HomeMy WebLinkAbout2012-11-27; City Council; 21059; Setting Water Sewer Rates15
CITY OF CARLSBAD CITY COUNCIL & CARLSBAD MUNICIPAL
WATER DISTRICT - AGENDA BILL
AB# 21.059 SETTING WATER AND SEWER RATES
DEPT. HEAD
MTG. 11/27/12 SETTING WATER AND SEWER RATES CITY ATTY.
DEPT. FIN
SETTING WATER AND SEWER RATES
CITY MGR.
RECOMMENDED ACTION:
City Council adopt Resolution No. 2012-263 approving a decrease to sewer rates that
were previously approved on December 6, 2011 for properties within the City of Carlsbad; and,
Municipal Water District Board adopt Resolution No. 1454 approving a decrease to
water rates that were previously approved on December 6, 2011 for properties within the
Carlsbad Municipal Water District.
ITEM EXPLANATION:
A majority protest public hearing on proposed water and sewer rate increases was held on
December 6, 2011. There was no majority protest and the proposed 2-year rate Increases
were approved by the CMWD Board of Directors and the Carlsbad City Council (Exhibit 1). The
rate Increases approved at that time were a 10 percent water rate Increase effective January 1,
2012, and a 10 percent water rate Increase effective January 1, 2013. Sewer rate Increases
approved at that time were a 6.5 percent rate Increase effective January 1 2012, and a 6
percent Increase effective January 1, 2013.
Rate increases were needed for the following reasons:
• Increased cost of wholesale potable and recycled water
• Increased maintenance and operating expenditures
• Establishment of adequate operating and replacement reserves
PROPOSED WATER AND SEWER RATES:
Staff has updated the five-year financial forecasts of the water and sewer utilities. Based on the
most recent forecasts, staff Is recommending lower rate increases for January 1, 2013 than the
maximum rates previously approved, primarily due to Increased revenues and a reduction In
expenditures over the amounts originally budgeted. An 8 percent water rate Increase and a 2
percent sewer rate Increase are cunrently proposed (Instead of the 10 percent maximum water
rate Increase and the 6 percent maximum sewer rate Increase previously approved). As long
DEPARTMENT CONTACT: Helga Stover, 760-602-2429, Helqa.Stover(5).carisbadca.qov
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED CONTINUED TO DATE SPECIFIC •
DENIED • CONTINUED TO DATE UNKNOWN •
CONTINUED • RETURNED TO STAFF •
WITHDRAWN • OTHER-SEE MINUTES •
AMENDED •
Page 2
The City of Carlsbad purchases 100 percent of its potable water from the San Diego County
Water Authority (CWA). The purchase price includes two components - fixed and variable
charges. The variable charges are paid for the actual water, or commodity purchased,
including the transportation cost, and is charged on a per acre foot basis. In January 2013, the
CWA is expected to increase the commodity cost of wholesale water by 11 percent, from $957
to $1,063 per acre foot. The fixed charge component incudes charges for customer service,
emergency storage, infrastructure access, ready-to-serve charges, and capacity reservation
charges. These are allocated to member agencies of the CWA on an annual basis and billed
over a 12 month period. These fixed charges pay for everything except the water and
transportation of the water. Fixed charges for water purchases are expected to increase by
about 9 percent in January 2013.
In addition to providing on-going operating, maintenance, and infrastructure replacement
funding, the rate increases are consistent with the plan to increase the fund balance (reserve)
to a minimum 30 percent of operating expenses by the end of Fiscal Year 2014-15. The
minimum 30 percent fund balance is an amount reserved for unanticipated emergencies (such
as a water or sewer main break) and unexpected fluctuations in revenues or expenditures
(such as decreases in water purchase quantities or rising water costs) which could affect the
ability to fund ongoing operating and maintenance costs.
FISCAL IMPACT:
The proposed rate increases, if approved, will be effective January 1, 2013, and will provide
adequate funding to properiy operate and maintain Carisbad's water and sewer systems and
provide adequate operational reserves.
