HomeMy WebLinkAbout; ; 2021 Wastewater Rate Study; 2021-10-01City of Carlsbad
Wastewater Cost-of-Service Study
2021WASTEWATER
RATE STUDY
FINAL | October 2021
WASTEWATER COST-OF-SERVICE STUDY | FYE 2021 WASTEWATER RATE STUDY | CARLSBAD
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Contents
Section 1 – Introduction 1
1.1 Study Purpose and Key Drivers 1
1.2 Study Approach 2
1.3 Project Findings and Recommendations 2
Section 2 – Assumptions and Data 6
2.1 Growth and Wastewater Usage 6
2.2 User Rate Categories 7
Section 3 – Revenue Requirement Analysis 8
3.1 Fiscal Policies 8
3.1.1 Fund Policies and Benchmarks 9
3.1.2 Operating Fund 9
3.1.3 Capital Fund 9
3.2 Operating Revenues 10
3.3 Operations and Maintenance Expenditures 10
3.4 Capital Improvement Plan Funding 11
3.5 Recommended Revenue Requirements 12
Section 4 – Cost-of-Service Analysis 15
4.1 Revenue Needs 15
4.2 Functional Allocation 16
4.2.1 Functional Allocation Factors 17
4.2.2 Functional Allocation Results 18
Section 5 – Rate Design Analysis 21
5.1 Customer Characteristics 21
5.1.1 Customer Class Loading and Allocation 23
5.2 Rate Design 24
5.2.1 Class Unit Costs per HCFDischarges 25
5.2.2 Customer Class Rate Calculations 26
5.2.3 Proposed Rates 27
Section 6 – Rate Comparison 30
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Appendices
Appendix A PROJECTED O&M – OPTION 1
Appendix B PROJECTED O&M – OPTION 2
Appendix C CAPITAL IMPROVEMENT PLAN
Appendix D REVENUE REQUIREMENT ANALYSIS –OPTION 1
Appendix E REVENUE REQUIREMENT ANALYSIS –OPTION 2
Appendix F FUNCTIONAL ALLOCATION – OPTION 1
Appendix G FUNCTIONAL ALLOCATION – OPTION 2
Appendix H OPTION 2 RATE CALCULATIONS
Appendix I PROJECTED FLOW AND LOADS
Tables
Table1 Option 1: Proposed Wastewater Rates by Customer Class 3
Table2 Option 2: Proposed Wastewater Rates by Customer Class 4
Table3 Escalation Factors 6
Table4 Current Rate Revenues ($ millions)10
Table5 Offsetting Revenues ($ millions)10
Table6 Operating Expenditures ($ millions)10
Table7 Capital Improvement Plan Expenditures ($ millions)11
Table8 Capital Improvement Plan Funding ($ millions)12
Table9 Rate Revenue Increase Options 13
Table 10 Option 1 Revenue Requirement Summary ($ millions)13
Table 11 Option 2 Revenue Requirement Summary ($ millions)14
Table 12 Expenditures and Offsetting Revenues (in millions)15
Table 13 Functional Allocation Factors 17
Table 14 CIP Functional Allocation ($ millions)19
Table 15 O&M Functional Allocation ($ millions)19
Table 16 Revenue Requirements Functional Allocation ($ millions)20
Table 17 Loading Assumption by Class 23
Table 18 Billed Units by Customer Class for FY 2021/22 23
Table 19 Unit Costs per Billable Constituents 24
Table20 Group I Unit Cost per HCF Calculation 25
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Table21 All Classes Unit Cost per HCF Calculation 25
Table22 Group I Monthly Rate Calculation 26
Table23 Rates per HCF of Water Consumption Calculation 26
Table24 Schools Rates Calculation 27
Table25 Option 1: Proposed Wastewater Rates by Customer Class 27
Table26 Option 2: Proposed Wastewater Rates by Customer Class 29
Figures
Figure 1 Wastewater Rate Setting Processes 2
Figure 2 Regional Monthly Single-Family Residential Rate Comparison 30
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Abbreviations
BOD Biological Oxygen Demand
Carollo Carollo Engineers, Inc.
CDFA California Department of Food and Agriculture
CEC California Energy Commission
cf cubic feet
CIP Capital Improvement Plan
CPUC California Public Utilities Commission
DWR Department of Water Resources
EDU Equivalent Dwelling Unit
EWA Encina Wastewater Authority
EWPCF Encina Water Pollution Control Facility
HCF Hundred cubic feet
MFR Multi-Family Residential
mgd million gallons per day
O&M Operation and maintenance
SDU Second dwelling unit
SFR Single Family Residential
SWRCB State Water Resources Control Board
TSS Total Suspended Solids
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Section 1 –Introduction
The City of Carlsbad owns a wastewater system that provides wastewaterservice to roughly two thirds (2/3)
of the City’s population and is responsible for the collection and conveyance of sewer discharges to the
Encina Water Pollution Control Facility (EWPCF). The EWPCF is jointly owned by the cities of Carlsbad,
Vista, Encinitas, the Buena Sanitation District, Vallecitos Water District, and Leucadia Wastewater District
and provides full secondary treatment, sludge handling, and disposal through a deep ocean outfall that
extends along the ocean floor to a point 1.5 miles offshore.
The City’s wastewater service customer base includes approximately 26,600 sewer accounts, consisting of
single family residential, multi-family residential, commercial, other, breweries, industrial, and schools. The
City maintains a separate wastewater enterprise fund with its own operating and capital reserves. The
wastewater user rates are designed to distribute the cost of the operation and improvement of the City’s
collection system and the City’s share ofthe EWPCF equitably among all users in accordance with California
legal requirements as defined by Proposition 218.
1.1 Study Purpose and Key Drivers
Carlsbad retained Carollo Engineers, Inc. (Carollo) to perform a comprehensive Cost-of-serviceStudy
(Study) of the City’s potable water, recycled water, and wastewater systems and to develop a rate plan for
the upcoming five-year period, Fiscal Year Ending (FYE) 2022 through FYE 2026.The City has historically set
rates on a calendar year basis and will continue to do so through the study period. The first increase based
on this study will be delayed by two months and implemented on March 1, 2022. Subsequent increases will
be implemented on January 1 of each year.
Carollo’s analysis was guided by the policies and practices of the City, industry best practices for cost-of-
service analyses as outlined by the Water Environment Federation (WEF) Manual of Practice No. 27
“Financing and Charges for Wastewater Systems”, and requirements for establishing wastewater rates
within the State of California. The findings and recommendations of the cost-of-service and rate analysis for
wastewaterare detailed within this report. The findings of the cost-of-service analysis for potable and
recycled water are provided by Carollo in a separate report.
Several issues influence the need to conduct a comprehensive cost-of-service rate design study. Identifying
these issues upfront defines the strategic intent needed to complete this project successfully. These issues
include the following:
The State of California requires that all utility rates meet the cost-of-service requirements imposed
under Proposition 218. These principles underlie the approach to rate setting such that all customers
are charged rates that are proportional to the cost of providing service attributable to a parcel based
on the demands that each customer class places on the system.
Although there are others, the main factor driving the need for increased rate revenues for this
COSS is funding of the capital improvement plans (CIP). Based on current projections, the City and
the EWPCF haveidentified a total of $88 million (2021 dollars) in necessary capital improvements
over the next 5 years. The City’s share of the EWPCF projects is expected to total approximately half
of the City’s total CIP expenses over this time period.
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1.2 Study Approach
Rate analyses are typically performed periodically so that revenues from rates adequately fund utility
operations and maintenance (O&M) and capital investments. Additionally, in California, wastewater rates
must adhere to the cost-of-service requirements imposed by the State Constitution. California Constitution
article XIII D, Section 6 (Article XIII D) requires that property-related fees and charges, including wastewater
rates, do not exceed the reasonable and proportional cost of providing the service.
To achieve these requirements, a comprehensive rate study typically consists of the following progression of
three interconnected processes.
Figure 1 Wastewater Rate Setting Processes
1.3 Project Findings and Recommendations
Based on the analysis projections, the City will need to increase wastewater rate revenues to implement
identified capital improvement projects within the collection system and at the EWPCF, and to a lesser
extent to keep pace with inflationary increase to O&M costs. While the use of reserves to fund a share of
capital projects will help to mitigate the necessary level of rate increases, significant rate increases will still
be requireddue to the magnitude of the capital improvements that are necessary. It is recommended that
the City reviewsits revenues and expenditures on an annual basis to verify that the implemented rates are
adequately recovering costs.
The key findings and recommendations are as follows:
Proposed Rate Increases.Given the need for large rate increases, two increase implementation
options have been developed. The first option (Option 1) would spread the large increases out over
three years and would include annual user rate revenue increases of 20 percentfor each of the first
three years of the study period (FYE 2022 through FYE 2024)and 4 percent in the last two years
(FYE 2025 and FYE 2026). The second option, Option 2 would include a single large increase of
50 percentin FYE 2022 followed by 4percentannual increases thereafter. A third and a fourth
implementation strategy would be to adopt only 2 years of increases at this time, equal to those of
Option 1 or Option 2, and reevaluate the need for further increases after FYE 2023.
Revenue Requirement Analysis
•Compares existing revenues of the utility to its operating, capital, and policy
driven costs to establish the adequacy of the existing cost recovery levels.
Cost-of-service Analysis
•Identifies and apportions annual revenue requirements to functional rate
components based on its application of the utility system.
Rate Design Analysis
•Considers both the level and structure of the rate design to collect the distributed revenue requirements from each class of service.
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Because Option 2 would increase rate revenues higher in the first year, rather than the smoothed
ramp-up in Option 1, Option 2 would generate more funding for capital over the next three years,
while resulting in lower ultimate rates than Option 1. In Option 1, rate revenue increases would
generate $13.7 million for capital funding through FYE 2024 and result in a monthly single family
rate of $51.74 for that year. Over the same time period, Option 2 rate revenue increases would
generate $18.2 million for capital funding and result in a single family rate of $48.57 in FYE 2024.
Retain the Current Rate Structure.The proposed user rates largely retain the City’s current rate
structure and will include a cost-of-service adjustment in FYE 2022 (implemented on March 1, 2022)
based on the updated cost-of-service allocations followed by across the board increases in FYE 2023
through FYE 2026 (implemented on January 1 of each year.
Minimum Operating Reserve.It is recommended that the City continues to complete financial
planning based on the current operating reserve practice that sets a minimum operating reserve of
40 percent of annual operating expenses. However, given the identified CIP, the fund balance is
projected to temporarily drop below this level in each of the implementation options.
-Under Option 1, the operating fund balance would be drawn down to just above the 40 percent
target in FYE 2023 and remain slightly above the target through the end of the study period. In
FYE 2026 approximately $3.2 million would be available within the replacement fund.
-Under Option 2, the operating fund balance would be drawn down to just above the 40 percent
target in FYE 2023 and remain slightly above the target through the end of the study period. In
FYE 2026 approximately $4.7 million would be available within the replacement fund.
Table1 outlines the calculatedwastewater charges for FYE 2022 through FYE 2026 for Option 1.
Table 1 Option 1: Proposed Wastewater Rates by Customer Class
Customer Class Current
Rate
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026
20.0%
w/COS(1)20.0%(2)20.0%(2)4.0%(2)4.0%(2)
Group I - Residential - Monthly Flat Rate
Single Family Resident (SFR) $29.52 $35.93 $43.11 $51.74 $53.80 $55.96
SFR w/ Second Dwelling Unit $44.28 $53.89 $64.67 $77.60 $80.70 $83.93
Group I - Residential - Rates per HCF
Multi Family Resident (MFR)
(per HCF)$3.48 $4.13 $4.96 $5.95 $6.19 $6.43
Mobile Home (per HCF)$3.48 $4.13 $4.96 $5.95 $6.19 $6.43
Commercial - Rates per HCF
GROUP II - Commercial 2 $2.88 $3.51 $4.21 $5.06 $5.26 $5.47
GROUP III - Commercial 3 $4.38 $5.01 $6.01 $7.21 $7.50 $7.80
GROUP IV - Commercial 4 $8.10 $8.76 $10.51 $12.61 $13.12 $13.64
Industrial Pretreatment Class III $4.82 $5.66 $6.79 $8.14 $8.47 $8.81
Group V - School - Monthly Rates per Student
Elementary School (per student)$0.59 $0.71 $0.85 $1.02 $1.06 $1.10
Junior High School (per student) $0.87 $1.06 $1.27 $1.53 $1.59 $1.65
High School (per student)$1.17 $1.41 $1.69 $2.03 $2.11 $2.20
Boarding School (per student) $6.09 $7.34 $8.80 $10.56 $10.99 $11.42
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Customer Class Current
Rate
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026
20.0%
w/COS(1)20.0%(2)20.0%(2)4.0%(2)4.0%(2)
Breweries -Rates per HCF
B1 – Brewery without a
restaurant and hauls waste for
outside treatment
$2.88 $3.51 $4.21 $5.06 $5.26 $5.47
B2 – Brewery without a
restaurant that does not haul
waste for outside treatment
$9.34 $9.76 $11.72 $14.06 $14.62 $15.21
B3 – Brewery with a restaurant
and hauls waste for outside
treatment
$8.10 $8.76 $10.51 $12.61 $13.12 $13.64
B4 – Brewery with a restaurant
that does not haul waste for
outside treatment
$11.60 $12.04 $14.45 $17.34 $18.04 $18.76
Other - Rate per HCF $2.97 $3.43 $4.12 $4.94 $5.14 $5.35
Note:
(1)Proposed rates for FYE 2022 include a cost-of-serviceadjustment and increases for specific rates vary from the 20.0-percent overall rate
revenue increase.
