HomeMy WebLinkAbout2025-02-11; Municipal Water District; Resolution 1760RESOLUTION 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 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
Water Cost-of-Service Study
2025 Potable and Recycled Water Cost-of-Service Study
FINAL / February 2025
Attachment A
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(Carlsbad
Municipal Water District
• carollo·
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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
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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
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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
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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
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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
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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.
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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.
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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
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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.
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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.
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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.
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» 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
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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
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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.
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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
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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.
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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.
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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.
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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.
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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 $72.98
Notes: (1) Value is presented without depreciation since it is not a cash expense. (2) Line or column totals may not tie due to rounding.
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Table 10 Expenditures - Recycled Water ($ 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.
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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.
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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.
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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.
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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 $15.8 million for internal requirements.
The proposed rates represent an overall increase in user rates and charges of 13.2-percent for 2025 in
which increases in SDCWA costs are the main driver. SDCWA has adopted significant increases for calendar year 2025 that will result in a 14.3-percent increase in the costs paid by CMWD to SDCWA for
imported water. The CMWD internal rates will increase by 10.9-percent to cover increases in operating
costs, to maintain the operating component of reserves, and to continue to meet debt coverage obligations.
After 2025, proposed pass-through increases are calculated based on projected rate increases from SDCWA, projected imported water purchases, and projected sales. The study assumes a 15-percent increase in SDCWA costs for 2026, approximately 4-percent in 2027 and 2028, and approximately 3-
percent in 2029. Increases in the CMWD rates are proposed at 10-percent per year in 2026 and 2027 and projected at 7.5-percent per year for 2028 and 2029. Table 16 shows the proposed rate and pass-through revenues and increases for each fiscal year. The Revenues Prior to Each Year’s Increase assume that the
increases from proposed increases in previous years are implemented as proposed.
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For example, the revenues prior to increases for FYE 2026 are inclusive of the increases proposed for FYE
2025 as well as customer growth.
Figure 2 Rate Revenues with First Year Increase and Restructuring for Pass-through
Table 16 User Revenues and Proposed Increases ($ 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
$50.0
Current Rate
Structure
Proposed Rate
Structure
(FYE 2025)
Mi
l
l
i
o
n
s
SDCWA
Pass-
Through
CMWD
Cost
Recovery
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The proposed potable water rate revenue increases, to be implemented on July 1, 2025, would be a full
cost-of-service adjustment, and rate adjustments will vary by customer class and rate component. For FYE 2026 and onward, the percentage rate revenue increase is recommended to be applied to the 2025 cost-of-service-based rates on January 1 of each year.
Over time, the District has been proactive in annually contributing to the replacement of its system. Based on the current fund balances, the District can mitigate the necessary rate adjustments by spending down
reserves to fund capital projects over the next several years.
Table 17 Cash Flow Sufficiency Test - Potable Water ($ 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.
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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
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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.
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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 $43.82
Notes: (1) Line or column totals may not tie due to rounding.
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Table 21 SDCWA Variable Pass-through Calculation – Calendar Year Basis ($ 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)
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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 $2,218.54
Fiscal year pass-through revenues are calculated by applying the calculated calendar year pass-through rates and charges to calendar year sales, then averaging the appropriate calendar years for each fiscal
year. For example, FYE 2025 revenues are calculated as the average of CY 2024 and CY 2025 revenues. Table 24 and Table 25 show the calculation of fiscal year variable pass-through and fixed pass-through revenues, respectively. Table 26 shows the combined fiscal year pass through revenue.
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Table 24 Calculated Variable Pass-through Revenues – Potable Water ($ 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.
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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.
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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:
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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.
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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%
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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.
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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.
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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.
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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.
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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.
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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.
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The allocation factors used in the potable water functional allocation are outlined in Table 31.
Table 31 Functional Allocation Factors - Potable
Allocation Customer Service Base Max Day Max Hour Fire SDCWA IAC SDCWA Fixed As All Others
Customer Only(1) 96.2% 3.8%
Customer Only - No Fire 100.0%
Service Only(2) 98.4% 1.6%
Service Only - No Fire 100.0%
SDCWA Only 100.0%
Desal Fixed/Var(3) 59.5% 40.5%
Max Day 100.0%
Max Hour 100.0%
Base/Max Day (4) 50.9% 49.1%
Base/Max Day/Max Hour (4) 34.5% 33.2% 32.3%
Max Day/Max Hour (4) 50.7% 49.3%
Max Day/Hour w/ Fire(5) 47.7% 50.7% 1.6%
Plant-In-Service(6) 15.9% 6.0% 38.7% 37.7% 1.6%
As All Others 100.0%
Notes: (1) Allocation proportional to the number of connections for retail potable customers and private fire protection connections. (2) Allocation proportional to the number of MEUs for retail potable customers and private fire protection MEUs with private fire protection component adjusted to reflect only the portion of the system related to providing system wide fire protection. (3) Allocation split fixed (Service) and variable (Base) components in proportion to fixed and variable desalination costs based on the purchase agreement with SDCWA. (4) Allocation based on extra capacity demands as described in 4.4. (5) Max Day/Max Hour allocation adjusted to account for private fire connections share of infrastructure costs. (6) Allocation of fixed assets as shown in Table 32. (7) Line or column totals may not tie due to rounding.
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Table 32 Fixed Asset Allocation (Plant-in-Service) - Potable ($ millions)
Asset Class Replacement Value Customer Service Base Max Day Max Hour Systemwide Fire Protection
Land $11.57 100.0%
Buildings $12.32 100.0%
Water Service & Meters $5.50 100.0%
Machinery & Equipment $13.44 100.0%
District Fire Connections $0.01 100.0%
Reservoirs $322.00 28.9% 27.8% 27.1% 16.2%
Pipes & Pumping $1,193.00 43.1% 41.9% 15.0%
Construction in Progress $0.00
Total Allocation $1,557.85 $42.84 $93.08 $603.58 $587.33 $231.02
Percentage Allocation 2.7% 6.0% 38.7% 37.7% 14.8%
Reallocation of Systemwide Fire Protection to Service and Private Fire Protection
Customer Service Base Max Day Max Hour Private Fire Protection
Fixed Asset Allocation for Cost-of-Service 15.9% 6.0% 38.7% 37.7% 1.6%
Notes: (1) Line or column totals may not tie due to rounding.
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Table 33 O&M Allocation to Rate Components - Potable ($ millions)
Operating Expenditures Customer Service Base Max Day Max Hour Private Fire SDCWA As All Others Total
Customer Account Service $0.05 - - - - - - - $0.05
Meters and Services - $1.46 - - - $0.02 - - $1.49
Admin $3.52 - - - - $0.14 - - $3.66
Distribution - - - $1.87 $1.99 $0.06 - - $3.92
Supply - - $0.14 $0.13 - - - - $0.27
SDCWA Variable - - - - - - $23.59 - $23.59
SDCWA Fixed - $5.92 - - - $0.10 - - $6.02
SDCWA IAC - $2.07 - - - - - - $2.07
Desal - $5.94 $4.05 - - - - - $9.98
Conservation - - - $0.11 - - - - $0.11
Fire Protection - $0.05 - - - $0.00 - - $0.05
Cross Connection Control - $0.39 - - - $0.01 - - $0.40
Engineering - $0.13 $0.05 $0.31 $0.30 $0.01 - - $0.79
General - - - - - - - $0.97 $0.97
Operating Expenditures Subtotal $3.57 $15.96 $4.23 $2.42 $2.29 $0.35 $23.59 $0.97 $53.39
Reallocation of "As All Others" $0.12 $0.54 $0.14 $0.08 $0.08 $0.01 ($0.97) -
Total Allocation $3.69 $16.50 $4.37 $2.50 $2.36 $0.36 $23.59 - $53.39
Notes: (1) Line or column totals may not tie due to rounding.
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Table 34 Revenue Requirements Allocation to Rate Components - Potable ($ millions)
Rate Revenue Requirement Customer Service Base Max Day Max Hour Private Fire SDCWA As All Others Total
Operating Expenses $3.69 $16.50 $4.37 $2.50 $2.36 $0.36 $23.59 - $53.39
Debt - - - - - - - - -
Rate Funded Capital - - - - - - - - -
Replacement Funding (Depreciation Funding) - - - - - - - - -
Cash Funded Capital - $1.11 $0.42 $2.71 $2.63 $0.12 - - $6.98
Cash Flows - - - - - - - ($2.78) ($2.78)
Less Offsetting Revenues - ($12.79) ($0.42) ($2.71) ($2.63) ($0.12) ($23.59) $0.45 ($41.81)
Total Rate Revenues to be Collected $3.69 $4.82 $4.37 $2.50 $2.36 $0.36 - ($2.33) $15.78
Reallocation of "As All Others" ($0.48) ($0.62) ($0.56) ($0.32) ($0.30) ($0.05) Direct Pass Through $2.33 -
Total Allocation $3.22 $4.20 $3.81 $2.18 $2.06 $0.31 - - $15.78
Note: (1) Line or column totals may not tie due to rounding.
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4.6 Functional Allocation Results – Potable
Once each revenue requirement element is allocated, a combined allocation of the District’s expenses is
used as the basis for allocating rate revenue requirements to each functional category and subsequently to each customer class. The functional allocation also defines the split between costs recovered through fixed rate components and those recovered through variable rate components.
4.6.1 Potable Water Functional Allocation Results
The results of the potable water functional allocation analysis are shown in Table 35. The largest
component of the system's costs is related to variable supply costs for imported water from SDCWA. However, this Study allocates all SDCWA-related costs to a direct pass-throughs.
The Service, Customer, and Fire cost components are collected through the CMWD fixed rate components and total approximately 49 percent of the District's potable costs. These costs are recovered through Carlsbad’s monthly delivery fee. The District’s water usage fees recover the remaining 51 percent of costs,
which are allocated to the Base, Max Day, and Max Hour components.
Table 35 Functional Allocation Results Summary - Potable Water ($ 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 $15.78 100.0%
Notes: (1) Line or column totals may not tie due to rounding.
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4.6.2 Unit Cost Calculation
The amount of costs allocable to customers is calculated with the unique units associated with each cost function. For example, the customer component is the same for all meter sizes and is calculated by
dividing the allocated customer costs by the number of accounts. The resulting value will then be allocated to each customer class in the final cost of service step. Table 36 presents this calculation.
Table 36 Unit Cost Calculation - Potable Water ($ 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.
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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 $0.30
Notes: (1) Line or column totals may not tie due to rounding.
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Table 40 Max Hour Allocation ($ 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 $0.09
Notes: (1) Line or column totals may not tie due to rounding.
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Table 42 Service Allocation ($ 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.
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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.
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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.
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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 $21.14
Percentage Allocation 25.0% 59.8% 15.2%
Notes: (1) Line or column totals may not tie due to rounding.
Table 47 shows the allocation of O&M costs to rate components and Table 48 shows the allocation of
revenue requirements to rate components.
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Table 47 O&M Allocation to Rate Components – Recycled ($ millions)
Operating Expenditures Customer Service Base Supply As All Others Total
Customer Account Service $0.01 - - - - $0.01
Meters and Services $0.07 $0.27 - - - $0.34
Admin - $0.98 - - - $0.98
Distribution - - $1.56 - - $1.56
Supply - - - $4.70 - $4.70
Cross Connection Control - $0.24 $0.24 - - $0.48
Engineering - $0.16 $0.39 $0.10 - $0.65
General - - - - $0.23 $0.23
Operating Expenditures Subtotal $0.07 $1.65 $2.18 $4.80 $0.23 $8.94
Reallocation of "As All Others" $0.00 $0.04 $0.06 $0.13 ($0.23) -
Total Allocation $0.08 $1.69 $2.24 $4.93 - $8.94
Notes: (1) Line or column totals may not tie due to rounding.
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Table 48 Revenue Requirements Allocation to Rate Components – Recycled ($ millions)
Rate Revenue Requirement Customer Service Base Supply As All Others Total
Operating Expenses $0.08 $1.69 $2.24 $4.93 - $8.94
Debt - - $2.39 - - $2.39
Rate Funded Capital - - - - - -
Replacement Funding (Depreciation Funding) - - - - - -
Transfer to Capital Fund - - - - - -
Cash Flows - - - - ($0.96) ($0.96)
Less Offsetting Revenues - - - - ($0.64) ($0.64)
Total Rate Revenues to be Collected $0.08 $1.69 $4.63 $4.93 ($1.60) $9.72
Reallocation of "As All Others" ($0.01) ($0.24) ($0.65) ($0.70) $1.60 -
Total Allocation $0.06 $1.45 $3.97 $4.23 - $9.72
Notes: (1) Line or column totals may not tie due to rounding.
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4.7.7 Functional Allocation Results – Recycled
Once each revenue requirement element is allocated, a combined allocation of the District’s expenses is used as the basis for allocating rate revenue requirements to each functional category and subsequently
to each customer class. The functional allocation also defines the split between costs recovered through fixed rate components and those recovered through variable rate components.
4.7.7.1 Recycled Water Functional Allocation Results
The results of the recycled water functional allocation analysis are shown in Table 49. The Service and Customer components are collected through fixed rate components and total approximately 15.4 percent of the District's potable costs. These costs are recovered through the monthly delivery fee. The recycled
water usage fees recover the remaining 84.6 percent of costs, which are allocated to the Base and Supply components.
Table 49 Functional Allocation Results Summary – Recycled ($ 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.
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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.
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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.
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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
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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.
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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.
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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.
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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.
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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
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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
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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 $1.74
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Customer Class Tier Current ($/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 $2,751.28
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Table 69 Proposed Recycled Water Usage Fees
Customer Class Current ($/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
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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
I I I I
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
l_Carlsbad
Municipal Water Oislric
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
l_Carlsbad
Municipal Water Oislric
CITY OF CARLSBAD
Potable Water and Recycled Water Financial Model
Customer Accounts Projection
Potable Water
Adjustment to Potable Meters Based on Priceout Check -0.46%
Accounts Input based on 12-31-23 Carlsbad Meter Counts.pdf
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 FYE 2024
Single Family
5/8"21,194 21,262 21,080 21,237 21,367 21,412 21,492 21,704 21,177
3/4"1,425 1,430 1,401 1,411 1,420 1,423 1,428 1,442 1,407
1"1,772 1,778 1,827 1,841 1,852 1,856 1,863 1,881 1,836
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
TOTAL 24,421 24,499 24,339 24,521 24,670 24,722 24,815 25,060 24,452
Multi-Family
5/8"314 315 316 319 320 321 322 326 318
3/4"133 133 134 135 136 136 137 138 135
1"205 206 206 208 209 210 210 213 207
1.5"255 256 257 259 260 261 262 264 258
2"341 342 343 346 348 349 350 353 345
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
TOTAL 1,266 1,270 1,274 1,284 1,292 1,294 1,299 1,312 1,280
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{_Carlsbad
Municipal Water District
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CITY OF CARLSBAD
Potable Water and Recycled Water Financial Model
Customer Accounts Projection
Potable Water
Adjustment to Potable Meters Based on Priceout Check -0.46%
Accounts Input based on 12-31-23 Carlsbad Meter Counts.pdf
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 FYE 2024
Commercial/Other
5/8"259 260 259 261 262 263 264 266 260
3/4"149 149 155 156 157 158 158 160 156
1"298 299 301 303 305 305 306 310 302
1.5"338 339 339 342 344 345 346 349 341
2"605 607 624 629 633 634 636 643 627
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
TOTAL 1,704 1,709 1,694 1,707 1,717 1,721 1,727 1,744 1,702
Agricultural
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
TOTAL 11 11 12 12 12 12 12 12 12
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{_Carlsbad
Municipal Water District
-
CITY OF CARLSBAD
Potable Water and Recycled Water Financial Model
Customer Accounts Projection
Potable Water
Adjustment to Potable Meters Based on Priceout Check -0.46%
Accounts Input based on 12-31-23 Carlsbad Meter Counts.pdf
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 FYE 2024
Irrigation
5/8"76 76 79 79 80 80 80 81 79
3/4"57 57 59 59 60 60 60 60 59
1"179 180 184 186 187 187 188 190 185
1.5"184 185 183 185 186 186 187 189 184
2"263 264 271 273 274 275 276 279 272
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
TOTAL 768 770 787 793 798 800 803 811 791
Potable Total MEU Ratio
(5/8" Basis)
MEU Ratio
(SDCWA IAC,
3/4" Basis)
5/8"1.00 1.00 21,843 21,913 21,733 21,896 22,029 22,076 22,158 22,377
3/4"1.50 1.00 1,764 1,770 1,749 1,762 1,773 1,776 1,783 1,801
1"2.50 1.60 2,455 2,463 2,519 2,538 2,554 2,559 2,569 2,594
1.5"5.00 3.00 799 802 802 808 813 815 818 826
2"8.00 5.20 1,220 1,224 1,250 1,260 1,267 1,270 1,275 1,287
2.5"11.50 7.40 2 2 2 2 2 2 2 2
3"15.00 9.60 57 57 22 22 22 22 22 23
4"25.00 16.40 17 17 19 19 19 19 19 19
6"50.00 30.00 10 10 7 7 7 7 7 7
8"80.00 52.00 3 3 3 3 3 3 3 3
10"115.00 78.00 0 0 0 0 0 0 0 0
TOTAL 28,170 28,260 28,107 28,317 28,490 28,549 28,657 28,939
Potable MEUs (5/8" Basis)46,425 46,573 46,079 46,424 46,707 46,805 46,981 47,444
Potable MEUs (SDCWA IAC, 3/4" Basis)37,573 37,693 37,320 37,600 37,829 37,908 38,051 38,426
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{_Carlsbad
Municipal Water District
-
CITY OF CARLSBAD
Potable Water and Recycled Water Financial Model
Customer Accounts Projection
Potable Water
Adjustment to Potable Meters Based on Priceout Check -0.46%
Accounts Input based on 12-31-23 Carlsbad Meter Counts.pdf
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 FYE 2024
Recycled Water
Adjustment to Potable Meters Based on Priceout Check 0.64%
MEU Ratio
(5/8" Basis)
5/8"1.00 5 5 5 5 5 5 5 5
3/4"1.50 17 17 17 17 18 18 18 18
1"2.50 249 249 251 253 255 255 256 259
1.5"5.00 340 341 344 347 349 350 351 354
2"8.00 331 332 335 337 339 340 341 345
2.5"11.50 0 0 0 0 0 0 0 0
3"15.00 9 9 9 9 9 9 9 9
4"25.00 6 6 6 6 6 6 6 6
6"50.00 3 3 3 3 3 3 3 3
8"80.00 0 0 0 0 0 0 0 0
10"115.00 0 0 0 0 0 0 0 0
TOTAL 960 963 971 978 984 986 990 1,000
Recycled MEUs (5/8" Basis)5,457 5,502 5,543 5,577 5,589 5,610 5,665
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Municipal Water District
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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
2022 2023 2024 2025 2026 2027 2028 2029
CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Water Purchases - Pass Thrus
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
WATER PURCHASE ESCALATORS
Customer Service Charge Increase (2)(3)5.00%5.00%3.85%4.90%15.00%4.00%3.78%3.28%
Emergency Storage Charge Increase (2)(3)2.00%2.00%0.00%3.17%15.00%4.00%3.78%3.28%
Infrastructure Access Charge Increase (2) (3)1.00%1.00%1.89%4.08%15.00%4.00%3.78%3.28%
Supply Reliability Charge Increase (2)(3)5.00%5.00%5.00%22.53%15.00%4.00%3.78%3.28%
Fixed Transportation Charge 15.00%4.00%3.78%3.28%
MWD Capacity Reservation Charge Increase (2)(3)3.00%3.00%3.00%16.10%11.50%11.50%5.00%5.00%
MWD Readiness to Service Charge Increase 6.00%6.00%3.00%4.00%11.50%11.50%5.00%5.00%
Transportation Rate Increase (3)5.00%5.00%5.00%-25.40%15.00%4.00%3.78%3.28%
SDCWA M&I Melded Supply Rate Increase (3)6.00%6.00%6.00%19.17%15.00%4.00%3.78%3.28%
SDCWA Melded Treatment Rate Increase (3)2.00%2.00%2.00%25.00%15.00%4.00%3.78%3.28%
Desal - Fixed Capital Increase (1)2.50%2.50%2.50%2.50%2.50%2.50%2.50%2.50%
Desal - Fixed Financing Increase (1)9.70%9.70%9.70%9.70%9.70%9.70%9.70%9.70%
Desal - Fixed O&M Increase (1)2.50%2.50%2.50%2.50%2.50%2.50%2.50%2.50%
Desal - Fixed Electricity Increase (1)2.50%2.50%2.50%2.50%2.50%2.50%2.50%2.50%
Desal - Variable O&M Increase (1)2.50%2.50%2.50%2.50%2.50%2.50%2.50%2.50%
Desal - Variable Electricity Increase (1)3.00%3.00%3.00%3.00%3.00%3.00%3.00%3.00%
Desal - Conveyance Cost Increase (1)2.50%2.50%2.50%2.50%2.50%2.50%2.50%2.50%
Desal - Indirect Costs Increase (1)1.50%1.50%1.50%1.50%1.50%1.50%1.50%1.50%
Desal - T.O. Inefficiency Increase (1)6.00%6.00%6.00%6.00%6.00%6.00%6.00%6.00%
Desal - Wheeling Increase (1)5.00%5.00%5.00%5.00%5.00%5.00%5.00%5.00%
AF --> ccf 436
ccf --> gallons 748
NOTES:
(1) Source: Desal unit costs from 2023-04-10_Desal Unit Price Projection.pdf
(2) Sources: 2024 rates from SDCWA Draft Reccomended Budget https://www.sdcwa.org/wp-content/uploads/2022/10/SDCWA-Draft-Recommended-Budget-FYs-24.25-3.23.pdf, 2025 rates from published rates on SDCWA.org as of 8/28/2024
(3) FY19: SDCWA charge escalators based on information form SDCWA.