ENVIRONMENTAL IMPACT:
The California Environmental Quality Act (CEQA) does not apply to the establishment or
modification of rate for the purpose of meeting operating expenses (CEQA Guidelines
Regulation 15273).
EXHIBITS:
1. Resolution No. 1454 of the Board of Directors of the Carisbad Municipal Water
District approving a decrease in the previously approved water rates.
2. Resolution No. 2012-263 of the City Council of the City of Carisbad approving a
decrease in the previously approved sewer rates.
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Exhibit 1
1 RESOLUTION NO. 1454
2 A RESOLUTION OF THE BOARD OF DIRECTORS OF
CARLSBAD MUNICIPAL WATER DISTRICT (CMWD) TO
^ APPROVE A DECREASE IN THE PREVIOUSLY
4 APPROVED WATER RATES
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6 WHEREAS, the California Constitution, Article XlllD, Section 6, provides that
7 local governments must hold a public majority-protest hearing, and notify customers
^ forty-five (45) days in advance of increases in water rates; and
WHEREAS, in October 2011, Carisbad residents and property owners were
notified by mail of the proposed rate increases (Exhibit A), thereby complying with the
advance notice requirement of forty-five days; and,
WHEREAS, on December 6, 2011 the Board of Directors of the Carisbad
Municipal Water District held a Public Hearing and approved an increase in the water
j5 rates as set forth in Exhibit A; and,
16 WHEREAS, based on the most recent five year financial forecast of the water
17 utilities, staff is recommending that the previously approved rate increase of 10% be
18 changed to 8%;
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the
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Carisbad Municipal Water District, as follows:
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1. That the above recitations are true and correct.
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2. The Board of Directors of the Carisbad Municipal Water District approves
24 the rates that appear in Exhibit B. These rates shall be effective as of January 1, 2013
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PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the
Carisbad Municipal Water District Board of Directors and the Carisbad City Council,
held on the 27th day of November, 2012, by the following vote:
AYES: Board Members Hall, Kulchin, Blackburn, Douglas, Packard
NOES: None
ABSENT: None
MA
ATTEST:
(SEAL) Kar en R, Kundtz, Assistant Secretar
Proposed Water and Sewer Rate Increases
Two Year IVlaximum Rate Increases
The City of Carlsbad and the Carlsbad Municipal Water Distnct are proposing increases in
water and sewer rates over the next 2 years. If the City Council and the Carlsbad Municipal
Water District Board of Directors adopt the rate increases at the public hearing on December
6th, 2011, the new rates will be effective January 1,2012, and January 1,2013.
About Water Rates
There are two components to the water rates
charged by the city: the delivery charge and the
usage charge. The delivery charge is a monthly
fixed charge based on the size of meter. The
usage charge is the charge for the volume of
water used. The proposed rate increases for
the residential and non-residential delivery
charges and usage charges are 10% (maximum)
on January 1, 2012 and 10% (maximum) on
January 1, 2013.
The City of Carlsbad purchases 100% of its
potable water from the San Diego County
Water Authority (SDCWA). The cost of potable
water purchased from the SDCWA continues to
increase. The cost of purchased recycled water
has also risen. The proposed rates will cover
the increasing cost of purchased water and pay
for ongoing operations, maintenance and
replacement of the city's water system, as well
as establish an adequate operating reserve.
CARLSBAD
T¥ OF
Residential water rates
Single-family and multi-family residential rates
are grouped into tiers, with the first tiers having
the lowest per unit rate and the second and
third tiers having incrementally higher rates.
The proposed water rate increase for January 1,
2012, will raise the monthly water charge for a
typical single family household with a 5/8 inch
meter and using 12 units of water, by $5.04
(from $50.40 to $55.44). The exact amount of
the increase will vary among customers
depending on actual water usage. The
proposed increase for January 1, 2013 will raise
the monthly water charge from $55.44 to
$61.02 ($5.58). Proposed water rates are
shown on the table to the right.