(2)Proposed rates for FYE 2023 and subsequent years are calculated by applying the proposed overall rate revenue increase to the FYE 2022 rate
proportionally.
Table2 outlines the calculated wastewater charges for FYE 2022 through FYE 2026 for Option 2.
Table 2 Option 2: Proposed Wastewater Rates by Customer Class
Customer Class Current
Rate
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026
50.0%
w/COS(1)4.0%(2)4.0%(2)4.0%(2)4.0%(2)
Group I - Residential - Monthly Flat Rate
Single Family Resident (SFR) $29.52 $44.91 $46.71 $48.57 $50.52 $52.54
SFR w/ Second Dwelling Unit $44.28 $67.36 $70.06 $72.86 $75.77 $78.80
Group I - Residential - Rates per HCF
Multi Family Resident (MFR)
(per HCF)$3.48 $5.16 $5.37 $5.59 $5.81 $6.04
Mobile Home (per HCF)$3.48 $5.16 $5.37 $5.59 $5.81 $6.04
Commercial - Rates per HCF
GROUP II - Commercial 2 $2.88 $4.39 $4.57 $4.75 $4.94 $5.13
GROUP III - Commercial 3 $4.38 $6.26 $6.51 $6.77 $7.04 $7.32
GROUP IV - Commercial 4 $8.10 $10.95 $11.39 $11.84 $12.32 $12.81
Industrial Pretreatment Class III $4.82 $7.07 $7.35 $7.64 $7.95 $8.27
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Customer Class Current
Rate
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026
50.0%
w/COS(1)4.0%(2)4.0%(2)4.0%(2)4.0%(2)
Group V - School - Monthly Rates per Student
Elementary School (per student)$0.59 $0.88 $0.92 $0.96 $0.99 $1.03
Junior High School (per student) $0.87 $1.32 $1.38 $1.43 $1.49 $1.55
High School (per student)$1.17 $1.76 $1.84 $1.91 $1.98 $2.06
Boarding School (per student) $6.09 $9.17 $9.54 $9.92 $10.31 $10.73
Breweries -Rates per HCF
B1 – Brewery without a
restaurant and hauls waste for
outside treatment
$2.88 $4.39 $4.57 $4.75 $4.94 $5.13
B2 – Brewery without a
restaurant that does not haul
waste for outside treatment
$9.34 $12.20 $12.69 $13.20 $13.73 $14.28
B3 – Brewery with a restaurant
and hauls waste for outside
treatment
$8.10 $10.95 $11.39 $11.84 $12.32 $12.81
B4 – Brewery with a restaurant
that does not haul waste for
outside treatment
$11.60 $15.05 $15.66 $16.28 $16.93 $17.61
Other - Rate per HCF $2.97 $4.29 $4.47 $4.65 $4.83 $5.02
Note:
(1)Proposed rates for FYE 2022 include a cost-of-serviceadjustment and increases for specific rates vary from the 50.0-percent overall rate
revenue increase.
(2) Proposed rates for FYE 2023 and subsequent years are calculated by applying the proposed overall rate revenue increase to the FYE 2022 rate
proportionally.
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Section 2 –Assumptions and Data
Financial, operational, and billing information provided by the Cityserve as the backbone of the revenue
requirement and cost-of-service analysis. The projections developed for this analysis are based on several
sources of information including the budgeted revenues and expenditures for FY 2021/22, actual revenues
and expenditures from several prior fiscal years, EWPCF charge records, and other pertinent information.
The analyses were completed by adding supplementalinformation and calculations to the City’s existing
financial model.
2.1 Growth and Wastewater Usage
The escalation factors used in this analysis are based on a review of both long-term and recent cost
escalation factors from the Engineering News-Record Index, an industry benchmarking resource, and based
on input from Carlsbad staff based on realized cost escalations. Other costs were escalated based on recent
and specific cost trends. A customer growth escalation factor, used to project revenues, wastewater
accounts, and wastewater discharge,is included based on the City’s planning growth estimates. These
factors are presented in Table 3.
Table 3 Escalation Factors
FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
General Inflation 2.5%2.5%2.5%2.5%2.5%
Labor Inflation 3.0% 3.0% 3.0% 3.0%3.0%
Labor - PERS (Normal Cost) 13.2%13.2%13.2%13.2%13.2%
Labor -Health Insurance 15.7% 16.5% 16.7% 17.0% 16.8%
Chemicals Inflation 7.1%6.9%6.6%6.4%6.1%
Utilities Inflation 2.5% 2.5% 2.5% 2.5% 2.5%
Construction Inflation 3.5%3.5%3.5%3.5%3.5%
Property Tax Increase 2.5% 2.5% 2.5% 2.5% 2.5%
Depreciation Funding 1.2%1.2%1.2%1.2%1.2%
Interest Earnings 1.9% 2.1%2.3%2.5% 2.5%
Customer Growth 0.5%0.3%0.6%0.2%0.7%
General Inflation + Customer Growth 3.0% 2.8% 3.1% 2.7%3.2%
No Annual Increase 0.0%0.0%0.0%0.0%0.0%
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2.2 User Rate Categories
Carlsbad classifies its wastewater customers as follows:
Group I
-Single family residential (SFR)
-Single family residential with second dwelling unit
-Mobile Home
-Multi-Family Residential
Group II -Commercial 2
Group III -Commercial 3
Group IV -Commercial 4
Group V-Schools
-Elementary Schools
-Junior High Schools
-High Schools
-Boarding Schools
Group VI -Large volume (no accounts)
Breweries
-B1 – Brewery without a restaurant and hauls waste for outside treatment
-B2 –Brewery without a restaurant that does not haul waste for outside treatment
-B3 –Brewery with a restaurant and hauls waste for outside treatment
-B4 –Brewery with a restaurant that does not haul waste for outside treatment
Industrial pretreatment class III
SFRcustomers are charged a fixed monthly fee. SFR with a second-dwelling unit (SDU) has ahigher fixed
monthly fee to account for the additional discharges associated with the SDU as compared to a normal SFR
account.All commercialgroups and group VI customers are subject to a volumetric charge based on water
usage. Schools are charged based on the number of students, as that influences a school’s impact on the
wastewater system.
Thevolumetric chargesvary between customer classes based on each class’s assumed flow and loadings.
Wastewater customers’ effluent discharges are not individually metered; instead, each user’s discharges are
estimated using wastewater billing records and/or metered water consumption records and assumed
strength characteristics. The City’s billing system has a detailed listing of historic water consumption by
customer, property use classification, and month.
Commercial customers are grouped intotheGroup II, Group III and Group IV depending on their discharge
characteristics. Customers in the Brewery category are split into separate rate classes based on whether or
not they also operate as a restaurant, and whether theyhaul their brewing waste offsite for treatment.
The Group VI -Large Volume rate category is currently not in use as the only customer in this category is
located outside the service area and no longer has a business presence within the City.
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Section 3 –Revenue Requirement Analysis
The revenue requirement analysis is a comprehensive test of a utility’s fiscal health, scrutinizing the
adequacy of current revenues, and setting the basis for rate planning. It reviews the utility’s revenues,
expenses, debts, and reserve policies, and other requirements assessing the viability of each metric going
forward. Where cash flows and balances are insufficient, the revenue requirement analysis determines the
needed additional cash flows to meet all funding goals.
The City’s FYE 2022 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 City’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 issuances regularly include a
stipulation that the agency maintain sufficient cash flows to cover the planned debt service, plus an
additionalpercentof that debt service, typically between 25 and 40percent. Currently, the City has
no debt and but plans to enter into State Revolving Fund (SRF) loan agreements during the study
period. For planning purposes, these loans are assumed to require debt coverage of 25 percent.
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.
Revenues must be sufficient to satisfy each of the tests. If revenues are found to be deficient through one or
both of the tests, then the greater deficiency (shortfall) drives the rate increase.
3.1 Fiscal Policies
As a part of the Revenue Requirement Analysis,the utility’s fiscal policies were reviewed and evaluated in
relation to capital funding and appropriate levels for the operating, capital and bond reserves. Based on the
results of thisreview, these policies were incorporated within the financial model by tracking fund balances,
interest earnings, use of capacity fees, deposits and withdrawals to funds, and tracking the operating fund as
a way to assess the impacts of adjustments to wastewater rates.
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3.1.1 Fund Policies and Benchmarks
Utility fund policies are intended to be implemented as a measure of safety and security against future
events that may negatively impact the utility’s financial health. Fund balances can address variability and
timing of expenditures and receipts, as well as occasional disruptions in activities, costs, or revenues. The
general objectives of these policies are to facilitate stable and predictable rates and funding sources, along
with equitable recovery of costs from customers as they are being incurred (or accrued). Overall, a utility’s
fund policies are a collection of rules and guidelines. The collective use of individual funds will allow the
utility to minimize its exposure to revenue shortfalls and coverage defaults. The City currently has a
minimum target balance for its operating reserve set at 40percent of annual operating expenditures.
3.1.2 Operating Fund
Carlsbad’s past and current practice has targeted maintaining a minimum balance for utility fundsequivalent
to 40 percentof annual operating expenditures.
The operating fund provides a minimum year-end unrestricted fund balance needed to accommodate the
cyclical nature of revenues and expenses. It provides a “cushion,” which can be used to cover cash balance
fluctuations. This fund is intended to address both anticipated and unanticipated changes in revenues and
expenses. Anticipated changes may include billing and receipt cycles, payroll cycles, and other payables. The
operating fund can be used to meet cash deficiencies due to unanticipated changes in usage, unforeseen
expenditures, or drops in revenues.
The fund’s target balance is characterized as a percentage of annual expenditures set at a level
commensurate to the potential shortfall in revenues, based on the relative volatility of revenues of the
utility’s volume-based rate structure. In general, utilities that recover a significant portion of their costs
through volume charges will experience greater fluctuations in revenues due to seasonal usage patterns and
will face a greater degree of revenue risk than a utility with a flat rate structure. As noted, under Carlsbad’s
current rate structure, single family residential customers and schools are charged a flat monthly charge for
sewer services and all other customers are charged on a volumetric basis.
Carlsbad should prepare itself for potential revenue volatility by maintaining an operating fund balance that
meets or exceeds the minimum target fund balance, as set by utility practices.
3.1.3 Capital Fund
In addition to resources designed to protect against variations in operating costs and revenues, a capital
fund can help meet the cost of capital projects, repairs, replacements, and unexpected emergency capital
outlays. While it would be impractical to reserve against major system-wide failures such as a catastrophic
earthquake (utilities often hold insurance policies for such catastrophic events), it is reasonable and prudent
to identify and quantify possible failures of individual system components.
The City uses system reinvestment as the mechanism to determine capital funding levels. This provides a
relatively stable and predictable source of funding for capital projects. Depreciation is a commonly used
benchmark for system reinvestment. There are three major sources of funding for this capital balance:
capacity fee revenues, interest, and depreciation funding from rates.
In addition to the Operating Fund, the capital fund will be used to meet capital needs and in cash funding a
larger portion of its projected capital repair and replacement program during the study years. This will save
the wastewater utility ratepayers money.
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3.2 Operating Revenues
Operating revenues are projected from budgeted revenues based on the escalation factors shown in Table3.
