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Home My WebLink About1991-06-25; Municipal Water District; 114; Fixing Rates for Water Supplied by CMWDCARLSBAD IV?a’NICIPAL WATER DISTRICT - YGENDA BILL DEPT. Admi n. FIXING RATES FOR WATER SUPPLIED BY CARLSBAD MUNICIPAL WATER DISTRICT RECOMMENDED ACTION: Hold public hearing and adopt Resolution No. 735 Fixing Rates for Water Supplied by the Carlsbad MunicipaJ Water District ITEM EXPLANATION The price of water supplied by the Carlsbad Municipal Water District is currently $1.01 per unit (748 gallons). If converted to a cost per gallon, the price would be $.0014 (fourteen hundredths of a cent). There are a number of factors that go into the development of the retail water rates. The most significant portion is the wholesale price of water charged to the District by the San Diego County Water Authority. Presently, the Authority’s charges, which include the costs incurred by the Metropolitan Water District, comprise 62% of the current retail rate. The second most significant portion of the water rate funds District operations. These expenses include personnel and other operating costs associated with the distribution of the water supply. These costs attribute to approximately 25% of the water rate. Lastly, the District funds depreciation of 1 the water system with the remaining 13% of the rate. Current Retail Cost per Rate Components Acre Foot SDCWA Costs $277.00 District Operations 108.90 Depreciation 56.63 Total $442.53 Cost per Unit $0.63 0.25 0.13 $1.01 An increase in the three components of the retail rate is being recommended. The rates charged by the San Diego County Water Authority are scheduled to increase on July 1, 1991. The cost per acre foot will be increasing to $323.00 per acre foot. This is an increase of 16.6%. ’ In addition, an increase is recommended in the retail water rates to cover District operating expenses for fiscal year 1991-92. The recommended increase is an additional $.Ol per unit for the upcoming fiscal year. This would change the current $0.25 per unit charge to $0.26. The replacement of reservoirs, pipelines and other assets is also funded through the water rate. The recommended increase for this component is $.02 per unit, or a total cost of $0.15. The methodology used in the development of the proposed $1.15 rate is as follows: . proposed Retail Cost per Cost per % Rate Components Acre Foot Unit Increase SDCWA Costs $323.00 $0.74 16.6 District Operations 113.00 0.26 4.0 Depreciation 65.34 0.15 15.3 Total $501.34 $1.15 13.8 The retail rates charged by the District have not been increased since July 1989. Historical information regarding the District’s retail rates is as follows: Carlsbad Municipal Water District Water Rate History -‘I960 ‘1965 ‘1970 ‘1976 ‘1980 Charge per Unit ‘1986 ‘91 - Retail Water Rates 1 unit - 748 gallon* Any increases in the retail rate will have a corresponding effect on the District’s inclining block water rate structure. FISCAL IMPACT Retail water rates must be increased to cover the wholesale increases from the Authority or an annual shortfall would exist that amounts to $690,000 for 1991-92. These additional costs are being assessed by the Authority for their budgetary needs. The other two components, District operations and depreciation, are under the direct control of the District Board and Staff. Increases in the budget for the upcoming fiscal year can be adequately funded through the increase in the operating portion of the rate. The additional revenue generated annually would be approximately $65,000. The District has a mechanism in which to fund the replacement of District assets as its useful life expires. The additional revenue of $130,000 annually would ensure adequate funds are available for this purpose. The cumulative effect of the increase is $885,000 during 1991-92. EXHIBITS 1. Resolution No. 735 Fixing Rates for Water Supplied by the Carlsbad Municipal Water District RESOLUTION NO. 735 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT FIXING RATES OF WATER SUPPLIED BY THE CARLSBAD MUNICIPAL WATER DISTRICT 6 WHEREAS, the San Diego County Water Authority is increasing the wholesale cost of 7 by over 16% for the 1991-92 fiscal year to cover its expenses; and a WHEREAS, the District will also require an increase in its component of the retail water 9 rate to fund the programs and projects for the 1991-92 fiscal year; and 10 WHEREAS, the Board of Directors of the CARLSBAD MUNICIPAL WATER J-l DISTRICT has determined that a revision of the charges for water delivery is necessary. 