Commercial, agriculture, recycled
and irrigation water rates
Non-residential customers have different water
usage needs than residential customers;
therefore, the usage charge is a flat per unit
rate rather than a tiered rate. The delivery
charge is also a flat rate based on meter size.
Proposed non-residential rates are also shown
on the table to the right.
1/1/2012 1/1/2013
Current Proposed Proposed
Monthly Delivery Charge: 10% 10%
Meter Size:
5/8" $ 18.00 $ 19.80 $ 21.78
3/4" $ 22.70 $ 24.97 $ 27.47
1" $ 32.43 $ 35.67 $ 39.24
1.5" $ 56.90 $ 62.59 $ 68.85
2" $ 86.08 $ 94.69 $ 104.16
2.5" $ 124.41 $ 136.85 $ 150.54
3" $ 163.91 $ 180.30 $ 198.33
4" $ 251.47 $ 276.62 $ 304.28
6" $ 494.97 $ 544.47 $ 598.92
8" $ 786.83 $ 865.51 $ 952.06
10" $ 1,127.62 $ 1,240.38 $ 1,364.42
Usage Charges (i unit : = 748 gallons): 10% 10%
Single-Family Rates
Tier 1 (0-12 units) $ 2.70 $ 2.97 $ 3.27
Tier 2 (13-20 units) $ 3.48 $ 3.83 $ 4.21
Tier 3 (21+ units) $ 4,74 $ 5.21 $ 5.73
Multi-Family Rates
Tier 1 (0-5 units) $ 2.28 $ 2.51 $ 2.76
Tier 2 (6-10 units) $ 2.57 $ 2.83 $ 3.11
Tier 3 (11+ units) $ 3.06 $ 3.37 $ 3.71
Commercial, Agriculture and Irrigation Rates
Non-residential $ 3.12 $ 3.43 $ 3.77
Agricultural Rates $ 3.12 $ 3.43 $ 3.77
Irrigation Rate $ 3.50 $ 3.85 $ 4.24
Recycled Water $ 2.97 $ 3.27 $ 3.60
Proposed Sewer Increases
Residential customers pay a flat monthly
charge for sewer services while most non-
residential customers pay a rate per volume of
water usage. The proposed sewer rate
increases are 6.5% and 6.0% beginning January
1, 2012 and January 1, 2013, respectively. The
proposed rate increases are needed to
generate sufficient revenue for recovering
costs associated with operations, maintenance
and replacement of aging or failing
infrastructure, as well as establishing and
maintaining an adequate operating reserve.
Two Year Maximum Rate Increases
1/1/2012 1/1/2013
Current Proposed Proposed
Groups (1 through VI) 6.5% 6.0%
Flat monthly charge:
1 - Residential $23.03 $24.53 $26.00
Per unit of water used:
1 - Multi-family $2.65 $2.82 $2.99
II - Commercial $2.16 $2.30 $2.44
IM - Commercial $3.28 $3.49 $3.70
IV - Commercial $6.08 $6.47 $6.86
V - Other institutional $2.06 $2.19 $2.32
VI - Bio-Hydration Research
Lab Inc. $1.87 $1.99 $2.11
Per student:
V - Elementary school $0.47 $0.50 $0.53
V - Junior high school $0.70 $0.74 $0.78
V - High school $0.94 $1.00 $1.06
V - Boarding school $4.90 $5.22 $5.53
The proposed rates, If adopted, will
become effective January 1, 2012
andJanuary 1,2013.
Sample of Maximum Rate Increases
Current 1/1/2012 1/1/2013
Water (*) $ 50.40 $ 55.44 $ 61.02
Sewer $ 23.03 $ 24.53 $ 26.00
Trash (**) $ 18.87 $ 18.87 $ 18.87
Total $ 92.30 $ 98.84 $ 105.89
Total monthly increase $ 6.54 $ 7.05
Increase percent 7.1% 7.1%
(*) The sample rate calculation Is based on a single
family home with a 5/8 inch meter using 12 units of
water per month.