Table4 shows the projected user rate revenues based on the current rates and prior to the inclusion of any
rate increases for FYE 2022 through FYE 2026. This base level of rate revenue is expected to increase
modestly over the study period based on the expected level of growth in customer accounts.
Table 4 Current Rate Revenues ($ millions)
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026
Commodity Usage $14.01 $14.05 $14.13 $14.15 $14.25
Sewer Pre-Treat $0.02 $0.02 $0.02 $0.02 $0.02
Total Wastewater Rate Revenues $14.03 $14.07 $14.15 $14.17 $14.27
Line or column totals may not tie due to rounding
In addition to above rate revenues, the Cityalso receives other offsetting revenues that can be used to
decrease the amount of revenues needed from user rates. Table5 summarizes the projected offsetting
revenues for the wastewater fund.
Table 5 Offsetting Revenues ($ millions)
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026
Fines & Forfeitures $0.03 $0.03 $0.03 $0.03 $0.03
Income from Prop & Investments(1)$0.08 $0.09 $0.10 $0.11 $0.11
Interdepartmental $0.02 $0.02 $0.02 $0.02 $0.02
Other Revenues $0.07 $0.21 $0.07 $0.07 $0.07
Total Offsetting Revenues $0.19 $0.35 $0.21 $0.23 $0.23
Note:
(1) Includes interest earned on the City’s fund balance based on the Option 1 rate implementation. Option 2 would result in slightly higher
fund balances and therefore slightly higher interest earnings.
Line or column totals may not tie due to rounding
3.3 Operations and Maintenance Expenditures
The cost-of-service analysis utilizes the wastewater fund’s FYE 2022 budget as the basis for forecasting
future revenue needs. O&M expenditures are assumed to increase commensuratewith cost inflation and
projected cost increases associated with increases in wastewater flows due to growth and higher treatment
standards. Revenues and expenses are projected for future fiscal years using the annual escalation factors
shown in Table3. Table6 presents a summary of the projected operating expenditures for FYE 2022 through
FYE 2026.Detailed O&M projections are included in Appendix A for Option 1 and in Appendix B for Option 2.
Table 6 Operating Expenditures ($ millions)
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026
Personnel $2.78 $2.98 $3.09 $3.20 $3.30
Encina (EWPCF) Operations $4.67 $4.80 $4.94 $5.07 $5.24
Maintenance & Equipment $2.23 $1.82 $1.87 $1.93 $1.99
Capital Outlay -----
Replacement Funding $5.30 ----
Projected Debt Service - $0.21 $0.21 $0.21 $0.21
Total Operating Expenses $14.98 $9.80 $10.11 $10.41 $10.73
Line or column totals may not tie due to rounding
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3.4 Capital Improvement Plan Funding
The City completed a wastewater master plan update in 2019 as well as an asset management master plan
and a SCADA master plan. The plans developed capital improvement strategies, and the City has continually
worked to refine the CIP based on project execution timelines, system needs, and funding availability. The
City categorizes its expansion-related projects as ‘connection projects’ and replacement-related projects as
‘replacement projects.’ Along with the City identified collection system projects, the EWPCF expects to
continue its own reinvestment through rehabilitation and replacement projects.
The City has budgeted $33.3 million for 19 replacement projects for the next five years. In addition, there are
projects associated with the EWA's general improvement projects and planned asset replacements totaling
approximately $43.4 million. The City also has budgeted $11.3 million for 10 connection (expansion related)
projects for the next five years. Table7 shows the projected CIP project costs for FYE 2022 through FYE
2026. The funding analysis includes a 3.5percent per year capital cost escalation factor to account for
increases in construction and contracting costs starting in FYE 2023and compounding for each subsequent
year. For example, escalated project costs for FYE 2023 are 3.5 percent higher than the budgeted costs for
that year, escalated costs for FYE 2024 are 7.1 percent higher than the budgeted costs to account for two
years’ of compounded escalation. Project level detail of the CIP is included in Appendix C.
Table 7 Capital Improvement Plan Expenditures ($ millions)
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026
Connection Fee Fund Projects - Collections $1.3 $1.7 $1.4 $3.9 $3.0
Replacement Fund Projects -Collections $6.8 $11.9 $7.0 $4.5 $3.2
Encina Projects $11.8 $7.1 $7.7 $8.5 $8.2
Total Sewer Projects $19.9 $20.7 $16.1 $16.9 $14.4
Total Escalated Cost $19.9 $21.4 $17.2 $18.7 $16.6
Line or column totals may not tie due to rounding
The City frequently adjusts this CIP based on engineering and planning needs for the wastewater system.
Prior to the completion of the sewer master plan and asset management masterplan, the City’s CIP
spending had been limited. However, the City continued to set aside a minimal amount of funds for capital
projects throughout that time in anticipation of increased investments, however, not to the level required by
the sewer master plan. This will provide a source of funds to cover a portion of the CIP. While the use of
reserves to fund a share of capital projects will help to mitigate the necessary level of rate increases,
significant rate increases will still be required due to the magnitude of the capital improvements that are
necessary based on the recommendations of the sewer master plan and on the EWPCF’s CIP needs.
Table8 shows projected sources of funds for capitalprojects as well as the resulting capital funds balance.
Over the next five years, the escalated CIP is projected to total approximately $93.8 million as shown in
Table7. As of July 1, 2021 the City had approximately $29.7 million in available capital funds including the
connection fee and replacement fund balances, leaving approximately $64.1 million in funding needs. As
shown in Table8, these funding needs will be met with a variety of sources including $46.9 million of direct
rate funding (shown in the “Amount to Be Rate Funded” line), $11.0 million in replacement funding transfers
(Transfers and Replacement Funding line), an expected $4.6 million SRF loan, and a small amount of funding
from connection fee revenues and interest earnings. Due to the level of capital spending needed, capital
reserves will be depleted by FYE 2025.
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The projected debt service associated with that loan is included in the “Projected Debt Service” line in
Table6.
Table8 Capital Improvement Plan Funding ($ millions)
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026
Escalated Capital Costs $19.86 $21.41 $17.22 $18.74 $16.57
Amount to be Rate Funded -- $4.64 $10.57 $12.32
Amount to be Funded with Reserves and
Loans $19.86 $21.41 $12.58 $8.17 $4.25
Beginning Capital Funds Balance
(Connection Fee and Replacement)$29.67 $19.77 $12.27 $7.74 $4.11
Transfers and Replacement Funding $9.28 $9.00 $7.74 $4.11 $3.21
Interest $0.33 $0.21 $0.14 $0.10 $0.05
Connection Fees $0.34 $0.11 $0.17 $0.33 $0.10
Loan Proceeds -$4.60 ---
Use of Funds for Projects ($19.86) ($21.41) ($12.58) ($8.17) ($4.25)
Year-End Balance $19.77 $12.27 $7.74 $4.11 $3.21
Change in Capital Reserves $9.90 $7.50 $4.52 $3.64 $0.90
Line or column totals may not tie due to rounding
An important aspect of the capital funding plan is that the Cityintends to draw on both existing replacement
reserves and existing connection fee reserves to fund capital projects. Since the implementation of the City’s
existing connection fees, reduced volumetric discharges due to conservation and changes in planned
developments have reshaped the CIP projects that are necessary to serve new users. While some of the
projects initially conceived and included in the connection fees have changed, other projects have been
modified or expanded to take their place. Further, replacements and upgrades to the City’s existing
infrastructure are required to maintain the assets that serve new users and to maintain the excess system
capacity that will be needed to serve users that have not yet connected to the system. To these ends, the
Cityplans 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 City plans to update their connection
fees in a future study within the next twelve months.
3.5 Recommended Revenue Requirements
Significant rate revenue increases will be necessary in order to meet the City’s projected revenue
requirements, with funding of the capital program as the primary driver.
Given the need for large rate increases, four increase implementation options have been developed. The
first option (Option 1) would spread the large increases out over three years followed by two years of lower
increase. The second Option 2 would implement a single large increase in FYE 2022 followed by 4 years of
lower increases. The calculated rate revenue increases for each option are shown in Table9.The proposed
rate revenue increases for FYE 2022 will be implemented by a full cost-of-service adjustment, and rate
adjustments will vary by customer class. Ongoing increases for 2023 through 2026 will be applied across-
the-board to FYE 2022 cost-of-service-based rates.
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Table 9 Rate Revenue Increase Options
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026
Implementation Option Rate Revenue Increase
Mar. 1, 2022 Jan. 1, 2023 Jan. 1, 2024 Jan. 1, 2025 Jan. 1, 2026
Option 1 20.0%20.0% 20.0% 4.0% 4.0%
Option 2 50.0%4.0%4.0%4.0%4.0%
A third or a fourthimplementation strategy would be to adopt only 2 years of increases at this time, equal to
those of Option 1 or Option 2, and reevaluate the need for further increases after FYE 2023.
Each of the options would allow the City to fund the CIPand, over time, stabilize the wastewater fund
balance. It is recommended that the City continues to complete financial planning based on the current
operating reserve practice that sets a minimum operating reserve of 40percent of annual operating
expenses. However, the magnitude of the CIP will result in reserves falling below that target temporarily.
Under Option 1, the operating fund balance would be drawn down to just above the 40 percent
target in FYE 2023and remain slightly above the target through the end of the study period.In FYE
2026 approximately $3.2 million would be available within the replacement fund.
Under Option 2, the operating fund balance would be drawn down to just above the 40 percent
target in FYE 2023 and remain slightly above the target through the end of the study period.In FYE
2026 approximately $4.7 million would be available within the replacement fund.
Table 10 below summarizes the revenue requirement projection for Option 1. Additional details of the
Option 1 revenue requirement calculations are shown in Appendix D.
Table 10 Option 1 Revenue Requirement Summary ($ millions)
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026
Pre-Rate Increase
Rate Revenues without Increases $14.03 $14.07 $14.15 $14.17 $14.27
Revenue from Previous Years’ Increases -$2.81 $6.23 $10.32 $11.37
Offsetting Revenues $0.19 $0.21 $0.22 $0.23 $0.24
Operating Revenues $14.22 $17.09 $20.59 $24.72 $25.88
Less Operating Expenditures ($14.98) ($9.80) ($10.11) ($10.41) ($10.73)
Less Rate Funded Capital --($4.64)($10.57)($12.32)
Cash Flow Surplus/(Deficit) ($0.76) $7.29 $5.84 $3.74 $2.83
Rate Revenue Increase 20.0%20.0%20.0%4.0%4.0%
Post-Rate Increase
Revenue from Increase $2.81 $3.38 $4.07 $0.98 $1.03
(Less): Rate Increase Delay ($1.87) ($1.69) ($2.04) ($0.49) ($0.51)
Cash Flow Surplus/(Deficit)$0.18 $8.97 $7.87 $4.23 $3.34
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FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026
Operating Fund Reserve
Beginning Operating Fund Balance $8.11 $4.30 $4.28 $4.41 $4.54
Cash Flow $0.18 $8.97 $7.87 $4.23 $3.34
Transfers from Operating to Capital ($3.98)($9.00)($7.74)($4.11)($3.21)
Ending Operating Fund Balance $4.30 $4.28 $4.41 $4.54 $4.68
Ending Capital Fund Balance $19.77 $12.27 $7.74 $4.11 $3.21
Combined Ending Balance $24.07 $16.55 $12.15 $8.64 $7.88
Days of O&M Costs 908 days 629 days 448 days 309 days 273 days
Percent of Operations 28.7% 43.7%43.6% 43.6% 43.6%
Line or column totals may not tie due to rounding
Table 11 below summarizes the revenue requirement projection for Option 2. Additional details of the
Option 2 revenue requirement calculations are shown in Appendix E.
