0 , 9 5 0 2,9 4 8 , 3 2 5 3, 0 4 4 , 9 0 3 In f r a s t r u c t u r e A c c e s s C h a r g e 1, 8 6 1 , 0 4 4 1, 8 6 1 , 7 0 4 2, 1 4 4 , 2 6 8 1, 9 9 8 , 4 8 0 2, 3 6 0 , 8 7 9 2, 4 7 0 , 2 8 0 2,5 6 9 , 0 2 4 2, 6 6 3 , 1 4 4 Su p p l y R e l i a b i l i t y C h a r g e 1, 3 5 2 , 4 6 0 1, 4 8 2 , 9 0 0 1, 5 1 4 , 6 5 2 1, 7 7 8 , 4 0 0 2, 0 4 5 , 1 6 0 2, 1 2 6 , 9 6 6 2,2 0 7 , 3 5 6 2, 2 7 9 , 6 6 2 Fi x e d T r a n s p o r t a t i o n C h a r g e - 1, 0 4 1 , 5 8 8 1, 1 9 7 , 8 2 6 1, 2 4 5 , 7 3 9 1,2 9 2 , 8 2 3 1, 3 3 5 , 1 7 2 MW D C a p a c i t y R e s e r v a t i o n C h a r g e 29 3 , 8 5 6 20 5 , 2 9 6 22 9 , 3 4 4 29 6 , 3 2 8 33 0 , 4 0 6 36 8 , 4 0 2 38 6 , 8 2 2 40 6 , 1 6 4 MW D R e a d i n e s s t o S e r v e C h a r g e ( A d j u s t e d t o C Y ) 39 3 , 3 7 8 38 1 , 9 1 8 38 5 , 2 3 6 41 8 , 3 0 0 46 6 , 4 0 5 50 4 , 0 5 9 52 9 , 2 6 2 55 5 , 7 2 5 So u r c e s : 2 0 2 4 r a t e s f r o m S D C W A D r a f t R e c c o m e n d e d B u d g e t h t t p s : / / w w w . s d c w a . o r g / w p - c o n t e n t / u p l o a d s / 2 0 2 2 / 1 0 / S D C W A - D r a f t - R e c o m m e n d e d - B u d g e t - F Y s - 2 4 . 2 5 - 3 . 2 3 . p d f 20 2 5 r a t e s f r o m p u b l i s h e d r a t e s o n S D C W A . o r g a s o f 8 / 2 8 / 2 0 2 4 Feb. 11, 2025 Item #8 Page 189 of 265 20 2 2 20 2 3 20 2 4 20 2 5 20 2 6 20 2 7 20 2 8 20 2 9 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Wa t e r P u r c h a s e s - P a s s T h r u s FY E 2 0 2 2 F Y E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 Fix e d C h a r g e s ( F Y ) Cu s t o m e r S e r v i c e C h a r g e 80 7 , 2 2 8 $ 82 4 , 0 4 6 $ 85 5 , 7 9 8 $ 96 3 , 1 7 4 $ 1, 1 1 9 , 7 0 7 $ 1, 2 2 1 , 7 8 3 $ 1,2 6 9 , 2 8 1 $ 1, 3 1 3 , 9 9 7 $ Em e r g e n c y S t o r a g e C h a r g e 2, 0 4 1 , 9 0 2 2, 0 5 9 , 6 1 4 2, 0 6 4 , 7 8 0 2, 2 2 9 , 4 9 2 2, 5 5 3 , 5 2 9 2, 7 8 6 , 3 1 6 2,8 9 4 , 6 3 7 2, 9 9 6 , 6 1 4 In f r a s t r u c t u r e A c c e s s C h a r g e 1, 8 5 7 , 8 8 8 1, 8 6 1 , 3 7 4 2, 0 0 2 , 9 8 6 2, 0 7 1 , 3 7 4 2, 1 7 9 , 6 8 0 2, 4 1 5 , 5 8 0 2,5 1 9 , 6 5 2 2, 6 1 6 , 0 8 4 Su p p l y R e l i a b i l i t y C h a r g e 1, 3 5 0 , 2 1 0 1, 4 1 7 , 6 8 0 1, 4 9 8 , 7 7 6 1, 6 4 6 , 5 2 6 1, 9 1 1 , 7 8 0 2, 0 8 6 , 0 6 3 2,1 6 7 , 1 6 1 2, 2 4 3 , 5 0 9 Fi x e d T r a n s p o r t a t i o n C h a r g e 52 0 , 7 9 4 1, 1 1 9 , 7 0 7 1, 2 2 1 , 7 8 3 1,2 6 9 , 2 8 1 1, 3 1 3 , 9 9 7 MW D C a p a c i t y R e s e r v a t i o n C h a r g e 28 7 , 6 4 0 24 9 , 5 7 6 21 7 , 3 2 0 26 2 , 8 3 6 31 3 , 3 6 7 34 9 , 4 0 4 37 7 , 6 1 2 39 6 , 4 9 3 MW D R e a d i n e s s t o S e r v i c e C h a r g e 40 9 , 3 2 6 38 7 , 6 4 8 38 3 , 5 7 7 40 1 , 7 6 8 44 2 , 3 5 3 48 5 , 2 3 2 51 6 , 6 6 1 54 2 , 4 9 4 To t a l F i x e d C h a r g e s ( F Y ) 6, 7 5 4 , 1 9 4 $ 6, 7 9 9 , 9 3 8 $ 7, 0 2 3 , 2 3 7 $ 8, 0 9 5 , 9 6 4 $ 9, 6 4 0 , 1 2 3 $ 10 , 5 6 6 , 1 6 1 $ 11 , 0 1 4 , 2 8 6 $ 11 , 4 2 3 , 1 8 9 $ Fi x e d p e r A F $5 4 9 $5 5 8 $5 6 7 $6 4 9 $7 7 0 $8 4 0 $8 6 6 $8 8 7 4% 2% 2% 14 % 19 % 9% 3% 2% Va r i a b l e C h a r g e s ( C Y ) ( 1 , 2 , 3 ) CY 2 0 2 2 C Y 2 0 2 3 C Y 2 0 2 4 C Y 2 0 2 5 C Y 2 0 2 6 C Y 2 0 2 7 C Y 2 0 2 8 C Y 2 0 2 9 Tr a n s p o r t a t i o n 17 3 $ 17 3 $ 18 9 $ 14 1 $ 16 2 $ 16 9 $ 17 5 $ 18 1 $ Su p p l y 1, 0 0 9 1, 0 8 5 1, 2 0 0 1, 3 5 5 1, 5 5 8 1, 6 2 1 1, 6 8 2 1,7 3 7 Tr e a t m e n t 31 0 35 0 40 0 50 0 57 5 59 8 62 1 64 1 Va r i a b l e P r i c e p e r A F 1, 4 9 2 $ 1, 6 0 8 $ 1, 7 8 9 $ 1, 9 9 6 $ 2, 2 9 5 $ 2, 3 8 7 $ 2, 4 7 7 $ 2,5 5 9 $ Va r i a b l e C o s t s ( C Y B a s i s ) Tr a n s p o r t a t i o n 2, 1 1 9 , 0 6 5 $ 2, 1 2 6 , 5 4 8 $ 2, 3 5 0 , 1 6 2 $ 1, 7 6 2 , 0 8 8 $ 2, 0 3 3 , 9 5 7 $ 2, 1 3 2 , 7 1 8 $ 2,2 3 9 , 6 3 4 $ 2, 3 3 7 , 2 3 5 $ Su p p l y 12 , 3 5 9 , 1 7 0 13 , 3 3 7 , 0 2 3 14 , 9 2 1 , 6 6 2 16 , 9 3 3 , 5 3 6 19 , 5 4 6 , 1 8 5 20 , 4 9 5 , 2 7 1 21 , 5 2 2 , 7 2 3 22 , 4 6 0 , 6 5 8 Tr e a t m e n t 3, 7 9 7 , 1 6 8 4, 3 0 2 , 2 6 6 4, 9 7 3 , 8 8 7 6, 2 4 8 , 5 3 7 7, 2 1 2 , 6 1 4 7, 5 6 2 , 8 3 1 7,9 4 1 , 9 6 4 8, 2 8 8 , 0 6 6 To t a l V a r i a b l e C o s t s ( C Y ) 18 , 2 7 5 , 4 0 3 $ 19 , 7 6 5 , 8 3 7 $ 22 , 2 4 5 , 7 1 1 $ 24 , 9 4 4 , 1 6 1 $ 28 , 7 9 2 , 7 5 6 $ 30 , 1 9 0 , 8 1 9 $ 31 , 7 0 4 , 3 2 1 $ 33 , 0 8 5 , 9 5 8 $ To t a l V a r i a b l e C o s t s ( F Y ) 17 , 8 2 2 , 7 5 7 $ 19 , 0 2 0 , 6 2 0 $ 21 , 0 0 5 , 7 7 4 $ 23 , 5 9 4 , 9 3 6 $ 26 , 8 6 8 , 4 5 9 $ 29 , 4 9 1 , 7 8 8 $ 30 , 9 4 7 , 5 7 0 $ 32 , 3 9 5 , 1 4 0 $ To t a l S D C W A & M W D C h a r g e s ( F Y ) 24 , 5 7 6 , 9 5 1 $ $2 5 , 8 2 0 , 5 5 8 $ 2 8 , 0 2 9 , 0 1 1 $ 3 1 , 6 9 0 , 9 0 0 $ 3 6 , 5 0 8 , 5 8 1 $ 4 0 , 0 5 7 , 9 4 9 $ 4 1 , 9 6 1 , 8 5 7 $ 4 3 , 8 1 8 , 3 2 8 Feb. 11, 2025 Item #8 Page 190 of 265 20 2 2 20 2 3 20 2 4 20 2 5 20 2 6 20 2 7 20 2 8 20 2 9 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Wa t e r P u r c h a s e s - P a s s T h r u s FY E 2 0 2 2 F Y E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 Va r i a b l e P a s s - T h r o u g h C a l c u l a t i o n - C Y B a s i s Co s t s I n c l u d e d i n V a r i a b l e P a s s - t h r o u g h Fo r R e f e r e n c e O n l y Fo r R e f e r e n c e O n l y Tr a n s p o r t a t i o n 2, 1 2 6 , 5 4 8 $ 2, 3 5 0 , 1 6 2 $ 1, 7 6 2 , 0 8 8 $ 2, 0 3 3 , 9 5 7 $ 2, 1 3 2 , 7 1 8 $ 2,2 3 9 , 6 3 4 $ 2, 3 3 7 , 2 3 5 $ Su p p l y 13 , 3 3 7 , 0 2 3 $ 14 , 9 2 1 , 6 6 2 $ 16 , 9 3 3 , 5 3 6 $ 19 , 5 4 6 , 1 8 5 $ 20 , 4 9 5 , 2 7 1 $ 21 , 5 2 2 , 7 2 3 $ 22 , 4 6 0 , 6 5 8 $ Tr e a t m e n t 4, 3 0 2 , 2 6 6 $ 4, 9 7 3 , 8 8 7 $ 6, 2 4 8 , 5 3 7 $ 7, 2 1 2 , 6 1 4 $ 7, 5 6 2 , 8 3 1 $ 7,9 4 1 , 9 6 4 $ 8, 2 8 8 , 0 6 6 $ Va r i a b l e P r i c e p e r A F 19 , 7 6 5 , 8 3 7 $ 22 , 2 4 5 , 7 1 1 $ 24 , 9 4 4 , 1 6 1 $ 28 , 7 9 2 , 7 5 6 $ 30 , 1 9 0 , 8 1 9 $ 31 , 7 0 4 , 3 2 1 $ 33 , 0 8 5 , 9 5 8 $ Ca l e n d a r Y e a r S a l e s ( A F ) 6, 1 5 4 , 4 6 0 6, 1 9 5 , 7 7 5 6, 2 2 1 , 6 4 3 6, 2 4 0 , 9 7 7 6, 2 8 3 , 7 8 9 6,3 4 6 , 1 5 2 6, 4 0 1 , 7 8 4 Ca l c u l a t e d C a l e n d a r Y e a r P a s s - T h r o u g h p e r C C F - C h a r g e s t o a l l P o t a b l e W a t e r S o l d 3. 2 1 $ 3. 5 9 $ 4. 0 0 9 $ 4. 6 1 4 $ 4. 8 0 5 $ 4. 9 9 6 $ 5. 1 6 8 $ Ca l c u l a t e d C a l e n d a r Y e a r P a s s - T h r o u g h p e r C C F - C h a r g e s t o a l l P o t a b l e W a t e r S o l d 3. 2 1 $ 3. 5 9 $ 4. 0 0 9 $ 4. 6 1 4 $ 4. 8 0 5 $ 4. 9 9 6 $ 5. 1 6 8 $ A p p l i e d a s C a l c u l a t e d A p p l i e d a s C a l c u l a t e d A p p l i e d a s C a l c u l a t e d A p p l i e d a s C a l c u l a t e d A p p l i e d a s C a l c u l a t e d A p p l i e d a s C a l c u l a t e d Ro u n d e d C a l e n d a r Y e a r P a s s - T h r o u g h p e r C C F 4. 0 1 $ 4. 6 2 $ 4. 8 1 $ 5. 0 0 $ 5. 1 7 $ Fis c a l V a r i a b l e Y e a r P a s s - T h r o u g h R e v e n u e s Fi s c a l Y e a r S a l e s 6, 1 7 6 , 8 1 4 6, 2 1 4 , 7 3 5 6, 2 2 8 , 5 5 2 6, 2 5 3 , 4 0 2 6,3 1 4 , 1 7 6 6, 3 7 8 , 1 2 9 Fis c a l Y e a r V a r i a b l e P a s s - T h r o u g h R e v e n u e s $2 1 , 0 0 5 , 7 7 4 $2 3 , 5 9 4 , 9 3 6 $ 2 6 , 8 6 8 , 4 5 9 $ 2 9 , 4 9 1 , 7 8 8 $ 3 0 , 9 4 7 , 5 7 0 $ 3 2 , 3 9 5 , 1 4 0 Feb. 11, 2025 Item #8 Page 191 of 265 20 2 2 20 2 3 20 2 4 20 2 5 20 2 6 20 2 7 20 2 8 20 2 9 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Wa t e r P u r c h a s e s - P a s s T h r u s FY E 2 0 2 2 F Y E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 Fi x e d P a s s - T h r o u g h C a l c u l a t i o n - C Y B a s i s Co s t s I n c l u d e d i n F i x e d P a s s - t h r o u g h Ca r l s b a d M E U B a s i s ( C Y B a s i s ) Fo r R e f e r e n c e O n l y Fo r R e f e r e n c e O n l y Cu s t o m e r S e r v i c e C h a r g e 82 6 , 8 3 6 $ 88 4 , 7 6 0 $ 1, 0 4 1 , 5 8 8 $ 1, 1 9 7 , 8 2 6 $ 1, 2 4 5 , 7 3 9 $ 1,2 9 2 , 8 2 3 $ 1, 3 3 5 , 1 7 2 $ Em e r g e n c y S t o r a g e C h a r g e 2, 0 4 5 , 9 5 2 2, 0 8 3 , 6 0 8 2, 3 7 5 , 3 7 6 2, 7 3 1 , 6 8 2 2, 8 4 0 , 9 5 0 2,9 4 8 , 3 2 5 3, 0 4 4 , 9 0 3 Su p p l y R e l i a b i l i t y C h a r g e 1, 4 8 2 , 9 0 0 1, 5 1 4 , 6 5 2 1, 7 7 8 , 4 0 0 2, 0 4 5 , 1 6 0 2, 1 2 6 , 9 6 6 2,2 0 7 , 3 5 6 2, 2 7 9 , 6 6 2 Fi x e d T r a n s p o r t a t i o n C h a r g e - - 1, 0 4 1 , 5 8 8 1, 1 9 7 , 8 2 6 1, 2 4 5 , 7 3 9 1,2 9 2 , 8 2 3 1, 3 3 5 , 1 7 2 MW D C a p a c i t y R e s e r v a t i o n C h a r g e 20 5 , 2 9 6 22 9 , 3 4 4 29 6 , 3 2 8 33 0 , 4 0 6 36 8 , 4 0 2 38 6 , 8 2 2 40 6 , 1 6 4 MW D R e a d i n e s s t o S e r v i c e C h a r g e ( A d j u s t e d t o C Y b a s i s ) 38 1 , 9 1 8 38 5 , 2 3 6 41 8 , 3 0 0 46 6 , 4 0 5 50 4 , 0 5 9 52 9 , 2 6 2 55 5 , 7 2 5 Le s s : S D C W A F i x e d i n F i r e S e r v i c e R a t e 1. 6 5 % (8 1 , 4 3 8 ) (8 3 , 9 8 7 ) (1 1 4 , 5 3 3 ) (1 3 1 , 3 0 1 ) (1 3 7 , 2 7 4 ) (1 4 2 , 6 3 8 ) (1 4 7 , 5 7 0 ) Ca r l s b a d M E U B a s i s C o s t s ( C Y B a s i s ) 4, 8 6 1 , 4 6 4 $ 5, 0 1 3 , 6 1 3 $ 6, 8 3 7 , 0 4 8 $ 7, 8 3 8 , 0 0 5 $ 8, 1 9 4 , 5 8 2 $ 8, 5 1 4 , 7 7 4 $ 8, 8 0 9 , 2 2 7 $ Po t a b l e M E U s ( 5 / 8 " B a s i s ) ( F Y ) 46 , 5 7 3 46 , 0 7 9 46 , 4 2 4 46 , 7 0 7 46 , 8 0 5 46 , 9 8 1 47 , 4 4 4 Po t a b l e M E U s ( 5 / 8 " B a s i s ) ( C Y ) 46 , 3 2 6 46 , 2 5 2 46 , 5 6 6 46 , 7 5 6 46 , 8 9 3 47 , 2 1 2 47 , 6 8 7 Ca l c u l a t e d M o n t h l y U n i t C o s t p e r M E U ( 5 / 8 " B a s i s ) ( C Y ) 8. 7 4 $ 9. 0 3 $ 12 . 2 4 $ 13 . 9 7 $ 14 . 5 6 $ 15 . 0 3 $ 15 . 3 9 $ Im p l e m e n t e d C a l e n d a r Y e a r P a s s - T h r o u g h p e r M E U ( 5 / 8 " B a s i s ) ( C Y ) 8. 7 4 $ 9. 0 3 $ 12 . 2 4 $ 13 . 9 7 $ 14 . 5 6 $ 15 . 0 3 $ 15 . 3 9 $ A p p l i e d a s C a l c u l a t e d A p p l i e d a s C a l c u l a t e d A p p l i e d a s C a l c u l a t e d A p p l i e d a s C a l c u l a t e d A p p l i e d a s C a l c u l a t e d A p p l i e d a s C a l c u l a t e d SD C W A M E U B a s i s ( C Y B a s i s ) Fo r R e f e r e n c e O n l y Fo r R e f e r e n c e O n l y In f r a s t r u c t u r e A c c e s s C h a r g e 1, 8 6 1 , 7 0 4 $ 2, 1 4 4 , 2 6 8 $ 1, 9 9 8 , 4 8 0 $ 2, 3 6 0 , 8 7 9 $ 2, 4 7 0 , 2 8 0 $ 2, 5 6 9 , 0 2 4 $ 2, 6 6 3 , 1 4 4 $ Ca r l s b a d M E U s f o r I A C ( 3 / 4 " B a s i s ) ( F Y ) 37 , 6 9 3 37 , 3 2 0 37 , 6 0 0 37 , 8 2 9 37 , 9 0 8 38 , 0 5 1 38 , 4 2 6 Ca r l s b a d M E U s f o r I A C ( 3 / 4 " B a s i s ) ( C Y ) 37 , 5 0 7 37 , 4 6 0 37 , 7 1 4 37 , 8 6 8 37 , 9 7 9 38 , 2 3 8 38 , 6 2 2 IA C M o n t h l y U n i t C o s t p e r M E U ( S D C W A I A C , 3 / 4 " B a s i s ) 4. 1 2 $ 4. 7 9 $ 4. 4 2 $ 5. 2 0 $ 5. 4 2 $ 5. 6 0 $ 5. 7 5 $ Im p l e m e n t e d C a l e n d a r Y e a r I A C P a s s - T h r o u g h p e r M E U ( S D C W A I A C , 3 / 4 " B a s i s ) 4. 1 2 $ 4. 7 9 $ 4. 4 2 $ 5. 2 0 $ 5. 4 2 $ 5. 6 0 $ 5. 7 5 $ A p p l i e d a s C a l c u l a t e d A p p l i e d a s C a l c u l a t e d A p p l i e d a s C a l c u l a t e d A p p l i e d a s C a l c u l a t e d A p p l i e d a s C a l c u l a t e d Feb. 11, 2025 Item #8 Page 192 of 265 20 2 2 20 2 3 20 2 4 20 2 5 20 2 6 20 2 7 20 2 8 20 2 9 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Wa t e r P u r c h a s e s - P a s s T h r u s FY E 2 0 2 2 F Y E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 SD C W A F i x e d P a s s - t h r o u g h p e r M e t e r S i z e Me t e r S i z e M E U R a t i o ( 5 / 8 " Ba s i s ) M E U R a t i o (S D C W A I A C , 3/ 4 " B a s i s ) F o r R e f e r e n c e On l y Un r o u n d e d U n r o u n d e d U n r o u n d e d U n r o u n d e d U n r o u n d e d 5/ 8 " 1. 0 0 1. 0 0 13 . 8 2 1 $ 16 . 6 5 $ 19 . 1 7 $ 19 . 9 8 $ 20 . 6 3 $ 21 . 1 4 $ 3/ 4 " 1. 5 0 1. 0 0 18 . 3 3 8 $ 22 . 7 7 $ 26 . 1 5 $ 27 . 2 6 $ 28 . 1 4 $ 28 . 8 4 $ 1" 2. 5 0 1. 6 0 30 . 2 4 4 $ 37 . 6 5 $ 43 . 2 4 $ 45 . 0 8 $ 46 . 5 3 $ 47 . 6 8 $ 1. 5 " 5. 0 0 3. 0 0 59 . 5 3 0 $ 74 . 4 3 $ 85 . 4 3 $ 89 . 0 7 $ 91 . 9 4 $ 94 . 2 1 $ 2" 8. 0 0 5. 2 0 97 . 1 6 3 $ 12 0 . 8 5 $ 13 8 . 7 7 $ 14 4 . 6 9 $ 14 9 . 3 5 $ 15 3 . 0 3 $ 2. 5 " 11 . 5 0 7. 4 0 13 9 . 3 1 3 $ 17 3 . 3 9 $ 19 9 . 1 0 $ 20 7 . 5 8 $ 21 4 . 2 7 $ 21 9 . 5 5 $ 3" 15 . 0 0 9. 6 0 18 1 . 4 6 3 $ 22 5 . 9 2 $ 25 9 . 4 2 $ 27 0 . 4 7 $ 27 9 . 1 9 $ 28 6 . 0 8 $ 4" 25 . 0 0 16 . 4 0 30 4 . 3 5 4 $ 37 8 . 3 1 $ 43 4 . 4 5 $ 45 2 . 9 6 $ 46 7 . 5 5 $ 47 9 . 0 9 $ 6" 50 . 0 0 30 . 0 0 59 5 . 3 0 1 $ 74 4 . 2 5 $ 85 4 . 3 4 $ 89 0 . 7 3 $ 91 9 . 4 2 $ 94 2 . 0 9 $ 8" 80 . 0 0 52 . 0 0 97 1 . 6 3 3 $ 1, 2 0 8 . 4 6 $ 1, 3 8 7 . 7 3 $ 1, 4 4 6 . 8 6 $ 1, 4 9 3 . 4 7 $ 1, 5 3 0 . 3 4 $ 10 " 11 5 . 0 0 78 . 0 0 1, 4 1 2 . 2 8 4 $ 1, 7 5 1 . 5 2 $ 2, 0 1 1 . 7 5 $ 2, 0 9 7 . 4 7 $ 2, 1 6 5 . 0 6 $ 2, 2 1 8 . 5 3 $ Fix e d P a s s - t h r o u g h R e v e n u e Me t e r S i z e 5/ 8 " 21 , 8 1 4 21 , 9 6 3 22 , 0 5 2 22 , 1 1 7 22 , 2 6 8 22 , 4 9 1 3/ 4 " 1, 7 5 5 1, 7 6 7 1, 7 7 5 1, 7 8 0 1, 7 9 2 1,8 1 0 1" 2, 5 2 9 2, 5 4 6 2, 5 5 6 2, 5 6 4 2, 5 8 1 2,6 0 7 1. 5 " 80 5 81 1 81 4 81 6 82 2 83 0 2" 1, 2 5 5 1, 2 6 3 1, 2 6 9 1, 2 7 2 1, 2 8 1 1,2 9 4 2. 5 " 2 2 2 2 2 2 3" 22 22 22 22 22 23 4" 19 19 19 19 19 20 6" 7 7 7 7 7 7 8" 3 3 3 3 3 3 10 " 0 0 0 0 0 0 Ca l e n d a r Y e a r F i x e d P a s s - t h r o u g h R e v e n u e s 7, 1 6 5 , 9 0 8 $ 8, 8 3 5 , 5 2 8 $ 10 , 1 9 8 , 8 8 4 $ 10 , 6 6 4 , 8 6 3 $ 11 , 0 8 3 , 7 9 8 $ 11 , 4 7 2 , 3 7 1 $ Co s t 7, 1 5 7 , 8 8 1 $ 8, 8 3 5 , 5 2 8 $ 10 , 1 9 8 , 8 8 4 $ 10 , 6 6 4 , 8 6 3 $ 11 , 0 8 3 , 7 9 8 $ 11 , 4 7 2 , 3 7 1 $ Fis c a l Y e a r F i x e d P a s s - t h r o u g h R e v e n u e s 3, 5 8 2 , 9 5 4 $ 8, 0 0 0 , 7 1 8 $ 9, 5 1 7 , 2 0 6 $ 10 , 4 3 1 , 8 7 3 $ 10 , 8 7 4 , 3 3 0 $ 11 , 2 7 8 , 0 8 5 $ Feb. 11, 2025 Item #8 Page 193 of 265 20 2 2 20 2 3 20 2 4 20 2 5 20 2 6 20 2 7 20 2 8 20 2 9 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Wa t e r P u r c h a s e s - P a s s T h r u s FY E 2 0 2 2 F Y E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 SD C W A F i x e d P a s s - t h r o u g h p e r M e t e r S i z e - R o u n d e d Me t e r S i z e 5/ 8 " 16 . 6 6 $ 19 . 1 7 $ 19 . 9 9 $ 20 . 6 3 $ 21 . 1 5 $ 3/ 4 " 22 . 7 7 $ 26 . 1 5 $ 27 . 2 7 $ 28 . 1 5 $ 28 . 8 4 $ 1" 37 . 6 6 $ 43 . 2 4 $ 45 . 0 8 $ 46 . 5 4 $ 47 . 6 8 $ 1. 5 " 74 . 4 3 $ 85 . 4 4 $ 89 . 0 8 $ 91 . 9 5 $ 94 . 2 1 $ 2" 12 0 . 8 5 $ 13 8 . 7 8 $ 14 4 . 6 9 $ 14 9 . 3 5 $ 15 3 . 0 4 $ 2. 5 " 17 3 . 3 9 $ 19 9 . 1 0 $ 20 7 . 5 8 $ 21 4 . 2 7 $ 21 9 . 5 6 $ 3" 22 5 . 9 3 $ 25 9 . 4 3 $ 27 0 . 4 8 $ 27 9 . 1 9 $ 28 6 . 0 8 $ 4" 37 8 . 3 1 $ 43 4 . 4 5 $ 45 2 . 9 6 $ 46 7 . 5 5 $ 47 9 . 1 0 $ 6" 74 4 . 2 6 $ 85 4 . 3 5 $ 89 0 . 7 4 $ 91 9 . 4 3 $ 94 2 . 1 0 $ 8" 1, 2 0 8 . 4 7 $ 1, 3 8 7 . 7 4 $ 1, 4 4 6 . 8 6 $ 1, 4 9 3 . 4 8 $ 1, 5 3 0 . 3 4 $ 10 " 1, 7 5 1 . 5 2 $ 2, 0 1 1 . 7 5 $ 2, 0 9 7 . 4 8 $ 2, 1 6 5 . 0 7 $ 2, 2 1 8 . 5 4 $ Feb. 11, 2025 Item #8 Page 194 of 265 20 2 2 20 2 3 20 2 4 20 2 5 20 2 6 20 2 7 20 2 8 20 2 9 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Wa t e r P u r c h a s e s - P a s s T h r u s FY E 2 0 2 2 F Y E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 FY E 2 0 2 2 F Y E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 DE S A L P U R C H A S E S Ra t e s p r o v i d e d o n F Y b a s i s . Co n t r a c t D e s a l W a t e r , M i n . 2 5 0 0 A F ( 1 , 5 ) 2, 5 0 0 2, 5 0 0 2, 5 0 0 2, 5 0 0 2, 5 0 0 2, 5 0 0 2, 5 0 0 2,5 0 0 Ad d i t i o n a l d e s a l w a t e r , A F ( 1 ) - - - - - - - - To t a l D e s a l ( A F ) 2,5 0 0 2, 5 0 0 2, 5 0 0 2, 5 0 0 2, 5 0 0 2, 5 0 0 2, 5 0 0 2, 5 0 0 In c c f 1, 0 8 9 , 0 0 0 1, 0 8 9 , 0 0 0 1, 0 8 9 , 0 0 0 1, 0 8 9 , 0 0 0 1, 0 8 9 , 0 0 0 1, 0 8 9 , 0 0 0 1,0 8 9 , 0 0 0 1, 0 8 9 , 0 0 0 So u r c e : D e s a l u n i t c o s t s f r o m 2 0 2 3 - 0 4 - 1 0 _ D e s a l U n i t P r i c e P r o j e c t i o n . p d f FY E 2 0 2 2 F Y E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 Fix e d C h a r g e s ( $ / A F ) , C a l e n d a r Y e a r ( 4 , 5 ) Ca p i t a l , D e b t S e r v i c e C h a r g e 64 1 $ 65 2 $ 65 7 $ 76 3 $ 1, 0 1 6 $ 1, 0 4 2 $ 1, 0 6 8 $ 1,0 9 4 $ Ca p i t a l , E q u i t y R e t u r n C h a r g e 44 8 48 5 58 6 60 0 62 7 63 9 65 1 66 4 Fi x e d O & M 56 7 61 5 64 9 73 8 78 7 80 7 82 7 84 8 Fi x e d E l e c t r i c t i y 18 7 19 3 25 4 26 0 26 7 27 4 28 0 28 7 An n u a l M a n a g e m e n t F e e 14 15 15 15 16 16 Va r i a b l e C h a r g e s ( $ / A F ) ( 4 , 5 ) Va r i a b l e O & M 13 0 $ 14 1 $ 14 9 $ 14 9 $ 15 4 $ 15 8 $ 16 1 $ 16 6 $ Va r i a b l e E l e c t r i c i t y 80 3 82 6 1, 1 8 5 1, 2 2 1 1, 2 5 7 1, 2 9 5 1, 3 3 4 1,3 7 4 Ot h e r C o s t s ( $ / A F ) ( 4 , 5 ) Co n v e y a n c e ( P i p e l i n e D e b t P a y m e n t ) $2 2 1 . 4 6 $2 2 7 . 0 0 23 3 . 2 5 $ $2 3 9 . 0 8 $2 4 5 . 0 6 $2 5 1 . 1 8 $2 5 7 . 4 6 $2 6 3 . 9 0 In d i r e c t C o s t s ( 2 ) 33 . 0 4 33 . 5 3 20 . 6 7 $ 20 . 9 8 21 . 2 9 21 . 6 1 21 . 9 4 22 . 2 7 Ad m i n i s t r a t i o n C h a r g e 10 . 8 0 11 . 4 5 12 . 1 5 $ 12 . 8 8 13 . 6 5 14 . 4 7 15 . 3 4 16 . 2 6 Wh e e l i n g ( T r a n s p o r t a t i o n C h a r g e I n c l u d i n g c r e d i t s ) ( 2 ) 0. 0 0 0. 0 0 (2 3 . 2 6 ) $ (2 4 . 4 2 ) (2 5 . 6 4 ) (2 6 . 9 3 ) (2 8 . 2 7 ) (2 9 . 6 9 ) Feb. 11, 2025 Item #8 Page 195 of 265 20 2 2 20 2 3 20 2 4 20 2 5 20 2 6 20 2 7 20 2 8 20 2 9 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Wa t e r P u r c h a s e s - P a s s T h r u s FY E 2 0 2 2 F Y E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 Fix e d C o s t s ( $ ) Ca p i t a l 1, 6 0 3 , 5 0 0 $ 1, 6 3 0 , 3 0 0 $ 1, 6 4 3 , 4 2 5 $ 1, 9 0 7 , 3 9 7 $ 2, 5 4 0 , 6 0 0 $ 2, 6 0 3 , 8 2 5 $ 2,6 6 8 , 8 2 5 $ 2, 7 3 5 , 1 7 5 $ Fi n a n c i n g 1, 1 1 9 , 8 2 5 1, 2 1 3 , 6 2 5 1, 4 6 4 , 1 2 5 1, 4 9 9 , 5 0 0 1, 5 6 7 , 5 5 0 1, 5 9 6 , 9 0 0 1,6 2 7 , 4 2 5 1, 6 5 9 , 7 7 5 Fi x e d O & M 1, 4 1 8 , 7 0 0 1, 5 3 7 , 4 0 0 1, 6 2 2 , 7 5 0 1, 8 4 3 , 7 6 9 1, 9 6 8 , 5 7 5 2, 0 1 7 , 8 0 0 2,0 6 8 , 2 5 0 2, 1 1 9 , 9 5 0 Fi x e d E l e c t r i c t i y 46 8 , 2 7 5 48 2 , 3 2 5 63 5 , 0 5 0 65 0 , 9 2 6 66 7 , 1 9 9 68 3 , 8 7 9 70 0 , 9 7 6 71 8 , 5 0 1 An n u a l M a n a g e m e n t F e e - - 35 , 3 7 5 36 , 2 5 9 37 , 1 6 6 38 , 0 9 5 39 , 0 4 7 40 , 0 2 4 Va r i a b l e C o s t s ( $ ) Va r i a b l e O & M 32 4 , 6 2 5 $ 35 1 , 7 7 5 $ 37 1 , 3 0 0 $ 37 3 , 1 0 0 $ 38 4 , 2 5 0 $ 39 3 , 8 5 0 $ 40 3 , 7 0 0 $ 41 3 , 8 0 0 $ Va r i a b l e E l e c t r i c i t y 2, 0 0 6 , 6 5 0 2, 0 6 5 , 0 0 0 2, 9 6 3 , 2 7 5 3, 0 5 2 , 1 7 3 3, 1 4 3 , 7 3 8 3, 2 3 8 , 0 5 1 3,3 3 5 , 1 9 2 3, 4 3 5 , 2 4 8 Ot h e r C o s t s ( $ ) Co n v e y a n c e 55 3 , 6 5 4 $ 56 7 , 4 9 5 $ 58 3 , 1 2 5 $ 59 7 , 7 0 3 $ 61 2 , 6 4 6 $ 62 7 , 9 6 2 $ 64 3 , 6 6 1 $ 65 9 , 7 5 2 $ In d i r e c t C o s t s 82 , 5 9 6 83 , 8 3 5 51 , 6 7 5 52 , 4 5 0 53 , 2 3 7 54 , 0 3 5 54 , 8 4 6 55 , 6 6 9 T. O . I n e f f i c i e n c y 27 , 0 0 4 28 , 6 2 4 30 , 3 7 5 32 , 1 9 8 34 , 1 2 9 36 , 1 7 7 38 , 3 4 8 40 , 6 4 9 Wh e e l i n g ( T r a n s p o r t a t i o n C h a r g e I n c l u d i n g c r e d i t s ) - - (5 8 , 1 5 0 ) (6 1 , 0 5 8 ) (6 4 , 1 1 0 ) (6 7 , 3 1 6 ) (7 0 , 6 8 2 ) (7 4 , 2 1 6 ) To t a l D e s a l C o s t s , C Y ( 3 ) 7, 6 0 4 , 8 2 8 $ 7, 9 6 0 , 3 7 8 $ 9, 3 4 2 , 3 2 5 $ 9, 9 8 4 , 4 1 9 $ 10 , 9 4 4 , 9 8 0 $ 11 , 2 2 3 , 2 5 8 $ 11 , 5 0 9 , 5 8 9 $ 11 , 8 0 4 , 3 2 6 $ De s a l C o s t s ( F Y B a s i s ) 7, 6 0 4 , 8 2 8 $ 7, 9 6 0 , 3 7 8 $ 9, 3 4 2 , 3 2 5 $ 9, 9 8 4 , 4 1 9 $ 10 , 9 4 4 , 9 8 0 $ 11 , 2 2 3 , 2 5 8 $ 11 , 5 0 9 , 5 8 9 $ 11 , 8 0 4 , 3 2 6 $ Feb. 11, 2025 Item #8 Page 196 of 265 20 2 2 20 2 3 20 2 4 20 2 5 20 2 6 20 2 7 20 2 8 20 2 9 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Wa t e r P u r c h a s e s - P a s s T h r u s FY E 2 0 2 2 F Y E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 FY E 2 0 2 2 F Y E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 Re c y c l e d W a t e r P u r c h a s e s As s u m p t i o n s Va l l e c i t o s A n n u a l E s c a l a t i o n 3. 0 % 3. 0 % 3. 0 % 3. 0 % 3. 0 % 5. 0 % 5. 0 % 5. 0 % Re c l a i m e d W a t e r I n c r e a s e s Ex p e c t e d A F t o b e S o l d ( H i s t o r i c a l S a l e s & C u s t o m e r D a t a ) #N / A 4, 1 8 9 4, 2 2 6 4, 2 5 4 4, 2 6 3 4, 2 7 3 4, 3 1 0 4,3 5 1 Sy s t e m L o s s e s 5. 0 % 5. 0 % 5. 0 % 5. 0 % 5. 0 % 5. 0 % 5. 0 % 5. 0 % Re c y c l e d W a t e r t o b e P u r c h a s e d #N / A 4, 3 9 8 4, 4 3 7 4, 4 6 6 4, 4 7 6 4, 4 8 7 4, 5 2 5 4, 5 6 8 So u r c e o f S u p p l y ( i n A F ) Va l l e c i t o s W a t e r D i s t r i c t ( V W D ) 2, 3 8 6 2, 3 8 6 2, 3 8 6 2, 3 8 6 2, 7 0 0 2, 7 0 0 2, 7 0 0 2,7 0 0 Ca r l s b a d W a t e r R e c y c l i n g F a c i l i t y ( C W R F ) #N / A 2, 0 1 2 2, 0 5 1 2, 0 8 0 1, 7 7 6 1, 7 8 7 1, 8 2 5 1,8 6 8 To t a l R e c y c l e d W a t e r ( A F ) #N / A 4, 3 9 8 4, 4 3 7 4, 4 6 6 4, 4 7 6 4, 4 8 7 4, 5 2 5 4, 5 6 8 Un i t C o s t s Va l l e c i t o s W a t e r D i s t r i c t ( V W D ) $9 5 1 $1 , 1 5 7 $1 , 1 9 4 $1 , 2 3 0 1, 4 5 4 $ $1 , 5 2 7 $1 , 6 0 3 $1 , 6 8 4 Pu r c h a s e A m o u n t Va l l e c i t o s W a t e r D i s t r i c t ( V W D ) 2, 2 6 8 , 6 4 6 $ 2, 7 6 1 , 9 2 4 $ 2, 8 5 0 , 0 0 0 $ 2, 9 3 5 , 5 0 0 $ 3, 9 2 5 , 8 0 0 $ 4, 1 2 2 , 9 0 0 $ 4,3 2 9 , 0 4 5 $ 4, 5 4 5 , 4 9 7 $ Ou t s i d e R W P u r c h a s e s 2, 2 6 8 , 6 4 6 $ 2, 7 6 1 , 9 2 4 $ 2, 8 5 0 , 0 0 0 $ 2, 9 3 5 , 5 0 0 $ 3, 9 2 5 , 8 0 0 $ 4, 1 2 2 , 9 0 0 $ 4, 3 2 9 , 0 4 5 $ 4, 5 4 5 , 4 9 7 $ Feb. 11, 2025 Item #8 Page 197 of 265 2025 POTABLE AND RECYCLED WATER RATE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT POTABLE AND RECYCLED WATER COST-OF-SERVICE STUDY APPENDIX C CAPITAL IMPROVEMENT PLAN Feb. 11, 2025 Item #8 Page 198 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Ca p i t a l I m p r o v e m e n t P l a n AN N U A L C I P E S C A L A T I O N : 2. 0 0 % 2. 0 0 % 0. 0 0 % 0.0 0 % 0.0 0 % Cu m u l a t i v e C I P E s c a l a t i o n 0.0 0 % 2. 0 0 % 4. 0 4 % 4.0 4 % 4. 0 4 % 4. 0 4 % BU R N R A T E F O R N E W A P P R O P R I A T I O N S 10 0 . 0 0 % 10 0 . 0 0 % 10 0 . 0 0 % 10 0 . 0 0 % 10 0 . 0 0 % 10 0 . 0 0 % WA T E R C O N N E C T I O N P R O J E C T S FY E 2 0 2 4 F Y E 2 0 2 5 FY E 2 0 2 6 FY E 2 0 2 7 FY E 2 0 2 8 F Y E 2 0 2 9 In c l u d e P r o j e c t N u m b e r Pr o j e c t T i t l e  39 0 4 2 Wa t e r S y s t e m R e h a b i l i t a t i o n a n d R e p l a c e m e n t  39 0 4 2 Wa t e r S y s t e m R e h a b i l i t a t i o n a n d R e p l a c e m e n t  50 0 1 2 Ma e r k l e R e s e r v o i r T r a n s m i s s i o n M a i n - 26 2 , 0 0 0 1, 8 4 9 , 0 0 0  50 1 2 1 Co l l e g e B o u l e v a r d - C a n n o n R o a d T o B a d g e r L a n e ( 4 9 0 Z o n e ) - 1, 4 0 0 , 0 0 0 - - -  50 1 3 1 Co l l e g e B o u l e v a r d - C a n n o n R o a d T o B a d g e r L a n e ( 3 7 5 Z o n e ) - 1, 4 0 0 , 0 0 0 - - -  50 2 0 2 Pr e s s u r e R e d u c i n g S t a t i o n P r o g r a m 60 0 , 0 0 0 60 0 , 0 0 0 60 0 , 0 0 0  50 3 3 2 Cr e s t v i e w D r i v e T r a n s m i s s i o n M a i n 17 1 , 0 0 0 55 1 , 0 0 0 Fu t u r e - >  50 3 5 2 Lim i t e d A c c e s s P i p e l i n e R e l o c a t i o n P r o g r a m 1, 1 2 2 , 0 0 0 Fu t u r e - > 50 3 8 1 De s a l i n a t e d W a t e r F l o w C o n t r o l F a c i l i t y N o . 5 75 8 , 0 0 0 (1 0 , 0 0 0 , 0 0 0 ) - - - -  50 4 4 1 Sa n L u i s R e y M i s s i o n B a s i n G r o u n d w a t e r S u p p l y 20 , 0 0 0 (2 0 , 0 0 0 ) - - -  50 4 5 1 Po i n s e t t i a L a n e - C a s s i a R o a d t o S k i m m e r C o u r t ( R e i m b u r s e m e n t A g r e e m e n t ) - - - - - -  50 5 5 2 Pa l o m a r A i r p o r t W a t e r l i n e R e a l i g n m e n t -  50 5 8 1 Wa t e r M o d e l i n g - - - - - -  50 5 9 1 Hy d r o e l e c t r i c G e n e r a t i o n a t W a t e r F a c i l i t i e s 33 , 0 0 0 39 , 0 0 0 - -  50 6 1 1 Ra n c h o C a r l s b a d G r o u n d w a t e r S u p p l y - (2 0 0 , 0 0 0 ) - -  55 4 2 4 SC A D A I m p r o v e m e n t s 79 , 4 3 0  Sp e n d D o w n o f A v a i l a b l e B a l a n c e 1, 6 5 4 , 1 0 2 WA T E R C O N N E C T I O N P R O J E C T S T O T A L : 1 , 7 0 7 , 1 0 2 $ 1, 7 9 1 , 4 3 0 $ 4, 2 1 3 , 0 0 0 $ 60 0 , 0 0 0 $ 1, 8 4 9 , 0 0 0 $ - $ SU M M A R Y O F W A T E R C O N N E C T I O N P R O J E C T S FY E 2 0 2 4 F Y E 2 0 2 5 FY E 2 0 2 6 FY E 2 0 2 7 FY E 2 0 2 8 F Y E 2 0 2 9 UN E S C A L A T E D R& R - $ - $ - $ - $ - $ - $ Ex p a n s i o n 1, 7 0 7 , 1 0 2 1, 7 9 1 , 4 3 0 4, 2 1 3 , 0 0 0 60 0 , 0 0 0 1, 8 4 9 , 0 0 0 - To t a l 1, 7 0 7 , 1 0 2 $ 1, 7 9 1 , 4 3 0 $ 4, 2 1 3 , 0 0 0 $ 60 0 , 0 0 0 $ 1, 8 4 9 , 0 0 0 $ - $ ES C A L A T E D R& R - $ - $ - $ - $ - $ - $ Ex p a n s i o n 1, 7 0 7 , 1 0 2 1, 8 2 7 , 2 5 9 4, 3 8 3 , 2 0 5 62 4 , 2 4 0 1, 9 2 3 , 7 0 0 - To t a l 1, 7 0 7 , 1 0 2 $ 1, 8 2 7 , 2 5 9 $ 4, 3 8 3 , 2 0 5 $ 62 4 , 2 4 0 $ 1, 9 2 3 , 7 0 0 $ - $ Feb. 11, 2025 Item #8 Page 199 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Ca p i t a l I m p r o v e m e n t P l a n AN N U A L C I P E S C A L A T I O N : 2. 0 0 % 2. 0 0 % 0. 0 0 % 0.0 0 % 0.0 0 % Cu m u l a t i v e C I P E s c a l a t i o n 0.0 0 % 2. 0 0 % 4. 0 4 % 4.0 4 % 4. 0 4 % 4. 0 4 % BU R N R A T E F O R N E W A P P R O P R I A T I O N S 10 0 . 0 0 % 10 0 . 0 0 % 10 0 . 0 0 % 10 0 . 0 0 % 10 0 . 0 0 % 10 0 . 0 0 % WA T E R R E P L A C E M E N T P R O J E C T S FY E 2 0 2 4 F Y E 2 0 2 5 FY E 2 0 2 6 FY E 2 0 2 7 FY E 2 0 2 8 F Y E 2 0 2 9 In c l u d e P r o j e c t N u m b e r Pr o j e c t T i t l e  35 7 2 2 O r i o n C e n t e r - $ - $ - $ - $ - $  39 0 4 1 W a t e r S y s t e m R e h a b i l i t a t i o n a n d R e p l a c e m e n t 2, 8 0 0 , 0 0 0 $ 3, 0 0 0 , 0 0 0 $ 3, 0 0 0 , 0 0 0 $ 3, 0 0 0 , 0 0 0 $ 3, 0 0 0 , 0 0 0 $ 3, 0 0 0 , 0 0 0 $  47 2 2 2 M a e r k l e R e s e r v o i r S o l a r P r o j e c t - 23 1 , 4 1 3 - - - -  50 0 1 1 M a e r k l e R e s e r v o i r T r a n s m i s s i o n M a i n (5 7 8 , 0 0 0 ) 27 8 , 0 0 0 2, 3 9 6 , 0 0 0  50 0 7 1 C a t h o d i c P r o t e c t i o n P r o g r a m 19 0 , 0 0 0 19 0 , 0 0 0 19 0 , 0 0 0 19 0 , 0 0 0 19 0 , 0 0 0 -  50 0 8 1 T r i - A g e n c y W a t e r T r a n s m i s s i o n P i p e l i n e R e p l a c e m e n t (1 , 2 9 0 , 0 0 0 ) 48 3 , 0 0 0 4, 0 1 7 , 0 4 0  50 0 9 1 M a e r k l e F a c i l i t y I m p r o v e m e n t s 80 0 , 0 0 0 20 0 , 0 0 0 - - - -  50 1 9 1 W a t e r V a l v e R e p a i r / R e p l a c e m e n t P r o g r a m 96 0 , 0 0 0 96 0 , 0 0 0 96 0 , 0 0 0 1, 0 0 0 , 0 0 0 1, 0 0 0 , 0 0 0 1,0 0 0 , 0 0 0  50 2 0 1 P r e s s u r e R e d u c i n g S t a t i o n P r o g r a m 60 0 , 0 0 0 - - - 60 0 , 0 0 0 60 0 , 0 0 0  50 2 4 1 R e s e r v o i r C o n d i t i o n A s s e s s m e n t a n d R e p a i r P r o g r a m 2, 0 4 0 , 0 0 0 - - - - -  50 3 3 1 C r e s t v i e w D r i v e T r a n s m i s s i o n M a i n 28 4 , 0 0 0 (6 0 5 , 0 0 0 ) - - - -  50 3 5 1 L i m i t e d A c c e s s P i p e l i n e R e l o c a t i o n P r o g r a m 76 1 , 0 0 0 1, 4 2 8 , 0 0 0 60 0 , 0 0 0 - -  50 4 3 1 F i r e F l o w C a p a c i t y S y s t e m I m p r o v e m e n t s 41 5 , 0 0 0 - - -  50 4 4 2 S a n L u i s R e y M i s s i o n B a s i n G r o u n d w a t e r S u p p l y - - - - - -  50 4 6 1 S a n t a F e I I R e s e r v o i r S i t e E l e c t r i c a l I m p r o v e m e n t s 11 0 , 0 0 0 40 , 0 0 0 - - - -  50 4 8 1 C a r l s b a d B o u l e v a r d W a t e r l i n e R e p l a c e m e n t a t T e r r a m a r - - - - - -  50 5 0 1 N o r m a l l y C l o s e d V a l v e ( I n s t a l l M o t o r i z e d V a l v e ) 30 0 , 0 0 0 - - - - -  50 5 1 1 W a t e r I n f r a s t r u c t u r e C o n d i t i o n A s s e s s m e n t P r o g r a m 41 0 , 0 0 0 42 0 , 0 0 0 42 0 , 0 0 0 45 0 , 0 0 0 45 0 , 0 0 0 45 0 , 0 0 0  50 5 2 1 W a t e r L o s s M o n i t o r i n g P r o g r a m (1 8 2 , 9 1 1 ) - - - - -  50 5 5 1 P a l o m a r A i r p o r t W a t e r l i n e R e a l i g n m e n t - - - - - -  50 5 7 1 S a n t a F e I I I n l e t P i p e l i n e - 35 0 , 0 0 0  50 6 1 2 R a n c h o C a r l s b a d G r o u n d w a t e r S u p p l y - (2 0 0 , 0 0 0 ) - -  52 0 3 1 C a r l s b a d W a t e r R e c y c l i n g F a c i l i t y ( E n c i n a C a p i t a l P r o j e c t s ) - - - - - -  52 0 5 1 A b a n d o n P o t a b l e S e r v i c e s ( N e w R e c y c l e d S e r v i c e s ) 25 0 , 0 0 0 - - - - -  52 1 0 1 R e c y c l e d W a t e r P h a s e 3 - R e s e r v o i r (8 0 0 , 0 0 0 ) - - - - -  55 4 2 2 S C A D A I m p r o v e m e n t s 2, 4 1 3 , 0 0 0 53 1 , 5 7 0 - - - -  60 1 9 2 V a l l e y a n d M a g n o l i a C o m p l e t e S t r e e t s - 65 0 , 0 0 0 - - - -  60 5 1 3 E l C a m i n o R e a l W i d e n i n g - A r e n a l R o a d t o L a C o s t a A v e n u e 1, 0 0 0 , 0 0 0 - - - - -  Sp e n d D o w n o f A v a i l a b l e B a l a n c e 36 , 9 1 3 , 3 2 7 WA T E R R E P L A C E M E N T P R O J E C T S T O T A L : 4 7 , 3 9 5 , 4 1 6 $ 6, 8 4 5 , 9 8 3 $ 5, 9 3 1 , 0 0 0 $ 4, 6 4 0 , 0 0 0 $ 11 , 6 5 3 , 0 4 0 $ 5,4 0 0 , 0 0 0 $ 10 , 4 8 2 , 0 8 9 $ 6, 8 4 5 , 9 8 3 $ 5, 9 3 1 , 0 0 0 $ 4, 6 4 0 , 0 0 0 $ 11 , 6 5 3 , 0 4 0 $ 5,4 0 0 , 0 0 0 $ SU M M A R Y O F W A T E R R E P L A C E M E N T P R O J E C T S FY E 2 0 2 4 F Y E 2 0 2 5 FY E 2 0 2 6 FY E 2 0 2 7 FY E 2 0 2 8 F Y E 2 0 2 9 R& R 47 , 3 9 5 , 4 1 6 $ 6, 8 4 5 , 9 8 3 $ 5, 9 3 1 , 0 0 0 $ 4, 6 4 0 , 0 0 0 $ 11 , 6 5 3 , 0 4 0 $ 5,4 0 0 , 0 0 0 $ Ex p a n s i o n - - - - - - To t a l 47 , 3 9 5 , 4 1 6 $ 6, 8 4 5 , 9 8 3 $ 5, 9 3 1 , 0 0 0 $ 4, 6 4 0 , 0 0 0 $ 11 , 6 5 3 , 0 4 0 $ 5,4 0 0 , 0 0 0 $ R& R 47 , 3 9 5 , 4 1 6 $ 6, 9 8 2 , 9 0 3 $ 6, 1 7 0 , 6 1 2 $ 4, 8 2 7 , 4 5 6 $ 12 , 1 2 3 , 8 2 3 $ 5,6 1 8 , 1 6 0 $ Ex p a n s i o n - - - - - - To t a l 47 , 3 9 5 , 4 1 6 $ 6, 9 8 2 , 9 0 3 $ 6, 1 7 0 , 6 1 2 $ 4, 8 2 7 , 4 5 6 $ 12 , 1 2 3 , 8 2 3 $ 5,6 1 8 , 1 6 0 $ Feb. 11, 2025 Item #8 Page 200 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Ca p i t a l I m p r o v e m e n t P l a n AN N U A L C I P E S C A L A T I O N : 2. 0 0 % 2. 0 0 % 0. 0 0 % 0.0 0 % 0.0 0 % Cu m u l a t i v e C I P E s c a l a t i o n 0.0 0 % 2. 0 0 % 4. 0 4 % 4.0 4 % 4. 0 4 % 4. 0 4 % BU R N R A T E F O R N E W A P P R O P R I A T I O N S 10 0 . 0 0 % 10 0 . 0 0 % 10 0 . 0 0 % 10 0 . 0 0 % 10 0 . 0 0 % 10 0 . 