(**) Trash rate increases are not being considered as
part of this action. The trash rates shown in the
table above are based on the existing rates and are
subject to changes in future years based on subse-
quent actions by the city council.
For more information about the public hearing
process or the proposed water and sewer rate
increases, call 760-602-2403, or visit the city's
website at www.carlsbadca.gov/finance.
Notice of Public
Hearing on
proposed maximum
sewer and water
rate increases
Tuesday
December 6th, 2011
at 6pm
City of Carlsbad
City Council Chambers
1200 Carlsbad Village Drive
Carlsbad, CA 92008
The rates for water and sewer service
are proposed to increase. This notice
has information about the proposed
rate increases.
CITY OF
CARLSBAD
PROPOSED RATE INCREASES
WATER
01/01/2013
Current PROPOSED
Delivery Charge
5/8" 19.80 21.38
3/4" 24.97 26.97
1" 35.67 38.52
1.5" 62.59 67.60
2" 94.69 102.27
2.5" 136.85 147.80
3" 180.30 194.72
4" 276.62 298.75
6" 544.47 588.03
8" 865.51 934.71
10" 1,240.38 1,339.61
Single-Family Rates
Tier 1 (0-12ccfs) 2.97 3.20
Tler2(13-20ccfs) 3.83 4.13
Tier 3 (21+ ccfs) 5.21 5.62
Multi-Family Rates
Tier 1 (0-5ccfs) 2.51 2.71
Tier 2 (6-lOccfs) 2.83 3.05
Tier 3 (11+ ccfs) 3.37 3.64
Commercial/Non-Residentlal $ 3.43 $ 3.70
Agricultural Rates $ 3.43 $ 3.70
Irrigation Rate $ 3.85 $ 4.15
Recycled Water $ 3.27 $ 3.53
SEWER
01/01/2013
CURRENT PROPOSED
2.0%
Group 1 -Residential (Flat Monthly Charge) 24.53 25.02
Group 1 -Multi-Family (per ccf of water usage) 2.82 2.88
Group li -• Commercial (per ccf of water usage) 2.30 2.35
Group III - Commercial (per ccf of water usage) 3.49 3.56
Group IV - Commercial (per ccf of water usage) 6.47 6.60
Group V - Other Institutional (per ccf of water usage) 2.19 2.23
Group V - Elementary School (per student) 0.50 0.51
Group V - Junior High School (per student) 0.74 0.75
Group V • High School (per student) 1.00 1.02
Group V - Boarding School (per student) 5.22 5.32
Group VI - Bio-Hydration Research Lab Inc. (per ccf) 1.99 2.03
Table showing single family monthly utility
bill for a household using 12 units of water.
Average Single Family Bill
CURRENT 01/01/2013
WATER $ 55.44 $ 59.78
SEWER $ 24.53 $ 25.02
TRASH $ 19.90 $ 19.90
TOTAL $ 99.87 $ 104.70
Increase $ $ 4.83
Increase % 4.896
Exhibit 2
1 RESOLUTION NO. 2012-263
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, TO APPROVE A DECREASE
^ IN THE PREVIOUSLY APPROVED SEWER RATES.