Table 11 Option 2 Revenue Requirement Summary ($ millions)
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026
Pre-Rate Increase
Rate Revenues without Increases $14.03 $14.07 $14.15 $14.17 $14.27
Revenue from Previous Years’ Increases -$7.03 $7.92 $8.82 $9.81
Offsetting Revenues $0.19 $0.21 $0.22 $0.23 $0.24
Operating Revenues $14.22 $21.31 $22.29 $23.22 $24.31
Less Operating Expenditures ($14.98) ($9.80) ($10.11) ($10.41) ($10.73)
Less Rate Funded Capital --($0.22)($5.99)($9.23)
Cash Flow Surplus/(Deficit) ($0.76) $11.51 $11.96 $6.83 $4.36
Rate Revenue Increase 50.0%4.0%4.0%4.0%4.0%
Post-Rate Increase
Revenue from Increase $7.01 $0.84 $0.88 $0.92 $0.96
(Less): Rate Increase Delay ($4.68) ($0.42) ($0.44) ($0.46) ($0.48)
Cash Flow Surplus/(Deficit)$1.58 $11.93 $12.40 $7.29 $4.84
Operating Fund Reserve
Beginning Operating Fund Balance $8.11 $4.30 $4.28 $4.41 $4.54
Cash Flow $1.58 $11.93 $12.40 $7.29 $4.84
Transfers from Operating to Capital ($5.39)($11.95)($12.27)($7.16)($4.70)
Ending Operating Fund Balance $4.30 $4.28 $4.41 $4.54 $4.68
Ending Capital Fund Balance $21.17 $16.64 $12.27 $7.16 $4.70
Combined Ending Balance $25.47 $20.92 $16.68 $11.70 $9.38
Days of O&M Costs 961 days 796 days 615 days 419 days 325 days
Percent of Operations 28.7% 43.7%43.6% 43.6% 43.6%
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 (COS) analysis is to provide a rational basis for distributing the full costs of
wastewaterservice to each customer in proportion to the demands they place on the system. The COS
analysis yields an appropriate method for allocating costs, which could be continued until substantial
changes in cost drivers or customer flow or loading patterns occur.
Using a COS analysis, user rates are developed to allocate O&M, debt service, and rehabilitation and
replacement costs to system users. Allocating costs begins by developing unit costs for each billable
constituent: treatment flow, biological oxygen demand (BOD), total suspended solids (TSS), and collections
flow. Unit costs are then applied to the flow and loading of each customer category in order to allocate the
costs to each customer. The City’s current rate structure was developed using a COS analysis. The overall
procedure used to develop the user rates is as follows:
Revenue Needs.Define the annual revenue that must be recovered from user rates and permit users.
Functional Allocation.Determine thepercentage allocation of O&M and capital costs to the billable
constituents:treatment flow, BOD, TSS, and collection flow.
Unit Costs.Develop unit costs for each billable constituent by dividing the total cost allocated to
that constituent by the total wastewater flow or loadings of that constituent.
Customer Category Rates.Calculate customer rates based on each customer type’s wastewater
discharge characteristics.
Note:The cost-of-serviceanalysis values presented and discussed in this section are based on the Option 1 rate
revenue increase implementation strategy outlined in the previous section. The calculation tables based on the
Option 1implementation strategy are included for reference in AppendixF.The calculation tables based on the
Option 2 implementation strategy are included for reference in AppendixG.
4.1 Revenue Needs
The revenue needs are defined as the amount of revenues that must be recovered through user rates and
industrial user rates in order to cover annual expenditures less any offsetting revenues. Expenditures and
offsetting revenues for FYE 2022 are shown in Table 12 below.
Table 12 Expenditures and Offsetting Revenues (in millions)
FYE 2022
O&M Expenses $9.68
Replacement Funding $5.30
Adjustment for Mid-Year Increase $1.87
Operating Cash Flows $0.18
Less: Offsetting Revenues ($0.19)
Rate Revenues Required $16.83
Line or column totals may not tie due to rounding
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For FYE 2022,wastewater rates must be set to recover $16.83 million in annual revenue requirements.
Because the rate revenue increases will be implemented in the middle of each fiscal year, the rate revenue
requirements for each year include an “Adjustment for Mid-year Increase.” This line item adjusts the
required rate revenue to reflect a full year increase to match the full year of projected discharges and
customer bills that is used to calculate the rates for each year.
4.2 Functional Allocation
The American Water Works Association (AWWA) defines a two-step process for recovering costs for
wastewater services. First, capital and O&M costs should be allocated to applicable functional categories. A
functional category is a primary function of the utility that costs can be allocated to, then recovered based
on how customers utilize the system. For this study, four functional categories were assumed as follows:
Treatment Flow costs are associated with the treatment of sewage at the EWPCF based on volume
and regardless of strength. The City does not meter sewage discharges. Instead, flows by each
customer class are estimated using water consumption.The flow component is measured in
assumedflow in hundred cubic feet (HCF).
BOD costs are associated with providing the transportation and treatment of dissolved organisms
within sewage effluent. BOD costs are allocated based on assumed BOD strength in a user class’
discharges. BOD is measured in pound.
TSS costs relate to providing the transportation and treatment of solid objects within sewage
effluent. TSS costs are allocated based on assumed TSS strength in a user class’ discharges.TSS is
measured in pounds.
Collection Flow costs represent the collection and transportation of sewage discharges to the
EWPCF for treatment. The City does not meter sewage discharges. Instead, flows by each customer
class are estimated using water consumption. The flow component is measured in assumed flow in
hundred cubic feet (HCF).
Once the functional categories have been defined, each operating and capital cost is allocated on a line item
basis to one or more of these functional categories. The functional costs are then used to develop unit costs
for each category’s billable constituent.
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4.2.1 Functional Allocation Factors
Annual expenditures and off-setting non-rate revenues are allocated on a line-by-line item basis between
the functional components outlined in Table 13. The allocation metrics shown above are consistent with
industry standards. Items that cannot be reasonably allocated between these functional categories are
allocated “As-All-Others” and costs are split proportionally based on the allocation split of all other items.
Table 13 Functional Allocation Factors
Allocation Factor Treatment
Flow BOD TSS Collection
Flow
As All Other
(Weighted
Average)
Total
Treatment Flow/BOD/TSS 37.8%35.7%26.5%0.0%0.0%100%
Collections 0.0%5.0% 5.0% 90.0% 0.0% 100%
Staff Allocation 0.0%2.6%2.6%47.7%47.0%100%
Vehicles 0.0%4.4% 4.4%79.8%11.3% 100%
Capital Improvement Plan 20.0%18.5%19.9%41.5%0.0%100%
Weighted Average O&M 25.6% 25.8% 19.5% 29.1%N/A 100%
Weighted Average Total Rate
Revenue Requirements 23.6%23.2%19.7%33.5%N/A 100%
Line or column totals may not tie due to rounding
The allocation factors shown in Table 13 were determined as follows:
Treatment Flow/BOD/TSS:This allocation factor is used to allocate the ongoing costs the City pays to the
EWPCF for wastewater treatment. It represents the estimated average allocation of the City’s EWPCF
charges and was determined based on detailed records of the City’s EWPCF invoices by allocating specific
invoice elements to Treatment Flow, BOD, and TSS.
Collections:This allocation factor is applied to line item costs that are specifically attributable to the City’s
wastewater collection activities. Collections costs are driven primarily by flow, and therefore they are
allocated 90percent to collections flow. The City’s collections staff also spend time and resources reacting
to and preventing issues within the collection system that are related to the BOD and TSS carried in the
wastewater. These issues include material buildup, pipe degradation, and odor problems among others. To
recognize these activities, a small share of collections costs are allocated to BOD and TSS at 5 percent each.
Staff Allocation:The staff allocation was determined using an analysis of the City’s wastewater staff
positions and the typical costs for each position. Operations and maintenance staff as well as asset
management staff were allocated to the functional categories using the collections allocation, as their
responsibilities relate to the collection system. All other staff costs are allocated to the As All Other category
to be redistributed based on the weighted average O&M costs.
Vehicles:The vehicles allocation was determined based on the responsibilities of the staff members who
typically utilize City vehicles. These include predominantly operations and maintenance personnel and as
such, the majority of vehicle costs are allocated based on the collections allocation and split between
Collection Flow, BOS, and TSS. The remaining 11.3 percentof costs are allocated to the As All Other
category to be redistributed based on the weighted average O&M costs.
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Capital Improvement Plan:Costs related to capital improvements are allocated to reflect the proposed CIP
over the next 10 years. As shown in Table 14, capital costs for the collection system are assigned to the
Collection Flow component. Capital costs for EWPCF projects are split between Treatment Flow, BOD, and
TSS based on a typical allocation for municipal wastewater treatment plants. Using the 10-yearCIP rather
than a single year reflects that CIP projects are long-lived investments and helps to avoid large swings in cost
allocations that could result from changes in the types of projects being completed from year-to-year.
Weighted Average –O&M:This allocation reflects the overall allocation of O&M costs.
Weighted Average – Total Revenue Requirements:This allocation reflects the overall allocation of total
revenue requirements.
4.2.2 Functional Allocation Results
Table 15 shows the functional allocation of projected O&M costs for FYE 2022. The resulting allocated O&M
is then included along with the other revenue requirement elements to determine the overall revenue
requirements allocation as shown in Table 16. Thetotal allocated revenue requirements for each functional
category are then used to determine the unit costs by billable constituent and subsequently the rates.
Additional detail showing the line item allocations is included in Appendix F.
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Table 14 CIP Functional Allocation ($ millions)
CIP Allocation Treatment Flow BOD TSS Collection Flow Ten-Year Total
Encina Projects - Treatment $29.04 $26.84 $28.93 -$84.80
Carlsbad Projects - Collections ---$64.88 $64.88
Less: Debt Funded Projects ---($4.60)($4.60)
Allocated Cash Funded CIP Costs $29.04 $26.84 $28.93 $60.28 $145.08
CIP Percentage Allocation 20.0%18.5%19.9%33.5%100%
Line or column totals may not tie due to rounding
Table 15 O&M Functional Allocation ($ millions)
O&M Cost Allocation Treatment
Flow BOD TSS Collection
Flow
As All Other
(Weighted
Average)
Total
Personnel -$0.07 $0.07 $1.33 $1.31 $2.78
Maintenance & Equipment -$0.06 $0.06 $1.12 $2.07 $3.31
Encina Services $1.76 $1.66 $1.24 --$4.67
Capital Outlay ------
Budget Adjustment -($0.02)($0.02)($0.43)($0.60)($1.08)
Allocated Costs $1.76 $1.78 $1.35 $2.01 $2.78 $9.68
Reallocation of "As All Other"$0.71 $0.72 $0.54 $0.81 ($2.78)-
Total O&M Allocation $2.47 $2.49 $1.89 $2.82 -$9.68
O&M Percentage Allocation 25.6%25.8%19.5%29.1%100.0%
Line or column totals may not tie due to rounding
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Table 16 Revenue Requirements Functional Allocation ($ millions)
Revenue Requirements Allocation Treatment
Flow BOD TSS Collection
Flow
As All Other
(Weighted
Average)
Total
Allocated O&M $2.47 $2.49 $1.89 $2.82 -$9.68
Replacement Funding $1.06 $0.98 $1.06 $2.20 -$5.30
Adjustment for Mid-Year Increase ----$1.87 $1.87
Operating Cash Flows ----$0.18 $0.18
Less: Offsetting Revenues ----($0.19)($0.19)
Allocated Costs $3.54 $3.47 $2.95 $5.02 $1.86 $16.83
Reallocation of "As All Other"$0.44 $0.43 $0.37 $0.62 ($1.86)-
Total O&M Allocation $3.97 $3.90 $3.31 $5.64 $16.83
O&M Percentage Allocation 23.6%23.2%19.7%33.5%100.0%
Line or column totals may not tie due to rounding
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Section 5 –Rate Design Analysis
5.1 Customer Characteristics
The City does not individually meter wastewater usage by its customers. Metering wastewater is an
expensive and generally inefficient process. Single family residential customers, including duplex and flat
billed multi-family customers tracked as ‘M1’ customers in the billing system data, incur a flat monthly
charge for service. Schools are charged on a per student basis, and all other customer classes are charged
based on apercentage of water consumption, which is outlined in this report.
For the purposes of this study, Citystaff provided wastewater billing records, including January 2018
through March 2021. FY 2019/20 data were utilized to develop usage information by customer class and by
month. Wastewater billing records list monthly charges by customer as well as the amount of water used by
each customer. Water consumption was not provided for those customers who receive a flat monthly bill
(i.e., single family residences and schools). For these customers, data from the water utility billing system
was used to estimate discharges to the sewer system. In order to test the validity of the customer data, two
tests were performed: an accuracy test and a reliability test.
The accuracy test verifies that the correct data is being used by performing a price out on the provided data
set in order to calculate revenues and compare the result to the City’s actual revenues. An acceptable margin
of error for this test is +/-3percent (actual revenues compared to revenues calculated from the billing
records). Based on preliminary actuals for FYE 2021, the actual wastewater rate revenues collected by the
City in amounted to $14.0 million. Using the customer data set provided, the calculated amount came to
$13.8 million, a difference of $0.2 million or 1.5 percent.This minimal level of discrepancy validates that the
data provided is sufficiently accurate to be used in the model and calculations.