0 0 % SU M M A R Y O F W A T E R S Y S T E M C I P FY E 2 0 2 4 F Y E 2 0 2 5 FY E 2 0 2 6 FY E 2 0 2 7 FY E 2 0 2 8 F Y E 2 0 2 9 Un e s c a l a t e d R& R 47 , 3 9 5 , 4 1 6 $ 6, 8 4 5 , 9 8 3 $ 5, 9 3 1 , 0 0 0 $ 4, 6 4 0 , 0 0 0 $ 11 , 6 5 3 , 0 4 0 $ 5,4 0 0 , 0 0 0 $ Ex p a n s i o n 1, 7 0 7 , 1 0 2 1, 7 9 1 , 4 3 0 4, 2 1 3 , 0 0 0 60 0 , 0 0 0 1, 8 4 9 , 0 0 0 - To t a l 49 , 1 0 2 , 5 1 8 $ 8, 6 3 7 , 4 1 3 $ 10 , 1 4 4 , 0 0 0 $ 5, 2 4 0 , 0 0 0 $ 13 , 5 0 2 , 0 4 0 $ 5,4 0 0 , 0 0 0 $ Es c a l a t e d R& R 47 , 3 9 5 , 4 1 6 $ 6, 9 8 2 , 9 0 3 $ 6, 1 7 0 , 6 1 2 $ 4, 8 2 7 , 4 5 6 $ 12 , 1 2 3 , 8 2 3 $ 5,6 1 8 , 1 6 0 $ Ex p a n s i o n 1, 7 0 7 , 1 0 2 $ 1, 8 2 7 , 2 5 9 $ 4, 3 8 3 , 2 0 5 $ 62 4 , 2 4 0 $ 1, 9 2 3 , 7 0 0 $ - $ To t a l 49 , 1 0 2 , 5 1 8 $ 8, 8 1 0 , 1 6 1 $ 10 , 5 5 3 , 8 1 8 $ 5, 4 5 1 , 6 9 6 $ 14 , 0 4 7 , 5 2 2 $ 5,6 1 8 , 1 6 0 $ Feb. 11, 2025 Item #8 Page 201 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Ca p i t a l I m p r o v e m e n t P l a n AN N U A L C I P E S C A L A T I O N : 2. 0 0 % 2. 0 0 % 0. 0 0 % 0.0 0 % 0.0 0 % Cu m u l a t i v e C I P E s c a l a t i o n 0.0 0 % 2. 0 0 % 4. 0 4 % 4.0 4 % 4. 0 4 % 4. 0 4 % BU R N R A T E F O R N E W A P P R O P R I A T I O N S 10 0 . 0 0 % 10 0 . 0 0 % 10 0 . 0 0 % 10 0 . 0 0 % 10 0 . 0 0 % 10 0 . 0 0 % RE C Y C L E D W A T E R R E P L A C E M E N T P R O J E C T S FY E 2 0 2 4 F Y E 2 0 2 5 FY E 2 0 2 6 FY E 2 0 2 7 FY E 2 0 2 8 F Y E 2 0 2 9 In c l u d e P r o j e c t N u m b e r Pr o j e c t T i t l e  35 7 2 5 O r i o n C e n t e r (2 , 5 1 5 , 6 0 0 ) (1 9 2 , 9 8 7 ) -  47 4 9 1 C a r l s b a d W a t e r R e c y c l i n g F a c i l i t y R o o f R e p l a c e m e n t 32 4 , 0 2 4 -  50 0 7 2 C a t h o d i c P r o t e c t i o n P r o g r a m 10 0 , 0 0 0 - 10 0 , 0 0 0 -  50 2 4 2 R e s e r v o i r C o n d i t i o n A s s e s s m e n t a n d R e p a i r P r o g r a m 20 0 , 0 0 0 -  52 0 3 2 C a r l s b a d W a t e r R e c y c l i n g F a c i l i t y ( E n c i n a C a p i t a l P r o j e c t s ) 76 7 , 0 0 0 2, 1 1 2 , 0 0 0 25 2 , 0 0 0 28 5 , 0 0 0 1, 4 0 5 , 0 0 0 28 0 , 0 0 0  52 1 0 2 R e c y c l e d W a t e r P h a s e 3 - R e s e r v o i r 1, 0 0 0 , 0 0 0 -  52 1 1 1 R e c y c l e d W a t e r C o n d i t i o n A s s e s s m e n t P r o g r a m 50 , 0 0 0 50 , 0 0 0 50 , 0 0 0 50 , 0 0 0 50 , 0 0 0 56 , 0 0 0  52 1 2 1 R e c y c l e d W a t e r V a l v e a n d A p p u r t e n a n c e R e p l a c e m e n t P r o g r a m - 12 0 , 0 0 0 12 5 , 0 0 0 12 5 , 0 0 0 12 5 , 0 0 0 12 6 , 0 0 0  52 1 3 1 C a r l s b a d W a t e r R e c y c l i n g F a c i l i t y I r r i g a t i o n a n d L a n d s c a p e (1 4 0 , 0 0 0 ) -  52 1 5 1 C T a n k A c c e s s R o a d a n d E l e c t r i c a l I m p r o v e m e n t s - 1, 1 2 0 , 0 0 0 -  52 1 6 1 R e c y c l e d W a t e r P i p e l i n e R e p l a c e m e n t 35 0 , 0 0 0 35 0 , 0 0 0 35 0 , 0 0 0 35 0 , 0 0 0 35 0 , 0 0 0 43 0 , 0 0 0  55 4 2 3 S C A D A I m p r o v e m e n t s 33 7 , 6 0 0 39 8 , 0 0 0 -  Sp e n d D o w n o f A v a i l a b l e B a l a n c e 7, 5 9 0 , 7 3 4 RE C Y C L E D W A T E R R E P L A C E M E N T P R O J E C T S T O T A L : 8 , 0 6 3 , 7 5 8 $ 2, 8 3 7 , 0 1 3 $ 1, 9 9 7 , 0 0 0 $ 81 0 , 0 0 0 $ 1, 9 3 0 , 0 0 0 $ 89 2 , 0 0 0 $ SU M M A R Y O F R E C Y C L E D W A T E R R E P L A C E M E N T P R O J E C T S FY E 2 0 2 4 F Y E 2 0 2 5 FY E 2 0 2 6 FY E 2 0 2 7 FY E 2 0 2 8 F Y E 2 0 2 9 Un e s c a l a t e d R& R 8, 0 6 3 , 7 5 8 $ 2, 8 3 7 , 0 1 3 $ 1, 9 9 7 , 0 0 0 $ 81 0 , 0 0 0 $ 1, 9 3 0 , 0 0 0 $ 89 2 , 0 0 0 $ Ex p a n s i o n - - - - - - To t a l 8, 0 6 3 , 7 5 8 $ 2, 8 3 7 , 0 1 3 $ 1, 9 9 7 , 0 0 0 $ 81 0 , 0 0 0 $ 1, 9 3 0 , 0 0 0 $ 89 2 , 0 0 0 $ Es c a l a t e d R& R 8, 0 6 3 , 7 5 8 $ 2, 8 9 3 , 7 5 3 $ 2, 0 7 7 , 6 7 9 $ 84 2 , 7 2 4 $ 2, 0 0 7 , 9 7 2 $ 92 8 , 0 3 7 $ Ex p a n s i o n - - - - - - To t a l 8, 0 6 3 , 7 5 8 $ 2, 8 9 3 , 7 5 3 $ 2, 0 7 7 , 6 7 9 $ 84 2 , 7 2 4 $ 2, 0 0 7 , 9 7 2 $ 92 8 , 0 3 7 $ Feb. 11, 2025 Item #8 Page 202 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Ca p i t a l I m p r o v e m e n t P l a n AN N U A L C I P E S C A L A T I O N : 2. 0 0 % 2. 0 0 % 0. 0 0 % 0.0 0 % 0.0 0 % Cu m u l a t i v e C I P E s c a l a t i o n 0.0 0 % 2. 0 0 % 4. 0 4 % 4.0 4 % 4. 0 4 % 4. 0 4 % BU R N R A T E F O R N E W A P P R O P R I A T I O N S 10 0 . 0 0 % 10 0 . 0 0 % 10 0 . 0 0 % 10 0 . 0 0 % 10 0 . 0 0 % 10 0 . 0 0 % RE C Y C L E D W A T E R C O N N E C T I O N P R O J E C T S FY E 2 0 2 4 F Y E 2 0 2 5 FY E 2 0 2 6 FY E 2 0 2 7 FY E 2 0 2 8 F Y E 2 0 2 9 In c l u d e P r o j e c t N u m b e r Pr o j e c t T i t l e  52 1 5 2 C T a n k A c c e s s R o a d a n d E l e c t r i c a l I m p r o v e m e n t s - 36 4 , 0 0 0  Ca r l s b a d W a t e r R e c y c l i n g F a c i l i t y E x p a n s i o n 30 0 , 0 0 0  Sp e n d D o w n o f A v a i l a b l e B a l a n c e 50 , 0 0 0 RE C Y C L E D W A T E R C O N N E C T I O N P R O J E C T S T O T A L : 5 0 , 0 0 0 $ 30 0 , 0 0 0 $ 36 4 , 0 0 0 $ - $ - $ - $ SU M M A R Y O F R E C Y C L E D W A T E R C O N N E C T I O N P R O J E C T S FY E 2 0 2 4 F Y E 2 0 2 5 FY E 2 0 2 6 FY E 2 0 2 7 FY E 2 0 2 8 F Y E 2 0 2 9 Un e s c a l a t e d R& R - $ - $ - $ - $ - $ - $ Ex p a n s i o n 50 , 0 0 0 30 0 , 0 0 0 36 4 , 0 0 0 - - - To t a l 50 , 0 0 0 $ 30 0 , 0 0 0 $ 36 4 , 0 0 0 $ - $ - $ - $ Es c a l a t e d R& R - $ - $ - $ - $ - $ - $ Ex p a n s i o n 50 , 0 0 0 30 6 , 0 0 0 37 8 , 7 0 6 - - - To t a l 50 , 0 0 0 $ 30 6 , 0 0 0 $ 37 8 , 7 0 6 $ - $ - $ - $ SU M M A R Y O F R E C Y C L E D W A T E R S Y S T E M C I P FY E 2 0 2 4 F Y E 2 0 2 5 FY E 2 0 2 6 FY E 2 0 2 7 FY E 2 0 2 8 F Y E 2 0 2 9 Un e s c a l a t e d R& R 8, 0 6 3 , 7 5 8 $ 2, 8 3 7 , 0 1 3 $ 1, 9 9 7 , 0 0 0 $ 81 0 , 0 0 0 $ 1, 9 3 0 , 0 0 0 $ 89 2 , 0 0 0 $ Ex p a n s i o n 50 , 0 0 0 30 0 , 0 0 0 36 4 , 0 0 0 - - - To t a l 8, 1 1 3 , 7 5 8 $ 3, 1 3 7 , 0 1 3 $ 2, 3 6 1 , 0 0 0 $ 81 0 , 0 0 0 $ 1, 9 3 0 , 0 0 0 $ 89 2 , 0 0 0 $ Es c a l a t e d R& R 8, 0 6 3 , 7 5 8 $ 2, 8 9 3 , 7 5 3 $ 2, 0 7 7 , 6 7 9 $ 84 2 , 7 2 4 $ 2, 0 0 7 , 9 7 2 $ 92 8 , 0 3 7 $ Ex p a n s i o n 50 , 0 0 0 30 6 , 0 0 0 37 8 , 7 0 6 - - - To t a l 8, 1 1 3 , 7 5 8 $ 3, 1 9 9 , 7 5 3 $ 2, 4 5 6 , 3 8 4 $ 84 2 , 7 2 4 $ 2, 0 0 7 , 9 7 2 $ 92 8 , 0 3 7 $ Feb. 11, 2025 Item #8 Page 203 of 265 2025 POTABLE AND RECYCLED WATER RATE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT POTABLE AND RECYCLED WATER COST-OF-SERVICE STUDY APPENDIX D PROJECTED O&M COSTS Feb. 11, 2025 Item #8 Page 204 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Po t a b l e W a t e r O & M FY E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 RE V E N U E S Pr o j e c t i o n ( P r e - Ra t e I n c r e a s e ) Pr o j e c t i o n ( P r e - Ra t e I n c r e a s e ) Pr o j e c t i o n ( P r e - Ra t e I n c r e a s e ) Pr o j e c t i o n ( P r e - Ra t e I n c r e a s e ) Pr o j e c t i o n ( P r e - Ra t e I n c r e a s e ) Pr o j e c t i o n ( P r e - Ra t e I n c r e a s e ) Pr o j e c t i o n ( P r e - Ra t e I n c r e a s e ) Ch a r g e s f o r S e r v i c e s 48 8 5 Pl a n C h e c k Ge n e r a l I n f l a t i o n - $ - $ - $ - $ - $ - $ - $ 49 7 6 Sp e c i a l B e n e f i t D i s t r i c t S e r v c Ge n e r a l I n f l a t i o n - - - - - - - 49 9 5 Ad m i n F e e s Ge n e r a l I n f l a t i o n - - - - - - - 51 0 0 Co m m o d i t y U s a g e Cu s t . G r w t h + U s a g e G r w t h 28 , 3 8 5 , 7 5 8 29 , 1 7 0 , 2 3 9 6, 7 3 5 , 9 4 3 7, 4 8 6 , 6 3 2 8, 2 6 6 , 2 3 3 9, 1 8 2 , 4 6 6 9, 9 7 2 , 2 6 5 51 0 1 Wa t e r D e l i v e r y C h a r g e s Cu s t o m e r G r o w t h 13 , 0 1 3 , 3 5 9 13 , 3 7 3 , 0 0 2 7, 4 9 2 , 8 1 7 8, 3 2 7 , 8 5 7 9, 1 9 5 , 0 5 6 10 , 2 1 4 , 2 4 0 11 , 0 9 2 , 7 8 4 SD C W A V a r i a b l e P a s s - T h r o u g h s [C a l c u l a t e d ] $2 3 , 5 9 4 , 9 3 6 $2 6 , 8 6 8 , 4 5 9 $2 9 , 4 9 1 , 7 8 8 $3 0 , 9 4 7 , 5 7 0 $3 2 , 3 9 5 , 1 4 0 SD C W A F i x e d P a s s - T h r o u g h s [C a l c u l a t e d ] 8, 0 0 0 , 7 1 8 9, 5 1 7 , 2 0 6 10 , 4 3 1 , 8 7 3 10 , 8 7 4 , 3 3 0 11 , 2 7 8 , 0 8 5 51 1 0 Ne w A c c o u n t C h a r g e s Gn r l I n f l t n + C s t m r D m n d G r w t h 13 0 , 0 0 0 13 7 , 4 7 3 14 3 , 8 1 0 14 7 , 7 0 7 15 1 , 9 5 5 15 7 , 2 5 1 16 2 , 7 9 3 51 1 1 Ba c k f l o w D e v i c e Gn r l I n f l t n + C s t m r D m n d G r w t h 17 5 , 0 0 0 18 5 , 0 6 0 19 3 , 5 9 1 19 8 , 8 3 6 20 4 , 5 5 4 21 1 , 6 8 4 21 9 , 1 4 5 51 1 3 Qu i c k T u r n o n F e e s Gn r l I n f l t n + C s t m r D m n d G r w t h 12 , 0 0 0 12 , 6 9 0 13 , 2 7 5 13 , 6 3 4 14 , 0 2 7 14 , 5 1 5 15 , 0 2 7 51 1 4 Mis c S e r v i c e s Ge n e r a l I n f l a t i o n - - - - - - - 51 1 5 Sc h e d u l e d D i s c o n n e c t F e e Gn r l I n f l t n + C s t m r D m n d G r w t h 4, 0 0 0 4, 2 3 0 4, 4 2 5 4, 5 4 5 4, 6 7 6 4, 8 3 8 5, 0 0 9 51 2 4 Se r v i c e I n s t a l l a t i o n F e e s Gn r l I n f l t n + C s t m r D m n d G r w t h 20 , 0 0 0 21 , 1 5 0 22 , 1 2 5 22 , 7 2 4 23 , 3 7 8 24 , 1 9 2 25 , 0 4 5 51 2 5 Mis c C o n n C h g Gn r l I n f l t n + C s t m r D m n d G r w t h - - - - - - - 51 2 7 No n J u r i s d i c t i o n a l F e e s Gn r l I n f l t n + C s t m r D m n d G r w t h - - - - - - - Air p o r t C a p i t a l R e p l a c e m e n t C h a r g e [C a l c u l a t e d ] 32 , 9 4 3 68 , 1 9 3 70 , 5 8 0 73 , 0 5 0 75 , 6 0 7 Ot h e r C h a r g e s f o r S e r v i c e s Gn r l I n f l t n + C s t m r D m n d G r w t h - - - - - - - To t a l C h a r g e s f o r S e r v i c e s 41 , 7 4 0 , 1 1 7 $ 42 , 9 0 3 , 8 4 4 $ 46 , 2 3 4 , 5 8 2 $ 52 , 6 5 5 , 7 9 4 $ 57 , 8 5 4 , 1 1 8 $ 61 , 7 0 4 , 1 3 8 $ 65 , 2 4 0 , 8 9 8 $ Ta x R e v e n u e s 40 1 0 Ad j u s t m e n t s - C u r r e n t T a x e s Ge n e r a l I n f l a t i o n - $ - $ - $ - $ - $ - $ - $ 40 1 1 Pr o p e r t y T a x e s - C u r r e n t Pr o p e r t y T a x I n c r e a s e 4, 1 0 1 , 0 0 0 3, 4 1 8 , 4 7 5 3, 5 1 9 , 3 2 0 3, 6 3 2 , 6 4 2 3, 7 5 3 , 2 4 5 3, 8 6 5 , 4 6 8 3, 9 8 4 , 1 3 7 40 1 2 Re f u n d s - C u r r e n t T a x e s Pr o p e r t y T a x I n c r e a s e - - - - - - - 40 1 5 Su p p l e m e n t a l P r o p e r t y T a x e s Pr o p e r t y T a x I n c r e a s e 85 , 0 0 0 70 , 8 5 4 72 , 9 4 4 75 , 2 9 3 77 , 7 9 2 80 , 1 1 8 82 , 5 7 8 40 1 6 Re f u n d s - S u p p l e m e n t a l T a x e s Pr o p e r t y T a x I n c r e a s e - - - - - - - 40 1 8 Un i t a r y T a x ( c o m b i n e w / 4 0 1 1 ) Pr o p e r t y T a x I n c r e a s e 70 , 0 0 0 58 , 3 5 0 60 , 0 7 1 62 , 0 0 6 64 , 0 6 4 65 , 9 8 0 68 , 0 0 5 40 2 0 Pr i o r Y e a r s P r o p e r t y T a x e s Pr o p e r t y T a x I n c r e a s e 57 , 0 0 0 47 , 5 1 4 48 , 9 1 5 50 , 4 9 0 52 , 1 6 7 53 , 7 2 6 55 , 3 7 6 40 2 1 Re f u n d s - P r i o r Y e a r T a x e s Pr o p e r t y T a x I n c r e a s e (2 5 , 0 0 0 ) (2 0 , 8 3 9 ) (2 1 , 4 5 4 ) (2 2 , 1 4 5 ) (2 2 , 8 8 0 ) (2 3 , 5 6 4 ) (2 4 , 2 8 8 ) 40 2 7 Su r p l u s P r o p e r t y T a x I n c r e m e n t Pr o p e r t y T a x I n c r e a s e - - - - - - - 41 1 1 Sa l e s a n d U s e t a x Pr o p e r t y T a x I n c r e a s e - - - - - - - Ot h e r T a x R e v e n u e s Pr o p e r t y T a x I n c r e a s e - - - - - - - To t a l T a x R e v e n u e s 4,2 8 8 , 0 0 0 $ 3, 5 7 4 , 3 5 2 $ 3, 6 7 9 , 7 9 6 $ 3, 7 9 8 , 2 8 5 $ 3, 9 2 4 , 3 8 8 $ 4, 0 4 1 , 7 2 8 $ 4, 1 6 5 , 8 0 9 $ Feb. 11, 2025 Item #8 Page 205 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Po t a b l e W a t e r O & M FY E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 Li c e n s e s a n d P e r m i t s 44 5 2 Fir e P r o t e c t S y s Ge n e r a l I n f l a t i o n - $ - $ - $ - $ - $ - $ - $ Ot h e r L i c e n s e s a n d P e r m i t s Ge n e r a l I n f l a t i o n - - - - - - - To t a l L i c e n s e s a n d P e r m i t s - $ - $ - $ - $ - $ - $ - $ In t e r g o v e r n m e n t a l 45 2 5 Ho m e o w n e r s E x e m p t i o n Ge n e r a l I n f l a t i o n 23 , 0 0 0 $ 24 , 1 5 0 $ 25 , 1 1 6 $ 25 , 7 4 4 $ 26 , 3 8 7 $ 27 , 0 4 7 $ 27 , 7 2 3 $ 46 3 2 Fe d e r a l G r a n t s - C a p i t a l On e T i m e E x p e n s e - - - - - - - 46 9 1 Mis c O t h e r F e d On e T i m e E x p e n s e - - - - - - - 47 5 3 SD C W A / M W D C r e d i t s On e T i m e E x p e n s e - - - - - - - 47 5 4 SD C W A R e b a t e s On e T i m e E x p e n s e - - - - - - - Ot h e r I n t e r g o v e r n m e n t a l Ge n e r a l I n f l a t i o n - - - - - - - To t a l I n t e r g o v e r n m e n t a l 23 , 0 0 0 $ 24 , 1 5 0 $ 25 , 1 1 6 $ 25 , 7 4 4 $ 26 , 3 8 7 $ 27 , 0 4 7 $ 27 , 7 2 3 $ Fi n e s & F o r f e i t u r e s 52 2 1 Re c o n n e c t F e e s Ge n e r a l I n f l a t i o n 1, 3 0 0 $ 1, 3 6 5 $ 1, 4 2 0 $ 1, 4 5 5 $ 1, 4 9 1 $ 1, 5 2 9 $ 1, 5 6 7 $ 52 1 2 Co d e V i o l a t i o n s Ge n e r a l I n f l a t i o n - - - - - - - 52 2 2 Re t u r n C h e c k F e e Ge n e r a l I n f l a t i o n 5, 8 5 0 6, 1 4 3 6, 3 8 8 6, 5 4 8 6, 7 1 2 6, 8 7 9 7, 0 5 1 52 2 5 La t e C h a r g e s Ge n e r a l I n f l a t i o n 15 0 , 0 0 0 15 7 , 5 0 0 16 3 , 8 0 0 16 7 , 8 9 5 17 2 , 0 9 2 17 6 , 3 9 5 18 0 , 8 0 5 52 2 6 Do o r H a n g e r F e e Ge n e r a l I n f l a t i o n 4, 6 0 0 4, 8 3 0 5, 0 2 3 5, 1 4 9 5, 2 7 7 5, 4 0 9 5, 5 4 5 52 2 9 Mis c F i n e s Ge n e r a l I n f l a t i o n - - - - - - - Ot h e r F i n e s & F o r f e i t u r e s Ge n e r a l I n f l a t i o n - - - - - - - To t a l F i n e s & F o r f e i t u r e s 16 1 , 7 5 0 $ 16 9 , 8 3 8 $ 17 6 , 6 3 1 $ 18 1 , 0 4 7 $ 18 5 , 5 7 3 $ 19 0 , 2 1 2 $ 19 4 , 9 6 8 $ In c o m e f r o m P r o p & I n v e s t m e n t s 53 0 0 In t e r e s t I n c o m e - P o o l e d C a s h [C a l c u l a t e d ] - $ 2, 5 5 0 , 7 2 0 $ 2, 1 7 1 , 0 1 0 $ 1, 6 0 8 , 7 5 8 $ 1, 4 0 3 , 4 0 8 $ 1, 2 6 4 , 0 2 2 $ 1, 1 2 0 , 2 7 3 $ 53 0 5 In t e r e s t - U n r e a l i z e d G a i n s / L o s s e s Ge n e r a l I n f l a t i o n - - - - - - - 53 1 3 In t e r e s t I n c o m e - L e a s e s On e T i m e E x p e n s e - - - - - - - 53 1 5 In t e r e s t I n c o m e - P r o p e r t y T a x In t e r e s t I n c o m e 4, 5 0 0 4, 6 1 3 4, 7 2 8 4, 8 4 6 4, 9 6 7 5, 0 9 1 5, 2 1 9 53 2 0 Fa c i l i t i e s R e n t a l s Ge n e r a l I n f l a t i o n - - - - - - - 53 2 5 GA S B 8 7 L e a s e R e v e n u e R E V E N U E On e T i m e E x p e n s e - - - - - - - 53 4 1 Ot h e r R e n t a l s a n d L e a s e s Ge n e r a l I n f l a t i o n 46 , 9 8 0 49 , 3 2 9 51 , 3 0 2 52 , 5 8 5 53 , 8 9 9 55 , 2 4 7 56 , 6 2 8 53 4 2 Ce l l S i t e L e a s e s Ge n e r a l I n f l a t i o n 21 0 , 5 6 4 22 1 , 0 9 2 22 9 , 9 3 6 23 5 , 6 8 4 24 1 , 5 7 6 24 7 , 6 1 6 25 3 , 8 0 6 53 6 0 Sa l e o f C a p i t a l A s s e t s Ge n e r a l I n f l a t i o n - - - - - - - 53 6 1 Do n a t e d A s s e t s On e T i m e E x p e n s e - - - - - - - 53 6 2 Sc r a p & R e c y c l e Ge n e r a l I n f l a t i o n - - - - - - - Ot h e r I n c o m e f r o m P r o p & I n v e s t m e n t s Ge n e r a l I n f l a t i o n - - - - - - - To t a l I n c o m e f r o m P r o p & I n v e s t m e n t s 26 2 , 0 4 4 $ 2, 8 2 5 , 7 5 4 $ 2, 4 5 6 , 9 7 6 $ 1, 9 0 1 , 8 7 3 $ 1, 7 0 3 , 8 5 1 $ 1, 5 7 1 , 9 7 6 $ 1, 4 3 5 , 9 2 5 $ Feb. 11, 2025 Item #8 Page 206 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Po t a b l e W a t e r O & M FY E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 In t e r d e p a r t m e n t a l 54 3 0 En g L a b o r Ge n e r a l I n f l a t i o n 42 , 0 0 0 $ 44 , 1 0 0 $ 45 , 8 6 4 $ 47 , 0 1 1 $ 48 , 1 8 6 $ 49 , 3 9 1 $ 50 , 6 2 5 $ 54 4 2 Re i m b u r s e d W o r k f o r O t h e r D e p t . Ge n e r a l I n f l a t i o n 2, 0 0 0 2, 1 0 0 2, 1 8 4 2, 2 3 9 2, 2 9 5 2, 3 5 2 2, 4 1 1 Ot h e r I n t e r d e p a r t m e n t a l Ge n e r a l I n f l a t i o n - - - - - - - To t a l I n t e r d e p a r t m e n t a l 44 , 0 0 0 $ 46 , 2 0 0 $ 48 , 0 4 8 $ 49 , 2 4 9 $ 50 , 4 8 0 $ 51 , 7 4 2 $ 53 , 0 3 6 $ Ot h e r R e v e n u e s 55 4 2 Ma j o r F a c i l i t i e s Ge n e r a l I n f l a t i o n - $ - $ - $ - $ - $ - $ - $ 55 5 0 Pr i o r Y e a r F e e R e f u n d s Ge n e r a l I n f l a t i o n - - - - - - - 56 3 2 St r L i g h t s / S i g n s Ge n e r a l I n f l a t i o n - - - - - - - 56 3 4 Mis c D a m a g e s Ge n e r a l I n f l a t i o n - - - - - - - 56 3 6 Lo s s R e c o v e r y Ge n e r a l I n f l a t i o n 50 , 0 0 0 52 , 5 0 0 54 , 6 0 0 55 , 9 6 5 57 , 3 6 4 58 , 7 9 8 60 , 2 6 8 56 3 8 Mis c R e i m b u r s e m e n t L o s s e s Ge n e r a l I n f l a t i o n - - - - - - - 56 3 9 Mis c R e i m b u r s e m e n t E x p e n s e s Ge n e r a l I n f l a t i o n - - - - - - - 56 6 4 Mis c A R W r i t e O f f s Ge n e r a l I n f l a t i o n - - - - - - - 56 7 4 Mis c R e v e n u e s Ge n e r a l I n f l a t i o n 40 , 0 0 0 42 , 0 0 0 43 , 6 8 0 44 , 7 7 2 45 , 8 9 1 47 , 0 3 9 48 , 2 1 5 Ot h e r Ge n e r a l I n f l a t i o n - - - - - - - To t a l O t h e r R e v e n u e s 90 , 0 0 0 $ 94 , 5 0 0 $ 98 , 2 8 0 $ 10 0 , 7 3 7 $ 10 3 , 2 5 5 $ 10 5 , 8 3 7 $ 10 8 , 4 8 3 $ Ot h e r F i n a n c i n g S o u r c e s 59 0 0 Tr a n s f e r s I n No A n n u a l I n c r e a s e - $ - $ - $ - $ - $ - $ - $ Ot h e r O t h e r F i n a n c i n g S o u r c e s Ge n e r a l I n f l a t i o n - - - - - - - To t a l O t h e r F i n a n c i n g S o u r c e s - $ - $ - $ - $ - $ - $ - $ TO T A L R E V E N U E S 46 , 6 0 8 , 9 1 1 $ 49 , 6 3 8 , 6 3 8 $ 52 , 7 1 9 , 4 2 9 $ 58 , 7 1 2 , 7 2 8 $ 63 , 8 4 8 , 0 5 3 $ 67 , 6 9 2 , 6 7 9 $ 71 , 2 2 6 , 8 4 2 $ Feb. 11, 2025 Item #8 Page 207 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Po t a b l e W a t e r O & M FY E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 CO D E LI N E I T E M ES C A L A T O R FY E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 EX P E N D I T U R E S Pr o j e c t i o n ( P r e - Ra t e I n c r e a s e ) Pr o j e c t i o n ( P r e - Ra t e I n c r e a s e ) Pr o j e c t i o n ( P r e - Ra t e I n c r e a s e ) Pr o j e c t i o n ( P r e - Ra t e I n c r e a s e ) Pr o j e c t i o n ( P r e - Ra t e I n c r e a s e ) Pr o j e c t i o n ( P r e - Ra t e I n c r e a s e ) Pr o j e c t i o n ( P r e - Ra t e I n c r e a s e ) Pe r s o n n e l 61 0 0 Re g S a l a r i e s La b o r I n f l a t i o n 2, 8 2 5 , 7 1 3 $ 3, 0 2 4 , 2 7 0 $ 3, 1 4 5 , 2 4 1 $ 3, 2 3 9 , 5 9 8 $ 3, 3 3 6 , 7 8 6 $ 3, 4 3 6 , 8 9 0 $ 3, 5 3 9 , 9 9 6 $ 61 3 5 Ha z a r d P a y La b o r I n f l a t i o n - 42 , 6 6 3 44 , 3 7 0 $ 45 , 7 0 1 $ 47 , 0 7 2 $ 48 , 4 8 4 $ 49 , 9 3 8 $ 61 0 1 In c e n t i v e P a y La b o r I n f l a t i o n - - - - - - - 61 4 0 Ot h e r P e r s o n n e l La b o r I n f l a t i o n - - - - - - - 61 5 0 IO D W o r k e r ' s C o m p La b o r I n f l a t i o n - - - - - - - 62 0 0 Ov e r t i m e S a l a r i e s La b o r I n f l a t i o n 11 1 , 2 1 4 12 5 , 0 0 0 13 0 , 0 0 0 13 3 , 9 0 0 13 7 , 9 1 7 14 2 , 0 5 5 14 6 , 3 1 6 62 1 0 St a n d b y P a y La b o r I n f l a t i o n 24 , 4 7 0 23 , 5 5 0 24 , 4 9 2 25 , 2 2 7 25 , 9 8 4 26 , 7 6 3 27 , 5 6 6 63 0 0 Pa r t t i m e S a l a r i e s La b o r I n f l a t i o n - - - - - - - 63 0 5 In t e r n S a l a r i e s La b o r I n f l a t i o n 12 , 7 6 0 12 , 7 6 0 13 , 2 7 0 13 , 6 6 9 14 , 0 7 9 14 , 5 0 1 14 , 9 3 6 63 1 0 El e c t e d O f f i c i a l s ' S a l a r i e s La b o r I n f l a t i o n - 8, 0 0 0 8, 3 2 0 8, 5 7 0 8, 8 2 7 9, 0 9 1 9, 3 6 4 64 0 0 Te m p o r a r y H e l p La b o r I n f l a t i o n 40 , 0 0 0 60 , 0 0 0 62 , 4 0 0 64 , 2 7 2 66 , 2 0 0 68 , 1 8 6 70 , 2 3 2 64 0 5 Re t i r e d A n n u i t a n t P r o j e c t s La b o r I n f l a t i o n 4, 7 6 1 - - - - - - 65 0 1 He a l t h I n s u r a n c e La b o r - H e a l t h I n s u r a n c e 45 3 , 4 9 4 60 0 , 0 7 0 63 8 , 3 5 4 67 7 , 4 8 6 71 7 , 4 5 7 75 8 , 3 5 2 80 1 , 5 7 8 65 1 0 Li f e I n s u r a n c e La b o r I n f l a t i o n 2, 0 4 9 2, 0 8 8 2, 1 7 2 2, 2 3 7 2, 3 0 4 2, 3 7 3 2, 4 4 4 65 1 1 AD & D C i t y P a i d La b o r I n f l a t i o n 1, 0 2 9 1, 0 4 4 1, 0 8 6 1, 1 1 8 1, 1 5 2 1, 1 8 6 1, 2 2 2 65 2 0 Vis i o n I n s u r a n c e La b o r I n f l a t i o n - - - - - - - 65 3 0 Me d i c a r e La b o r I n f l a t i o n 43 , 1 9 5 46 , 0 0 2 47 , 8 4 2 49 , 2 7 7 50 , 7 5 6 52 , 2 7 8 53 , 8 4 7 66 2 0 MT G P h y s i c a l s La b o r I n f l a t i o n - - - - - - - 66 2 9 Ce l l P h o n e A l l o w a n c e La b o r I n f l a t i o n - - - - - - - 66 3 0 Au t o A l l o w a n c e La b o r I n f l a t i o n 1, 6 2 5 1, 6 2 5 1, 6 9 0 1, 7 4 1 1, 7 9 3 1, 8 4 7 1, 9 0 2 66 4 0 Ea r n e d L e a v e A c c r u a l La b o r I n f l a t i o n - - - - - - - 66 5 1 He a l t h y E m p A w a r d s La b o r I n f l a t i o n - - - - - - - 66 5 3 Fin a l V a c a t i o n P a y La b o r I n f l a t i o n - - - - - - - 66 5 4 Fin a l S i c k L e a v e P a y La b o r I n f l a t i o n - - - - - - - 66 5 5 Di s a b i l i t y La b o r I n f l a t i o n 25 , 5 1 3 18 , 2 0 6 18 , 9 3 4 19 , 5 0 2 20 , 0 8 7 20 , 6 9 0 21 , 3 1 1 66 5 6 Un e m p l o y m e n t La b o r I n f l a t i o n 14 , 5 1 3 15 , 8 5 6 16 , 4 9 0 16 , 9 8 5 17 , 4 9 4 18 , 0 1 9 18 , 5 6 0 66 5 7 Wo r k e r ' s C o m p e n s a t i o n La b o r I n f l a t i o n 59 , 1 3 0 79 , 0 5 0 82 , 2 1 2 84 , 6 7 8 87 , 2 1 9 89 , 8 3 5 92 , 5 3 0 67 2 0 PE R S La b o r - P E R S ( N o r m a l C o s t ) 34 6 , 6 2 0 38 3 , 9 6 7 41 5 , 1 7 2 42 7 , 6 2 7 44 0 , 4 5 6 45 3 , 6 6 9 46 7 , 2 8 0 67 2 1 PE R S ( G A S B 6 8 C o n t r a A c c o u n t ) On e T i m e E x p e n s e - - - - - - - PE R S - R e p a y m e n t La b o r - P E R S ( U A L ) - - - - - - - 67 2 2 OP E B E x p e n s e On e T i m e E x p e n s e - - - - - - - 67 2 3 PE R S U n f u n d e d L i a b i l i t y E x p e n s e La b o r - P E R S ( N o r m a l C o s t ) 35 2 , 4 7 4 33 8 , 1 5 0 53 3 , 1 1 8 54 3 , 9 2 9 55 4 , 9 0 8 56 6 , 0 5 6 57 7 , 3 7 3 67 3 0 So c i a l S e c u r i t y La b o r I n f l a t i o n - - - - - - - 67 4 0 De f e r r e d C o m p La b o r I n f l a t i o n 47 8 47 8 49 7 51 2 52 7 54 3 56 0 67 4 1 De f C o m p M a t c h La b o r I n f l a t i o n - - - - - - - Ot h e r P e r s o n n e l La b o r I n f l a t i o n - - - - - - - To t a l P e r s o n n e l C o s t s 4, 3 1 9 , 0 3 8 $ 4, 7 8 2 , 7 7 9 $ 5, 1 8 5 , 6 6 0 $ 5, 3 5 6 , 0 2 7 $ 5, 5 3 1 , 0 1 6 $ 5, 7 1 0 , 8 1 9 $ 5, 8 9 6 , 9 5 5 $ Feb. 11, 2025 Item #8 Page 208 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Po t a b l e W a t e r O & M FY E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 Ma i n t e n a n c e & E q u i p m e n t 71 1 0 Of f i c e E q u i p R e n t a l Ge n e r a l I n f l a t i o n - $ - - $ - $ - $ - $ - $ 71 1 1 Ot h e r M a c h & E q u i p Ge n e r a l I n f l a t i o n 2, 0 0 0 10 , 5 9 5 11 , 0 1 9 11 , 2 9 4 11 , 5 7 7 11 , 8 6 6 12 , 1 6 3 71 1 5 Ve h i c l e R e n t a l s Ge n e r a l I n f l a t i o n 17 , 1 5 0 17 , 1 5 0 17 , 8 3 6 18 , 2 8 2 18 , 7 3 9 19 , 2 0 7 19 , 6 8 8 71 1 9 Mis c R e n t a l s Ge n e r a l I n f l a t i o n 14 , 0 0 0 51 , 0 0 0 53 , 0 4 0 54 , 3 6 6 55 , 7 2 5 57 , 1 1 8 58 , 5 4 6 71 2 0 Mis c L e a s e s Ge n e r a l I n f l a t i o n - - - - - - - 72 1 0 Of f i c e E q u i p M a i n t e n a n c e Ge n e r a l I n f l a t i o n - - - - - - - 72 1 1 Co m m u n i c a t i o n E q u i p M a i n t e n a n c e Ge n e r a l I n f l a t i o n 3, 0 0 0 3, 0 0 0 3, 1 2 0 3, 1 9 8 3, 2 7 8 3, 3 6 0 3, 4 4 4 72 1 5 So f t w a r e M a i n t e n a n c e Ge n e r a l I n f l a t i o n 67 , 7 0 3 23 , 7 7 7 24 , 7 2 8 25 , 3 4 7 25 , 9 8 0 26 , 6 3 0 27 , 2 9 6 72 1 6 Co m p u t e r M a i n t e n a n c e Ge n e r a l I n f l a t i o n - - - - - - - 72 2 0 Ve h i c l e M a i n t Ge n e r a l I n f l a t i o n 30 , 0 0 0 30 , 0 0 0 31 , 2 0 0 31 , 9 8 0 32 , 7 8 0 33 , 5 9 9 34 , 4 3 9 72 2 1 Wa s h a n d W a x Ge n e r a l I n f l a t i o n 33 , 4 5 5 23 , 4 5 0 24 , 3 8 8 24 , 9 9 8 25 , 6 2 3 26 , 2 6 3 26 , 9 2 0 72 2 2 Ot h e r E q u i p M a i n t e n a n c e Ge n e r a l I n f l a t i o n 10 0 10 0 10 4 10 7 10 9 11 2 11 5 72 2 5 Ca r W a s h R e p a i r s Ge n e r a l I n f l a t i o n - - - - - - - 72 2 6 Pi p e l i n e M a i n t e n a n c e Ge n e r a l I n f l a t i o n 11 0 , 7 5 0 54 , 5 0 0 56 , 6 8 0 58 , 0 9 7 59 , 5 4 9 61 , 0 3 8 62 , 5 6 4 72 2 7 Fir e H y d r a n t M a i n t e n a n c e - C i t y Ge n e r a l I n f l a t i o n 36 , 3 0 1 38 , 9 6 3 40 , 5 2 1 41 , 5 3 4 42 , 5 7 3 43 , 6 3 7 44 , 7 2 8 72 2 8 FI R E H Y D R A N T M A I N T E N A N C E - O T H E R Ge n e r a l I n f l a t i o n 15 , 0 0 0 15 , 0 0 0 15 , 6 0 0 15 , 9 9 0 16 , 3 9 0 16 , 7 9 9 17 , 2 1 9 72 3 0 Ro u t i n e B u i l d i n g M a i n t e n a n c e Ge n e r a l I n f l a t i o n 5, 0 0 0 5, 0 0 0 5, 2 0 0 5, 3 3 0 5, 4 6 3 5, 6 0 0 5, 7 4 0 72 4 1 As p h a l t R e p a i r s Ge n e r a l I n f l a t i o n 14 9 , 3 6 0 10 0 , 0 0 0 10 4 , 0 0 0 10 6 , 6 0 0 10 9 , 2 6 5 11 1 , 9 9 7 11 4 , 7 9 7 72 4 4 St r e e t S w e e p i n g Ge n e r a l I n f l a t i o n - - - - - - - 72 4 9 Ma i n t e n a n c e , R e p a i r a n d R e h a b Ge n e r a l I n f l a t i o n 10 , 8 3 0 12 , 7 6 0 13 , 2 7 0 13 , 6 0 2 13 , 9 4 2 14 , 2 9 1 14 , 6 4 8 74 0 0 Au d i t Ge n e r a l I n f l a t i o n - - - - - - - 74 1 0 Le g a l Ge n e r a l I n f l a t i o n 70 , 0 0 0 57 , 9 0 7 60 , 2 2 3 61 , 7 2 8 63 , 2 7 2 64 , 8 5 3 66 , 4 7 5 74 3 5 Ad m i n i s t r a t i v e Ge n e r a l I n f l a t i o n 45 , 0 0 0 45 , 0 0 0 46 , 8 0 0 47 , 9 7 0 49 , 1 6 9 50 , 3 9 8 51 , 6 5 8 74 8 0 Cl a i m s A d m i n Ge n e r a l I n f l a t i o n - - - - - - - 74 9 0 Mis c P r o f e s s i o n a l S e r v i c e s Ge n e r a l I n f l a t i o n 76 7 , 0 5 9 74 7 , 3 6 0 77 7 , 2 5 5 79 6 , 6 8 6 81 6 , 6 0 3 83 7 , 0 1 8 85 7 , 9 4 4 75 0 0 En c i n a S e r v i c e s Ge n e r a l I n f l a t i o n - - - - - - - 75 1 0 Ci t y G e n e r a t e d Ge n e r a l I n f l a t i o n - - - - - - - 75 1 1 Ci t i z e n G e n e r a t e d Ge n e r a l I n f l a t i o n - - - - - - - 75 5 0 Mis c e l l a n e o u s O u t s i d e S e r v i c e s Ge n e r a l I n f l a t i o n 43 9 , 2 0 7 53 1 , 9 2 2 55 3 , 1 9 9 56 7 , 0 2 9 58 1 , 2 0 5 59 5 , 7 3 5 61 0 , 6 2 8 75 5 1 Ba n k S e r v i c e s Ge n e r a l I n f l a t i o n 52 , 4 5 4 52 , 4 5 4 54 , 5 5 2 55 , 9 1 6 57 , 3 1 4 58 , 7 4 7 60 , 2 1 5 75 5 2 Bo o k B i n d i n g Ge n e r a l I n f l a t i o n - - - - - - - 75 5 3 Co m m A r t s S u p p o r t Ge n e r a l I n f l a t i o n - - - - - - - 75 5 4 Re g u l a t o r y / P e r m i t t i n g F e e s Ge n e r a l I n f l a t i o n 14 3 , 4 0 0 15 8 , 2 5 9 16 4 , 5 8 9 16 8 , 7 0 4 17 2 , 9 2 1 17 7 , 2 4 4 18 1 , 6 7 6 75 5 6 Mis c S e r v i c e s Ge n e r a l I n f l a t i o n - - - - - - - ** * P a s s T h r u C h a r g e s 75 5 7 Cu s t o m e r S e r v i c e C h a r g e [ C a l c u l a t e d ] 6, 8 8 5 , 0 0 0 85 5 , 7 9 8 96 3 , 1 7 4 1, 1 1 9 , 7 0 7 1, 2 2 1 , 7 8 3 1, 2 6 9 , 2 8 1 1, 3 1 3 , 9 9 7 Em e r g e n c y S t o r a g e C h a r g e [ C a l c u l a t e d ] - 2, 0 6 4 , 7 8 0 2, 2 2 9 , 4 9 2 2, 5 5 3 , 5 2 9 2, 7 8 6 , 3 1 6 2, 8 9 4 , 6 3 7 2, 9 9 6 , 6 1 4 In f r a s t r u c t u r e A c c e s s C h a r g e [ C a l c u l a t e d ] - 2, 0 0 2 , 9 8 6 2, 0 7 1 , 3 7 4 2, 1 7 9 , 6 8 0 2, 4 1 5 , 5 8 0 2, 5 1 9 , 6 5 2 2, 6 1 6 , 0 8 4 Su p p l y R e l i a b i l i t y C h a r g e [ C a l c u l a t e d ] - 1, 4 9 8 , 7 7 6 1, 6 4 6 , 5 2 6 1, 9 1 1 , 7 8 0 2, 0 8 6 , 0 6 3 2, 1 6 7 , 1 6 1 2, 2 4 3 , 5 0 9 Fix e d T r a n s p o r t a t i o n C h a r g e [ C a l c u l a t e d ] - - 52 0 , 7 9 4 1, 1 1 9 , 7 0 7 1, 2 2 1 , 7 8 3 1, 2 6 9 , 2 8 1 1, 3 1 3 , 9 9 7 MW D C a p a c i t y R e s e r v a t i o n C h a r g e [ C a l c u l a t e d ] - 21 7 , 3 2 0 26 2 , 8 3 6 31 3 , 3 6 7 34 9 , 4 0 4 37 7 , 6 1 2 39 6 , 4 9 3 MW D R e a d i n e s s t o S e r v i c e C h a r g e [ C a l c u l a t e d ] - 37 4 , 9 1 6 39 5 , 5 5 6 44 1 , 0 4 5 49 1 , 7 6 5 51 6 , 3 5 3 54 2 , 1 7 1 Feb. 11, 2025 Item #8 Page 209 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Po t a b l e W a t e r O & M FY E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 75 5 8 La u n d r y a n d U n i f o r m M a i n t e n a n c e Ge n e r a l I n f l a t i o n 8, 0 0 0 8, 0 0 0 8, 3 2 0 8, 5 2 8 8, 7 4 1 8, 9 6 0 9, 1 8 4 75 5 9 El e c t r i c a l / S c a d a S e r v i c e s Ge n e r a l I n f l a t i o n 53 , 9 0 4 10 7 , 8 1 9 11 2 , 1 3 2 11 4 , 9 3 5 11 7 , 8 0 9 12 0 , 7 5 4 12 3 , 7 7 3 75 6 0 Wa t e r S a m p l i n g S e r v i c e s Ge n e r a l I n f l a t i o n 17 9 , 2 6 0 17 5 , 7 2 4 18 2 , 7 5 3 18 7 , 3 2 2 19 2 , 0 0 5 19 6 , 8 0 5 20 1 , 7 2 6 75 6 1 Wa t e r C o n s e r v a t i o n S e r v i c e s Ge n e r a l I n f l a t i o n 22 , 5 0 0 11 , 2 5 0 11 , 7 0 0 11 , 9 9 3 12 , 2 9 2 12 , 6 0 0 12 , 9 1 5 75 6 4 La n d s c a p i n g S e r v i c e s Ge n e r a l I n f l a t i o n 13 6 , 1 2 0 17 0 , 0 6 8 17 6 , 8 7 1 18 1 , 2 9 3 18 5 , 8 2 5 19 0 , 4 7 1 19 5 , 2 3 3 77 1 0 Ad s a n d P u b l i s h i n g Ge n e r a l I n f l a t i o n 50 0 50 0 52 0 53 3 54 6 56 0 57 4 77 1 1 Du e s a n d S u b s c r i p t i o n s Ge n e r a l I n f l a t i o n 42 , 5 0 0 43 , 1 1 5 44 , 8 4 0 45 , 9 6 1 47 , 1 1 0 48 , 2 8 7 49 , 4 9 5 77 1 2 Bo o k s a n d P u b l i c a t i o n s Ge n e r a l I n f l a t i o n 60 0 60 0 62 4 64 0 65 6 67 2 68 9 77 1 3 Au d i o - V i s u a l M a t e r i a l s Ge n e r a l I n f l a t i o n - - - - - - - 77 1 5 Pr i n t i n g Ge n e r a l I n f l a t i o n 12 , 0 0 0 12 , 0 0 0 12 , 4 8 0 12 , 7 9 2 13 , 1 1 2 13 , 4 4 0 13 , 7 7 6 77 2 0 Po s t a g e Ge n e r a l I n f l a t i o n 7, 0 0 0 9, 0 0 0 9, 3 6 0 9, 5 9 4 9, 8 3 4 10 , 0 8 0 10 , 3 3 2 77 2 5 Of f i c e S u p p l i e s Ge n e r a l I n f l a t i o n 11 , 0 0 0 11 , 0 0 0 11 , 4 4 0 11 , 7 2 6 12 , 0 1 9 12 , 3 2 0 12 , 6 2 8 77 2 6 Of f i c e F u r n i t u r e & E q u i p m e n t Ge n e r a l I n f l a t i o n 15 , 0 0 0 15 , 0 0 0 15 , 6 0 0 15 , 9 9 0 16 , 3 9 0 16 , 7 9 9 17 , 2 1 9 77 3 0 Co m p u t e r S o f t w a r e Ge n e r a l I n f l a t i o n 10 , 0 0 0 10 , 0 0 0 10 , 4 0 0 10 , 6 6 0 10 , 9 2 7 11 , 2 0 0 11 , 4 8 0 77 3 1 Mis c . C o m p u t e r H a r d w a r e Ge n e r a l I n f l a t i o n 5, 0 0 0 8, 0 0 0 8, 3 2 0 8, 5 2 8 8, 7 4 1 8, 9 6 0 9, 1 8 4 77 3 5 Pr o m o M a t e r i a l s Ge n e r a l I n f l a t i o n 11 , 7 0 8 6, 0 0 0 6, 2 4 0 6, 3 9 6 6, 5 5 6 6, 7 2 0 6, 8 8 8 77 4 1 Pr e s c h o o l Ge n e r a l I n f l a t i o n - - - - - - - 77 4 5 Fo o d E x p e n s e Ge n e r a l I n f l a t i o n - - - - - - - 77 5 0 He a t a n d L i g h t Ut i l i t i e s I n f l a t i o n 12 6 , 2 7 0 13 5 , 8 9 7 14 2 , 6 9 2 14 9 , 8 2 6 15 7 , 3 1 8 16 5 , 1 8 4 17 3 , 4 4 3 77 5 1 Te l e p h o n e & C o m m u n i c a t i o n s Ut i l i t i e s I n f l a t i o n 13 , 6 0 0 13 , 6 0 0 14 , 2 8 0 14 , 9 9 4 15 , 7 4 4 16 , 5 3 1 17 , 3 5 7 77 5 2 Wa s t e D i s p o s a l S e r v i c e s Ut i l i t