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5 WHEREAS, the California Constitution, Article XlllD, Section 6, states that local
6 governments must hold a public majority-protest hearing, and notify customers forty-five
7 (45) days in advance of increases in sewer and trash rates; and
^ WHEREAS, the City of Carisbad is proposing an increase in sewer rates; and
WHEREAS, in October 2011, Carisbad residents and property owners were
notified by mail of the proposed rate increases (Exhibit A), thereby complying with the
advance notice requirement of forty-five (45) days; and,
WHEREAS, on December 6, 2011 the City Council of the City of Carisbad held a
Public Hearing and approved an increase in the sewer rates as set forth in Exhibit A;
and,
16 WHEREAS, based on the most recent five year financial forecast of the sewer
17 utilities, staff is recommending that the previously approved rate increase of 6% be
18 changed to 2%;
WHEREAS, the City Council of the City of Carisbad approves the sewer rate
increases as set forth in Exhibit B.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Carlsbad, California, as follows:
1. That the above recitations are true and correct.
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25 2. That the City Council of the City of Carisbad approves the increases in
26 sewer rates, effective January 1, 2013, as set forth in "Exhibit B."
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PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the
Carisbad City Council and Carisbad Municipal Water District Board of Directors, held
on the 27th day of November, 2012, by the following vote:
AYES: Council Members Hall, Kulchin, Blackburn, Douglas, Packard
NOES: None
ABSENT: None
LORRAMME l^JtipJiD, ^ Clerk
(SEAL) Karen R. Kundtz, Assistant City Cle
Proposed Water and Sewer Rate Increases
The City of Carlsbad and the Carlsbad Municipal Water District are proposing increases in
water and sewer rates over the next 2 years. Ifthe City Council and the Carlsbad Municipal
Water District Board of Directors adopt the rate increases at the public hearing on December
6th, 2011, the new rates will be effective January 1,2012, and January 1,2013.
Two Year Maximum Rate Increases
About Water Rates
There are two components to the water rates
charged by the city: the delivery charge and the
usage charge. The delivery charge is a monthly
fixed charge based on the size of meter. The
usage charge is the charge for the volume of
water used. The proposed rate increases for
the residential and non-residential delivery
charges and usage charges are 10% (maximum)
on January 1, 2012 and 10% (maximum) on
January 1,2013.
The City of Carlsbad purchases 100% of its
potable water from the San Diego County
Water Authority (SDCWA). The cost of potable
water purchased from the SDCWA continues to
increase. The cost of purchased recycled water
has also risen. The proposed rates will cover
the increasing cost of purchased water and pay
for ongoing operations, maintenance and
replacement of the city's water system, as well
as establish an adequate operating reserve.
^ CITY Of
CARLSBAD
Residential water rates
Single-family and multi-family residential rates
are grouped into tiers, with the first tiers having
the lowest per unit rate and the second and
third tiers having incrementally higher rates.
The proposed water rate increase for January 1,
2012, will raise the monthly water charge for a
typical single family household with a 5/8 inch
meter and using 12 units of water, by $5.04
(from $50.40 to $55.44). The exact amount of
the increase will vary among customers
depending on actual water usage. The
proposed increase for January 1, 2013 will raise
the monthly water charge from $55.44 to
$61.02 ($5.58). Proposed water rates are
shown on the table to the right.
Commercial, agriculture, recycled
and irrigation water rates
Non-residential customers have different water
usage needs than residential customers;
therefore, the usage charge is a flat per unit
rate rather than a tiered rate. The delivery
charge is also a flat rate based on meter size.
Proposed non-residential rates are also shown
on the table to the right.