Performing a reliability test is also necessary in order to confirm that the correct data is being used. From a
statistical standpoint, the definition of reliability is the consistency of a set of measurements. In other words,
"Can the provided data be considered a ‘normal’ year?" It is important to verify that a normalized year of
data is being used as the foundation for developing rates; otherwise, revenues may be over or under
collected. Forexample, during a wet year, consumption may be reduced. If a test for reliability is not
performed under these circumstances, then the customer base may be understated. Rates would then be set
at a level higher than needed and revenues would be over collected. While there is no guarantee that a
‘normal’ year will occur in the years addressed by this study, for the sake of projections, it is prudent to
assume that this will be the case.
After the provided customer data sets were validated, the number of accounts,the amount of flow, BOD,
and TSS for each customer class were determined. This allowed for the allocation of costs from the various
functional categories (as described in the previous section) to each customer class. The customer classes are
definedas follows:
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Single Family Residential includes single family residences, duplexes and M1 (multiple PDUs)
accounts. These users are charged a flat monthly wastewater bill. The analysis of water usage was
used to determine and estimated wastewater discharge of 203 gallons per day (gpd) or 8.27 HCF per
month.The estimated discharge was calculated by applying a 90 percent return to sewer factor to
the average water use for minimum two months of each of the last three fiscal years. This amount
represents the estimated monthly indoor water use that is discharged to the sewer by each single
family customer.
Multi-Family Residential includes multi-family residences and mobile homes. These users are
charged based on 95percent of their water usage (per HCF).
Group II Commercial includes soft water services, car washes, office buildings, professional
buildings, laundromats, department and retail stores, warehouses, hospital convalescent homes
and indoor theaters. These users are charged based on 95 percent of their water usage (per HCF).
Group III Commercial includes hotels and motels without restaurants, repair and service stations,
shopping centers, amusement parks, nightclubs, nurseries and greenhouses, commercial laundries,
manufacturing and lumber yards. These users are charged based on 95% of their water usage (per
HCF).
Group IV Commercial includes hotels and motels with restaurants, wholesale bakeries,
supermarkets, mortuaries, and restaurants. These users are charged based on 95percent of their
water usage (per HCF).
Group V includes schools:
-Elementary Schools are billed on a per-student basis.
-Middle Schools are billed on a per-student basis.
-High Schools are billed on a per-student basis.
-Boarding Schools are billed on a per-student basis.
Group VI Large Volume includes organizations and social services. These users are charged based
on 95percent of their water usage (per HCF). Currently, there is no accounts under this class.
Breweries include all businesses where beer or beverage brewing takes place. Breweries are split
into four classes based on the strength of their discharge. Each brewery class has specific
concentration assumptions depending on whether or not they have an attached restaurant and
whether or not they haul their brewing waste offsite for treatment.The brewery classes are:
-B1 – Brewery without a restaurant and hauls waste for outside treatment. These users are
charged based on 82.5percentof their water usage (per HCF).
-B2 –Brewery without a restaurant that does not haul waste for outside treatment. These users
are charged based on 82.5percent of their water usage (per HCF).
-B3 –Brewery with a restaurant and hauls waste for outside treatment. These users are charged
based on 82.5percent of their water usage (per HCF).
-B4 –Brewery with a restaurant and hauls waste for outside treatment. These users are charged
based on 82.5percenttheir water usage (per HCF).
Industrial Pretreatment Class III includes any user discharging waste other than domestic waste,
having a reasonable potential to adversely affect the Encina Water Pollution Control Facility and
requires annual inspection and permits every threeyears. These users are charged based on
95 percent of their water usage.
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5.1.1 Customer Class Loading and Allocation
The Cityprovided a table that outlines the assumed loading concentrations by user class. It is assumed that
these concentrations are accurate. No changes have been made to the assumed loading concentrations that
are shown in Table 17.
Table 17 Loading Assumption by Class
BOD (MG/L)TSS (MG/L)
GROUP I - SFR & Minimum Charges 200 200
GROUP I - MFR/Mobile Homes 200 200
GROUP II - Commercial 2 130 121
GROUP III - Commercial 3 328 279
GROUP IV - Commercial 4 820 680
Group V Schools
Elementary School 130 100
Middle School 130 100
High School 130 100
Boarding School 130 100
GROUP VI - Large Volume (no accounts)80 80
Breweries
B1 – Brewery without a restaurant that hauls waste for outside
treatment (assumptions equal to Group II commercial)
130 121
B2 – Brewery without a restaurant that does not haul waste for
outside treatment 1265 810
B3 – Brewery with a restaurant that hauls waste for outside
treatment (assumptions equal to Group IV commercial)820 680
B4 – Brewery with a restaurant that does not haul waste for outside
treatment 1610 1090
Industrial Pretreatment Class III 299 477
Line or column totals may not tie due to rounding
Using these assumptions, water consumption data,and the wastewater billing records, assumed usage by
each customer class was calculated and is summarized in Table 18.
Table 18 Billed Units by Customer Class for FY 2021/22
Customer Class Monthly
Account Flow BOD TSS
GROUP I - SFR & Minimum Charges 22,724 2,254,505 2,814,688 2,814,688
GROUP I - MFR/Mobile Homes 977 517,586 646,192 646,192
GROUP II - Commercial 2 1,237 341,658 277,969 257,115
GROUP III - Commercial 3 355 359,280 736,371 625,480
GROUP IV - Commercial 4 238 105,086 537,909 446,071
Other (No Accounts)266 58,907 47,804 36,772
Brewery -B2 8 2,895 22,867 14,645
WASTEWATER COST-OF-SERVICE STUDY | FYE 2021 WASTEWATER RATE STUDY | CARLSBAD
FINAL |OCTOBER 2021|24
Customer Class Monthly
Account Flow BOD TSS
Brewery -B4 4 3,308 33,246 22,508
GROUP VI - Large Volume (no accounts)0 0 0 0
Industrial Pretreatment Class III 262 44,386 82,723 132,230
GROUP V - Elementary Schools 17 8,794 7,137 5,490
GROUP V - Junior High Schools 22 5,218 4,234 3,257
GROUP V - High Schools 72 9,657 7,836 6,028
GROUP V - Boarding Schools 3 5,373 4,360 3,354
Total 26,185 3,716,655 5,223,336 5,013,831
Line or column totals may not tie due to rounding
Unit costs for each billable constituent are calculated by dividing the total allocated revenue requirements
from Table 16 by the billed units from Table 18. Table 19 shows the calculation of unit costs for FYE 2022.
Table 19 Unit Costs per Billable Constituents
Unit Cost Calculation Treatment
Flow BOD TSS Collection
Flow
Allocated Rate Revenue (Millions)$3.97 $3.90 $3.31 $5.64
Unit Basis for Rate Design
Estimated
Sewer Flows
(HCF)
Estimated
BOD
Discharges
(lbs)
Estimated
TSS
Discharges
(lbs)
Estimated
Sewer Flows
(HCF)
FYE 2022 Billed Units 3,716,655 5,223,336 5,013,831 3,716,655
FYE 2022 Unit Costs $1.07 $0.75 $0.66 $1.52
per HCF per lb per lb per HCF
Line or column totals may not tie due to rounding
5.2 Rate Design
Based on the rate evaluation performed under the previous tasks, it was determined that in general, the
City’s current rate structure is capable of meeting the City's goals.The recommended rates are based on
“cost-of-service” principles that incorporate the work performed in previous tasks and adhere to Proposition
218 requirements.
Rates for each class are determined using two general steps:
First, a unit cost per HCF of wastewater discharge is determined for each class based on the unit
costs per billable constituent from Table 19 and the assumed BOD and TSS concentrations from
Table 17.
Next, each class’unit cost per HCF of discharge is used along with other assumptions to determine
the proposed rate.
-For single family and other flat rate customers, the class unit cost per HCF is multiplied by the
assumed flow per month to determine the monthly charge.
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-For customers charges based on water usage, each class’s unit cost per HCF is multiplied by its
return-to-sewer factor to determine the rate per HCF of water consumption.
-For schools, the class unit cost per HCF s multiplied by the assumed flow per student to
determine the monthly rate per student.
The following sections outline the calculations used to determine rates for each customer class.
5.2.1 Class Unit Costs per HCF Discharges
As noted above, the first step in the rate calculations is determining each class’s unit cost per HCF of
sewage discharged. This calculation is performed by converting the BOD and TSS mg/l concentrations
from Table 17 to a mass load concentration in lb/HCF. Next, the mass load in lb/HCF is multiplied by its
respective unit cost per lb from Table 19 to calculate a component unit cost per HCF. Finally, the
component unit costs per HCF for BOD and TSS are added to the unit costs for Treatment Flow and
Collection Flow from Table 19 (already in terms of per HCF) to determine the total unit cost per HCF. An
example of this calculation for Group 1 residential customers is shown in Table 20. An identical
calculation is used to determine the $/HCF unit cost for each class as summarized in Table21.
Table 20 Group I Unit Cost per HCF Calculation
Group I Unit Cost per HCF
Example
Concentration
(mg/l)
Mass Load
lb/HCF Unit Cost $/lb Unit Cost $/HCF
Discharged
Item A B C D
BOD 200 1.25 $0.75 $0.93
TSS 200 1.25 $0.67 $0.83
Treatment Flow N/A N/A N/A $1.07
Collections Flow N/A N/A N/A $1.51
Total Unit Cost per HCF N/A N/A N/A $4.35
Mass Load, lb per HCF (B) = [Concentration, mg/l (A)] x [3.785 gallons per L] x [748 gallons per HCF] / [453,592
mg per lb]
Unit Cost, $/HCF (D) = [Mass Load, lb/HCF (B)] x [Unit Cost, $/lb (C)]
Line or column totals may not tie due to rounding
Table 21 All Classes Unit Cost per HCF Calculation
Customer Class Unit Costs
per HCF Discharged
BOD
(mg/l)
BOD
($/HCF)
TSS
(mg/l)
TSS
($/HCF)
Flow
($/HCF)
Total $ Per HCF
Discharged
GROUP I - SFR & Minimum
Charges 200 $0.93 200 $0.82 $2.59 $4.35
GROUP I - MFR/Mobile Homes 200 $0.93 200 $0.82 $2.59 $4.35
GROUP II - Commercial 2 130 $0.61 121 $0.50 $2.59 $3.69
GROUP III - Commercial 3 328 $1.53 279 $1.15 $2.59 $5.27
GROUP IV - Commercial 4 820 $3.82 680 $2.80 $2.59 $9.22
Other (No Accounts)130 $0.61 100 $0.41 $2.59 $3.61
Brewery - B2 1265 $5.90 810 $3.34 $2.59 $11.83
Brewery - B4 1610 $7.51 1090 $4.50 $2.59 $14.59
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FINAL |OCTOBER 2021|26
Customer Class Unit Costs
per HCF Discharged
BOD
(mg/l)
BOD
($/HCF)
TSS
(mg/l)
TSS
($/HCF)
Flow
($/HCF)
Total $ Per HCF
Discharged
GROUP VI - Large Volume (no
accounts)80 $0.37 80 $0.33 $2.59 $3.29
Industrial Pretreatment Class III 299 $1.39 477 $1.97 $2.59 $5.95
GROUP V - Elementary Schools 130 $0.61 100 $0.41 $2.59 $3.61
GROUP V - Junior High Schools 130 $0.61 100 $0.41 $2.59 $3.61
GROUP V - High Schools 130 $0.61 100 $0.41 $2.59 $3.61
GROUP V - Boarding Schools 130 $0.61 100 $0.41 $2.59 $3.61
Line or column totals may not tie due to rounding
5.2.2 Customer Class Rate Calculations
Charges for customers that pay flat monthly fees are determined by multiplying their $/HCF unit cost by
their assumed monthly flow. The calculation of monthly charges for single-family and applicable multi-
family, duplex, and flat charges is shown in Table22. Thecalculated FYE 2022 charge for a single EDU
customer is $35.93, equal to the $/HCF unit cost multiplied by the estimated monthly flow of 8.27 HCF. For
single family customers with an accessory dwelling unit (ADU), and EDU flow factor of 1.5 is applied to
reflect the additional sewage discharged by the ADU. This results in a calculated charge for FYE 2022 of
$53.89.