i e s I n f l a t i o n 30 , 1 4 9 18 , 1 9 6 19 , 1 0 6 20 , 0 6 1 21 , 0 6 4 22 , 1 1 7 23 , 2 2 3 77 5 3 Wa t e r Ut i l i t i e s I n f l a t i o n 19 , 3 2 2 19 , 3 2 2 20 , 2 8 8 21 , 3 0 3 22 , 3 6 8 23 , 4 8 6 24 , 6 6 0 78 0 1 Bu i l d i n g M a i n t e n a n c e Ge n e r a l I n f l a t i o n - - - - - - - 78 1 0 El e c t r i c a l S u p p l i e s Ge n e r a l I n f l a t i o n - - - - - - - 78 1 1 Ja n i t o r i a l S u p p l i e s Ge n e r a l I n f l a t i o n - - - - - - - 78 1 2 Sig n M a t e r i a l s Ge n e r a l I n f l a t i o n - - - - - - - 78 2 0 Pa r t s - V e h i c l e s Ge n e r a l I n f l a t i o n - - - - - - - 78 2 1 Pa r t s - E q u i p Ge n e r a l I n f l a t i o n 27 5 , 8 9 7 20 6 , 7 2 8 21 4 , 9 9 7 22 0 , 3 7 2 22 5 , 8 8 1 23 1 , 5 2 8 23 7 , 3 1 7 78 3 0 Ro c k a n d M i n e r a l P r o d u c t s Ge n e r a l I n f l a t i o n 15 , 0 0 0 15 , 0 0 0 15 , 6 0 0 15 , 9 9 0 16 , 3 9 0 16 , 7 9 9 17 , 2 1 9 78 3 1 As p h a l t Ge n e r a l I n f l a t i o n 5, 0 0 0 5, 0 0 0 5, 2 0 0 5, 3 3 0 5, 4 6 3 5, 6 0 0 5, 7 4 0 78 5 0 Sm a l l T o o l s Ge n e r a l I n f l a t i o n 5, 0 0 0 8, 0 0 0 8, 3 2 0 8, 5 2 8 8, 7 4 1 8, 9 6 0 9, 1 8 4 78 5 1 Sa f e t y E q u i p m e n t Ge n e r a l I n f l a t i o n 44 , 9 0 0 44 , 9 0 0 46 , 6 9 6 47 , 8 6 3 49 , 0 6 0 50 , 2 8 6 51 , 5 4 4 78 5 2 Un i f o r m s a n d A c c e s s o r i e s Ge n e r a l I n f l a t i o n 7, 2 8 4 7, 2 8 4 7, 5 7 5 7, 7 6 5 7, 9 5 9 8, 1 5 8 8, 3 6 2 78 5 3 Me t e r s / F i t t i n g s - N e w D e v e l o p m e n t Ge n e r a l I n f l a t i o n 10 2 , 2 6 8 62 , 9 4 3 65 , 4 6 1 67 , 0 9 7 68 , 7 7 5 70 , 4 9 4 72 , 2 5 6 78 6 3 Me t e r s / F i t t i n g s - R e p l a c e m e n t Ge n e r a l I n f l a t i o n 18 3 , 4 3 1 16 3 , 0 8 9 16 9 , 6 1 3 17 3 , 8 5 3 17 8 , 1 9 9 18 2 , 6 5 4 18 7 , 2 2 1 78 5 5 Fir e H o s e a n d A p p l i a n c e s Ge n e r a l I n f l a t i o n - - - - - - - 78 5 6 Re s c u e E q u i p m e n t Ge n e r a l I n f l a t i o n - - - - - - - 78 5 7 Pe r s o n a l P r o t e c t i v e E q u i p m e n t Ge n e r a l I n f l a t i o n - - - - - - - 78 5 8 Br e a t h i n g A p p a r a t u s E q u i p m e n t Ge n e r a l I n f l a t i o n - - - - - - - 78 6 5 Au t o m a t e d M e t e r P r o g r a m Ge n e r a l I n f l a t i o n - - - - - - - 78 8 0 Ga s o l i n e a n d O i l Ut i l i t i e s I n f l a t i o n 2, 5 0 0 2, 5 0 0 2, 6 2 5 2, 7 5 6 2, 8 9 4 3, 0 3 9 3, 1 9 1 78 8 1 Pr o p a n e Ge n e r a l I n f l a t i o n 50 0 50 0 52 0 53 3 54 6 56 0 57 4 78 8 2 Ot h e r P e t r o l P r o d u c t s Ge n e r a l I n f l a t i o n - - - - - - - Feb. 11, 2025 Item #8 Page 210 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Po t a b l e W a t e r O & M FY E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 78 8 3 Ch e m i c a l s Ch e m i c a l s I n f l a t i o n 55 , 2 1 3 68 , 4 8 5 71 , 9 0 9 75 , 5 0 5 79 , 2 8 0 83 , 2 4 4 87 , 4 0 6 78 9 0 CM W D P u r c W a t e r - O u t s i d e A g e n c y [ C a l c u l a t e d ] 19 , 0 0 0 , 0 0 0 21 , 0 0 5 , 7 7 4 23 , 5 9 4 , 9 3 6 26 , 8 6 8 , 4 5 9 29 , 4 9 1 , 7 8 8 30 , 9 4 7 , 5 7 0 32 , 3 9 5 , 1 4 0 78 9 2 De s a l C o s t s [ C a l c u l a t e d ] 8, 3 0 0 , 0 0 0 9, 3 4 2 , 3 2 5 9, 9 8 4 , 4 1 9 10 , 9 4 4 , 9 8 0 11 , 2 2 3 , 2 5 8 11 , 5 0 9 , 5 8 9 11 , 8 0 4 , 3 2 6 78 9 9 Mis c S u p p l i e s Ge n e r a l I n f l a t i o n 45 , 0 0 0 45 , 0 0 0 46 , 8 0 0 47 , 9 7 0 49 , 1 6 9 50 , 3 9 8 51 , 6 5 8 81 1 0 Em p l o y e e T r a i n i n g Ge n e r a l I n f l a t i o n 6, 0 0 0 6, 0 0 0 6, 2 4 0 6, 3 9 6 6, 5 5 6 6, 7 2 0 6, 8 8 8 81 2 0 Tu i t i o n R e i m b u r s e m e n t Ge n e r a l I n f l a t i o n - - - - - - - 81 3 0 Tr a i n i n g / T r a i n i n g R e l a t e d T r a v e l Ge n e r a l I n f l a t i o n 14 , 9 2 8 15 , 3 9 0 16 , 0 0 6 16 , 4 0 6 16 , 8 1 6 17 , 2 3 6 17 , 6 6 7 85 0 0 De p r e c i a t i o n De p r e c i a t i o n F u n d i n g 5, 0 0 0 , 0 0 0 5, 0 0 0 , 0 0 0 5, 0 5 8 , 0 0 0 5, 1 1 6 , 1 6 7 5, 1 7 5 , 0 0 3 5, 2 3 4 , 5 1 5 5, 2 9 4 , 7 1 2 85 1 0 Pr o p T a x e s P D Ge n e r a l I n f l a t i o n 2, 8 6 9 2, 8 6 9 2, 9 8 4 3, 0 5 8 3, 1 3 5 3, 2 1 3 3, 2 9 4 85 2 0 Co n f e r e n c e T r a v e l Ge n e r a l I n f l a t i o n 6, 5 0 0 3, 7 5 0 3, 9 0 0 3, 9 9 7 4, 0 9 7 4, 2 0 0 4, 3 0 5 85 2 2 Mis c . M e a l s / M i l e s Ge n e r a l I n f l a t i o n 7, 0 0 0 3, 8 7 5 4, 0 3 0 4, 1 3 1 4, 2 3 4 4, 3 4 0 4, 4 4 8 85 3 0 Ba d D e b t E x p - O t h e r I n v / B i l l s Ge n e r a l I n f l a t i o n 23 , 0 0 0 23 , 0 0 0 23 , 9 2 0 24 , 5 1 8 25 , 1 3 1 25 , 7 5 9 26 , 4 0 3 85 3 2 Di s p o s a l o f A s s e t s On e T i m e E x p e n s e - - - - - - - 85 3 4 Re g O v e r / S h o r t Ge n e r a l I n f l a t i o n - - - - - - - 86 1 0 Se t t l e m e n t s Ge n e r a l I n f l a t i o n - - - - - - - 86 1 5 In t e r e s t o n D e p o s i t Ge n e r a l I n f l a t i o n - - - - - - - 86 2 1 In t e r f u n d S e r v i c e s Ge n e r a l I n f l a t i o n - - - - - - - 86 9 9 Mis c E x p e n d i t u r e s Ge n e r a l I n f l a t i o n - - - - - - - 87 0 0 Co n t i n g e n c i e s Ge n e r a l I n f l a t i o n - - - - - - - 88 0 9 Ve h i c l e D i r e c t C h a r g e s Ge n e r a l I n f l a t i o n 17 , 5 2 0 3, 7 9 1 3, 9 4 3 4, 0 4 1 4, 1 4 2 4, 2 4 6 4, 3 5 2 88 1 0 Ve h i c l e M a i n t e n a n c e Ge n e r a l I n f l a t i o n 16 3 , 3 4 4 16 8 , 0 8 0 17 4 , 8 0 3 17 9 , 1 7 3 18 3 , 6 5 3 18 8 , 2 4 4 19 2 , 9 5 0 88 1 1 Ve h i c l e R e p l a c e m e n t Ge n e r a l I n f l a t i o n 20 4 , 9 3 1 19 4 , 2 5 7 20 2 , 0 2 8 20 7 , 0 7 8 21 2 , 2 5 5 21 7 , 5 6 2 22 3 , 0 0 1 88 2 0 St r e e t L i g h t i n g Ge n e r a l I n f l a t i o n - - - - - - - 88 2 2 Me d i a n M a i n t e n a n c e Ge n e r a l I n f l a t i o n - - - - - - - 88 3 0 Ge n e r a l L a b Ge n e r a l I n f l a t i o n 25 1 , 6 3 0 66 8 , 6 4 0 69 5 , 3 8 6 71 2 , 7 7 0 73 0 , 5 8 9 74 8 , 8 5 4 76 7 , 5 7 6 88 4 0 Co p y S e r v i c e s Ge n e r a l I n f l a t i o n - - - - - - - 88 5 5 Re c o r d s M a n a g e m e n t I n t e r d e p t Ge n e r a l I n f l a t i o n - - - - - - - 88 6 0 In f o r m a t i o n T e c h n o l o g i e s Ge n e r a l I n f l a t i o n 62 5 , 9 0 6 74 7 , 5 3 3 77 7 , 4 3 4 79 6 , 8 7 0 81 6 , 7 9 2 83 7 , 2 1 2 85 8 , 1 4 2 88 9 0 Mis c I n t e r d e p a r t m e n t a l C h a r g e s Ge n e r a l I n f l a t i o n 1, 8 9 8 , 0 2 5 1, 9 8 3 , 2 8 3 2, 0 6 2 , 6 1 4 2, 1 1 4 , 1 7 9 2, 1 6 7 , 0 3 4 2, 2 2 1 , 2 1 0 2, 2 7 6 , 7 4 0 88 9 1 Mis C h g B a c k Ge n e r a l I n f l a t i o n - - - - - - - 88 9 2 Ut i l i t y B i l l i n g C h a r g e b a c k Ge n e r a l I n f l a t i o n - - - - - - - 89 1 0 Fis c a l A g e n t F e e s Ge n e r a l I n f l a t i o n - - - - - - - 89 1 1 Ar b i t r a g e C o s t s Ge n e r a l I n f l a t i o n - - - - - - - 89 1 2 Mis c D e b t E x p e n s e Ge n e r a l I n f l a t i o n - - - - - - - 89 2 0 Pr i n c i p a l [ C a l c u l a t e d ] - - - - - - - 89 2 1 In t e r e s t E x p e n s e [ C a l c u l a t e d ] - - - - - - - 89 2 2 In t E x p - C a p i t a l i z e d I n t e r e s t Ge n e r a l I n f l a t i o n - - - - - - - 89 3 0 Am o r t i z a t i o n E x p e n s e Ge n e r a l I n f l a t i o n - - - - - - - 89 3 1 Is s u a n c e C o s t s Ge n e r a l I n f l a t i o n - - - - - - - Ot h e r No A n n u a l I n c r e a s e - - - - - - - Me t e r R e p l a c e m e n t s Ge n e r a l I n f l a t i o n - - 19 4 , 0 0 0 19 8 , 8 5 0 20 3 , 8 2 1 20 8 , 9 1 7 Ad d i t i o n a l M a i n t e n a n c e & E q u i p m e n t [ C a l c u l a t e d B e l o w ] (9 1 5 , 9 7 5 ) (9 2 4 , 1 0 7 ) (1 , 0 1 0 , 0 0 6 ) (1 , 1 0 2 , 8 9 4 ) (1 , 1 6 6 , 4 1 8 ) (1 , 2 0 6 , 5 4 0 ) (1 , 2 4 5 , 6 6 5 ) To t a l M a i n t e n a n c e & E q u i p m e n t C o s t s 44 , 9 4 8 , 8 7 3 $ 48 , 6 4 1 , 7 5 4 $ 53 , 2 1 0 , 9 9 4 $ 59 , 3 4 7 , 5 3 9 $ 63 , 3 8 2 , 5 0 0 $ 65 , 7 9 4 , 9 0 9 $ 68 , 1 8 2 , 4 0 9 $ Feb. 11, 2025 Item #8 Page 211 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Po t a b l e W a t e r O & M FY E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 Ca p i t a l O u t l a y 90 0 3 No n - B u d g e t e d C a p E q u i p < $ 1 0 K Ge n e r a l I n f l a t i o n - $ - - $ - $ - $ - $ - $ 90 0 5 Ca p i t a l O u t l a y < $ 1 0 K N e w Ge n e r a l I n f l a t i o n 1, 5 0 0 - - - - - - 90 0 6 Ca p i t a l O u t l a y < $ 1 0 K - R e p l Ge n e r a l I n f l a t i o n - - - - - - - 90 1 0 Ca p O u t l a y - V e h i c l e s Ge n e r a l I n f l a t i o n 45 , 3 6 5 49 , 3 0 2 51 , 2 7 4 52 , 5 5 6 53 , 8 7 0 55 , 2 1 7 56 , 5 9 7 90 1 8 No n - B u d g e t e d C a p E q u i p > $ 1 0 K Ge n e r a l I n f l a t i o n 11 , 7 9 5 - - - - - - 90 1 9 Co m p u t e r E q u i p > $ 1 0 K - N e w Ge n e r a l I n f l a t i o n 30 , 2 2 3 - - - - - - 90 2 0 Co m p u t e r E q u i p > $ 1 0 K - R e p l Ge n e r a l I n f l a t i o n - - - - - - - 90 2 1 Of f i c e E q u i p m e n t Ge n e r a l I n f l a t i o n - - - - - - - 90 2 2 Ot h e r E q u i p m e n t Ge n e r a l I n f l a t i o n - - - - - - - 90 3 0 Of f i c e F u r n i t u r e Ge n e r a l I n f l a t i o n - - - - - - - 90 4 0 Re c l a s s C a p i t a l O u t l a y Ge n e r a l I n f l a t i o n - - - - - - - 90 5 0 Ca p i t a l i z e d A s s e t s On e T i m e E x p e n s e - - - - - - - Ot h e r C a p i t a l O u t l a y Ge n e r a l I n f l a t i o n - - - - - - - To t a l C a p i t a l O u t l a y C o s t s 88 , 8 8 3 $ 49 , 3 0 2 $ 51 , 2 7 4 $ 52 , 5 5 6 $ 53 , 8 7 0 $ 55 , 2 1 7 $ 56 , 5 9 7 $ Ot h e r F i n a n c i n g U s e s 99 9 9 Tr a n s f e r s O u t On e T i m e E x p e n s e 5, 0 0 0 , 0 0 0 $ 5, 0 0 0 , 0 0 0 - $ - $ - $ - $ - $ Ot h e r O t h e r F i n a n c i n g U s e s Ge n e r a l I n f l a t i o n - - - - - - - To t a l O t h e r F i n a n c i n g U s e s C o s t s 5, 0 0 0 , 0 0 0 $ 5, 0 0 0 , 0 0 0 $ - $ - $ - $ - $ - $ To t a l E x p e n d i t u r e s 54 , 3 5 6 , 7 9 4 $ 58 , 4 7 3 , 8 3 5 $ 58 , 4 4 7 , 9 2 8 $ 64 , 7 5 6 , 1 2 3 $ 68 , 9 6 7 , 3 8 6 $ 71 , 5 6 0 , 9 4 5 $ 74 , 1 3 5 , 9 6 2 $ Ra t e R e v e n u e s W i t h o u t I n c r e a s e s FO R R E F E R E N C E - D O E S N O T I M P A C T M O D E L C A L C U L A T I O N S Wi t h S p l i t o u t o f P a s s - t h r o u g h s Ca r l s b a d P o r t i o n Co m m o d i t y U s a g e Cu s t . G r w t h + U s a g e G r w t h 28 , 3 8 5 , 7 5 8 $ 29 , 1 7 0 , 2 3 9 $ 6, 7 3 5 , 9 4 3 $ 6, 7 5 0 , 0 7 3 $ 6, 7 7 5 , 4 3 0 $ 6, 8 4 2 , 2 0 2 $ 6, 9 1 2 , 2 9 0 $ Wa t e r D e l i v e r y C h a r g e s Cu s t o m e r G r o w t h 13 , 0 1 3 , 3 5 9 13 , 3 7 3 , 0 0 2 7, 4 9 2 , 8 1 7 7, 5 0 8 , 5 3 5 7, 5 3 6 , 7 4 2 7, 6 1 1 , 0 1 6 7, 6 8 8 , 9 7 9 To t a l R a t e R e v e n u e s W i t h o u t I n c r e a s e s $4 1 , 3 9 9 , 1 1 7 $ 4 2 , 5 4 3 , 2 4 1 $ 1 4 , 2 2 8 , 7 6 0 $ 1 4 , 2 5 8 , 6 0 8 $ 1 4 , 3 1 2 , 1 7 2 $ 1 4 , 4 5 3 , 2 1 8 $ 1 4 , 6 0 1 , 2 6 9 Ad j u s t e d d o w n f o r P a s s - t h r o u g h I m p l e m e n t a t i o n Wi t h o u t S p l i t o u t o f P a s s - t h r o u g h s Co m m o d i t y U s a g e Cu s t . G r w t h + U s a g e G r w t h 28 , 3 8 5 , 7 5 8 $ 29 , 1 7 0 , 2 3 9 $ 29 , 3 4 8 , 0 4 0 $ 29 , 4 0 9 , 6 0 5 $ 29 , 5 2 0 , 0 8 6 $ 29 , 8 1 1 , 0 0 5 $ 30 , 1 1 6 , 3 7 1 $ Wa t e r D e l i v e r y C h a r g e s Cu s t o m e r G r o w t h 13 , 0 1 3 , 3 5 9 13 , 3 7 3 , 0 0 2 13 , 4 5 4 , 5 1 4 13 , 4 8 2 , 7 3 8 13 , 5 3 3 , 3 8 8 13 , 6 6 6 , 7 5 9 13 , 8 0 6 , 7 5 3 To t a l R a t e R e v e n u e s W i t h o u t I n c r e a s e s $4 1 , 3 9 9 , 1 1 7 $ 4 2 , 5 4 3 , 2 4 1 $ 4 2 , 8 0 2 , 5 5 4 $ 4 2 , 8 9 2 , 3 4 3 $ 4 3 , 0 5 3 , 4 7 3 $ 4 3 , 4 7 7 , 7 6 4 $ 4 3 , 9 2 3 , 1 2 5 Feb. 11, 2025 Item #8 Page 212 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Re c y c l e d W a t e r O & M FY E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 CO D E LI N E I T E M ES C A L A T O R FY E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 RE V E N U E S Pr o j e c t i o n ( P r e - Ra t e I n c r e a s e ) Pr o j e c t i o n ( P r e - Ra t e I n c r e a s e ) Pr o j e c t i o n ( P r e - Ra t e I n c r e a s e ) Pr o j e c t i o n ( P r e - Ra t e I n c r e a s e ) Pr o j e c t i o n ( P r e - Ra t e I n c r e a s e ) Pr o j e c t i o n ( P r e - Ra t e I n c r e a s e ) Ch a r g e s f o r S e r v i c e s 51 0 0 C o m m o d i t y U s a g e Cu s t o m e r G r o w t h 7,1 6 8 , 2 3 1 $ 7,5 1 0 , 7 7 3 $ 7,8 5 8 , 8 1 5 $ 8, 2 2 9 , 6 9 0 $ 8, 6 3 2 , 3 3 3 $ 9, 1 0 9 , 6 8 7 $ 51 0 1 W a t e r D e l i v e r y C h a r g e s Cu s t o m e r G r o w t h 1,3 1 6 , 5 1 5 1,3 7 9 , 4 2 6 1,4 4 3 , 3 4 8 1, 5 1 1 , 4 6 2 1, 5 8 5 , 4 1 2 1, 6 7 3 , 0 8 3 51 1 0 N e w A c c t C h a r g e s Gn r l I n f l t n + C s t m r D m n d G r w t h 1,0 0 0 1, 0 5 7 1, 1 0 6 1, 1 3 6 1, 1 6 9 1, 2 1 0 51 1 1 B a c k f l o w D e v i c e Gn r l I n f l t n + C s t m r D m n d G r w t h 18 6 19 7 20 6 21 1 21 7 22 5 51 1 3 Q u i c k T u r n o n F e e s Gn r l I n f l t n + C s t m r D m n d G r w t h - - - - - - 51 1 5 S C H E D U L E D D I S C O N N E T F E E Gn r l I n f l t n + C s t m r D m n d G r w t h - - - - - - 51 2 4 S e r v i c e I n s t a l l a t i o n F e e s Gn r l I n f l t n + C s t m r D m n d G r w t h - - - - - - Ot h e r Ge n e r a l I n f l a t i o n - - - - - - To t a l C h a r g e s f o r S e r v i c e s 8, 4 8 5 , 9 3 2 $ 8, 8 9 1 , 4 5 4 $ 9, 3 0 3 , 4 7 5 $ 9, 7 4 2 , 5 0 0 $ 10 , 2 1 9 , 1 3 1 $ 10 , 7 8 4 , 2 0 5 $ Fi n e s a n d F o r f e i t u r e s 52 2 1 R e c o n n e c t F e e s Ge n e r a l I n f l a t i o n - - $ - $ - $ - $ - $ 52 2 2 R e t u r n C h e c k F e e Ge n e r a l I n f l a t i o n 10 0 10 5 10 9 11 2 11 5 11 8 52 2 5 L a t e C h a r g e s Ge n e r a l I n f l a t i o n 4,1 8 1 4, 3 9 0 4, 5 6 6 4, 6 8 0 4, 7 9 7 4, 9 1 7 52 2 6 D o o r H a n g e r F e e Ge n e r a l I n f l a t i o n 29 30 32 32 33 34 53 4 2 C e l l S i t e L e a s e s Ge n e r a l I n f l a t i o n 74 , 0 0 0 77 , 7 0 0 80 , 8 0 8 82 , 8 2 8 84 , 8 9 9 87 , 0 2 1 Ot h e r F i n e s a n d F o r f e i t u r e s Ge n e r a l I n f l a t i o n - - - - - - To t a l F i n e s a n d F o r f e i t u r e s 78 , 3 1 0 $ 82 , 2 2 6 $ 85 , 5 1 5 $ 87 , 6 5 2 $ 89 , 8 4 4 $ 92 , 0 9 0 $ In c o m e f r o m P r o p e r t y & I n v e s t m e n t s 53 0 0 I n t e r e s t I n c o m e - P o o l e d C a s h [C a l c u l a t e d ] - 10 8 , 3 6 0 $ 96 , 7 0 0 $ 10 6 , 4 5 9 $ 10 7 , 2 1 2 $ 76 , 8 3 2 $ 53 0 5 I n t e r e s t - U n r e a l z d G a i n s / L o s s e s Ge n e r a l I n f l a t i o n - - - - - - 53 1 0 I n t e r e s t I n c o m e F r m O t h r I n v Ge n e r a l I n f l a t i o n - - - - - - 53 1 3 I n t e r e s t I n c o m e - L e a s e s On e T i m e E x p e n s e - - - - - - 53 2 5 G A S B 8 7 L e a s e R e v e n u e On e T i m e E x p e n s e - - - - - - 53 6 0 S a l e o f C a p i t a l A s s e t s Ge n e r a l I n f l a t i o n - - - - - - 53 6 1 D o n a t e d A s s e t s On e T i m e E x p e n s e - - - - - - Ot h e r I n c o m e f r o m P r o p e r t y & I n v e s t m e n t s Ge n e r a l I n f l a t i o n - - - - - - To t a l I n c o m e f r o m P r o p e r t y & I n v e s t m e n t s - $ 10 8 , 3 6 0 $ 96 , 7 0 0 $ 10 6 , 4 5 9 $ 10 7 , 2 1 2 $ 76 , 8 3 2 $ In t e r d e p a r t m e n t a l 54 3 0 E n g L a b o r Ge n e r a l I n f l a t i o n 10 , 0 0 0 10 , 5 0 0 $ 10 , 9 2 0 $ 11 , 1 9 3 $ 11 , 4 7 3 $ 11 , 7 6 0 $ Feb. 11, 2025 Item #8 Page 213 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Re c y c l e d W a t e r O & M FY E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 54 4 2 Re i m b u r s e d W o r k f o r O t h e r D e p t . Ge n e r a l I n f l a t i o n - - - - - - Ot h e r I n t e r d e p a r t m e n t a l Ge n e r a l I n f l a t i o n - - - - - - To t a l I n t e r d e p a r t m e n t a l 10 , 0 0 0 $ 10 , 5 0 0 $ 10 , 9 2 0 $ 11 , 1 9 3 $ 11 , 4 7 3 $ 11 , 7 6 0 $ Ot h e r R e v e n u e s 55 5 0 P r i o r Y e a r F e e R e f u n d s Ge n e r a l I n f l a t i o n - - $ - $ - $ - $ - $ 56 3 9 M i s c R e i m b u r s e m e n t E x p . Ge n e r a l I n f l a t i o n - - - - - - 56 7 4 M i s c R e v e n u e s Ge n e r a l I n f l a t i o n - - - - - - 56 6 4 M i s c A R W r i t e O f f s Ge n e r a l I n f l a t i o n - - - - - - Ot h e r O t h e r R e v e n u e s Ge n e r a l I n f l a t i o n - - - - - - 40 1 2 P r o p e r t y T a x e s - C u r r e n t Pr o p e r t y T a x I n c r e a s e - 80 1 , 8 6 4 82 5 , 5 1 9 85 2 , 1 0 1 88 0 , 3 9 1 90 6 , 7 1 5 40 1 5 R e f u n d s - C u r r e n t T a x e s Pr o p e r t y T a x I n c r e a s e - - - - - 40 1 6 S u p p l e m e n t a l P r o p e r t y T a x e s Pr o p e r t y T a x I n c r e a s e 16 , 6 2 0 17 , 1 1 0 17 , 6 6 1 18 , 2 4 8 18 , 7 9 3 40 1 8 R e f u n d s - S u p p l e m e n t a l T a x e s Pr o p e r t y T a x I n c r e a s e - - - - - 40 2 0 U n i t a r y T a x ( c o m b i n e w / 4 0 1 1 ) Pr o p e r t y T a x I n c r e a s e 13 , 6 8 7 14 , 0 9 1 14 , 5 4 5 15 , 0 2 7 15 , 4 7 7 40 2 1 P r i o r Y e a r s P r o p e r t y T a x e s Pr o p e r t y T a x I n c r e a s e 11 , 1 4 5 11 , 4 7 4 11 , 8 4 3 12 , 2 3 7 12 , 6 0 2 40 2 7 R e f u n d s - P r i o r Y e a r T a x e s Pr o p e r t y T a x I n c r e a s e (4 , 8 8 8 ) (5 , 0 3 2 ) (5 , 1 9 4 ) (5 , 3 6 7 ) (5 , 5 2 7 ) 41 1 1 S u r p l u s P r o p e r t y T a x I n c r e m e n t Pr o p e r t y T a x I n c r e a s e - - - - - 0 S a l e s a n d U s e t a x Pr o p e r t y T a x I n c r e a s e - - - - - 0 O t h e r T a x R e v e n u e s Pr o p e r t y T a x I n c r e a s e - - - - - To t a l O t h e r R e v e n u e s - $ 83 8 , 4 2 8 $ 86 3 , 1 6 2 $ 89 0 , 9 5 6 $ 92 0 , 5 3 6 $ 94 8 , 0 6 0 $ Ot h e r F i n a n c i n g S o u r c e s 59 0 0 T r a n s f e r s I n No A n n u a l I n c r e a s e - - $ - $ - $ - $ - $ Ot h e r O t h e r F i n a n c i n g S o u r c e s Ge n e r a l I n f l a t i o n - - - - - - To t a l O t h e r F i n a n c i n g S o u r c e s - $ - $ - $ - $ - $ - $ TO T A L R E V E N U E S 8, 5 7 4 , 2 4 2 $ 9, 9 3 0 , 9 6 8 $ 10 , 3 5 9 , 7 7 2 $ 10 , 8 3 8 , 7 6 0 $ 11 , 3 4 8 , 1 9 5 $ 11 , 9 1 2 , 9 4 6 $ Feb. 11, 2025 Item #8 Page 214 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Re c y c l e d W a t e r O & M FY E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 EX P E N D I T U R E S Pr o j e c t i o n ( P r e - Ra t e I n c r e a s e ) Pr o j e c t i o n ( P r e - Ra t e I n c r e a s e ) Pr o j e c t i o n ( P r e - Ra t e I n c r e a s e ) Pr o j e c t i o n ( P r e - Ra t e I n c r e a s e ) Pr o j e c t i o n ( P r e - Ra t e I n c r e a s e ) Pr o j e c t i o n ( P r e - Ra t e I n c r e a s e ) Pe r s o n n e l 61 0 0 R e g S a l a r i e s La b o r I n f l a t i o n 1, 2 2 2 , 8 6 9 $ 1,1 2 3 , 9 4 6 $ 1, 1 6 8 , 9 0 4 $ 1, 2 0 3 , 9 7 1 $ 1, 2 4 0 , 0 9 0 $ 1, 2 7 7 , 2 9 3 $ 61 0 1 I n c e n t i v e P a y La b o r I n f l a t i o n - - - - - - 61 3 5 H a z a r d P a y La b o r I n f l a t i o n - 6, 9 1 9 7, 1 9 6 7, 4 1 2 7, 6 3 4 7, 8 6 3 61 4 0 O t h e r P e r s o n n e l La b o r I n f l a t i o n - - - - - - 61 5 0 I O D W o r k e r ' s C o m p La b o r I n f l a t i o n - - - - - - 62 0 0 O v e r t i m e S a l a r i e s La b o r I n f l a t i o n 33 , 6 8 5 40 , 0 0 0 41 , 6 0 0 42 , 8 4 8 44 , 1 3 3 45 , 4 5 7 62 1 0 S t a n d b y P a y La b o r I n f l a t i o n 4, 1 7 2 4, 2 1 0 4, 3 7 8 4, 5 1 0 4, 6 4 5 4, 7 8 4 63 0 0 P a r t t i m e s S a l a r i e s La b o r I n f l a t i o n 48 , 4 8 0 10 2 , 8 1 7 10 6 , 9 3 0 11 0 , 1 3 8 11 3 , 4 4 2 11 6 , 8 4 5 63 0 5 I n t e r n S a l a r i e s La b o r I n f l a t i o n 1, 8 2 3 1, 8 2 3 1, 8 9 6 1, 9 5 3 2, 0 1 1 2, 0 7 2 63 1 0 E l e c t e d O f f i c i a l s ' S a l a r i e s La b o r I n f l a t i o n - - - - - - 64 0 5 R e t i r e d A n n u i t a n t P r o j e c t s La b o r I n f l a t i o n 42 , 8 4 8 30 , 0 0 0 31 , 2 0 0 32 , 1 3 6 33 , 1 0 0 34 , 0 9 3 66 2 0 M g t P h y s i c a l s La b o r I n f l a t i o n - - - - - - 64 0 0 T e m p r o a r y H e l p La b o r I n f l a t i o n - - - - - - 65 0 1 H e a l t h I n s u r a n c e La b o r - H e a l t h I n s u r a n c e 18 8 , 3 8 1 17 5 , 5 1 1 18 6 , 7 0 9 19 8 , 1 5 4 20 9 , 8 4 5 22 1 , 8 0 6 65 1 0 L i f e I n s u r a n c e La b o r I n f l a t i o n 95 3 84 5 87 9 90 5 93 2 96 0 65 1 1 A D & D - C i t y P a i d La b o r I n f l a t i o n 48 4 42 2 43 9 45 2 46 6 48 0 65 2 0 V i s i o n I n s u r a n c e La b o r I n f l a t i o n - - - - - - 65 3 0 M e d i c a r e La b o r I n f l a t i o n 19 , 6 3 2 17 , 3 2 1 18 , 0 1 4 18 , 5 5 4 19 , 1 1 1 19 , 6 8 4 66 2 9 C e l l P h o n e A l l o w a n c e La b o r I n f l a t i o n - - - - - - 66 3 0 A u t o A l l o w a n c e La b o r I n f l a t i o n 48 8 48 8 50 8 52 3 53 8 55 5 66 4 0 E a r n e d L e a v e A c c r u a l La b o r I n f l a t i o n - - - - - - 66 5 1 H e a l t h y E m p A w a r d s La b o r I n f l a t i o n - - - - - - 66 5 3 F i n a l V a c a t i o n P a y La b o r I n f l a t i o n - - - - - - 66 5 4 F i n a l S i c k L e a v e P a y La b o r I n f l a t i o n - - - - - - 66 5 5 D i s a b i l i t y La b o r I n f l a t i o n 11 , 0 4 7 6, 7 6 3 7, 0 3 4 7, 2 4 5 7, 4 6 2 7, 6 8 6 66 5 6 U n e m p l o y m e n t La b o r I n f l a t i o n 6, 4 4 3 5, 9 0 1 6, 1 3 7 6, 3 2 1 6, 5 1 1 6, 7 0 6 66 5 7 W o r k e r ' s C o m p e n s a t i o n La b o r I n f l a t i o n 26 , 0 3 0 27 , 6 3 0 28 , 7 3 5 29 , 5 9 7 30 , 4 8 5 31 , 4 0 0 67 2 0 P E R S La b o r - P E R S ( N o r m a l C o s t ) 14 7 , 6 2 0 14 2 , 1 5 3 15 4 , 2 9 5 15 8 , 9 2 4 16 3 , 6 9 2 16 8 , 6 0 3 67 2 2 O P E B E x p e n s e On e T i m e E x p e n s e - - - - - - 67 2 3 P E R S U n f u n d e d L i a b i l i t y E x p La b o r - P E R S ( N o r m a l C o s t ) 15 7 , 7 0 7 12 2 , 6 1 5 19 8 , 1 2 9 20 2 , 1 4 7 20 6 , 2 2 7 21 0 , 3 7 0 67 3 0 S o c i a l S e c u r i t y La b o r I n f l a t i o n - - - - - - 67 4 0 D e f f e r e d C o m p La b o r I n f l a t i o n 1, 8 8 6 1, 9 3 6 2, 0 1 3 2, 0 7 4 2, 1 3 6 2, 2 0 0 67 4 1 D e f C o m p M a t c h La b o r I n f l a t i o n - - - - - - Ot h e r P e r s o n n e l La b o r I n f l a t i o n - - - - - - To t a l P e r s o n n e l C o s t s 1, 9 1 4 , 5 4 8 $ 1, 8 1 1 , 3 0 0 $ 1, 9 6 4 , 9 9 5 $ 2, 0 2 7 , 8 6 2 $ 2, 0 9 2 , 4 6 1 $ 2, 1 5 8 , 8 5 7 $ Feb. 11, 2025 Item #8 Page 215 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Re c y c l e d W a t e r O & M FY E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 Feb. 11, 2025 Item #8 Page 216 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Re c y c l e d W a t e r O & M FY E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 Ma i n t e n a n c e & E q u i p m e n t 71 1 0 O f f i c e E q u p R e n t a l Ge n e r a l I n f l a t i o n - $ - - $ - $ - $ - $ 71 1 1 O t h e r M a c h & E q u i p Ge n e r a l I n f l a t i o n - - - - - - 71 1 9 M i s c R e n t a l s Ge n e r a l I n f l a t i o n 50 0 50 0 52 5 54 6 56 0 57 4 71 2 0 M i s c L e a s e s Ge n e r a l I n f l a t i o n - - - - - - 72 1 0 O f f i c e E q u i p M a i n t e n a n c e Ge n e r a l I n f l a t i o n - - - - - - 72 1 1 C o m m u n i c a t i o n E q u i p M a i n t e n a n c e Ge n e r a l I n f l a t i o n - - - - - - 72 1 5 S o f t w a r e M a i n t e n a n c e Ge n e r a l I n f l a t i o n 24 6 - - - - - 72 1 6 C o m p u t e r M a i n t e n a n c e Ge n e r a l I n f l a t i o n - - 72 2 0 V e h i c l e M a i n t Ge n e r a l I n f l a t i o n - - - - - - 72 2 1 W a s h a n d W a x Ge n e r a l I n f l a t i o n 2,1 2 5 1, 5 0 0 1, 5 7 5 1, 6 3 8 1, 6 7 9 1, 7 2 1 72 2 2 O t h e r E q u i p M a i n t e n a n c e Ge n e r a l I n f l a t i o n 50 0 50 0 52 5 54 6 56 0 57 4 72 2 5 C a r W a s h R e p a i r s Ge n e r a l I n f l a t i o n - - 72 2 6 P i p e l i n e M a i n t e n a n c e Ge n e r a l I n f l a t i o n 63 , 2 5 0 10 , 0 0 0 10 , 5 0 0 10 , 9 2 0 11 , 1 9 3 11 , 4 7 3 72 2 7 F I R E H Y D R A N T M A I N T - C I T Y Ge n e r a l I n f l a t i o n 5,0 0 0 5, 0 0 0 5, 2 5 0 5, 4 6 0 5, 5 9 7 5, 7 3 6 72 3 0 R o u t i n e B u i l d i n g M a i n t e a n c e Ge n e r a l I n f l a t i o n 1,0 0 0 1, 0 0 0 1, 0 5 0 1, 0 9 2 1, 1 1 9 1, 1 4 7 72 4 1 A s p h a l t R e p a i r s Ge n e r a l I n f l a t i o n 1,0 0 0 1, 5 0 0 1, 5 7 5 1, 6 3 8 1, 6 7 9 1, 7 2 1 72 4 9 M a i n t e n a n c e , R e p a i r a n d R e h a b Ge n e r a l I n f l a t i o n 3,2 4 3 3, 2 4 3 3, 4 0 5 3, 5 4 1 3, 6 3 0 3, 7 2 1 74 0 0 A u d i t Ge n e r a l I n f l a t i o n - - - - - - 74 1 0 L e g a l Ge n e r a l I n f l a t i o n - - - - - - 74 3 5 A d m i n i s t r a t i v e Ge n e r a l I n f l a t i o n - - - - - - 74 8 0 C l a i m s A d m i n Ge n e r a l I n f l a t i o n - - - - - - 74 9 0 M i s c P r o f e s s i o n a l S e r v i c e s Ge n e r a l I n f l a t i o n 28 5 , 5 6 5 27 5 , 8 8 2 28 9 , 6 7 6 30 1 , 2 6 3 30 8 , 7 9 5 31 6 , 5 1 5 75 0 0 E n c i n a S e r v i c e s Ge n e r a l I n f l a t i o n 1, 5 7 5 , 0 0 0 2,0 0 0 , 0 0 0 $1 , 9 2 6 , 0 4 4 1, 8 6 2 , 3 1 7 1, 9 0 8 , 8 7 5 1, 9 5 6 , 5 9 7 En c i n a S e r v i c e s ( P e n s i o n P a y o f f ) No A n n u a l I n c r e a s e (7 1 , 7 7 8 ) (7 3 , 7 0 4 ) (7 5 , 8 2 3 ) (7 8 , 0 0 2 ) (8 0 , 2 4 5 ) (8 2 , 5 5 2 ) 75 1 0 C i t y G e n e r a t e d Ge n e r a l I n f l a t i o n - - - - - - 75 1 1 C i t i z e n G e n e r a t e d Ge n e r a l I n f l a t i o n - - - - - - 75 5 0 M i s c e l l a n e o u s O u t s i d e S e r v i c e s Ge n e r a l I n f l a t i o n 17 3 , 8 3 3 13 8 , 0 2 5 14 4 , 9 2 6 15 0 , 7 2 3 15 4 , 4 9 1 15 8 , 3 5 4 75 5 1 B a n k S e r v i c e s Ge n e r a l I n f l a t i o n 1,5 6 0 1, 5 6 0 1, 6 3 8 1, 7 0 4 1, 7 4 6 1, 7 9 0 75 5 2 B o o k B i n d i n g Ge n e r a l I n f l a t i o n - - - - - - 75 5 4 R e g u l a t o r y / P e r m i t t i n g F e e s Ge n e r a l I n f l a t i o n 30 , 0 0 0 16 , 0 3 0 16 , 8 3 2 17 , 5 0 5 17 , 9 4 2 18 , 3 9 1 75 5 6 M i s c S e r v i c e s Ge n e r a l I n f l a t i o n - - - - - - 75 5 7 M W D / C W A F i x e d C h a r g e s Ge n e r a l I n f l a t i o n - - - - - - 75 5 8 L a u n d r y a n d U n i f o r m M a i n t e a n c e Ge n e r a l I n f l a t i o n 3,0 0 0 3, 0 0 0 3, 1 5 0 3, 2 7 6 3, 3 5 8 3, 4 4 2 75 5 9 E l e c t r i c a l / S C A D A s e r v i c e s Ge n e r a l I n f l a t i o n 40 , 4 4 9 34 , 4 0 0 36 , 1 2 0 37 , 5 6 5 38 , 5 0 4 39 , 4 6 7 75 6 4 L a n d s c a p i n g S e r v i c e s Ge n e r a l I n f l a t i o n 22 , 0 0 0 48 , 9 6 7 51 , 4 1 5 53 , 4 7 2 54 , 8 0 8 56 , 1 7 9 77 1 0 A d s a n d P u b l i s h i n g Ge n e r a l I n f l a t i o n - - - - - - 77 1 1 D u e s a n d S u b s c r i p t i o n s Ge n e r a l I n f l a t i o n 11 , 4 0 3 6, 0 0 0 6, 3 0 0 6, 5 5 2 6, 7 1 6 6, 8 8 4 77 1 2 B o o k s a n d P u b l i c a t i o n s Ge n e r a l I n f l a t i o n 50 0 50 0 52 5 54 6 56 0 57 4 Feb. 11, 2025 Item #8 Page 217 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Re c y c l e d W a t e r O & M FY E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 77 1 3 Au d i o - V i s u a l M a t e r i a l s Ge n e r a l I n f l a t i o n - - - - - - 77 1 5 P r i n t i n g Ge n e r a l I n f l a t i o n 4,0 0 0 4, 0 0 0 4, 2 0 0 4, 3 6 8 4, 4 7 7 4, 5 8 9 77 2 0 P o s t a g e Ge n e r a l I n f l a t i o n 1,0 0 0 1, 0 0 0 1, 0 5 0 1, 0 9 2 1, 1 1 9 1, 1 4 7 77 2 5 O f f i c e S u p p l i e s Ge n e r a l I n f l a t i o n 1,0 0 0 1, 0 0 0 1, 0 5 0 1, 0 9 2 1, 1 1 9 1, 1 4 7 77 2 6 O f f i c e F u r n i t u r e & E q u i p m e n t Ge n e r a l I n f l a t i o n 2,5 0 0 2, 5 0 0 2, 6 2 5 2, 7 3 0 2, 7 9 8 2, 8 6 8 77 3 0 C o m p u t e r S o f t w a r e Ge n e r a l I n f l a t i o n 5,0 0 0 5, 0 0 0 5, 2 5 0 5, 4 6 0 5, 5 9 7 5, 7 3 6 77 3 1 M i s c . C o m p u t e r H a r d w a r e Ge n e r a l I n f l a t i o n 2,0 0 0 3, 0 0 0 3, 1 5 0 3, 2 7 6 3, 3 5 8 3, 4 4 2 77 3 5 P r o m o M a t e r i a l s Ge n e r a l I n f l a t i o n 1,0 0 0 1, 0 0 0 1, 0 5 0 1, 0 9 2 1, 1 1 9 1, 1 4 7 77 4 1 P r e s c h o o l Ge n e r a l I n f l a t i o n - - - - - - 77 5 0 H e a t a n d L i g h t Ut i l i t i e s I n f l a t i o n 32 9 , 4 0 0 36 2 , 3 4 0 38 7 , 7 0 4 40 7 , 0 8 9 42 7 , 4 4 3 44 8 , 8 1 6 77 5 1 T e l e p h o n e & C o m m u n i c a t i o n s Ut i l i t i e s I n f l a t i o n 90 0 90 0 96 3 1, 0 1 1 1, 0 6 2 1, 1 1 5 77 5 2 W a s t e D i s p o a l S e r v i c e s Ut i l i t i e s I n f l a t i o n - - - - - - 77 5 3 W a t e r Ut i l i t i e s I n f l a t i o n 4, 5 0 0 4, 5 0 0 4, 8 1 5 5, 0 5 6 5, 3 0 9 5, 5 7 4 78 0 1 B u i l d i n g M a i n t e n a n c e Ge n e r a l I n f l a t i o n - - - - - - 78 1 0 E l e c t r i c a l S u p p l i e s Ge n e r a l I n f l a t i o n 50 0 50 0 52 5 54 6 56 0 57 4 78 1 1 J a n i t o r i a l S u p p l i e s Ge n e r a l I n f l a t i o n - - - - - - 78 2 0 P a r t s - V e h i c l e s Ge n e r a l I n f l a t i o n - - 78 2 1 P a r t s - E q u i p Ge n e r a l I n f l a t i o n 67 , 5 0 0 61 , 4 3 6 64 , 5 0 8 67 , 0 8 8 68 , 7 6 5 70 , 4 8 4 78 3 0 R o c k a n d M i n e r a l P r o d u c t s Ge n e r a l I n f l a t i o n 1,0 0 0 1, 0 0 0 1, 0 5 0 1, 0 9 2 1, 1 1 9 1, 1 4 7 78 3 1 A s p h a l t Ge n e r a l I n f l a t i o n 1,0 0 0 1, 0 0 0 1, 0 5 0 1, 0 9 2 1, 1 1 9 1, 1 4 7 78 5 0 S m a l l T o o l s Ge n e r a l I n f l a t i o n 60 0 60 0 63 0 65 5 67 2 68 8 78 5 1 S a f e t y E q u i p m e n t Ge n e r a l I n f l a t i o n 17 , 0 5 0 17 , 0 5 0 17 , 9 0 3 18 , 6 1 9 19 , 0 8 4 19 , 5 6 1 78 5 2 U n i f o r m s a n d A c c e s s o r i e s Ge n e r a l I n f l a t i o n 3,0 0 0 3, 0 0 0 3, 1 5 0 3, 2 7 6 3, 3 5 8 3, 4 4 2 78 5 3 M e t e r s / F i t t i n g s - N e w Ge n e r a l I n f l a t i o n 19 , 3 0 0 20 , 0 0 0 21 , 0 0 0 21 , 8 4 0 22 , 3 8 6 22 , 9 4 6 78 6 3 M e t e r s / F i t t i n g s - R e p l a c e m e n t Ge n e r a l I n f l a t i o n 20 , 0 0 0 20 , 0 0 0 21 , 0 0 0 21 , 8 4 0 78 5 5 F i r e H o s e a n d A p p l i a n c e s Ge n e r a l I n f l a t i o n - - - - - - 78 5 6 R e s c u e E q u i p m e n t Ge n e r a l I n f l a t i o n - - - - - - 78 5 7 P e r s o n a l P r o t e c t i v e E q u i p m e n t Ge n e r a l I n f l a t i o n - - - - - - 78 5 8 B r e a t h i n g A p p a r a t u s E q u i p m e n t Ge n e r a l I n f l a t i o n - - - - - - 78 6 0 S h o o t i n g R a n g e S u p p l i e s Ge n e r a l I n f l a t i o n - - - - - - 78 8 0 G a s o l i n e a n d O i l Ut i l i t i e s I n f l a t i o n - - - - - - 78 8 3 C h e m i c a l s Ge n e r a l I n f l a t i o n - - - - - - Feb. 11, 2025 