1/1/2012 1/1/2013
Current Proposed Proposed
Monthly Delivery Charge: 1096 10%
• Meter Size:
5/8" $ 18.00 $ 19.80 $ 21.78
3/4" $ 22.70 $ 24.97 $ 27.47
l" $ 32.43 $ 35.67 $ 39.24
1.5" $ 56.90 $ 62.59 $ 68.85
2" $ 86.08 $ 94.69 $ 104.16
2.5" $ 124.41 $ 136.85 $ 150.54
3" $ 163.91 $ 180.30 $ 198.33
4" $ 251.47 $ 276.62 $ 304.28
6" $ 494.97 $ 544.47 $ 598.92
8" $ 786.83 $ 865.51 $ 952.06
10" $ 1,127.62 $1,240.38 $ 1«364.42
Usage Charges (i unH L = 748 gallons): 10% 10%
jSingle-Family Rates
Tier 1 (0-12 units) $ 2 . 70 $ 2.97 $ 3.27
Tier 2 (13-20 units) $ 3.48 $ 3.83 $ 4.21
Tier 3 (21+ units) $ 4.74 $ S.21 $ 5.73
Multi-Family Rates
Tier 1 (0-5 units) $ 2.28 $ 2.51 $ 2.76
Tier 2 (6-10 units) $ 2.57 $ 2.83 $ 3.11
Tier 3 (11+ units) $ 3.06 $ 3.37 $ 3.71
Commercial, Agriculture and Irrigation Rates
Non-resldentiai $ 3.12 $ 3.43 $ 3.77
Agricultural Rates $ 3.12 $ 3.43 $ 3.77
irrigation Rate $ 3.50 $ 3.85 $ 4.24
Recycled Water $ 2.97 $ 3.27 $ 3.60
o
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Proposed Sewer Increases
Residential customers pay a flat monthly
charge for sewer services while most non-
residential customers pay a rate per volume of
water usage. The proposed sewer rate
increases are 6.5% and 6.0% beginning January
1, 2012 and January 1, 2013, respectively. The
proposed rate increases are needed to
generate sufficient revenue for recovering
costs associated with operations, maintenance
and replacement of aging or failing
infrastructure, as well as establishing and
maintaining an adequate operating reserve.
Two Year IVlaximum Rate Increases
1/1/2012 1/1/2013
Current Proposed Proposed
Groups (1 through VI) 6.5% 6.0%
Flat monthly charge;
1 - Residential $23.03 $24.53 $26.00
Per unit of water used:
1 - Multi-family $2.65 $2.82 $2.99
II - Commercial $2.16 $2.30 $2.44
III - Commercial $3.28 $3.49 $3.70
iV - Commercial $6.08 $6.47 $6.86
V - Other Institutional $2.06 $2.19 $2.32
VI - Bio-Hydration Research
Lab Inc. $1.87 $1.99 $2.11
Per student;
V - Elementary school $0.47 $0.50 $0.53
V - Junior high school $0.70 $0.74 $0.78
V - High school $0.94 $1.00 $1.06
V - Boarding school $4.90 $5.22 $5.53
The proposed rates, if adopted, will
become effective January 1, 2012
and January 1, 2013.
Sample of Maximum Rate Increases
(*) The sample rate calculation is based on a single
family home with a 5/8 inch meter using 12 units of
water per month.
(*•) Trash rate Increases are not being considered as
part of this action. The trash rates shown in the
table above are based on the existing rates and are
subject to changes in future years based on subse-
quent actions by the city council.
For more information about the public hearing
process or the proposed water and sewer rate
increases, call 760-602-2403, or visit the city's
website at www.carlsbadca.gov/flnance.
Notice of Public
Hearing on
proposed maximum
sewer and water
rate Increases
Current 1/1/2012 1/1/2013
Water (*) $ 50.40 $ 55.44 $ 61.02
Sewer $ 23.03 $ 24.53 $ 26.00 Tuesday
Trash (**) $ 18.87 $ 18.87 $ 18.87 December 6th, 2011
Total $ 92.30 $ 98.84 $ 105.89 at 6pm
Total monthly increase $ 6.54 $ 7.05
Increase percent 7.1% 7.1% City of Carlsbad
City Council Chambers
1200 Carlsbad Village Drive
Carlsbad, CA 92008
The rates for water and sewer service
are proposed to increase. This notice
has information about the proposed
rate increases.