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{___Carlsbad
Municipal Water District
2022 2023 2024 2025 2026 2027 2028 2029
CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Water Purchases - Pass Thrus
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
SDCWA/MWD Purchases
Water Consumption Override
Water Purchases (AF)12,303 12,195 12,389 12,480 12,514 12,574 12,720 12,874
Water Purchases (ccf)5,358,969 5,312,299 5,396,655 5,436,472 5,450,980 5,477,072 5,540,885 5,608,035
Water Purchasee (MGD)10.98 10.89 11.06 11.14 11.17 11.23 11.36 11.49
0.73%0.61%0.22%0.40%0.97%1.01%
Customer Data (ccf)6,176,814 6,132,107 6,176,814 6,214,735 6,228,552 6,253,402 6,314,176 6,378,129
System Loss (input)4.4%4.4%5.0%5.0%5.0%5.0%5.0%5.0%
System Loss (calculated)5,087,814 5,043,107 5,087,814 5,125,735 5,139,552 5,164,402 5,225,176 5,289,129
14,803 14,695 14,889 14,980
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
Fixed Charges (CY) (1,2,3)
SDCWA IAC charge per MEU (monthly)4.24$ 4.41$ 4.55$ 5.23$ 5.44$ 5.65$ 5.83$
Carlsbad MEUs for IAC - SDCWA charges based on 12/31 accounts from previous year, FY average accounts are projected for the model by projecting from the 12/31/2023 inputs.36,590 40,519 36,602 37,600 37,829 37,908 38,051
CY Carlsbad IAC Charge 1,861,704$ 2,144,268$ 1,998,480$ 2,360,879$ 2,470,280$ 2,569,024$ 2,663,144$
MWD Readiness to Serve Charge (FY)397,836$ 388,920$ 374,916$ 395,556$ 441,045$ 491,765$ 516,353$ 542,171$
MWD Readiness to Serve Charge (CY)393,378$ 381,918$ 385,236$ 418,300$ 466,405$ 504,059$ 529,262$ 555,725$
Allocated Fixed Charges, CY Basis
Customer Service Charge 821,256$ 826,836$ 884,760$ 1,041,588$ 1,197,826$ 1,245,739$ 1,292,823$ 1,335,172$
Emergency Storage Charge 2,073,276 2,045,952 2,083,608 2,375,376 2,731,682 2,840,950 2,948,325 3,044,903
Infrastructure Access Charge 1,861,044 1,861,704 2,144,268 1,998,480 2,360,879 2,470,280 2,569,024 2,663,144
Supply Reliability Charge 1,352,460 1,482,900 1,514,652 1,778,400 2,045,160 2,126,966 2,207,356 2,279,662
Fixed Transportation Charge - 1,041,588 1,197,826 1,245,739 1,292,823 1,335,172
MWD Capacity Reservation Charge 293,856 205,296 229,344 296,328 330,406 368,402 386,822 406,164
MWD Readiness to Serve Charge (Adjusted to CY)393,378 381,918 385,236 418,300 466,405 504,059 529,262 555,725
Sources: 2024 rates from SDCWA Draft Reccomended Budget https://www.sdcwa.org/wp-content/uploads/2022/10/SDCWA-Draft-Recommended-Budget-FYs-24.25-3.23.pdf
2025 rates from published rates on SDCWA.org as of 8/28/2024
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{___Carlsbad
Municipal Water District
2022 2023 2024 2025 2026 2027 2028 2029
CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Water Purchases - Pass Thrus
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
Fixed Charges (FY)
Customer Service Charge 807,228$ 824,046$ 855,798$ 963,174$ 1,119,707$ 1,221,783$ 1,269,281$ 1,313,997$
Emergency Storage Charge 2,041,902 2,059,614 2,064,780 2,229,492 2,553,529 2,786,316 2,894,637 2,996,614
Infrastructure Access Charge 1,857,888 1,861,374 2,002,986 2,071,374 2,179,680 2,415,580 2,519,652 2,616,084
Supply Reliability Charge 1,350,210 1,417,680 1,498,776 1,646,526 1,911,780 2,086,063 2,167,161 2,243,509
Fixed Transportation Charge 520,794 1,119,707 1,221,783 1,269,281 1,313,997
MWD Capacity Reservation Charge 287,640 249,576 217,320 262,836 313,367 349,404 377,612 396,493
MWD Readiness to Service Charge 409,326 387,648 383,577 401,768 442,353 485,232 516,661 542,494
Total Fixed Charges (FY)6,754,194$ 6,799,938$ 7,023,237$ 8,095,964$ 9,640,123$ 10,566,161$ 11,014,286$ 11,423,189$
Fixed per AF $549 $558 $567 $649 $770 $840 $866 $887
4%2%2%14%19%9%3%2%
Variable Charges (CY) (1,2,3)CY 2022 CY 2023 CY 2024 CY 2025 CY 2026 CY 2027 CY 2028 CY 2029
Transportation 173$ 173$ 189$ 141$ 162$ 169$ 175$ 181$
Supply 1,009 1,085 1,200 1,355 1,558 1,621 1,682 1,737
Treatment 310 350 400 500 575 598 621 641
Variable Price per AF 1,492$ 1,608$ 1,789$ 1,996$ 2,295$ 2,387$ 2,477$ 2,559$
Variable Costs (CY Basis)
Transportation 2,119,065$ 2,126,548$ 2,350,162$ 1,762,088$ 2,033,957$ 2,132,718$ 2,239,634$ 2,337,235$
Supply 12,359,170 13,337,023 14,921,662 16,933,536 19,546,185 20,495,271 21,522,723 22,460,658
Treatment 3,797,168 4,302,266 4,973,887 6,248,537 7,212,614 7,562,831 7,941,964 8,288,066
Total Variable Costs (CY)18,275,403$ 19,765,837$ 22,245,711$ 24,944,161$ 28,792,756$ 30,190,819$ 31,704,321$ 33,085,958$
Total Variable Costs (FY)17,822,757$ 19,020,620$ 21,005,774$ 23,594,936$ 26,868,459$ 29,491,788$ 30,947,570$ 32,395,140$
Total SDCWA & MWD Charges (FY)24,576,951$ $25,820,558 $28,029,011 $31,690,900 $36,508,581 $40,057,949 $41,961,857 $43,818,328
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{___Carlsbad
Municipal Water District
2022 2023 2024 2025 2026 2027 2028 2029
CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Water Purchases - Pass Thrus
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
Variable Pass-Through Calculation - CY Basis
Costs Included in Variable Pass-through For Reference OnlyFor Reference Only
Transportation 2,126,548$ 2,350,162$ 1,762,088$ 2,033,957$ 2,132,718$ 2,239,634$ 2,337,235$
Supply 13,337,023$ 14,921,662$ 16,933,536$ 19,546,185$ 20,495,271$ 21,522,723$ 22,460,658$
Treatment 4,302,266$ 4,973,887$ 6,248,537$ 7,212,614$ 7,562,831$ 7,941,964$ 8,288,066$
Variable Price per AF 19,765,837$ 22,245,711$ 24,944,161$ 28,792,756$ 30,190,819$ 31,704,321$ 33,085,958$
Calendar Year Sales (AF)6,154,460 6,195,775 6,221,643 6,240,977 6,283,789 6,346,152 6,401,784
Calculated Calendar Year Pass-Through per CCF - Charges to all Potable Water Sold 3.21$ 3.59$ 4.009$ 4.614$ 4.805$ 4.996$ 5.168$
Calculated Calendar Year Pass-Through per CCF - Charges to all Potable Water Sold 3.21$ 3.59$ 4.009$ 4.614$ 4.805$ 4.996$ 5.168$
Applied as Calculated Applied as Calculated Applied as Calculated Applied as Calculated Applied as Calculated Applied as Calculated
Rounded Calendar Year Pass-Through per CCF 4.01$ 4.62$ 4.81$ 5.00$ 5.17$
Fiscal Variable Year Pass-Through Revenues
Fiscal Year Sales 6,176,814 6,214,735 6,228,552 6,253,402 6,314,176 6,378,129
Fiscal Year Variable Pass-Through Revenues $21,005,774 $23,594,936 $26,868,459 $29,491,788 $30,947,570 $32,395,140
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{___Carlsbad
Municipal Water District
2022 2023 2024 2025 2026 2027 2028 2029
CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Water Purchases - Pass Thrus
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
Fixed Pass-Through Calculation - CY Basis
Costs Included in Fixed Pass-through
Carlsbad MEU Basis (CY Basis)For Reference OnlyFor Reference Only
Customer Service Charge 826,836$ 884,760$ 1,041,588$ 1,197,826$ 1,245,739$ 1,292,823$ 1,335,172$
Emergency Storage Charge 2,045,952 2,083,608 2,375,376 2,731,682 2,840,950 2,948,325 3,044,903
Supply Reliability Charge 1,482,900 1,514,652 1,778,400 2,045,160 2,126,966 2,207,356 2,279,662
Fixed Transportation Charge - - 1,041,588 1,197,826 1,245,739 1,292,823 1,335,172
MWD Capacity Reservation Charge 205,296 229,344 296,328 330,406 368,402 386,822 406,164
MWD Readiness to Service Charge (Adjusted to CY basis)381,918 385,236 418,300 466,405 504,059 529,262 555,725
Less: SDCWA Fixed in Fire Service Rate 1.65%(81,438) (83,987) (114,533) (131,301) (137,274) (142,638) (147,570)
Carlsbad MEU Basis Costs (CY Basis)4,861,464$ 5,013,613$ 6,837,048$ 7,838,005$ 8,194,582$ 8,514,774$ 8,809,227$
Potable MEUs (5/8" Basis) (FY)46,573 46,079 46,424 46,707 46,805 46,981 47,444
Potable MEUs (5/8" Basis) (CY)46,326 46,252 46,566 46,756 46,893 47,212 47,687
Calculated Monthly Unit Cost per MEU (5/8" Basis) (CY)8.74$ 9.03$ 12.24$ 13.97$ 14.56$ 15.03$ 15.39$
Implemented Calendar Year Pass-Through per MEU (5/8" Basis) (CY)8.74$ 9.03$ 12.24$ 13.97$ 14.56$ 15.03$ 15.39$
Applied as Calculated Applied as Calculated Applied as Calculated Applied as Calculated Applied as Calculated Applied as Calculated
SDCWA MEU Basis (CY Basis)For Reference OnlyFor Reference Only
Infrastructure Access Charge 1,861,704$ 2,144,268$ 1,998,480$ 2,360,879$ 2,470,280$ 2,569,024$ 2,663,144$
Carlsbad MEUs for IAC (3/4" Basis) (FY)37,693 37,320 37,600 37,829 37,908 38,051 38,426
Carlsbad MEUs for IAC (3/4" Basis) (CY)37,507 37,460 37,714 37,868 37,979 38,238 38,622
IAC Monthly Unit Cost per MEU (SDCWA IAC, 3/4" Basis)4.12$ 4.79$ 4.42$ 5.20$ 5.42$ 5.60$ 5.75$
Implemented Calendar Year IAC Pass-Through per MEU (SDCWA IAC, 3/4" Basis)4.12$ 4.79$ 4.42$ 5.20$ 5.42$ 5.60$ 5.75$
Applied as Calculated Applied as Calculated Applied as Calculated Applied as Calculated Applied as Calculated
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{___Carlsbad
Municipal Water District
2022 2023 2024 2025 2026 2027 2028 2029
CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Water Purchases - Pass Thrus
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
SDCWA Fixed Pass-through per Meter Size
Meter Size MEU Ratio (5/8"
Basis)
MEU Ratio
(SDCWA IAC,
3/4" Basis)
For Reference
Only Unrounded Unrounded Unrounded Unrounded Unrounded
5/8"1.00 1.00 13.821$ 16.65$ 19.17$ 19.98$ 20.63$ 21.14$
3/4"1.50 1.00 18.338$ 22.77$ 26.15$ 27.26$ 28.14$ 28.84$
1"2.50 1.60 30.244$ 37.65$ 43.24$ 45.08$ 46.53$ 47.68$
1.5"5.00 3.00 59.530$ 74.43$ 85.43$ 89.07$ 91.94$ 94.21$
2"8.00 5.20 97.163$ 120.85$ 138.77$ 144.69$ 149.35$ 153.03$
2.5"11.50 7.40 139.313$ 173.39$ 199.10$ 207.58$ 214.27$ 219.55$
3"15.00 9.60 181.463$ 225.92$ 259.42$ 270.47$ 279.19$ 286.08$
4"25.00 16.40 304.354$ 378.31$ 434.45$ 452.96$ 467.55$ 479.09$
6"50.00 30.00 595.301$ 744.25$ 854.34$ 890.73$ 919.42$ 942.09$
8"80.00 52.00 971.633$ 1,208.46$ 1,387.73$ 1,446.86$ 1,493.47$ 1,530.34$
10"115.00 78.00 1,412.284$ 1,751.52$ 2,011.75$ 2,097.47$ 2,165.06$ 2,218.53$
Fixed Pass-through Revenue
Meter Size
5/8"21,814 21,963 22,052 22,117 22,268 22,491
3/4"1,755 1,767 1,775 1,780 1,792 1,810
1"2,529 2,546 2,556 2,564 2,581 2,607
1.5"805 811 814 816 822 830
2"1,255 1,263 1,269 1,272 1,281 1,294
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
Calendar Year Fixed Pass-through Revenues 7,165,908$ 8,835,528$ 10,198,884$ 10,664,863$ 11,083,798$ 11,472,371$
Cost 7,157,881$ 8,835,528$ 10,198,884$ 10,664,863$ 11,083,798$ 11,472,371$
Fiscal Year Fixed Pass-through Revenues 3,582,954$ 8,000,718$ 9,517,206$ 10,431,873$ 10,874,330$ 11,278,085$
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{___Carlsbad
Municipal Water District
2022 2023 2024 2025 2026 2027 2028 2029
CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Water Purchases - Pass Thrus
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
SDCWA Fixed Pass-through per Meter Size - Rounded
Meter Size
5/8"16.66$ 19.17$ 19.99$ 20.63$ 21.15$
3/4"22.77$ 26.15$ 27.27$ 28.15$ 28.84$
1"37.66$ 43.24$ 45.08$ 46.54$ 47.68$
1.5"74.43$ 85.44$ 89.08$ 91.95$ 94.21$
2"120.85$ 138.78$ 144.69$ 149.35$ 153.04$
2.5"173.39$ 199.10$ 207.58$ 214.27$ 219.56$
3"225.93$ 259.43$ 270.48$ 279.19$ 286.08$
4"378.31$ 434.45$ 452.96$ 467.55$ 479.10$
6"744.26$ 854.35$ 890.74$ 919.43$ 942.10$
8"1,208.47$ 1,387.74$ 1,446.86$ 1,493.48$ 1,530.34$
10"1,751.52$ 2,011.75$ 2,097.48$ 2,165.07$ 2,218.54$
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{___Carlsbad
Municipal Water District
2022 2023 2024 2025 2026 2027 2028 2029
CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Water Purchases - Pass Thrus
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
DESAL PURCHASES Rates provided on FY basis.
Contract Desal Water, Min. 2500 AF (1,5) 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500
Additional desal water, AF (1)- - - - - - - -
Total Desal (AF)2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500
In ccf 1,089,000 1,089,000 1,089,000 1,089,000 1,089,000 1,089,000 1,089,000 1,089,000
Source: Desal unit costs from 2023-04-10_Desal Unit Price Projection.pdf
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
Fixed Charges ($/AF), Calendar Year (4,5)
Capital, Debt Service Charge 641$ 652$ 657$ 763$ 1,016$ 1,042$ 1,068$ 1,094$
Capital, Equity Return Charge 448 485 586 600 627 639 651 664
Fixed O&M 567 615 649 738 787 807 827 848
Fixed Electrictiy 187 193 254 260 267 274 280 287
Annual Management Fee 14 15 15 15 16 16
Variable Charges ($/AF) (4,5)
Variable O&M 130$ 141$ 149$ 149$ 154$ 158$ 161$ 166$
Variable Electricity 803 826 1,185 1,221 1,257 1,295 1,334 1,374
Other Costs ($/AF) (4,5)
Conveyance (Pipeline Debt Payment)$221.46 $227.00 233.25$ $239.08 $245.06 $251.18 $257.46 $263.90
Indirect Costs (2)33.04 33.53 20.67$ 20.98 21.29 21.61 21.94 22.27
Administration Charge 10.80 11.45 12.15$ 12.88 13.65 14.47 15.34 16.26
Wheeling (Transportation Charge Including credits) (2)0.00 0.00 (23.26)$ (24.42)(25.64)(26.93)(28.27)(29.69)
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{___Carlsbad
Municipal Water District
2022 2023 2024 2025 2026 2027 2028 2029
CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Water Purchases - Pass Thrus
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
Fixed Costs ($)
Capital 1,603,500$ 1,630,300$ 1,643,425$ 1,907,397$ 2,540,600$ 2,603,825$ 2,668,825$ 2,735,175$
Financing 1,119,825 1,213,625 1,464,125 1,499,500 1,567,550 1,596,900 1,627,425 1,659,775
Fixed O&M 1,418,700 1,537,400 1,622,750 1,843,769 1,968,575 2,017,800 2,068,250 2,119,950
Fixed Electrictiy 468,275 482,325 635,050 650,926 667,199 683,879 700,976 718,501
Annual Management Fee - - 35,375 36,259 37,166 38,095 39,047 40,024
Variable Costs ($)
Variable O&M 324,625$ 351,775$ 371,300$ 373,100$ 384,250$ 393,850$ 403,700$ 413,800$
Variable Electricity 2,006,650 2,065,000 2,963,275 3,052,173 3,143,738 3,238,051 3,335,192 3,435,248
Other Costs ($)
Conveyance 553,654$ 567,495$ 583,125$ 597,703$ 612,646$ 627,962$ 643,661$ 659,752$
Indirect Costs 82,596 83,835 51,675 52,450 53,237 54,035 54,846 55,669
T.O. Inefficiency 27,004 28,624 30,375 32,198 34,129 36,177 38,348 40,649
Wheeling (Transportation Charge Including credits)- - (58,150) (61,058) (64,110) (67,316) (70,682) (74,216)
Total Desal Costs, CY (3)7,604,828$ 7,960,378$ 9,342,325$ 9,984,419$ 10,944,980$ 11,223,258$ 11,509,589$ 11,804,326$
Desal Costs (FY Basis)7,604,828$ 7,960,378$ 9,342,325$ 9,984,419$ 10,944,980$ 11,223,258$ 11,509,589$ 11,804,326$
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{___Carlsbad
Municipal Water District
2022 2023 2024 2025 2026 2027 2028 2029
CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Water Purchases - Pass Thrus
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
Recycled Water Purchases
Assumptions
Vallecitos Annual Escalation 3.0%3.0%3.0%3.0%3.0%5.0%5.0%5.0%
Reclaimed Water Increases
Expected AF to be Sold (Historical Sales &Customer Data)#N/A 4,189 4,226 4,254 4,263 4,273 4,310 4,351
System Losses 5.0%5.0%5.0%5.0%5.0%5.0%5.0%5.0%
Recycled Water to be Purchased #N/A 4,398 4,437 4,466 4,476 4,487 4,525 4,568
Source of Supply (in AF)
Vallecitos Water District (VWD)2,386 2,386 2,386 2,386 2,700 2,700 2,700 2,700
Carlsbad Water Recycling Facility (CWRF)#N/A 2,012 2,051 2,080 1,776 1,787 1,825 1,868
Total Recycled Water (AF)#N/A 4,398 4,437 4,466 4,476 4,487 4,525 4,568
Unit Costs
Vallecitos Water District (VWD)$951 $1,157 $1,194 $1,230 1,454$ $1,527 $1,603 $1,684
Purchase Amount
Vallecitos Water District (VWD)2,268,646$ 2,761,924$ 2,850,000$ 2,935,500$ 3,925,800$ 4,122,900$ 4,329,045$ 4,545,497$
Outside RW Purchases 2,268,646$ 2,761,924$ 2,850,000$ 2,935,500$ 3,925,800$ 4,122,900$ 4,329,045$ 4,545,497$
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{___Carlsbad
Municipal Water District
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
CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Capital Improvement Plan
ANNUAL CIP ESCALATION:2.00%2.00%0.00%0.00%0.00%
Cumulative CIP Escalation 0.00%2.00%4.04%4.04%4.04%4.04%
BURN RATE FOR NEW APPROPRIATIONS 100.00%100.00%100.00%100.00%100.00%100.00%
WATER CONNECTION PROJECTS FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
Include Project Number Project Title
39042 Water System Rehabilitation and Replacement
39042 Water System Rehabilitation and Replacement
50012 Maerkle Reservoir Transmission Main - 262,000 1,849,000
50121 College Boulevard - Cannon Road To Badger Lane (490 Zone)- 1,400,000 - - -
50131 College Boulevard - Cannon Road To Badger Lane (375 Zone)- 1,400,000 - - -
50202 Pressure Reducing Station Program 600,000 600,000 600,000
50332 Crestview Drive Transmission Main 171,000 551,000
Future ->50352 Limited Access Pipeline Relocation Program 1,122,000
Future ->50381 Desalinated Water Flow Control Facility No. 5 758,000 (10,000,000) - - - -
50441 San Luis Rey Mission Basin Groundwater Supply 20,000 (20,000) - - -
50451 Poinsettia Lane - Cassia Road to Skimmer Court (Reimbursement Agreement)- - - - - -
50552 Palomar Airport Waterline Realignment -
50581 Water Modeling - - - - - -
50591 Hydroelectric Generation at Water Facilities 33,000 39,000 - -
50611 Rancho Carlsbad Groundwater Supply - (200,000) - -
55424 SCADA Improvements 79,430
Spend Down of Available Balance 1,654,102
WATER CONNECTION PROJECTS TOTAL: 1,707,102$ 1,791,430$ 4,213,000$ 600,000$ 1,849,000$ -$
SUMMARY OF WATER CONNECTION PROJECTS FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
UNESCALATED
R&R -$ -$ -$ -$ -$ -$
Expansion 1,707,102 1,791,430 4,213,000 600,000 1,849,000 -
Total 1,707,102$ 1,791,430$ 4,213,000$ 600,000$ 1,849,000$ -$
ESCALATED
R&R -$ -$ -$ -$ -$ -$
Expansion 1,707,102 1,827,259 4,383,205 624,240 1,923,700 -
Total 1,707,102$ 1,827,259$ 4,383,205$ 624,240$ 1,923,700$ -$
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Municipal Water District
CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Capital Improvement Plan
ANNUAL CIP ESCALATION:2.00%2.00%0.00%0.00%0.00%
Cumulative CIP Escalation 0.00%2.00%4.04%4.04%4.04%4.04%
BURN RATE FOR NEW APPROPRIATIONS 100.00%100.00%100.00%100.00%100.00%100.00%
WATER REPLACEMENT PROJECTS FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
Include Project Number Project Title
35722 Orion Center -$ -$ -$ -$ -$
39041 Water System Rehabilitation and Replacement 2,800,000$ 3,000,000$ 3,000,000$ 3,000,000$ 3,000,000$ 3,000,000$
47222 Maerkle Reservoir Solar Project - 231,413 - - - -
50011 Maerkle Reservoir Transmission Main (578,000) 278,000 2,396,000
50071 Cathodic Protection Program 190,000 190,000 190,000 190,000 190,000 -
50081 Tri-Agency Water Transmission Pipeline Replacement (1,290,000) 483,000 4,017,040
50091 Maerkle Facility Improvements 800,000 200,000 - - - -
50191 Water Valve Repair/Replacement Program 960,000 960,000 960,000 1,000,000 1,000,000 1,000,000
50201 Pressure Reducing Station Program 600,000 - - - 600,000 600,000
50241 Reservoir Condition Assessment and Repair Program 2,040,000 - - - - -
50331 Crestview Drive Transmission Main 284,000 (605,000) - - - -
50351 Limited Access Pipeline Relocation Program 761,000 1,428,000 600,000 - -
50431 Fire Flow Capacity System Improvements 415,000 - - -
50442 San Luis Rey Mission Basin Groundwater Supply - - - - - -
50461 Santa Fe II Reservoir Site Electrical Improvements 110,000 40,000 - - - -
50481 Carlsbad Boulevard Waterline Replacement at Terramar - - - - - -
50501 Normally Closed Valve (Install Motorized Valve)300,000 - - - - -
50511 Water Infrastructure Condition Assessment Program 410,000 420,000 420,000 450,000 450,000 450,000
50521 Water Loss Monitoring Program (182,911) - - - - -
50551 Palomar Airport Waterline Realignment - - - - - -
50571 Santa Fe II Inlet Pipeline - 350,000
50612 Rancho Carlsbad Groundwater Supply - (200,000) - -
52031 Carlsbad Water Recycling Facility (Encina Capital Projects)- - - - - -
52051 Abandon Potable Services (New Recycled Services)250,000 - - - - -
52101 Recycled Water Phase 3 - Reservoir (800,000) - - - - -
55422 SCADA Improvements 2,413,000 531,570 - - - -
60192 Valley and Magnolia Complete Streets - 650,000 - - - -
60513 El Camino Real Widening - Arenal Road to La Costa Avenue 1,000,000 - - - - -
Spend Down of Available Balance 36,913,327
WATER REPLACEMENT PROJECTS TOTAL: 47,395,416$ 6,845,983$ 5,931,000$ 4,640,000$ 11,653,040$ 5,400,000$
10,482,089$ 6,845,983$ 5,931,000$ 4,640,000$ 11,653,040$ 5,400,000$
SUMMARY OF WATER REPLACEMENT PROJECTS FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
R&R 47,395,416$ 6,845,983$ 5,931,000$ 4,640,000$ 11,653,040$ 5,400,000$
Expansion - - - - - -
Total 47,395,416$ 6,845,983$ 5,931,000$ 4,640,000$ 11,653,040$ 5,400,000$