Table 22 Group I Monthly Rate Calculation
Unit Cost
$/HCF
Discharged
EDU Flow
Factor
Estimated
Monthly
Discharge
(HCF)
Proposed
Monthly
Rate (per
Account)
Rounded
GROUP I – Single-Family & Minimum Charges $4.35 1.00 8.27 $35.93
Single Family with ADU $4.35 1.50 12.40 $53.89
Table23shows the rate calculation for classes that pay rates based on their billed water consumption in
HCF. The rates are determined by multiplying each class’s $/HCF unit cost by the return to sewer factor to
determine the rate per HCF of water consumed.
Table 23 Rates per HCF of Water Consumption Calculation
Usage Based Rates Unit Cost $/HCF
Discharged
Return to Sewer
Factor
Calculated
Monthly Rate
(per HCF of Water
Used)
Rounded
GROUP I – Multi-Family/Mobile Homes $4.35 95%$4.13
GROUP II - Commercial 2 $3.69 95%$3.51
GROUP III - Commercial 3 $5.27 95%$5.01
GROUP IV - Commercial 4 $9.22 95%$8.76
Other (No Accounts)$3.61 95%$3.43
Brewery - B2 $11.83 83%$9.76
WASTEWATER COST-OF-SERVICE STUDY | FYE 2021 WASTEWATER RATE STUDY | CARLSBAD
FINAL |OCTOBER 2021 |27
Usage Based Rates Unit Cost $/HCF
Discharged
Return to Sewer
Factor
Calculated
Monthly Rate
(per HCF of Water
Used)
Rounded
Brewery - B4 $14.59 83%$12.04
GROUP VI - Large Volume (no accounts)$3.29 95%$3.13
Industrial Pretreatment Class III $5.95 95%$5.66
Charges for schools that pay rates on a per-student basis are determined by multiplying their $/HCF unit cost
by their assumed monthly flow per student. The calculation of monthly charges for each type of school is
shown in Table24.
Table 24 Schools Rates Calculation
Group V - Schools Rates
Unit Cost
$/HCF
Discharged
Assumed
Flow per
Student
(gpd)
Assumed
Flow per
Student
(HCF per
Month)
Proposed
Monthly
Rate (per
Student)
Rounded
GROUP V - Elementary Schools $3.61 4.8 0.2 $0.71
GROUP V - Junior High Schools $3.61 7.2 0.3 $1.06
GROUP V - High Schools $3.61 9.6 0.4 $1.41
GROUP V - Boarding Schools $3.61 50.0 2.0 $7.34
5.2.3 Proposed Rates
Table25shows the proposed rates for the Option 1 implementation strategy. The proposed rates for FYE
2022 are determined based on the COS analysis and Rate Design analysis as discussed above. Rates for FYE
2023 through FYE 2026 are determined by applying the proposed rate revenue increases for those to the
FYE 2022 rates.
Table 25 Option 1: Proposed Wastewater Rates by Customer Class
Customer Class Current
Rate
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026
20.0%
w/COS(1)20.0%(2)20.0%(2)4.0%(2)4.0%(2)
Group I - Residential - Monthly Flat Rate
Single Family Resident (SFR)$29.52 $35.93 $43.11 $51.74 $53.80 $55.96
SFR w/ Second Dwelling Unit $44.28 $53.89 $64.67 $77.60 $80.70 $83.93
Group I - Residential - Rates per HCF
Multi Family Resident (MFR)
(per HCF)$3.48 $4.13 $4.96 $5.95 $6.19 $6.43
Mobile Home (per HCF)$3.48 $4.13 $4.96 $5.95 $6.19 $6.43
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Customer Class Current
Rate
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026
20.0%
w/COS(1)20.0%(2)20.0%(2)4.0%(2)4.0%(2)
Commercial - Rates per HCF
GROUP II - Commercial 2 $2.88 $3.51 $4.21 $5.06 $5.26 $5.47
GROUP III - Commercial 3 $4.38 $5.01 $6.01 $7.21 $7.50 $7.80
GROUP IV - Commercial 4 $8.10 $8.76 $10.51 $12.61 $13.12 $13.64
Industrial Pretreatment Class III $4.82 $5.66 $6.79 $8.14 $8.47 $8.81
Group V - School - Monthly Rates per Student
Elementary School (per student) $0.59 $0.71 $0.85 $1.02 $1.06 $1.10
Junior High School (per student)$0.87 $1.06 $1.27 $1.53 $1.59 $1.65
High School (per student)$1.17 $1.41 $1.69 $2.03 $2.11 $2.20
Boarding School (per student)$6.09 $7.34 $8.80 $10.56 $10.99 $11.42
Breweries - Rates per HCF
B1 – Brewery without a
restaurant and hauls waste for
outside treatment
$2.88 $3.51 $4.21 $5.06 $5.26 $5.47
B2 – Brewery without a
restaurant that does not haul
waste for outside treatment
$9.34 $9.76 $11.72 $14.06 $14.62 $15.21
B3 – Brewery with a restaurant
and hauls waste for outside
treatment
$8.10 $8.76 $10.51 $12.61 $13.12 $13.64
B4 – Brewery with a restaurant
that does not haul waste for
outside treatment
$11.60 $12.04 $14.45 $17.34 $18.04 $18.76
Other - Rate per HCF $2.97 $3.43 $4.12 $4.94 $5.14 $5.35
Notes:
(1)Proposed rates for FYE 2022 include a cost-of-serviceadjustment and increases for specific rates vary from the 20.0-percent overall rate
revenue increase.
(2)Proposed rates for FYE 2023 and subsequent years are calculated by applying the proposed overall rate revenue increase to the FYE 2022 rate
proportionally.
Table26shows the proposed rates for the Option 2implementation strategy. The proposed rates for FYE
2022 are determined based on the COS analysis and Rate Design analysis as discussed above. Rates for FYE
2023 through FYE 2026 are determined by applying the proposed rate revenue increases for those to the
FYE 2022 rates.Tables detailing the cost-of-service and rate design analyses for Option 2 are included in
Appendix H.
WASTEWATER COST-OF-SERVICE STUDY | FYE 2021 WASTEWATER RATE STUDY | CARLSBAD
FINAL |OCTOBER 2021|29
Table 26 Option 2: Proposed Wastewater Rates by Customer Class
Customer Class Current
Rate
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026
50.0%
w/COS(1)4.0%(2)4.0%(2)4.0%(2)4.0%(2)
Group I - Residential - Monthly Flat Rate
Single Family Resident (SFR)$29.52 $44.91 $46.71 $48.57 $50.52 $52.54
SFR w/ Second Dwelling Unit $44.28 $67.36 $70.06 $72.86 $75.77 $78.80
Group I - Residential - Rates per HCF
Multi Family Resident (MFR)
(per HCF)$3.48 $5.16 $5.37 $5.59 $5.81 $6.04
Mobile Home (per HCF)$3.48 $5.16 $5.37 $5.59 $5.81 $6.04
Commercial -Rates per HCF
GROUP II - Commercial 2 $2.88 $4.39 $4.57 $4.75 $4.94 $5.13
GROUP III - Commercial 3 $4.38 $6.26 $6.51 $6.77 $7.04 $7.32
GROUP IV - Commercial 4 $8.10 $10.95 $11.39 $11.84 $12.32 $12.81
Industrial Pretreatment Class III $4.82 $7.07 $7.35 $7.64 $7.95 $8.27
Group V - School - Monthly Rates per Student
Elementary School (per student) $0.59 $0.88 $0.92 $0.96 $0.99 $1.03
Junior High School (per student)$0.87 $1.32 $1.38 $1.43 $1.49 $1.55
High School (per student)$1.17 $1.76 $1.84 $1.91 $1.98 $2.06
Boarding School (per student)$6.09 $9.17 $9.54 $9.92 $10.31 $10.73
Breweries -Rates per HCF
B1 – Brewery without a
restaurant and hauls waste for
outside treatment
$2.88 $4.39 $4.57 $4.75 $4.94 $5.13
B2 – Brewery without a
restaurant that does not haul
waste for outside treatment
$9.34 $12.20 $12.69 $13.20 $13.73 $14.28
B3 – Brewery with a restaurant
and hauls waste for outside
treatment
$8.10 $10.95 $11.39 $11.84 $12.32 $12.81
B4 – Brewery with a restaurant
that does not haul waste for
outside treatment
$11.60 $15.05 $15.66 $16.28 $16.93 $17.61
Other - Rate per HCF $2.97 $4.29 $4.47 $4.65 $4.83 $5.02
Note:
(1)Proposed rates for FYE 2022 include a cost-of-serviceadjustment and increases for specific rates vary from the 50.0-percent overall rate
revenue increase.
(2)Proposed rates for FYE 2023 and subsequent years are calculated by applying the proposed overall rate revenue increase to the FYE 2022 rate
proportionally.
WASTEWATER COST-OF-SERVICE STUDY | FYE 2021 WASTEWATER RATE STUDY | CARLSBAD
FINAL |OCTOBER 2021|30
Section 6 –Rate Comparison
Carollo conducted a survey of wastewater rates to compare the City’s existing and proposed rates to those
of surrounding agencies. All wastewater systems face unique challenges,and they develop their rates
accordingly. Taking this into consideration, Figure 3 below summarizes regional monthly wastewater bills
for single family residential customers, including the City’s current and proposed monthly flat rates. As
shown in the figure, the City’s rate is the lowest amongst surveyed agencies. With the proposed increases for
FYE 2022, for both implementation options, the rate remains below the regional average. Additionally, this
survey might not reflect rate increases currently under review, but not yet implemented.