Item #8 Page 218 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Re c y c l e d W a t e r O & M FY E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 78 9 0 CM W D P u r c W a t e r - O u t s i d e A g e n c y [ C a l c u l a t e d ] 2,7 6 1 , 9 2 4 2,8 5 0 , 0 0 0 2, 9 3 5 , 5 0 0 3, 9 2 5 , 8 0 0 4, 1 2 2 , 9 0 0 4, 3 2 9 , 0 4 5 78 9 1 C M W D P u r c h W a t e r - F r o m C i t y Ut i l i t i e s I n f l a t i o n 18 , 0 0 0 18 , 0 0 0 18 , 9 0 0 19 , 8 4 5 20 , 8 3 7 21 , 8 7 9 78 9 9 M i s c S u p p l i e s Ge n e r a l I n f l a t i o n 7,0 0 0 7, 0 0 0 7, 2 8 0 7, 4 6 2 7, 6 4 9 7, 8 4 0 81 1 0 E m p l o y e e T r a i n i n g Ge n e r a l I n f l a t i o n 75 0 75 0 78 0 80 0 81 9 84 0 81 2 0 T u i t i o n R e i m b u r s e m e n t Ge n e r a l I n f l a t i o n - - - - - - 81 3 0 T r a i n i n g / T r a i n i n g R e l a t e d T r a v e l Ge n e r a l I n f l a t i o n 6,6 7 0 6, 0 3 0 6, 2 7 1 6, 4 2 8 6, 5 8 9 6, 7 5 3 85 0 0 D e p r e c i a t i o n De p r e c i a t i o n F u n d i n g 1, 5 0 0 , 0 0 0 1,5 0 0 , 0 0 0 1, 5 1 7 , 4 0 0 1, 5 3 4 , 8 5 0 1, 5 5 2 , 5 0 1 1, 5 7 0 , 3 5 5 De p r e c i a t i o n - P h a s e I I I E x p a n s i o n Co n s t r u c t i o n I n f l a t i o n - - - - - - 85 1 0 P r o p T a x e s P D Ge n e r a l I n f l a t i o n - - - - - - 85 2 0 C o n f e r e n c e / M e e t i n g T r a v e l Ge n e r a l I n f l a t i o n 2,5 0 0 1, 3 3 5 1, 3 8 8 1, 4 2 3 1, 4 5 9 1, 4 9 5 85 2 2 M i s c . M e a l s / M i l e s Ge n e r a l I n f l a t i o n 4,5 0 0 2, 2 9 6 2, 3 8 7 2, 4 4 7 2, 5 0 8 2, 5 7 1 85 3 0 B a d D e b t E x p - O t h e r I n v / B i l l s Ge n e r a l I n f l a t i o n 7,0 0 0 7, 0 0 0 7, 2 8 0 7, 4 6 2 7, 6 4 9 7, 8 4 0 85 3 4 R e g O v e r / S h o r t Ge n e r a l I n f l a t i o n - - - - - - 86 1 0 S e t t l e m e n t s Ge n e r a l I n f l a t i o n - - - - - - 86 1 2 P r i o r P e r i o d A d j u s t m e n t On e T i m e E x p e n s e - - - - - - 86 1 4 R e p a y m e n t s Ge n e r a l I n f l a t i o n - - - - - - 86 1 5 I n t e r e s t o n D e p o s i t Ge n e r a l I n f l a t i o n - - - - - - 86 9 9 M i s c E x p e n d i t u r e s Ge n e r a l I n f l a t i o n - - - - - - 87 0 0 C o n t i n g e n c i e s Ge n e r a l I n f l a t i o n - - - - - - 88 0 9 V e h i c l e D i r e c t C h a r g e s Ge n e r a l I n f l a t i o n - - 88 1 0 V e h i c l e M a i n t e a n c e Ge n e r a l I n f l a t i o n 24 , 4 8 4 47 , 5 9 8 49 , 5 0 2 50 , 7 3 9 52 , 0 0 8 53 , 3 0 8 88 1 1 V e h i c l e R e p l a c e m e n t Ge n e r a l I n f l a t i o n 26 , 0 9 8 29 , 4 0 4 30 , 5 8 0 31 , 3 4 5 32 , 1 2 8 32 , 9 3 2 88 2 0 S t r e e t L i g h t i n g Ge n e r a l I n f l a t i o n - - - - - - 88 2 2 M e d i a n M a i n t e n a c e Ge n e r a l I n f l a t i o n - - - - - - 88 3 0 G e n e r a l L i a b Ge n e r a l I n f l a t i o n 10 0 , 7 2 0 22 1 , 5 0 0 23 0 , 3 6 0 23 6 , 1 1 9 24 2 , 0 2 2 24 8 , 0 7 3 88 5 5 R e c o r d s M a n a g e m e n t I n t e r d e p t Ge n e r a l I n f l a t i o n - - - - - - 88 6 0 I n f o r m a t i o n T e c h n o l o g i e s Ge n e r a l I n f l a t i o n 17 8 , 7 5 0 23 5 , 3 8 9 24 4 , 8 0 5 25 0 , 9 2 5 25 7 , 1 9 8 26 3 , 6 2 8 88 9 0 M i s c I n t e r d e p a r t m e n t a l C h a r g e s Ge n e r a l I n f l a t i o n 60 6 , 8 5 3 63 4 , 1 1 2 65 9 , 4 7 6 67 5 , 9 6 3 69 2 , 8 6 2 71 0 , 1 8 4 88 9 1 M i s C h g B a c k Ge n e r a l I n f l a t i o n - - - - - - 88 9 2 U t i l i t y B i l l i n g C h a r g e b a c k Ge n e r a l I n f l a t i o n - - - - - - 89 1 0 F i s c a l A g e n t F e e s Ge n e r a l I n f l a t i o n - - - - - - 89 1 1 A r b i t r a g e C o s t s Ge n e r a l I n f l a t i o n - - - - - - 89 2 0 P r i n c i p a l [ C a l c u l a t e d ] 1, 6 9 8 , 1 4 6 2, 0 2 9 , 5 3 0 2, 1 5 9 , 9 0 0 1, 6 9 6 , 6 8 9 1, 7 2 8 , 9 3 1 53 2 , 2 2 3 89 2 1 I n t e r e s t E x p e n s e [ C a l c u l a t e d ] 17 8 , 3 3 6 23 9 , 3 4 5 22 5 , 2 1 9 22 7 , 7 2 7 19 5 , 4 8 6 16 2 , 5 7 1 89 2 2 I n t E x p - C a p i t a l i z e d I n t e r e s t On e T i m e E x p e n s e - - - - - - Ot h e r Ge n e r a l I n f l a t i o n - - - - - - Me t e r R e p l a c e m e n t s Ge n e r a l I n f l a t i o n - - - 6, 0 0 0 6, 1 5 0 6, 3 0 4 Ad d i t i o n a l M a i n t e n a n c e & E q u i p m e n t [ C a l c u l a t e d B e l o w ] - (4 0 6 , 2 4 0 ) (1 9 9 , 1 6 0 ) (2 2 2 , 4 4 1 ) (2 3 0 , 2 0 4 ) (2 3 8 , 7 5 3 ) To t a l M a i n t e n a n c e & E q u i p m e n t C o s t s 9, 7 5 1 , 3 7 7 $ 10 , 4 0 6 , 7 7 7 $ 10 , 8 6 5 , 7 4 9 $ 11 , 4 1 0 , 1 9 9 $ 11 , 7 1 1 , 5 2 2 $ 10 , 8 1 6 , 9 6 2 $ Feb. 11, 2025 Item #8 Page 219 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Re c y c l e d W a t e r O & M FY E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 Ca p i t a l O u t l a y 90 0 6 N o n - B u d g e t e d C a p E q u i p < $ 1 0 K Ge n e r a l I n f l a t i o n - $ - - $ - $ - $ - $ 90 0 5 C a p i t a l O u t l a y < $ 1 0 K N e w Ge n e r a l I n f l a t i o n 4,0 0 0 1, 1 5 0 1, 1 9 6 1, 2 2 6 1, 2 5 7 1, 2 8 8 90 1 0 C a p O u t l a y - V e h i c l e s Ge n e r a l I n f l a t i o n 7,4 0 0 8, 2 1 7 8, 5 4 6 8, 7 5 9 8, 9 7 8 9, 2 0 3 90 2 0 C o m p u t e r E q u i p > $ 1 0 K - R e p l Ge n e r a l I n f l a t i o n - - - - - - 90 2 1 O f f i c e E q u i p m e n t Ge n e r a l I n f l a t i o n - - - - - - 90 2 2 O t h e r E q u i p m e n t Ge n e r a l I n f l a t i o n - - - - - - 90 5 0 C a p i t a l i z e d A s s e t s On e T i m e E x p e n s e - - - - - - 90 6 0 C a p i t a l P r o j e c t s On e T i m e E x p e n s e - - - - - - Ot h e r C a p i t a l O u t l a y Ge n e r a l I n f l a t i o n - - - - - - To t a l C a p i t a l O u t l a y C o s t s 11 , 4 0 0 $ 9, 3 6 7 $ 9, 7 4 2 $ 9, 9 8 5 $ 10 , 2 3 5 $ 10 , 4 9 1 $ Ot h e r F i n a n c i n g U s e s 99 9 9 T r a n s f e r s O u t On e T i m e E x p e n s e 1, 0 0 0 , 0 0 0 $ - - $ - $ - $ - $ Ot h e r O t h e r F i n a n c i n g U s e s Ge n e r a l I n f l a t i o n - - - - - - To t a l O t h e r F i n a n c i n g U s e s C o s t s 1, 0 0 0 , 0 0 0 $ - $ - $ - $ - $ - $ TO T A L E X P E N D I T U R E S 12 , 6 7 7 , 3 2 5 $ 12 , 2 2 7 , 4 4 4 $ 12 , 8 4 0 , 4 8 6 $ 13 , 4 4 8 , 0 4 6 $ 13 , 8 1 4 , 2 1 8 $ 12 , 9 8 6 , 3 0 9 $ RA T E R E V E N U E S w i t h o u t I N C R E A S E S FY E 2 0 2 3 F Y E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 Co m m o d i t y U s a g e Cu s t o m e r G r o w t h 6, 3 3 7 , 4 5 8 $ 6,3 8 4 , 9 0 4 $ 7,8 5 8 , 8 1 5 $ 7, 8 7 5 , 3 0 1 $ 7, 9 0 4 , 8 8 6 $ 7, 9 8 2 , 7 8 8 $ Wa t e r D e l i v e r y C h a r g e s Cu s t o m e r G r o w t h 1, 2 0 8 , 8 1 7 1,2 1 7 , 8 6 8 1,4 4 3 , 3 4 8 $ 1, 4 4 6 , 3 7 6 1, 4 5 1 , 8 0 9 1, 4 6 6 , 1 1 7 To t a l R a t e R e v e n u e s W i t h o u t I n c r e a s e s 7, 5 4 6 , 2 7 5 $ 7, 6 0 2 , 7 7 2 $ 9, 3 0 2 , 1 6 3 $ 9, 3 2 1 , 6 7 7 $ 9, 3 5 6 , 6 9 5 $ 9, 4 4 8 , 9 0 5 $ Feb. 11, 2025 Item #8 Page 220 of 265 2025 POTABLE AND RECYCLED WATER RATE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT POTABLE AND RECYCLED WATER COST-OF-SERVICE STUDY APPENDIX E REVENUE REQUIREMENT ANALYSIS Feb. 11, 2025 Item #8 Page 221 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Po t a b l e W a t e r R e v e n u e R e q u i r e m e n t FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 CA S H F L O W T E S T S RE V E N U E S Co m m o d i t y C h a r g e s 29 , 1 7 0 , 2 3 9 $ 6, 7 3 5 , 9 4 3 $ 7, 4 8 6 , 6 3 2 $ 8, 2 6 6 , 2 3 3 $ 9, 1 8 2 , 4 6 6 $ 9, 9 7 2 , 2 6 5 $ De l i v e r y C h a r g e s 13 , 3 7 3 , 0 0 2 7, 4 9 2 , 8 1 7 8, 3 2 7 , 8 5 7 9, 1 9 5 , 0 5 6 10 , 2 1 4 , 2 4 0 11 , 0 9 2 , 7 8 4 SD C W A V a r i a b l e P a s s - T h r o u g h s 23 , 5 9 4 , 9 3 6 26 , 8 6 8 , 4 5 9 29 , 4 9 1 , 7 8 8 30 , 9 4 7 , 5 7 0 32 , 3 9 5 , 1 4 0 SD C W A F i x e d P a s s - T h r o u g h s 8, 0 0 0 , 7 1 8 9, 5 1 7 , 2 0 6 10 , 4 3 1 , 8 7 3 10 , 8 7 4 , 3 3 0 11 , 2 7 8 , 0 8 5 No n - R a t e C h a r g e s f o r S e r v i c e s 36 0 , 6 0 3 41 0 , 1 6 8 45 5 , 6 4 0 46 9 , 1 6 8 48 5 , 5 3 1 50 2 , 6 2 5 De v e l o p e r F e e s - - - - - - Ta x R e v e n u e s 3, 5 7 4 , 3 5 2 3, 6 7 9 , 7 9 6 3, 7 9 8 , 2 8 5 3, 9 2 4 , 3 8 8 4, 0 4 1 , 7 2 8 4, 1 6 5 , 8 0 9 Lic e n s e s a n d P e r m i t s - - - - - - In t e r g o v e r n m e n t a l 24 , 1 5 0 25 , 1 1 6 25 , 7 4 4 26 , 3 8 7 27 , 0 4 7 27 , 7 2 3 Fi n e s & F o r f e i t u r e s 16 9 , 8 3 8 17 6 , 6 3 1 18 1 , 0 4 7 18 5 , 5 7 3 19 0 , 2 1 2 19 4 , 9 6 8 In c o m e f r o m P r o p & I n v e s t m e n t s 2, 8 2 5 , 7 5 4 2, 4 5 6 , 9 7 6 1, 9 0 1 , 8 7 3 1, 7 0 3 , 8 5 1 1, 5 7 1 , 9 7 6 1, 4 3 5 , 9 2 5 In t e r d e p a r t m e n t a l 46 , 2 0 0 48 , 0 4 8 49 , 2 4 9 50 , 4 8 0 51 , 7 4 2 53 , 0 3 6 Ot h e r R e v e n u e s 94 , 5 0 0 98 , 2 8 0 10 0 , 7 3 7 10 3 , 2 5 5 10 5 , 8 3 7 10 8 , 4 8 3 Ot h e r F i n a n c i n g S o u r c e s - - - - - - TO T A L R E V E N U E S 49 , 6 3 8 , 6 3 8 $ 52 , 7 1 9 , 4 2 9 $ 58 , 7 1 2 , 7 2 8 $ 63 , 8 4 8 , 0 5 3 $ 67 , 6 9 2 , 6 7 9 $ 71 , 2 2 6 , 8 4 2 $ Feb. 11, 2025 Item #8 Page 222 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Po t a b l e W a t e r R e v e n u e R e q u i r e m e n t FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 EX P E N D I T U R E S On g o i n g O p e r a t i n g E x p e n s e s Pe r s o n n e l 4, 7 8 2 , 7 7 9 $ 5, 1 8 5 , 6 6 0 $ 5, 3 5 6 , 0 2 7 $ 5, 5 3 1 , 0 1 6 $ 5, 7 1 0 , 8 1 9 $ 5, 8 9 6 , 9 5 5 $ Ma i n t e n a n c e & E q u i p m e n t ( w / o d e p r e c i a t i o n ) 43 , 6 4 1 , 7 5 4 48 , 1 5 2 , 9 9 4 54 , 2 3 1 , 3 7 2 58 , 2 0 7 , 4 9 7 60 , 5 6 0 , 3 9 4 62 , 8 8 7 , 6 9 7 Ca p i t a l O u t l a y 49 , 3 0 2 51 , 2 7 4 52 , 5 5 6 53 , 8 7 0 55 , 2 1 7 56 , 5 9 7 Ot h e r F i n a n c i n g U s e s - - - - - - Ot h e r O p e r a t i n g E x p e n s e s De b t S e r v i c e - - - - - - Ra t e - F u n d e d C a p i t a l - - - - - 4, 1 4 3 , 5 3 3 To t a l O p e r a t i n g E x p e n d i t u r e s 48 , 4 7 3 , 8 3 5 $ 53 , 3 8 9 , 9 2 8 $ 59 , 6 3 9 , 9 5 6 $ 63 , 7 9 2 , 3 8 3 $ 66 , 3 2 6 , 4 2 9 $ 72 , 9 8 4 , 7 8 3 $ Po l i c y E x p e n d i t u r e s Re p l a c e m e n t F u n d i n g 5, 0 0 0 , 0 0 0 $ - $ - $ - $ - $ - $ Tr a n s f e r t o C a p i t a l F u n d 5, 0 0 0 , 0 0 0 - - - - - Ad d i t i o n s t o M e e t M i n i m u m F u n d B a l a n c e s - - - - - - To t a l P o l i c y E x p e n d i t u r e s 10 , 0 0 0 , 0 0 0 $ - $ - $ - $ - $ - $ TO T A L E X P E N D I T U R E S f o r C a s h F l o w T e s t 58 , 4 7 3 , 8 3 5 $ 53 , 3 8 9 , 9 2 8 $ 59 , 6 3 9 , 9 5 6 $ 63 , 7 9 2 , 3 8 3 $ 66 , 3 2 6 , 4 2 9 $ 72 , 9 8 4 , 7 8 3 $ CA S H F L O W S U R P L U S ( D E F I C I T ) (8 , 8 3 5 , 1 9 7 ) $ (6 7 0 , 5 0 0 ) $ (9 2 7 , 2 2 7 ) $ 55 , 6 7 1 $ 1, 3 6 6 , 2 5 0 $ (1 , 7 5 7 , 9 4 1 ) $ Feb. 11, 2025 Item #8 Page 223 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Po t a b l e W a t e r R e v e n u e R e q u i r e m e n t FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 DE B T C O V E R A G E T E S T 1. 2 x Bo n d C o v e r a g e Ca l c u l a t i o n o f N e t R e v e n u e s Op e r a t i n g R e v e n u e s Us e r C h a r g e s 51 , 4 3 3 , 4 4 0 $ 55 , 1 2 6 , 5 7 7 $ 61 , 9 4 1 , 3 0 6 $ 67 , 6 0 2 , 6 9 4 $ 72 , 0 0 1 , 3 7 6 $ 76 , 1 2 1 , 6 9 0 $ Ta x R e v e n u e s 4, 3 7 6 , 2 1 7 4, 5 0 5 , 3 1 5 4, 6 5 0 , 3 8 6 4, 8 0 4 , 7 7 9 4, 9 4 8 , 4 4 2 5, 1 0 0 , 3 5 9 Ot h e r / M i s c R e v e n u e s - E x c l u d e s I n t e r e s t E a r n i n g s 1, 1 0 0 , 8 6 8 1, 1 7 9 , 5 9 8 1, 2 4 4 , 5 7 9 1, 2 7 8 , 1 5 5 1, 3 1 4 , 9 5 3 1, 3 5 3 , 0 3 3 Ye s Co n n e c t i o n F e e s 1, 5 8 0 , 5 9 4 1, 2 9 6 , 4 7 2 44 8 , 9 1 3 82 5 , 7 3 6 2, 2 2 8 , 6 9 1 2, 3 9 7 , 8 5 2 Ye s Gr a n t s 2, 6 7 2 , 3 0 7 2, 7 5 0 , 0 0 0 1, 8 0 0 , 0 0 0 - - - Mo d e l e d I n t e r e s t E a r n i n g s Ye s Op e r a t i n g F u n d s 71 7 , 7 3 3 54 0 , 6 7 2 32 3 , 5 6 3 29 7 , 2 1 4 30 2 , 7 4 7 32 7 , 6 8 0 Ye s Ca p i t a l F u n d s 1, 9 4 1 , 3 4 7 1, 7 2 7 , 0 3 8 1, 3 9 1 , 6 5 3 1, 2 1 3 , 4 0 6 1, 0 3 8 , 1 0 6 84 1 , 4 7 7 To t a l R e v e n u e s I n c l u d e d i n T e s t 63 , 8 2 2 , 5 0 6 $ 67 , 1 2 5 , 6 7 2 $ 71 , 8 0 0 , 4 0 1 $ 76 , 0 2 1 , 9 8 4 $ 81 , 8 3 4 , 3 1 6 $ 86 , 1 4 2 , 0 9 2 $ Le s s : O p e r a t i n g E x p e n s e s Po t a b l e (4 8 , 4 2 4 , 5 3 3 ) $ (5 3 , 3 3 8 , 6 5 4 ) $ (5 9 , 5 8 7 , 3 9 9 ) $ (6 3 , 7 3 8 , 5 1 3 ) $ (6 6 , 2 7 1 , 2 1 3 ) $ (6 8 , 7 8 4 , 6 5 2 ) $ Re c y c l e d (8 , 4 4 9 , 2 0 2 ) $ (8 , 9 2 8 , 2 2 5 ) $ (9 , 9 7 8 , 7 9 4 ) $ (1 0 , 3 2 7 , 0 6 5 ) $ (1 0 , 7 1 0 , 6 7 0 ) $ (1 1 , 1 1 0 , 0 3 4 ) $ Ne t O p e r a t i n g R e v e n u e s A v a i a b l e f o r D e b t S e r v i c e 6, 9 4 8 , 7 7 1 $ 4, 8 5 8 , 7 9 3 $ 2, 2 3 4 , 2 0 8 $ 1, 9 5 6 , 4 0 6 $ 4, 8 5 2 , 4 3 4 $ 6, 2 4 7 , 4 0 6 $ De b t S e r v i c e - P o t a b l e W a t e r - - - - - - De b t S e r v i c e - R e c y c l e d W a t e r 2, 2 6 8 , 8 7 5 2, 3 8 5 , 1 1 9 1, 9 2 4 , 4 1 7 1, 9 2 4 , 4 1 7 69 4 , 7 9 4 69 4 , 7 9 4 Co v e r a g e 45 3 , 7 7 5 47 7 , 0 2 4 38 4 , 8 8 3 38 4 , 8 8 3 13 8 , 9 5 9 13 8 , 9 5 9 Su b t o t a l : D e b t S e r v i c e a n d C o v e r a g e 2, 7 2 2 , 6 5 0 $ 2, 8 6 2 , 1 4 3 $ 2, 3 0 9 , 3 0 0 $ 2, 3 0 9 , 3 0 0 $ 83 3 , 7 5 3 $ 83 3 , 7 5 3 $ BO N D C O V E R A G E S U R P L U S ( D E F I C I T ) 4, 2 2 6 , 1 2 1 $ 1, 9 9 6 , 6 5 0 $ (7 5 , 0 9 2 ) $ (3 5 2 , 8 9 4 ) $ 4, 0 1 8 , 6 8 1 $ 5, 4 1 3 , 6 5 4 $ Co v e r a g e D e f i c i t A t t r i b u t a b l e t o P o t a b l e W a t e r $0 $0 $0 $0 $0 $0 Feb. 11, 2025 Item #8 Page 224 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Po t a b l e W a t e r R e v e n u e R e q u i r e m e n t FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 RE V E N U E R E Q U I R E M E N T Re v e n u e S h o r t f a l l s (8 , 8 3 5 , 1 9 7 ) $ (6 7 0 , 5 0 0 ) $ (9 2 7 , 2 2 7 ) $ - $ - $ (1 , 7 5 7 , 9 4 1 ) $ Ca s h F l o w D r i v e n C a s h F l o w D r i v e n C a s h F l o w D r i v e n C o v e r a g e D r i v e n C o v e r a g e D r i v e n C a s h F l o w D r i v e n Mo n t h o f i m p l e m e n t a t i o n Ja n u a r y Ja n u a r y Ja n u a r y Ja n u a r y Ja n u a r y Ja n u a r y Ca l c u l a t e d R e v e n u e I n c r e a s e ( % ) 41 . 5 4 % 9. 4 2 % 11 . 7 3 % 0. 0 0 % 0. 0 0 % 16 . 6 9 % Ca r l s b a d P o r t i o n R e v e n u e I n c r e a s e O v e r r i d e ( I N P U T i n D a s h b o a r d ) 2. 0 0 % 10 . 9 1 % 10 . 0 0 % 10 . 0 0 % 7. 5 0 % 7. 5 0 % Im p l e m e n t e d R a t e I n c r e a s e 2. 0 0 % 10 . 9 1 % 10 . 0 0 % 10 . 0 0 % 7. 5 0 % 7. 5 0 % Cu m u l a t i v e R a t e I n c r e a s e 4. 0 % 15 . 4 % 26 . 9 % 39 . 6 % 50 . 1 % 61 . 4 % Feb. 11, 2025 Item #8 Page 225 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Po t a b l e W a t e r R e v e n u e R e q u i r e m e n t FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 CA S H F L O W Re v e n u e s B e f o r e R a t e I n c r e a s e 49 , 6 3 8 , 6 3 8 $ 52 , 7 1 9 , 4 2 9 $ 58 , 7 1 2 , 7 2 8 $ 63 , 8 4 8 , 0 5 3 $ 67 , 6 9 2 , 6 7 9 $ 71 , 2 2 6 , 8 4 2 $ Re v e n u e s F r o m R a t e I n c r e a s e 85 0 , 8 6 5 1, 5 5 2 , 6 2 4 1, 5 8 1 , 4 4 9 1, 7 4 6 , 1 2 9 1, 4 5 4 , 7 5 3 1, 5 7 9 , 8 7 9 LE S S : R a t e I n c r e a s e D e l a y (4 2 5 , 4 3 2 ) (7 7 6 , 3 1 2 ) (7 9 0 , 7 2 4 ) (8 7 3 , 0 6 4 ) (7 2 7 , 3 7 6 ) (7 8 9 , 9 3 9 ) Ad j u s t m e n t f o r I m p l e m e n t a t i o n D e l a y (2 , 8 8 5 , 6 7 4 ) LE S S : E x p e n d i t u r e s (5 8 , 4 7 3 , 8 3 5 ) (5 3 , 3 8 9 , 9 2 8 ) (5 9 , 6 3 9 , 9 5 6 ) (6 3 , 7 9 2 , 3 8 3 ) (6 6 , 3 2 6 , 4 2 9 ) (7 2 , 9 8 4 , 7 8 3 ) Ca s h F l o w (8 , 4 0 9 , 7 6 5 ) $ (2 , 7 7 9 , 8 6 2 ) $ (1 3 6 , 5 0 3 ) $ 92 8 , 7 3 5 $ 2, 0 9 3 , 6 2 6 $ (9 6 8 , 0 0 1 ) $ To t a l A v a i l a b l e F u n d - P o t a b l e W a t e r Be g i n n i n g B a l a n c e 13 1 , 5 1 6 , 3 4 6 $ 85 , 5 8 4 , 6 5 7 $ 75 , 2 9 1 , 1 0 5 $ 65 , 0 4 9 , 6 9 8 $ 61 , 3 5 2 , 4 7 3 $ 50 , 6 7 4 , 7 9 0 $ En d i n g F u n d B a l a n c e 85 , 5 8 4 , 6 5 7 75 , 2 9 1 , 1 0 5 65 , 0 4 9 , 6 9 8 61 , 3 5 2 , 4 7 3 50 , 6 7 4 , 7 9 0 41 , 2 4 8 , 1 7 4 Fu n d c h a n g e (4 5 , 9 3 1 , 6 8 9 ) $ (1 0 , 2 9 3 , 5 5 2 ) $ (1 0 , 2 4 1 , 4 0 7 ) $ (3 , 6 9 7 , 2 2 5 ) $ (1 0 , 6 7 7 , 6 8 2 ) $ (9 , 4 2 6 , 6 1 6 ) $ 64 5 d a y s 51 5 d a y s 39 8 d a y s 35 1 d a y s 27 9 d a y s 21 9 d a y s Op e r a t i n g F u n d - P o t a b l e W a t e r Be g i n n i n g B a l a n c e 34 , 9 0 1 , 4 6 8 $ 16 , 2 5 2 , 4 5 2 $ 13 , 4 7 2 , 5 9 0 $ 13 , 3 3 6 , 0 8 8 $ 14 , 2 6 4 , 8 2 3 $ 16 , 3 5 8 , 4 4 9 $ Ca s h F l o w (8 , 4 0 9 , 7 6 5 ) (2 , 7 7 9 , 8 6 2 ) (1 3 6 , 5 0 3 ) 92 8 , 7 3 5 2, 0 9 3 , 6 2 6 (9 6 8 , 0 0 1 ) Tr a n s f e r t o C a p i t a l R e s e r v e (1 0 , 2 3 9 , 2 5 1 ) - - - - - En d i n g F u n d B a l a n c e 16 , 2 5 2 , 4 5 2 $ 13 , 4 7 2 , 5 9 0 $ 13 , 3 3 6 , 0 8 8 $ 14 , 2 6 4 , 8 2 3 $ 16 , 3 5 8 , 4 4 9 $ 15 , 3 9 0 , 4 4 8 $ Da y s o f O & M 1 2 2 d a y s 92 d a y s 82 d a y s 82 d a y s 90 d a y s 82 d a y s Feb. 11, 2025 Item #8 Page 226 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Po t a b l e W a t e r R e v e n u e R e q u i r e m e n t FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 Co m b i n e d C o v e r a g e T e s t s - P o s t R a t e I n c r e a s e FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 Ca l c u l a t i o n o f N e t R e v e n u e s Op e r a t i n g R e v e n u e s Us e r C h a r g e s 52 , 0 3 6 , 6 7 7 $ 53 , 0 1 7 , 2 1 4 $ 62 , 9 5 1 , 2 0 6 $ 68 , 7 0 5 , 6 5 8 $ 72 , 9 7 1 , 3 6 5 $ 77 , 1 6 7 , 7 5 7 $ Ta x R e v e n u e s 4, 3 7 6 , 2 1 7 4, 5 0 5 , 3 1 5 4, 6 5 0 , 3 8 6 4, 8 0 4 , 7 7 9 4, 9 4 8 , 4 4 2 5, 1 0 0 , 3 5 9 Ot h e r / M i s c R e v e n u e s 1, 1 0 0 , 8 6 8 1, 1 7 9 , 5 9 8 1, 2 4 4 , 5 7 9 1, 2 7 8 , 1 5 5 1, 3 1 4 , 9 5 3 1, 3 5 3 , 0 3 3 Ye s Co n n e c t i o n F e e s 1, 5 8 0 , 5 9 4 1, 2 9 6 , 4 7 2 44 8 , 9 1 3 82 5 , 7 3 6 2, 2 2 8 , 6 9 1 2, 3 9 7 , 8 5 2 Ye s Gr a n t s 2, 6 7 2 , 3 0 7 2, 7 5 0 , 0 0 0 1, 8 0 0 , 0 0 0 - - - Mo d e l e d I n t e r e s t E a r n i n g s Ye s Op e r a t i n g F u n d s 71 7 , 7 3 3 54 0 , 6 7 2 32 3 , 5 6 3 29 7 , 2 1 4 30 2 , 7 4 7 32 7 , 6 8 0 Ye s Ca p i t a l F u n d s 1, 9 4 1 , 3 4 7 1, 7 2 7 , 0 3 8 1, 3 9 1 , 6 5 3 1, 2 1 3 , 4 0 6 1, 0 3 8 , 1 0 6 84 1 , 4 7 7 To t a l R e v e n u e s I n c l u d e d i n T e s t 64 , 4 2 5 , 7 4 2 $ 65 , 0 1 6 , 3 1 0 $ 72 , 8 1 0 , 3 0 2 $ 77 , 1 2 4 , 9 4 8 $ 82 , 8 0 4 , 3 0 5 $ 87 , 1 8 8 , 1 5 8 $ Le s s : O p e r a t i n g E x p e n s e s Po t a b l e (4 8 , 4 2 4 , 5 3 3 ) $ (5 3 , 3 3 8 , 6 5 4 ) $ (5 9 , 5 8 7 , 3 9 9 ) $ (6 3 , 7 3 8 , 5 1 3 ) $ (6 6 , 2 7 1 , 2 1 3 ) $ (6 8 , 7 8 4 , 6 5 2 ) $ Re c y c l e d (8 , 4 4 9 , 2 0 2 ) $ (8 , 9 2 8 , 2 2 5 ) $ (9 , 9 7 8 , 7 9 4 ) $ (1 0 , 3 2 7 , 0 6 5 ) $ (1 0 , 7 1 0 , 6 7 0 ) $ (1 1 , 1 1 0 , 0 3 4 ) $ Ne t O p e r a t i n g R e v e n u e s A v a i a b l e f o r D e b t S e r v i c e 7, 5 5 2 , 0 0 8 $ 2, 7 4 9 , 4 3 0 $ 3, 2 4 4 , 1 0 8 $ 3, 0 5 9 , 3 6 9 $ 5, 8 2 2 , 4 2 3 $ 7, 2 9 3 , 4 7 3 $ Ex i s t i n g D e b t T e s t - I n c l u d e s d e b t s e r v i c e o n l y f o r d e b t t h a t h a s b e e n i s s u e d a n d h a s b e e n i n p u t i n t o t h e m o d e l . Ne t O p e r a t i n g R e v e n u e s A v a i a b l e f o r D e b t S e r v i c e 7, 5 5 2 , 0 0 8 $ 2, 7 4 9 , 4 3 0 $ 3, 2 4 4 , 1 0 8 $ 3, 0 5 9 , 3 6 9 $ 5, 8 2 2 , 4 2 3 $ 7, 2 9 3 , 4 7 3 $ Le s s : E x i s t i n g D e b t S e r v i c e (1 , 8 7 6 , 4 8 2 ) $ (1 , 8 7 6 , 4 8 2 ) $ (1 , 4 1 5 , 7 8 0 ) $ (1 , 4 1 5 , 7 7 9 ) $ (1 8 6 , 1 5 7 ) $ (1 8 6 , 1 5 7 ) $ Re v e n u e s A v a i a b l e f o r C o v e r a g e 5, 6 7 5 , 5 2 6 $ 87 2 , 9 4 8 $ 1, 8 2 8 , 3 2 8 $ 1, 6 4 3 , 5 9 0 $ 5, 6 3 6 , 2 6 6 $ 7, 1 0 7 , 3 1 6 $ Ex i s t i n g D e b t S e r v i c e C o v e r a g e R a t i o 4. 0 2 x 1. 4 7 x 2. 2 9 x 2. 1 6 x 31 . 2 8 x 39 . 1 8 x To t a l D e b t T e s t - I n c l u d e s e x i t i n g a n d p r o j e c t e d d e b t . Ne t O p e r a t i n g R e v e n u e s A v a i a b l e f o r D e b t S e r v i c e 7, 5 5 2 , 0 0 8 $ 2, 7 4 9 , 4 3 0 $ 3, 2 4 4 , 1 0 8 $ 3, 0 5 9 , 3 6 9 $ 5, 8 2 2 , 4 2 3 $ 7, 2 9 3 , 4 7 3 $ Le s s : E x i s t i n g D e b t S e r v i c e (1 , 8 7 6 , 4 8 2 ) $ (1 , 8 7 6 , 4 8 2 ) $ (1 , 4 1 5 , 7 8 0 ) $ (1 , 4 1 5 , 7 7 9 ) $ (1 8 6 , 1 5 7 ) $ (1 8 6 , 1 5 7 ) $ Le s s : P r o j e c t e d D e b t S e r v i c e (3 9 2 , 3 9 3 ) $ (5 0 8 , 6 3 7 ) $ (5 0 8 , 6 3 7 ) $ (5 0 8 , 6 3 7 ) $ (5 0 8 , 6 3 7 ) $ (5 0 8 , 6 3 7 ) $ Re v e n u e s A v a i a b l e f o r C o v e r a g e 5, 2 8 3 , 1 3 3 $ 36 4 , 3 1 1 $ 1, 3 1 9 , 6 9 1 $ 1, 1 3 4 , 9 5 3 $ 5, 1 2 7 , 6 2 9 $ 6, 5 9 8 , 6 7 9 $ To t a l D e b t S e r v i c e C o v e r a g e R a t i o 3. 3 3 x 1. 1 5 x 1. 6 9 x 1. 5 9 x 8. 3 8 x 10 . 5 0 x Feb. 11, 2025 Item #8 Page 227 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Re c y c l e d W a t e r R e v e n u e R e q u i r e m e n t FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 CA S H F L O W T E S T RE V E N U E S Co m m o d i t y C h a r g e s 7, 5 1 0 , 7 7 3 $ 7, 8 5 8 , 8 1 5 $ 8, 2 2 9 , 6 9 0 $ 8, 6 3 2 , 3 3 3 $ 9, 1 0 9 , 6 8 7 $ 9, 6 1 7 , 1 3 7 $ De l i v e r y C h a r g e s 1, 3 7 9 , 4 2 6 1, 4 4 3 , 3 4 8 1, 5 1 1 , 4 6 2 1, 5 8 5 , 4 1 2 1, 6 7 3 , 0 8 3 1, 7 6 6 , 2 8 1 No n - R a t e C h a r g e s f o r S e r v i c e s 1,2 5 4 1, 3 1 2 1, 3 4 8 1, 3 8 6 1, 4 3 5 1, 4 8 5 De v e l o p e r F e e s - - - - - - In t e r g o v e r n m e n t a l ( C W A ) - - - - - - Fi n e s a n d F o r f e i t u r e s 82 , 2 2 6 85 , 5 1 5 87 , 6 5 2 89 , 8 4 4 92 , 0 9 0 94 , 3 9 2 In c o m e f r o m P r o p e r t y & I n v e s t m e n t s 10 8 , 3 6 0 96 , 7 0 0 10 6 , 4 5 9 10 7 , 2 1 2 76 , 8 3 2 48 , 8 8 5 In t e r d e p a r t m e n t a l 10 , 5 0 0 10 , 9 2 0 11 , 1 9 3 11 , 4 7 3 11 , 7 6 0 12 , 0 5 4 Ot h e r R e v e n u e s 83 8 , 4 2 8 86 3 , 1 6 2 89 0 , 9 5 6 92 0 , 5 3 6 94 8 , 0 6 0 97 7 , 1 6 5 Ot h e r F i n a n c i n g S o u r c e s - - - - - - TO T A L R E V E N U E S 9, 9 3 0 , 9 6 8 $ 10 , 3 5 9 , 7 7 2 $ 10 , 8 3 8 , 7 6 0 $ 11 , 3 4 8 , 1 9 5 $ 11 , 9 1 2 , 9 4 6 $ 12 , 5 1 7 , 3 9 8 $ EX P E N D I T U R E S On g o i n g O p e r a t i n g E x p e n s e s Pe r s o n n e l 1, 8 1 1 , 3 0 0 $ 1, 9 6 4 , 9 9 5 $ 2, 0 2 7 , 8 6 2 $ 2, 0 9 2 , 4 6 1 $ 2, 1 5 8 , 8 5 7 $ 2, 2 2 7 , 5 0 6 $ Ma i n t e n a n c e & E q u i p m e n t ( w / o d e p r e c i a t i o n ) 6, 6 3 7 , 9 0 2 6, 9 6 3 , 2 3 0 7, 9 5 0 , 9 3 2 8, 2 3 4 , 6 0 5 8, 5 5 1 , 8 1 3 8, 8 8 2 , 5 2 8 Ca p i t a l O u t l a y 9, 3 6 7 9, 7 4 2 9, 9 8 5 10 , 2 3 5 10 , 4 9 1 10 , 7 5 3 Ot h e r F i n a n c i n g U s e s - - - - - - Ot h e r O p e r a t i n g E x p e n s e s De b t S e r v i c e - R e c y c l e d W a t e r 2, 2 6 8 , 8 7 5 2, 3 8 5 , 1 1 9 1, 9 2 4 , 4 1 7 1,9 2 4 , 4 1 7 69 4 , 7 9 4 69 4 , 7 9 4 Ra t e - F u n d e d C a p i t a l - R e c y c l e d W a t e r - - - - 1 , 0 8 5 , 0 3 0 92 8 , 0 3 7 To t a l O p e r a t i n g E x p e n d i t u r e s 10 , 7 2 7 , 4 4 4 $ 11 , 3 2 3 , 0 8 6 $ 11 , 9 1 3 , 1 9 6 $ 12 , 2 6 1 , 7 1 7 $ 12 , 5 0 0 , 9 8 4 $ 12 , 7 4 3 , 6 1 7 $ Po l i c y E x p e n d i t u r e s Re p l a c e m e n t F u n d i n g - $ - $ - $ - $ - $ - $ Tr a n s f e r t o C a p i t a l F u n d - - - - - - Ad d i t i o n s t o M e e t M i n i m u m F u n d B a l a n c e s - - - - - - To t a l P o l i c y E x p e n d i t u r e s - $ - $ - $ - $ - $ - $ TO T A L E X P E N D I T U R E S f o r C a s h F l o w T e s t 10 , 7 2 7 , 4 4 4 $ 11 , 3 2 3 , 0 8 6 $ 11 , 9 1 3 , 1 9 6 $ 12 , 2 6 1 , 7 1 7 $ 12 , 5 0 0 , 9 8 4 $ 12 , 7 4 3 , 6 1 7 $ CA S H F L O W S U R P L U S ( D E F I C I T ) (7 9 6 , 4 7 6 ) $ (9 6 3 , 3 1 4 ) $ (1 , 0 7 4 , 4 3 6 ) $ (9 1 3 , 5 2 2 ) $ (5 8 8 , 0 3 9 ) $ (2 2 6 , 2 1 9 ) $ Feb. 11, 2025 Item #8 Page 228 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Re c y c l e d W a t e r R e v e n u e R e q u i r e m e n t FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 DE B T C O V E R A G E T E S T - C o m b i n e d 1. 2 5 x Bo n d C o v e r a g e Ca l c u l a t i o n o f N e t R e v e n u e s Op e r a t i n g R e v e n u e s Us e r C h a r g e s 51 , 4 3 3 , 4 4 0 $ 55 , 1 2 6 , 5 7 7 $ 61 , 9 4 1 , 3 0 6 $ 67 , 6 0 2 , 6 9 4 $ 72 , 0 0 1 , 3 7 6 $ 76 , 1 2 1 , 6 9 0 $ Ta x R e v e n u e s 4, 3 7 6 , 2 1 7 4, 5 0 5 , 3 1 5 4, 6 5 0 , 3 8 6 4, 8 0 4 , 7 7 9 4, 9 4 8 , 4 4 2 5, 1 0 0 , 3 5 9 Ot h e r / M i s c R e v e n u e s 1, 1 0 0 , 8 6 8 1, 1 7 9 , 5 9 8 1, 2 4 4 , 5 7 9 1, 2 7 8 , 1 5 5 1, 3 1 4 , 9 5 3 1, 3 5 3 , 0 3 3 Ch a n g e s e l e c t i o n o n W a t e r R E V R e q u i r e m e n t Ye s Co n n e c t i o n F e e s 1, 5 8 0 , 5 9 4 1, 2 9 6 , 4 7 2 44 8 , 9 1 3 82 5 , 7 3 6 2, 2 2 8 , 6 9 1 2, 3 9 7 , 8 5 2 Ye s Gr a n t s 2, 6 7 2 , 3 0 7 2, 7 5 0 , 0 0 0 1, 8 0 0 , 0 0 0 - - - Mo d e l e d I n t e r e s t E a r n i n g s Ye s Op e r a t i n g F u n d s 71 7 , 7 3 3 54 0 , 6 7 2 32 3 , 5 6 3 29 7 , 2 1 4 30 2 , 7 4 7 32 7 , 6 8 0 Ye s Ca p i t a l F u n d s 1, 9 4 1 , 3 4 7 1, 7 2 7 , 0 3 8 1, 3 9 1 , 6 5 3 1, 2 1 3 , 4 0 6 1, 0 3 8 , 1 0 6 84 1 , 4 7 7 To t a l R e v e n u e s I n c l u d e d i n T e s t 63 , 8 2 2 , 5 0 6 $ 67 , 1 2 5 , 6 7 2 $ 71 , 8 0 0 , 4 0 1 $ 76 , 0 2 1 , 9 8 4 $ 81 , 8 3 4 , 3 1 6 $ 86 , 1 4 2 , 0 9 2 $ Le s s : O p e r a t i n g E x p e n s e s Po t a b l e (4 8 , 4 2 4 , 5 3 3 ) $ (5 3 , 3 3 8 , 6 5 4 ) $ (5 9 , 5 8 7 , 3 9 9 ) $ (6 3 , 7 3 8 , 5 1 3 ) $ (6 6 , 2 7 1 , 2 1 3 ) $ (6 8 , 7 8 4 , 6 5 2 ) $ Re c y c l e d (8 , 4 4 9 , 2 0 2 ) $ (8 , 9 2 8 , 2 2 5 ) $ (9 , 9 7 8 , 7 9 4 ) $ (1 0 , 3 2 7 , 0 6 5 ) $ (1 0 , 7 1 0 , 6 7 0 ) $ (1 1 , 1 1 0 , 0 3 4 ) $ Ne t O p e r a t i n g R e v e n u e s A v a i a b l e f o r D e b t S e r v i c e 6, 9 4 8 , 7 7 1 $ 4, 8 5 8 , 7 9 3 $ 2, 2 3 4 , 2 0 8 $ 1,9 5 6 , 4 0 6 $ 4, 8 5 2 , 4 3 4 $ 6, 2 4 7 , 4 0 6 $ De b t S e r v i c e - R e c y c l e d W a t e r 2, 2 6 8 , 8 7 5 2, 3 8 5 , 1 1 9 1, 9 2 4 , 4 1 7 1, 9 2 4 , 4 1 7 69 4 , 7 9 4 69 4 , 7 9 4 De b t S e r v i c e - P o t a b l e W a t e r - - - - - - Co v e r a g e 56 7 , 2 1 9 59 6 , 2 8 0 48 1 , 1 0 4 48 1 , 1 0 4 17 3 , 6 9 8 17 3 , 6 9 8 Su b t o t a l : D e b t S e r v i c e a n d C o v e r a g e 2, 8 3 6 , 0 9 4 $ 2, 9 8 1 , 3 9 9 $ 2, 4 0 5 , 5 2 1 $ 2,4 0 5 , 5 2 1 $ 86 8 , 4 9 2 $ 86 8 , 4 9 2 $ Co m b i n e d - B O N D C O V E R A G E S U R P L U S ( D E F I C I T ) 4, 1 1 2 , 6 7 8 $ 1, 8 7 7 , 3 9 4 $ (1 7 1 , 3 1 3 ) $ (4 4 9 , 1 1 5 ) $ 3, 9 8 3 , 9 4 1 $ 5, 3 7 8 , 9 1 4 $ Co v e r a g e D e f i c i t A t t r i b u t a b l e t o R e c y c l e d W a t e r $0 $0 ( $ 1 7 1 , 3 1 3 ) ( $ 4 4 9 , 1 1 5 ) $0 $0 Feb. 11, 2025 Item #8 Page 229 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Re c y c l e d W a t e r R e v e n u e R e q u i r e m e n t FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 RE V E N U E R E Q U I R E M E N T Re v e n u e S h o r t f a l l s (7 9 6 , 4 7 6 ) $ (9 6 3 , 3 1 4 ) $ (1 , 0 7 4 , 4 3 6 ) $ (9 1 3 , 5 2 2 ) $ (5 8 8 , 0 3 9 ) $ (2 2 6 , 2 1 9 ) $ Ca s h F l o w D r i v e n C a s h F l o w D r i v e n C a s h F l o w D r i v e n C a s h F l o w D r i v e n C a s h F l o w D r i v e n C a s h F l o w D r i v e n Mo n t h o f i m p l e m e n t a t i o n Ja n u a r y J a n u a r y J a n u a r y J a n u a r y J a n u a r y J a n u a r y Ca l c u l a t e d R e v e n u e I n c r e a s e ( % ) 17 . 9 2 % 20 . 7 1 % 22 . 0 6 % 17 . 8 8 % 10 . 9 1 % 3. 9 7 % Ca r l s b a d P o r t i o n R e v e n u e I n c r e a s e O v e r r i d e ( I N P U T i n D a s h b o a r d ) 4. 0 0 % 4. 5 0 % 4. 5 0 % 4. 5 0 % 4. 5 0 % 4. 5 0 % Im p l e m e n t e d R a t e I n c r e a s e 4. 0 0 % 4. 5 0 % 4. 5 0 % 4. 5 0 % 4. 5 0 % 4. 5 0 % Cu m u l a t i v e R a t e I n c r e a s e 12 . 5 % 17 . 5 % 22 . 8 % 28 . 4 % 34 . 1 % 40 . 2 % SF R R a t e $2 5 . 3 6 $2 7 . 3 7 $2 8 . 6 1 $2 9 . 8 9 $3 1 . 2 4 $3 2 . 