R&R 47,395,416$ 6,982,903$ 6,170,612$ 4,827,456$ 12,123,823$ 5,618,160$
Expansion - - - - - -
Total 47,395,416$ 6,982,903$ 6,170,612$ 4,827,456$ 12,123,823$ 5,618,160$
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Municipal Water District
CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Capital Improvement Plan
ANNUAL CIP ESCALATION:2.00%2.00%0.00%0.00%0.00%
Cumulative CIP Escalation 0.00%2.00%4.04%4.04%4.04%4.04%
BURN RATE FOR NEW APPROPRIATIONS 100.00%100.00%100.00%100.00%100.00%100.00%
SUMMARY OF WATER SYSTEM CIP FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
Unescalated
R&R 47,395,416$ 6,845,983$ 5,931,000$ 4,640,000$ 11,653,040$ 5,400,000$
Expansion 1,707,102 1,791,430 4,213,000 600,000 1,849,000 -
Total 49,102,518$ 8,637,413$ 10,144,000$ 5,240,000$ 13,502,040$ 5,400,000$
Escalated
R&R 47,395,416$ 6,982,903$ 6,170,612$ 4,827,456$ 12,123,823$ 5,618,160$
Expansion 1,707,102$ 1,827,259$ 4,383,205$ 624,240$ 1,923,700$ -$
Total 49,102,518$ 8,810,161$ 10,553,818$ 5,451,696$ 14,047,522$ 5,618,160$
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Municipal Water District
CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Capital Improvement Plan
ANNUAL CIP ESCALATION:2.00%2.00%0.00%0.00%0.00%
Cumulative CIP Escalation 0.00%2.00%4.04%4.04%4.04%4.04%
BURN RATE FOR NEW APPROPRIATIONS 100.00%100.00%100.00%100.00%100.00%100.00%
RECYCLED WATER REPLACEMENT PROJECTS FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
Include Project Number Project Title
35725 Orion Center (2,515,600) (192,987) -
47491 Carlsbad Water Recycling Facility Roof Replacement 324,024 -
50072 Cathodic Protection Program 100,000 - 100,000 -
50242 Reservoir Condition Assessment and Repair Program 200,000 -
52032 Carlsbad Water Recycling Facility (Encina Capital Projects)767,000 2,112,000 252,000 285,000 1,405,000 280,000
52102 Recycled Water Phase 3 - Reservoir 1,000,000 -
52111 Recycled Water Condition Assessment Program 50,000 50,000 50,000 50,000 50,000 56,000
52121 Recycled Water Valve and Appurtenance Replacement Program - 120,000 125,000 125,000 125,000 126,000
52131 Carlsbad Water Recycling Facility Irrigation and Landscape (140,000) -
52151 C Tank Access Road and Electrical Improvements - 1,120,000 -
52161 Recycled Water Pipeline Replacement 350,000 350,000 350,000 350,000 350,000 430,000
55423 SCADA Improvements 337,600 398,000 -
Spend Down of Available Balance 7,590,734
RECYCLED WATER REPLACEMENT PROJECTS TOTAL: 8,063,758$ 2,837,013$ 1,997,000$ 810,000$ 1,930,000$ 892,000$
SUMMARY OF RECYCLED WATER REPLACEMENT PROJECTS FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
Unescalated
R&R 8,063,758$ 2,837,013$ 1,997,000$ 810,000$ 1,930,000$ 892,000$
Expansion - - - - - -
Total 8,063,758$ 2,837,013$ 1,997,000$ 810,000$ 1,930,000$ 892,000$
Escalated
R&R 8,063,758$ 2,893,753$ 2,077,679$ 842,724$ 2,007,972$ 928,037$
Expansion - - - - - -
Total 8,063,758$ 2,893,753$ 2,077,679$ 842,724$ 2,007,972$ 928,037$
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Municipal Water District
CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Capital Improvement Plan
ANNUAL CIP ESCALATION:2.00%2.00%0.00%0.00%0.00%
Cumulative CIP Escalation 0.00%2.00%4.04%4.04%4.04%4.04%
BURN RATE FOR NEW APPROPRIATIONS 100.00%100.00%100.00%100.00%100.00%100.00%
RECYCLED WATER CONNECTION PROJECTS FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
Include Project Number Project Title
52152 C Tank Access Road and Electrical Improvements - 364,000
Carlsbad Water Recycling Facility Expansion 300,000
Spend Down of Available Balance 50,000
RECYCLED WATER CONNECTION PROJECTS TOTAL: 50,000$ 300,000$ 364,000$ -$ -$ -$
SUMMARY OF RECYCLED WATER CONNECTION PROJECTS FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
Unescalated
R&R -$ -$ -$ -$ -$ -$
Expansion 50,000 300,000 364,000 - - -
Total 50,000$ 300,000$ 364,000$ -$ -$ -$
Escalated
R&R -$ -$ -$ -$ -$ -$
Expansion 50,000 306,000 378,706 - - -
Total 50,000$ 306,000$ 378,706$ -$ -$ -$
SUMMARY OF RECYCLED WATER SYSTEM CIP FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
Unescalated
R&R 8,063,758$ 2,837,013$ 1,997,000$ 810,000$ 1,930,000$ 892,000$
Expansion 50,000 300,000 364,000 - - -
Total 8,113,758$ 3,137,013$ 2,361,000$ 810,000$ 1,930,000$ 892,000$
Escalated
R&R 8,063,758$ 2,893,753$ 2,077,679$ 842,724$ 2,007,972$ 928,037$
Expansion 50,000 306,000 378,706 - - -
Total 8,113,758$ 3,199,753$ 2,456,384$ 842,724$ 2,007,972$ 928,037$
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Municipal Water District
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
CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Potable Water O&M
FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
REVENUES Projection (Pre-
Rate Increase)
Projection (Pre-
Rate Increase)
Projection (Pre-
Rate Increase)
Projection (Pre-
Rate Increase)
Projection (Pre-
Rate Increase)
Projection (Pre-
Rate Increase)
Projection (Pre-
Rate Increase)
Charges for Services
4885 Plan Check General Inflation -$ -$ -$ -$ -$ -$ -$
4976 Special Benefit District Servc General Inflation - - - - - - -
4995 Admin Fees General Inflation - - - - - - -
5100 Commodity Usage Cust. Grwth + Usage Grwth 28,385,758 29,170,239 6,735,943 7,486,632 8,266,233 9,182,466 9,972,265
5101 Water Delivery Charges Customer Growth 13,013,359 13,373,002 7,492,817 8,327,857 9,195,056 10,214,240 11,092,784
SDCWA Variable Pass-Throughs [Calculated]$23,594,936 $26,868,459 $29,491,788 $30,947,570 $32,395,140
SDCWA Fixed Pass-Throughs [Calculated]8,000,718 9,517,206 10,431,873 10,874,330 11,278,085
5110 New Account Charges Gnrl Infltn + Cstmr Dmnd Grwth 130,000 137,473 143,810 147,707 151,955 157,251 162,793
5111 Backflow Device Gnrl Infltn + Cstmr Dmnd Grwth 175,000 185,060 193,591 198,836 204,554 211,684 219,145
5113 Quick Turnon Fees Gnrl Infltn + Cstmr Dmnd Grwth 12,000 12,690 13,275 13,634 14,027 14,515 15,027
5114 Misc Services General Inflation - - - - - - -
5115 Scheduled Disconnect Fee Gnrl Infltn + Cstmr Dmnd Grwth 4,000 4,230 4,425 4,545 4,676 4,838 5,009
5124 Service Installation Fees Gnrl Infltn + Cstmr Dmnd Grwth 20,000 21,150 22,125 22,724 23,378 24,192 25,045
5125 Misc Conn Chg Gnrl Infltn + Cstmr Dmnd Grwth - - - - - - -
5127 Non Jurisdictional Fees Gnrl Infltn + Cstmr Dmnd Grwth - - - - - - -
Airport Capital Replacement Charge [Calculated]32,943 68,193 70,580 73,050 75,607
Other Charges for Services Gnrl Infltn + Cstmr Dmnd Grwth - - - - - - -
Total Charges for Services 41,740,117$ 42,903,844$ 46,234,582$ 52,655,794$ 57,854,118$ 61,704,138$ 65,240,898$
Tax Revenues
4010 Adjustments - Current Taxes General Inflation -$ -$ -$ -$ -$ -$ -$
4011 Property Taxes - Current Property Tax Increase 4,101,000 3,418,475 3,519,320 3,632,642 3,753,245 3,865,468 3,984,137
4012 Refunds - Current Taxes Property Tax Increase - - - - - - -
4015 Supplemental Property Taxes Property Tax Increase 85,000 70,854 72,944 75,293 77,792 80,118 82,578
4016 Refunds - Supplemental Taxes Property Tax Increase - - - - - - -
4018 Unitary Tax (combine w/4011)Property Tax Increase 70,000 58,350 60,071 62,006 64,064 65,980 68,005
4020 Prior Years Property Taxes Property Tax Increase 57,000 47,514 48,915 50,490 52,167 53,726 55,376
4021 Refunds - Prior Year Taxes Property Tax Increase (25,000) (20,839) (21,454) (22,145) (22,880) (23,564) (24,288)
4027 Surplus Property Tax Increment Property Tax Increase - - - - - - -
4111 Sales and Use tax Property Tax Increase - - - - - - -
Other Tax Revenues Property Tax Increase - - - - - - -
Total Tax Revenues 4,288,000$ 3,574,352$ 3,679,796$ 3,798,285$ 3,924,388$ 4,041,728$ 4,165,809$
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CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Potable Water O&M
FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
Licenses and Permits
4452 Fire Protect Sys General Inflation -$ -$ -$ -$ -$ -$ -$
Other Licenses and Permits General Inflation - - - - - - -
Total Licenses and Permits -$ -$ -$ -$ -$ -$ -$
Intergovernmental
4525 Homeowners Exemption General Inflation 23,000$ 24,150$ 25,116$ 25,744$ 26,387$ 27,047$ 27,723$
4632 Federal Grants - Capital One Time Expense - - - - - - -
4691 Misc Other Fed One Time Expense - - - - - - -
4753 SDCWA/MWD Credits One Time Expense - - - - - - -
4754 SDCWA Rebates One Time Expense - - - - - - -
Other Intergovernmental General Inflation - - - - - - -
Total Intergovernmental 23,000$ 24,150$ 25,116$ 25,744$ 26,387$ 27,047$ 27,723$
Fines & Forfeitures
5221 Reconnect Fees General Inflation 1,300$ 1,365$ 1,420$ 1,455$ 1,491$ 1,529$ 1,567$
5212 Code Violations General Inflation - - - - - - -
5222 Return Check Fee General Inflation 5,850 6,143 6,388 6,548 6,712 6,879 7,051
5225 Late Charges General Inflation 150,000 157,500 163,800 167,895 172,092 176,395 180,805
5226 Door Hanger Fee General Inflation 4,600 4,830 5,023 5,149 5,277 5,409 5,545
5229 Misc Fines General Inflation - - - - - - -
Other Fines & Forfeitures General Inflation - - - - - - -
Total Fines & Forfeitures 161,750$ 169,838$ 176,631$ 181,047$ 185,573$ 190,212$ 194,968$
Income from Prop & Investments
5300 Interest Income - Pooled Cash [Calculated]-$ 2,550,720$ 2,171,010$ 1,608,758$ 1,403,408$ 1,264,022$ 1,120,273$
5305 Interest - Unrealized Gains/Losses General Inflation - - - - - - -
5313 Interest Income-Leases One Time Expense - - - - - - -
5315 Interest Income - Property Tax Interest Income 4,500 4,613 4,728 4,846 4,967 5,091 5,219
5320 Facilities Rentals General Inflation - - - - - - -
5325 GASB 87 Lease Revenue REVENUE One Time Expense - - - - - - -
5341 Other Rentals and Leases General Inflation 46,980 49,329 51,302 52,585 53,899 55,247 56,628
5342 Cell Site Leases General Inflation 210,564 221,092 229,936 235,684 241,576 247,616 253,806
5360 Sale of Capital Assets General Inflation - - - - - - -
5361 Donated Assets One Time Expense - - - - - - -
5362 Scrap & Recycle General Inflation - - - - - - -
Other Income from Prop & Investments General Inflation - - - - - - -
Total Income from Prop & Investments 262,044$ 2,825,754$ 2,456,976$ 1,901,873$ 1,703,851$ 1,571,976$ 1,435,925$
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CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Potable Water O&M
FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
Interdepartmental
5430 Eng Labor General Inflation 42,000$ 44,100$ 45,864$ 47,011$ 48,186$ 49,391$ 50,625$
5442 Reimbursed Work for Other Dept.General Inflation 2,000 2,100 2,184 2,239 2,295 2,352 2,411
Other Interdepartmental General Inflation - - - - - - -
Total Interdepartmental 44,000$ 46,200$ 48,048$ 49,249$ 50,480$ 51,742$ 53,036$
Other Revenues
5542 Major Facilities General Inflation -$ -$ -$ -$ -$ -$ -$
5550 Prior Year Fee Refunds General Inflation - - - - - - -
5632 Str Lights/Signs General Inflation - - - - - - -
5634 Misc Damages General Inflation - - - - - - -
5636 Loss Recovery General Inflation 50,000 52,500 54,600 55,965 57,364 58,798 60,268
5638 Misc Reimbursement Losses General Inflation - - - - - - -
5639 Misc Reimbursement Expenses General Inflation - - - - - - -
5664 Misc AR Write Offs General Inflation - - - - - - -
5674 Misc Revenues General Inflation 40,000 42,000 43,680 44,772 45,891 47,039 48,215
Other General Inflation - - - - - - -
Total Other Revenues 90,000$ 94,500$ 98,280$ 100,737$ 103,255$ 105,837$ 108,483$
Other Financing Sources
5900 Transfers In No Annual Increase -$ -$ -$ -$ -$ -$ -$
Other Other Financing Sources General Inflation - - - - - - -
Total Other Financing Sources -$ -$ -$ -$ -$ -$ -$
TOTAL REVENUES 46,608,911$ 49,638,638$ 52,719,429$ 58,712,728$ 63,848,053$ 67,692,679$ 71,226,842$
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CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Potable Water O&M
FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
CODE LINE ITEM ESCALATOR FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
EXPENDITURES Projection (Pre-
Rate Increase)
Projection (Pre-
Rate Increase)
Projection (Pre-
Rate Increase)
Projection (Pre-
Rate Increase)
Projection (Pre-
Rate Increase)
Projection (Pre-
Rate Increase)
Projection (Pre-
Rate Increase)
Personnel
6100 Reg Salaries Labor Inflation 2,825,713$ 3,024,270$ 3,145,241$ 3,239,598$ 3,336,786$ 3,436,890$ 3,539,996$
6135 Hazard Pay Labor Inflation - 42,663 44,370$ 45,701$ 47,072$ 48,484$ 49,938$
6101 Incentive Pay Labor Inflation - - - - - - -
6140 Other Personnel Labor Inflation - - - - - - -
6150 IOD Worker's Comp Labor Inflation - - - - - - -
6200 Overtime Salaries Labor Inflation 111,214 125,000 130,000 133,900 137,917 142,055 146,316
6210 Standby Pay Labor Inflation 24,470 23,550 24,492 25,227 25,984 26,763 27,566
6300 Parttime Salaries Labor Inflation - - - - - - -
6305 Intern Salaries Labor Inflation 12,760 12,760 13,270 13,669 14,079 14,501 14,936
6310 Elected Officials' Salaries Labor Inflation - 8,000 8,320 8,570 8,827 9,091 9,364
6400 Temporary Help Labor Inflation 40,000 60,000 62,400 64,272 66,200 68,186 70,232
6405 Retired Annuitant Projects Labor Inflation 4,761 - - - - - -
6501 Health Insurance Labor - Health Insurance 453,494 600,070 638,354 677,486 717,457 758,352 801,578
6510 Life Insurance Labor Inflation 2,049 2,088 2,172 2,237 2,304 2,373 2,444
6511 AD&D City Paid Labor Inflation 1,029 1,044 1,086 1,118 1,152 1,186 1,222
6520 Vision Insurance Labor Inflation - - - - - - -
6530 Medicare Labor Inflation 43,195 46,002 47,842 49,277 50,756 52,278 53,847
6620 MTG Physicals Labor Inflation - - - - - - -
6629 Cell Phone Allowance Labor Inflation - - - - - - -
6630 Auto Allowance Labor Inflation 1,625 1,625 1,690 1,741 1,793 1,847 1,902
6640 Earned Leave Accrual Labor Inflation - - - - - - -
6651 Healthy Emp Awards Labor Inflation - - - - - - -
6653 Final Vacation Pay Labor Inflation - - - - - - -
6654 Final Sick Leave Pay Labor Inflation - - - - - - -
6655 Disability Labor Inflation 25,513 18,206 18,934 19,502 20,087 20,690 21,311
6656 Unemployment Labor Inflation 14,513 15,856 16,490 16,985 17,494 18,019 18,560
6657 Worker's Compensation Labor Inflation 59,130 79,050 82,212 84,678 87,219 89,835 92,530
6720 PERS Labor - PERS (Normal Cost)346,620 383,967 415,172 427,627 440,456 453,669 467,280
6721 PERS (GASB 68 Contra Account)One Time Expense - - - - - - -
PERS - Repayment Labor - PERS (UAL)- - - - - - -
6722 OPEB Expense One Time Expense - - - - - - -
6723 PERS Unfunded Liability Expense Labor - PERS (Normal Cost)352,474 338,150 533,118 543,929 554,908 566,056 577,373
6730 Social Security Labor Inflation - - - - - - -
6740 Deferred Comp Labor Inflation 478 478 497 512 527 543 560
6741 Def Comp Match Labor Inflation - - - - - - -
Other Personnel Labor Inflation - - - - - - -
Total Personnel Costs 4,319,038$ 4,782,779$ 5,185,660$ 5,356,027$ 5,531,016$ 5,710,819$ 5,896,955$
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CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Potable Water O&M
FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
Maintenance & Equipment
7110 Office Equip Rental General Inflation -$ - -$ -$ -$ -$ -$
7111 Other Mach & Equip General Inflation 2,000 10,595 11,019 11,294 11,577 11,866 12,163
7115 Vehicle Rentals General Inflation 17,150 17,150 17,836 18,282 18,739 19,207 19,688
7119 Misc Rentals General Inflation 14,000 51,000 53,040 54,366 55,725 57,118 58,546
7120 Misc Leases General Inflation - - - - - - -
7210 Office Equip Maintenance General Inflation - - - - - - -
7211 Communication Equip Maintenance General Inflation 3,000 3,000 3,120 3,198 3,278 3,360 3,444
7215 Software Maintenance General Inflation 67,703 23,777 24,728 25,347 25,980 26,630 27,296
7216 Computer Maintenance General Inflation - - - - - - -
7220 Vehicle Maint General Inflation 30,000 30,000 31,200 31,980 32,780 33,599 34,439
7221 Wash and Wax General Inflation 33,455 23,450 24,388 24,998 25,623 26,263 26,920
7222 Other Equip Maintenance General Inflation 100 100 104 107 109 112 115
7225 Car Wash Repairs General Inflation - - - - - - -
7226 Pipeline Maintenance General Inflation 110,750 54,500 56,680 58,097 59,549 61,038 62,564
7227 Fire Hydrant Maintenance - City General Inflation 36,301 38,963 40,521 41,534 42,573 43,637 44,728
7228 FIRE HYDRANT MAINTENANCE - OTHER General Inflation 15,000 15,000 15,600 15,990 16,390 16,799 17,219
7230 Routine Building Maintenance General Inflation 5,000 5,000 5,200 5,330 5,463 5,600 5,740
7241 Asphalt Repairs General Inflation 149,360 100,000 104,000 106,600 109,265 111,997 114,797
7244 Street Sweeping General Inflation - - - - - - -
7249 Maintenance, Repair and Rehab General Inflation 10,830 12,760 13,270 13,602 13,942 14,291 14,648
7400 Audit General Inflation - - - - - - -
7410 Legal General Inflation 70,000 57,907 60,223 61,728 63,272 64,853 66,475
7435 Administrative General Inflation 45,000 45,000 46,800 47,970 49,169 50,398 51,658
7480 Claims Admin General Inflation - - - - - - -
7490 Misc Professional Services General Inflation 767,059 747,360 777,255 796,686 816,603 837,018 857,944
7500 Encina Services General Inflation - - - - - - -
7510 City Generated General Inflation - - - - - - -
7511 Citizen Generated General Inflation - - - - - - -
7550 Miscellaneous Outside Services General Inflation 439,207 531,922 553,199 567,029 581,205 595,735 610,628
7551 Bank Services General Inflation 52,454 52,454 54,552 55,916 57,314 58,747 60,215
7552 Book Binding General Inflation - - - - - - -
7553 Comm Arts Support General Inflation - - - - - - -
7554 Regulatory/Permitting Fees General Inflation 143,400 158,259 164,589 168,704 172,921 177,244 181,676
7556 Misc Services General Inflation - - - - - - -
***PassThru Charges 7557 Customer Service Charge [ Calculated ]6,885,000 855,798 963,174 1,119,707 1,221,783 1,269,281 1,313,997
Emergency Storage Charge [ Calculated ]- 2,064,780 2,229,492 2,553,529 2,786,316 2,894,637 2,996,614
Infrastructure Access Charge [ Calculated ]- 2,002,986 2,071,374 2,179,680 2,415,580 2,519,652 2,616,084
Supply Reliability Charge [ Calculated ]- 1,498,776 1,646,526 1,911,780 2,086,063 2,167,161 2,243,509
Fixed Transportation Charge [ Calculated ]- - 520,794 1,119,707 1,221,783 1,269,281 1,313,997
MWD Capacity Reservation Charge [ Calculated ]- 217,320 262,836 313,367 349,404 377,612 396,493
MWD Readiness to Service Charge [ Calculated ]- 374,916 395,556 441,045 491,765 516,353 542,171
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CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Potable Water O&M
FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
7558 Laundry and Uniform Maintenance General Inflation 8,000 8,000 8,320 8,528 8,741 8,960 9,184
7559 Electrical/Scada Services General Inflation 53,904 107,819 112,132 114,935 117,809 120,754 123,773
7560 Water Sampling Services General Inflation 179,260 175,724 182,753 187,322 192,005 196,805 201,726
7561 Water Conservation Services General Inflation 22,500 11,250 11,700 11,993 12,292 12,600 12,915
7564 Landscaping Services General Inflation 136,120 170,068 176,871 181,293 185,825 190,471 195,233
7710 Ads and Publishing General Inflation 500 500 520 533 546 560 574
7711 Dues and Subscriptions General Inflation 42,500 43,115 44,840 45,961 47,110 48,287 49,495
7712 Books and Publications General Inflation 600 600 624 640 656 672 689
7713 Audio-Visual Materials General Inflation - - - - - - -
7715 Printing General Inflation 12,000 12,000 12,480 12,792 13,112 13,440 13,776
7720 Postage General Inflation 7,000 9,000 9,360 9,594 9,834 10,080 10,332
7725 Office Supplies General Inflation 11,000 11,000 11,440 11,726 12,019 12,320 12,628
7726 Office Furniture & Equipment General Inflation 15,000 15,000 15,600 15,990 16,390 16,799 17,219
7730 Computer Software General Inflation 10,000 10,000 10,400 10,660 10,927 11,200 11,480
7731 Misc. Computer Hardware General Inflation 5,000 8,000 8,320 8,528 8,741 8,960 9,184
7735 Promo Materials General Inflation 11,708 6,000 6,240 6,396 6,556 6,720 6,888
7741 Preschool General Inflation - - - - - - -
7745 Food Expense General Inflation - - - - - - -
7750 Heat and Light Utilities Inflation 126,270 135,897 142,692 149,826 157,318 165,184 173,443
7751 Telephone & Communications Utilities Inflation 13,600 13,600 14,280 14,994 15,744 16,531 17,357
7752 Waste Disposal Services Utilities Inflation 30,149 18,196 19,106 20,061 21,064 22,117 23,223
7753 Water Utilities Inflation 19,322 19,322 20,288 21,303 22,368 23,486 24,660