Figure 2 Regional Monthly Single-Family Residential Rate Comparison
$-
$20
$40
$60
$80
$100
$120
Monthly BillRegional Monthly SFR Wastewater Bills
Monthly Charge
Regional Average
WASTEWATER COST-OF-SERVICE STUDY | FYE 2021 WASTEWATER RATE STUDY | CARLSBAD
FINAL |OCTOBER 2021
Appendix A
PROJECTED O&M –OPTION 1
CODE LINE ITEM ESCALATOR FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026
REVENUES Projection Projection Projection Projection Projection
Charges for Services
5100 Commodity Usage Customer Demand Growth 14,007,136$ 16,858,290$ 20,344,680$ 24,454,300$ 25,606,480$
5112 Sewer Pre-Treat Customer Demand Growth 19,614 23,610 28,490 34,240 35,850
5121 Sewer Laterals Customer Demand Growth - - - - -
Other Charges for Services General Inflation - - - - -
Total Charges for Services 14,026,750$ 16,881,900$ 20,373,170$ 24,488,540$ 25,642,330$
Fines and Forfeitures
5225 Late Charges Customer Demand Growth 30,399$ 30,490$ 30,660$ 30,710$ 30,920$
Other Fines and Forfeitures Customer Demand Growth - - - - -
Total Fines and Forfeitures 30,399$ 30,490$ 30,660$ 30,710$ 30,920$
Income from Property & Investments
5300 Interest Income - Pooled Cash [ Calculated ]75,000$ 90,360$ 98,440$ 110,280$ 113,480$
5305 Interest-Unrealzd Gains/Losses General Inflation - - - - -
5310 Interest Income Frm Othr Inv General Inflation - - - -
5360 Sale of Capital Assets (cash adj)General Inflation - - - -
5361 Donated Assets General Inflation - - - -
Other Income from Property & Investments General Inflation - - - -
Total Income from Property & Investments 75,000$ 90,360$ 98,440$ 110,280$ 113,480$
Interdepartmental
5430 Eng Labor General Inflation 15,931$ 16,330$ 16,740$ 17,160$ 17,590$
Other Interdepartmental General Inflation - - - -
Total Interdepartmental 15,931$ 16,330$ 16,740$ 17,160$ 17,590$
Other Revenues
5550 Prior Year Fee Refunds General Inflation -$ -$ -$ -$ -$
5636 Loss Recovery General Inflation 2,895 2,970 3,040 3,120 3,200
5639 Misc Reimbursement Exp.General Inflation 65,777 67,420 69,110 70,840 72,610
5664 MISC AR Write Offs General Inflation - - - - -
5674 Misc Revenues General Inflation - - - -
Other Other Revenues General Inflation - - - -
Total Other Revenues 68,672$ 70,390$ 72,150$ 73,960$ 75,810$
TOTAL REVENUES 14,216,752$ 17,089,470$ 20,591,160$ 24,720,650$ 25,880,130$
10/22/2021
CODE LINE ITEM ESCALATOR FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026
EXPENDITURES Projection Projection Projection Projection Projection
Personnel
6100 Reg Salaries Labor Inflation 1,784,827$ 1,838,370$ 1,893,520$ 1,950,330$ 2,008,840$
6101 Incentive Pay Labor Inflation - - - - -
6135 Hazard Pay Labor Inflation 31,602 32,550 33,530 34,540 35,580
6150 IOD Worker's Comp Labor Inflation - - - - -
6200 Overtime Salaries Labor Inflation 60,000 61,800 63,650 65,560 67,530
6210 Standby Pay Labor Inflation 26,000 26,780 27,580 28,410 29,260
6300 Parttimes Salaries Labor Inflation 18,776 19,340 19,920 20,520 21,140
6305 Intern Salaries Labor Inflation 7,429 7,650 7,880 8,120 8,360
6400 Temporary Help Labor Inflation - - - - -
6501 Health Insurance Labor - Health Insurance 318,780 340,710 363,300 386,480 410,170
6510 Life Insurance General Inflation 1,270 1,300 1,330 1,360 1,390
6511 AD&D - City Paid General Inflation 635 650 670 690 710
6520 Vision Insurance General Inflation - - - - -
6530 Medicare General Inflation 27,859 28,560 29,270 30,000 30,750
6629 Cell Phone Reimbursement General Inflation - - - - -
6630 Auto Allowance General Inflation 1,138 1,170 1,200 1,230 1,260
6640 Earned Leave Accrual Labor Inflation - - - - -
6651 Healthy Emp Awards General Inflation - - - - -
6653 Final Vacation Pay Labor Inflation 17,000 17,510 18,040 18,580 19,140
6654 Final Sick Leave Pay Labor Inflation - - - - -
6655 Disability General Inflation 16,146 16,550 16,960 17,380 17,810
6656 Unemployment General Inflation 9,129 9,360 9,590 9,830 10,080
6657 Worker's Compensation General Inflation 32,250 33,060 33,890 34,740 35,610
6720 PERS Labor - PERS (Normal Cost)220,696 242,665 249,945 257,444 265,167
6723 PERS Unfunded Liab Exp Labor - PERS (Normal Cost)204,586 304,066 315,460 330,581 337,284
6721 PERS (GASB 68 CONTRA ACCOUNT)Labor - PERS (Normal Cost)- - - - -
6722 Operation Expense General Inflation - - - - -
6730 Social Security General Inflation - - - - -
6740 Deferred Comp General Inflation 705 720 740 760 780
Other Personnel General Inflation - - - - -
Total Personnel Costs 2,778,829$ 2,982,811$ 3,086,475$ 3,196,554$ 3,300,861$
Maintenance & Equipment
7111 Other Mach & Equip General Inflation -$ -$ -$ -$ -$
7115 Vehicle Rentals General Inflation - - - - -
7119 Misc Rentals General Inflation 6,500 6,660 6,830 7,000 7,180
7120 Misc Leases General Inflation - - - - -
7210 Office Equip Maint General Inflation - - - - -
7211 Communication Equip Maintenance General Inflation 1,000 1,030 1,060 1,090 1,120
7215 Software Maintenance General Inflation 46,650 47,820 49,020 50,250 51,510
7216 Computer Maintenance General Inflation - - - - -
7220 Vehicle Maintenance General Inflation 15,000 15,380 15,760 16,150 16,550
7221 Wash and Wax General Inflation 4,500 4,610 4,730 4,850 4,970
7222 Other Equip Maint General Inflation - - - - -
7226 Pipeline Maintenance General Inflation 145,000 148,630 152,350 156,160 160,060
7230 Routine Building Maintenance General Inflation - - - - -
7241 Asphalt Repairs General Inflation 10,000 10,250 10,510 10,770 11,040
7249 Maintenance, Repair and Rehab General Inflation 3,000 3,080 3,160 3,240 3,320
7400 Audit General Inflation - - - - -
7410 Legal General Inflation - - - - -
7435 Administrative General Inflation - - - - -
7490 Misc Professional Services General Inflation 287,100 294,280 301,640 309,180 316,910
7500 Encina Services Gnrl Infltn + Cstmr Dmnd Grwth 4,665,000 4,795,430 4,942,510 5,074,310 5,235,890
7500 Encina Services (Pension Payoff)No Annual Increase (266,721) (273,876) (281,750) (289,850)
7550 Miscellaneous Outside Services General Inflation 293,500 300,840 308,360 316,070 323,970
7551 Bank Services General Inflation 31,800 32,600 33,420 34,260 35,120
7553 Comm Arts Support General Inflation - - - - -
7554 Regulatory/Permitting Fees General Inflation 45,000 46,130 47,280 48,460 49,670
7556 Misc Services General Inflation - - - - -
7558 Laundry and Uniform Mainteance General Inflation 5,000 5,130 5,260 5,390 5,520
7559 Electrical/SCADA Services General Inflation 15,600 15,990 16,390 16,800 17,220
7560 Water Sampling Services General Inflation - - - - -
7562 FOG Inspection Services General Inflation 61,000 62,530 64,090 65,690 67,330
7563 Smartcover WIFI/Alarm Services General Inflation 50,000 51,250 52,530 53,840 55,190
7564 Landscaping Services General Inflation 60,000 61,500 63,040 64,620 66,240
7710 Ads and Publishing General Inflation 2,000 2,050 2,100 2,150 2,200
7711 Dues and Subscriptions General Inflation 10,500 10,760 11,030 11,310 11,590
7712 Books and Publications General Inflation 500 510 520 530 540
7713 Audio Visual Materials General Inflation - - - - -
7715 Printing General Inflation 7,500 7,690 7,880 8,080 8,280
7720 Postage General Inflation 3,500 3,590 3,680 3,770 3,860
7725 Office Supplies General Inflation 5,000 5,130 5,260 5,390 5,520
7726 Office Furniture & Equipment General Inflation 5,000 5,130 5,260 5,390 5,520
7730 Computer Software General Inflation 10,000 10,250 10,510 10,770 11,040
7731 Misc. Computer Hardware General Inflation 3,000 3,080 3,160 3,240 3,320
7735 Promo Materials General Inflation 5,000 5,130 5,260 5,390 5,520
7745 Food Expense General Inflation - - - - -
7750 Heat and Light Utilities Inflation 285,000 292,130 299,430 306,920 314,590
10/22/2021
CODE LINE ITEM ESCALATOR FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026
7751 Telephone & Communications Utilities Inflation 12,000 12,300 12,610 12,930 13,250
7752 Waste Dispoal Services Utilities Inflation 10,000 10,250 10,510 10,770 11,040
7753 Water Utilities Inflation 36,000 36,900 37,820 38,770 39,740
7801 Building Maintenance General Inflation - - - - -
7810 Electrical Supplies General Inflation 500 510 520 530 540
7811 Janitorial Supplies General Inflation 300 310 320 330 340
7820 Parts-Vehicles General Inflation 500 510 520 530 540
7821 Parts-Equip General Inflation 169,000 173,230 177,560 182,000 186,550
7830 Rock and Mineral Products General Inflation 4,000 4,100 4,200 4,310 4,420
7831 Asphalt General Inflation 500 510 520 530 540
7850 Small Tools General Inflation 1,500 1,540 1,580 1,620 1,660
7851 Safety Equipment General Inflation 21,300 21,830 22,380 22,940 23,510
7852 Uniforms and Accessories General Inflation 5,000 5,130 5,260 5,390 5,520
7853 Meters/Fittings General Inflation - - - - -
7857 Personal Protective Equipment General Inflation - - - - -
7880 Gasoline and Oil Utilities Inflation 2,000 2,050 2,100 2,150 2,200
7883 Chemicals Chemicals Inflation 72,000 73,800 75,650 77,540 79,480
7886 Training Supplies General Inflation - - - - -
7896 Medical Supplies - Disposable General Inflation - - - - -
7899 Misc Supplies General Inflation 24,400 25,010 25,640 26,280 26,940
8110 Employee Training General Inflation 3,000 3,080 3,160 3,240 3,320
8120 Tuition Reimbursement General Inflation - - - - -
8130 Training/Training Related Travel General Inflation 3,000 3,080 3,160 3,240 3,320
8500 Depreciation Depreciation Funding 5,300,000 5,363,070 5,425,820 5,488,760 5,551,880
Note: Depreciation transfer for FYE 2023 to FYE 2026 not included in revenue requirement calculations for rate study.
8520 Conference Travel General Inflation 500 510 520 530 540
8522 Misc. Meals/Miles General Inflation 6,000 6,150 6,300 6,460 6,620
8530 Bad Debt Exp - Other Inv/Bills General Inflation 40,600 41,620 42,660 43,730 44,820
8532 Disposal of Assets General Inflation - - - - -
8534 Reg Over/Short General Inflation - - - - -
8542 NED Rental Assistance Payments No Annual Increase - - - - -
8544 Lateral Assistance Program No Annual Increase 25,000 25,000 25,000 25,000 25,000
8610 Settlements General Inflation - - - - -
8700 Contingencies No Annual Increase - - - - -
8809 Vehicle Direct Charges General Inflation 18,628 19,090 19,570 20,060 20,560
8810 Vehicle Maintenance (2)General Inflation 92,440 94,750 97,120 99,550 102,040
8811 Vehicle Replacement General Inflation 250,342 256,600 263,020 269,600 276,340
8830 General Liab General Inflation 98,220 100,680 103,200 105,780 108,420
8860 Information Technologies General Inflation 231,260 237,040 242,970 249,040 255,270
8890 Misc Interdepartmental Charges General Inflation 768,005 787,210 806,890 827,060 847,740
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 ]- 114,535 116,826 119,162 121,545
8921 Interest Expense [ Calculated ]- 92,929 90,639 88,302 85,919
8922 Int Exp-Capitalized Interest One Time Expense - - - - -
Other - Heat & Light No Annual Increase - - - - -
Other - Parts & Equipment No Annual Increase - - - - -
Other - Smart Covers No Annual Increase - - - - -
Addt'l Maintenance & Equipment General Inflation - - - - -
Other Maintenance & Equipment [ Calculated Below ](1,081,941) (1,103,580) (1,125,651) (1,148,164) (1,171,128)
Total Maintenance & Equipment Costs 12,196,704$ 12,391,613$ 12,656,547$ 12,907,290$ 13,189,417$
10/22/2021
CODE LINE ITEM ESCALATOR FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026
Capital Outlay
9005 Capital Outlay < $10k - New General Inflation -$ -$ -$ -$ -$
9006 Capital Outlay < $10k - Repl General Inflation - - - - -
9010 Cap Outlay - Vehicles General Inflation - - - - -
9020 Computer Equip > $10k - Repl General Inflation - - - - -
9021 Office Equipment General Inflation - - - - -
9022 Other Equipment General Inflation - - - - -
9030 Office Furniture General Inflation - - - - -
9050 Capitalized Assets General Inflation - - - - -
Other Capital Outlay General Inflation - - - - -
Total Capital Outlay Costs -$ -$ -$ -$ -$
Other Financing Uses
9999 Additional Transfer to Capital Fund One Time Expense -$ -$ -$ -$ -$