CITY OF
CARLSBAD
PROPOSED RATE INCREASES
WATER
1/1/2013
Current PROPOSED
Delivery Charge 8%
5/8" 19.80 21.38
3/4" 24.97 26.97
1" 35.67 38.52
1.5" 62.59 67.60
2" 94.69 102.27
2.5" 136.85 147.80
3" 180.30 194.72
4" 276.62 298.75
6" 544.47 588.03
8" 865.51 934.71
10" 1,240.38 1,339.61
Single-Family Rates
Tier 1 (0-12ccfs) 2.97 3.20
Tier 2 (13-20ccfs) 3.83 4.13
Tier 3 (21+ ccfs) 5.21 5.62
Multi-Family Rates
Tier 1 (0-5ccfs) 2.51 2.71
Tier 2 (6-lOccfs) 2.83 3.05
Tier 3 (11+ ccfs) 3.37 3.64
Commercial/Non-Residential 3.43 3.70
Agricultural Rates 3.43 3.70
Irrigation Rate 3.85 4.15
Recycled Water 3.27 3.53
SEWER
1/1/2013
CURRENT PROPOSED
6.5% 2.0%
Group 1 -Residential (Flat Monthly Charge) 24.53 26.00
Group 1 -Multi-Family (per ccf of water usage) 2.82 2.99
Group II -Commercial (per ccf of water usage) 2.30 2.44
Group ill - Commercial (per ccf of water usage) 3.49 3.70
Group IV - Commercial (per ccf of water usage) 6.47 6.85
Group V - Other Institutional (per ccf of water usage) 2.19 2.32
Group V - Elementary School (per student) 0.50 0.53
Group V - Junior High School (per student) 0.74 0.78
Group V - High School (per student) 1.00 1.06
Group V - Boarding School (per student) 5.22 5.53
Group VI - Bio-Hydration Research Lab Inc. (per ccf) 1.99 2.11
Table showing single family monthly utility
bill for a household using 12 units of water.
WATER
SEWER
TRASH
TOTAL
Increase $
Increase %
(3S
Setting Water and Sewer
Rates
November 27, 2012
Calendar
December 6, 2011: Held Public Hearing
Set rates – 2 years
January 1: Effective Dates
(2012 & 2013)
Rate setting objectives
•Increasing cost of water / MWD and SDCWA
•Fund the replacement reserve
–Maintain and replace aging infrastructure
•Achieve minimum 30% operating reserve by 2014/15
–Emergencies
–Rate Stabilization
Two Year Rate Increases
Water Rates:
January 1, 2012 – increase 10.0%
January 1, 2103 – increase 10.0.%
Sewer Rates:
January 1, 2102 – increase 6.5%
January 1, 2013 – increase 6.0%
January 1, 2013 Revised Rates
Water Rates:
Original: January 1, 2013 – increase 10.0.%
Revised: January 1, 2013 – increase 8.0%
Sewer Rates:
Original: January 1, 2013 – increase 6.0.%
Revised: January 1, 2013 – increase 2.0%
Proposed Water Rate Increase
January 1, 2013
Delivery Charge - Residential
•Current Rate - $19.80 per month
•1/1/2013 rate - $21.38 per month
Commodity Charge – Residential (*)
•Current Rate - $2.97 per unit
•1/1/2013 rate - $3.20 per unit
(*) First 12 units per month
Proposed Water Rate Increase
Non-residential
01/01/2013
Current PROPOSED
Commercial/Non-Residential 3.43$ 3.70$
Agricultural Rates 3.43$ 3.70$
Irrigation Rate 3.85$ 4.15$
Recycled Water 3.27$ 3.53$
WATER
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Comparison with other agencies
(monthly charge using 12 units of water)
Sewer Rates – Increasing 2%
Residential Sewer Rates
•Monthly flat charge from $24.53 to $26.00
Non-Residential Sewer Rates
Minimum monthly rate
Based on flow and wastewater strength characteristics
Comparison with other agencies
Impact to Average Monthly Resident
Questions ~ Comments
CMWD Board of Directors
Adopt Resolution No. 1454
January 1, 2013 – changing the water rate
increase to 8%
Carlsbad City Council
Adopt Resolution No. 2012-263
January 1, 2013 – changing the sewer rate
increase to 2%
END