7801 Building Maintenance General Inflation - - - - - - -
7810 Electrical Supplies General Inflation - - - - - - -
7811 Janitorial Supplies General Inflation - - - - - - -
7812 Sign Materials General Inflation - - - - - - -
7820 Parts-Vehicles General Inflation - - - - - - -
7821 Parts-Equip General Inflation 275,897 206,728 214,997 220,372 225,881 231,528 237,317
7830 Rock and Mineral Products General Inflation 15,000 15,000 15,600 15,990 16,390 16,799 17,219
7831 Asphalt General Inflation 5,000 5,000 5,200 5,330 5,463 5,600 5,740
7850 Small Tools General Inflation 5,000 8,000 8,320 8,528 8,741 8,960 9,184
7851 Safety Equipment General Inflation 44,900 44,900 46,696 47,863 49,060 50,286 51,544
7852 Uniforms and Accessories General Inflation 7,284 7,284 7,575 7,765 7,959 8,158 8,362
7853 Meters/Fittings - New Development General Inflation 102,268 62,943 65,461 67,097 68,775 70,494 72,256
7863 Meters/Fittings - Replacement General Inflation 183,431 163,089 169,613 173,853 178,199 182,654 187,221
7855 Fire Hose and Appliances General Inflation - - - - - - -
7856 Rescue Equipment General Inflation - - - - - - -
7857 Personal Protective Equipment General Inflation - - - - - - -
7858 Breathing Apparatus Equipment General Inflation - - - - - - -
7865 Automated Meter Program General Inflation - - - - - - -
7880 Gasoline and Oil Utilities Inflation 2,500 2,500 2,625 2,756 2,894 3,039 3,191
7881 Propane General Inflation 500 500 520 533 546 560 574
7882 Other Petrol Products General Inflation - - - - - - -
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CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Potable Water O&M
FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
7883 Chemicals Chemicals Inflation 55,213 68,485 71,909 75,505 79,280 83,244 87,406
7890 CMWD Purc Water-Outside Agency [ Calculated ]19,000,000 21,005,774 23,594,936 26,868,459 29,491,788 30,947,570 32,395,140
7892 Desal Costs [ Calculated ]8,300,000 9,342,325 9,984,419 10,944,980 11,223,258 11,509,589 11,804,326
7899 Misc Supplies General Inflation 45,000 45,000 46,800 47,970 49,169 50,398 51,658
8110 Employee Training General Inflation 6,000 6,000 6,240 6,396 6,556 6,720 6,888
8120 Tuition Reimbursement General Inflation - - - - - - -
8130 Training/Training Related Travel General Inflation 14,928 15,390 16,006 16,406 16,816 17,236 17,667
8500 Depreciation Depreciation Funding 5,000,000 5,000,000 5,058,000 5,116,167 5,175,003 5,234,515 5,294,712
8510 Prop Taxes PD General Inflation 2,869 2,869 2,984 3,058 3,135 3,213 3,294
8520 Conference Travel General Inflation 6,500 3,750 3,900 3,997 4,097 4,200 4,305
8522 Misc. Meals/Miles General Inflation 7,000 3,875 4,030 4,131 4,234 4,340 4,448
8530 Bad Debt Exp - Other Inv/Bills General Inflation 23,000 23,000 23,920 24,518 25,131 25,759 26,403
8532 Disposal of Assets One Time Expense - - - - - - -
8534 Reg Over/Short General Inflation - - - - - - -
8610 Settlements General Inflation - - - - - - -
8615 Interest on Deposit General Inflation - - - - - - -
8621 Interfund Services General Inflation - - - - - - -
8699 Misc Expenditures General Inflation - - - - - - -
8700 Contingencies General Inflation - - - - - - -
8809 Vehicle Direct Charges General Inflation 17,520 3,791 3,943 4,041 4,142 4,246 4,352
8810 Vehicle Maintenance General Inflation 163,344 168,080 174,803 179,173 183,653 188,244 192,950
8811 Vehicle Replacement General Inflation 204,931 194,257 202,028 207,078 212,255 217,562 223,001
8820 Street Lighting General Inflation - - - - - - -
8822 Median Maintenance General Inflation - - - - - - -
8830 General Lab General Inflation 251,630 668,640 695,386 712,770 730,589 748,854 767,576
8840 Copy Services General Inflation - - - - - - -
8855 Records Management Interdept General Inflation - - - - - - -
8860 Information Technologies General Inflation 625,906 747,533 777,434 796,870 816,792 837,212 858,142
8890 Misc Interdepartmental Charges General Inflation 1,898,025 1,983,283 2,062,614 2,114,179 2,167,034 2,221,210 2,276,740
8891 Mis Chg Back General Inflation - - - - - - -
8892 Utility Billing Chargeback General Inflation - - - - - - -
8910 Fiscal Agent Fees General Inflation - - - - - - -
8911 Arbitrage Costs General Inflation - - - - - - -
8912 Misc Debt Expense General Inflation - - - - - - -
8920 Principal [ Calculated ]- - - - - - -
8921 Interest Expense [ Calculated ]- - - - - - -
8922 Int Exp-Capitalized Interest General Inflation - - - - - - -
8930 Amortization Expense General Inflation - - - - - - -
8931 Issuance Costs General Inflation - - - - - - -
Other No Annual Increase - - - - - - -
Meter Replacements General Inflation - - 194,000 198,850 203,821 208,917
Additional Maintenance & Equipment [ Calculated Below ](915,975) (924,107) (1,010,006) (1,102,894) (1,166,418) (1,206,540) (1,245,665)
Total Maintenance & Equipment Costs 44,948,873$ 48,641,754$ 53,210,994$ 59,347,539$ 63,382,500$ 65,794,909$ 68,182,409$
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CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Potable Water O&M
FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
Capital Outlay
9003 Non-Budgeted Cap Equip <$10K General Inflation -$ - -$ -$ -$ -$ -$
9005 Capital Outlay <$10K New General Inflation 1,500 - - - - - -
9006 Capital Outlay < $10K - Repl General Inflation - - - - - - -
9010 Cap Outlay - Vehicles General Inflation 45,365 49,302 51,274 52,556 53,870 55,217 56,597
9018 Non-Budgeted Cap Equip > $10K General Inflation 11,795 - - - - - -
9019 Computer Equip > $10K - New General Inflation 30,223 - - - - - -
9020 Computer Equip > $10K - Repl General Inflation - - - - - - -
9021 Office Equipment General Inflation - - - - - - -
9022 Other Equipment General Inflation - - - - - - -
9030 Office Furniture General Inflation - - - - - - -
9040 Reclass Capital Outlay General Inflation - - - - - - -
9050 Capitalized Assets One Time Expense - - - - - - -
Other Capital Outlay General Inflation - - - - - - -
Total Capital Outlay Costs 88,883$ 49,302$ 51,274$ 52,556$ 53,870$ 55,217$ 56,597$
Other Financing Uses
9999 Transfers Out One Time Expense 5,000,000$ 5,000,000 -$ -$ -$ -$ -$
Other Other Financing Uses General Inflation - - - - - - -
Total Other Financing Uses Costs 5,000,000$ 5,000,000$ -$ -$ -$ -$ -$
Total Expenditures 54,356,794$ 58,473,835$ 58,447,928$ 64,756,123$ 68,967,386$ 71,560,945$ 74,135,962$
Rate Revenues Without Increases FOR REFERENCE - DOES NOT IMPACT MODEL CALCULATIONS
With Split out of Pass-throughs Carlsbad Portion
Commodity Usage Cust. Grwth + Usage Grwth 28,385,758$ 29,170,239$ 6,735,943$ 6,750,073$ 6,775,430$ 6,842,202$ 6,912,290$
Water Delivery Charges Customer Growth 13,013,359 13,373,002 7,492,817 7,508,535 7,536,742 7,611,016 7,688,979
Total Rate Revenues Without Increases $41,399,117 $42,543,241 $14,228,760 $14,258,608 $14,312,172 $14,453,218 $14,601,269
Adjusted down for Pass-through Implementation
Without Split out of Pass-throughs
Commodity Usage Cust. Grwth + Usage Grwth 28,385,758$ 29,170,239$ 29,348,040$ 29,409,605$ 29,520,086$ 29,811,005$ 30,116,371$
Water Delivery Charges Customer Growth 13,013,359 13,373,002 13,454,514 13,482,738 13,533,388 13,666,759 13,806,753
Total Rate Revenues Without Increases $41,399,117 $42,543,241 $42,802,554 $42,892,343 $43,053,473 $43,477,764 $43,923,125
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CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Recycled Water O&M
FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028
CODE LINE ITEM ESCALATOR FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028
REVENUES Projection (Pre-
Rate Increase)
Projection (Pre-
Rate Increase)
Projection (Pre-
Rate Increase)
Projection (Pre-
Rate Increase)
Projection (Pre-
Rate Increase)
Projection (Pre-
Rate Increase)
Charges for Services
5100 Commodity Usage Customer Growth 7,168,231$ 7,510,773$ 7,858,815$ 8,229,690$ 8,632,333$ 9,109,687$
5101 Water Delivery Charges Customer Growth 1,316,515 1,379,426 1,443,348 1,511,462 1,585,412 1,673,083
5110 New Acct Charges Gnrl Infltn + Cstmr Dmnd Grwth 1,000 1,057 1,106 1,136 1,169 1,210
5111 Backflow Device Gnrl Infltn + Cstmr Dmnd Grwth 186 197 206 211 217 225
5113 Quick Turnon Fees Gnrl Infltn + Cstmr Dmnd Grwth - - - - - -
5115 SCHEDULED DISCONNET FEE Gnrl Infltn + Cstmr Dmnd Grwth - - - - - -
5124 Service Installation Fees Gnrl Infltn + Cstmr Dmnd Grwth - - - - - -
Other General Inflation - - - - - -
Total Charges for Services 8,485,932$ 8,891,454$ 9,303,475$ 9,742,500$ 10,219,131$ 10,784,205$
Fines and Forfeitures
5221 Reconnect Fees General Inflation - -$ -$ -$ -$ -$
5222 Return Check Fee General Inflation 100 105 109 112 115 118
5225 Late Charges General Inflation 4,181 4,390 4,566 4,680 4,797 4,917
5226 Door Hanger Fee General Inflation 29 30 32 32 33 34
5342 Cell Site Leases General Inflation 74,000 77,700 80,808 82,828 84,899 87,021
Other Fines and Forfeitures General Inflation - - - - - -
Total Fines and Forfeitures 78,310$ 82,226$ 85,515$ 87,652$ 89,844$ 92,090$
Income from Property & Investments
5300 Interest Income - Pooled Cash [Calculated]- 108,360$ 96,700$ 106,459$ 107,212$ 76,832$
5305 Interest-Unrealzd Gains/Losses General Inflation - - - - - -
5310 Interest Income Frm Othr Inv General Inflation - - - - - -
5313 Interest Income-Leases One Time Expense - - - - - -
5325 GASB 87 Lease Revenue One Time Expense - - - - - -
5360 Sale of Capital Assets General Inflation - - - - - -
5361 Donated Assets One Time Expense - - - - - -
Other Income from Property & Investments General Inflation - - - - - -
Total Income from Property & Investments -$ 108,360$ 96,700$ 106,459$ 107,212$ 76,832$
Interdepartmental
5430 Eng Labor General Inflation 10,000 10,500$ 10,920$ 11,193$ 11,473$ 11,760$
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CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Recycled Water O&M
FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028
5442 Reimbursed Work for Other Dept.General Inflation - - - - - -
Other Interdepartmental General Inflation - - - - - -
Total Interdepartmental 10,000$ 10,500$ 10,920$ 11,193$ 11,473$ 11,760$
Other Revenues
5550 Prior Year Fee Refunds General Inflation - -$ -$ -$ -$ -$
5639 Misc Reimbursement Exp.General Inflation - - - - - -
5674 Misc Revenues General Inflation - - - - - -
5664 Misc AR Write Offs General Inflation - - - - - -
Other Other Revenues General Inflation - - - - - -
4012 Property Taxes - Current Property Tax Increase - 801,864 825,519 852,101 880,391 906,715
4015 Refunds - Current Taxes Property Tax Increase - - - - -
4016 Supplemental Property Taxes Property Tax Increase 16,620 17,110 17,661 18,248 18,793
4018 Refunds - Supplemental Taxes Property Tax Increase - - - - -
4020 Unitary Tax (combine w/4011)Property Tax Increase 13,687 14,091 14,545 15,027 15,477
4021 Prior Years Property Taxes Property Tax Increase 11,145 11,474 11,843 12,237 12,602
4027 Refunds - Prior Year Taxes Property Tax Increase (4,888) (5,032) (5,194) (5,367) (5,527)
4111 Surplus Property Tax Increment Property Tax Increase - - - - -
0 Sales and Use tax Property Tax Increase - - - - -
0 Other Tax Revenues Property Tax Increase - - - - -
Total Other Revenues -$ 838,428$ 863,162$ 890,956$ 920,536$ 948,060$
Other Financing Sources
5900 Transfers In No Annual Increase - -$ -$ -$ -$ -$
Other Other Financing Sources General Inflation - - - - - -
Total Other Financing Sources -$ -$ -$ -$ -$ -$
TOTAL REVENUES 8,574,242$ 9,930,968$ 10,359,772$ 10,838,760$ 11,348,195$ 11,912,946$
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CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Recycled Water O&M
FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028
EXPENDITURES Projection (Pre-
Rate Increase)
Projection (Pre-
Rate Increase)
Projection (Pre-
Rate Increase)
Projection (Pre-
Rate Increase)
Projection (Pre-
Rate Increase)
Projection (Pre-
Rate Increase)
Personnel
6100 Reg Salaries Labor Inflation 1,222,869$ 1,123,946$ 1,168,904$ 1,203,971$ 1,240,090$ 1,277,293$
6101 Incentive Pay Labor Inflation - - - - - -
6135 Hazard Pay Labor Inflation - 6,919 7,196 7,412 7,634 7,863
6140 Other Personnel Labor Inflation - - - - - -
6150 IOD Worker's Comp Labor Inflation - - - - - -
6200 Overtime Salaries Labor Inflation 33,685 40,000 41,600 42,848 44,133 45,457
6210 Standby Pay Labor Inflation 4,172 4,210 4,378 4,510 4,645 4,784
6300 Parttimes Salaries Labor Inflation 48,480 102,817 106,930 110,138 113,442 116,845
6305 Intern Salaries Labor Inflation 1,823 1,823 1,896 1,953 2,011 2,072
6310 Elected Officials' Salaries Labor Inflation - - - - - -
6405 Retired Annuitant Projects Labor Inflation 42,848 30,000 31,200 32,136 33,100 34,093
6620 Mgt Physicals Labor Inflation - - - - - -
6400 Temproary Help Labor Inflation - - - - - -
6501 Health Insurance Labor - Health Insurance 188,381 175,511 186,709 198,154 209,845 221,806
6510 Life Insurance Labor Inflation 953 845 879 905 932 960
6511 AD&D - City Paid Labor Inflation 484 422 439 452 466 480
6520 Vision Insurance Labor Inflation - - - - - -
6530 Medicare Labor Inflation 19,632 17,321 18,014 18,554 19,111 19,684
6629 Cell Phone Allowance Labor Inflation - - - - - -
6630 Auto Allowance Labor Inflation 488 488 508 523 538 555
6640 Earned Leave Accrual Labor Inflation - - - - - -
6651 Healthy Emp Awards Labor Inflation - - - - - -
6653 Final Vacation Pay Labor Inflation - - - - - -
6654 Final Sick Leave Pay Labor Inflation - - - - - -
6655 Disability Labor Inflation 11,047 6,763 7,034 7,245 7,462 7,686
6656 Unemployment Labor Inflation 6,443 5,901 6,137 6,321 6,511 6,706
6657 Worker's Compensation Labor Inflation 26,030 27,630 28,735 29,597 30,485 31,400
6720 PERS Labor - PERS (Normal Cost)147,620 142,153 154,295 158,924 163,692 168,603
6722 OPEB Expense One Time Expense - - - - - -
6723 PERS Unfunded Liability Exp Labor - PERS (Normal Cost)157,707 122,615 198,129 202,147 206,227 210,370
6730 Social Security Labor Inflation - - - - - -
6740 Deffered Comp Labor Inflation 1,886 1,936 2,013 2,074 2,136 2,200
6741 Def Comp Match Labor Inflation - - - - - -
Other Personnel Labor Inflation - - - - - -
Total Personnel Costs 1,914,548$ 1,811,300$ 1,964,995$ 2,027,862$ 2,092,461$ 2,158,857$
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CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Recycled Water O&M
FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028
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CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Recycled Water O&M
FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028
Maintenance & Equipment
7110 Office Equp Rental General Inflation -$ - -$ -$ -$ -$
7111 Other Mach & Equip General Inflation - - - - - -
7119 Misc Rentals General Inflation 500 500 525 546 560 574
7120 Misc Leases General Inflation - - - - - -
7210 Office Equip Maintenance General Inflation - - - - - -
7211 Communication Equip Maintenance General Inflation - - - - - -
7215 Software Maintenance General Inflation 246 - - - - -
7216 Computer Maintenance General Inflation - -
7220 Vehicle Maint General Inflation - - - - - -
7221 Wash and Wax General Inflation 2,125 1,500 1,575 1,638 1,679 1,721
7222 Other Equip Maintenance General Inflation 500 500 525 546 560 574
7225 Car Wash Repairs General Inflation - -
7226 Pipeline Maintenance General Inflation 63,250 10,000 10,500 10,920 11,193 11,473
7227 FIRE HYDRANT MAINT - CITY General Inflation 5,000 5,000 5,250 5,460 5,597 5,736
7230 Routine Building Mainteance General Inflation 1,000 1,000 1,050 1,092 1,119 1,147
7241 Asphalt Repairs General Inflation 1,000 1,500 1,575 1,638 1,679 1,721
7249 Maintenance, Repair and Rehab General Inflation 3,243 3,243 3,405 3,541 3,630 3,721
7400 Audit General Inflation - - - - - -
7410 Legal General Inflation - - - - - -
7435 Administrative General Inflation - - - - - -
7480 Claims Admin General Inflation - - - - - -
7490 Misc Professional Services General Inflation 285,565 275,882 289,676 301,263 308,795 316,515
7500 Encina Services General Inflation 1,575,000 2,000,000 $1,926,044 1,862,317 1,908,875 1,956,597
Encina Services (Pension Payoff)No Annual Increase (71,778) (73,704) (75,823) (78,002) (80,245) (82,552)
7510 City Generated General Inflation - - - - - -
7511 Citizen Generated General Inflation - - - - - -
7550 Miscellaneous Outside Services General Inflation 173,833 138,025 144,926 150,723 154,491 158,354
7551 Bank Services General Inflation 1,560 1,560 1,638 1,704 1,746 1,790
7552 Book Binding General Inflation - - - - - -
7554 Regulatory/Permitting Fees General Inflation 30,000 16,030 16,832 17,505 17,942 18,391
7556 Misc Services General Inflation - - - - - -
7557 MWD/CWA Fixed Charges General Inflation - - - - - -
7558 Laundry and Uniform Mainteance General Inflation 3,000 3,000 3,150 3,276 3,358 3,442
7559 Electrical/SCADA services General Inflation 40,449 34,400 36,120 37,565 38,504 39,467
7564 Landscaping Services General Inflation 22,000 48,967 51,415 53,472 54,808 56,179
7710 Ads and Publishing General Inflation - - - - - -
7711 Dues and Subscriptions General Inflation 11,403 6,000 6,300 6,552 6,716 6,884
7712 Books and Publications General Inflation 500 500 525 546 560 574
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CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Recycled Water O&M
FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028
7713 Audio-Visual Materials General Inflation - - - - - -
7715 Printing General Inflation 4,000 4,000 4,200 4,368 4,477 4,589
7720 Postage General Inflation 1,000 1,000 1,050 1,092 1,119 1,147
7725 Office Supplies General Inflation 1,000 1,000 1,050 1,092 1,119 1,147
7726 Office Furniture & Equipment General Inflation 2,500 2,500 2,625 2,730 2,798 2,868
7730 Computer Software General Inflation 5,000 5,000 5,250 5,460 5,597 5,736
7731 Misc. Computer Hardware General Inflation 2,000 3,000 3,150 3,276 3,358 3,442
7735 Promo Materials General Inflation 1,000 1,000 1,050 1,092 1,119 1,147
7741 Preschool General Inflation - - - - - -
7750 Heat and Light Utilities Inflation 329,400 362,340 387,704 407,089 427,443 448,816
7751 Telephone & Communications Utilities Inflation 900 900 963 1,011 1,062 1,115
7752 Waste Dispoal Services Utilities Inflation - - - - - -
7753 Water Utilities Inflation 4,500 4,500 4,815 5,056 5,309 5,574
7801 Building Maintenance General Inflation - - - - - -
7810 Electrical Supplies General Inflation 500 500 525 546 560 574
7811 Janitorial Supplies General Inflation - - - - - -
7820 Parts-Vehicles General Inflation - -
7821 Parts-Equip General Inflation 67,500 61,436 64,508 67,088 68,765 70,484
7830 Rock and Mineral Products General Inflation 1,000 1,000 1,050 1,092 1,119 1,147
7831 Asphalt General Inflation 1,000 1,000 1,050 1,092 1,119 1,147
7850 Small Tools General Inflation 600 600 630 655 672 688
7851 Safety Equipment General Inflation 17,050 17,050 17,903 18,619 19,084 19,561
7852 Uniforms and Accessories General Inflation 3,000 3,000 3,150 3,276 3,358 3,442
7853 Meters/Fittings - New General Inflation 19,300 20,000 21,000 21,840 22,386 22,946
7863 Meters/Fittings - Replacement General Inflation 20,000 20,000 21,000 21,840
7855 Fire Hose and Appliances General Inflation - - - - - -
7856 Rescue Equipment General Inflation - - - - - -
7857 Personal Protective Equipment General Inflation - - - - - -
7858 Breathing Apparatus Equipment General Inflation - - - - - -
7860 Shooting Range Supplies General Inflation - - - - - -
7880 Gasoline and Oil Utilities Inflation - - - - - -
7883 Chemicals General Inflation - - - - - -
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CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Recycled Water O&M
FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028
7890 CMWD Purc Water-Outside Agency [ Calculated ]2,761,924 2,850,000 2,935,500 3,925,800 4,122,900 4,329,045
7891 CMWD Purch Water-From City Utilities Inflation 18,000 18,000 18,900 19,845 20,837 21,879
7899 Misc Supplies General Inflation 7,000 7,000 7,280 7,462 7,649 7,840
8110 Employee Training General Inflation 750 750 780 800 819 840
8120 Tuition Reimbursement General Inflation - - - - - -
8130 Training/Training Related Travel General Inflation 6,670 6,030 6,271 6,428 6,589 6,753
8500 Depreciation Depreciation Funding 1,500,000 1,500,000 1,517,400 1,534,850 1,552,501 1,570,355
Depreciation - Phase III Expansion Construction Inflation - - - - - -