6 4 Feb. 11, 2025 Item #8 Page 230 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Re c y c l e d W a t e r R e v e n u e R e q u i r e m e n t FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 CA S H F L O W Re v e n u e s B e f o r e R a t e I n c r e a s e 9, 9 3 0 , 9 6 8 $ 10 , 3 5 9 , 7 7 2 $ 10 , 8 3 8 , 7 6 0 $ 11 , 3 4 8 , 1 9 5 $ 11 , 9 1 2 , 9 4 6 $ 12 , 5 1 7 , 3 9 8 $ Re v e n u e s F r o m R a t e I n c r e a s e 35 5 , 6 0 8 41 8 , 5 9 7 43 8 , 3 5 2 45 9 , 7 9 9 48 5 , 2 2 5 51 2 , 2 5 4 LE S S : R a t e I n c r e a s e D e l a y (1 7 7 , 8 0 4 ) (2 0 9 , 2 9 9 ) (2 1 9 , 1 7 6 ) (2 2 9 , 8 9 9 ) (2 4 2 , 6 1 2 ) (2 5 6 , 1 2 7 ) Ad j u s t m e n t f o r I m p l e m e n t a t i o n D e l a y (2 0 9 , 2 9 9 ) LE S S : E x p e n d i t u r e s (1 0 , 7 2 7 , 4 4 4 ) (1 1 , 3 2 3 , 0 8 6 ) (1 1 , 9 1 3 , 1 9 6 ) (1 2 , 2 6 1 , 7 1 7 ) (1 2 , 5 0 0 , 9 8 4 ) (1 2 , 7 4 3 , 6 1 7 ) Ca s h F l o w (6 1 8 , 6 7 2 ) $ (9 6 3 , 3 1 4 ) $ (8 5 5 , 2 6 0 ) $ (6 8 3 , 6 2 3 ) $ (3 4 5 , 4 2 7 ) $ 29 , 9 0 8 $ To t a l A v a i l a b l e F u n d - R e c y c l e d W a t e r Be g i n n i n g B a l a n c e 5, 1 4 0 , 5 3 8 $ 4, 5 2 9 , 4 8 0 $ 6, 1 1 6 , 4 1 2 $ 4, 6 0 4 , 7 6 7 $ 3, 0 7 8 , 4 2 1 $ 1, 8 1 0 , 0 5 2 $ En d i n g F u n d B a l a n c e ( i n c l u d e s C a p i t a l F u n d ) 4, 5 2 9 , 4 8 0 6, 1 1 6 , 4 1 2 4, 6 0 4 , 7 6 7 3, 0 7 8 , 4 2 1 1, 8 1 0 , 0 5 2 1, 8 3 9 , 9 6 0 Fu n d C h a n g e (6 1 1 , 0 5 8 ) $ 1, 5 8 6 , 9 3 3 $ (1 , 5 1 1 , 6 4 5 ) $ (1 , 5 2 6 , 3 4 7 ) $ (1 , 2 6 8 , 3 6 8 ) $ 29 , 9 0 8 $ 19 5 D a y s 25 0 D a y s 16 8 D a y s 10 9 D a y s 62 D a y s 60 D a y s Op e r a t i n g F u n d Be g i n n i n g B a l a n c e 1, 7 6 5 , 9 6 3 $ 1, 1 4 7 , 2 9 1 $ 1, 4 8 3 , 9 7 6 $ 1, 4 2 8 , 7 1 6 $ 1, 2 4 5 , 0 9 3 $ 89 9 , 6 6 7 $ Ca s h F l o w (6 1 8 , 6 7 2 ) (9 6 3 , 3 1 4 ) (8 5 5 , 2 6 0 ) (6 8 3 , 6 2 3 ) (3 4 5 , 4 2 7 ) 29 , 9 0 8 Tr a n s f e r s t o C a p i t a l F u n d - 1, 3 0 0 , 0 0 0 80 0 , 0 0 0 50 0 , 0 0 0 - - En d i n g F u n d B a l a n c e 1, 1 4 7 , 2 9 1 $ 1, 4 8 3 , 9 7 6 $ 1, 4 2 8 , 7 1 6 $ 1,2 4 5 , 0 9 3 $ 89 9 , 6 6 7 $ 92 9 , 5 7 4 $ Op e r a t i n g B a l a n c e i n D a y s o f E x p e n d i t u r e s 50 d a y s 61 d a y s 52 d a y s 44 d a y s 31 d a y s 31 d a y s Feb. 11, 2025 Item #8 Page 231 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Re c y c l e d W a t e r R e v e n u e R e q u i r e m e n t FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 Co m b i n e d C o v e r a g e T e s t s - P o s t R a t e I n c r e a s e FY E 2 0 2 4 F Y E 2 0 2 5 F Y E 2 0 2 6 F Y E 2 0 2 7 F Y E 2 0 2 8 F Y E 2 0 2 9 Ca l c u l a t i o n o f N e t R e v e n u e s Op e r a t i n g R e v e n u e s Us e r C h a r g e s 52 , 0 3 6 , 6 7 7 $ 53 , 0 1 7 , 2 1 4 $ 62 , 9 5 1 , 2 0 6 $ 68 , 7 0 5 , 6 5 8 $ 72 , 9 7 1 , 3 6 5 $ 77 , 1 6 7 , 7 5 7 $ Ta x R e v e n u e s 4, 3 7 6 , 2 1 7 4, 5 0 5 , 3 1 5 4, 6 5 0 , 3 8 6 4, 8 0 4 , 7 7 9 4, 9 4 8 , 4 4 2 5, 1 0 0 , 3 5 9 Ot h e r / M i s c R e v e n u e s 1, 1 0 0 , 8 6 8 1, 1 7 9 , 5 9 8 1, 2 4 4 , 5 7 9 1, 2 7 8 , 1 5 5 1, 3 1 4 , 9 5 3 1, 3 5 3 , 0 3 3 Ch a n g e s e l e c t i o n o n W a t e r R E V R e q u i r e m e n t Ye s Co n n e c t i o n F e e s 1, 5 8 0 , 5 9 4 1, 2 9 6 , 4 7 2 44 8 , 9 1 3 82 5 , 7 3 6 2, 2 2 8 , 6 9 1 2, 3 9 7 , 8 5 2 Ye s Gr a n t s 2, 6 7 2 , 3 0 7 2, 7 5 0 , 0 0 0 1, 8 0 0 , 0 0 0 - - - Mo d e l e d I n t e r e s t E a r n i n g s Ye s Op e r a t i n g F u n d s 71 7 , 7 3 3 54 0 , 6 7 2 32 3 , 5 6 3 29 7 , 2 1 4 30 2 , 7 4 7 32 7 , 6 8 0 Ye s Ca p i t a l F u n d s 1, 9 4 1 , 3 4 7 1, 7 2 7 , 0 3 8 1, 3 9 1 , 6 5 3 1, 2 1 3 , 4 0 6 1, 0 3 8 , 1 0 6 84 1 , 4 7 7 To t a l R e v e n u e s I n c l u d e d i n T e s t 64 , 4 2 5 , 7 4 2 $ 65 , 0 1 6 , 3 1 0 $ 72 , 8 1 0 , 3 0 2 $ 77 , 1 2 4 , 9 4 8 $ 82 , 8 0 4 , 3 0 5 $ 87 , 1 8 8 , 1 5 8 $ Le s s : O p e r a t i n g E x p e n s e s Po t a b l e (4 8 , 4 2 4 , 5 3 3 ) $ (5 3 , 3 3 8 , 6 5 4 ) $ (5 9 , 5 8 7 , 3 9 9 ) $ (6 3 , 7 3 8 , 5 1 3 ) $ (6 6 , 2 7 1 , 2 1 3 ) $ (6 8 , 7 8 4 , 6 5 2 ) $ Re c y c l e d (8 , 4 4 9 , 2 0 2 ) $ (8 , 9 2 8 , 2 2 5 ) $ (9 , 9 7 8 , 7 9 4 ) $ (1 0 , 3 2 7 , 0 6 5 ) $ (1 0 , 7 1 0 , 6 7 0 ) $ (1 1 , 1 1 0 , 0 3 4 ) $ Ne t O p e r a t i n g R e v e n u e s A v a i l a b l e f o r D e b t S e r v i c e 7, 5 5 2 , 0 0 8 $ 2, 7 4 9 , 4 3 0 $ 3, 2 4 4 , 1 0 8 $ 3,0 5 9 , 3 6 9 $ 5, 8 2 2 , 4 2 3 $ 7, 2 9 3 , 4 7 3 $ Ex i s t i n g D e b t T e s t - I n c l u d e s d e b t s e r v i c e o n l y f o r d e b t t h a t h a s b e e n i s s u e d a n d h a s b e e n i n p u t i n t o t h e m o d e l . Ne t O p e r a t i n g R e v e n u e s A v a i l a b l e f o r D e b t S e r v i c e 7, 5 5 2 , 0 0 8 $ 2, 7 4 9 , 4 3 0 $ 3, 2 4 4 , 1 0 8 $ 3, 0 5 9 , 3 6 9 $ 5, 8 2 2 , 4 2 3 $ 7, 2 9 3 , 4 7 3 $ Le s s : E x i s t i n g D e b t S e r v i c e (1 , 8 7 6 , 4 8 2 ) $ (1 , 8 7 6 , 4 8 2 ) $ (1 , 4 1 5 , 7 8 0 ) $ (1 , 4 1 5 , 7 7 9 ) $ (1 8 6 , 1 5 7 ) $ (1 8 6 , 1 5 7 ) $ Re v e n u e s A v a i l a b l e f o r C o v e r a g e 5, 6 7 5 , 5 2 6 $ 87 2 , 9 4 8 $ 1, 8 2 8 , 3 2 8 $ 1,6 4 3 , 5 9 0 $ 5, 6 3 6 , 2 6 6 $ 7, 1 0 7 , 3 1 6 $ Ex i s t i n g D e b t S e r v i c e C o v e r a g e R a t i o 4. 0 2 x 1. 4 7 x 2. 2 9 x 2. 1 6 x 31 . 2 8 x 39 . 1 8 x To t a l D e b t T e s t - I n c l u d e s e x i t i n g a n d p r o j e c t e d d e b t . Ne t O p e r a t i n g R e v e n u e s A v a i l a b l e f o r D e b t S e r v i c e 7, 5 5 2 , 0 0 8 $ 2, 7 4 9 , 4 3 0 $ 3, 2 4 4 , 1 0 8 $ 3, 0 5 9 , 3 6 9 $ 5, 8 2 2 , 4 2 3 $ 7, 2 9 3 , 4 7 3 $ Le s s : E x i s t i n g D e b t S e r v i c e (1 , 8 7 6 , 4 8 2 ) $ (1 , 8 7 6 , 4 8 2 ) $ (1 , 4 1 5 , 7 8 0 ) $ (1 , 4 1 5 , 7 7 9 ) $ (1 8 6 , 1 5 7 ) $ (1 8 6 , 1 5 7 ) $ Le s s : P r o j e c t e d D e b t S e r v i c e (3 9 2 , 3 9 3 ) $ (5 0 8 , 6 3 7 ) $ (5 0 8 , 6 3 7 ) $ (5 0 8 , 6 3 7 ) $ (5 0 8 , 6 3 7 ) $ (5 0 8 , 6 3 7 ) $ Re v e n u e s A v a i l a b l e f o r C o v e r a g e 5, 2 8 3 , 1 3 3 $ 36 4 , 3 1 1 $ 1, 3 1 9 , 6 9 1 $ 1,1 3 4 , 9 5 3 $ 5, 1 2 7 , 6 2 9 $ 6, 5 9 8 , 6 7 9 $ To t a l D e b t S e r v i c e C o v e r a g e R a t i o 3. 3 3 x 1. 1 5 x 1. 6 9 x 1. 5 9 x 8. 3 8 x 10 . 5 0 x Feb. 11, 2025 Item #8 Page 232 of 265 2025 POTABLE AND RECYCLED WATER RATE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT POTABLE AND RECYCLED WATER COST-OF-SERVICE STUDY APPENDIX F POTABLE COST OF SERVICE ANALYSIS Feb. 11, 2025 Item #8 Page 233 of 265 CIT Y O F C A R L S B A D Wa t e r F i n a n c i a l M o d e l Po t a b l e W a t e r F u n c t i o n a l A l l o c a t i o n CO S T A L L O C A T I O N B A S I S FY E 2 0 2 5 CU S T O M E R AC C O U N T SE R V I C E ME T E R S a n d SE R V I C E S AD M I N a n d MG M T DIS T R I B U T I O N T R E A T M E N T SD C W A Va r i a b l e SD C W A F i x e d S D C W A I A C D E S A L CO N S E R V A T I O N FIR E PR O T E C T I O N CR O S S CO N N E C T I O N CO N T R O L EN G I N E E R I N G G E N E R A L AS A L L O T H E R S AL L O C A T I O N B A S I S CU S T O M E R A C C O U N T S E R V I C E 10 0 . 0 % 0% ME T E R S a n d S E R V I C E S 10 0 . 0 % 0% AD M I N a n d M G M T 10 0 . 0 % 0% DI S T R I B U T I O N 10 0 . 0 % 0% TR E A T M E N T 10 0 . 0 % 0% SD C W A V a r i a b l e 10 0 . 0 % SD C W A F i x e d 10 0 . 0 % 0% SD C W A I A C 10 0 . 0 % 0% DE S A L 10 0 . 0 % 0% CO N S E R V A T I O N 10 0 . 0 % 0% FIR E P R O T E C T I O N 10 0 . 0 % 0% CR O S S C O N N E C T I O N C O N T R O L 10 0 . 0 % 0% EN G I N E E R I N G 10 0 . 0 % 0% GE N E R A L 10 0 . 0 % 0% Sta f f A l l o c a t i o n De t e r m i n e d b a s e d o n d e t a i l e d s t a f f c o s t a l l o c a t i o n . 0.0 % 7.8 % 2 3 . 5 % 3 5 . 0 % 0 . 0 % 0.0 % 0.0 % 0.0 % 0.0 % 2.1 % 0. 0 % 6. 9 % 1 2 . 1 % 1 2 . 7 % 0% Ve h i c l e C o s t s A l l o c a t i o n De t e r m i n e d b a s e d o n t y p i c a l C M W D v e h i c l e u s e 0.0 % 2 2 . 3 % 0 . 0 % 6 5 . 0 % 0 . 0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0. 0 % 1 2 . 7 % 0 . 0 % 0.0 % 0% Un i f o r m s C o s t A l l o c a t i o n De t e r m i n e d b a s e d o n u n i f o r m e d s t a f f p o s i t i o n s 0.0 % 2 2 . 3 % 0 . 0 % 6 5 . 0 % 0 . 0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0. 0 % 1 2 . 7 % 0 . 0 % 0.0 % 0% MIS C E L L A N E O U S P R O F E S S I O N A L S E R V I C E S ( 7 4 9 0 ) De t e r m i n e d b a s e d o n l i n e i t e m a l l o c a t i o n 4.6 % 7.6 % 2 3 . 6 % 2 6 . 0 % 0 . 0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.1 % 0. 0 % 0. 2 % 2 8 . 3 % 9 . 6 % 0% MIS C E L L A N E O U S O U T S I D E S E R V I C E S ( 7 5 5 0 ) De t e r m i n e d b a s e d o n l i n e i t e m a l l o c a t i o n 0.4 % 3.0 % 0.1 % 8 8 . 5 % 6 . 9 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0. 0 % 0. 0 % 0.0 % 1.2 % As W e i g h e d A v e r a g e 10 0 % O& M E X P E N D I T U R E S CU S T O M E R AC C O U N T SE R V I C E ME T E R S a n d SE R V I C E S AD M I N a n d MG M T DIS T R I B U T I O N T R E A T M E N T SD C W A Va r i a b l e SD C W A F i x e d S D C W A I A C D E S A L CO N S E R V A T I O N FIR E PR O T E C T I O N CR O S S CO N N E C T I O N CO N T R O L EN G I N E E R I N G G E N E R A L AS A L L O T H E R S WA T E R O P E R A T I N G E X P E N D I T U R E S Pe r s o n n e l Re g S a l a r i e s 3,1 4 5 , 2 4 1 $ St a f f A l l o c a t i o n - $ 24 4 , 6 3 5 $ 74 0 , 4 4 1 $ 1, 1 0 0 , 1 5 4 $ - $ - $ - $ - $ - $ 64 , 4 9 0 $ - $ 21 6 , 3 8 5 $ 37 9 , 7 4 1 $ 39 9 , 3 9 5 $ - $ Ha z a r d P a y 44 , 3 7 0 St a f f A l l o c a t i o n - 3,4 5 1 10 , 4 4 5 15 , 5 2 0 - - - - - 91 0 - 3, 0 5 3 5,3 5 7 5,6 3 4 - In c e n t i v e P a y - St a f f A l l o c a t i o n - - - - - - - - - - - - - - - Ot h e r P e r s o n n e l - St a f f A l l o c a t i o n - - - - - - - - - - - - - - - IO D W o r k e r ' s C o m p - St a f f A l l o c a t i o n - - - - - - - - - - - - - - - Ov e r t i m e S a l a r i e s 13 0 , 0 0 0 St a f f A l l o c a t i o n - 10 , 1 1 1 30 , 6 0 4 45 , 4 7 2 - - - - - 2, 6 6 6 - 8, 9 4 4 15 , 6 9 6 16 , 5 0 8 - St a n d b y P a y 24 , 4 9 2 St a f f A l l o c a t i o n - 1,9 0 5 5,7 6 6 8,5 6 7 - - - - - 50 2 - 1, 6 8 5 2,9 5 7 3,1 1 0 - Pa r t t i m e S a l a r i e s - St a f f A l l o c a t i o n - - - - - - - - - - - - - - - In t e r n S a l a r i e s 13 , 2 7 0 St a f f A l l o c a t i o n - 1,0 3 2 3,1 2 4 4,6 4 2 - - - - - 27 2 - 91 3 1,6 0 2 1,6 8 5 - El e c t e d O f f i c i a l s ' S a l a r i e s 8,3 2 0 St a f f A l l o c a t i o n - 64 7 1,9 5 9 2,9 1 0 - - - - - 17 1 - 57 2 1,0 0 5 1,0 5 7 - Te m p o r a r y H e l p 62 , 4 0 0 St a f f A l l o c a t i o n - 4,8 5 3 14 , 6 9 0 21 , 8 2 7 - - - - - 1, 2 7 9 - 4, 2 9 3 7,5 3 4 7,9 2 4 - He a l t h I n s u r a n c e 63 8 , 3 5 4 St a f f A l l o c a t i o n - 49 , 6 5 1 15 0 , 2 7 9 22 3 , 2 8 6 - - - - - 13 , 0 8 9 - 43 , 9 1 7 77 , 0 7 2 81 , 0 6 1 - Lif e I n s u r a n c e 2,1 7 2 St a f f A l l o c a t i o n - 16 9 51 1 76 0 - - - - - 45 - 14 9 26 2 27 6 - AD & D C i t y P a i d 1,0 8 6 St a f f A l l o c a t i o n - 84 25 6 38 0 - - - - - 22 - 75 13 1 13 8 - Vis i o n I n s u r a n c e - St a f f A l l o c a t i o n - - - - - - - - - - - - - - - Me d i c a r e 47 , 8 4 2 St a f f A l l o c a t i o n - 3,7 2 1 11 , 2 6 3 16 , 7 3 4 - - - - - 98 1 - 3, 2 9 1 5,7 7 6 6,0 7 5 - MT G P h y s i c a l s - St a f f A l l o c a t i o n - - - - - - - - - - - - - - - Ce l l P h o n e A l l o w a n c e - St a f f A l l o c a t i o n - - - - - - - - - - - - - - - Au t o A l l o w a n c e 1,6 9 0 St a f f A l l o c a t i o n - 13 1 39 8 59 1 - - - - - 35 - 11 6 20 4 21 5 - Ea r n e d L e a v e A c c r u a l - St a f f A l l o c a t i o n - - - - - - - - - - - - - - - He a l t h y E m p A w a r d s - St a f f A l l o c a t i o n - - - - - - - - - - - - - - - Fin a l V a c a t i o n P a y - St a f f A l l o c a t i o n - - - - - - - - - - - - - - - Fin a l S i c k L e a v e P a y - St a f f A l l o c a t i o n - - - - - - - - - - - - - - - Dis a b i l i t y 18 , 9 3 4 St a f f A l l o c a t i o n - 1,4 7 3 4,4 5 7 6,6 2 3 - - - - - 38 8 - 1, 3 0 3 2,2 8 6 2,4 0 4 - Un e m p l o y m e n t 16 , 4 9 0 St a f f A l l o c a t i o n - 1,2 8 3 3,8 8 2 5,7 6 8 - - - - - 33 8 - 1, 1 3 4 1,9 9 1 2,0 9 4 - FY E 2 0 2 5 Feb. 11, 2025 Item #8 Page 234 of 265 CIT Y O F C A R L S B A D Wa t e r F i n a n c i a l M o d e l Po t a b l e W a t e r F u n c t i o n a l A l l o c a t i o n CO S T A L L O C A T I O N B A S I S FY E 2 0 2 5 CU S T O M E R AC C O U N T SE R V I C E ME T E R S a n d SE R V I C E S AD M I N a n d MG M T DIS T R I B U T I O N T R E A T M E N T SD C W A Va r i a b l e SD C W A F i x e d S D C W A I A C D E S A L CO N S E R V A T I O N FIR E PR O T E C T I O N CR O S S CO N N E C T I O N CO N T R O L EN G I N E E R I N G G E N E R A L AS A L L O T H E R S Wo r k e r ' s C o m p e n s a t i o n 82 , 2 1 2 St a f f A l l o c a t i o n - 6,3 9 4 19 , 3 5 4 28 , 7 5 6 - - - - - 1, 6 8 6 - 5, 6 5 6 9,9 2 6 10 , 4 4 0 - PE R S 41 5 , 1 7 2 St a f f A l l o c a t i o n - 32 , 2 9 2 97 , 7 3 8 14 5 , 2 2 0 - - - - - 8, 5 1 3 - 28 , 5 6 3 50 , 1 2 6 52 , 7 2 0 - PE R S ( G A S B 6 8 C o n t r a A c c o u n t ) - St a f f A l l o c a t i o n - - - - - - - - - - - - - - - PE R S - R e p a y m e n t - St a f f A l l o c a t i o n - - - - - - - - - - - - - - - OP E B E x p e n s e - St a f f A l l o c a t i o n - - - - - - - - - - - - - - - PE R S U n f u n d e d L i a b i l i t y E x p e n s e 53 3 , 1 1 8 St a f f A l l o c a t i o n - 41 , 4 6 6 12 5 , 5 0 5 18 6 , 4 7 6 - - - - - 10 , 9 3 1 - 36 , 6 7 7 64 , 3 6 6 67 , 6 9 7 - So c i a l S e c u r i t y - St a f f A l l o c a t i o n - - - - - - - - - - - - - - - De f e r r e d C o m p 49 7 St a f f A l l o c a t i o n - 39 11 7 17 4 - - - - - 10 - 34 60 63 - De f C o m p M a t c h - St a f f A l l o c a t i o n - - - - - - - - - - - - - - - Ot h e r P e r s o n n e l - St a f f A l l o c a t i o n - - - - - - - - - - - - - - - Ma i n t e n a n c e & E q u i p m e n t Of f i c e E q u i p R e n t a l - $ St a f f A l l o c a t i o n - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Ot h e r M a c h & E q u i p 11 , 0 1 9 DIS T R I B U T I O N - - - 11 , 0 1 9 - - - - - - - - - - - Ve h i c l e R e n t a l s 17 , 8 3 6 Ve h i c l e C o s t s A l l o c a t i o n - 3,9 7 6 - 11 , 5 8 8 - - - - - - - 2, 2 7 2 - - - Mis c R e n t a l s 53 , 0 4 0 Ge n e r a l - - - - - - - - - - - - - 53 , 0 4 0 - Mis c L e a s e s - Ge n e r a l - - - - - - - - - - - - - - - Of f i c e E q u i p M a i n t e n a n c e - AD M I N a n d M G M T - - - - - - - - - - - - - - - Co m m u n i c a t i o n E q u i p M a i n t e n a n c e 3,1 2 0 AD M I N a n d M G M T - - 3,1 2 0 - - - - - - - - - - - - So f t w a r e M a i n t e n a n c e 24 , 7 2 8 AD M I N a n d M G M T - - 24 , 7 2 8 - - - - - - - - - - - - Co m p u t e r M a i n t e n a n c e - Ge n e r a l - - - - - - - - - - - - - - - Ve h i c l e M a i n t 31 , 2 0 0 Ve h i c l e C o s t s A l l o c a t i o n - 6,9 5 5 - 20 , 2 7 0 - - - - - - - 3, 9 7 5 - - - Wa s h a n d W a x 24 , 3 8 8 Ve h i c l e C o s t s A l l o c a t i o n - 5,4 3 7 - 15 , 8 4 4 - - - - - - - 3, 1 0 7 - - - Ot h e r E q u i p M a i n t e n a n c e 10 4 Ge n e r a l - - - - - - - - - - - - - 10 4 - Ca r W a s h R e p a i r s - St a f f A l l o c a t i o n - - - - - - - - - - - - - - - Pip e l i n e M a i n t e n a n c e 56 , 6 8 0 Di s t r i b u t i o n - - - 56 , 6 8 0 - - - - - - - - - - - Fir e H y d r a n t M a i n t e n a n c e - C i t y 40 , 5 2 1 Fir e P r o t e c t i o n - - - - - - - - - - 40 , 5 2 1 - - - - FIR E H Y D R A N T M A I N T E N A N C E - O T H E R 15 , 6 0 0 Fir e P r o t e c t i o n - - - - - - - - - - 15 , 6 0 0 - - - - Ro u t i n e B u i l d i n g M a i n t e n a n c e 5,2 0 0 Ge n e r a l - - - - - - - - - - - - - 5,2 0 0 - As p h a l t R e p a i r s 10 4 , 0 0 0 Di s t r i b u t i o n - - - 10 4 , 0 0 0 - - - - - - - - - - - St r e e t S w e e p i n g - Ge n e r a l - - - - - - - - - - - - - - - Ma i n t e n a n c e , R e p a i r a n d R e h a b 13 , 2 7 0 Ge n e r a l - - - - - - - - - - - - - 13 , 2 7 0 - Au d i t - Ge n e r a l - - - - - - - - - - - - - - - Le g a l 60 , 2 2 3 AD M I N a n d M G M T - - 60 , 2 2 3 - - - - - - - - - - - - Ad m i n i s t r a t i v e 46 , 8 0 0 AD M I N a n d M G M T - - 46 , 8 0 0 - - - - - - - - - - - - Cla i m s A d m i n - Ge n e r a l - - - - - - - - - - - - - - - Mis c P r o f e s s i o n a l S e r v i c e s 77 7 , 2 5 5 MIS C E L L A N E O U S P R O F E S S I O N A L S E R V I C E S ( 7 4 9 0 ) 35 , 6 2 1 59 , 1 3 2 18 3 , 1 5 2 20 1 , 9 7 0 - - - - - 56 4 - 1, 8 9 2 22 0 , 1 9 0 74 , 7 3 3 - En c i n a S e r v i c e s - Ge n e r a l - - - - - - - - - - - - - - - Cit y G e n e r a t e d - Ge n e r a l - - - - - - - - - - - - - - - Cit i z e n G e n e r a t e d - Ge n e r a l - - - - - - - - - - - - - - - Mis c e l l a n e o u s O u t s i d e S e r v i c e s 55 3 , 1 9 9 MIS C E L L A N E O U S O U T S I D E S E R V I C E S ( 7 5 5 0 ) 2,1 7 1 16 , 3 7 3 28 1 48 9 , 3 6 4 37 , 9 8 7 - - - - 24 - 82 14 4 6,7 7 2 - Ba n k S e r v i c e s 54 , 5 5 2 AD M I N a n d M G M T - - 54 , 5 5 2 - - - - - - - - - - - - Bo o k B i n d i n g - AD M I N a n d M G M T - - - - - - - - - - - - - - - Co m m A r t s S u p p o r t - AD M I N a n d M G M T - - - - - - - - - - - - - - - Re g u l a t o r y / P e r m i t t i n g F e e s 16 4 , 5 8 9 AD M I N a n d M G M T - - 16 4 , 5 8 9 - - - - - - - - - - - - Mis c S e r v i c e s - Ge n e r a l - - - - - - - - - - - - - - - Cu s t o m e r S e r v i c e C h a r g e 96 3 , 1 7 4 SD C W A F i x e d - - - - - - 96 3 , 1 7 4 - - - - - - - - Em e r g e n c y S t o r a g e C h a r g e 2,2 2 9 , 4 9 2 SD C W A F i x e d - - - - - - 2,2 2 9 , 4 9 2 - - - - - - - - In f r a s t r u c t u r e A c c e s s C h a r g e 2,0 7 1 , 3 7 4 SD C W A I A C - - - - - - - 2,0 7 1 , 3 7 4 - - - - - - - Su p p l y R e l i a b i l i t y C h a r g e 1,6 4 6 , 5 2 6 SD C W A F i x e d - - - - - - 1,6 4 6 , 5 2 6 - - - - - - - - Fix e d T r a n s p o r t a t i o n C h a r g e 52 0 , 7 9 4 SD C W A F i x e d - - - - - - 52 0 , 7 9 4 - - - - - - - - MW D C a p a c i t y R e s e r v a t i o n C h a r g e 26 2 , 8 3 6 SD C W A F i x e d - - - - - - 26 2 , 8 3 6 - - - - - - - - MW D R e a d i n e s s t o S e r v i c e C h a r g e 39 5 , 5 5 6 SD C W A F i x e d - - - - - - 39 5 , 5 5 6 - - - - - - - - La u n d r y a n d U n i f o r m M a i n t e n a n c e 8,3 2 0 Un i f o r m s C o s t A l l o c a t i o n - 1,8 5 5 - 5,4 0 5 - - - - - - - 1, 0 6 0 - - - Feb. 11, 2025 Item #8 Page 235 of 265 CIT Y O F C A R L S B A D Wa t e r F i n a n c i a l M o d e l Po t a b l e W a t e r F u n c t i o n a l A l l o c a t i o n CO S T A L L O C A T I O N B A S I S FY E 2 0 2 5 CU S T O M E R AC C O U N T SE R V I C E ME T E R S a n d SE R V I C E S AD M I N a n d MG M T DIS T R I B U T I O N T R E A T M E N T SD C W A Va r i a b l e SD C W A F i x e d S D C W A I A C D E S A L CO N S E R V A T I O N FIR E PR O T E C T I O N CR O S S CO N N E C T I O N CO N T R O L EN G I N E E R I N G G E N E R A L AS A L L O T H E R S El e c t r i c a l / S c a d a S e r v i c e s 11 2 , 1 3 2 Di s t r i b u t i o n - - - 11 2 , 1 3 2 - - - - - - - - - - - Wa t e r S a m p l i n g S e r v i c e s 18 2 , 7 5 3 TR E A T M E N T - - - - 18 2 , 7 5 3 - - - - - - - - - - Wa t e r C o n s e r v a t i o n S e r v i c e s 11 , 7 0 0 Co n s e r v a t i o n - - - - - - - - - 11 , 7 0 0 - - - - - La n d s c a p i n g S e r v i c e s 17 6 , 8 7 1 GE N E R A L - - - - - - - - - - - - - 17 6 , 8 7 1 - Ad s a n d P u b l i s h i n g 52 0 AD M I N a n d M G M T - - 52 0 - - - - - - - - - - - - Du e s a n d S u b s c r i p t i o n s 44 , 8 4 0 AD M I N a n d M G M T - - 44 , 8 4 0 - - - - - - - - - - - - Bo o k s a n d P u b l i c a t i o n s 62 4 AD M I N a n d M G M T - - 62 4 - - - - - - - - - - - - Au d i o - V i s u a l M a t e r i a l s - Ge n e r a l - - - - - - - - - - - - - - - Pri n t i n g 12 , 4 8 0 Cu s t o m e r A c c o u n t S e r v i c e 12 , 4 8 0 - - - - - - - - - - - - - - Po s t a g e 9,3 6 0 Cu s t o m e r A c c o u n t S e r v i c e 9,3 6 0 - - - - - - - - - - - - - - Of f i c e S u p p l i e s 11 , 4 4 0 AD M I N a n d M G M T - - 11 , 4 4 0 - - - - - - - - - - - - Of f i c e F u r n i t u r e & E q u i p m e n t 15 , 6 0 0 AD M I N a n d M G M T - - 15 , 6 0 0 - - - - - - - - - - - - Co m p u t e r S o f t w a r e 10 , 4 0 0 AD M I N a n d M G M T - - 10 , 4 0 0 - - - - - - - - - - - - Mis c . C o m p u t e r H a r d w a r e 8,3 2 0 AD M I N a n d M G M T - - 8,3 2 0 - - - - - - - - - - - - Pro m o M a t e r i a l s 6,2 4 0 AD M I N a n d M G M T - - 6,2 4 0 - - - - - - - - - - - - Pre s c h o o l - Ge n e r a l - - - - - - - - - - - - - - - Fo o d E x p e n s e - Ge n e r a l - - - - - - - - - - - - - - - He a t a n d L i g h t 14 2 , 6 9 2 DIS T R I B U T I O N - - - 14 2 , 6 9 2 - - - - - - - - - - - Te l e p h o n e & C o m m u n i c a t i o n s 14 , 2 8 0 St a f f A l l o c a t i o n - 1,1 1 1 3,3 6 2 4,9 9 5 - - - - - 29 3 - 98 2 1,7 2 4 1,8 1 3 - Wa s t e D i s p o s a l S e r v i c e s 19 , 1 0 6 St a f f A l l o c a t i o n - 1,4 8 6 4,4 9 8 6,6 8 3 - - - - - 39 2 - 1, 3 1 4 2,3 0 7 2,4 2 6 - Wa t e r 20 , 2 8 8 St a f f A l l o c a t i o n - 1,5 7 8 4,7 7 6 7,0 9 6 - - - - - 41 6 - 1, 3 9 6 2,4 4 9 2,5 7 6 - Bu i l d i n g M a i n t e n a n c e - Ge n e r a l - - - - - - - - - - - - - - - El e c t r i c a l S u p p l i e s - Ge n e r a l - - - - - - - - - - - - - - - Ja n i t o r i a l S u p p l i e s - Ge n e r a l - - - - - - - - - - - - - - - Sig n M a t e r i a l s - Ge n e r a l - - - - - - - - - - - - - - - Pa r t s - V e h i c l e s - Ge n e r a l - - - - - - - - - - - - - - - Pa r t s - E q u i p 21 4 , 9 9 7 Di s t r i b u t i o n - - - 21 4 , 9 9 7 - - - - - - - - - - - Ro c k a n d M i n e r a l P r o d u c t s 15 , 6 0 0 Di s t r i b u t i o n - - - 15 , 6 0 0 - - - - - - - - - - - As p h a l t 5,2 0 0 Di s t r i b u t i o n - - - 5,2 0 0 - - - - - - - - - - - Sm a l l T o o l s 8,3 2 0 Di s t r i b u t i o n - - - 8,3 2 0 - - - - - - - - - - - Sa f e t y E q u i p m e n t 46 , 6 9 6 St a f f A l l o c a t i o n - 3,6 3 2 10 , 9 9 3 16 , 3 3 3 - - - - - 95 7 - 3, 2 1 3 5,6 3 8 5,9 3 0 - Un i f o r m s a n d A c c e s s o r i e s 7,5 7 5 Un i f o r m s C o s t A l l o c a t i o n - 1,6 8 9 - 4,9 2 2 - - - - - - - 96 5 - - - Me t e r s / F i t t i n g s - N e w D e v e l o p m e n t 65 , 4 6 1 Me t e r s a n d S e r v i c e s - 65 , 4 6 1 - - - - - - - - - - - - - Me t e r s / F i t t i n g s - R e p l a c e m e n t 16 9 , 6 1 3 Me t e r s a n d S e r v i c e s - 16 9 , 6 1 3 - - - - - - - - - - - - - Fir e H o s e a n d A p p l i a n c e s - Ge n e r a l - - - - - - - - - - - - - - - Re s c u e E q u i p m e n t - Ge n e r a l - - - - - - - - - - - - - - - Pe r s o n a l P r o t e c t i v e E q u i p m e n t - Ge n e r a l - - - - - - - - - - - - - - - Bre a t h i n g A p p a r a t u s E q u i p m e n t - Ge n e r a l - - - - - - - - - - - - - - - Au t o m a t e d M e t e r P r o g r a m - Ge n e r a l - - - - - - - - - - - - - - - Ga s o l i n e a n d O i l 2,6 2 5 Di s t r i b u t i o n - - - 2,6 2 5 - - - - - - - - - - - Pro p a n e 52 0 Di s t r i b u t i o n - - - 52 0 - - - - - - - - - - - Ot h e r P e t r o l P r o d u c t s - Ge n e r a l - - - - - - - - - - - - - - - Ch e m i c a l s 71 , 9 0 9 TR E A T M E N T - - - - 71 , 9 0 9 - - - - - - - - - - CM W D P u r c W a t e r - O u t s i d e A g e n c y 23 , 5 9 4 , 9 3 6 SD C W A V a r i a b l e - - - - - 23 , 5 9 4 , 9 3 6 - - - - - - - - - De s a l C o s t s 9,9 8 4 , 4 1 9 De s a l - - - - - - - - 9,9 8 4 , 4 1 9 - - - - - - Mis c S u p p l i e s 46 , 8 0 0 Ge n e r a l - - - - - - - - - - - - - 46 , 8 0 0 - Em p l o y e e T r a i n i n g 6,2 4 0 St a f f A l l o c a t i o n - 48 5 1,4 6 9 2,1 8 3 - - - - - 12 8 - 42 9 75 3 79 2 - Tu i t i o n R e i m b u r s e m e n t - Ge n e r a l - - - - - - - - - - - - - - - Tr a i n i n g / T r a i n i n g R e l a t e d T r a v e l 16 , 0 0 6 St a f f A l l o c a t i o n - 1,2 4 5 3,7 6 8 5,5 9 8 - - - - - 32 8 - 1, 1 0 1 1,9 3 2 2,0 3 2 - EX C L U D E D De p r e c i a t i o n 5,0 5 8 , 0 0 0 Pro p T a x e s P D 2,9 8 4 $ Ge n e r a l - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 2,9 8 4 $ - $ Co n f e r e n c e T r a v e l 3,9 0 0 St a f f A l l o c a t i o n - 30 3 91 8 1,3 6 4 - - - - - 80 - 26 8 47 1 49 5 - Mis c . M e a l s / M i l e s 4,0 3 0 St a f f A l l o c a t i o n - 31 3 94 9 1,4 1 0 - - - - - 83 - 27 7 48 7 51 2 - Ba d D e b t E x p - O t h e r I n v / B i l l s 23 , 9 2 0 AD M I N a n d M G M T - - 23 , 9 2 0 - - - - - - - - - - - - Feb. 11, 2025 Item #8 Page 236 of 265 CIT Y O F C A R L S B A D Wa t e r F i n a n c i a l M o d e l Po t a b l e W a t e r F u n c t i o n a l A l l o c a t i o n CO S T A L L O C A T I O N B A S I S FY E 2 0 2 5 CU S T O M E R AC C O U N T SE R V I C E ME T E R S a n d SE R V I C E S AD M I N a n d MG M T DIS T R I B U T I O N T R E A T M E N T SD C W A Va r i a b l e SD C W A F i x e d S D C W A I A C D E S A L CO N S E R V A T I O N FIR E PR O T E C T I O N CR O S S CO N N E C T I O N CO N T R O L EN G I N E E R I N G G E N E R A L AS A L L O T H E R S Dis p o s a l o f A s s e t s - Ge n e r a l - - - - - - - - - - - - - - - Re g O v e r / S h o r t - Ge n e r a l - - - - - - - - - - - - - - - Se t t l e m e n t s - Ge n e r a l - - - - - - - - - - - - - - - In t e r e s t o n D e p o s i t - Ge n e r a l - - - - - - - - - - - - - - - In t e r f u n d S e r v i c e s - Ge n e r a l - - - - - - - - - - - - - - - Mis c E x p e n d i t u r e s - Ge n e r a l - - - - - - - - - - - - - - - Co n t i n g e n c i e s - Ge n e r a l - - - - - - - - - - - - - - - Ve h i c l e D i r e c t C h a r g e s 3,9 4 3 Ve h i c l e C o s t s A l l o c a t i o n - 87 9 - 2,5 6 1 - - - - - - - 50 2 - - - Ve h i c l e M a i n t e n a n c e 17 4 , 8 0 3 Ve h i c l e C o s t s A l l o c a t i o n - 38 , 9 6 9 - 11 3 , 5 6 6 - - - - - - - 22 , 2 6 8 - - - Ve h i c l e R e p l a c e m e n t 20 2 , 0 2 8 Ve h i c l e C o s t s A l l o c a t i o n - 45 , 0 3 8 - 13 1 , 2 5 4 - - - - - - - 25 , 7 3 6 - - - St r e e t L i g h t i n g - Ge n e r a l - - - - - - - - - - - - - - - Me d i a n M a i n t e n a n c e - Ge n e r a l - - - - - - - - - - - - - - - Ge n e r a l L a b 69 5 , 3 8 6 DIS T R I B U T I O N - - - 69 5 , 3 8 6 - - - - - - - - - - - Co p y S e r v i c e s - Ge n e r a l - - - - - - - - - - - - - - - Re c o r d s M a n a g e m e n t I n t e r d e p t - Ge n e r a l - - - - - - - - - - - - - - - In f o r m a t i o n T e c h n o l o g i e s 77 7 , 4 3 4 ME T E R S a n d S E R V I C E S - 77 7 , 4 3 4 - - - - - - - - - - - - - Mis c I n t e r d e p a r t m e n t a l C h a r g e s 2,0 6 2 , 6 1 4 AD M I N a n d M G M T - - 2, 0 6 2 , 6 1 4 - - - - - - - - - - - - Mis C h g B a c k - Ge n e r a l - - - - - - - - - - - - - - - Ut i l i t y B i l l i n g C h a r g e b a c k - Ge n e r a l - - - - - - - - - - - - - - - Fis c a l A g e n t F e e s - Ge n e r a l - - - - - - - - - - - - - - - Arb i t r a g e C o s t s - Ge n e r a l - - - - - - - - - - - - - - - Mis c D e b t E x p e n s e - Ge n e r a l - - - - - - - - - - - - - - - Pri n c i p a l In c l u d e d s e p a r a t e l y o n C o S In t e r e s t E x p e n s e In c l u d e d s e p a r a t e l y o n C o S In t E x p - C a p i t a l i z e d I n t e r e s t - Ge n e r a l - - - - - - - - - - - - - - - Am o r t i z a t i o n E x p e n s e - Ge n e r a l - - - - - - - - - - - - - - - Is s u a n c e C o s t s - Ge n e r a l - - - - - - - - - - - - - - - Ot h e r - Ge n e r a l - - - - - - - - - - - - - - - Ad d i t i o n a l M a i n t e n a n c e & E q u i p m e n t (1 , 0 1 0 , 0 0 6 ) As W e i g h e d A v e r a g e - - - - - - - - - - - - - - (1 , 0 1 0 , 0 0 6 ) Ca p i t a l O u t l a y No n - B u d g e t e d C a p E q u i p < $ 1 0 K - $ Ge n e r a l - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Ca p i t a l O u t l a y < $ 1 0 K N e w - Ge n e r a l - - - - - - - - - - - - - - - Ca p i t a l O u t l a y < $ 1 0 K - R e p l - Ge n e r a l - - - - - - - - - - - - - - - Ca p O u t l a y - V e h i c l e s 51 , 2 7 4 Ve h i c l e C o s t s A l l o c a t i o n - 11 , 4 3 1 - 33 , 3 1 2 - - - - - - - 6, 5 3 2 - - - Co m p u t e r E q u i p > $ 1 0 K - R e p l - Ge n e r a l - - - - - - - - - - - - - - - Of f i c e E q u i p m e n t - Ge n e r a l - - - - - - - - - - - - - - - Ot h e r E q u i p m e n t - Ge n e r a l - - - - - - - - - - - - - - - Of f i c e F u r n i t u r e - Ge n e r a l - - - - - - - - - - - - - - - Re c l a s s C a p i t a l O u t l a y - Ge n e r a l - - - - - - - - - - - - - - - Ca p i t a l i z e d A s s e t s - Ge n e r a l - - - - - - - - - - - - - - - Ot h e r C a p i t a l O u t l a y - Ge n e r a l - - - - - - - - - - - - - - - Oth e r F i n a n c i n g U s e s Ot h e r O t h e r F i n a n c i n g U s e s - $ As W e i g h e d A v e r a g e - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Op e r a t i n g E x p e n d i t u r e s S u b T o t a l 53 , 3 8 9 , 9 2 8 $ 59 , 6 3 1 $ 1,6 1 7 , 7 3 2 $ 3, 9 7 3 , 4 8 4 $ 4, 2 5 8 , 7 5 0 $ 29 2 , 6 5 0 $ 23 , 5 9 4 , 9 3 6 $ 6,0 1 8 , 3 7 8 $ 2,0 7 1 , 3 7 4 $ 9,9 8 4 , 4 1 9 $ 12 1 , 2 9 2 $ 56 , 1 2 1 $ 43 4 , 1 3 3 $ 86 2 , 1 8 7 $ 1,0 5 4 , 8 4 7 $ (1 , 0 1 0 , 0 0 6 ) $ Re a l l o c a t i o n o f " A s A l l O t h e r s " (4 , 7 3 1 ) $ (1 2 8 , 3 4 4 ) $ (3 1 5 , 2 3 8 ) $ (3 3 7 , 8 7 0 ) $ (2 3 , 2 1 7 ) $ D i r e c t P a s s Th r o u g h D i r e c t P a s s Th r o u g h D i r e c t P a s s Th r o u g h D i r e c t P a s s Th r o u g h (9 , 6 2 3 ) $ (4 , 4 5 2 ) $ (3 4 , 4 4 2 ) $ (6 8 , 4 0 2 ) $ (8 3 , 6 8 7 ) $ 1,0 1 0 , 0 0 6 $ To t a l A l l o c a t i o n 53 , 3 8 9 , 9 2 8 $ 54 , 9 0 0 $ 1,4 8 9 , 3 8 9 $ 3, 6 5 8 , 2 4 6 $ 3, 9 2 0 , 8 8 0 $ 26 9 , 4 3 2 $ 23 , 5 9 4 , 9 3 6 $ 6,0 1 8 , 3 7 8 $ 2,0 7 1 , 3 7 4 $ 9,9 8 4 , 4 1 9 $ 11 1 , 6 6 9 $ 51 , 6 6 9 $ 39 9 , 6 9 1 $ 79 3 , 7 8 5 $ 97 1 , 1 6 0 $ - $ Re s u l t i n g A l l o c a t i o n 10 0 . 0 0 % 0.1 0 % 2.7 9 % 6.8 5 % 7. 3 4 % 0.5 0 % 44 . 1 9 % 11 . 2 7 % 3.8 8 % 18 . 7 0 % 0.2 1 % 0.1 0 % 0.7 5 % 1.4 9 % 1.8 2 % - Feb. 11, 2025 Item #8 Page 237 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l St a f f A l l o c a t i o n - W a t e r TIT L E BA R G A I N I N G UN I T OR G . K E Y F T E A L L O C A T I O N R A N G E MI D - P O I N T FY 2 0 2 3 M I D - P T SA L A R Y / W A G E C O S T ** U t i l i t y L o c a t o r * * CC E A 50 1 6 3 1 0 0.6 66 76 , 2 1 1 $ 45 , 7 2 7 Ac c o u n t i n g T e c h n i c i a n CC E A 50 1 6 3 1 0 0.8 47 63 , 1 2 8 50 , 5 0 2 Ad m i n i s t r a t i v e S e c r e t a r y CC E A 50 1 6 3 1 0 0. 5 5 43 60 , 6 1 1 33 , 3 3 6 AS S E T M A N A G E M E N T P R O G R A M S P E C I A L I S T CC E A 50 1 6 3 1 0 0. 3 5 84 91 , 2 0 8 31 , 9 2 3 As s o c i a t e E n g i n e e r CC E A 50 1 6 3 1 0 0. 3 5 98 10 4 , 8 1 1 36 , 6 8 4 BU Y E R / C O N T R A C T A D M I N I S T R A T O R CC E A 50 1 6 3 1 0 0.2 63 74 , 0 0 6 14 , 8 0 1 CR O S S C O N N E C T I O N C O N T R O L T E C H N I C I A N CC E A 50 1 6 3 1 0 0.5 80 87 , 6 3 0 43 , 8 1 5 CR O S S C O N N E C T I O N C O N T R O L T E C H N I C I A N CC E A 50 1 6 3 1 0 0.5 80 87 , 6 3 0 43 , 8 1 5 CR O S S C O N N E C T I O N C O N T R O L T E C H N I C I A N CC E A 50 1 6 3 1 0 0.5 80 87 , 6 3 0 43 , 8 1 5 CR O S S C O N N E C T I O N C O N T R O L T E C H N I C I A N CC E A 50 1 6 3 1 0 0.5 80 87 , 6 3 0 43 , 8 1 5 En g i n e e r i n g T e c h n i c i a n I I CC E A 50 1 6 3 1 0 0. 3 5 60 71 , 8 0 2 25 , 1 3 1 GIS A s s o c i a t e A n a l y s t CC E A 50 1 6 3 1 0 0. 3 5 70 79 , 3 3 1 27 , 7 6 6 Ma n a g e m e n t A n a l y s t MG T 50 1 6 3 1 0 0.7 89 , 1 0 8 62 , 3 7 6 Me t e r S e r v i c e s S u p e r v i s o r MG T 50 1 6 3 1 0 0.8 89 , 1 0 8 71 , 2 8 6 Me t e r S e r v i c e s W o r k e r I I CC E A 50 1 6 3 1 0 0.9 37 57 , 1 1 7 51 , 4 0 5 Me t e r S e r v i c e s W o r k e r I I CC E A 50 1 6 3 1 0 0.9 37 57 , 1 1 7 51 , 4 0 5 Me t e r S e r v i c e s W o r k e r I I CC E A 50 1 6 3 1 0 0.9 37 57 , 1 1 7 51 , 4 0 5 SC A D A S u p e r v i s o r MG T 50 1 6 3 1 0 0.4 12 7 , 2 5 4 50 , 9 0 2 Se c r e t a r y CC E A 50 1 6 3 1 0 0.7 35 56 , 0 1 4 39 , 2 1 0 Se c r e t a r y CC E A 50 1 6 3 1 0 0.7 35 56 , 0 1 4 39 , 2 1 0 SE N I O R C R O S S C O N N . C O N T R O L T E C H CC E A 50 1 6 3 1 0 0. 2 5 90 96 , 8 0 3 24 , 2 0 1 Se n i o r E n g i n e e r MG T 50 1 6 3 1 0 0. 3 5 12 7 , 2 5 4 44 , 5 3 9 Se n i o r M a n a g e m e n t A n a l y s t MG T 50 1 6 3 1 0 0.5 10 8 , 5 6 0 54 , 2 8 0 Se n i o r O f f i c e S p e c i a l i s t CC E A 50 1 6 3 1 0 0.5 27 51 , 7 0 9 25 , 8 5 4 AS S O C I A T E E N G I N E E R CC E A 50 1 6 3 1 0 0. 3 5 98 10 4 , 8 1 1 36 , 6 8 4 Ut i l i t i e s D i r e c t o r MG T 50 1 6 3 1 0 0.5 19 3 , 4 6 5 96 , 7 3 3 Ut i l i t i e s E n g i n e e r i n g M a n a g e r MG T 50 1 6 3 1 0 0. 3 5 16 6 , 3 9 2 58 , 2 3 7 Ut i l i t i e s M a i n t e n a n c e P l a n n e r MG T 50 1 6 3 1 0 0. 