12 NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE CARLSBAD 13 MUNICIPAL WATER DISTRICT HEREBY RESOLVE THAT: 14 15 Effective July 15, 1991, the rate charged for water supplied by the District shall be set 16 at $1.15 per unit. 17 ADOPTED, SIGNED AND APPROVED this 2zday of June , 1991. ia 19 20 21 AYES: Board Members Lewis, Kulchin, Larson, and Stanton NOES: None 22 23 ABSENT: Board Member Nygaard 26 6 Aletha L. Rautenkranz, Secretary 27 28 Claude A. Lewis, President . Carlsbad Journal Decreed A Legal Newspaper by the Superior Court of San Diego County Mail all correspondence regarding public notice advertising to W.C.C.N. Inc. P.O. Box 230878, Encinitas, CA 92023-0878 (619) 753-6543 Proof of Publication STATE OF CALIFORNIA, ss. COUNTY OF SAN DIEGO, I am a citizen of the United States and a resident of the county aforesaid; I am over the age of eighteen years, and not a party to or interested in the above entitled matter. I am principal clerk of the printer of the Carlsbad Journal, a newspaper of general circulation, published weekly in the City of Carlsbad, County of San Diego, State of California, and which newspaper is published for the dissemination of 1ocaI news and intelrigence of a genera1 character, and which newspaper at all times herein mentioned had and still has a bona fide subscription list of paying subscribers, and which newspaper has been established, printed and published at regular intervals in the said City of Carlsbad, County of San Diego, State of California, for a period exceeding one year next preceding the date of publication of the notice hereinafter referred to; and that the notice of which the annexed is a printed copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the follow- ing dates, to-wit: NOTICE OF : PUBLIC HEARING : REVISING WATER RATES NOhi it3 HEREBY GIVEN & the Board ofDirectors of the earls- bsd Yunieiprd Water District (Dis- trict) will be holding s public be& ing rt the Ckrlsbrd City Council Cbsmbers, 1200 Cerisbad Vilkge Drive (formerly Elm Avenhe), Carlnbad. Calltotnta. at 6:oO PM., on Tuesday. June 25, lO@l. to &~ti- aider IUI increw& in the District’s June 13 19 91 ‘19- w&x rites. Tbe proposed rate ip- crease is required to fund in. cnmt4s in the pistrict’s operating costs for flscsl w3sr ieeI42 ’ Ifyou b4ve aiy questtonr mg~~rd- ieg this matter, please call the D++ trict omce at 43&zlz3: Ifyou cfiallinge the prohosed: &- tlon menttond above in court, you my& li@tqd to raising only Nose ikruer raised by Jiou of she&e else at the public hearing ,de scribed IE thin notice, or deliver&I to tbe City of Csrlsbad, City Cletk’s Office at or prior to the put+ hearing * / Applicmt: Cerlsbad Municipal: I water District n BOABD OF DmCTOB.5 “3 q.4rumm I~uNICIPAL: 1 WATER DISTBICT ’ CJ 666% Jude 13,l$Ql 19- 19- 19- I certify under penalty of perjury that the foregoing is true and correct. Executed at Carlsbad, County of San Diego, State of Cali- fornia on t.he 13th day of June ,- J991 ,’ Clerk of the Printer .- NOTICE OF PUBLIC HEARING REMSING WATER RATES NOTICE IS HEREBY GIVEN that the Board of Directors of the Carlsbad Municipal Water * District (District) will be holding a public hearing at the Carlsbad City Council Chambers, 1200 Carlsbad Village Drive (formerly Elm Avenue), Carlsbad, California, at 6:00 p.m. on Tuesday, June 25,1991, to consider an increase in the District’s water rates. The proposed rate increase is required to fund increases in the District’s operating costs for fiscal year 1991-92. If you have any questions regarding this matter, please call the District Office at 438-2722. If you challenge the proposed action mentioned above in court, you may be limited to raising only those issues raised by you or someone else at the public hearing described in this notice, or delivered to the City of Carlsbad, City Clerk’s Office at or prior to the public hearing. APPLICANT: CARLSBAD MUNICIPAL WATER DISTRICT PUBLISH:: June 13, 1991 BOARD OF DIRECTORS CARLSBAD MUNICIPAL WATER DISTRICT . - I REVISING WATER RATES'- NOTICE IS HEREBY GIVEN that the Board of Directors of the Carlsbad Municipal Water District (District) will be holding a public hearing at the Carlsbad City Council Chambers, 1200 Carlsbad Village Drive (formerly Elm Avenue), Carlsbad, California, at 6:00 p.m. on Tuesday, June 25, 1991, to consider an increase in the District's water rates. The proposed rate increase is required to fund increases in the District's operating costs for fiscal year 1991-92. If you have any questions regarding this matter, please call the District office at 438-2722. If you challenge the proposed action mentioned above in court, you may be limited to raising only those issues raised by you or someone else at the public hearing described in this notice, or delivered to the City of Carlsbadw City Cler&office at or prior to the public hearing APPLICANT: Carlsbad Municipal Water District fLOl.lS~ - J- 13, 19p1 ?i3OARD OF DIRECTORS CARLSBAD MUNICIPAL WATER DISTRICT. NOTICE OF PUBLIC HEARING REVISING WATER RATES NOTICE IS HEREBY GIVEN that the Board of Directors of the Carlsbad Municipal Water District (District) will be holding a public hearing at the Carlsbad City Council Chambers, 1200 Carlsbad Village Drive (formerly Elm Avenue), Carlsbad, California, at 6:00 p.m. on Tuesday, June 25,1991, to consider an increase in the District’s water rates. The proposed rate increase is required to fund increases in the District’s operating costs for fiscal year 1991-92. If you have any questions regarding this matter, please call the District Office at 438-2722. If you challenge the proposed action mentioned above in court, you may be limited to raising only those issues raised by you or someone else at the public hearing described in this notice, or delivered to the City of Carlsbad, City Clerk’s Office at or prior to the public hearing. APPLICANT: CARLSBAD MUNICIPAL WATER DISTRICT PUBLISH: June 13, 1991 BOARD OF DIRECTORS CARLSBAD MUNICIPAL WATER DISTRICT