8510 Prop Taxes PD General Inflation - - - - - -
8520 Conference/Meeting Travel General Inflation 2,500 1,335 1,388 1,423 1,459 1,495
8522 Misc. Meals/Miles General Inflation 4,500 2,296 2,387 2,447 2,508 2,571
8530 Bad Debt Exp - Other Inv/Bills General Inflation 7,000 7,000 7,280 7,462 7,649 7,840
8534 Reg Over/Short General Inflation - - - - - -
8610 Settlements General Inflation - - - - - -
8612 Prior Period Adjustment One Time Expense - - - - - -
8614 Repayments General Inflation - - - - - -
8615 Interest on Deposit General Inflation - - - - - -
8699 Misc Expenditures General Inflation - - - - - -
8700 Contingencies General Inflation - - - - - -
8809 Vehicle Direct Charges General Inflation - -
8810 Vehicle Mainteance General Inflation 24,484 47,598 49,502 50,739 52,008 53,308
8811 Vehicle Replacement General Inflation 26,098 29,404 30,580 31,345 32,128 32,932
8820 Street Lighting General Inflation - - - - - -
8822 Median Maintenace General Inflation - - - - - -
8830 General Liab General Inflation 100,720 221,500 230,360 236,119 242,022 248,073
8855 Records Management Interdept General Inflation - - - - - -
8860 Information Technologies General Inflation 178,750 235,389 244,805 250,925 257,198 263,628
8890 Misc Interdepartmental Charges General Inflation 606,853 634,112 659,476 675,963 692,862 710,184
8891 Mis Chg Back General Inflation - - - - - -
8892 Utility Billing Chargeback General Inflation - - - - - -
8910 Fiscal Agent Fees General Inflation - - - - - -
8911 Arbitrage Costs General Inflation - - - - - -
8920 Principal [ Calculated ]1,698,146 2,029,530 2,159,900 1,696,689 1,728,931 532,223
8921 Interest Expense [ Calculated ]178,336 239,345 225,219 227,727 195,486 162,571
8922 Int Exp-Capitalized Interest One Time Expense - - - - - -
Other General Inflation - - - - - -
Meter Replacements General Inflation - - - 6,000 6,150 6,304
Additional Maintenance & Equipment [ Calculated Below ]- (406,240) (199,160) (222,441) (230,204) (238,753)
Total Maintenance & Equipment Costs 9,751,377$ 10,406,777$ 10,865,749$ 11,410,199$ 11,711,522$ 10,816,962$
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CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Recycled Water O&M
FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028
Capital Outlay
9006 Non-Budgeted Cap Equip <$10K General Inflation -$ - -$ -$ -$ -$
9005 Capital Outlay <$10K New General Inflation 4,000 1,150 1,196 1,226 1,257 1,288
9010 Cap Outlay - Vehicles General Inflation 7,400 8,217 8,546 8,759 8,978 9,203
9020 Computer Equip > $10K - Repl General Inflation - - - - - -
9021 Office Equipment General Inflation - - - - - -
9022 Other Equipment General Inflation - - - - - -
9050 Capitalized Assets One Time Expense - - - - - -
9060 Capital Projects One Time Expense - - - - - -
Other Capital Outlay General Inflation - - - - - -
Total Capital Outlay Costs 11,400$ 9,367$ 9,742$ 9,985$ 10,235$ 10,491$
Other Financing Uses
9999 Transfers Out One Time Expense 1,000,000$ - -$ -$ -$ -$
Other Other Financing Uses General Inflation - - - - - -
Total Other Financing Uses Costs 1,000,000$ -$ -$ -$ -$ -$
TOTAL EXPENDITURES 12,677,325$ 12,227,444$ 12,840,486$ 13,448,046$ 13,814,218$ 12,986,309$
RATE REVENUES without INCREASES FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028
Commodity Usage Customer Growth 6,337,458$ 6,384,904$ 7,858,815$ 7,875,301$ 7,904,886$ 7,982,788$
Water Delivery Charges Customer Growth 1,208,817 1,217,868 1,443,348$ 1,446,376 1,451,809 1,466,117
Total Rate Revenues Without Increases 7,546,275$ 7,602,772$ 9,302,163$ 9,321,677$ 9,356,695$ 9,448,905$
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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
CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Potable Water Revenue Requirement
FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
CASH FLOW TESTS
REVENUES
Commodity Charges 29,170,239$ 6,735,943$ 7,486,632$ 8,266,233$ 9,182,466$ 9,972,265$
Delivery Charges 13,373,002 7,492,817 8,327,857 9,195,056 10,214,240 11,092,784
SDCWA Variable Pass-Throughs 23,594,936 26,868,459 29,491,788 30,947,570 32,395,140
SDCWA Fixed Pass-Throughs 8,000,718 9,517,206 10,431,873 10,874,330 11,278,085
Non-Rate Charges for Services 360,603 410,168 455,640 469,168 485,531 502,625
Developer Fees - - - - - -
Tax Revenues 3,574,352 3,679,796 3,798,285 3,924,388 4,041,728 4,165,809
Licenses and Permits - - - - - -
Intergovernmental 24,150 25,116 25,744 26,387 27,047 27,723
Fines & Forfeitures 169,838 176,631 181,047 185,573 190,212 194,968
Income from Prop & Investments 2,825,754 2,456,976 1,901,873 1,703,851 1,571,976 1,435,925
Interdepartmental 46,200 48,048 49,249 50,480 51,742 53,036
Other Revenues 94,500 98,280 100,737 103,255 105,837 108,483
Other Financing Sources - - - - - -
TOTAL REVENUES 49,638,638$ 52,719,429$ 58,712,728$ 63,848,053$ 67,692,679$ 71,226,842$
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CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Potable Water Revenue Requirement
FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
EXPENDITURES
Ongoing Operating Expenses
Personnel 4,782,779$ 5,185,660$ 5,356,027$ 5,531,016$ 5,710,819$ 5,896,955$
Maintenance & Equipment (w/o depreciation)43,641,754 48,152,994 54,231,372 58,207,497 60,560,394 62,887,697
Capital Outlay 49,302 51,274 52,556 53,870 55,217 56,597
Other Financing Uses - - - - - -
Other Operating Expenses
Debt Service - - - - - -
Rate-Funded Capital - - - - - 4,143,533
Total Operating Expenditures 48,473,835$ 53,389,928$ 59,639,956$ 63,792,383$ 66,326,429$ 72,984,783$
Policy Expenditures
Replacement Funding 5,000,000$ -$ -$ -$ -$ -$
Transfer to Capital Fund 5,000,000 - - - - -
Additions to Meet Minimum Fund Balances - - - - - -
Total Policy Expenditures 10,000,000$ -$ -$ -$ -$ -$
TOTAL EXPENDITURES for Cash Flow Test 58,473,835$ 53,389,928$ 59,639,956$ 63,792,383$ 66,326,429$ 72,984,783$
CASH FLOW SURPLUS (DEFICIT)(8,835,197)$ (670,500)$ (927,227)$ 55,671$ 1,366,250$ (1,757,941)$
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CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Potable Water Revenue Requirement
FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
DEBT COVERAGE TEST
1.2 x Bond Coverage
Calculation of Net Revenues
Operating Revenues
User Charges 51,433,440$ 55,126,577$ 61,941,306$ 67,602,694$ 72,001,376$ 76,121,690$
Tax Revenues 4,376,217 4,505,315 4,650,386 4,804,779 4,948,442 5,100,359
Other/Misc Revenues - Excludes Interest Earnings 1,100,868 1,179,598 1,244,579 1,278,155 1,314,953 1,353,033
Yes Connection Fees 1,580,594 1,296,472 448,913 825,736 2,228,691 2,397,852
Yes Grants 2,672,307 2,750,000 1,800,000 - - -
Modeled Interest Earnings
Yes Operating Funds 717,733 540,672 323,563 297,214 302,747 327,680
Yes Capital Funds 1,941,347 1,727,038 1,391,653 1,213,406 1,038,106 841,477
Total Revenues Included in Test 63,822,506$ 67,125,672$ 71,800,401$ 76,021,984$ 81,834,316$ 86,142,092$
Less: Operating Expenses
Potable (48,424,533)$ (53,338,654)$ (59,587,399)$ (63,738,513)$ (66,271,213)$ (68,784,652)$
Recycled (8,449,202)$ (8,928,225)$ (9,978,794)$ (10,327,065)$ (10,710,670)$ (11,110,034)$
Net Operating Revenues Avaiable for Debt Service 6,948,771$ 4,858,793$ 2,234,208$ 1,956,406$ 4,852,434$ 6,247,406$
Debt Service - Potable Water - - - - - -
Debt Service - Recycled Water 2,268,875 2,385,119 1,924,417 1,924,417 694,794 694,794
Coverage 453,775 477,024 384,883 384,883 138,959 138,959
Subtotal: Debt Service and Coverage 2,722,650$ 2,862,143$ 2,309,300$ 2,309,300$ 833,753$ 833,753$
BOND COVERAGE SURPLUS (DEFICIT)4,226,121$ 1,996,650$ (75,092)$ (352,894)$ 4,018,681$ 5,413,654$
Coverage Deficit Attributable to Potable Water $0 $0 $0 $0 $0 $0
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{__Carlsbad
Municipal Water District
B
B
CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Potable Water Revenue Requirement
FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
REVENUE REQUIREMENT
Revenue Shortfalls (8,835,197)$ (670,500)$ (927,227)$ -$ -$ (1,757,941)$
Cash Flow Driven Cash Flow Driven Cash Flow Driven Coverage Driven Coverage Driven Cash Flow Driven
Month of implementation January January January January January January
Calculated Revenue Increase (%)41.54%9.42%11.73%0.00%0.00%16.69%
Carlsbad Portion Revenue Increase Override (INPUT in Dashboard)2.00%10.91%10.00%10.00%7.50%7.50%
Implemented Rate Increase 2.00%10.91%10.00%10.00%7.50%7.50%
Cumulative Rate Increase 4.0%15.4%26.9%39.6%50.1%61.4%
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CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Potable Water Revenue Requirement
FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
CASH FLOW
Revenues Before Rate Increase 49,638,638$ 52,719,429$ 58,712,728$ 63,848,053$ 67,692,679$ 71,226,842$
Revenues From Rate Increase 850,865 1,552,624 1,581,449 1,746,129 1,454,753 1,579,879
LESS: Rate Increase Delay (425,432) (776,312) (790,724) (873,064) (727,376) (789,939)
Adjustment for Implementation Delay (2,885,674)
LESS: Expenditures (58,473,835) (53,389,928) (59,639,956) (63,792,383) (66,326,429) (72,984,783)
Cash Flow (8,409,765)$ (2,779,862)$ (136,503)$ 928,735$ 2,093,626$ (968,001)$
Total Available Fund - Potable Water
Beginning Balance 131,516,346$ 85,584,657$ 75,291,105$ 65,049,698$ 61,352,473$ 50,674,790$
Ending Fund Balance 85,584,657 75,291,105 65,049,698 61,352,473 50,674,790 41,248,174
Fund change (45,931,689)$ (10,293,552)$ (10,241,407)$ (3,697,225)$ (10,677,682)$ (9,426,616)$
645 days 515 days 398 days 351 days 279 days 219 days
Operating Fund - Potable Water
Beginning Balance 34,901,468$ 16,252,452$ 13,472,590$ 13,336,088$ 14,264,823$ 16,358,449$
Cash Flow (8,409,765) (2,779,862) (136,503) 928,735 2,093,626 (968,001)
Transfer to Capital Reserve (10,239,251) - - - - -
Ending Fund Balance 16,252,452$ 13,472,590$ 13,336,088$ 14,264,823$ 16,358,449$ 15,390,448$
Days of O&M 122 days 92 days 82 days 82 days 90 days 82 days
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CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Potable Water Revenue Requirement
FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
Combined Coverage Tests - Post Rate Increase
FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
Calculation of Net Revenues
Operating Revenues
User Charges 52,036,677$ 53,017,214$ 62,951,206$ 68,705,658$ 72,971,365$ 77,167,757$
Tax Revenues 4,376,217 4,505,315 4,650,386 4,804,779 4,948,442 5,100,359
Other/Misc Revenues 1,100,868 1,179,598 1,244,579 1,278,155 1,314,953 1,353,033
Yes Connection Fees 1,580,594 1,296,472 448,913 825,736 2,228,691 2,397,852
Yes Grants 2,672,307 2,750,000 1,800,000 - - -
Modeled Interest Earnings
Yes Operating Funds 717,733 540,672 323,563 297,214 302,747 327,680
Yes Capital Funds 1,941,347 1,727,038 1,391,653 1,213,406 1,038,106 841,477
Total Revenues Included in Test 64,425,742$ 65,016,310$ 72,810,302$ 77,124,948$ 82,804,305$ 87,188,158$
Less: Operating Expenses
Potable (48,424,533)$ (53,338,654)$ (59,587,399)$ (63,738,513)$ (66,271,213)$ (68,784,652)$
Recycled (8,449,202)$ (8,928,225)$ (9,978,794)$ (10,327,065)$ (10,710,670)$ (11,110,034)$
Net Operating Revenues Avaiable for Debt Service 7,552,008$ 2,749,430$ 3,244,108$ 3,059,369$ 5,822,423$ 7,293,473$
Existing Debt Test - Includes debt service only for debt that has been issued and has been input into the model.
Net Operating Revenues Avaiable for Debt Service 7,552,008$ 2,749,430$ 3,244,108$ 3,059,369$ 5,822,423$ 7,293,473$
Less: Existing Debt Service (1,876,482)$ (1,876,482)$ (1,415,780)$ (1,415,779)$ (186,157)$ (186,157)$
Revenues Avaiable for Coverage 5,675,526$ 872,948$ 1,828,328$ 1,643,590$ 5,636,266$ 7,107,316$
Existing Debt Service Coverage Ratio 4.02 x 1.47 x 2.29 x 2.16 x 31.28 x 39.18 x
Total Debt Test - Includes exiting and projected debt.
Net Operating Revenues Avaiable for Debt Service 7,552,008$ 2,749,430$ 3,244,108$ 3,059,369$ 5,822,423$ 7,293,473$
Less: Existing Debt Service (1,876,482)$ (1,876,482)$ (1,415,780)$ (1,415,779)$ (186,157)$ (186,157)$
Less: Projected Debt Service (392,393)$ (508,637)$ (508,637)$ (508,637)$ (508,637)$ (508,637)$
Revenues Avaiable for Coverage 5,283,133$ 364,311$ 1,319,691$ 1,134,953$ 5,127,629$ 6,598,679$
Total Debt Service Coverage Ratio 3.33 x 1.15 x 1.69 x 1.59 x 8.38 x 10.50 x
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{__Carlsbad
Municipal Water District
B
B
CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Recycled Water Revenue Requirement
FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
CASH FLOW TEST
REVENUES
Commodity Charges 7,510,773$ 7,858,815$ 8,229,690$ 8,632,333$ 9,109,687$ 9,617,137$
Delivery Charges 1,379,426 1,443,348 1,511,462 1,585,412 1,673,083 1,766,281
Non-Rate Charges for Services 1,254 1,312 1,348 1,386 1,435 1,485
Developer Fees - - - - - -
Intergovernmental (CWA)- - - - - -
Fines and Forfeitures 82,226 85,515 87,652 89,844 92,090 94,392
Income from Property & Investments 108,360 96,700 106,459 107,212 76,832 48,885
Interdepartmental 10,500 10,920 11,193 11,473 11,760 12,054
Other Revenues 838,428 863,162 890,956 920,536 948,060 977,165
Other Financing Sources - - - - - -
TOTAL REVENUES 9,930,968$ 10,359,772$ 10,838,760$ 11,348,195$ 11,912,946$ 12,517,398$
EXPENDITURES
Ongoing Operating Expenses
Personnel 1,811,300$ 1,964,995$ 2,027,862$ 2,092,461$ 2,158,857$ 2,227,506$
Maintenance & Equipment (w/o depreciation)6,637,902 6,963,230 7,950,932 8,234,605 8,551,813 8,882,528
Capital Outlay 9,367 9,742 9,985 10,235 10,491 10,753
Other Financing Uses - - - - - -
Other Operating Expenses
Debt Service - Recycled Water 2,268,875 2,385,119 1,924,417 1,924,417 694,794 694,794
Rate-Funded Capital - Recycled Water - - - - 1,085,030 928,037
Total Operating Expenditures 10,727,444$ 11,323,086$ 11,913,196$ 12,261,717$ 12,500,984$ 12,743,617$
Policy Expenditures
Replacement Funding -$ -$ -$ -$ -$ -$
Transfer to Capital Fund - - - - - -
Additions to Meet Minimum Fund Balances - - - - - -
Total Policy Expenditures -$ -$ -$ -$ -$ -$
TOTAL EXPENDITURES for Cash Flow Test 10,727,444$ 11,323,086$ 11,913,196$ 12,261,717$ 12,500,984$ 12,743,617$
CASH FLOW SURPLUS (DEFICIT)(796,476)$ (963,314)$ (1,074,436)$ (913,522)$ (588,039)$ (226,219)$
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(._carlsbad
Municipal Water District
CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Recycled Water Revenue Requirement
FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
DEBT COVERAGE TEST - Combined
1.25 x Bond Coverage
Calculation of Net Revenues
Operating Revenues
User Charges 51,433,440$ 55,126,577$ 61,941,306$ 67,602,694$ 72,001,376$ 76,121,690$
Tax Revenues 4,376,217 4,505,315 4,650,386 4,804,779 4,948,442 5,100,359
Other/Misc Revenues 1,100,868 1,179,598 1,244,579 1,278,155 1,314,953 1,353,033
Change selection on Water REV Requirement
Yes Connection Fees 1,580,594 1,296,472 448,913 825,736 2,228,691 2,397,852
Yes Grants 2,672,307 2,750,000 1,800,000 - - -
Modeled Interest Earnings
Yes Operating Funds 717,733 540,672 323,563 297,214 302,747 327,680
Yes Capital Funds 1,941,347 1,727,038 1,391,653 1,213,406 1,038,106 841,477
Total Revenues Included in Test 63,822,506$ 67,125,672$ 71,800,401$ 76,021,984$ 81,834,316$ 86,142,092$
Less: Operating Expenses
Potable (48,424,533)$ (53,338,654)$ (59,587,399)$ (63,738,513)$ (66,271,213)$ (68,784,652)$
Recycled (8,449,202)$ (8,928,225)$ (9,978,794)$ (10,327,065)$ (10,710,670)$ (11,110,034)$
Net Operating Revenues Avaiable for Debt Service 6,948,771$ 4,858,793$ 2,234,208$ 1,956,406$ 4,852,434$ 6,247,406$
Debt Service - Recycled Water 2,268,875 2,385,119 1,924,417 1,924,417 694,794 694,794
Debt Service - Potable Water - - - - - -
Coverage 567,219 596,280 481,104 481,104 173,698 173,698
Subtotal: Debt Service and Coverage 2,836,094$ 2,981,399$ 2,405,521$ 2,405,521$ 868,492$ 868,492$
Combined - BOND COVERAGE SURPLUS (DEFICIT)4,112,678$ 1,877,394$ (171,313)$ (449,115)$ 3,983,941$ 5,378,914$
Coverage Deficit Attributable to Recycled Water $0 $0 ($171,313) ($449,115)$0 $0
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(._carlsbad
Municipal Water District
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B
CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Recycled Water Revenue Requirement
FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
REVENUE REQUIREMENT
Revenue Shortfalls (796,476)$ (963,314)$ (1,074,436)$ (913,522)$ (588,039)$ (226,219)$
Cash Flow Driven Cash Flow Driven Cash Flow Driven Cash Flow Driven Cash Flow Driven Cash Flow Driven
Month of implementation January January January January January January
Calculated Revenue Increase (%)17.92%20.71%22.06%17.88%10.91%3.97%
Carlsbad Portion Revenue Increase Override (INPUT in Dashboard)4.00%4.50%4.50%4.50%4.50%4.50%
Implemented Rate Increase 4.00%4.50%4.50%4.50%4.50%4.50%
Cumulative Rate Increase 12.5%17.5%22.8%28.4%34.1%40.2%
SFR Rate $25.36 $27.37 $28.61 $29.89 $31.24 $32.64
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(._carlsbad
Municipal Water District
CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Recycled Water Revenue Requirement
FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
CASH FLOW
Revenues Before Rate Increase 9,930,968$ 10,359,772$ 10,838,760$ 11,348,195$ 11,912,946$ 12,517,398$
Revenues From Rate Increase 355,608 418,597 438,352 459,799 485,225 512,254
LESS: Rate Increase Delay (177,804) (209,299) (219,176) (229,899) (242,612) (256,127)
Adjustment for Implementation Delay (209,299)
LESS: Expenditures (10,727,444) (11,323,086) (11,913,196) (12,261,717) (12,500,984) (12,743,617)
Cash Flow (618,672)$ (963,314)$ (855,260)$ (683,623)$ (345,427)$ 29,908$
Total Available Fund - Recycled Water
Beginning Balance 5,140,538$ 4,529,480$ 6,116,412$ 4,604,767$ 3,078,421$ 1,810,052$
Ending Fund Balance (includes Capital Fund)4,529,480 6,116,412 4,604,767 3,078,421 1,810,052 1,839,960
Fund Change (611,058)$ 1,586,933$ (1,511,645)$ (1,526,347)$ (1,268,368)$ 29,908$
195 Days 250 Days 168 Days 109 Days 62 Days 60 Days
Operating Fund
Beginning Balance 1,765,963$ 1,147,291$ 1,483,976$ 1,428,716$ 1,245,093$ 899,667$
Cash Flow (618,672) (963,314) (855,260) (683,623) (345,427) 29,908
Transfers to Capital Fund - 1,300,000 800,000 500,000 - -
Ending Fund Balance 1,147,291$ 1,483,976$ 1,428,716$ 1,245,093$ 899,667$ 929,574$
Operating Balance in Days of Expenditures 50 days 61 days 52 days 44 days 31 days 31 days
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(._carlsbad
Municipal Water District
CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Recycled Water Revenue Requirement
FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
Combined Coverage Tests - Post Rate Increase
FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029
Calculation of Net Revenues
Operating Revenues
User Charges 52,036,677$ 53,017,214$ 62,951,206$ 68,705,658$ 72,971,365$ 77,167,757$
Tax Revenues 4,376,217 4,505,315 4,650,386 4,804,779 4,948,442 5,100,359
Other/Misc Revenues 1,100,868 1,179,598 1,244,579 1,278,155 1,314,953 1,353,033 Change selection on Water REV RequirementYesConnection Fees 1,580,594 1,296,472 448,913 825,736 2,228,691 2,397,852
Yes Grants 2,672,307 2,750,000 1,800,000 - - -
Modeled Interest Earnings
Yes Operating Funds 717,733 540,672 323,563 297,214 302,747 327,680
Yes Capital Funds 1,941,347 1,727,038 1,391,653 1,213,406 1,038,106 841,477
Total Revenues Included in Test 64,425,742$ 65,016,310$ 72,810,302$ 77,124,948$ 82,804,305$ 87,188,158$
Less: Operating Expenses
Potable (48,424,533)$ (53,338,654)$ (59,587,399)$ (63,738,513)$ (66,271,213)$ (68,784,652)$
Recycled (8,449,202)$ (8,928,225)$ (9,978,794)$ (10,327,065)$ (10,710,670)$ (11,110,034)$
Net Operating Revenues Available for Debt Service 7,552,008$ 2,749,430$ 3,244,108$ 3,059,369$ 5,822,423$ 7,293,473$
Existing Debt Test - Includes debt service only for debt that has been issued and has been input into the model.
Net Operating Revenues Available for Debt Service 7,552,008$ 2,749,430$ 3,244,108$ 3,059,369$ 5,822,423$ 7,293,473$
Less: Existing Debt Service (1,876,482)$ (1,876,482)$ (1,415,780)$ (1,415,779)$ (186,157)$ (186,157)$
Revenues Available for Coverage 5,675,526$ 872,948$ 1,828,328$ 1,643,590$ 5,636,266$ 7,107,316$
Existing Debt Service Coverage Ratio 4.02 x 1.47 x 2.29 x 2.16 x 31.28 x 39.18 x
Total Debt Test - Includes exiting and projected debt.