3 5 89 , 1 0 8 31 , 1 8 8 Ut i l i t i e s M a n a g e r MG T 50 1 6 3 1 0 0.8 16 6 , 3 9 2 13 3 , 1 1 4 Ut i l i t i e s M a n a g e r MG T 50 1 6 3 1 0 0.8 16 6 , 3 9 2 13 3 , 1 1 4 Ut i l i t i e s S e n i o r E n g i n e e r MG T 50 1 6 3 1 0 0. 3 5 12 7 , 2 5 4 44 , 5 3 9 Ut i l i t i e s S e n i o r E n g i n e e r MG T 50 1 6 3 1 0 0. 3 5 12 7 , 2 5 4 44 , 5 3 9 Feb. 11, 2025 Item #8 Page 238 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l St a f f A l l o c a t i o n - W a t e r TIT L E ** U t i l i t y L o c a t o r * * Ac c o u n t i n g T e c h n i c i a n Ad m i n i s t r a t i v e S e c r e t a r y AS S E T M A N A G E M E N T P R O G R A M S P E C I A L I S T As s o c i a t e E n g i n e e r BU Y E R / C O N T R A C T A D M I N I S T R A T O R CR O S S C O N N E C T I O N C O N T R O L T E C H N I C I A N CR O S S C O N N E C T I O N C O N T R O L T E C H N I C I A N CR O S S C O N N E C T I O N C O N T R O L T E C H N I C I A N CR O S S C O N N E C T I O N C O N T R O L T E C H N I C I A N En g i n e e r i n g T e c h n i c i a n I I GIS A s s o c i a t e A n a l y s t Ma n a g e m e n t A n a l y s t Me t e r S e r v i c e s S u p e r v i s o r Me t e r S e r v i c e s W o r k e r I I Me t e r S e r v i c e s W o r k e r I I Me t e r S e r v i c e s W o r k e r I I SC A D A S u p e r v i s o r Se c r e t a r y Se c r e t a r y SE N I O R C R O S S C O N N . C O N T R O L T E C H Se n i o r E n g i n e e r Se n i o r M a n a g e m e n t A n a l y s t Se n i o r O f f i c e S p e c i a l i s t AS S O C I A T E E N G I N E E R Ut i l i t i e s D i r e c t o r Ut i l i t i e s E n g i n e e r i n g M a n a g e r Ut i l i t i e s M a i n t e n a n c e P l a n n e r Ut i l i t i e s M a n a g e r Ut i l i t i e s M a n a g e r Ut i l i t i e s S e n i o r E n g i n e e r Ut i l i t i e s S e n i o r E n g i n e e r CM W D VE H I C L E U S E UN I F O R M ME T E R S a n d SE R V I C E S AD M I N a n d MG M T DIS T R I B U T I O N CO N S E R V A T I O N CR O S S CO N N E C T I O N CO N T R O L EN G I N E E R I N G G E N E R A L TO T A L 10 0 % 0% 10 0 % 10 0 % 0% 10 0 % 10 0 % 0% 10 0 % 10 0 % 0% 10 0 % 10 0 % 0% 10 0 % 10 0 % 0% 10 0 % y y 10 0 % 0% 10 0 % y y 10 0 % 0% 10 0 % y y 10 0 % 0% 10 0 % y y 10 0 % 0% 10 0 % 10 0 % 0% 10 0 % 10 0 % 0% 10 0 % 10 0 % 0% 10 0 % y y 10 0 % 0% 10 0 % y y 10 0 % 0% 10 0 % y y 10 0 % 0% 10 0 % y y 10 0 % 0% 10 0 % 10 0 % 0% 10 0 % 10 0 % 0% 10 0 % 10 0 % 0% 10 0 % 10 0 % 0% 10 0 % 10 0 % 0% 10 0 % 10 0 % 0% 10 0 % 10 0 % 0% 10 0 % 10 0 % 0% 10 0 % 10 0 % 0% 10 0 % 10 0 % 0% 10 0 % 10 0 % 0% 10 0 % 10 0 % 0% 10 0 % 10 0 % 0% 10 0 % 10 0 % 0% 10 0 % 10 0 % 0% 10 0 % Feb. 11, 2025 Item #8 Page 239 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l St a f f A l l o c a t i o n - W a t e r TIT L E BA R G A I N I N G UN I T OR G . K E Y F T E A L L O C A T I O N R A N G E MI D - P O I N T FY 2 0 2 3 M I D - P T SA L A R Y / W A G E C O S T Ut i l i t i e s S u p e r i n t e n d e n t MG T 50 1 6 3 1 0 0.8 12 7 , 2 5 4 10 1 , 8 0 3 Ut i l i t i e s S u p e r v i s o r MG T 50 1 6 3 1 0 0. 8 5 12 7 , 2 5 4 10 8 , 1 6 6 Ut i l i t i e s S u p e r v i s o r MG T 50 1 6 3 1 0 0. 8 5 12 7 , 2 5 4 10 8 , 1 6 6 Ut i l i t i e s T e c h n i c a l S e r v i c e s M a n a g e r MG T 50 1 6 3 1 0 0. 3 5 14 2 , 9 2 1 50 , 0 2 2 Ut i l i t y W o r k e r I CC E A 50 1 6 3 1 0 0. 8 5 54 67 , 6 8 3 57 , 5 3 1 Ut i l i t y W o r k e r I CC E A 50 1 6 3 1 0 0. 8 5 54 67 , 6 8 3 57 , 5 3 1 Ut i l i t y W o r k e r I - U F CC E A 50 1 6 3 1 0 0. 8 5 54 67 , 6 8 3 57 , 5 3 1 Ut i l i t y W o r k e r I - U F CC E A 50 1 6 3 1 0 0. 8 5 54 67 , 6 8 3 57 , 5 3 1 Ut i l i t y W o r k e r I I CC E A 50 1 6 3 1 0 0. 8 5 66 76 , 2 1 1 64 , 7 8 0 Ut i l i t y W o r k e r I I I CC E A 50 1 6 3 1 0 0. 8 5 77 85 , 0 5 1 72 , 2 9 4 Ut i l i t y W o r k e r I I I CC E A 50 1 6 3 1 0 0. 8 5 77 85 , 0 5 1 72 , 2 9 4 Wa r e h o u s e T e c h n i c i a n CC E A 50 1 6 3 1 0 0. 4 5 43 60 , 6 1 1 27 , 2 7 5 WA T E R C O N S E R V A T I O N S P E C I A L I S T CC E A 50 1 6 3 1 0 1 41 59 , 4 4 6 59 , 4 4 6 Wa t e r S y s t e m s O p e r a t o r I I CC E A 50 1 6 3 1 0 0. 8 5 89 95 , 8 4 6 81 , 4 6 9 Wa t e r S y s t e m s O p e r a t o r I I CC E A 50 1 6 3 1 0 0. 8 5 89 95 , 8 4 6 81 , 4 6 9 Wa t e r S y s t e m s O p e r a t o r I I CC E A 50 1 6 3 1 0 0. 8 5 89 95 , 8 4 6 81 , 4 6 9 Wa t e r S y s t e m s O p e r a t o r I I CC E A 50 1 6 3 1 0 0. 8 5 89 95 , 8 4 6 81 , 4 6 9 Wa t e r S y s t e m s O p e r a t o r I I I CC E A 50 1 6 3 1 0 0. 8 5 10 3 11 0 , 1 7 8 93 , 6 5 1 Al l S t a f f A l l o c a t i o n 31 . 5 0 0 4, 7 4 1 , 2 2 4 $ 2, 8 9 9 , 2 4 7 $ Re s u l t i n g A l l o c a t i o n 10 0 % St a f f w i t h C M W D V e h i c l e U s e Ve h i c l e U s e U n i t s ( A s s u m e d e q u a l t o a l l o c a t e d F T E s ) Ve h i c l e C o s t s A l l o c a t i o n FT E s w i t h U n i f o r m s Un i f o r m U n i t s ( A s s u m e d e q u a l t o a l l o c a t e d F T E s ) Un i f o r m s C o s t A l l o c a t i o n No t e : T o t a l s a l a r y c o s t i n d i c a t e d h e r e i s b a s e d o n a s s u m i n g m i d p o i n t o f r a n g e f o r e a c h F T E a n d p o s i t i o n a s a r e a s o n a b l e m e a n s of a l l o c a t i n g c o s t s . T h i s n u m b e r i s n o t a d i r e c t m a t c h t o a c t u a l o r b u d g e t e d c o s t s w h i c h r e f l e c t e a c h s p e c i f i c s t a f f m e m b e r ' s as s i g n e d c o m p e n s a t i o n l e v e l . Feb. 11, 2025 Item #8 Page 240 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l St a f f A l l o c a t i o n - W a t e r TIT L E Ut i l i t i e s S u p e r i n t e n d e n t Ut i l i t i e s S u p e r v i s o r Ut i l i t i e s S u p e r v i s o r Ut i l i t i e s T e c h n i c a l S e r v i c e s M a n a g e r Ut i l i t y W o r k e r I Ut i l i t y W o r k e r I Ut i l i t y W o r k e r I - U F Ut i l i t y W o r k e r I - U F Ut i l i t y W o r k e r I I Ut i l i t y W o r k e r I I I Ut i l i t y W o r k e r I I I Wa r e h o u s e T e c h n i c i a n WA T E R C O N S E R V A T I O N S P E C I A L I S T Wa t e r S y s t e m s O p e r a t o r I I Wa t e r S y s t e m s O p e r a t o r I I Wa t e r S y s t e m s O p e r a t o r I I Wa t e r S y s t e m s O p e r a t o r I I Wa t e r S y s t e m s O p e r a t o r I I I Al l S t a f f A l l o c a t i o n St a f f w i t h C M W D V e h i c l e U s e FT E s w i t h U n i f o r m s No t e : T o t a l s a l a r y c o s t i n d i c a t e d h e r e i s b a s e d o n a s s u m i n g m i d p o i n t o f r a n g e f o r e a c h F T E a n d p o s i t i o n a s a r e a s o n a b l e m e a n s of a l l o c a t i n g c o s t s . T h i s n u m b e r i s n o t a d i r e c t m a t c h t o a c t u a l o r b u d g e t e d c o s t s w h i c h r e f l e c t e a c h s p e c i f i c s t a f f m e m b e r ' s as s i g n e d c o m p e n s a t i o n l e v e l . CM W D VE H I C L E U S E UN I F O R M ME T E R S a n d SE R V I C E S AD M I N a n d MG M T DIS T R I B U T I O N CO N S E R V A T I O N CR O S S CO N N E C T I O N CO N T R O L EN G I N E E R I N G G E N E R A L TO T A L 10 0 % 10 0 % 10 0 % 10 0 % 10 0 % 10 0 % 10 0 % 10 0 % y y 10 0 % 0% 10 0 % y y 10 0 % 0% 10 0 % y y 10 0 % 0% 10 0 % y y 10 0 % 0% 10 0 % y y 10 0 % 0% 10 0 % y y 10 0 % 0% 10 0 % y y 10 0 % 0% 10 0 % 10 0 % 0% 10 0 % 10 0 % 0% 10 0 % y y 10 0 % 0% 10 0 % y y 10 0 % 0% 10 0 % y y 10 0 % 0% 10 0 % y y 10 0 % 0% 10 0 % y y 10 0 % 0% 10 0 % 22 5 , 5 0 2 $ 68 2 , 5 3 0 $ 1,0 1 4 , 1 0 9 $ 59 , 4 4 6 $ 19 9 , 4 6 2 $ 35 0 , 0 4 1 $ 36 8 , 1 5 7 $ 2, 8 9 9 , 2 4 7 $ 7.8 % 23 . 5 % 35 . 0 % 2. 1 % 6. 9 % 12 . 1 % 12 . 7 % 10 0 . 0 % Ve h i c l e U s e U n i t s ( A s s u m e d e q u a l t o a l l o c a t e d F T E s ) 3. 5 0 - 10 . 2 0 - 2. 0 0 - - 15 . 7 0 22 . 3 % 0. 0 % 65 . 0 % 0. 0 % 12 . 7 % 0. 0 % 0. 0 % 10 0 . 0 % Un i f o r m U n i t s ( A s s u m e d e q u a l t o a l l o c a t e d F T E s ) 3. 5 0 - 10 . 2 0 - 2. 0 0 - - 15 . 7 0 22 . 3 % 0. 0 % 65 . 0 % 0. 0 % 12 . 7 % 0. 0 % 0. 0 % 10 0 . 0 % Feb. 11, 2025 Item #8 Page 241 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Mi s c S e r v i c e s A l l o c a t i o n SO U R C E : F Y 2 4 O u t s i d e & P r o f e s s i o n a l s e r v i c e s b u d g e t . x l s x IT E M DE S C R I P T I O N / C O M M E N T S FY E 2 0 2 4 BU D G E T CU S T O M E R AC C O U N T SE R V I C E ME T E R S a n d SE R V I C E S AD M I N a n d MG M T DIS T R I B U T I O N T R E A T M E N T C O N S E R V A T I O N CR O S S CO N N E C T I O N CO N T R O L EN G I N E E R I N G G E N E R A L TO T A L MI S C E L L A N E O U S P R O F E S S I O N A L S E R V I C E S ( 7 4 9 0 ) 40 , 0 0 0 $ 10 0 . 0 % 0. 0 % 1 0 0 % 10 0 , 0 0 0 $ 10 0 . 0 % 0. 0 % 1 0 0 % 50 , 0 0 0 $ 10 0 . 0 % 1 0 0 % 75 , 0 0 0 $ 10 0 . 0 % 0. 0 % 1 0 0 % 75 , 0 0 0 $ 10 0 . 0 % 0. 0 % 1 0 0 % 37 , 2 0 8 $ 10 0 . 0 % 0. 0 % 1 0 0 % 40 , 0 0 0 $ 10 0 . 0 % 0. 0 % 1 0 0 % 40 , 0 0 0 $ 10 0 . 0 % 0. 0 % 1 0 0 % 20 , 0 0 0 $ 10 0 . 0 % 0. 0 % 1 0 0 % 25 , 0 0 0 $ 10 0 . 0 % 0. 0 % 1 0 0 % 9, 0 0 0 $ 10 0 . 0 % 0. 0 % 1 0 0 % 15 , 0 0 0 $ 10 0 . 0 % 0. 0 % 1 0 0 % 10 , 0 0 0 $ 0. 0 % 7 . 8 % 2 3 . 5 % 3 5 . 0 % 0 . 0 % 2 . 1 % 6 . 9 % 1 2 . 1 % 12 . 7 % 1 0 0 % 4, 6 0 0 $ 0. 0 % 7 . 8 % 2 3 . 5 % 3 5 . 0 % 0 . 0 % 2 . 1 % 6 . 9 % 1 2 . 1 % 12 . 7 % 1 0 0 % 2, 6 0 0 $ 0. 0 % 7 . 8 % 2 3 . 5 % 3 5 . 0 % 0 . 0 % 2 . 1 % 6 . 9 % 1 2 . 1 % 12 . 7 % 1 0 0 % 2, 1 0 0 $ 0. 0 % 7 . 8 % 2 3 . 5 % 3 5 . 0 % 0 . 0 % 2 . 1 % 6 . 9 % 1 2 . 1 % 12 . 7 % 1 0 0 % 2, 0 0 0 $ 10 0 . 0 % 0. 0 % 1 0 0 % 2, 0 0 0 $ 1 0 0 . 0 % 0. 0 % 1 0 0 % 1, 2 0 0 $ 10 0 . 0 % 1 0 0 % 55 0 , 7 0 8 $ 25 , 0 0 0 $ 41 , 5 0 1 $ 12 8 , 5 4 4 $ 14 1 , 7 5 1 $ - $ 39 6 $ 1, 3 2 8 $ 15 4 , 5 3 8 $ 52 , 4 5 1 $ 54 5 , 5 0 8 $ 10 0 . 0 % 4.6 % 7.6 % 2 3 . 6 % 26 . 0 % 0.0 % 0. 1 % 0. 2 % 2 8 . 3 % 9 . 6 % 10 0 . 0 % mis c e l l a n e o u s s a f e t y t r a i n i n g Al l S t a f f A l l o c a t i o n Co a c h i n g - S t a f f t r a i n i n g ( c h a r g e s f r o m H R ) Ra i l r o a d e a s e m e n t s a f e t y t r a i n i n g On l i n e t r a i n i n g p l a t f o r m - c e r t i f i c a t i o n c o n t a c t h o u r s Re s p i r a t o r f i t t e s t i n g Un d e r g r o u n d S e r v i c e D i g s Co u n t y o f S D f o r U t i l i t y b i l l i n g s e r v i c e s Co m p l i a n c e w / n e w E P A r u l e o n l e a d a n d c o p p e r w a t e r l i n e s Pr o c e s s S a f e t y M a n a g e m e n t / R i s k M g m t P l a n Se r v i c e s / E n v i r o n m e n t a l C o m p l i a n c e Mi s c . p r o f e s s i o n a l s e r v i c e s r e d a m s a n d r e s e r v o i r s ( s u r v e y i n g ) Ou t r e a c h On g o i n g f i n a n c i a l m o d e l u p d a t e s St r u c t u r a l E n g i n e e r f o r S a f e t y In c r e a s e b u d g e t f o r p h a s e 2 w a t e r u s e m a p p i n g F Y 2 0 2 4 Hy d r a u l i c m o d e l i n g e x p e n s e , o f f s e t b y n e w f e e Up d a t e w a t e r m a s t e r p l a n As s e t m a n a g e m e n t ( r e d o i n g r o a d m a p a n d a s n e e d e d ) Re g u l a t o r y a n d m o n i t o r i n g a n d g u i d a n c e ( w a t e r e f f i c i e n c y st a n d a r d s , w a t e r l o s s a u d i t v a l i d a t i o n ) En g i n e e r i n g - m i s c p r o f e s s i o n a l s e r v i c e s Feb. 11, 2025 Item #8 Page 242 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Mi s c S e r v i c e s A l l o c a t i o n SO U R C E : F Y 2 4 O u t s i d e & P r o f e s s i o n a l s e r v i c e s b u d g e t . x l s x IT E M DE S C R I P T I O N / C O M M E N T S FY E 2 0 2 4 BU D G E T CU S T O M E R AC C O U N T SE R V I C E ME T E R S a n d SE R V I C E S AD M I N a n d MG M T DIS T R I B U T I O N T R E A T M E N T C O N S E R V A T I O N CR O S S CO N N E C T I O N CO N T R O L EN G I N E E R I N G G E N E R A L TO T A L 5, 0 0 0 $ 10 0 . 0 % 0. 0 % 1 0 0 % 12 5 , 0 0 0 $ 10 0 . 0 % 0. 0 % 1 0 0 % 50 0 $ 10 0 . 0 % 1 0 0 % 5, 0 0 0 $ 10 0 . 0 % 0. 0 % 1 0 0 % 60 0 $ 10 0 . 0 % 1 0 0 % 35 , 0 0 0 $ 10 0 . 0 % 0. 0 % 1 0 0 % 35 , 0 0 0 $ 10 0 . 0 % 0. 0 % 1 0 0 % 40 , 0 0 0 $ 10 0 . 0 % 0. 0 % 1 0 0 % 50 , 0 0 0 $ 10 0 . 0 % 0. 0 % 1 0 0 % 5, 0 0 0 $ 10 0 . 0 % 0. 0 % 1 0 0 % 10 , 0 0 0 $ 10 0 . 0 % 0. 0 % 1 0 0 % 5, 0 0 0 $ 10 0 . 0 % 1 0 0 % 10 , 0 0 0 $ 10 0 . 0 % 0. 0 % 1 0 0 % 2, 5 0 0 $ 10 0 . 0 % 0. 0 % 1 0 0 % 4, 0 0 0 $ 10 0 . 0 % 0. 0 % 1 0 0 % 25 , 0 0 0 $ 10 0 . 0 % 0. 0 % 1 0 0 % 25 , 0 0 0 $ 10 0 . 0 % 0. 0 % 1 0 0 % 1, 1 0 0 $ 0. 0 % 7 . 8 % 2 3 . 5 % 3 5 . 0 % 0 . 0 % 2 . 1 % 6 . 9 % 1 2 . 1 % 12 . 7 % 1 0 0 % 2, 5 0 0 $ 10 0 . 0 % 0. 0 % 1 0 0 % 10 , 0 0 0 $ 10 0 . 0 % 0. 0 % 1 0 0 % 5, 0 0 0 $ 10 0 . 0 % 0. 0 % 1 0 0 % 1, 5 0 0 $ 10 0 . 0 % 0. 0 % 1 0 0 % 5, 0 0 0 $ 10 0 . 0 % 0. 0 % 1 0 0 % 2, 0 0 0 $ 1 0 0 . 0 % 0. 0 % 1 0 0 % 10 0 , 0 0 0 $ 10 0 . 0 % 0. 0 % 1 0 0 % 50 9 , 7 0 0 $ 2, 0 0 0 $ 15 , 0 8 6 $ 25 9 $ 45 0 , 8 8 5 $ 35 , 0 0 0 $ 23 $ 76 $ 13 3 $ 6, 2 4 0 $ 50 9 , 7 0 0 $ 10 0 . 0 % 0.4 % 3.0 % 0.1 % 88 . 5 % 6.9 % 0. 0 % 0. 0 % 0. 0 % 1. 2 % 10 0 . 0 % Mi n o r P W r e h a b a n d r e p a i r c o n t r a c t s Al l S t a f f A l l o c a t i o n MI S C E L L A N E O U S O U T S I D E S E R V I C E S ( 7 5 5 0 ) Cr a n e i n s p e c t i o n La s e r C u t ( c l e a n c u t a s p h a l t f o r p r o j e c t s ) Ro o f r e p a i r s a n d i n s p e c t i o n s ( p u m p s t a t i o n s ) We i g h t t e s t i n g & I n s p e c t i o n o f h o i s t ( M a e r k l e ) Ut i l i t y m a r k o u t Co u n t y o f S D f o r U t i l i t y b i l l i n g s e r v i c e s Me t e r t e s t i n g Tr e n c h s h o r i n g Cr a n e S e r v i c e ( s p e c i a l t y c r a n e c o m e s t o a s i t e ) Ge n e r a t o r m a i n t e n a n c e Ma e r k l e H y d r o G e n e r a t o r M a i n t e n a n c e / S e r v i c e he a r i n g t e s t i n g CL A - V A L M a i n t e n a n c e El e c t r i c a l Em e r g e n c i e s Eq u i p m e n t r e p a i r s Fe n c e a n d g a t e r e p a i r r e p a i r a t f a c i l i t i e s He a t i n g & A i r C o n d i t i o n i n g An i m a l a n d P e s t c o n t r o l ( u r b a n w i l d l i f e , b e e s , v e n o m o u s Re s e r v o i r i n s p e c t i o n , c l e a n i n g , m a i n t e n a n c e , r e p a i r An n u a l F i r e E x t i n g u i s h e r S e r v i c e s AM I h a r d w a r e i n s t a l l s As b e s t o s h a n d l i n g Ch l o r i n a t o r & C h l o r i n e D e t e c t o r M a i n t e n a n c e Feb. 11, 2025 Item #8 Page 243 of 265 CI T Y O F C A R L S B A D Wa t e r F i n a n c i a l M o d e l Po t a b l e Co s t o f S e r v i c e Al l o c a t i o n AL L O C A T I O N B A S I S CU S T O M E R S E R V I C E B A S E M A X D A Y M A X H O U R P R I V A T E F I R E S D C W A AS A L L OT H E R S Cu s t o m e r O n l y 96 . 2 % 3. 8 % 0% Cu s t o m e r O n l y - N o F i r e 10 0 . 0 % 0% Se r v i c e O n l y 98 . 4 % 1. 6 % 0% Se r v i c e O n l y - N o F i r e 10 0 . 0 % 0% SD C W A O n l y 10 0 . 0 % 0% De s a l F i x e d / V a r 59 . 5 % 40 . 5 % 0% Ma x D a y 10 0 . 0 % 0% Ba s e / M a x D a y 50 . 9 % 4 9 . 1 % 0% Ma x D a y / H o u r w / F i r e 47 . 7 % 5 0 . 7 % 1 . 6 % 0% Pl a n t - I n - S e r v i c e 0. 0 % 15 . 9 % 6. 0 % 38 . 7 % 37 . 7 % 1. 6 % 0. 0 % 0% As A l l O t h e r s 10 0 % OP E R A T I N G E X P E N D I T U R E S CU S T O M E R S E R V I C E B A S E M A X D A Y M A X H O U R P R I V A T E F I R E S D C W A AS A L L OT H E R S Fu n c t i o n a l i z e d O p e r a t i n g E x p e n d i t u r e s CU S T O M E R A C C O U N T S E R V I C E 54 , 9 0 0 $ Cu s t o m e r O n l y - N o F i r e 54 , 9 0 0 $ - $ - $ - $ - $ - $ - $ - $ ME T E R S a n d S E R V I C E S 1, 4 8 9 , 3 8 9 Se r v i c e O n l y - 1, 4 6 4 , 8 5 0 - - - 24 , 5 3 9 - - AD M I N a n d M G M T 3, 6 5 8 , 2 4 6 Cu s t o m e r O n l y 3, 5 1 9 , 5 5 8 - - - - 13 8 , 6 8 8 - - DI S T R I B U T I O N 3, 9 2 0 , 8 8 0 Ma x D a y / H o u r w / F i r e - - - 1, 8 6 9 , 0 9 0 1, 9 8 7 , 1 9 1 64 , 6 0 0 - - TR E A T M E N T 26 9 , 4 3 2 Ba s e / M a x D a y - - 13 7 , 2 5 8 13 2 , 1 7 4 - - - - SD C W A V a r i a b l e 23 , 5 9 4 , 9 3 6 SD C W A O n l y - - - - - - 23 , 5 9 4 , 9 3 6 - SD C W A F i x e d 6, 0 1 8 , 3 7 8 Se r v i c e O n l y - 5, 9 1 9 , 2 2 0 - - - 99 , 1 5 8 - - SD C W A I A C 2, 0 7 1 , 3 7 4 Se r v i c e O n l y - N o F i r e - 2, 0 7 1 , 3 7 4 - - - - - - DE S A L 9, 9 8 4 , 4 1 9 De s a l F i x e d / V a r - 5, 9 3 7 , 8 5 2 4, 0 4 6 , 5 6 7 - - - - - CO N S E R V A T I O N 11 1 , 6 6 9 Ma x D a y - - - 11 1 , 6 6 9 - - - - FI R E P R O T E C T I O N 51 , 6 6 9 Se r v i c e O n l y - 50 , 8 1 8 - - - 85 1 - - CR O S S C O N N E C T I O N C O N T R O L 39 9 , 6 9 1 Se r v i c e O n l y - 39 3 , 1 0 6 - - - 6, 5 8 5 - - EN G I N E E R I N G 79 3 , 7 8 5 Pl a n t - I n - S e r v i c e - 12 6 , 4 6 4 47 , 4 2 9 30 7 , 5 4 7 29 9 , 2 6 7 13 , 0 7 8 - - GE N E R A L 97 1 , 1 6 0 As A l l O t h e r s - - - - - - - 97 1 , 1 6 0 Op e r a t i n g E x p e n d i t u r e s S u b T o t a l 53 , 3 8 9 , 9 2 8 $ 3, 5 7 4 , 4 5 8 $ 15 , 9 6 3 , 6 8 4 $ 4, 2 3 1 , 2 5 3 $ 2, 4 2 0 , 4 8 0 $ 2, 2 8 6 , 4 5 7 $ 34 7 , 4 9 9 $ 2 3 , 5 9 4 , 9 3 6 $ 97 1 , 1 6 0 $ Re a l l o c a t i o n o f " A s A l l O t h e r s " 12 0 , 4 3 4 $ 53 7 , 8 6 4 $ 14 2 , 5 6 3 $ 81 , 5 5 3 $ 77 , 0 3 7 $ 11 , 7 0 8 $ D i r e c t P a s s Th r o u g h (9 7 1 , 1 6 0 ) $ To t a l A l l o c a t i o n 53 , 3 8 9 , 9 2 8 $ 3, 6 9 4 , 8 9 2 $ 16 , 5 0 1 , 5 4 8 $ 4, 3 7 3 , 8 1 7 $ 2, 5 0 2 , 0 3 3 $ 2, 3 6 3 , 4 9 5 $ 35 9 , 2 0 8 $ 2 3 , 5 9 4 , 9 3 6 $ - $ Re s u l t i n g A l l o c a t i o n 10 0 . 0 % 6. 9 % 3 0 . 9 % 8 . 2 % 4 . 7 % 4 . 4 % 0 . 7 % 4 4 . 2 % 0 . 0 % Ba s e d o n a l l o c a t e d a s s e t s Ap p l i e s t o t a l a l l o c a t i o n t o r e m a i n i n g l i n e i t e m s . Re s u l t i n g a l l o c a t i o n f r o m s y s t e m d e m a n d f a c t o r an a l y s i s . Re s u l t i n g a l l o c a t i o n f r o m s y s t e m d e m a n d f a c t o r an a l y s i s w i t h p r i v a t e f i r e . De s a l a l l o c a t i o n b a s e d o n f i x e d a n d v a r i a b l e c o s t s . Ap p l i e s t o h i g h d e m a n d w a t e r f u n c t i o n s . NO T E S FY E 2 0 2 5 Ap p l i e s t o c u s t o m e r s e r v i c e r e l a t e d f u n c t i o n s . Ap p l i e s t o c u s t o m e r s e r v i c e r e l a t e d f u n c t i o n s , e x c l u d e s f i r e . Ap p l i e s t o s e r v i c e r e l a t e d f u n c t i o n s . Ap p l i e s t o s e r v i c e r e l a t e d f u n c t i o n s , e x c l u d e s f i r e . Ap p l i e s t o c o s t s a s s o c i a t e d w i t h S D C W A o n l y . Feb. 11, 2025 Item #8 Page 244 of 265 CI T Y O F C A R L S B A D Wa t e r F i n a n c i a l M o d e l Po t a b l e Co s t o f S e r v i c e Al l o c a t i o n RA T E R E V E N U E R E Q U I R E M E N T CU S T O M E R S E R V I C E B A S E M A X D A Y M A X H O U R P R I V A T E F I R E S D C W A AS A L L OT H E R S Op e r a t i n g E x p e n s e s 53 , 3 8 9 , 9 2 8 $ Re s u l t i n g O & M A l l o c a t i o n 3, 6 9 4 , 8 9 2 $ 16 , 5 0 1 , 5 4 8 $ 4, 3 7 3 , 8 1 7 $ 2, 5 0 2 , 0 3 3 $ 2, 3 6 3 , 4 9 5 $ 35 9 , 2 0 8 $ 23 , 5 9 4 , 9 3 6 $ - $ De b t - Se r v i c e O n l y - N o F i r e - - - - - - - - Ra t e F u n d e d C a p i t a l - Se r v i c e O n l y - - - - - - - - Re p l a c e m e n t F u n d i n g ( D e p r e c i a t i o n F u n d i n g ) - Pl a n t - I n - S e r v i c e - - - - - - - - Ca s h F u n d e d C a p i t a l 6, 9 8 2 , 9 0 3 Pl a n t - I n - S e r v i c e - 1, 1 1 2 , 5 0 2 41 7 , 2 3 1 2, 7 0 5 , 4 8 1 2, 6 3 2 , 6 4 1 11 5 , 0 4 9 - - Tr a n s f e r t o C a p i t a l F u n d - Pl a n t - I n - S e r v i c e - - - - - - - - Ad d i t i o n s t o M e e t M i n i m u m F u n d B a l a n c e s - Pl a n t - I n - S e r v i c e - - - - - - - - Ca s h F l o w s (2 , 7 7 9 , 8 6 2 ) As A l l O t h e r s - - - - - - - (2 , 7 7 9 , 8 6 2 ) Le s s O f f s e t t i n g R e v e n u e s Ad j . t o R e f l e c t F u l l Y e a r I n c r e a s e 3, 6 6 1 , 9 8 7 $ As A l l O t h e r s - $ - $ - $ - $ - $ - $ - $ 3 , 6 6 1 , 9 8 7 $ SD C W A V a r i a b l e P a s s - T h r o u g h s (2 3 , 5 9 4 , 9 3 6 ) SD C W A O n l y - - - - - - ( 2 3 , 5 9 4 , 9 3 6 ) - SD C W A F i x e d P a s s - T h r o u g h s (8 , 0 0 0 , 7 1 8 ) Se r v i c e O n l y - N o F i r e - ( 8 , 0 0 0 , 7 1 8 ) - - - - - - No n - R a t e C h a r g e s f o r S e r v i c e s (4 1 0 , 1 6 8 ) As A l l O t h e r s - - - - - - - ( 4 1 0 , 1 6 8 ) De v e l o p e r F e e s - As A l l O t h e r s - - - - - - - - Ta x R e v e n u e s (3 , 6 7 9 , 7 9 6 ) Se r v i c e O n l y - N o F i r e - (3 , 6 7 9 , 7 9 6 ) - - - - - - Li c e n s e s a n d P e r m i t s - As A l l O t h e r s - - - - - - - - In t e r g o v e r n m e n t a l (2 5 , 1 1 6 ) As A l l O t h e r s - - - - - - - (2 5 , 1 1 6 ) Fi n e s & F o r f e i t u r e s (1 7 6 , 6 3 1 ) As A l l O t h e r s - - - - - - - (1 7 6 , 6 3 1 ) In c o m e f r o m P r o p & I n v e s t m e n t s (2 , 4 5 6 , 9 7 6 ) As A l l O t h e r s - - - - - - - (2 , 4 5 6 , 9 7 6 ) In t e r d e p a r t m e n t a l (4 8 , 0 4 8 ) As A l l O t h e r s - - - - - - - (4 8 , 0 4 8 ) Ot h e r R e v e n u e s (9 8 , 2 8 0 ) As A l l O t h e r s - - - - - - - (9 8 , 2 8 0 ) Ot h e r F i n a n c i n g S o u r c e s - As A l l O t h e r s - - - - - - - - Us e o f R e s e r v e s f o r C a p i t a l (6 , 9 8 2 , 9 0 3 ) Pl a n t - I n - S e r v i c e - (1 , 1 1 2 , 5 0 2 ) (4 1 7 , 2 3 1 ) (2 , 7 0 5 , 4 8 1 ) (2 , 6 3 2 , 6 4 1 ) (1 1 5 , 0 4 9 ) - - To t a l R a t e R e v e n u e s t o b e C o l l e c t e d 15 , 7 8 1 , 3 8 4 $ 3, 6 9 4 , 8 9 2 $ 4, 8 2 1 , 0 3 4 $ 4, 3 7 3 , 8 1 7 $ 2, 5 0 2 , 0 3 3 $ 2, 3 6 3 , 4 9 5 $ 35 9 , 2 0 8 $ - $ ( 2 , 3 3 3 , 0 9 5 ) $ Re a l l o c a t i o n o f " A s A l l O t h e r s " (4 7 5 , 8 9 2 ) $ (6 2 0 , 9 3 6 ) $ (5 6 3 , 3 3 6 ) $ (3 2 2 , 2 5 5 ) $ (3 0 4 , 4 1 2 ) $ (4 6 , 2 6 5 ) $ D i r e c t P a s s Th r o u g h 2, 3 3 3 , 0 9 5 $ To t a l A l l o c a t i o n 15 , 7 8 1 , 3 8 4 $ 3, 2 1 9 , 0 0 0 $ 4, 2 0 0 , 0 9 8 $ 3, 8 1 0 , 4 8 1 $ 2, 1 7 9 , 7 7 8 $ 2, 0 5 9 , 0 8 3 $ 31 2 , 9 4 3 $ - $ - $ Re s u l t i n g A l l o c a t i o n 10 0 . 0 % 20 . 4 % 26 . 6 % 24 . 1 % 13 . 8 % 13 . 0 % 2. 0 % 0. 0 % 0. 0 % FY E 2 0 2 5 Feb. 11, 2025 Item #8 Page 245 of 265 CI T Y O F C A R L S B A D Wa t e r F i n a n c i a l M o d e l Po t a b l e Co s t o f S e r v i c e Al l o c a t i o n PL A N T I N S E R V I C E RE P L A C E M E N T C O S T % T O T A L CU S T O M E R S E R V I C E B A S E M A X D A Y M A X H O U R F i r e P r o t e c t i o n S D C W A A s A l l O t h e r s La n d 11 , 5 7 3 , 8 5 7 $ 0. 7 % 10 0 % 0% Bu i l d i n g s 12 , 3 1 5 , 0 3 2 0. 8 % 10 0 % 0% Wa t e r S e r v i c e & M e t e r s 5, 5 0 3 , 5 2 1 0. 4 % 10 0 % 0% Ma c h i n e r y & E q u i p m e n t 13 , 4 4 3 , 3 0 0 0. 9 % 10 0 % 0% Di s t r i c t F i r e C o n n e c t i o n s 11 , 8 0 2 0. 0 % 10 0 % 0% Re s e r v o i r s - F r o m A M P V a l u a t i o n 32 2 , 0 0 0 , 0 0 0 20 . 7 % 0% 29 % 28 % 27 % 16 % 0% Pi p e s & P u m p i n g - F r o m A M P V a l u a t i o n 0. 0 % 10 0 % Wa t e r M a i n 1, 1 5 9 , 0 0 0 , 0 0 0 74 . 4 % 0% 0% 43 % 42 % 15 % Pu m p S t a t i o n s 34 , 0 0 0 , 0 0 0 2. 2 % 0% 0% 43 % 42 % 15 % Co n s t r u c t i o n i n P r o g r e s s - 0. 0 % 10 0 % Pl a n t - I n - S e r v i c e S u b T o t a l 1,5 5 7 , 8 4 7 , 5 1 2 $ - $ 4 2 , 8 3 5 , 7 1 0 $ 93 , 0 8 1 , 9 6 0 $ 60 3 , 5 7 7 , 9 5 0 $ 58 7 , 3 2 7 , 7 7 4 $ 23 1 , 0 2 4 , 1 1 7 $ - $ - $ Re a l l o c a t i o n o f " A s A l l O t h e r s " - $ - $ - $ - $ - $ - $ - $ - $ To t a l A l l o c a t i o n 1,5 5 7 , 8 4 7 , 5 1 2 $ - $ 4 2 , 8 3 5 , 7 1 0 $ 93 , 0 8 1 , 9 6 0 $ 60 3 , 5 7 7 , 9 5 0 $ 58 7 , 3 2 7 , 7 7 4 $ 23 1 , 0 2 4 , 1 1 7 $ - $ - $ Re s u l t i n g A l l o c a t i o n 10 0 . 0 % 0. 0 % 2. 7 % 6. 0 % 38 . 7 % 37 . 7 % 14 . 8 % 0. 0 % 0. 0 % Feb. 11, 2025 Item #8 Page 246 of 265 2025 POTABLE AND RECYCLED WATER RATE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT POTABLE AND RECYCLED WATER COST-OF-SERVICE STUDY APPENDIX G RECYCLED COST OF SERVICE ANALYSIS Feb. 11, 2025 Item #8 Page 247 of 265 CI T Y O F C A R L S B A D Re c y c l e d W a t e r F i n a n c i a l M o d e l Re c y c l e d W a t e r F u n c t i o n a l A l l o c a t i o n CO S T A L L O C A T I O N B A S I S FY E 2 0 2 5 CU S T O M E R AC C O U N T SE R V I C E ME T E R S a n d SE R V I C E S AD M I N D I S T R I B U T I O N S U P P L Y CR O S S CO N N E C T I O N CO N T R O L EN G I N E E R I N G G E N E R A L A s A l l O t h e r s AL L O C A T I O N B A S I S Cu s t o m e r A c c o u n t S e r v i c e 10 0 . 0 % 0% Me t e r s a n d S e r v i c e s 10 0 . 0 % 0% Ad m i n 10 0 . 0 % 0% Dis t r i b u t i o n 10 0 . 0 % 0% Su p p l y 10 0 . 0 % 0% Ge n e r a l It e m s t h a t p r o v i d e a g e n e r a l b e n e f i t . 10 0 . 0 % 0% St a f f A l l o c a t i o n Se e S t a f f A l l o c a t i o n . 0. 0 % 2. 6 % 1 5 . 9 % 1 9 . 1 % 0 . 0 % 2 1 . 7 % 3 3 . 1 % 7 . 5 % 0% Ve h i c l e C o s t s A l l o c a t i o n Se e S t a f f A l l o c a t i o n . 0. 0 % 9. 3 % 0. 0 % 3 0 . 6 % 0 . 0 % 5 0 . 9 % 0 . 0 % 9.3 % 0% Un i f o r m s C o s t A l l o c a t i o n Se e S t a f f A l l o c a t i o n . 0. 0 % 9. 3 % 0. 0 % 3 0 . 6 % 0 . 0 % 5 0 . 9 % 0 . 0 % 9.3 % 0% As A l l O t h e r Al l o c a t e d a s w e i g h t e d a v e r a g e o f O & M . 10 0 % PL A N T I N S E R V I C E OR I G I N A L CO S T CU S T O M E R AC C O U N T SE R V I C E ME T E R S a n d SE R V I C E S AD M I N D I S T R I B U T I O N S U P P L Y CR O S S CO N N E C T I O N CO N T R O L EN G I N E E R I N G G E N E R A L A s A l l O t h e r s Re c y c l e d M a i n s 69 , 0 9 5 , 6 7 7 $ 10 0 % 0% Re c y c l e d W a t e r S t a t i o n s 8, 2 3 8 , 0 7 0 10 0 % 0% Re c y c l e d W a t e r F a c i l i t y 16 , 0 1 3 , 1 6 6 10 0 % 0% Co n s t r u c t i o n i n P r o g r e s s - 10 0 % Pl a n t - I n - S e r v i c e S u b T o t a l 93 , 3 4 6 , 9 1 3 $ - $ - $ - $ 7 7 , 3 3 3 , 7 4 8 $ 16 , 0 1 3 , 1 6 6 $ - $ - $ Re a l l o c a t i o n o f " A s A l l O t h e r s " - $ - $ - $ - $ - $ - $ - $ To t a l A l l o c a t i o n 93 , 3 4 6 , 9 1 3 $ - $ - $ - $ 7 7 , 3 3 3 , 7 4 8 $ 16 , 0 1 3 , 1 6 6 $ - $ - $ Re s u l t i n g A l l o c a t i o n s 10 0 . 0 % 0. 0 % 0. 0 % 0. 0 % 8 2 . 8 % 1 7 . 2 % 0. 0 % 0. 