Net Operating Revenues Available for Debt Service 7,552,008$ 2,749,430$ 3,244,108$ 3,059,369$ 5,822,423$ 7,293,473$
Less: Existing Debt Service (1,876,482)$ (1,876,482)$ (1,415,780)$ (1,415,779)$ (186,157)$ (186,157)$
Less: Projected Debt Service (392,393)$ (508,637)$ (508,637)$ (508,637)$ (508,637)$ (508,637)$
Revenues Available for Coverage 5,283,133$ 364,311$ 1,319,691$ 1,134,953$ 5,127,629$ 6,598,679$
Total Debt Service Coverage Ratio 3.33 x 1.15 x 1.69 x 1.59 x 8.38 x 10.50 x
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(._carlsbad
Municipal Water District
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B
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
CITY OF CARLSBAD
Water Financial Model
Potable Water Functional Allocation
COST ALLOCATION BASIS FYE 2025
CUSTOMER ACCOUNT SERVICE
METERS and SERVICES ADMIN and MGMT DISTRIBUTION TREATMENT
SDCWA Variable SDCWA Fixed SDCWA IAC DESAL
CONSERVATION FIRE PROTECTION
CROSS CONNECTION CONTROL
ENGINEERING GENERAL AS ALL OTHERS
ALLOCATION BASIS
CUSTOMER ACCOUNT SERVICE 100.0%0%METERS and SERVICES 100.0%0%
ADMIN and MGMT 100.0%0%
DISTRIBUTION 100.0%0%TREATMENT 100.0%0%
SDCWA Variable 100.0%
SDCWA Fixed 100.0%0%SDCWA IAC 100.0%0%
DESAL 100.0%0%
CONSERVATION 100.0%0%
FIRE PROTECTION 100.0%0%
CROSS CONNECTION CONTROL 100.0%0%ENGINEERING 100.0%0%
GENERAL 100.0%0%
Staff Allocation Determined based on detailed staff cost allocation.0.0%7.8% 23.5% 35.0% 0.0%0.0%0.0%0.0%0.0%2.1%0.0%6.9% 12.1% 12.7%0%Vehicle Costs Allocation Determined based on typical CMWD vehicle use 0.0% 22.3% 0.0% 65.0% 0.0%0.0%0.0%0.0%0.0%0.0%0.0% 12.7% 0.0%0.0%0%
Uniforms Cost Allocation Determined based on uniformed staff positions 0.0% 22.3% 0.0% 65.0% 0.0%0.0%0.0%0.0%0.0%0.0%0.0% 12.7% 0.0%0.0%0%
MISCELLANEOUS PROFESSIONAL SERVICES (7490)Determined based on line item allocation 4.6%7.6% 23.6% 26.0% 0.0%0.0%0.0%0.0%0.0%0.1%0.0%0.2% 28.3% 9.6%0%MISCELLANEOUS OUTSIDE SERVICES (7550)Determined based on line item allocation 0.4%3.0%0.1% 88.5% 6.9%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%1.2%
As Weighed Average 100%
O&M EXPENDITURES CUSTOMER
ACCOUNT
SERVICE
METERS and
SERVICES
ADMIN and
MGMT DISTRIBUTION TREATMENT
SDCWA
Variable SDCWA Fixed SDCWA IAC DESAL
CONSERVATIO
N
FIRE
PROTECTION
CROSS
CONNECTION
CONTROL
ENGINEERING GENERAL AS ALL OTHERS
WATER OPERATING EXPENDITURES
Personnel
Reg Salaries 3,145,241$ Staff Allocation -$ 244,635$ 740,441$ 1,100,154$ -$ -$ -$ -$ -$ 64,490$ -$ 216,385$ 379,741$ 399,395$ -$
Hazard Pay 44,370 Staff Allocation - 3,451 10,445 15,520 - - - - - 910 - 3,053 5,357 5,634 -
Incentive Pay - Staff Allocation - - - - - - - - - - - - - - -
Other Personnel - Staff Allocation - - - - - - - - - - - - - - - IOD Worker's Comp - Staff Allocation - - - - - - - - - - - - - - - Overtime Salaries 130,000 Staff Allocation - 10,111 30,604 45,472 - - - - - 2,666 - 8,944 15,696 16,508 - Standby Pay 24,492 Staff Allocation - 1,905 5,766 8,567 - - - - - 502 - 1,685 2,957 3,110 - Parttime Salaries - Staff Allocation - - - - - - - - - - - - - - -
Intern Salaries 13,270 Staff Allocation - 1,032 3,124 4,642 - - - - - 272 - 913 1,602 1,685 -
Elected Officials' Salaries 8,320 Staff Allocation - 647 1,959 2,910 - - - - - 171 - 572 1,005 1,057 -
Temporary Help 62,400 Staff Allocation - 4,853 14,690 21,827 - - - - - 1,279 - 4,293 7,534 7,924 -
Health Insurance 638,354 Staff Allocation - 49,651 150,279 223,286 - - - - - 13,089 - 43,917 77,072 81,061 -
Life Insurance 2,172 Staff Allocation - 169 511 760 - - - - - 45 - 149 262 276 - AD&D City Paid 1,086 Staff Allocation - 84 256 380 - - - - - 22 - 75 131 138 - Vision Insurance - Staff Allocation - - - - - - - - - - - - - - - Medicare 47,842 Staff Allocation - 3,721 11,263 16,734 - - - - - 981 - 3,291 5,776 6,075 - MTG Physicals - Staff Allocation - - - - - - - - - - - - - - -
Cell Phone Allowance - Staff Allocation - - - - - - - - - - - - - - -
Auto Allowance 1,690 Staff Allocation - 131 398 591 - - - - - 35 - 116 204 215 -
Earned Leave Accrual - Staff Allocation - - - - - - - - - - - - - - -
Healthy Emp Awards - Staff Allocation - - - - - - - - - - - - - - - Final Vacation Pay - Staff Allocation - - - - - - - - - - - - - - - Final Sick Leave Pay - Staff Allocation - - - - - - - - - - - - - - - Disability 18,934 Staff Allocation - 1,473 4,457 6,623 - - - - - 388 - 1,303 2,286 2,404 - Unemployment 16,490 Staff Allocation - 1,283 3,882 5,768 - - - - - 338 - 1,134 1,991 2,094 -
FYE 2025
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Lcarlsbad Municipal Water District
CITY OF CARLSBAD
Water Financial Model
Potable Water Functional Allocation
COST ALLOCATION BASIS FYE 2025
CUSTOMER ACCOUNT SERVICE
METERS and SERVICES ADMIN and MGMT DISTRIBUTION TREATMENT
SDCWA Variable SDCWA Fixed SDCWA IAC DESAL
CONSERVATION FIRE PROTECTION
CROSS CONNECTION CONTROL
ENGINEERING GENERAL AS ALL OTHERS
Worker's Compensation 82,212 Staff Allocation - 6,394 19,354 28,756 - - - - - 1,686 - 5,656 9,926 10,440 - PERS 415,172 Staff Allocation - 32,292 97,738 145,220 - - - - - 8,513 - 28,563 50,126 52,720 - PERS (GASB 68 Contra Account)- Staff Allocation - - - - - - - - - - - - - - - PERS - Repayment - Staff Allocation - - - - - - - - - - - - - - -
OPEB Expense - Staff Allocation - - - - - - - - - - - - - - -
PERS Unfunded Liability Expense 533,118 Staff Allocation - 41,466 125,505 186,476 - - - - - 10,931 - 36,677 64,366 67,697 -
Social Security - Staff Allocation - - - - - - - - - - - - - - -
Deferred Comp 497 Staff Allocation - 39 117 174 - - - - - 10 - 34 60 63 - Def Comp Match - Staff Allocation - - - - - - - - - - - - - - - Other Personnel - Staff Allocation - - - - - - - - - - - - - - -
Maintenance & Equipment
Office Equip Rental -$ Staff Allocation -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Other Mach & Equip 11,019 DISTRIBUTION - - - 11,019 - - - - - - - - - - - Vehicle Rentals 17,836 Vehicle Costs Allocation - 3,976 - 11,588 - - - - - - - 2,272 - - - Misc Rentals 53,040 General - - - - - - - - - - - - - 53,040 - Misc Leases - General - - - - - - - - - - - - - - -
Office Equip Maintenance - ADMIN and MGMT - - - - - - - - - - - - - - -
Communication Equip Maintenance 3,120 ADMIN and MGMT - - 3,120 - - - - - - - - - - - -
Software Maintenance 24,728 ADMIN and MGMT - - 24,728 - - - - - - - - - - - -
Computer Maintenance - General - - - - - - - - - - - - - - - Vehicle Maint 31,200 Vehicle Costs Allocation - 6,955 - 20,270 - - - - - - - 3,975 - - - Wash and Wax 24,388 Vehicle Costs Allocation - 5,437 - 15,844 - - - - - - - 3,107 - - - Other Equip Maintenance 104 General - - - - - - - - - - - - - 104 - Car Wash Repairs - Staff Allocation - - - - - - - - - - - - - - -
Pipeline Maintenance 56,680 Distribution - - - 56,680 - - - - - - - - - - -
Fire Hydrant Maintenance - City 40,521 Fire Protection - - - - - - - - - - 40,521 - - - -
FIRE HYDRANT MAINTENANCE - OTHER 15,600 Fire Protection - - - - - - - - - - 15,600 - - - -
Routine Building Maintenance 5,200 General - - - - - - - - - - - - - 5,200 -
Asphalt Repairs 104,000 Distribution - - - 104,000 - - - - - - - - - - - Street Sweeping - General - - - - - - - - - - - - - - - Maintenance, Repair and Rehab 13,270 General - - - - - - - - - - - - - 13,270 - Audit - General - - - - - - - - - - - - - - - Legal 60,223 ADMIN and MGMT - - 60,223 - - - - - - - - - - - -
Administrative 46,800 ADMIN and MGMT - - 46,800 - - - - - - - - - - - -
Claims Admin - General - - - - - - - - - - - - - - -
Misc Professional Services 777,255 MISCELLANEOUS PROFESSIONAL SERVICES (7490)35,621 59,132 183,152 201,970 - - - - - 564 - 1,892 220,190 74,733 -
Encina Services - General - - - - - - - - - - - - - - - City Generated - General - - - - - - - - - - - - - - - Citizen Generated - General - - - - - - - - - - - - - - - Miscellaneous Outside Services 553,199 MISCELLANEOUS OUTSIDE SERVICES (7550)2,171 16,373 281 489,364 37,987 - - - - 24 - 82 144 6,772 - Bank Services 54,552 ADMIN and MGMT - - 54,552 - - - - - - - - - - - -
Book Binding - ADMIN and MGMT - - - - - - - - - - - - - - -
Comm Arts Support - ADMIN and MGMT - - - - - - - - - - - - - - -
Regulatory/Permitting Fees 164,589 ADMIN and MGMT - - 164,589 - - - - - - - - - - - -
Misc Services - General - - - - - - - - - - - - - - - Customer Service Charge 963,174 SDCWA Fixed - - - - - - 963,174 - - - - - - - - Emergency Storage Charge 2,229,492 SDCWA Fixed - - - - - - 2,229,492 - - - - - - - - Infrastructure Access Charge 2,071,374 SDCWA IAC - - - - - - - 2,071,374 - - - - - - - Supply Reliability Charge 1,646,526 SDCWA Fixed - - - - - - 1,646,526 - - - - - - - - Fixed Transportation Charge 520,794 SDCWA Fixed - - - - - - 520,794 - - - - - - - - MWD Capacity Reservation Charge 262,836 SDCWA Fixed - - - - - - 262,836 - - - - - - - - MWD Readiness to Service Charge 395,556 SDCWA Fixed - - - - - - 395,556 - - - - - - - - Laundry and Uniform Maintenance 8,320 Uniforms Cost Allocation - 1,855 - 5,405 - - - - - - - 1,060 - - -
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Lcarlsbad Municipal Water District
CITY OF CARLSBAD
Water Financial Model
Potable Water Functional Allocation
COST ALLOCATION BASIS FYE 2025
CUSTOMER ACCOUNT SERVICE
METERS and SERVICES ADMIN and MGMT DISTRIBUTION TREATMENT
SDCWA Variable SDCWA Fixed SDCWA IAC DESAL
CONSERVATION FIRE PROTECTION
CROSS CONNECTION CONTROL
ENGINEERING GENERAL AS ALL OTHERS
Electrical/Scada Services 112,132 Distribution - - - 112,132 - - - - - - - - - - - Water Sampling Services 182,753 TREATMENT - - - - 182,753 - - - - - - - - - - Water Conservation Services 11,700 Conservation - - - - - - - - - 11,700 - - - - - Landscaping Services 176,871 GENERAL - - - - - - - - - - - - - 176,871 -
Ads and Publishing 520 ADMIN and MGMT - - 520 - - - - - - - - - - - -
Dues and Subscriptions 44,840 ADMIN and MGMT - - 44,840 - - - - - - - - - - - -
Books and Publications 624 ADMIN and MGMT - - 624 - - - - - - - - - - - -
Audio-Visual Materials - General - - - - - - - - - - - - - - - Printing 12,480 Customer Account Service 12,480 - - - - - - - - - - - - - - Postage 9,360 Customer Account Service 9,360 - - - - - - - - - - - - - - Office Supplies 11,440 ADMIN and MGMT - - 11,440 - - - - - - - - - - - - Office Furniture & Equipment 15,600 ADMIN and MGMT - - 15,600 - - - - - - - - - - - -
Computer Software 10,400 ADMIN and MGMT - - 10,400 - - - - - - - - - - - -
Misc. Computer Hardware 8,320 ADMIN and MGMT - - 8,320 - - - - - - - - - - - -
Promo Materials 6,240 ADMIN and MGMT - - 6,240 - - - - - - - - - - - -
Preschool - General - - - - - - - - - - - - - - - Food Expense - General - - - - - - - - - - - - - - - Heat and Light 142,692 DISTRIBUTION - - - 142,692 - - - - - - - - - - - Telephone & Communications 14,280 Staff Allocation - 1,111 3,362 4,995 - - - - - 293 - 982 1,724 1,813 - Waste Disposal Services 19,106 Staff Allocation - 1,486 4,498 6,683 - - - - - 392 - 1,314 2,307 2,426 -
Water 20,288 Staff Allocation - 1,578 4,776 7,096 - - - - - 416 - 1,396 2,449 2,576 -
Building Maintenance - General - - - - - - - - - - - - - - -
Electrical Supplies - General - - - - - - - - - - - - - - -
Janitorial Supplies - General - - - - - - - - - - - - - - -
Sign Materials - General - - - - - - - - - - - - - - - Parts-Vehicles - General - - - - - - - - - - - - - - - Parts-Equip 214,997 Distribution - - - 214,997 - - - - - - - - - - - Rock and Mineral Products 15,600 Distribution - - - 15,600 - - - - - - - - - - - Asphalt 5,200 Distribution - - - 5,200 - - - - - - - - - - -
Small Tools 8,320 Distribution - - - 8,320 - - - - - - - - - - -
Safety Equipment 46,696 Staff Allocation - 3,632 10,993 16,333 - - - - - 957 - 3,213 5,638 5,930 -
Uniforms and Accessories 7,575 Uniforms Cost Allocation - 1,689 - 4,922 - - - - - - - 965 - - -
Meters/Fittings - New Development 65,461 Meters and Services - 65,461 - - - - - - - - - - - - - Meters/Fittings - Replacement 169,613 Meters and Services - 169,613 - - - - - - - - - - - - - Fire Hose and Appliances - General - - - - - - - - - - - - - - - Rescue Equipment - General - - - - - - - - - - - - - - - Personal Protective Equipment - General - - - - - - - - - - - - - - -
Breathing Apparatus Equipment - General - - - - - - - - - - - - - - -
Automated Meter Program - General - - - - - - - - - - - - - - -
Gasoline and Oil 2,625 Distribution - - - 2,625 - - - - - - - - - - -
Propane 520 Distribution - - - 520 - - - - - - - - - - - Other Petrol Products - General - - - - - - - - - - - - - - - Chemicals 71,909 TREATMENT - - - - 71,909 - - - - - - - - - - CMWD Purc Water-Outside Agency 23,594,936 SDCWA Variable - - - - - 23,594,936 - - - - - - - - - Desal Costs 9,984,419 Desal - - - - - - - - 9,984,419 - - - - - -
Misc Supplies 46,800 General - - - - - - - - - - - - - 46,800 -
Employee Training 6,240 Staff Allocation - 485 1,469 2,183 - - - - - 128 - 429 753 792 -
Tuition Reimbursement - General - - - - - - - - - - - - - - -
Training/Training Related Travel 16,006 Staff Allocation - 1,245 3,768 5,598 - - - - - 328 - 1,101 1,932 2,032 -
EXCLUDED Depreciation 5,058,000 Prop Taxes PD 2,984$ General -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 2,984$ -$ Conference Travel 3,900 Staff Allocation - 303 918 1,364 - - - - - 80 - 268 471 495 - Misc. Meals/Miles 4,030 Staff Allocation - 313 949 1,410 - - - - - 83 - 277 487 512 - Bad Debt Exp - Other Inv/Bills 23,920 ADMIN and MGMT - - 23,920 - - - - - - - - - - - -
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Lcarlsbad Municipal Water District
CITY OF CARLSBAD
Water Financial Model
Potable Water Functional Allocation
COST ALLOCATION BASIS FYE 2025
CUSTOMER ACCOUNT SERVICE
METERS and SERVICES ADMIN and MGMT DISTRIBUTION TREATMENT
SDCWA Variable SDCWA Fixed SDCWA IAC DESAL
CONSERVATION FIRE PROTECTION
CROSS CONNECTION CONTROL
ENGINEERING GENERAL AS ALL OTHERS
Disposal of Assets - General - - - - - - - - - - - - - - - Reg Over/Short - General - - - - - - - - - - - - - - - Settlements - General - - - - - - - - - - - - - - - Interest on Deposit - General - - - - - - - - - - - - - - -
Interfund Services - General - - - - - - - - - - - - - - -
Misc Expenditures - General - - - - - - - - - - - - - - -
Contingencies - General - - - - - - - - - - - - - - -
Vehicle Direct Charges 3,943 Vehicle Costs Allocation - 879 - 2,561 - - - - - - - 502 - - - Vehicle Maintenance 174,803 Vehicle Costs Allocation - 38,969 - 113,566 - - - - - - - 22,268 - - - Vehicle Replacement 202,028 Vehicle Costs Allocation - 45,038 - 131,254 - - - - - - - 25,736 - - - Street Lighting - General - - - - - - - - - - - - - - - Median Maintenance - General - - - - - - - - - - - - - - -
General Lab 695,386 DISTRIBUTION - - - 695,386 - - - - - - - - - - -
Copy Services - General - - - - - - - - - - - - - - -
Records Management Interdept - General - - - - - - - - - - - - - - -
Information Technologies 777,434 METERS and SERVICES - 777,434 - - - - - - - - - - - - - Misc Interdepartmental Charges 2,062,614 ADMIN and MGMT - - 2,062,614 - - - - - - - - - - - - Mis Chg Back - General - - - - - - - - - - - - - - - Utility Billing Chargeback - General - - - - - - - - - - - - - - - Fiscal Agent Fees - General - - - - - - - - - - - - - - -
Arbitrage Costs - General - - - - - - - - - - - - - - -
Misc Debt Expense - General - - - - - - - - - - - - - - -
Principal Included separately on CoS
Interest Expense Included separately on CoS
Int Exp-Capitalized Interest - General - - - - - - - - - - - - - - - Amortization Expense - General - - - - - - - - - - - - - - - Issuance Costs - General - - - - - - - - - - - - - - - Other - General - - - - - - - - - - - - - - - Additional Maintenance & Equipment (1,010,006) As Weighed Average - - - - - - - - - - - - - - (1,010,006)
Capital Outlay
Non-Budgeted Cap Equip <$10K -$ General -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Capital Outlay <$10K New - General - - - - - - - - - - - - - - - Capital Outlay < $10K - Repl - General - - - - - - - - - - - - - - -
Cap Outlay - Vehicles 51,274 Vehicle Costs Allocation - 11,431 - 33,312 - - - - - - - 6,532 - - -
Computer Equip > $10K - Repl - General - - - - - - - - - - - - - - -
Office Equipment - General - - - - - - - - - - - - - - -
Other Equipment - General - - - - - - - - - - - - - - - Office Furniture - General - - - - - - - - - - - - - - - Reclass Capital Outlay - General - - - - - - - - - - - - - - - Capitalized Assets - General - - - - - - - - - - - - - - - Other Capital Outlay - General - - - - - - - - - - - - - - -
Other Financing Uses
Other Other Financing Uses -$ As Weighed Average -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Operating Expenditures Sub Total 53,389,928$ 59,631$ 1,617,732$ 3,973,484$ 4,258,750$ 292,650$ 23,594,936$ 6,018,378$ 2,071,374$ 9,984,419$ 121,292$ 56,121$ 434,133$ 862,187$ 1,054,847$ (1,010,006)$
Reallocation of "As All Others"(4,731)$ (128,344)$ (315,238)$ (337,870)$ (23,217)$ Direct Pass
Through
Direct Pass
Through
Direct Pass
Through
Direct Pass
Through (9,623)$ (4,452)$ (34,442)$ (68,402)$ (83,687)$ 1,010,006$
Total Allocation 53,389,928$ 54,900$ 1,489,389$ 3,658,246$ 3,920,880$ 269,432$ 23,594,936$ 6,018,378$ 2,071,374$ 9,984,419$ 111,669$ 51,669$ 399,691$ 793,785$ 971,160$ -$
Resulting Allocation 100.00%0.10%2.79%6.85%7.34%0.50%44.19%11.27%3.88%18.70%0.21%0.10%0.75%1.49%1.82%-
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Lcarlsbad Municipal Water District
CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Staff Allocation - Water
TITLE BARGAINING
UNIT ORG. KEY FTE ALLOCATION RANGE MID-POINT FY 2023 MID-PT
SALARY/WAGE COST
**Utility Locator**CCEA 5016310 0.6 66 76,211$ 45,727
Accounting Technician CCEA 5016310 0.8 47 63,128 50,502
Administrative Secretary CCEA 5016310 0.55 43 60,611 33,336
ASSET MANAGEMENT PROGRAM SPECIALIST CCEA 5016310 0.35 84 91,208 31,923
Associate Engineer CCEA 5016310 0.35 98 104,811 36,684
BUYER/CONTRACT ADMINISTRATOR CCEA 5016310 0.2 63 74,006 14,801
CROSS CONNECTION CONTROL TECHNICIAN CCEA 5016310 0.5 80 87,630 43,815
CROSS CONNECTION CONTROL TECHNICIAN CCEA 5016310 0.5 80 87,630 43,815
CROSS CONNECTION CONTROL TECHNICIAN CCEA 5016310 0.5 80 87,630 43,815
CROSS CONNECTION CONTROL TECHNICIAN CCEA 5016310 0.5 80 87,630 43,815
Engineering Technician II CCEA 5016310 0.35 60 71,802 25,131
GIS Associate Analyst CCEA 5016310 0.35 70 79,331 27,766
Management Analyst MGT 5016310 0.7 89,108 62,376
Meter Services Supervisor MGT 5016310 0.8 89,108 71,286
Meter Services Worker II CCEA 5016310 0.9 37 57,117 51,405
Meter Services Worker II CCEA 5016310 0.9 37 57,117 51,405
Meter Services Worker II CCEA 5016310 0.9 37 57,117 51,405
SCADA Supervisor MGT 5016310 0.4 127,254 50,902
Secretary CCEA 5016310 0.7 35 56,014 39,210
Secretary CCEA 5016310 0.7 35 56,014 39,210
SENIOR CROSS CONN. CONTROL TECH CCEA 5016310 0.25 90 96,803 24,201
Senior Engineer MGT 5016310 0.35 127,254 44,539
Senior Management Analyst MGT 5016310 0.5 108,560 54,280
Senior Office Specialist CCEA 5016310 0.5 27 51,709 25,854
ASSOCIATE ENGINEER CCEA 5016310 0.35 98 104,811 36,684
Utilities Director MGT 5016310 0.5 193,465 96,733
Utilities Engineering Manager MGT 5016310 0.35 166,392 58,237
Utilities Maintenance Planner MGT 5016310 0.35 89,108 31,188
Utilities Manager MGT 5016310 0.8 166,392 133,114
Utilities Manager MGT 5016310 0.8 166,392 133,114
Utilities Senior Engineer MGT 5016310 0.35 127,254 44,539
Utilities Senior Engineer MGT 5016310 0.35 127,254 44,539
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Municipal Water Distrkt
CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Staff Allocation - Water
TITLE
**Utility Locator**
Accounting Technician
Administrative Secretary
ASSET MANAGEMENT PROGRAM SPECIALIST
Associate Engineer
BUYER/CONTRACT ADMINISTRATOR
CROSS CONNECTION CONTROL TECHNICIAN
CROSS CONNECTION CONTROL TECHNICIAN
CROSS CONNECTION CONTROL TECHNICIAN
CROSS CONNECTION CONTROL TECHNICIAN
Engineering Technician II
GIS Associate Analyst
Management Analyst
Meter Services Supervisor
Meter Services Worker II
Meter Services Worker II
Meter Services Worker II
SCADA Supervisor
Secretary
Secretary
SENIOR CROSS CONN. CONTROL TECH
Senior Engineer
Senior Management Analyst
Senior Office Specialist
ASSOCIATE ENGINEER
Utilities Director
Utilities Engineering Manager
Utilities Maintenance Planner
Utilities Manager
Utilities Manager
Utilities Senior Engineer
Utilities Senior Engineer
CMWD
VEHICLE USE UNIFORM METERS and
SERVICES
ADMIN and
MGMT DISTRIBUTION CONSERVATIO
N
CROSS
CONNECTION
CONTROL
ENGINEERING GENERAL TOTAL
100%0%100%
100%0%100%
100%0%100%
100%0%100%
100%0%100%
100%0%100%
y y 100%0%100%
y y 100%0%100%
y y 100%0%100%
y y 100%0%100%
100%0%100%
100%0%100%
100%0%100%
y y 100%0%100%
y y 100%0%100%
y y 100%0%100%
y y 100%0%100%
100%0%100%
100%0%100%
100%0%100%
100%0%100%
100%0%100%
100%0%100%
100%0%100%
100%0%100%
100%0%100%
100%0%100%
100%0%100%
100%0%100%
100%0%100%
100%0%100%
100%0%100%
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Municipal Water Distrkt
CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Staff Allocation - Water
TITLE BARGAINING
UNIT ORG. KEY FTE ALLOCATION RANGE MID-POINT FY 2023 MID-PT
SALARY/WAGE COST
Utilities Superintendent MGT 5016310 0.8 127,254 101,803
Utilities Supervisor MGT 5016310 0.85 127,254 108,166
Utilities Supervisor MGT 5016310 0.85 127,254 108,166
Utilities Technical Services Manager MGT 5016310 0.35 142,921 50,022
Utility Worker I CCEA 5016310 0.85 54 67,683 57,531
Utility Worker I CCEA 5016310 0.85 54 67,683 57,531
Utility Worker I - UF CCEA 5016310 0.85 54 67,683 57,531
Utility Worker I - UF CCEA 5016310 0.85 54 67,683 57,531
Utility Worker II CCEA 5016310 0.85 66 76,211 64,780
Utility Worker III CCEA 5016310 0.85 77 85,051 72,294
Utility Worker III CCEA 5016310 0.85 77 85,051 72,294
Warehouse Technician CCEA 5016310 0.45 43 60,611 27,275
WATER CONSERVATION SPECIALIST CCEA 5016310 1 41 59,446 59,446
Water Systems Operator II CCEA 5016310 0.85 89 95,846 81,469
Water Systems Operator II CCEA 5016310 0.85 89 95,846 81,469
Water Systems Operator II CCEA 5016310 0.85 89 95,846 81,469
Water Systems Operator II CCEA 5016310 0.85 89 95,846 81,469
Water Systems Operator III CCEA 5016310 0.85 103 110,178 93,651
All Staff Allocation 31.500 4,741,224$ 2,899,247$
Resulting Allocation 100%
Staff with CMWD Vehicle Use Vehicle Use Units (Assumed equal to allocated FTEs)
Vehicle Costs Allocation
FTEs with Uniforms Uniform Units (Assumed equal to allocated FTEs)
Uniforms Cost Allocation
Note: Total salary cost indicated here is based on assuming midpoint of range for each FTE and position as a reasonable means
of allocating costs. This number is not a direct match to actual or budgeted costs which reflect each specific staff member's
assigned compensation level.
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Municipal Water Distrkt
CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Staff Allocation - Water
TITLE
Utilities Superintendent
Utilities Supervisor
Utilities Supervisor
Utilities Technical Services Manager
Utility Worker I
Utility Worker I
Utility Worker I - UF
Utility Worker I - UF
Utility Worker II
Utility Worker III
Utility Worker III
Warehouse Technician
WATER CONSERVATION SPECIALIST
Water Systems Operator II
Water Systems Operator II
Water Systems Operator II
Water Systems Operator II
Water Systems Operator III
All Staff Allocation
Staff with CMWD Vehicle Use
FTEs with Uniforms
Note: Total salary cost indicated here is based on assuming midpoint of range for each FTE and position as a reasonable means
of allocating costs. This number is not a direct match to actual or budgeted costs which reflect each specific staff member's
assigned compensation level.
CMWD
VEHICLE USE UNIFORM METERS and
SERVICES
ADMIN and
MGMT DISTRIBUTION CONSERVATIO
N
CROSS
CONNECTION
CONTROL
ENGINEERING GENERAL TOTAL
100%100%
100%100%
100%100%
100%100%
y y 100%0%100%
y y 100%0%100%
y y 100%0%100%
y y 100%0%100%
y y 100%0%100%
y y 100%0%100%
y y 100%0%100%
100%0%100%
100%0%100%
y y 100%0%100%
y y 100%0%100%
y y 100%0%100%
y y 100%0%100%
y y 100%0%100%
225,502$ 682,530$ 1,014,109$ 59,446$ 199,462$ 350,041$ 368,157$ 2,899,247$
7.8%23.5%35.0%2.1%6.9%12.1%12.7%100.0%
Vehicle Use Units (Assumed equal to allocated FTEs)3.50 - 10.20 - 2.00 - - 15.70
22.3%0.0%65.0%0.0%12.7%0.0%0.0%100.0%
Uniform Units (Assumed equal to allocated FTEs)3.50 - 10.20 - 2.00 - - 15.70
22.3%0.0%65.0%0.0%12.7%0.0%0.0%100.0%
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Municipal Water Distrkt
CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Misc Services Allocation
SOURCE: FY 24 Outside & Professional services budget.xlsx
ITEM DESCRIPTION/COMMENTS FYE 2024
BUDGET
CUSTOMER
ACCOUNT
SERVICE
METERS and
SERVICES
ADMIN and
MGMT DISTRIBUTION TREATMENT CONSERVATION
CROSS
CONNECTION
CONTROL
ENGINEERING GENERAL TOTAL
MISCELLANEOUS PROFESSIONAL SERVICES (7490)
40,000$ 100.0%0.0% 100%
100,000$ 100.0%0.0% 100%
50,000$ 100.0% 100%
75,000$ 100.0%0.0% 100%
75,000$ 100.0%0.0% 100%
37,208$ 100.0%0.0% 100%
40,000$ 100.0%0.0% 100%
40,000$ 100.0%0.0% 100%
20,000$ 100.0%0.0% 100%
25,000$ 100.0%0.0% 100%
9,000$ 100.0%0.0% 100%
15,000$ 100.0%0.0% 100%
10,000$ 0.0% 7.8% 23.5% 35.0% 0.0% 2.1% 6.9% 12.1%12.7% 100%
4,600$ 0.0% 7.8% 23.5% 35.0% 0.0% 2.1% 6.9% 12.1%12.7% 100%
2,600$ 0.0% 7.8% 23.5% 35.0% 0.0% 2.1% 6.9% 12.1%12.7% 100%
2,100$ 0.0% 7.8% 23.5% 35.0% 0.0% 2.1% 6.9% 12.1%12.7% 100%
2,000$ 100.0%0.0% 100%
2,000$ 100.0%0.0% 100%
1,200$ 100.0% 100%
550,708$ 25,000$ 41,501$ 128,544$ 141,751$ -$ 396$ 1,328$ 154,538$ 52,451$ 545,508$
100.0%4.6%7.6% 23.6%26.0%0.0%0.1%0.2% 28.3% 9.6%100.0%
miscellaneous safety training
All Staff Allocation
Coaching - Staff training (charges from HR)
Railroad easement safety training
Online training platform-certification contact hours
Respirator fit testing
Underground Service Digs
County of SD for Utility billing services
Compliance w/new EPA rule on lead and copper water lines
Process Safety Management/Risk Mgmt Plan
Services/Environmental Compliance
Misc. professional services re dams and reservoirs (surveying)
Outreach
Ongoing financial model updates
Structural Engineer for Safety
Increase budget for phase 2 water use mapping FY 2024
Hydraulic modeling expense, offset by new fee
Update water master plan
Asset management (redoing roadmap and as needed)
Regulatory and monitoring and guidance (water efficiency
standards, water loss audit validation)
Engineering - misc professional services
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Municipal Water District
CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Misc Services Allocation
SOURCE: FY 24 Outside & Professional services budget.xlsx
ITEM DESCRIPTION/COMMENTS FYE 2024
BUDGET
CUSTOMER
ACCOUNT
SERVICE
METERS and
SERVICES
ADMIN and
MGMT DISTRIBUTION TREATMENT CONSERVATION
CROSS
CONNECTION
CONTROL
ENGINEERING GENERAL TOTAL
5,000$ 100.0%0.0% 100%
125,000$ 100.0%0.0% 100%
500$ 100.0% 100%
5,000$ 100.0%0.0% 100%
600$ 100.0% 100%
35,000$ 100.0%0.0% 100%
35,000$ 100.0%0.0% 100%
40,000$ 100.0%0.0% 100%
50,000$ 100.0%0.0% 100%
5,000$ 100.0%0.0% 100%
10,000$ 100.0%0.0% 100%
5,000$ 100.0% 100%
10,000$ 100.0%0.0% 100%
2,500$ 100.0%0.0% 100%
4,000$ 100.0%0.0% 100%
25,000$ 100.0%0.0% 100%
25,000$ 100.0%0.0% 100%
1,100$ 0.0% 7.8% 23.5% 35.0% 0.0% 2.1% 6.9% 12.1%12.7% 100%
2,500$ 100.0%0.0% 100%
10,000$ 100.0%0.0% 100%
5,000$ 100.0%0.0% 100%
1,500$ 100.0%0.0% 100%
5,000$ 100.0%0.0% 100%
2,000$ 100.0%0.0% 100%
100,000$ 100.0%0.0% 100%
509,700$ 2,000$ 15,086$ 259$ 450,885$ 35,000$ 23$ 76$ 133$ 6,240$ 509,700$
100.0%0.4%3.0%0.1%88.5%6.9%0.0%0.0%0.0%1.2%100.0%
Minor PW rehab and repair contracts
All Staff Allocation
MISCELLANEOUS OUTSIDE SERVICES (7550)
Crane inspection
Laser Cut (clean cut asphalt for projects)
Roof repairs and inspections (pump stations)
Weight testing & Inspection of hoist (Maerkle)
Utility markout
County of SD for Utility billing services
Meter testing
Trench shoring
Crane Service (specialty crane comes to a site)
Generator maintenance
Maerkle Hydro Generator Maintenance/Service
hearing testing
CLA-VAL Maintenance
Electrical
Emergencies
Equipment repairs
Fence and gate repair repair at facilities
Heating & Air Conditioning
Animal and Pest control (urban wildlife, bees, venomous
Reservoir inspection, cleaning, maintenance, repair
Annual Fire Extinguisher Services
AMI hardware installs
Asbestos handling
Chlorinator & Chlorine Detector Maintenance
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Municipal Water District
CITY OF CARLSBAD
Water Financial Model
Potable Cost of Service Allocation
ALLOCATION BASIS CUSTOMER SERVICE BASE MAX DAY MAX HOUR PRIVATE FIRE SDCWA
AS ALL
OTHERS
Customer Only 96.2%3.8%0%
Customer Only - No Fire 100.0%0%
Service Only 98.4%1.6%0%
Service Only - No Fire 100.0%0%
SDCWA Only 100.0%0%
Desal Fixed/Var 59.5%40.5%0%
Max Day 100.0%0%
Base/Max Day 50.9% 49.1%0%
Max Day/Hour w/ Fire 47.7% 50.7% 1.6%0%
Plant-In-Service 0.0%15.9%6.0%38.7%37.7%1.6%0.0%0%
As All Others 100%
OPERATING EXPENDITURES CUSTOMER SERVICE BASE MAX DAY MAX HOUR PRIVATE FIRE SDCWA
AS ALL
OTHERS
Functionalized Operating Expenditures
CUSTOMER ACCOUNT SERVICE 54,900$ Customer Only - No Fire 54,900$ -$ -$ -$ -$ -$ -$ -$
METERS and SERVICES 1,489,389 Service Only - 1,464,850 - - - 24,539 - -
ADMIN and MGMT 3,658,246 Customer Only 3,519,558 - - - - 138,688 - -
DISTRIBUTION 3,920,880 Max Day/Hour w/ Fire - - - 1,869,090 1,987,191 64,600 - -
TREATMENT 269,432 Base/Max Day - - 137,258 132,174 - - - -
SDCWA Variable 23,594,936 SDCWA Only - - - - - - 23,594,936 -
SDCWA Fixed 6,018,378 Service Only - 5,919,220 - - - 99,158 - -
SDCWA IAC 2,071,374 Service Only - No Fire - 2,071,374 - - - - - -
DESAL 9,984,419 Desal Fixed/Var - 5,937,852 4,046,567 - - - - -
CONSERVATION 111,669 Max Day - -- 111,669 - - - -
FIRE PROTECTION 51,669 Service Only - 50,818 - - - 851 - -
CROSS CONNECTION CONTROL 399,691 Service Only - 393,106 - - - 6,585 - -
ENGINEERING 793,785 Plant-In-Service - 126,464 47,429 307,547 299,267 13,078 - -
GENERAL 971,160 As All Others - -- - - - - 971,160
Operating Expenditures Sub Total 53,389,928$ 3,574,458$ 15,963,684$ 4,231,253$ 2,420,480$ 2,286,457$ 347,499$ 23,594,936$ 971,160$
Reallocation of "As All Others"120,434$ 537,864$ 142,563$ 81,553$ 77,037$ 11,708$ Direct Pass
Through (971,160)$
Total Allocation 53,389,928$ 3,694,892$ 16,501,548$ 4,373,817$ 2,502,033$ 2,363,495$ 359,208$ 23,594,936$ -$
Resulting Allocation 100.0%6.9% 30.9% 8.2% 4.7% 4.4% 0.7% 44.2% 0.0%
Based on allocated assets
Applies total allocation to remaining line items.
Resulting allocation from system demand factor
analysis.Resulting allocation from system demand factor
analysis with private fire.
Desal allocation based on fixed and variable costs.
Applies to high demand water functions.
NOTES
FYE 2025
Applies to customer service related functions.
Applies to customer service related functions, excludes fire.
Applies to service related functions.
Applies to service related functions, excludes fire.
Applies to costs associated with SDCWA only.
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.C:arlsbad
micipal Water District
CITY OF CARLSBAD
Water Financial Model
Potable Cost of Service Allocation
RATE REVENUE REQUIREMENT CUSTOMER SERVICE BASE MAX DAY MAX HOUR PRIVATE FIRE SDCWA
AS ALL
OTHERS
Operating Expenses 53,389,928$ Resulting O&M Allocation 3,694,892$ 16,501,548$ 4,373,817$ 2,502,033$ 2,363,495$ 359,208$ 23,594,936$ -$
Debt - Service Only - No Fire - - - - - - - -
Rate Funded Capital - Service Only - - - - - - - -
Replacement Funding (Depreciation Funding)- Plant-In-Service - - - - - - - -
Cash Funded Capital 6,982,903 Plant-In-Service - 1,112,502 417,231 2,705,481 2,632,641 115,049 - -
Transfer to Capital Fund - Plant-In-Service - -- - - - - -
Additions to Meet Minimum Fund Balances - Plant-In-Service - -- - - - - -
Cash Flows (2,779,862) As All Others - - - - - - - (2,779,862)
Less Offsetting Revenues
Adj. to Reflect Full Year Increase 3,661,987$ As All Others -$ -$ -$ -$ -$ -$ -$ 3,661,987$
SDCWA Variable Pass-Throughs (23,594,936) SDCWA Only - - - - - - (23,594,936) -
SDCWA Fixed Pass-Throughs (8,000,718) Service Only - No Fire - (8,000,718) - - - - - -
Non-Rate Charges for Services (410,168) As All Others - -- - - - - (410,168)
Developer Fees - As All Others - -- - - - - -
Tax Revenues (3,679,796) Service Only - No Fire - (3,679,796) - - - - - -
Licenses and Permits - As All Others - -- - - - - -
Intergovernmental (25,116) As All Others - -- - - - - (25,116)
Fines & Forfeitures (176,631) As All Others - -- - - - - (176,631)
Income from Prop & Investments (2,456,976) As All Others - -- - - - - (2,456,976)
Interdepartmental (48,048) As All Others - -- - - - - (48,048)
Other Revenues (98,280) As All Others - -- - - - - (98,280)
Other Financing Sources - As All Others - -- - - - - -
Use of Reserves for Capital (6,982,903) Plant-In-Service - (1,112,502) (417,231) (2,705,481) (2,632,641) (115,049) - -
Total Rate Revenues to be Collected 15,781,384$ 3,694,892$ 4,821,034$ 4,373,817$ 2,502,033$ 2,363,495$ 359,208$ -$ (2,333,095)$
Reallocation of "As All Others"(475,892)$ (620,936)$ (563,336)$ (322,255)$ (304,412)$ (46,265)$ Direct Pass
Through 2,333,095$
Total Allocation 15,781,384$ 3,219,000$ 4,200,098$ 3,810,481$ 2,179,778$ 2,059,083$ 312,943$ -$ -$
Resulting Allocation 100.0%20.4%26.6%24.1%13.8%13.0%2.0%0.0%0.0%
FYE 2025
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micipal Water District
CITY OF CARLSBAD
Water Financial Model
Potable Cost of Service Allocation
PLANT IN SERVICE REPLACEMENT COST % TOTAL CUSTOMER SERVICE BASE MAX DAY MAX HOUR Fire Protection SDCWA As All Others
Land 11,573,857$ 0.7%100%0%
Buildings 12,315,032 0.8%100%0%
Water Service & Meters 5,503,521 0.4%100%0%
Machinery & Equipment 13,443,300 0.9%100%0%
District Fire Connections 11,802 0.0%100%0%
Reservoirs - From AMP Valuation 322,000,000 20.7%0%29%28%27%16%0%
Pipes & Pumping - From AMP Valuation 0.0%100%
Water Main 1,159,000,000 74.4%0%0%43%42%15%
Pump Stations 34,000,000 2.2%0%0%43%42%15%
Construction in Progress - 0.0%100%
Plant-In-Service Sub Total 1,557,847,512$ -$ 42,835,710$ 93,081,960$ 603,577,950$ 587,327,774$ 231,024,117$ -$ -$
Reallocation of "As All Others"-$ -$ -$ -$ -$ -$ -$ -$
Total Allocation 1,557,847,512$ -$ 42,835,710$ 93,081,960$ 603,577,950$ 587,327,774$ 231,024,117$ -$ -$
Resulting Allocation 100.0%0.0%2.7%6.0%38.7%37.7%14.8%0.0%0.0%
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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
CITY OF CARLSBAD
Recycled Water Financial Model
Recycled Water Functional Allocation
COST ALLOCATION BASIS FYE 2025
CUSTOMER
ACCOUNT
SERVICE
METERS and
SERVICES ADMIN DISTRIBUTION SUPPLY
CROSS
CONNECTION
CONTROL
ENGINEERING GENERAL As All Others
ALLOCATION BASIS
Customer Account Service 100.0%0%
Meters and Services 100.0%0%
Admin 100.0%0%
Distribution 100.0%0%
Supply 100.0%0%
General Items that provide a general benefit.100.0%0%
Staff Allocation See Staff Allocation.0.0%2.6% 15.9% 19.1% 0.0% 21.7% 33.1% 7.5%0%
Vehicle Costs Allocation See Staff Allocation.0.0%9.3%0.0% 30.6% 0.0% 50.9% 0.0%9.3%0%
Uniforms Cost Allocation See Staff Allocation.0.0%9.3%0.0% 30.6% 0.0% 50.9% 0.0%9.3%0%
As All Other Allocated as weighted average of O&M.100%
PLANT IN SERVICE ORIGINAL
COST
CUSTOMER
ACCOUNT
SERVICE
METERS and
SERVICES ADMIN DISTRIBUTION SUPPLY
CROSS
CONNECTION
CONTROL
ENGINEERING GENERAL As All Others
Recycled Mains 69,095,677$ 100%0%
Recycled Water Stations 8,238,070 100%0%
Recycled Water Facility 16,013,166 100%0%
Construction in Progress - 100%
Plant-In-Service Sub Total 93,346,913$ -$ -$ -$ 77,333,748$ 16,013,166$ -$ -$
Reallocation of "As All Others"-$ -$ -$ -$ -$ -$ -$
Total Allocation 93,346,913$ -$ -$ -$ 77,333,748$ 16,013,166$ -$ -$
Resulting Allocations 100.0%0.0%0.0%0.0% 82.8% 17.2%0.0%0.0%
Operating Expenditures FYE 2025
CUSTOMER
ACCOUNT
SERVICE
METERS and
SERVICES ADMIN DISTRIBUTION SUPPLY
CROSS
CONNECTION
CONTROL
ENGINEERING GENERAL As All Others
RRECYCLED WATER OPERATING EXPENDITURES
Personnel
Reg Salaries 1,168,904$ Staff Allocation -$ 30,906$ 186,282$ 223,224$ -$ 254,168$ 387,094$ 87,229$ -$
Incentive Pay - Staff Allocation - - - - - - - - -
Hazard Pay 7,196 Staff Allocation - 190 1,147 1,374 - 1,565 2,383 537 -
Other Personnel - Staff Allocation - -- - - -- - -
IOD Worker's Comp - Staff Allocation - -- - - -- - -
Overtime Salaries 41,600 Staff Allocation - 1,100 6,630 7,944 - 9,046 13,776 3,104 -
Standby Pay 4,378 Staff Allocation - 116 698 836 - 952 1,450 327 -
Parttimes Salaries 106,930 Staff Allocation - 2,827 17,041 20,420 - 23,251 35,411 7,980 -
Intern Salaries 1,896 Staff Allocation - 50 302 362 - 412 628 141 -
Elected Officials' Salaries - Staff Allocation - -- - - -- - -
Retired Annuitant Projects 31,200 Staff Allocation - 825 4,972 5,958 - 6,784 10,332 2,328 -
Mgt Physicals - Staff Allocation - -- - - -- - -
NOTES
Functions for supply produciton and purchase.