0 % Op e r a t i n g E x p e n d i t u r e s FY E 2 0 2 5 CU S T O M E R AC C O U N T SE R V I C E ME T E R S a n d SE R V I C E S AD M I N D I S T R I B U T I O N S U P P L Y CR O S S CO N N E C T I O N CO N T R O L EN G I N E E R I N G G E N E R A L A s A l l O t h e r s RREC Y C L E D WA T E R OP E R A T I N G E X P E N D I T U R E S Pe r s o n n e l Re g S a l a r i e s 1, 1 6 8 , 9 0 4 $ St a f f A l l o c a t i o n - $ 3 0 , 9 0 6 $ 18 6 , 2 8 2 $ 22 3 , 2 2 4 $ - $ 2 5 4 , 1 6 8 $ 38 7 , 0 9 4 $ 87 , 2 2 9 $ - $ In c e n t i v e P a y - St a f f A l l o c a t i o n - - - - - - - - - Ha z a r d P a y 7, 1 9 6 St a f f A l l o c a t i o n - 19 0 1,1 4 7 1,3 7 4 - 1 , 5 6 5 2,3 8 3 53 7 - Ot h e r P e r s o n n e l - St a f f A l l o c a t i o n - - - - - - - - - IO D W o r k e r ' s C o m p - St a f f A l l o c a t i o n - - - - - - - - - Ov e r t i m e S a l a r i e s 41 , 6 0 0 St a f f A l l o c a t i o n - 1 , 1 0 0 6,6 3 0 7,9 4 4 - 9 , 0 4 6 13 , 7 7 6 3,1 0 4 - St a n d b y P a y 4, 3 7 8 St a f f A l l o c a t i o n - 11 6 69 8 83 6 - 95 2 1,4 5 0 32 7 - Pa r t t i m e s S a l a r i e s 10 6 , 9 3 0 St a f f A l l o c a t i o n - 2 , 8 2 7 17 , 0 4 1 20 , 4 2 0 - 2 3 , 2 5 1 35 , 4 1 1 7,9 8 0 - In t e r n S a l a r i e s 1, 8 9 6 St a f f A l l o c a t i o n - 50 30 2 36 2 - 41 2 62 8 14 1 - El e c t e d O f f i c i a l s ' S a l a r i e s - St a f f A l l o c a t i o n - - - - - - - - - Re t i r e d A n n u i t a n t P r o j e c t s 31 , 2 0 0 St a f f A l l o c a t i o n - 82 5 4,9 7 2 5,9 5 8 - 6 , 7 8 4 10 , 3 3 2 2,3 2 8 - Mg t P h y s i c a l s - St a f f A l l o c a t i o n - - - - - - - - - NO T E S Fu n c t i o n s f o r s u p p l y p r o d u c i t o n a n d p u r c h a s e . Feb. 11, 2025 Item #8 Page 248 of 265 CI T Y O F C A R L S B A D Re c y c l e d W a t e r F i n a n c i a l M o d e l Re c y c l e d W a t e r F u n c t i o n a l A l l o c a t i o n CO S T A L L O C A T I O N B A S I S FY E 2 0 2 5 CU S T O M E R AC C O U N T SE R V I C E ME T E R S a n d SE R V I C E S AD M I N D I S T R I B U T I O N S U P P L Y CR O S S CO N N E C T I O N CO N T R O L EN G I N E E R I N G G E N E R A L A s A l l O t h e r s NO T E S Te m p r o a r y H e l p - St a f f A l l o c a t i o n - - - - - - - - - He a l t h I n s u r a n c e 18 6 , 7 0 9 St a f f A l l o c a t i o n - 4 , 9 3 7 29 , 7 5 5 35 , 6 5 6 - 4 0 , 5 9 8 61 , 8 3 0 13 , 9 3 3 - Lif e I n s u r a n c e 87 9 St a f f A l l o c a t i o n - 23 14 0 16 8 - 19 1 29 1 66 - AD & D - C i t y P a i d 43 9 St a f f A l l o c a t i o n - 12 70 84 - 95 14 5 33 - Vis i o n I n s u r a n c e - St a f f A l l o c a t i o n - - - - - - - - - Me d i c a r e 18 , 0 1 4 St a f f A l l o c a t i o n - 47 6 2,8 7 1 3,4 4 0 - 3 , 9 1 7 5,9 6 5 1,3 4 4 - Ce l l P h o n e A l l o w a n c e - St a f f A l l o c a t i o n - - - - - - - - - Au t o A l l o w a n c e 50 8 St a f f A l l o c a t i o n - 13 81 97 - 11 0 16 8 38 - Ea r n e d L e a v e A c c r u a l - St a f f A l l o c a t i o n - - - - - - - - - He a l t h y E m p A w a r d s - St a f f A l l o c a t i o n - - - - - - - - - Fi n a l V a c a t i o n P a y - St a f f A l l o c a t i o n - - - - - - - - - Fi n a l S i c k L e a v e P a y - St a f f A l l o c a t i o n - - - - - - - - - Di s a b i l i t y 7, 0 3 4 St a f f A l l o c a t i o n - 18 6 1,1 2 1 1,3 4 3 - 1 , 5 2 9 2,3 2 9 52 5 - Un e m p l o y m e n t 6, 1 3 7 St a f f A l l o c a t i o n - 16 2 97 8 1,1 7 2 - 1 , 3 3 4 2,0 3 2 45 8 - Wo r k e r ' s C o m p e n s a t i o n 28 , 7 3 5 St a f f A l l o c a t i o n - 76 0 4,5 7 9 5,4 8 8 - 6 , 2 4 8 9,5 1 6 2,1 4 4 - PE R S 15 4 , 2 9 5 St a f f A l l o c a t i o n - 4 , 0 8 0 24 , 5 8 9 29 , 4 6 6 - 3 3 , 5 5 0 51 , 0 9 6 11 , 5 1 4 - OP E B E x p e n s e - St a f f A l l o c a t i o n - - - - - - - - - PE R S U n f u n d e d L i a b i l i t y E x p 19 8 , 1 2 9 St a f f A l l o c a t i o n - 5 , 2 3 9 31 , 5 7 5 37 , 8 3 7 - 4 3 , 0 8 2 65 , 6 1 2 14 , 7 8 5 - So c i a l S e c u r i t y - St a f f A l l o c a t i o n - - - - - - - - - De f f e r e d C o m p 2, 0 1 3 St a f f A l l o c a t i o n - 53 32 1 38 5 - 43 8 66 7 15 0 - De f C o m p M a t c h - St a f f A l l o c a t i o n - - - - - - - - - Ot h e r P e r s o n n e l - St a f f A l l o c a t i o n - - - - - - - - - Ma i n t e n a n c e & E q u i p m e n t Of f i c e E q u p R e n t a l - $ St a f f A l l o c a t i o n - $ - $ - $ - $ - $ - $ - $ - $ - $ Ot h e r M a c h & E q u i p - St a f f A l l o c a t i o n - - - - - - - - - Mis c R e n t a l s 52 5 Ge n e r a l - - - - - - - 52 5 - Mis c L e a s e s - Ge n e r a l - - - - - - - - - Of f i c e E q u i p M a i n t e n a n c e - St a f f A l l o c a t i o n - - - - - - - - - Co m m u n i c a t i o n E q u i p M a i n t e n a n c e - St a f f A l l o c a t i o n - - - - - - - - - So f t w a r e M a i n t e n a n c e - Ad m i n - - - - - - - - - Co m p u t e r M a i n t e n a n c e - Ad m i n - - - - - - - - - Ve h i c l e M a i n t - Ve h i c l e C o s t s A l l o c a t i o n - - - - - - - - - Wa s h a n d W a x 1, 5 7 5 Ve h i c l e C o s t s A l l o c a t i o n - 14 6 - 48 1 - 802 - 14 6 - Ot h e r E q u i p M a i n t e n a n c e 52 5 Ge n e r a l - - - - - - - 52 5 - Ca r W a s h R e p a i r s - Ge n e r a l - - - - - - - - - Pip e l i n e M a i n t e n a n c e 10 , 5 0 0 Di s t r i b u t i o n - - - 1 0 , 5 0 0 - - - - - FI R E H Y D R A N T M A I N T - C I T Y 5, 2 5 0 Di s t r i b u t i o n - - - 5 , 2 5 0 - - - - - Ro u t i n e B u i l d i n g M a i n t e a n c e 1, 0 5 0 Ge n e r a l - - - - - - - 1 , 0 5 0 - As p h a l t R e p a i r s 1, 5 7 5 Di s t r i b u t i o n - - - 1 , 5 7 5 - - - - - Ma i n t e n a n c e , R e p a i r a n d R e h a b 3, 4 0 5 Di s t r i b u t i o n - - - 3 , 4 0 5 - - - - - Au d i t - Ad m i n - - - - - - - - - Le g a l - Ad m i n - - - - - - - - - Ad m i n i s t r a t i v e - Ad m i n - - - - - - - - - Cla i m s A d m i n - Ad m i n - - - - - - - - - Feb. 11, 2025 Item #8 Page 249 of 265 CI T Y O F C A R L S B A D Re c y c l e d W a t e r F i n a n c i a l M o d e l Re c y c l e d W a t e r F u n c t i o n a l A l l o c a t i o n CO S T A L L O C A T I O N B A S I S FY E 2 0 2 5 CU S T O M E R AC C O U N T SE R V I C E ME T E R S a n d SE R V I C E S AD M I N D I S T R I B U T I O N S U P P L Y CR O S S CO N N E C T I O N CO N T R O L EN G I N E E R I N G G E N E R A L A s A l l O t h e r s NO T E S Mis c P r o f e s s i o n a l S e r v i c e s 28 9 , 6 7 6 Di s t r i b u t i o n - - - 28 9 , 6 7 6 - - - - - En c i n a S e r v i c e s 1, 9 2 6 , 0 4 4 Su p p l y - - - - 1 , 9 2 6 , 0 4 4 - - - - En c i n a S e r v i c e s ( P e n s i o n P a y o f f ) (7 5 , 8 2 3 ) Su p p l y - - - - ( 7 5 , 8 2 3 ) - - - - Cit y G e n e r a t e d - Ge n e r a l - - - - - - - - - Cit i z e n G e n e r a t e d - Ge n e r a l - - - - - - - - - Mis c e l l a n e o u s O u t s i d e S e r v i c e s 14 4 , 9 2 6 Di s t r i b u t i o n - - - 1 4 4 , 9 2 6 - - - - - Ba n k S e r v i c e s 1, 6 3 8 Ad m i n - - 1 , 6 3 8 - - - - - - Bo o k B i n d i n g - Ad m i n - - - - - - - - - Re g u l a t o r y / P e r m i t t i n g F e e s 16 , 8 3 2 Ge n e r a l - - - - - - - 1 6 , 8 3 2 - Mis c S e r v i c e s - Ge n e r a l - - - - - - - - - MW D / C W A F i x e d C h a r g e s - Ge n e r a l - - - - - - - - - La u n d r y a n d U n i f o r m M a i n t e a n c e 3, 1 5 0 Un i f o r m s C o s t A l l o c a t i o n - 29 2 - 96 3 - 1 , 6 0 4 - 29 2 - El e c t r i c a l / S C A D A s e r v i c e s 36 , 1 2 0 Di s t r i b u t i o n - - - 3 6 , 1 2 0 - - - - - La n d s c a p i n g S e r v i c e s 51 , 4 1 5 Ge n e r a l - - - - - - - 5 1 , 4 1 5 - Ad s a n d P u b l i s h i n g - Ad m i n - - - - - - - - - Du e s a n d S u b s c r i p t i o n s 6, 3 0 0 St a f f A l l o c a t i o n - 16 7 1,0 0 4 1,2 0 3 - 1 , 3 7 0 2,0 8 6 47 0 - Bo o k s a n d P u b l i c a t i o n s 52 5 St a f f A l l o c a t i o n - 14 84 10 0 - 11 4 17 4 39 - Au d i o - V i s u a l M a t e r i a l s - Ge n e r a l - - - - - - - - - Pr i n t i n g 4, 2 0 0 Cu s t o m e r A c c o u n t S e r v i c e 4,2 0 0 - - - - - - - - Po s t a g e 1, 0 5 0 Cu s t o m e r A c c o u n t S e r v i c e 1,0 5 0 - - - - - - - - Of f i c e S u p p l i e s 1, 0 5 0 St a f f A l l o c a t i o n - 28 16 7 20 1 - 22 8 34 8 78 - Of f i c e F u r n i t u r e & E q u i p m e n t 2, 6 2 5 St a f f A l l o c a t i o n - 69 41 8 50 1 - 57 1 86 9 19 6 - Co m p u t e r S o f t w a r e 5, 2 5 0 Ad m i n - - 5 , 2 5 0 - - - - - - Mis c . C o m p u t e r H a r d w a r e 3, 1 5 0 Ad m i n - - 3 , 1 5 0 - - - - - - Pr o m o M a t e r i a l s 1, 0 5 0 Ad m i n - - 1 , 0 5 0 - - - - - - Pr e s c h o o l - Ad m i n - - - - - - - - - He a t a n d L i g h t 38 7 , 7 0 4 Di s t r i b u t i o n - - - 3 8 7 , 7 0 4 - - - - - Te l e p h o n e & C o m m u n i c a t i o n s 96 3 St a f f A l l o c a t i o n - 25 15 3 18 4 - 20 9 31 9 72 - Wa s t e D i s p o a l S e r v i c e s - St a f f A l l o c a t i o n - - - - - - - - - Wa t e r 4, 8 1 5 St a f f A l l o c a t i o n - 12 7 76 7 92 0 - 1 , 0 4 7 1,5 9 5 35 9 - Bu i l d i n g M a i n t e n a n c e - Ge n e r a l - - - - - - - - - El e c t r i c a l S u p p l i e s 52 5 Di s t r i b u t i o n - - - 52 5 - - - - - Ja n i t o r i a l S u p p l i e s - Ge n e r a l - - - - - - - - - Pa r t s - V e h i c l e s - Di s t r i b u t i o n - - - - - - - - - Pa r t s - E q u i p 64 , 5 0 8 Di s t r i b u t i o n - - - 6 4 , 5 0 8 - - - - - Ro c k a n d M i n e r a l P r o d u c t s 1, 0 5 0 Di s t r i b u t i o n - - - 1 , 0 5 0 - - - - - As p h a l t 1, 0 5 0 Di s t r i b u t i o n - - - 1 , 0 5 0 - - - - - Sm a l l T o o l s 63 0 Di s t r i b u t i o n - - - 63 0 - - - - - Sa f e t y E q u i p m e n t 17 , 9 0 3 St a f f A l l o c a t i o n - 47 3 2,8 5 3 3,4 1 9 - 3 , 8 9 3 5,9 2 9 1,3 3 6 - Un i f o r m s a n d A c c e s s o r i e s 3, 1 5 0 Un i f o r m s C o s t A l l o c a t i o n - 29 2 - 96 3 - 1 , 6 0 4 - 29 2 - Me t e r s / F i t t i n g s - N e w 21 , 0 0 0 Me t e r s a n d S e r v i c e s - 2 1 , 0 0 0 - - - - - - - Me t e r s / F i t t i n g s - R e p l a c e m e n t 21 , 0 0 0 Me t e r s a n d S e r v i c e s - 2 1 , 0 0 0 - - - - - - - Fi r e H o s e a n d A p p l i a n c e s - Ge n e r a l - - - - - - - - - Re s c u e E q u i p m e n t - Ge n e r a l - - - - - - - - - Pe r s o n a l P r o t e c t i v e E q u i p m e n t - Ge n e r a l - - - - - - - - - Feb. 11, 2025 Item #8 Page 250 of 265 CI T Y O F C A R L S B A D Re c y c l e d W a t e r F i n a n c i a l M o d e l Re c y c l e d W a t e r F u n c t i o n a l A l l o c a t i o n CO S T A L L O C A T I O N B A S I S FY E 2 0 2 5 CU S T O M E R AC C O U N T SE R V I C E ME T E R S a n d SE R V I C E S AD M I N D I S T R I B U T I O N S U P P L Y CR O S S CO N N E C T I O N CO N T R O L EN G I N E E R I N G G E N E R A L A s A l l O t h e r s NO T E S Br e a t h i n g A p p a r a t u s E q u i p m e n t - Ge n e r a l - - - - - - - - - Sh o o t i n g R a n g e S u p p l i e s - Ge n e r a l - - - - - - - - - Ga s o l i n e a n d O i l - Ge n e r a l - - - - - - - - - Ch e m i c a l s - Ge n e r a l - - - - - - - - - CM W D P u r c W a t e r - O u t s i d e A g e n c y 2, 9 3 5 , 5 0 0 Su p p l y - - - - 2 , 9 3 5 , 5 0 0 - - - - CM W D P u r c h W a t e r - F r o m C i t y 18 , 9 0 0 Su p p l y - - - - 1 8 , 9 0 0 - - - - Mis c S u p p l i e s 7, 2 8 0 Ge n e r a l - - - - - - - 7 , 2 8 0 - Em p l o y e e T r a i n i n g 78 0 St a f f A l l o c a t i o n - 21 12 4 14 9 - 17 0 25 8 58 - Tu i t i o n R e i m b u r s e m e n t - St a f f A l l o c a t i o n - - - - - - - - - Tr a i n i n g / T r a i n i n g R e l a t e d T r a v e l 6, 2 7 1 St a f f A l l o c a t i o n - 16 6 99 9 1,1 9 8 - 1 , 3 6 4 2,0 7 7 46 8 - EX C L U D E D De p r e c i a t i o n 1, 5 1 7 , 4 0 0 EX C L U D E D De p r e c i a t i o n - P h a s e I I I E x p a n s i o n - Pr o p T a x e s P D - Ge n e r a l - - - - - - - - - Co n f e r e n c e / M e e t i n g T r a v e l 1, 3 8 8 St a f f A l l o c a t i o n - 37 22 1 26 5 - 30 2 46 0 10 4 - Mis c . M e a l s / M i l e s 2, 3 8 7 St a f f A l l o c a t i o n - 63 38 0 45 6 - 51 9 79 1 17 8 - Ba d D e b t E x p - O t h e r I n v / B i l l s 7, 2 8 0 Ad m i n - - 7 , 2 8 0 - - - - - - Re g O v e r / S h o r t - Ge n e r a l - - - - - - - - - Se t t l e m e n t s - Ge n e r a l - - - - - - - - - Pr i o r P e r i o d A d j u s t m e n t - Ge n e r a l - - - - - - - - - Re p a y m e n t s - Ge n e r a l - - - - - - - - - In t e r e s t o n D e p o s i t - Ge n e r a l - - - - - - - - - Mis c E x p e n d i t u r e s - Ge n e r a l - - - - - - - - - Co n t i n g e n c i e s - Ge n e r a l - - - - - - - - - Ve h i c l e D i r e c t C h a r g e s - Ve h i c l e C o s t s A l l o c a t i o n - - - - - - - - - Ve h i c l e M a i n t e a n c e 49 , 5 0 2 Ve h i c l e C o s t s A l l o c a t i o n - 4 , 5 8 4 - 1 5 , 1 2 6 - 2 5 , 2 0 9 - 4 , 5 8 4 - Ve h i c l e R e p l a c e m e n t 30 , 5 8 0 Ve h i c l e C o s t s A l l o c a t i o n - 2 , 8 3 2 - 9 , 3 4 4 - 1 5 , 5 7 3 - 2 , 8 3 2 - St r e e t L i g h t i n g - Ge n e r a l - - - - - - - - - Me d i a n M a i n t e n a c e - Ge n e r a l - - - - - - - - - Ge n e r a l L i a b 23 0 , 3 6 0 Di s t r i b u t i o n - - - 2 3 0 , 3 6 0 - - - - - Re c o r d s M a n a g e m e n t I n t e r d e p t - Ge n e r a l - - - - - - - - - In f o r m a t i o n T e c h n o l o g i e s 24 4 , 8 0 5 Me t e r s a n d S e r v i c e s - 2 4 4 , 8 0 5 - - - - - - - Mis c I n t e r d e p a r t m e n t a l C h a r g e s 65 9 , 4 7 6 Ad m i n - - 6 5 9 , 4 7 6 - - - - - - Mis C h g B a c k - Ge n e r a l - - - - - - - - - Ut i l i t y B i l l i n g C h a r g e b a c k - Ge n e r a l - - - - - - - - - Fi s c a l A g e n t F e e s - Ge n e r a l - - - - - - - - - Ar b i t r a g e C o s t s - Ge n e r a l - - - - - - - - - Pr i n c i p a l In c l u d e d s e p a r a t e l y o n C o S In t e r e s t E x p e n s e In c l u d e d s e p a r a t e l y o n C o S Ot h e r - Ge n e r a l - - - - - - - - - Ad d i t i o n a l M a i n t e n a n c e & E q u i p m e n t (1 9 9 , 1 6 0 ) As A l l O t h e r - - - - - - - - ( 1 9 9 , 1 6 0 ) Ca p i t a l O u t l a y No n - B u d g e t e d C a p E q u i p < $ 1 0 K - $ Di s t r i b u t i o n - $ - $ - $ - $ - $ - $ - $ - $ - $ Ca p i t a l O u t l a y < $ 1 0 K N e w 1, 1 9 6 Di s t r i b u t i o n - - - 1 , 1 9 6 - - - - - Ca p O u t l a y - V e h i c l e s 8, 5 4 6 Ve h i c l e C o s t s A l l o c a t i o n - 79 1 - 2 , 6 1 1 - 4 , 3 5 2 - 79 1 - Feb. 11, 2025 Item #8 Page 251 of 265 CI T Y O F C A R L S B A D Re c y c l e d W a t e r F i n a n c i a l M o d e l Re c y c l e d W a t e r F u n c t i o n a l A l l o c a t i o n CO S T A L L O C A T I O N B A S I S FY E 2 0 2 5 CU S T O M E R AC C O U N T SE R V I C E ME T E R S a n d SE R V I C E S AD M I N D I S T R I B U T I O N S U P P L Y CR O S S CO N N E C T I O N CO N T R O L EN G I N E E R I N G G E N E R A L A s A l l O t h e r s NO T E S Co m p u t e r E q u i p > $ 1 0 K - R e p l - Di s t r i b u t i o n - - - - - - - - - Of f i c e E q u i p m e n t - Di s t r i b u t i o n - - - - - - - - - Ot h e r E q u i p m e n t - Di s t r i b u t i o n - - - - - - - - - Ca p i t a l i z e d A s s e t s - Di s t r i b u t i o n - - - - - - - - - Ca p i t a l P r o j e c t s - Di s t r i b u t i o n - - - - - - - - - Ot h e r C a p i t a l O u t l a y - Di s t r i b u t i o n - - - - - - - - - Ot h e r F i n a n c i n g U s e s Ot h e r O t h e r F i n a n c i n g U s e s - $ Di s t r i b u t i o n - $ - $ - $ - $ - $ - $ - $ - $ - $ Op e r a t i n g E x p e n d i t u r e s S u b T o t a l 8, 9 3 7 , 9 6 7 $ 5, 2 5 0 $ 34 8 , 8 8 5 $ 99 8 , 1 6 8 $ 1, 5 9 1 , 8 1 0 $ 4, 8 0 4 , 6 2 1 $ 48 6 , 2 0 3 $ 66 5 , 6 3 2 $ 23 6 , 5 5 8 $ (1 9 9 , 1 6 0 ) $ Re a l l o c a t i o n o f " A s A l l O t h e r s " (1 1 4 ) $ (7 , 6 0 5 ) $ (2 1 , 7 5 7 ) $ (3 4 , 6 9 6 ) $ (1 0 4 , 7 2 5 ) $ (1 0 , 5 9 8 ) $ (1 4 , 5 0 9 ) $ (5 , 1 5 6 ) $ 19 9 , 1 6 0 $ To t a l A l l o c a t i o n 8, 9 3 7 , 9 6 7 $ 5, 1 3 6 $ 34 1 , 2 8 0 $ 97 6 , 4 1 1 $ 1, 5 5 7 , 1 1 4 $ 4, 6 9 9 , 8 9 6 $ 47 5 , 6 0 6 $ 65 1 , 1 2 3 $ 23 1 , 4 0 1 $ - $ Pe r c e n t a g e A l l o c a t i o n 10 0 . 0 % 0. 1 % 3. 8 % 10 . 9 % 17 . 4 % 52 . 6 % 5. 3 % 7. 3 % 2. 6 % 0. 0 % Feb. 11, 2025 Item #8 Page 252 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l St a f f A l l o c a t i o n - R e c y c l e d W a t e r TIT L E BA R G A I N I N G UN I T OR G . K E Y FT E AL L O C A T I O N RA N G E M I D - P O I N T FY 2 0 2 3 M I D - P T SA L A R Y / W A G E CO S T CM W D VE H I C L E US E UN I F O R M ME T E R S a n d SE R V I C E S AD M I N a n d MG M T DIS T R I B U T I O N CR O S S CO N N E C T I O N CO N T R O L EN G I N E E R I N G G E N E R A L T O T A L ** U t i l i t y L o c a t o r * * CC E A 5 0 2 6 3 1 0 0 . 1 6 6 7 6 , 2 1 1 $ 7,6 2 1 $ 10 0 % 10 0 % Ac c o u n t i n g T e c h n i c i a n CC E A 5 0 2 6 3 1 0 0 . 1 4 7 6 3 , 1 2 8 6,3 1 3 10 0 % 10 0 % Ad m i n i s t r a t i v e S e c r e t a r y CC E A 5 0 2 6 3 1 0 0 . 1 5 4 3 6 0 , 6 1 1 9,0 9 2 10 0 % 10 0 % As s e t M a n a g e m e n t P r o g r a m S p e c i a l i s t CC E A 5 0 2 6 3 1 0 0 . 1 5 8 4 9 1 , 2 0 8 13 , 6 8 1 10 0 % 10 0 % As s i s t a n t E n g i n e e r CC E A 5 0 2 6 3 1 0 1 8 2 8 9 , 3 9 8 89 , 3 9 8 10 0 % 10 0 % As s o c i a t e E n g i n e e r CC E A 5 0 2 6 3 1 0 0 . 3 9 8 1 0 4 , 8 1 1 31 , 4 4 3 10 0 % 10 0 % BU Y E R / C O N T R A C T A D M I N I S T R A T O R CC E A 5 0 2 6 3 1 0 0 . 1 6 3 7 4 , 0 0 6 7,4 0 1 10 0 % 10 0 % CR O S S C O N N E C T I O N C O N T R O L T E C H N I C I A N CC E A 5 0 2 6 3 1 0 0 . 5 8 0 8 7 , 6 3 0 43 , 8 1 5 y y 10 0 % 10 0 % CR O S S C O N N E C T I O N C O N T R O L T E C H N I C I A N CC E A 5 0 2 6 3 1 0 0 . 5 8 0 8 7 , 6 3 0 43 , 8 1 5 y y 10 0 % 10 0 % CR O S S C O N N E C T I O N C O N T R O L T E C H N I C I A N CC E A 5 0 2 6 3 1 0 0 . 5 8 0 8 7 , 6 3 0 43 , 8 1 5 y y 10 0 % 10 0 % CR O S S C O N N E C T I O N C O N T R O L T E C H N I C I A N CC E A 5 0 2 6 3 1 0 0 . 5 8 0 8 7 , 6 3 0 43 , 8 1 5 y y 10 0 % 10 0 % En g i n e e r i n g T e c h n i c i a n I I CC E A 5 0 2 6 3 1 0 0 . 3 6 0 7 1 , 8 0 2 21 , 5 4 0 10 0 % 10 0 % GI S A s s o c i a t e A n a l y s t CC E A 5 0 2 6 3 1 0 0 . 3 7 0 7 9 , 3 3 1 23 , 7 9 9 10 0 % 10 0 % Ma n a g e m e n t A n a l y s t MG T 5 0 2 6 3 1 0 0 . 1 89 , 1 0 8 8,9 1 1 10 0 % 10 0 % ME T E R S E R V I C E S W O R K E R I I I MG T 5 0 2 6 3 1 0 0 . 2 5 0 6 5 , 0 2 1 13 , 0 0 4 y y 10 0 % 10 0 % Me t e r S e r v i c e s W o r k e r I I CC E A 5 0 2 6 3 1 0 0 . 1 3 7 5 7 , 1 1 7 5,7 1 2 y y 10 0 % 10 0 % Me t e r S e r v i c e s W o r k e r I I CC E A 5 0 2 6 3 1 0 0 . 1 3 7 5 7 , 1 1 7 5,7 1 2 y y 10 0 % 10 0 % Me t e r S e r v i c e s W o r k e r I I CC E A 5 0 2 6 3 1 0 0 . 1 3 7 5 7 , 1 1 7 5,7 1 2 y y 10 0 % 10 0 % SE N I O R S C A D A & I M P L E M E N T A T I O N T E C H . 1 0 3 S E N I O R S T O R M D R A I N M A I N T . W O R K E R MG T 5 0 2 6 3 1 0 0 . 1 5 7 2 8 0 , 8 9 1 12 , 1 3 4 10 0 % 10 0 % Se c r e t a r y CC E A 5 0 2 6 3 1 0 0 . 2 3 5 5 6 , 0 1 4 11 , 2 0 3 10 0 % 10 0 % Se c r e t a r y CC E A 5 0 2 6 3 1 0 0 . 2 5 3 5 5 6 , 0 1 4 14 , 0 0 4 10 0 % 10 0 % SE N I O R C R O S S C O N N . C O N T R O L T E C H CC E A 5 0 2 6 3 1 0 0 . 7 5 9 0 9 6 , 8 0 3 72 , 6 0 2 y y 10 0 % 10 0 % Se n i o r E n g i n e e r MG T 5 0 2 6 3 1 0 0 . 3 5 12 7 , 2 5 4 44 , 5 3 9 10 0 % 10 0 % Se n i o r M a n a g e m e n t A n a l y s t MG T 5 0 2 6 3 1 0 0 . 2 5 10 8 , 5 6 0 27 , 1 4 0 10 0 % 10 0 % Se n i o r O f f i c e S p e c i a l i s t CC E A 5 0 2 6 3 1 0 0 . 2 2 7 5 1 , 7 0 9 10 , 3 4 2 10 0 % 10 0 % AS S I S T A N T E N G I N E E R CC E A 5 0 2 6 3 1 0 0 . 3 8 2 8 9 , 3 9 8 26 , 8 2 0 10 0 % 10 0 % Ut i l i t i e s D i r e c t o r MG T 5 0 2 6 3 1 0 0 . 1 5 19 3 , 4 6 5 29 , 0 2 0 10 0 % 10 0 % Ut i l i t i e s E n g i n e e r i n g M a n a g e r MG T 5 0 2 6 3 1 0 0 . 3 16 6 , 3 9 2 49 , 9 1 8 10 0 % 10 0 % Ut i l i t i e s M a i n t e n a n c e P l a n n e r MG T 5 0 2 6 3 1 0 0 . 3 5 89 , 1 0 8 31 , 1 8 8 10 0 % 10 0 % Ut i l i t i e s M a n a g e r MG T 5 0 2 6 3 1 0 0 . 2 16 6 , 3 9 2 33 , 2 7 8 10 0 % 10 0 % Ut i l i t i e s M a n a g e r MG T 5 0 2 6 3 1 0 0 . 1 5 16 6 , 3 9 2 24 , 9 5 9 10 0 % 10 0 % Ut i l i t i e s S e n i o r E n g i n e e r MG T 5 0 2 6 3 1 0 0 . 3 12 7 , 2 5 4 38 , 1 7 6 10 0 % 10 0 % Ut i l i t i e s S e n i o r E n g i n e e r MG T 5 0 2 6 3 1 0 0 . 3 12 7 , 2 5 4 38 , 1 7 6 10 0 % 10 0 % Ut i l i t i e s S u p e r i n t e n d e n t MG T 5 0 2 6 3 1 0 0 . 2 12 7 , 2 5 4 25 , 4 5 1 y y 10 0 % 10 0 % Feb. 11, 2025 Item #8 Page 253 of 265 CI T Y O F C A R L S A B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l St a f f A l l o c a t i o n - R e c y c l e d W a t e r TIT L E BA R G A I N I N G UN I T OR G . K E Y FT E AL L O C A T I O N RA N G E M I D - P O I N T FY 2 0 2 3 M I D - P T SA L A R Y / W A G E CO S T CM W D VE H I C L E US E UN I F O R M ME T E R S a n d SE R V I C E S AD M I N a n d MG M T DIS T R I B U T I O N CR O S S CO N N E C T I O N CO N T R O L EN G I N E E R I N G G E N E R A L T O T A L Ut i l i t i e s S u p e r v i s o r MG T 50 2 6 3 1 0 0.1 5 12 7 , 2 5 4 19 , 0 8 8 y y 10 0 % 10 0 % Ut i l i t i e s S u p e r v i s o r MG T 5 0 2 6 3 1 0 0 . 1 5 12 7 , 2 5 4 19 , 0 8 8 y y 10 0 % 10 0 % Ut i l i t i e s T e c h n i c a l S e r v i c e s M a n a g e r MG T 5 0 2 6 3 1 0 0 . 1 5 14 2 , 9 2 1 21 , 4 3 8 10 0 % 10 0 % Ut i l i t y W o r k e r I CC E A 5 0 2 6 3 1 0 0 . 1 5 5 4 6 7 , 6 8 3 10 , 1 5 2 y y 10 0 % 10 0 % Ut i l i t y W o r k e r I CC E A 5 0 2 6 3 1 0 0 . 1 5 5 4 6 7 , 6 8 3 10 , 1 5 2 y y 10 0 % 10 0 % Ut i l i t y W o r k e r I - U F CC E A 5 0 2 6 3 1 0 0 . 1 5 54 67 , 6 8 3 10 , 1 5 2 y y 10 0 % 10 0 % Ut i l i t y W o r k e r I - U F CC E A 5 0 2 6 3 1 0 0 . 1 5 54 67 , 6 8 3 10 , 1 5 2 y y 10 0 % 10 0 % Ut i l i t y W o r k e r I I CC E A 5 0 2 6 3 1 0 0 . 1 5 6 6 7 6 , 2 1 1 11 , 4 3 2 y y 10 0 % 10 0 % Ut i l i t y W o r k e r I I I CC E A 5 0 2 6 3 1 0 0 . 1 5 7 7 8 5 , 0 5 1 12 , 7 5 8 y y 10 0 % 10 0 % Ut i l i t y W o r k e r I I I CC E A 5 0 2 6 3 1 0 0 . 1 5 7 7 8 5 , 0 5 1 12 , 7 5 8 y y 10 0 % 10 0 % Wa r e h o u s e T e c h n i c i a n CC E A 5 0 2 6 3 1 0 0 . 2 5 4 3 6 0 , 6 1 1 15 , 1 5 3 10 0 % 10 0 % Wa t e r S y s t e m s O p e r a t o r I I CC E A 5 0 2 6 3 1 0 0 . 1 5 8 9 9 5 , 8 4 6 14 , 3 7 7 y y 10 0 % 10 0 % Wa t e r S y s t e m s O p e r a t o r I I CC E A 5 0 2 6 3 1 0 0 . 1 5 8 9 9 5 , 8 4 6 14 , 3 7 7 y y 10 0 % 10 0 % Wa t e r S y s t e m s O p e r a t o r I I CC E A 5 0 2 6 3 1 0 0 . 1 5 8 9 9 5 , 8 4 6 14 , 3 7 7 y y 10 0 % 10 0 % Wa t e r S y s t e m s O p e r a t o r I I CC E A 5 0 2 6 3 1 0 0 . 1 5 8 9 9 5 , 8 4 6 14 , 3 7 7 y y 10 0 % 10 0 % Wa t e r S y s t e m s O p e r a t o r I I I CC E A 5 0 2 6 3 1 0 0 . 1 5 1 0 3 1 1 0 , 1 7 8 16 , 5 2 7 10 0 % 10 0 % Al l S t a f f A l l o c a t i o n 12 . 0 0 0 0 4,6 8 5 , 3 1 3 $ 1, 1 3 9 , 9 0 7 $ 30 , 1 3 9 $ 18 1 , 6 6 1 $ 21 7 , 6 8 7 $ 24 7 , 8 6 3 $ 37 7 , 4 9 1 $ 85 , 0 6 5 $ 1, 1 3 9 , 9 0 7 $ Re s u l t i n g A l l o c a t i o n 1 0 0 % 2. 6 % 15 . 9 % 19 . 1 % 21 . 7 % 33 . 1 % 7.5 % 10 0 . 0 % St a f f w i t h C M W D V e h i c l e U s e Ve h i c l e U s e U n i t s ( A s s u m e d e q u a l t o a l l o c a t e d F T E s ) 0. 5 0 - 1. 6 5 2.7 5 - 0.5 0 5. 4 0 9. 3 % 0. 0 % 30 . 6 % 50 . 9 % 0.0 % 9.3 % 10 0 . 0 % FT E s w i t h U n i f o r m s Ve h i c l e U s e U n i t s ( A s s u m e d e q u a l t o a l l o c a t e d F T E s ) 0. 5 0 - 1. 6 5 2.7 5 - 0.5 0 5. 4 0 Un i f o r m s C o s t A l l o c a t i o n 9. 3 % 0. 0 % 30 . 6 % 50 . 9 % 0.0 % 9. 3 % 10 0 . 0 % Feb. 11, 2025 Item #8 Page 254 of 265 CI T Y O F C A R L S B A D Re c y c l e d W a t e r F i n a n c i a l M o d e l Re c y c l e d Co s t o f S e r v i c e Al l o c a t i o n CO S T A L L O C A T I O N B A S I S FY E 2 0 2 5 AL L O C A T I O N B A S I S CU S T O M E R S E R V I C E B A S E S U P P L Y A S A L L O T H E R S T O T A L Cu s t o m e r O n l y 10 0 . 0 % 0.0 % 10 0 % Cu s t o m e r a n d M e t e r S e r v i c e 20 . 0 % 80 . 0 % 0.0 % 10 0 % Se r v i c e O n l y 10 0 . 0 % 10 0 % Ba s e O n l y 10 0 . 0 % 0.0 % 10 0 % Se r v i c e a n d B a s e 50 . 0 % 50 . 0 % 0.0 % 10 0 % Su p p l y O n l y 10 0 . 0 % 0.0 % 10 0 % As A l l O t h e r s Ap p l i e s t o t a l a l l o c a t i o n t o r e m a i n i n g l i n e i t e m s . 10 0 . 0 % 10 0 % Pl a n t I n S e r v i c e Se e P l a n t i n S e r v i c e s e c t i o n b e l o w . 0.0 % 25 . 0 % 59 . 8 % 15 . 2 % 0.0 % 10 0 % PL A N T I N S E R V I C E RE P L A C E M E N T C O S T CU S T O M E R S E R V I C E B A S E S U P P L Y A S A L L O T H E R S T O T A L Re c y c l e d M a i n s 99 , 1 5 6 , 2 7 1 $ 25 . 0 % 75 . 0 % 0.0 % 10 0 % Re c y c l e d W a t e r S t a t i o n s 11 , 9 3 6 , 5 3 6 25 . 0 % 75 . 0 % 0.0 % 10 0 % Re c y c l e d W a t e r F a c i l i t y 28 , 1 8 3 , 7 8 3 25 . 0 % 75 . 0 % 0.0 % 10 0 % Co n s t r u c t i o n i n P r o g r e s s - 10 0 . 0 % 10 0 % Pl a n t - I n - S e r v i c e S u b T o t a l 13 9 , 2 7 6 , 5 8 9 $ - $ 3 4 , 8 1 9 , 1 4 7 $ 83 , 3 1 9 , 6 0 5 $ 21 , 1 3 7 , 8 3 7 $ - $ Re a l l o c a t i o n o f " A s A l l O t h e r s " - $ - $ - $ - $ - $ To t a l A l l o c a t i o n 13 9 , 2 7 6 , 5 8 9 $ - $ 3 4 , 8 1 9 , 1 4 7 $ 83 , 3 1 9 , 6 0 5 $ 21 , 1 3 7 , 8 3 7 $ - $ Re s u l t i n g A l l o c a t i o n s 10 0 . 0 % 0. 0 % 25 . 0 % 59 . 8 % 15 . 2 % 0. 0 % OP E R A T I N G E X P E N D I T U R E S CU S T O M E R S E R V I C E B A S E S U P P L Y A S A L L O T H E R S T O T A L Fu n c t i o n a l i z e d O p e r a t i n g E x p e n d i t u r e s CU S T O M E R A C C O U N T S E R V I C E 5,1 3 6 $ Cu s t o m e r O n l y 5, 1 3 6 $ - $ - $ - $ - $ 5,1 3 6 $ ME T E R S a n d S E R V I C E S 34 1 , 2 8 0 Cu s t o m e r a n d M e t e r S e r v i c e 68 , 2 5 6 27 3 , 0 2 4 - - - 34 1 , 2 8 0 AD M I N 97 6 , 4 1 1 Se r v i c e O n l y - 9 7 6 , 4 1 1 - - - 97 6 , 4 1 1 DI S T R I B U T I O N 1,5 5 7 , 1 1 4 Ba s e O n l y - - 1 , 5 5 7 , 1 1 4 - - 1,5 5 7 , 1 1 4 SU P P L Y 4,6 9 9 , 8 9 6 Su p p l y O n l y - - - 4 , 6 9 9 , 8 9 6 - 4,6 9 9 , 8 9 6 CR O S S C O N N E C T I O N C O N T R O L 47 5 , 6 0 6 Se r v i c e a n d B a s e - 2 3 7 , 8 0 3 23 7 , 8 0 3 - - 47 5 , 6 0 6 EN G I N E E R I N G 65 1 , 1 2 3 Pl a n t I n S e r v i c e - 1 6 2 , 7 8 1 38 9 , 5 2 2 98 , 8 2 0 - 65 1 , 1 2 3 GE N E R A L 23 1 , 4 0 1 As A l l O t h e r s - - - - 23 1 , 4 0 1 23 1 , 4 0 1 Op e r a t i n g E x p e n d i t u r e s S u b T o t a l 8, 9 3 7 , 9 6 7 $ 73 , 3 9 2 $ 1, 6 5 0 , 0 1 9 $ 2, 1 8 4 , 4 3 9 $ 4, 7 9 8 , 7 1 6 $ 23 1 , 4 0 1 $ 8, 9 3 7 , 9 6 7 $ Re a l l o c a t i o n o f " A s A l l O t h e r s " 1, 9 5 1 $ 43 , 8 5 4 $ 58 , 0 5 8 $ 12 7 , 5 3 9 $ (2 3 1 , 4 0 1 ) $ To t a l A l l o c a t i o n 8, 9 3 7 , 9 6 7 $ 75 , 3 4 2 $ 1, 6 9 3 , 8 7 3 $ 2, 2 4 2 , 4 9 7 $ 4, 9 2 6 , 2 5 5 $ - $ Pe r c e n t a g e A l l o c a t i o n 10 0 . 0 % 0. 8 % 19 . 0 % 25 . 1 % 55 . 1 % 0. 0 % Fi x e d C h a r g e NO T E S Ap p l i e s t o c u s t o m e r a n d r e l a t e d f u n c t i o n s Ap p l i e s t o c u s t o m e r a n d s e r v i c e r e l a t e d f u n c t i o n s FY E 2 0 2 5 Feb. 11, 2025 Item #8 Page 255 of 265 CI T Y O F C A R L S B A D Re c y c l e d W a t e r F i n a n c i a l M o d e l Re c y c l e d Co s t o f S e r v i c e Al l o c a t i o n CO S T A L L O C A T I O N B A S I S FY E 2 0 2 5 RA T E R E V E N U E R E Q U I R E M E N T CU S T O M E R S E R V I C E B A S E S U P P L Y A S A L L O T H E R S T O T A L Op e r a t i n g E x p e n s e s 8,9 3 7 , 9 6 7 $ As O & M 75 , 3 4 2 $ 1,6 9 3 , 8 7 3 $ 2,2 4 2 , 4 9 7 $ 4,9 2 6 , 2 5 5 $ - $ 8,9 3 7 , 9 6 7 $ De b t S e r v i c e 2,3 8 5 , 1 1 9 Ba s e O n l y - - 2 , 3 8 5 , 1 1 9 - - 2,3 8 5 , 1 1 9 Ra t e F u n d e d C a p i t a l - Pl a n t I n S e r v i c e - - - - - - Re p l a c e m e n t F u n d i n g - Pl a n t I n S e r v i c e - - - - - - Tr a n s f e r t o C a p i t a l F u n d - Pl a n t I n S e r v i c e - - - - - - Ca s h F l o w s (9 6 3 , 3 1 4 ) As A l l O t h e r s - - - - (9 6 3 , 3 1 4 ) (9 6 3 , 3 1 4 ) Le s s O f f s e t t i n g R e v e n u e s Of f s e t t i n g R e c y c l e d W a t e r R e v e n u e s Ad j . t o R e f l e c t F u l l Y e a r I n c r e a s e 41 8 , 5 9 7 $ As A l l O t h e r s - $ - $ - $ - $ 41 8 , 5 9 7 $ 41 8 , 5 9 7 $ No n - R a t e C h a r g e s f o r S e r v i c e s (1 , 3 1 2 ) As A l l O t h e r s - - - - (1 , 3 1 2 ) (1 , 3 1 2 ) De v e l o p e r F e e s - As A l l O t h e r s - - - - - - In t e r g o v e r n m e n t a l ( C W A ) - As A l l O t h e r s - - - - - - Fi n e s a n d F o r f e i t u r e s (8 5 , 5 1 5 ) As A l l O t h e r s - - - - (8 5 , 5 1 5 ) (8 5 , 5 1 5 ) In c o m e f r o m P r o p e r t y & I n v e s t m e n t s (9 6 , 7 0 0 ) As A l l O t h e r s - - - - (9 6 , 7 0 0 ) (9 6 , 7 0 0 ) In t e r d e p a r t m e n t a l (1 0 , 9 2 0 ) As A l l O t h e r s - - - - (1 0 , 9 2 0 ) (1 0 , 9 2 0 ) Ot h e r R e v e n u e s (8 6 3 , 1 6 2 ) As A l l O t h e r s - - - - (8 6 3 , 1 6 2 ) (8 6 3 , 1 6 2 ) Ot h e r F i n a n c i n g S o u r c e s - As A l l O t h e r s - - - - - - To t a l R a t e R e v e n u e s t o b e C o l l e c t e d 9, 7 2 0 , 7 6 1 $ 75 , 3 4 2 $ 1, 6 9 3 , 8 7 3 $ 4, 6 2 7 , 6 1 6 $ 4, 9 2 6 , 2 5 5 $ (1 , 6 0 2 , 3 2 6 ) $ 9, 7 2 0 , 7 6 1 $ Re a l l o c a t i o n o f " A s A l l O t h e r s " (1 0 , 6 6 2 ) $ (2 3 9 , 6 9 9 ) $ (6 5 4 , 8 5 2 ) $ (6 9 7 , 1 1 2 ) $ 1, 6 0 2 , 3 2 6 $ - $ To t a l A l l o c a t i o n 9, 7 2 0 , 7 6 1 $ 64 , 6 8 1 $ 1, 4 5 4 , 1 7 4 $ 3, 9 7 2 , 7 6 4 $ 4, 2 2 9 , 1 4 3 $ - $ Pe r c e n t a g e A l l o c a t i o n 10 0 . 0 % 0. 7 % 15 . 0 % 40 . 9 % 43 . 5 % 0. 0 % CH E C K Ra t e R e v e n u e s f r o m R e v e n u e R e q u i r e m e n t 9, 7 2 0 , 7 6 1 $ Ra t e R e v e n u e s f r o m F u n c t i o n a l A l l o c a t i o n 9,7 2 0 , 7 6 1 $ - $ OK A Y FY E 2 0 2 5 Feb. 11, 2025 Item #8 Page 256 of 265 2025 POTABLE AND RECYCLED WATER RATE STUDY FEBRUARY 2025 / FINAL / CAROLLO CARLSBAD MUNICIPAL WATER DISTRICT POTABLE AND RECYCLED WATER COST-OF-SERVICE STUDY APPENDIX H POTABLE WATER CUSTOMER ALLOCATION Feb. 11, 2025 Item #8 Page 257 of 265 CI T Y O F C A R L S B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Cu s t o m e r A l l o c a t i o n AL L O C A T I O N Y E A R FY E 2 0 2 5 SF R MF R NR AR IR CU S T O M E R S T A T I S T I C S Si n g l e F a m i l y M u l t i - F a m i l y C o m m e r c i a l A g r i c u l t u r a l I r r i g a t i o n Fi r e TO T A L Nu m b e r o f A c c o u n t s 24 , 5 2 1 1, 2 8 4 1, 7 0 7 12 79 3 1, 1 1 6 29 , 4 3 3 Nu m b e r o f M E U s 28 , 1 4 1 5, 4 8 2 8, 4 4 5 17 3 4, 1 8 3 50 , 2 3 0 96 , 6 5 4 An n u a l W a t e r U s a g e 3, 3 6 1 , 2 3 4 81 7 , 6 3 7 1, 2 5 2 , 3 2 0 81 , 5 3 4 70 2 , 0 1 1 6, 2 1 4 , 7 3 5 c c f Ma x M o n t h 33 5 , 4 6 6 72 , 7 3 3 12 5 , 8 6 9 9, 4 1 8 85 , 5 6 4 62 9 , 0 5 0 c c f Ma x D a y 17 , 4 9 6 3, 7 9 3 6, 5 6 5 49 1 4, 4 6 3 32 , 8 0 8 c c f Ma x H o u r 1, 0 7 7 23 4 40 4 30 27 5 2, 0 2 0 c c f CU S T O M E R Si n g l e F a m i l y M u l t i - F a m i l y C o m m e r c i a l A g r i c u l t u r a l I r r i g a t i o n TO T A L 87 % 5% 6% 0% 3% 10 0 % Al l o c a t i o n B a s i s : Nu m b e r o f A c c o u n t s 24 , 5 2 1 1, 2 8 4 1, 7 0 7 12 79 3 28 , 3 1 7 Al l o c a t e d C u s t o m e r C o s t s 2, 7 8 7 , 4 7 5 $ 14 5 , 9 5 6 $ 19 4 , 0 2 7 $ 1, 3 6 8 $ 90 , 1 7 4 $ 3, 2 1 9 , 0 0 0 $ SE R V I C E Si n g l e F a m i l y M u l t i - F a m i l y C o m m e r c i a l A g r i c u l t u r a l I r r i g a t i o n TO T A L 61 % 12 % 18 % 0% 9% 10 0 % Al l o c a t i o n B a s i s : Nu m b e r o f M E U s 28 , 1 4 1 5, 4 8 2 8, 4 4 5 17 3 4, 1 8 3 46 , 4 2 4 Al l o c a t e d C u s t o m e r C o s t s 2, 5 4 5 , 9 5 9 $ 49 5 , 9 8 9 $ 76 4 , 0 7 1 $ 15 , 6 5 1 $ 37 8 , 4 2 9 $ 4, 2 0 0 , 0 9 8 $ BA S E Si n g l e F a m i l y M u l t i - F a m i l y C o m m e r c i a l A g r i c u l t u r a l I r r i g a t i o n TO T A L 54 . 0 8 % 13 . 1 6 % 20 . 1 5 % 1. 3 1 % 11 . 3 0 % 10 0 % Al l o c a t i o n B a s i s : An n u a l W a t e r U s a g e 3, 3 6 1 , 2 3 4 81 7 , 6 3 7 1, 2 5 2 , 3 2 0 81 , 5 3 4 70 2 , 0 1 1 6, 2 1 4 , 7 3 5 Al l o c a t e d C u s t o m e r C o s t s 2, 0 6 0 , 8 9 5 $ 50 1 , 3 2 3 $ 76 7 , 8 4 3 $ 49 , 9 9 2 $ 43 0 , 4 2 8 $ 3, 8 1 0 , 4 8 1 $ Feb. 11, 2025 Item #8 Page 258 of 265 CI T Y O F C A R L S B A D Po t a b l e W a t e r a n d R e c y c l e d W a t e r F i n a n c i a l M o d e l Cu s t o m e r A l l o c a t i o n MA X D A Y Si n g l e F a m i l y M u l t i - F a m i l y C o m m e r c i a l A g r i c u l t u r a l I r r i g a t i o n TO T A L 53 % 12 % 20 % 1% 14 % 10 0 % Al l o c a t i o n B a s i s : Ma x D a y 17 , 4 9 6 3, 7 9 3 6, 5 6 5 49 1 4, 4 6 3 32 , 8 0 8 Al l o c a t e d C u s t o m e r C o s t s 1, 1 6 2 , 4 5 3 $ 25 2 , 0 3 5 $ 43 6 , 1 6 0 $ 32 , 6 3 5 $ 29 6 , 4 9 5 $ 2, 1 7 9 , 7 7 8 $ MA X H O U R Si n g l e F a m i l y M u l t i - F a m i l y C o m m e r c i a l A g r i c u l t u r a l I r r i g a t i o n TO T A L 53 % 12 % 20 % 1% 14 % 10 0 % Al l o c a t i o n B a s i s : Ma x H o u r 1, 0 7 7 23 4 40 4 30 27 5 2, 0 2 0 Al l o c a t e d C u s t o m e r C o s t s 1, 0 9 8 , 0 8 8 $ 23 8 , 0 8 0 $ 41 2 , 0 1 0 $ 30 , 8 2 8 $ 28 0 , 0 7 7 $ 2, 0 5 9 , 0 8 3 $ PR I V A T E F I R E Fi r e TO T A L Al l o c a t i o n B a s i s : Nu m b e r o f M E U s 50 , 2 3 0 50 , 2 3 0 Al l o c a t e d C u s t o m e r C o s t s 31 2 , 9 4 3 $ 31 2 , 9 4 3 $ Co s t A l l o c a t i o n S u m m a r y Si n g l e F a m i l y M u l t i - F a m i l y C o m m e r c i a l A g r i c u l t u r a l I r r i g a t i o n Fi r e TO T A L CU S T O M E R 2, 7 8 7 , 4 7 5 14 5 , 9 5 6 19 4 , 0 2 7 1, 3 6 8 90 , 1 7 4 - 3, 2 1 9 , 0 0 0 BA S E 2, 0 6 0 , 8 9 5 50 1 , 3 2 3 76 7 , 8 4 3 49 , 9 9 2 43 0 , 4 2 8 - 3, 8 1 0 , 4 8 1 MA X D A Y 1, 1 6 2 , 4 5 3 25 2 , 0 3 5 43 6 , 1 6 0 32 , 6 3 5 29 6 , 4 9 5 - 2, 1 7 9 , 7 7 8 MA X H O U R 1, 0 9 8 , 0 8 8 23 8 , 0 8 0 41 2 , 0 1 0 30 , 8 2 8 28 0 , 0 7 7 - 2, 0 5 9 , 0 8 3 SE R V I C E 2, 5 4 5 , 9 5 9 49 5 , 9 8 9 76 4 , 0 7 1 15 , 6 5 1 37 8 , 4 2 9 - 4, 2 0 0 , 0 9 8 PR I V A T E F I R E - - - - - 31 2 , 9 4 3 31 2 , 9 4 3 To t a l 9, 6 5 4 , 8 7 1 $ 1, 6 3 3 , 3 8 3 $ 2, 5 7 4 , 1 1 1 $ 13 0 , 4 7 4 $ 1, 4 7 5 , 6 0 3 $ 31 2 , 9 4 3 $ 15 , 7 8 1 , 3 8 4 $ Feb. 11, 2025 Item #8 Page 259 of 265 RESOLUTION NO. 1761 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT OF THE CITY OF CARLSBAD, CALIFORNIA, ESTABLISHING A PROCEDURE FOR CUSTOMER AND PROPERTY OWNER OBJECTIONS TO PROPOSED PROPERTY-RELATED FEES AND CHARGES FOR WATER SERVICES WHEREAS, the Carlsbad Municipal Water District provides property-related services, including potable and recycled water services, and assesses fees and charges for the costs of providing these services; and WHEREAS, California law requires that any new fee or increase to an existing property-related fee must be adopted in accordance with the substantive and procedural requirements of Article XIII D, section 6 of the California Constitution, or Proposition 218; and WHEREAS, Assembly Bill 2257, codified as Government Code Sections 53759.1 and 53759.2, or AB 2257, became effective January 1, 2025, and authorizes local agencies to adopt certain procedures for the submittal and consideration of public comments regarding proposed wastewater (sewer) or water fees; and WHEREAS, if a local agency adopts the procedures authorized by AB 2257, then members of the public must timely submit written objections as part of the ratemaking process, to exhaust their administrative remedies as a prerequisite to later litigating the particular issue raised; and WHEREAS, the Board of the Carlsbad Municipal Water District has determined that electing to opt-in to the adoption of exhaustion of administrative procedures authorized by AB 2257 allows the Board to hear substantive concerns by members of the public prior to approving any proposed rate changes and creates a better administrative record to facilitate judicial review. NOW, THEREFORE, BE IT RESOLVED by the Carlsbad Municipal Water District Board of Directors, of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the Carlsbad Municipal Water District elects to adopt the exhaustion of administrative procedures authorized by Government Codes Sections 53759.1 and 53759.2. 