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Municipal Water District
---
CITY OF CARLSBAD
Recycled Water Financial Model
Recycled Water Functional Allocation
COST ALLOCATION BASIS FYE 2025
CUSTOMER
ACCOUNT
SERVICE
METERS and
SERVICES ADMIN DISTRIBUTION SUPPLY
CROSS
CONNECTION
CONTROL
ENGINEERING GENERAL As All OthersNOTES
Temproary Help - Staff Allocation - - - - - - - - -
Health Insurance 186,709 Staff Allocation - 4,937 29,755 35,656 - 40,598 61,830 13,933 -
Life Insurance 879 Staff Allocation - 23 140 168 - 191 291 66 -
AD&D - City Paid 439 Staff Allocation - 12 70 84 - 95 145 33 -
Vision Insurance - Staff Allocation - -- - - -- - -
Medicare 18,014 Staff Allocation - 476 2,871 3,440 - 3,917 5,965 1,344 -
Cell Phone Allowance - Staff Allocation - -- - - -- - -
Auto Allowance 508 Staff Allocation - 13 81 97 - 110 168 38 -
Earned Leave Accrual - Staff Allocation - -- - - -- - -
Healthy Emp Awards - Staff Allocation - -- - - -- - -
Final Vacation Pay - Staff Allocation - -- - - -- - -
Final Sick Leave Pay - Staff Allocation - -- - - -- - -
Disability 7,034 Staff Allocation - 186 1,121 1,343 - 1,529 2,329 525 -
Unemployment 6,137 Staff Allocation - 162 978 1,172 - 1,334 2,032 458 -
Worker's Compensation 28,735 Staff Allocation - 760 4,579 5,488 - 6,248 9,516 2,144 -
PERS 154,295 Staff Allocation - 4,080 24,589 29,466 - 33,550 51,096 11,514 -
OPEB Expense - Staff Allocation - -- - - -- - -
PERS Unfunded Liability Exp 198,129 Staff Allocation - 5,239 31,575 37,837 - 43,082 65,612 14,785 -
Social Security - Staff Allocation - -- - - -- - -
Deffered Comp 2,013 Staff Allocation - 53 321 385 - 438 667 150 -
Def Comp Match - Staff Allocation - -- - - -- - -
Other Personnel - Staff Allocation - -- - - -- - -
Maintenance & Equipment
Office Equp Rental -$ Staff Allocation -$ -$ -$ -$ -$ -$ -$ -$ -$
Other Mach & Equip - Staff Allocation - - - - - - - - -
Misc Rentals 525 General - - - - - - - 525 -
Misc Leases - General - - - - - - - - -
Office Equip Maintenance - Staff Allocation - - - - - - - - -
Communication Equip Maintenance - Staff Allocation - - - - - - - - -
Software Maintenance - Admin - - - - - - - - -
Computer Maintenance - Admin - - - - - - - - -
Vehicle Maint - Vehicle Costs Allocation - - - - - - - - -
Wash and Wax 1,575 Vehicle Costs Allocation - 146 - 481 - 802 - 146 -
Other Equip Maintenance 525 General - - - - - - - 525 -
Car Wash Repairs - General - - - - - - - - -
Pipeline Maintenance 10,500 Distribution - - - 10,500 - - - - -
FIRE HYDRANT MAINT - CITY 5,250 Distribution - - - 5,250 - - - - -
Routine Building Mainteance 1,050 General - - - - - - - 1,050 -
Asphalt Repairs 1,575 Distribution - - - 1,575 - - - - -
Maintenance, Repair and Rehab 3,405 Distribution - - - 3,405 - - - - -
Audit - Admin - - - - - - - - -
Legal - Admin - - - - - - - - -
Administrative - Admin - - - - - - - - -
Claims Admin - Admin - - - - - - - - -
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Municipal Water District
CITY OF CARLSBAD
Recycled Water Financial Model
Recycled Water Functional Allocation
COST ALLOCATION BASIS FYE 2025
CUSTOMER
ACCOUNT
SERVICE
METERS and
SERVICES ADMIN DISTRIBUTION SUPPLY
CROSS
CONNECTION
CONTROL
ENGINEERING GENERAL As All OthersNOTES
Misc Professional Services 289,676 Distribution - - - 289,676 - - - - -
Encina Services 1,926,044 Supply - - - - 1,926,044 - - - -
Encina Services (Pension Payoff)(75,823) Supply - - - - (75,823) - - - -
City Generated - General - - - - - - - - -
Citizen Generated - General - - - - - - - - -
Miscellaneous Outside Services 144,926 Distribution - - - 144,926 - - - - -
Bank Services 1,638 Admin - - 1,638 - - - - - -
Book Binding - Admin - - - - - - - - -
Regulatory/Permitting Fees 16,832 General - - - - - - - 16,832 -
Misc Services - General - - - - - - - - -
MWD/CWA Fixed Charges - General - - - - - - - - -
Laundry and Uniform Mainteance 3,150 Uniforms Cost Allocation - 292 - 963 - 1,604 - 292 -
Electrical/SCADA services 36,120 Distribution - - - 36,120 - - - - -
Landscaping Services 51,415 General - - - - - - - 51,415 -
Ads and Publishing - Admin - - - - - - - - -
Dues and Subscriptions 6,300 Staff Allocation - 167 1,004 1,203 - 1,370 2,086 470 -
Books and Publications 525 Staff Allocation - 14 84 100 - 114 174 39 -
Audio-Visual Materials - General - -- - - -- - -
Printing 4,200 Customer Account Service 4,200 - - - - - - - -
Postage 1,050 Customer Account Service 1,050 - - - - - - - -
Office Supplies 1,050 Staff Allocation - 28 167 201 - 228 348 78 -
Office Furniture & Equipment 2,625 Staff Allocation - 69 418 501 - 571 869 196 -
Computer Software 5,250 Admin - - 5,250 - - - - - -
Misc. Computer Hardware 3,150 Admin - - 3,150 - - - - - -
Promo Materials 1,050 Admin - - 1,050 - - - - - -
Preschool - Admin - -- - - - - - -
Heat and Light 387,704 Distribution - -- 387,704 - - - - -
Telephone & Communications 963 Staff Allocation - 25 153 184 - 209 319 72 -
Waste Dispoal Services - Staff Allocation - -- - - -- - -
Water 4,815 Staff Allocation - 127 767 920 - 1,047 1,595 359 -
Building Maintenance - General - -- - - -- - -
Electrical Supplies 525 Distribution - -- 525 - -- - -
Janitorial Supplies - General - -- - - -- - -
Parts-Vehicles - Distribution - -- - - -- - -
Parts-Equip 64,508 Distribution - -- 64,508 - -- - -
Rock and Mineral Products 1,050 Distribution - -- 1,050 - -- - -
Asphalt 1,050 Distribution - -- 1,050 - -- - -
Small Tools 630 Distribution - -- 630 - -- - -
Safety Equipment 17,903 Staff Allocation - 473 2,853 3,419 - 3,893 5,929 1,336 -
Uniforms and Accessories 3,150 Uniforms Cost Allocation - 292 - 963 - 1,604 - 292 -
Meters/Fittings - New 21,000 Meters and Services - 21,000 - -- -- --
Meters/Fittings - Replacement 21,000 Meters and Services - 21,000 - -- -- --
Fire Hose and Appliances - General - -- -- -- --
Rescue Equipment - General - -- -- -- --
Personal Protective Equipment - General - -- -- -- --
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Municipal Water District
CITY OF CARLSBAD
Recycled Water Financial Model
Recycled Water Functional Allocation
COST ALLOCATION BASIS FYE 2025
CUSTOMER
ACCOUNT
SERVICE
METERS and
SERVICES ADMIN DISTRIBUTION SUPPLY
CROSS
CONNECTION
CONTROL
ENGINEERING GENERAL As All OthersNOTES
Breathing Apparatus Equipment - General - - - - - - - - -
Shooting Range Supplies - General - - - - - - - - -
Gasoline and Oil - General - - - - - - - - -
Chemicals - General - - - - - - - - -
CMWD Purc Water-Outside Agency 2,935,500 Supply - - - - 2,935,500 - - - -
CMWD Purch Water-From City 18,900 Supply - - - - 18,900 - - - -
Misc Supplies 7,280 General - - - - - - - 7,280 -
Employee Training 780 Staff Allocation - 21 124 149 - 170 258 58 -
Tuition Reimbursement - Staff Allocation - -- - - -- - -
Training/Training Related Travel 6,271 Staff Allocation - 166 999 1,198 - 1,364 2,077 468 -
EXCLUDED Depreciation 1,517,400
EXCLUDED Depreciation - Phase III Expansion -
Prop Taxes PD - General - - - - - - - - -
Conference/Meeting Travel 1,388 Staff Allocation - 37 221 265 - 302 460 104 -
Misc. Meals/Miles 2,387 Staff Allocation - 63 380 456 - 519 791 178 -
Bad Debt Exp - Other Inv/Bills 7,280 Admin - - 7,280 - - - - - -
Reg Over/Short - General - -- - - - - - -
Settlements - General - -- - - - - - -
Prior Period Adjustment - General - -- - - - - - -
Repayments - General - -- - - - - - -
Interest on Deposit - General - -- - - - - - -
Misc Expenditures - General - -- - - - - - -
Contingencies - General - -- - - - - - -
Vehicle Direct Charges - Vehicle Costs Allocation - -- - - - - - -
Vehicle Mainteance 49,502 Vehicle Costs Allocation - 4,584 - 15,126 - 25,209 - 4,584 -
Vehicle Replacement 30,580 Vehicle Costs Allocation - 2,832 - 9,344 - 15,573 - 2,832 -
Street Lighting - General - -- -- -- --
Median Maintenace - General - -- -- -- --
General Liab 230,360 Distribution - -- 230,360 - -- --
Records Management Interdept - General - -- -- -- --
Information Technologies 244,805 Meters and Services - 244,805 - -- -- --
Misc Interdepartmental Charges 659,476 Admin - - 659,476 - - - - - -
Mis Chg Back - General - - - - - - - - -
Utility Billing Chargeback - General - - - - - - - - -
Fiscal Agent Fees - General - - - - - - - - -
Arbitrage Costs - General - - - - - - - - -
Principal Included separately on CoS
Interest Expense Included separately on CoS
Other - General - - - - - - - - -
Additional Maintenance & Equipment (199,160) As All Other - - - - - - - - (199,160)
Capital Outlay
Non-Budgeted Cap Equip <$10K -$ Distribution -$ -$ -$ -$ -$ -$ -$ -$ -$
Capital Outlay <$10K New 1,196 Distribution - - - 1,196 - - - - -
Cap Outlay - Vehicles 8,546 Vehicle Costs Allocation - 791 - 2,611 - 4,352 - 791 -
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Municipal Water District
CITY OF CARLSBAD
Recycled Water Financial Model
Recycled Water Functional Allocation
COST ALLOCATION BASIS FYE 2025
CUSTOMER
ACCOUNT
SERVICE
METERS and
SERVICES ADMIN DISTRIBUTION SUPPLY
CROSS
CONNECTION
CONTROL
ENGINEERING GENERAL As All OthersNOTES
Computer Equip > $10K - Repl - Distribution - - - - - - - - -
Office Equipment - Distribution - - - - - - - - -
Other Equipment - Distribution - - - - - - - - -
Capitalized Assets - Distribution - - - - - - - - -
Capital Projects - Distribution - - - - - - - - -
Other Capital Outlay - Distribution - - - - - - - - -
Other Financing Uses
Other Other Financing Uses -$ Distribution -$ -$ -$ -$ -$ -$ -$ -$ -$
Operating Expenditures Sub Total 8,937,967$ 5,250$ 348,885$ 998,168$ 1,591,810$ 4,804,621$ 486,203$ 665,632$ 236,558$ (199,160)$
Reallocation of "As All Others"(114)$ (7,605)$ (21,757)$ (34,696)$ (104,725)$ (10,598)$ (14,509)$ (5,156)$ 199,160$
Total Allocation 8,937,967$ 5,136$ 341,280$ 976,411$ 1,557,114$ 4,699,896$ 475,606$ 651,123$ 231,401$ -$
Percentage Allocation 100.0%0.1%3.8%10.9%17.4%52.6%5.3%7.3%2.6%0.0%
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Municipal Water District
CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Staff Allocation - Recycled Water
TITLE BARGAINING
UNIT ORG. KEY FTE
ALLOCATION RANGE MID-POINT
FY 2023 MID-PT
SALARY/WAGE
COST
CMWD
VEHICLE
USE
UNIFORM METERS and
SERVICES
ADMIN and
MGMT DISTRIBUTION
CROSS
CONNECTION
CONTROL
ENGINEERING GENERAL TOTAL
**Utility Locator**CCEA 5026310 0.1 66 76,211$ 7,621$ 100%100%
Accounting Technician CCEA 5026310 0.1 47 63,128 6,313 100%100%
Administrative Secretary CCEA 5026310 0.15 43 60,611 9,092 100%100%
Asset Management Program Specialist CCEA 5026310 0.15 84 91,208 13,681 100%100%
Assistant Engineer CCEA 5026310 1 82 89,398 89,398 100%100%
Associate Engineer CCEA 5026310 0.3 98 104,811 31,443 100%100%
BUYER/CONTRACT ADMINISTRATOR CCEA 5026310 0.1 63 74,006 7,401 100%100%
CROSS CONNECTION CONTROL TECHNICIAN CCEA 5026310 0.5 80 87,630 43,815 y y 100%100%
CROSS CONNECTION CONTROL TECHNICIAN CCEA 5026310 0.5 80 87,630 43,815 y y 100%100%
CROSS CONNECTION CONTROL TECHNICIAN CCEA 5026310 0.5 80 87,630 43,815 y y 100%100%
CROSS CONNECTION CONTROL TECHNICIAN CCEA 5026310 0.5 80 87,630 43,815 y y 100%100%
Engineering Technician II CCEA 5026310 0.3 60 71,802 21,540 100%100%
GIS Associate Analyst CCEA 5026310 0.3 70 79,331 23,799 100%100%
Management Analyst MGT 5026310 0.1 89,108 8,911 100%100%
METER SERVICES WORKER III MGT 5026310 0.2 50 65,021 13,004 y y 100%100%
Meter Services Worker II CCEA 5026310 0.1 37 57,117 5,712 y y 100%100%
Meter Services Worker II CCEA 5026310 0.1 37 57,117 5,712 y y 100%100%
Meter Services Worker II CCEA 5026310 0.1 37 57,117 5,712 y y 100%100%
SENIOR SCADA & IMPLEMENTATION TECH.103 SENIOR STORM DRAIN MAINT. WORKERMGT 5026310 0.15 72 80,891 12,134 100%100%
Secretary CCEA 5026310 0.2 35 56,014 11,203 100%100%
Secretary CCEA 5026310 0.25 35 56,014 14,004 100%100%
SENIOR CROSS CONN. CONTROL TECH CCEA 5026310 0.75 90 96,803 72,602 y y 100%100%
Senior Engineer MGT 5026310 0.35 127,254 44,539 100%100%
Senior Management Analyst MGT 5026310 0.25 108,560 27,140 100%100%
Senior Office Specialist CCEA 5026310 0.2 27 51,709 10,342 100%100%
ASSISTANT ENGINEER CCEA 5026310 0.3 82 89,398 26,820 100%100%
Utilities Director MGT 5026310 0.15 193,465 29,020 100%100%
Utilities Engineering Manager MGT 5026310 0.3 166,392 49,918 100%100%
Utilities Maintenance Planner MGT 5026310 0.35 89,108 31,188 100%100%
Utilities Manager MGT 5026310 0.2 166,392 33,278 100%100%
Utilities Manager MGT 5026310 0.15 166,392 24,959 100%100%
Utilities Senior Engineer MGT 5026310 0.3 127,254 38,176 100%100%
Utilities Senior Engineer MGT 5026310 0.3 127,254 38,176 100%100%
Utilities Superintendent MGT 5026310 0.2 127,254 25,451 y y 100%100%
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CITY OF CARLSABAD
Potable Water and Recycled Water Financial Model
Staff Allocation - Recycled Water
TITLE BARGAINING
UNIT ORG. KEY FTE
ALLOCATION RANGE MID-POINT
FY 2023 MID-PT
SALARY/WAGE
COST
CMWD
VEHICLE
USE
UNIFORM METERS and
SERVICES
ADMIN and
MGMT DISTRIBUTION
CROSS
CONNECTION
CONTROL
ENGINEERING GENERAL TOTAL
Utilities Supervisor MGT 5026310 0.15 127,254 19,088 y y 100%100%
Utilities Supervisor MGT 5026310 0.15 127,254 19,088 y y 100%100%
Utilities Technical Services Manager MGT 5026310 0.15 142,921 21,438 100%100%
Utility Worker I CCEA 5026310 0.15 54 67,683 10,152 y y 100%100%
Utility Worker I CCEA 5026310 0.15 54 67,683 10,152 y y 100%100%
Utility Worker I - UF CCEA 5026310 0.15 54 67,683 10,152 y y 100%100%
Utility Worker I - UF CCEA 5026310 0.15 54 67,683 10,152 y y 100%100%
Utility Worker II CCEA 5026310 0.15 66 76,211 11,432 y y 100%100%
Utility Worker III CCEA 5026310 0.15 77 85,051 12,758 y y 100%100%
Utility Worker III CCEA 5026310 0.15 77 85,051 12,758 y y 100%100%
Warehouse Technician CCEA 5026310 0.25 43 60,611 15,153 100%100%
Water Systems Operator II CCEA 5026310 0.15 89 95,846 14,377 y y 100%100%
Water Systems Operator II CCEA 5026310 0.15 89 95,846 14,377 y y 100%100%
Water Systems Operator II CCEA 5026310 0.15 89 95,846 14,377 y y 100%100%
Water Systems Operator II CCEA 5026310 0.15 89 95,846 14,377 y y 100%100%
Water Systems Operator III CCEA 5026310 0.15 103 110,178 16,527 100%100%
All Staff Allocation 12.0000 4,685,313$ 1,139,907$ 30,139$ 181,661$ 217,687$ 247,863$ 377,491$ 85,065$ 1,139,907$
Resulting Allocation 100%2.6%15.9%19.1%21.7%33.1%7.5%100.0%
Staff with CMWD Vehicle Use Vehicle Use Units (Assumed equal to allocated FTEs)0.50 - 1.65 2.75 - 0.50 5.40
9.3%0.0%30.6%50.9%0.0%9.3%100.0%
FTEs with Uniforms Vehicle Use Units (Assumed equal to allocated FTEs)0.50 - 1.65 2.75 - 0.50 5.40
Uniforms Cost Allocation 9.3%0.0%30.6%50.9%0.0%9.3%100.0%
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CITY OF CARLSBAD
Recycled Water Financial Model
Recycled Cost of Service Allocation
COST ALLOCATION BASIS FYE 2025
ALLOCATION BASIS CUSTOMER SERVICE BASE SUPPLY AS ALL OTHERS TOTAL
Customer Only 100.0%0.0%100%
Customer and Meter Service 20.0%80.0%0.0%100%
Service Only 100.0%100%
Base Only 100.0%0.0%100%
Service and Base 50.0%50.0%0.0%100%
Supply Only 100.0%0.0%100%
As All Others Applies total allocation to remaining line items.100.0%100%
Plant In Service See Plant in Service section below.0.0%25.0%59.8%15.2%0.0%100%
PLANT IN SERVICE REPLACEMENT COST CUSTOMER SERVICE BASE SUPPLY AS ALL OTHERS TOTAL
Recycled Mains 99,156,271$ 25.0%75.0%0.0%100%
Recycled Water Stations 11,936,536 25.0%75.0%0.0%100%
Recycled Water Facility 28,183,783 25.0%75.0%0.0%100%
Construction in Progress - 100.0%100%
Plant-In-Service Sub Total 139,276,589$ -$ 34,819,147$ 83,319,605$ 21,137,837$ -$
Reallocation of "As All Others"-$ -$ -$ -$ -$
Total Allocation 139,276,589$ -$ 34,819,147$ 83,319,605$ 21,137,837$ -$
Resulting Allocations 100.0%0.0%25.0%59.8%15.2%0.0%
OPERATING EXPENDITURES CUSTOMER SERVICE BASE SUPPLY AS ALL OTHERS TOTAL
Functionalized Operating Expenditures
CUSTOMER ACCOUNT SERVICE 5,136$ Customer Only 5,136$ -$ -$ -$ -$ 5,136$
METERS and SERVICES 341,280 Customer and Meter Service 68,256 273,024 - - - 341,280
ADMIN 976,411 Service Only - 976,411 - - - 976,411
DISTRIBUTION 1,557,114 Base Only - - 1,557,114 - - 1,557,114
SUPPLY 4,699,896 Supply Only - - - 4,699,896 - 4,699,896
CROSS CONNECTION CONTROL 475,606 Service and Base - 237,803 237,803 - - 475,606
ENGINEERING 651,123 Plant In Service - 162,781 389,522 98,820 - 651,123
GENERAL 231,401 As All Others - -- - 231,401 231,401
Operating Expenditures Sub Total 8,937,967$ 73,392$ 1,650,019$ 2,184,439$ 4,798,716$ 231,401$ 8,937,967$
Reallocation of "As All Others"1,951$ 43,854$ 58,058$ 127,539$ (231,401)$
Total Allocation 8,937,967$ 75,342$ 1,693,873$ 2,242,497$ 4,926,255$ -$
Percentage Allocation 100.0%0.8%19.0%25.1%55.1%0.0%
Fixed Charge
NOTES
Applies to customer and related functions
Applies to customer and service related functions
FYE 2025
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CITY OF CARLSBAD
Recycled Water Financial Model
Recycled Cost of Service Allocation
COST ALLOCATION BASIS FYE 2025
RATE REVENUE REQUIREMENT CUSTOMER SERVICE BASE SUPPLY AS ALL OTHERS TOTAL
Operating Expenses 8,937,967$ As O&M 75,342$ 1,693,873$ 2,242,497$ 4,926,255$ -$ 8,937,967$
Debt Service 2,385,119 Base Only - - 2,385,119 - - 2,385,119
Rate Funded Capital - Plant In Service - - - - - -
Replacement Funding - Plant In Service - - - - - -
Transfer to Capital Fund - Plant In Service - - - - - -
Cash Flows (963,314) As All Others - - - - (963,314) (963,314)
Less Offsetting Revenues
Offsetting Recycled Water Revenues
Adj. to Reflect Full Year Increase 418,597$ As All Others -$ -$ -$ -$ 418,597$ 418,597$
Non-Rate Charges for Services (1,312) As All Others - - - - (1,312) (1,312)
Developer Fees - As All Others - - - - - -
Intergovernmental (CWA)- As All Others - - - - - -
Fines and Forfeitures (85,515) As All Others - - - - (85,515) (85,515)
Income from Property & Investments (96,700) As All Others - - - - (96,700) (96,700)
Interdepartmental (10,920) As All Others - - - - (10,920) (10,920)
Other Revenues (863,162) As All Others - - - - (863,162) (863,162)
Other Financing Sources - As All Others - - - - - -
Total Rate Revenues to be Collected 9,720,761$ 75,342$ 1,693,873$ 4,627,616$ 4,926,255$ (1,602,326)$ 9,720,761$
Reallocation of "As All Others"(10,662)$ (239,699)$ (654,852)$ (697,112)$ 1,602,326$ -$
Total Allocation 9,720,761$ 64,681$ 1,454,174$ 3,972,764$ 4,229,143$ -$
Percentage Allocation 100.0%0.7%15.0%40.9%43.5%0.0%
CHECK
Rate Revenues from Revenue Requirement 9,720,761$
Rate Revenues from Functional Allocation 9,720,761$
-$
OKAY
FYE 2025
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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
CITY OF CARLSBAD
Potable Water and Recycled Water Financial Model
Customer Allocation
ALLOCATION YEAR FYE 2025
SFR MFR NR AR IR
CUSTOMER STATISTICS Single Family Multi-Family Commercial Agricultural Irrigation Fire TOTAL
Number of Accounts 24,521 1,284 1,707 12 793 1,116 29,433
Number of MEUs 28,141 5,482 8,445 173 4,183 50,230 96,654
Annual Water Usage 3,361,234 817,637 1,252,320 81,534 702,011 6,214,735 ccf
Max Month 335,466 72,733 125,869 9,418 85,564 629,050 ccf
Max Day 17,496 3,793 6,565 491 4,463 32,808 ccf
Max Hour 1,077 234 404 30 275 2,020 ccf
CUSTOMER Single Family Multi-Family Commercial Agricultural Irrigation TOTAL
87%5%6%0%3%100%
Allocation Basis:Number of Accounts 24,521 1,284 1,707 12 793 28,317
Allocated Customer Costs 2,787,475$ 145,956$ 194,027$ 1,368$ 90,174$ 3,219,000$
SERVICE Single Family Multi-Family Commercial Agricultural Irrigation TOTAL
61%12%18%0%9%100%
Allocation Basis:Number of MEUs 28,141 5,482 8,445 173 4,183 46,424
Allocated Customer Costs 2,545,959$ 495,989$ 764,071$ 15,651$ 378,429$ 4,200,098$
BASE Single Family Multi-Family Commercial Agricultural Irrigation TOTAL
54.08%13.16%20.15%1.31%11.30%100%
Allocation Basis:Annual Water Usage 3,361,234 817,637 1,252,320 81,534 702,011 6,214,735
Allocated Customer Costs 2,060,895$ 501,323$ 767,843$ 49,992$ 430,428$ 3,810,481$
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CITY OF CARLSBAD
Potable Water and Recycled Water Financial Model
Customer Allocation
MAX DAY Single Family Multi-Family Commercial Agricultural Irrigation TOTAL
53%12%20%1%14%100%
Allocation Basis:Max Day 17,496 3,793 6,565 491 4,463 32,808
Allocated Customer Costs 1,162,453$ 252,035$ 436,160$ 32,635$ 296,495$ 2,179,778$
MAX HOUR Single Family Multi-Family Commercial Agricultural Irrigation TOTAL
53%12%20%1%14%100%
Allocation Basis:Max Hour 1,077 234 404 30 275 2,020
Allocated Customer Costs 1,098,088$ 238,080$ 412,010$ 30,828$ 280,077$ 2,059,083$
PRIVATE FIRE Fire TOTAL
Allocation Basis:Number of MEUs 50,230 50,230
Allocated Customer Costs 312,943$ 312,943$
Cost Allocation Summary Single Family Multi-Family Commercial Agricultural Irrigation Fire TOTAL
CUSTOMER 2,787,475 145,956 194,027 1,368 90,174 - 3,219,000
BASE 2,060,895 501,323 767,843 49,992 430,428 - 3,810,481
MAX DAY 1,162,453 252,035 436,160 32,635 296,495 - 2,179,778
MAX HOUR 1,098,088 238,080 412,010 30,828 280,077 - 2,059,083
SERVICE 2,545,959 495,989 764,071 15,651 378,429 - 4,200,098
PRIVATE FIRE - - - - - 312,943 312,943
Total 9,654,871$ 1,633,383$ 2,574,111$ 130,474$ 1,475,603$ 312,943$ 15,781,384$
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