3. That prior to the adoption of any rates changes for water services there will be a period of at least 45 days after the Proposition 218 notice is mailed for customers and property owners to submit written objections. 4. That the Executive Manager or designee will establish a deadline for the members of the public to submit any written objections to the proposed water fees prior to the majority-protest public hearing. 5. That the Executive Mari ager or designee will review all submitted written objections and provide written responses to all timely written objections. 6. That prior to the close of the majority protest hearing all written objections and responses will be submitted to the Board for consideration. 7. That the required Proposition 218 notice will describe these objection procedures, including how to submit written objections, and the deadline by which all written objections must be received. 8. That approving a procedure for customers and property owners to raise objections to proposed water fees does not constitute a project within the meaning of the California Environmental Qua lity Act under Public Resources Code Section 21065 because it has no potential to cause either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad, California, and the City Council of the City of Carlsbad, California, on the 11th day of February 2025, by the following vote, to wit: AYES: NAYS: ABSTAIN: ABSENT: Blackburn, Bhat-Patel, Acosta, Burkholder, Shin . None. None. None. KEITH BLACKBURN, President ~,~211~- fvzi.HERRY FREISINGER, Secretary V ~ (SEAL) Pr e s o r t e d Fir s t C l a s s M a i l US P o s t a g e PA I D Ca r l s b a d , C a Pe r m i t #x x x x Pu b l i c h e a r i n g Tu e s d a y , A p r i l 2 2 , 2 0 2 5 | 5 p . m . Ci t y o f C a r l s b a d Co u n c i l C h a m b e r 12 0 0 C a r l s b a d V i l l a g e D r i v e Ca r l s b a d , C A 9 2 0 0 8 Yo u m a y p r o t e s t o r o p p o s e t h e r a t e in c r e a s e s . S e e i n f o r m a t i o n i n s i d e . Pr o p o s e d i n c r e a s e s t o w a t e r , r e c y c l e d wa t e r a n d w a s t e w a t e r r a t e s w i l l b e co n s i d e r e d a t a n u p c o m i n g p u b l i c h e a r i n g . Th i s n o t i c e e x p l a i n s : • Wh a t i s b e i n g p r o p o s e d a n d w h y • Ho w y ou r r a t e s w o u l d c h a n g e a n d w h e n • Th e d e c i s i o n m a k in g p r o c e s s a n d h o w y o u c a n pr o t e s t o r o b j e c t t o t h e i n c r e a s e s NO T I C E Pr o p o s e d R a t e I n c r e a s e s Ef f e c t i v e d a t e s If t h e p r o p o s e d n e w r a t e s a r e a p p r o v e d , th e y w o u l d b e c o m e e f f e c t i v e : Ju l y 1 , 2 0 2 5 Ja n . 1 , 2 0 2 6 Ja n . 1 , 2 0 2 7 Es t i m a t e d m o n t h l y i n c r e a s e s Th e a m o u n t s b e l o w a r e f o r a t y p i c a l s i n g l e fa m i l y h o m e i n C a r l s b a d . Y o u r r a t e s d e p e n d on t h e s i z e o f y o u r w a t e r m e t e r , t h e t y p e o f pr o p e r t y a n d o t h e r v a r i a b l e s . Wh y ? Av e r a g e w a t e r b i l l Ra t e i n c r e a s e s a r e n e e d e d f r o m t i m e t o t i m e t o p a y f o r in c r e a s e d c o s t s t o r u n C a r l s b a d ’ s w a t e r , w a s t e w a t e r a n d re c y c l e d w a t e r s y s t e m s . Ho w e v e r , t h e m a i n d r i v e r o f t h e p r o p o s e d w a t e r r a t e in c r e a s e i s t h e i n c r e a s e d c o s t t o p u r c h a s e w a t e r f r o m th e S a n D i e g o C o u n t y W a t e r A u t h o r i t y . Se e t h e r a t e s t u d i e s Ra t e s m a y n o t b e h i g h e r t h a n t h e a c t u a l c o s t t o pr o v i d e t h e s e s e r v i c e s . R e g u l a r “ C o s t o f S e r v i c e ” s t u d i e s de t e r m i n e t h i s c o s t . Y o u c a n s e e t h e l a t e s t s t u d i e s tw o w a y s : ca r l s b a d c a . g o v / r a t e s Re q u e s t a m a i l e d c o p y wa t e r @ c a r l s b a d c a . g o v 44 2 - 3 3 9 - 2 4 2 0 Sa n D i e g o C o u n t y W a t e r A u t h o r i t y c o s t s (p a s s e d t h r o u g h t o C a r l s b a d c u s t o m e r s ) 65 % 35 % Ca r l s b a d c o s t s Pr o p o s e d w a s t e w a t e r r a t e s Th e p r o p o s e d r a t e i n c r e a s e w i l l p a y f o r c o s t s o f op e r a t i o n s , m a i n t e n a n c e a n d r e p l a c e m e n t o f a g i n g in f r a s t r u c t u r e . Th e C i t y o f C a r l s b a d o w n s a n d m a i n t a i n s a b o u t $2 . 1 b i l l i o n i n u t i l i t i e s i n f r a s t r u c t u r e , i n c l u d i n g it s o w n s e w e r s y s t e m . E v e r y d a y , t h e c i t y c o l l e c t s ov e r 6 m i l l i o n g a l l o n s o f w a s t e w a t e r f r o m h o m e s an d b u s i n e s s e s a n d d e l i v e r s i t t o a r e g i o n a l tr e a t m e n t p l a n t . Re s i d e n t i a l c u s t o m e r s p a y a f l a t m o n t h l y r a t e fo r w a s t e w a t e r s e r v i c e s . M o s t n o n - r e s i d e n t i a l cu s t o m e r s p a y a r a t e b a s e d o n h o w m u c h wa s t e w a t e r t h e y p u t i n t o t h e s e w e r s y s t e m a n d wh a t i t t a k e s t o t r e a t t h a t w a s t e w a t e r . WA S T E W A T E R R A T E S 7/ 1 / 2 5 1 / 1 / 2 6 1/ 1 / 2 7 To t a l in c r e a s e $1 7 . 1 9 $1 2 . 2 8 $ 6 . 2 4 $ 3 5 . 7 1 $8 . 1 1 $8 . 3 7 $ 9 . 5 6 $ 2 6 . 0 4 Ra t e s a r e r o u n d e d t o t h e n e a r e s t $ 0 . 0 1 . Ra t e i n c r e a s e s a r e n e e d e d t o p a y f o r m a i n t a i n i n g a n d r e p l a c i n g a g i n g i n f r a s t r u c t u r e . Lo o k i n s i d e . . . Ov e r v i e w o f p r o p o s e d r a t e s Wa te r Was t e w a t e r Re c yc l e d w a t e r Ch a n g e s t o w a t e r r a t e t i e r s Ho w t o p r o t e s t o r o b j e c t If t h e p r o p o s e d w a t e r r a t e i n c r e a s e s a r e a p p r o v e d , C a r l s b a d wi l l s t i l l h a v e a m o n g t h e l o w e s t r a t e s i n t h e r e g i o n . Ba s e d o n a v e r a g e m o n t h l y b i l l f o r s i n g l e f a m i l y h o m e s . Ab o u t 2 / 3 o f t h e p r o p o s e d w a t e r ra t e i n c r e a s e i s d r i v e n b y t h e r i s i n g co s t o f p u r c h a s i n g w a t e r f r o m t h e Sa n D i e g o C o u n t y W a t e r A u t h o r i t y , th e r e g i o n ’ s w a t e r w h o l e s a l e r . Cu s t o m e r C l a s s Cu r r e n t R a t e 7 / 1 / 2 5 1 / 1 / 2 6 1/ 1 / 2 7 Si n g l e F a m i l y R e s i d e n t ( S F R ) $5 1 . 7 4 $5 9 . 8 5 $6 8 . 2 2 $7 7 . 7 7 SF R w / S e c o n d D w e l l i n g U n i t $7 7 . 6 0 $8 9 . 7 7 $1 0 2 . 3 3 $1 1 6 . 6 6 Mu l t i F a m i l y R e s i d e n t ( M F R ) $5 . 9 5 $6 . 8 9 $7 . 8 5 $8 . 9 5 Mo b i l e H o m e $5 . 9 5 $6 . 8 9 $7 . 8 5 $8 . 9 5 GR O U P I I - C o m m e r c i a l 2 $5 . 0 6 $6 . 0 6 $6 . 9 1 $7 . 8 8 GR O U P I I I - C o m m e r c i a l 3 $7 . 2 1 $8 . 0 1 $9 . 1 3 $1 0 . 4 1 GR O U P I V - C o m m e r c i a l 4 $1 2 . 6 1 $1 2 . 9 0 $1 4 . 7 1 $1 6 . 7 6 In d u s t r i a l P r e t r e a t m e n t C l a s s I I I $8 . 1 4 $9 . 0 3 $1 0 . 2 9 $1 1 . 7 3 El e m e n t a r y S c h o o l ( p e r s t u d e n t ) $1 . 0 2 $1 . 1 8 $1 . 3 4 $1 . 5 3 Ju n i o r H i g h S c h o o l ( p e r s t u d e n t ) $1 . 5 3 $1 . 7 7 $2 . 0 1 $2 . 3 0 Hi g h S c h o o l ( p e r s t u d e n t ) $2 . 0 3 $2 . 3 6 $2 . 6 8 $3 . 0 6 Bo a r d i n g S c h o o l ( p e r s t u d e n t ) $1 0 . 5 6 $1 1 . 9 8 $1 3 . 6 5 $1 5 . 5 6 B1 – B r e w e r y w i t h o u t a r e s t a u r a n t a n d ha u l s w a s t e f o r o u t s i d e t r e a t m e n t $5 . 0 6 $6 . 0 6 $6 . 9 1 $7 . 8 8 B2 – B r e w e r y w i t h o u t a r e s t a u r a n t t h a t do e s n o t h a u l w a s t e f o r o u t s i d e t r e a t m e n t $1 4 . 0 6 $1 4 . 6 3 $1 6 . 6 7 $1 9 . 0 1 B3 – B r e w e r y w i t h a r e s t a u r a n t a n d h a u l s wa s t e f o r o u t s i d e t r e a t m e n t $1 2 . 6 1 $1 2 . 9 0 $1 4 . 7 1 $1 6 . 7 6 B4 – B r e w e r y w i t h a r e s t a u r a n t t h a t d o e s no t h a u l w a s t e f o r o u t s i d e t r e a t m e n t $1 7 . 3 4 $1 7 . 7 6 $2 0 . 2 5 $2 3 . 0 8 Exhibit 5 Feb. 11, 2025 Item #8 Page 262 of 265 Ho w t o p r o t e s t o r o b j e c t * Su b m i t t i n g a n o b j e c t i o n i s p a r t o f t h e p r o c e s s f o r t h e “ o p t - i n ” e x h a u s t i o n o f a d m i n i s t r a t i v e r e m e d i e s e s t a b l i s h e d b y A s s e m b l y B i l l 2 2 5 7 , c o d i f i e d i n Go v e r n m e n t C o d e S e c t i o n 5 3 7 5 9 . 1 . I f t h e p r o p o s e d r a t e s a r e a d o p t e d , t h e r e i s a 1 2 0 - d a y s t a t u t e o f l i m i t a t i o n s f o r c h a l l e n g i n g t h e p r o p o s e d po t a b l e w a t e r , r e c y c l e d w a t e r , a n d w a s t e w a t e r r a t e s i n c o u r t . T h e 1 2 0 - d a y s t a t u t e o f l i m i t a t i o n s w i l l b e g i n t h e d a t e t h e r a t e s a r e a d o p t e d o r t h e da t e t h e r a t e s g o e s i n t o e f f e c t , w h i c h e v e r i s l a t e r . Re c y c l e d w a t e r i s h i g h l y t r e a t e d w a s t e w a t e r t h a n c a n b e u s e d f o r n o n d r i n k i n g p u r p o s e s . T h i s d r o u g h t - p r o o f s u p p l y is a v a i l a b l e t o b u s i n e s s e s a n d h o m e o w n e r s a s s o c i a t i o n s f o r l a n d s c a p e i r r i g a t i o n a n d o t h e r u s e s . R e c y c l e d w a t e r r a t e s ar e b a s e d o n t r e a t m e n t c o s t s , t h e c o s t t o o p e r a t e a n d m a i n t a i n t h e d i s t r i b u t i o n s y s t e m , a n d t h e a m o u n t o f m o n e y ne e d e d t o m a i n t a i n a d e q u a t e r e s e r v e f u n d s . Me t e r C u r r e n t 7 / 1 / 2 5 1 / 1 / 2 6 1 / 1 / 2 7 5/ 8 ” $2 5 . 3 6 $2 7 . 3 7 $2 8 . 6 1 $2 9 . 8 9 3/ 4 ” $3 5 . 5 4 $3 8 . 3 0 $4 0 . 0 3 $4 1 . 8 3 1” $5 5 . 9 1 $6 0 . 1 6 $6 2 . 8 7 $6 5 . 7 0 1. 5 ” $1 0 6 . 8 1 $1 1 4 . 8 1 $1 1 9 . 9 8 $1 2 5 . 3 8 2” $1 6 7 . 9 0 $1 8 0 . 3 9 $1 8 8 . 5 1 $1 9 7 . 0 0 2 1 / 2 ” $2 3 9 . 1 7 $2 5 6 . 9 1 $2 6 8 . 4 7 $2 8 0 . 5 5 3” $3 1 0 . 4 4 $3 3 3 . 4 2 $3 4 8 . 4 2 $3 6 4 . 1 0 4” $5 1 4 . 0 7 $5 5 2 . 0 2 $5 7 6 . 8 6 $6 0 2 . 8 2 6” $1 , 0 2 3 . 1 4 $ 1 , 0 9 8 . 5 2 $ 1 , 1 4 7 . 9 5 $ 1 , 1 9 9 . 6 1 8” $1 , 6 3 4 . 0 2 $ 1 , 7 5 4 . 3 3 $ 1 , 8 3 3 . 2 7 $ 1 , 9 1 5 . 7 7 10 ” $2 , 3 4 6 . 7 1 $ 2 , 5 1 9 . 4 3 $ 2 , 6 3 2 . 8 0 $ 2 , 7 5 1 . 2 8 Un d e r s t a n d i n g y o u r w a t e r r a t e s Yo u r w a t e r r a t e h a s t w o p a r t s : o n e b a s e d o n t h e s i z e o f y o u r w a t e r m e t e r ( m o s t h o m e s u s e 5 / 8 ” t o 1 ” ) a n d a c h a r g e f o r t h e a m o u n t o f w a t e r y o u u s e . W a t e r r a t e s f u n d t h e c o s t o f p u r c h a s i n g w a t e r , o p e r a t i n g a n d ma i n t a i n i n g C a r l s b a d ’ s w a t e r s y s t e m ( i n c l u d i n g p i p e s , m e t e r s , t a n k s , e t c . ) . RE C Y C L E D W A T E R R A T E S WA T E R R A T E S Wa t e r A u t h o r i t y p a s s t h r o u g h 7/ 1 / 2 5 1/ 1 / 2 6 1 / 1 / 2 7 $1 6 . 6 6 $ 1 9 . 1 7 $ 1 9 . 9 9 $2 2 . 7 7 $ 2 6 . 1 5 $ 2 7 . 2 7 $3 7 . 6 6 $ 4 3 . 2 4 $ 4 5 . 0 8 $7 4 . 4 3 $ 8 5 . 4 4 $ 8 9 . 0 8 $1 2 0 . 8 5 $ 1 3 8 . 7 8 $ 1 4 4 . 6 9 $1 7 3 . 3 9 $ 1 9 9 . 1 0 $ 2 0 7 . 5 8 $2 2 5 . 9 3 $ 2 5 9 . 4 3 $ 2 7 0 . 4 8 $3 7 8 . 3 1 $ 4 3 4 . 4 5 $ 4 5 2 . 9 6 $7 4 4 . 2 6 $ 8 5 4 . 3 5 $ 8 9 0 . 7 4 $1 , 2 0 8 . 4 7 $ 1 , 3 8 7 . 7 4 $ 1 , 4 4 6 . 8 6 $1 , 7 5 1 . 5 2 $ 2 , 0 1 1 . 7 5 $ 2 , 0 9 7 . 4 8 Ca r l s b a d Me t e r Cu r r e n t (c o m b i n e d ) 7/ 1 / 2 5 1/ 1 / 2 6 1 / 1 / 2 7 5/ 8 ” $2 8 . 9 4 $1 7 . 0 2 $ 1 8 . 7 2 $ 2 0 . 5 9 3/ 4 ” $3 8 . 8 4 $ 2 0 . 7 9 $ 2 2 . 8 7 $ 2 5 . 1 5 1” $5 8 . 6 5 $ 2 8 . 3 3 $ 3 1 . 1 6 $ 3 4 . 2 7 1. 5 ” $1 0 8 . 1 7 $ 4 7 . 1 7 $ 5 1 . 8 9 $ 5 7 . 0 8 2” $1 6 7 . 6 0 $ 6 9 . 7 9 $ 7 6 . 7 7 $ 8 4 . 4 5 2. 5 ” $2 3 6 . 9 3 $ 9 6 . 1 8 $ 1 0 5 . 8 0 $ 1 1 6 . 3 8 3” $3 0 6 . 2 6 $ 1 2 2 . 5 7 $ 1 3 4 . 8 2 $ 1 4 8 . 3 1 4” $5 0 4 . 3 5 $ 1 9 7 . 9 6 $ 2 1 7 . 7 6 $ 2 3 9 . 5 3 6” $9 9 9 . 5 7 $ 3 8 6 . 4 5 $ 4 2 5 . 0 9 $ 4 6 7 . 6 0 8” $1 , 5 9 3 . 8 4 $ 6 1 2 . 6 3 $ 6 7 3 . 8 9 $ 7 4 1 . 2 8 10 ” $2 , 2 8 7 . 1 5 $ 8 7 6 . 5 0 $ 9 6 4 . 1 5 $ 1 , 0 6 0 . 5 7 Pr o p o s e d w a t e r d e l i v e r y f e e s Pr o p o s e d w a t e r u s e f e e s Ca r l s b a d Wa t e r A u t h o r i t y p a s s t h r o u g h To t a l Cu s t o m e r cl a s s Ti e r Cu r r e n t (c o m b i n e d ) 7 / 1 / 2 5 1/ 1 / 2 6 1 / 1 / 2 7 7 / 1 / 2 5 1/ 1 / 2 6 1 / 1 / 2 7 7 / 1 / 2 5 1 / 1 / 2 6 1 / 1 / 2 7 Si n g l e f a m i l y re s i d e n t i a l Ti e r 1 $4 . 0 0 $ 1 . 1 8 $ 1 . 3 0 $ 1 . 4 3 $4 . 0 1 $ 4 . 6 2 $ 4 . 8 1 $5 . 1 9 $ 5 . 9 2 $ 6 . 2 4 Ti e r 2 $4 . 9 7 $ 1 . 5 1 $ 1 . 6 7 $ 1 . 8 3 $4 . 0 1 $ 4 . 6 2 $ 4 . 8 1 $5 . 5 2 $ 6 . 2 9 $ 6 . 6 4 Ti e r 3 $7 . 6 9 n / a n / a n / a $4 . 0 1 $ 4 . 6 2 $ 4 . 8 1 n/ a n / a n / a Mu l t i - f a m i l y re s i d e n t i a l Ti e r 1 $3 . 9 5 $ 1 . 1 8 $ 1 . 2 9 $ 1 . 4 2 $4 . 0 1 $ 4 . 6 2 $ 4 . 8 1 $5 . 1 9 $ 5 . 9 1 $ 6 . 2 3 Ti e r 2 $6 . 1 3 $ 1 . 3 6 $ 1 . 5 0 $ 1 . 6 5 $4 . 0 1 $ 4 . 6 2 $ 4 . 8 1 $5 . 3 7 $ 6 . 1 2 $ 6 . 4 6 Co m m e r c i a l n/ a $ 4 . 5 2 $ 1 . 3 0 $ 1 . 4 2 $ 1 . 5 7 $4 . 0 1 $ 4 . 6 2 $ 4 . 8 1 $5 . 3 1 $ 6 . 0 4 $ 6 . 3 8 Ag r i c u l t u r a l n/ a $ 4 . 8 9 $ 1 . 4 0 $ 1 . 5 4 $ 1 . 6 9 $4 . 0 1 $ 4 . 6 2 $ 4 . 8 1 $5 . 4 1 $ 6 . 1 6 $ 6 . 5 0 Ir r i g a t i o n n/ a $ 5 . 6 9 $ 1 . 4 4 $ 1 . 5 8 $ 1 . 7 4 $4 . 0 1 $ 4 . 6 2 $ 4 . 8 1 $5 . 4 5 $ 6 . 2 0 $ 6 . 5 5 + = Cu r r e n t $4 . 2 6 7/ 1 / 2 5 $4 . 4 3 1/ 1 / 2 6 $4 . 6 3 1/ 1 / 2 7 $4 . 8 4 Pr o p o s e d us a g e f e e s + Pr o p o s e d r e c y c l e d w a t e r d e l i v e r y f e e s De l i v e r y c h a r g e Fl a t f e e b a s e d o n wa t e r m e t e r s i z e Us a g e c h a r g e Ho w m u c h w a t e r yo u u s e Wa t e r b i l l + = Me t e r C u r r e n t 7/ 1 / 2 5 1/ 1 / 2 6 1 / 1 / 2 7 5/ 8 ” $8 . 6 7 $ 9 . 3 7 $ 1 0 . 3 1 $ 1 1 . 3 4 3/ 4 ” $8 . 7 9 $ 9 . 3 9 $ 1 0 . 3 3 $ 1 1 . 3 6 1” $9 . 0 2 $ 9 . 4 6 $ 1 0 . 4 0 $ 1 1 . 4 4 1. 5 ” $9 . 6 2 $ 9 . 7 0 $ 1 0 . 6 7 $ 1 1 . 7 4 2” $1 0 . 3 3 $ 1 0 . 1 1 $ 1 1 . 1 3 $ 1 2 . 2 4 2. 5 ” $1 1 . 1 5 $ 1 0 . 7 4 $ 1 1 . 8 1 $ 1 2 . 9 9 3” $1 1 . 9 8 $ 1 1 . 6 0 $ 1 2 . 7 6 $ 1 4 . 0 4 4” $1 4 . 3 5 $ 1 4 . 1 7 $ 1 5 . 5 9 $ 1 7 . 1 5 6” $2 0 . 2 6 $ 2 3 . 3 9 $ 2 5 . 7 3 $ 2 8 . 3 0 8” $2 7 . 3 6 $ 3 9 . 2 9 $ 4 3 . 2 2 $ 4 7 . 5 4 10 ” $3 5 . 6 5 $ 6 3 . 2 0 $ 6 9 . 5 2 $ 7 6 . 4 7 12 ” $5 5 . 7 6 $ 9 6 . 3 5 $ 1 0 5 . 9 8 $ 1 1 6 . 5 8 Pr o p o s e d f i r e s e r v i c e d e l i v e r y f e e s Pr o t e s t Ob j e c t i o n Pu r p o s e Se r v e s a s a v o t e a g a i n s t t h e p r o p o s e d i n c r e a s e ( s ) R a i s e s s p e c i f i c c o n c e r n s a b o u t t h e p r o p o s e d ra t e c h a n g e s Ef f e c t If a m a j o r i t y o f c u s t o m e r s s u b m i t a p r o t e s t , t h e r a t e in c r e a s e ( s ) w i l l n o t b e p a s s e d Pr e s e r v e s t h e r i g h t t o c h a l l e n g e r a t e i n c r e a s e s i n a l e g a l p r o c e e d i n g * De a d l i n e Ap r i l 2 2 , 2 0 2 5 , b y t h e c l o s e o f t h e h e a r i n g Ap r i l 1 4 , 2 0 2 5 , 5 p . m . For m Mu s t b e i n w r i t i n g a n d s u b m i t t e d i n p e r s o n o r b y m a i l M u s t b e i n w r i t i n g , a n d s u b m i t t e d i n p e r s o n , b y m a i l or e m a i l Re q u i r e d Fu l l n a m e o f c u s t o m e r ( p r o p e r t y o w n e r o r r a t e p a y e r ) Sp e c i f i c r a t e ( s ) y o u a r e p r o t e s t i n g Si g n a t u r e Li s t c o n c e r n s w i t h o n e o r m o r e o f t h e p r o p o s e d r a t e in c r e a s e s , r a t e s t r u c t u r e s o r b o t h Fu l l n a m e o f c u s t o m e r ( p r o p e r t y o w n e r o r r a t e p a y e r ) Co n t a c t i n f o r m a t i o n f o r a g e n c y t o p r o v i d e a w r i t t e n re s p o n s e b e f o r e t h e c l o s e o f t h e p u b l i c h e a r i n g Li m i t a t i o n s Mu s t b e s u b m i t t e d b y a r a t e p a y e r o r p r o p e r t y o w n e r On l y 1 p r o t e s t n o t i c e p e r p a r c e l w i l l b e c o u n t e d Em a i l e d p r o t e s t s w i l l n o t b e c o u n t e d Mu s t b e s u b m i t t e d b y a r a t e p a y e r o r p r o p e r t y o w n e r Wh e r e t o su b m i t Ci t y o f C a r l s b a d Of f i c e o f t h e C i t y C l e r k 12 0 0 C a r l s b a d V i l l a g e D r i v e Ca r l s b a d , C A 9 2 0 0 8 Ci t y o f C a r l s b a d Of f i c e o f t h e C i t y C l e r k 12 0 0 C a r l s b a d V i l l a g e D r i v e Ca r l s b a d , C A 9 2 0 0 8 wa t e r @ c a r l s b a d c a . g o v Yo u m a y s p e a k a t t h e p u b l i c h e a r i n g , b u t p r o t e s t s a n d o b j e c t i o n s m u s t b e m a d e i n w r i t i n g ( s e e b e l o w ) . Ti m e l y p r o t e s t s a n d o b j e c t i o n s w i l l b e p r e s e n t e d t o t h e C i t y C o u n c i l / C M W D B o a r d . O b j e c t i o n s w i l l b e re s p o n d e d t o i n w r i t i n g b e f o r e t h e p u b l i c h e a r i n g . Me t e r 7 / 1 / 2 5 1/ 1 / 2 6 1/ 1 / 2 7 5/ 8 ” $1 9 . 4 4 $ 2 0 . 1 2 $ 2 0 . 8 2 3/ 4 ” $2 9 . 1 5 $ 3 0 . 1 7 $ 3 1 . 2 3 1” $4 8 . 5 9 $ 5 0 . 2 9 $ 5 2 . 0 5 1. 5 ” $9 7 . 1 8 $ 1 0 0 . 5 8 $ 1 0 4 . 1 0 2” $1 5 5 . 4 9 $ 1 6 0 . 9 3 $ 1 6 6 . 5 6 Fi r e L i n e C o n n e c t i o n s 4” $7 8 . 1 2 $ 8 0 . 8 5 $ 8 3 . 6 8 6” $2 2 6 . 9 1 $ 2 3 4 . 8 6 $ 2 4 3 . 0 8 8” $4 8 3 . 5 6 $ 5 0 0 . 4 8 $ 5 1 8 . 0 0 Ot h e r p r o p o s e d f e e s Su p p l e m e n t a l a i r p o r t w a t e r f e e s Ap p l i e s o n l y t o M c C l e l l a n - P a l o m a r A i r p o r t ac c o u n t s. Ap p l i e s o n l y t o c o m m e r c i a l b u i l d i n g s w i t h a se p a r a t e f i r e s e r v i c e l i n e . Pr o p o s e d c h a n g e i n t i e r s Si n g l e f a m i l y h o m e s a r e b i l l e d t h r e e d i f f e r e n t u s a g e r a t e s , ba s e d o n h o w m u c h w a t e r t h e y u s e i n a m o n t h . W a t e r us e f e e s a r e c a l c u l a t e d b y m u l t i p l y i n g t h e n u m b e r o f un i t s y o u u s e b y t h e c o s t p e r u n i t b a s e d o n y o u r u s a g e ti e r . T h e C a r l s b a d M u n i c i p a l W a t e r D i s t r i c t i s p r o p o s i n g t o sw i t c h t h e t i e r s . Cu r r e n t t i e r s Ti e r 1 0 t o 1 0 u n i t s b i l l e d a t l o w e s t r at e Ti e r 2 10 t o 1 8 u n i t s b i l l e d a t m e d i u m r a te Ti e r 3 18 u n i t s a n d o v e r b i l l e d a t h i g h e s t r at e Pr o p o s e d t i e r s Ti e r 1 0 t o 1 0 u n i t s b i l l e d a t l o w e s t r at e Ti e r 2 Ov e r 1 0 u ni t s b i l l e d a t m e d i u m r a t e 1 u n i t o f w a t e r i s a b o u t 7 5 0 g a l l o n s . Ne w l i n e i t e m = m o r e t r a n s p a r e n c y Th e r a t e p a s s e d t h r o u g h t o C a r l s b a d cu s t o m e r s b y t h e S a n D i e g o C o u n t y W a t e r Au t h o r i t y w i l l n o w b e i t e m i z e d o n i t s ow n l i n e . Mo s t w a t e r a g e n c i e s i n t h e c o u n t y a l r e a d y bi l l t h i s w a y , a l l o w i n g c u s t o m e r s t o s e e r i g h t on t h e i r b i l l s h o w m u c h g o e s t o b u y i n g w a t e r an d h o w m u c h i s u s e d t o o p e r a t e C a r l s b a d ’ s wa t e r s y s t e m . Th e W a t e r A u t h o r i t y p a s s - t h r o u g h c h a r g e s l i s t e d a r e b a s e d o n a s s u m e d r a t e i n c r e a s e s b y t h e W a t e r A u t h o r i t y . I f a d o p t e d b y C M W D ’ s B o a r d a t t h e p u b l i c h e a r i n g , t h e r a t e s w i l l i n c l u d e th e m a x i m u m p a s s - t h r o u g h c h a r g e s t h a t m a y b e i m p o s e d f o r e a c h y e a r . I f t h e W a t e r A u t h o r i t y a d o p t s i t s r a t e s b e l o w t h e a s s u m e d m a x i m u m , t h e n t h e p a s s - t h r o u g h c h a r g e s w i l l b e ad j u s t e d d o w n a c c o r d i n g l y . + = To t a l 7/ 1 / 2 5 1 / 1 / 2 6 1 / 1 / 2 7 $3 3 . 6 8 $ 3 7 . 8 9 $ 4 0 . 5 8 $4 3 . 5 6 $ 4 9 . 0 2 $ 5 2 . 4 2 $6 5 . 9 9 $ 7 4 . 4 0 $ 7 9 . 3 5 $1 2 1 . 6 0 $ 1 3 7 . 3 3 $ 1 4 6 . 1 6 $1 9 0 . 6 4 $ 2 1 5 . 5 5 $ 2 2 9 . 1 4 $2 6 9 . 5 7 $ 3 0 4 . 9 0 $ 3 2 3 . 9 6 $3 4 8 . 5 0 $ 3 9 4 . 2 5 $ 4 1 8 . 7 9 $5 7 6 . 2 7 $ 6 5 2 . 2 1 $ 6 9 2 . 4 9 $1 , 1 3 0 . 7 1 $ 1 , 2 7 9 . 4 4 $ 1 , 3 5 8 . 3 4 $1 , 8 2 1 . 1 0 $ 2 , 0 6 1 . 6 3 $ 2 , 1 8 8 . 1 4 $2 , 6 2 8 . 0 2 $ 2 , 9 7 5 . 9 0 $ 3 , 1 5 8 . 0 5 Feb. 11, 2025 Item #8 Page 263 of 265 Wa t e r D i s t r i c t s S e r v i n g t h e C i t y o f C a r l s b a d Ca r l s b a d M u n i c i p a l W a t e r D i s t r i c t Ge n e r a l i n f o r m a t i o n : 4 4 2 - 3 3 9 - 2 7 2 2 Bi l l i n g a n d s e r v i c e : 4 4 2 - 3 3 9 - 2 4 2 0 ww w . c a r l s b a d c a . g o v / w a t e r Ol i v e n h a i n M u n i c i p a l W a t e r D i s t r i c t 76 0 - 7 5 3 - 6 4 6 6 ww w . o l i v e n h a i n . c o m Va l l e c i t o s W a t e r D i s t r i c t 76 0 - 7 4 4 - 0 4 6 0 ww w . v w d . o r g Exhibit 6 Feb. 11, 2025 Item #8 Page 264 of 265 Agencies Providing Sewer Servicesin the City of Carlsbad Sewer Service Area City of Carlsbad Wastewater Division 442-339-2722 main For sign-ups, installs, or disconnects442-339-2420 www.carlsbadca.gov/sewer Leucadia Wastewater District 760 753-0155 www.lcwd.org Vallecitos Water District 760-744-0460 www.vwd.org Vallecitos Water District City of Carlsbad Wastewater Division Leucadia Wastewater District Exhibit 7 Feb. 11, 2025 Item #8 Page 265 of 265 2025 Cost of Service Studies for Water & Wastewater, Setting Public Hearing and Establishing Procedures for Rates Amanda L. Flesse, Utilities Director/CMWD General Manager Shoshana Aguilar, Senior Management Analyst February 11, 2025 1 1.Adopt a City Council resolution approving and filing the 2025 Wastewater Cost of Service Study, setting a public hearing for April 22, 2025, at 5 p.m., to approve increases to rates for wastewater services effective July 1, 2025, and directing the City Manager or designee to issue a written notice of the public hearing. 2.Adopt a City Council resolution establishing a procedure for customer and property owner objections to proposed property-related fees and charges for wastewater services. ITEM 8: SET RATES PUBLIC HEARING CITY OF CARLSBAD PROPOSED ACTIONS 2 3.Adopt a Carlsbad Municipal Water District Board of Directors resolution approving and filing the 2025 Potable and Recycled Water Cost of Service Study, Setting a public hearing for April 22, 2025, at 5 p.m., to approve increases to rates for potable and recycled water services effective July 1, 2025, and directing the Executive Manager or designee to issue written notice of the public hearing. 4.Adopt a Carlsbad Municipal Water District Board of Directors resolution establishing a procedure for customer and property owner objections to proposed water-related fees and charges for water services. ITEM 8: SET RATES PUBLIC HEARING CMWD PROPOSED ACTIONS 3 Water Recycled waterWastewater TODAY’S PRESENTATION ITEM 8: SET RATES PUBLIC HEARING ITEM 8: SET RATES PUBLIC HEARING AVERAGE MONTHLY BILL (Water and wastewater) 5 $- $30 $60 $90 $120 $150 $180 Av e r a g e M o n t h l y R e s i d e n t i a l W a t e r B i l l ITEM 8: SET RATES PUBLIC HEARING Average: $114.49 $91.10$73.91 HOW CARLSBAD COMPARES-WATER 6 HOW CARLSBAD COMPARES- WASTEWATER $- $30 $60 $90 $120 $150 Av e r a g e M o n t h l y W a s t e w a t e r B i l l ITEM 8: SET RATES PUBLIC HEARING Average: $66.02 $59.85 $51.74 7 BY THE NUMBERS ITEM 8: SET RATES PUBLIC HEARING 8 TODAY’S PRESENTATION •Background •Rate Setting Process •Proposed Rates •Next Steps ITEM 8: SET RATES PUBLIC HEARING 9 Yearly rate increases funded services and infrastructure repair Public hearing Cost-of-service studies developed for proposed rate updates 2022-2024 2024 Notifications mailed to customers (Prop 218) If approved, new rates go into effect Customer/ business outreach Jan. 2022 Council last voted on rate increases Set public hearing Feb. 2025 Water Authority 14% rate increase & Board presentation April 22, 2025 July 2025 ITEM 8: SET RATES PUBLIC HEARING 10 Revenue requirement analysis Water demand analysis Cost of service analysis Rate design and calculation Rate adoption COST OF SERVICE STUDY ITEM 8: SET RATES PUBLIC HEARING 11 Can’t make profit on utility rates Adequately fund operations, maintenance and capital investments Can’t exceed cost to provide service RATE REQUIREMENTS ITEM 8: SET RATES PUBLIC HEARING 12 PUBLIC HEARING REQUIREMENT California Proposition 218 Any increase in these rates requires: •Vote to set majority-protest public hearing date and time •Notification of customers at least 45 days before hearing •A public hearing and compliance with California’s Proposition 218 ITEM 8: SET RATES PUBLIC HEARING 13 ITEM 8: SET RATES PUBLIC HEARING 14 Why Increases? Rising costs Aging infrastructure 73 years 30-50 years Carlsbad’s age Infrastructure lifespan Encina Wastewater Authority capital improvement projects and treatment costs Increased cost to purchase water from San Diego County Water Authority ITEM 8: SET RATES PUBLIC HEARING 17 WATER COST/ACRE FOOT FROM WATER AUTHORITY $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 20 1 6 20 1 7 20 1 8 20 1 9 20 2 0 20 2 1 20 2 2 20 2 3 20 2 4 20 2 5 20 2 6 ITEM 8: SET RATES PUBLIC HEARING 19 •More than half the water bill is pass-through charges •Increase transparency •Common practice among other water agencies in San Diego County PASS THROUGH CHARGES ITEM 8: SET RATES PUBLIC HEARING 20 PASS THROUGH CHARGES (Sample) 21 Simplify billing Two tiers for single family residential customers instead of three San Diego County McClellan-Palomar Airport rate A unique rate for airport accounts to cover costs associated with water distribution mains that only serve the airport ITEM 8: SET RATES PUBLIC HEARING OTHER RATE CHANGES 22 Current 7/1/25 1/1/26 1/1/27 $ 73.91 $ 91.10 $ 103.38 $ 109.62 Single Family Residential Average Bill 1 gallon of Carlsbad’s tap water costs about a penny ITEM 8: SET RATES PUBLIC HEARING POTENTIAL WATER RATES 23 $- $30 $60 $90 $120 $150 $180 Av e r a g e M o n t h l y R e s i d e n t i a l W a t e r B i l l RATES BELOW COUNTY AVERAGE Average: $114.49 $91.10$73.91 24 WASTEWATER Current 7/1/25 1/1/26 1/1/27 $ 51.74 $ 59.85 $ 68.22 $ 77.78 Single Family Residential Average Bill ITEM 8: SET RATES PUBLIC HEARING POTENTIAL WASTEWATER RATES 26 RATES BELOW COUNTY AVERAGE $- $30 $60 $90 $120 $150 Av e r a g e M o n t h l y W a s t e w a t e r B i l l Average: $66.02 $59.85 $51.74 27 RECYCLED WATER •Recycled water rates are 25% lower than potable irrigation rates •$4 million in grant funding in last 5 years •Local drought-proof supply protects potable supply •Rates are increasing to keep up with expenses and inflation ITEM 8: SET RATES PUBLIC HEARING RECYCLED WATER INCREASES 29 FINANCIAL RESERVES FINANCIAL RESERVES Potable water ITEM 8: SET RATES PUBLIC HEARING 31 FINANCIAL RESERVES Wastewater ITEM 8: SET RATES PUBLIC HEARING 32 FINANCIAL RESERVES Recycled water ITEM 8: SET RATES PUBLIC HEARING 33 OUTREACH Mailer to 30,000 customer accounts Webinar for commercial customers Flyers at city facilities Website and social media Direct outreach to largest customers Public notice in the newspaper ITEM 8: SET RATES PUBLIC HEARING ITEM 6: SET RATES PUBLIC HEARINGITEM 8: SET RATES PUBLIC HEARING 36 1.Adopt a City Council resolution approving and filing the 2025 Wastewater Cost of Service Study, setting a public hearing for April 22, 2025, at 5 p.m., to approve increases to rates for wastewater services effective July 1, 2025, and directing the City Manager or designee to issue a written notice of the public hearing. 2.Adopt a City Council resolution establishing a procedure for customer and property owner objections to proposed property-related fees and charges for wastewater services. ITEM 8: SET RATES PUBLIC HEARING CITY OF CARLSBAD PROPOSED ACTIONS 37 3.Adopt a Carlsbad Municipal Water District Board of Directors resolution approving and filing the 2025 Potable and Recycled Water Cost of Service Study, Setting a public hearing for April 22, 2025, at 5 p.m., to approve increases to rates for potable and recycled water services effective July 1, 2025, and directing the Executive Manager or designee to issue written notice of the public hearing. 4.Adopt a Carlsbad Municipal Water District Board of Directors resolution establishing a procedure for customer and property owner objections to proposed water-related fees and charges for water services. ITEM 8: SET RATES PUBLIC HEARING CMWD PROPOSED ACTIONS 38 Thank you