Transfer Out - Debt Service General Inflation - - - - -
Total Other Financing Uses Costs -$ -$ -$ -$ -$
TOTAL EXPENDITURES 14,975,533$ 15,374,425$ 15,743,022$ 16,103,844$ 16,490,278$
TOTAL W/O DEPR & TRANSFER TO CAPITAL 9,675,533$ 10,011,355$ 10,317,202$ 10,615,084$ 10,938,398$
RATE REVENUES WITHOUT INCREASES FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026
Commodity Usage Customer Demand Growth 14,007,136$ 14,048,576$ 14,128,254$ 14,151,796$ 14,248,623$
Sewer Pre-Treat Customer Demand Growth 19,614$ 19,672 19,783 19,816 19,952
Sewer Laterals Customer Demand Growth -$ - - - -
Other Charges for Services General Inflation -$ - - - -
14,026,750$ 14,068,248$ 14,148,037$ 14,171,613$ 14,268,575$
10/22/2021
WASTEWATER COST-OF-SERVICE STUDY | FYE 2021 WASTEWATER RATE STUDY | CARLSBAD
FINAL |OCTOBER 2021
Appendix B
PROJECTED O&M –OPTION 2
CODE LINE ITEM ESCALATOR FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026
REVENUES Projection Projection Projection Projection Projection
Charges for Services
5100 Commodity Usage Customer Demand Growth 14,007,136$ 21,072,860$ 22,040,070$ 22,959,870$ 24,041,640$
5112 Sewer Pre-Treat Customer Demand Growth 19,614 29,510 30,860 32,150 33,660
5121 Sewer Laterals Customer Demand Growth - - - - -
Other Charges for Services General Inflation - - - - -
Total Charges for Services 14,026,750$ 21,102,370$ 22,070,930$ 22,992,020$ 24,075,300$
Fines and Forfeitures
5225 Late Charges Customer Demand Growth 30,399$ 30,490$ 30,660$ 30,710$ 30,920$
Other Fines and Forfeitures Customer Demand Growth - - - - -
Total Fines and Forfeitures 30,399$ 30,490$ 30,660$ 30,710$ 30,920$
Income from Property & Investments
5300 Interest Income - Pooled Cash [ Calculated ]75,000$ 90,360$ 98,440$ 110,280$ 113,480$
5305 Interest-Unrealzd Gains/Losses General Inflation - - - - -
5310 Interest Income Frm Othr Inv General Inflation - - - -
5360 Sale of Capital Assets (cash adj)General Inflation - - - -
5361 Donated Assets General Inflation - - - -
Other Income from Property & Investments General Inflation - - - -
Total Income from Property & Investments 75,000$ 90,360$ 98,440$ 110,280$ 113,480$
Interdepartmental
5430 Eng Labor General Inflation 15,931$ 16,330$ 16,740$ 17,160$ 17,590$
Other Interdepartmental General Inflation - - - -
Total Interdepartmental 15,931$ 16,330$ 16,740$ 17,160$ 17,590$
Other Revenues
5550 Prior Year Fee Refunds General Inflation -$ -$ -$ -$ -$
5636 Loss Recovery General Inflation 2,895 2,970 3,040 3,120 3,200
5639 Misc Reimbursement Exp.General Inflation 65,777 67,420 69,110 70,840 72,610
5664 MISC AR Write Offs General Inflation - - - - -
5674 Misc Revenues General Inflation - - - -
Other Other Revenues General Inflation - - - -
Total Other Revenues 68,672$ 70,390$ 72,150$ 73,960$ 75,810$
TOTAL REVENUES 14,216,752$ 21,309,940$ 22,288,920$ 23,224,130$ 24,313,100$
10/22/2021
CODE LINE ITEM ESCALATOR FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026
EXPENDITURES Projection Projection Projection Projection Projection
Personnel
6100 Reg Salaries Labor Inflation 1,784,827$ 1,838,370$ 1,893,520$ 1,950,330$ 2,008,840$
6101 Incentive Pay Labor Inflation - - - - -
6135 Hazard Pay Labor Inflation 31,602 32,550 33,530 34,540 35,580
6150 IOD Worker's Comp Labor Inflation - - - - -
6200 Overtime Salaries Labor Inflation 60,000 61,800 63,650 65,560 67,530
6210 Standby Pay Labor Inflation 26,000 26,780 27,580 28,410 29,260
6300 Parttimes Salaries Labor Inflation 18,776 19,340 19,920 20,520 21,140
6305 Intern Salaries Labor Inflation 7,429 7,650 7,880 8,120 8,360
6400 Temporary Help Labor Inflation - - - - -
6501 Health Insurance Labor - Health Insurance 318,780 340,710 363,300 386,480 410,170
6510 Life Insurance General Inflation 1,270 1,300 1,330 1,360 1,390
6511 AD&D - City Paid General Inflation 635 650 670 690 710
6520 Vision Insurance General Inflation - - - - -
6530 Medicare General Inflation 27,859 28,560 29,270 30,000 30,750
6629 Cell Phone Reimbursement General Inflation - - - - -
6630 Auto Allowance General Inflation 1,138 1,170 1,200 1,230 1,260
6640 Earned Leave Accrual Labor Inflation - - - - -
6651 Healthy Emp Awards General Inflation - - - - -
6653 Final Vacation Pay Labor Inflation 17,000 17,510 18,040 18,580 19,140
6654 Final Sick Leave Pay Labor Inflation - - - - -
6655 Disability General Inflation 16,146 16,550 16,960 17,380 17,810
6656 Unemployment General Inflation 9,129 9,360 9,590 9,830 10,080
6657 Worker's Compensation General Inflation 32,250 33,060 33,890 34,740 35,610
6720 PERS Labor - PERS (Normal Cost)220,696 242,665 249,945 257,444 265,167
6723 PERS Unfunded Liab Exp Labor - PERS (Normal Cost)204,586 304,066 315,460 330,581 337,284
6721 PERS (GASB 68 CONTRA ACCOUNT)Labor - PERS (Normal Cost)- - - - -
6722 Operation Expense General Inflation - - - - -
6730 Social Security General Inflation - - - - -
6740 Deferred Comp General Inflation 705 720 740 760 780
Other Personnel General Inflation - - - - -
Total Personnel Costs 2,778,829$ 2,982,811$ 3,086,475$ 3,196,554$ 3,300,861$
Maintenance & Equipment
7111 Other Mach & Equip General Inflation -$ -$ -$ -$ -$
7115 Vehicle Rentals General Inflation - - - - -
7119 Misc Rentals General Inflation 6,500 6,660 6,830 7,000 7,180
7120 Misc Leases General Inflation - - - - -
7210 Office Equip Maint General Inflation - - - - -
7211 Communication Equip Maintenance General Inflation 1,000 1,030 1,060 1,090 1,120
7215 Software Maintenance General Inflation 46,650 47,820 49,020 50,250 51,510
7216 Computer Maintenance General Inflation - - - - -
7220 Vehicle Maintenance General Inflation 15,000 15,380 15,760 16,150 16,550
7221 Wash and Wax General Inflation 4,500 4,610 4,730 4,850 4,970
7222 Other Equip Maint General Inflation - - - - -
7226 Pipeline Maintenance General Inflation 145,000 148,630 152,350 156,160 160,060
7230 Routine Building Maintenance General Inflation - - - - -
7241 Asphalt Repairs General Inflation 10,000 10,250 10,510 10,770 11,040
7249 Maintenance, Repair and Rehab General Inflation 3,000 3,080 3,160 3,240 3,320
7400 Audit General Inflation - - - - -
7410 Legal General Inflation - - - - -
7435 Administrative General Inflation - - - - -
7490 Misc Professional Services General Inflation 287,100 294,280 301,640 309,180 316,910
7500 Encina Services Gnrl Infltn + Cstmr Dmnd Grwth 4,665,000 4,795,430 4,942,510 5,074,310 5,235,890
7500 Encina Services (Pension Payoff)No Annual Increase (266,721) (273,876) (281,750) (289,850)
7550 Miscellaneous Outside Services General Inflation 293,500 300,840 308,360 316,070 323,970
7551 Bank Services General Inflation 31,800 32,600 33,420 34,260 35,120
7553 Comm Arts Support General Inflation - - - - -
7554 Regulatory/Permitting Fees General Inflation 45,000 46,130 47,280 48,460 49,670
7556 Misc Services General Inflation - - - - -
7558 Laundry and Uniform Mainteance General Inflation 5,000 5,130 5,260 5,390 5,520
7559 Electrical/SCADA Services General Inflation 15,600 15,990 16,390 16,800 17,220
7560 Water Sampling Services General Inflation - - - - -
7562 FOG Inspection Services General Inflation 61,000 62,530 64,090 65,690 67,330
7563 Smartcover WIFI/Alarm Services General Inflation 50,000 51,250 52,530 53,840 55,190
7564 Landscaping Services General Inflation 60,000 61,500 63,040 64,620 66,240
7710 Ads and Publishing General Inflation 2,000 2,050 2,100 2,150 2,200
7711 Dues and Subscriptions General Inflation 10,500 10,760 11,030 11,310 11,590
7712 Books and Publications General Inflation 500 510 520 530 540
7713 Audio Visual Materials General Inflation - - - - -
7715 Printing General Inflation 7,500 7,690 7,880 8,080 8,280
7720 Postage General Inflation 3,500 3,590 3,680 3,770 3,860
7725 Office Supplies General Inflation 5,000 5,130 5,260 5,390 5,520
7726 Office Furniture & Equipment General Inflation 5,000 5,130 5,260 5,390 5,520
7730 Computer Software General Inflation 10,000 10,250 10,510 10,770 11,040
7731 Misc. Computer Hardware General Inflation 3,000 3,080 3,160 3,240 3,320
7735 Promo Materials General Inflation 5,000 5,130 5,260 5,390 5,520
7745 Food Expense General Inflation - - - - -
7750 Heat and Light Utilities Inflation 285,000 292,130 299,430 306,920 314,590
10/22/2021
CODE LINE ITEM ESCALATOR FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026
7751 Telephone & Communications Utilities Inflation 12,000 12,300 12,610 12,930 13,250
7752 Waste Dispoal Services Utilities Inflation 10,000 10,250 10,510 10,770 11,040
7753 Water Utilities Inflation 36,000 36,900 37,820 38,770 39,740
7801 Building Maintenance General Inflation - - - - -
7810 Electrical Supplies General Inflation 500 510 520 530 540
7811 Janitorial Supplies General Inflation 300 310 320 330 340
7820 Parts-Vehicles General Inflation 500 510 520 530 540
7821 Parts-Equip General Inflation 169,000 173,230 177,560 182,000 186,550
7830 Rock and Mineral Products General Inflation 4,000 4,100 4,200 4,310 4,420
7831 Asphalt General Inflation 500 510 520 530 540
7850 Small Tools General Inflation 1,500 1,540 1,580 1,620 1,660
7851 Safety Equipment General Inflation 21,300 21,830 22,380 22,940 23,510
7852 Uniforms and Accessories General Inflation 5,000 5,130 5,260 5,390 5,520
7853 Meters/Fittings General Inflation - - - - -
7857 Personal Protective Equipment General Inflation - - - - -
7880 Gasoline and Oil Utilities Inflation 2,000 2,050 2,100 2,150 2,200
7883 Chemicals Chemicals Inflation 72,000 73,800 75,650 77,540 79,480
7886 Training Supplies General Inflation - - - - -
7896 Medical Supplies - Disposable General Inflation - - - - -
7899 Misc Supplies General Inflation 24,400 25,010 25,640 26,280 26,940
8110 Employee Training General Inflation 3,000 3,080 3,160 3,240 3,320
8120 Tuition Reimbursement General Inflation - - - - -
8130 Training/Training Related Travel General Inflation 3,000 3,080 3,160 3,240 3,320
8500 Depreciation Depreciation Funding 5,300,000 5,363,070 5,425,820 5,488,760 5,551,880
Note: Depreciation transfer for FYE 2023 to FYE 2026 not included in revenue requirement calculations for rate study.
8520 Conference Travel General Inflation 500 510 520 530 540
8522 Misc. Meals/Miles General Inflation 6,000 6,150 6,300 6,460 6,620
8530 Bad Debt Exp - Other Inv/Bills General Inflation 40,600 41,620 42,660 43,730 44,820
8532 Disposal of Assets General Inflation - - - - -
8534 Reg Over/Short General Inflation - - - - -
8542 NED Rental Assistance Payments No Annual Increase - - - - -
8544 Lateral Assistance Program No Annual Increase 25,000 25,000 25,000 25,000 25,000
8610 Settlements General Inflation - - - - -
8700 Contingencies No Annual Increase - - - - -
8809 Vehicle Direct Charges General Inflation 18,628 19,090 19,570 20,060 20,560
8810 Vehicle Maintenance (2)General Inflation 92,440 94,750 97,120 99,550 102,040
8811 Vehicle Replacement General Inflation 250,342 256,600 263,020 269,600 276,340
8830 General Liab General Inflation 98,220 100,680 103,200 105,780 108,420
8860 Information Technologies General Inflation 231,260 237,040 242,970 249,040 255,270
8890 Misc Interdepartmental Charges General Inflation 768,005 787,210 806,890 827,060 847,740
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 ]- 114,535 116,826 119,162 121,545
8921 Interest Expense [ Calculated ]- 92,929 90,639 88,302 85,919
8922 Int Exp-Capitalized Interest One Time Expense - - - - -
Other - Heat & Light No Annual Increase - - - - -
Other - Parts & Equipment No Annual Increase - - - - -
Other - Smart Covers No Annual Increase - - - - -
Addt'l Maintenance & Equipment General Inflation - - - - -
Other Maintenance & Equipment [ Calculated Below ](1,081,941) (1,103,580) (1,125,651) (1,148,164) (1,171,128)
Total Maintenance & Equipment Costs 12,196,704$ 12,391,613$ 12,656,547$ 12,907,290$ 13,189,417$
10/22/2021
CODE LINE ITEM ESCALATOR FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026
Capital Outlay
9005 Capital Outlay < $10k - New General Inflation -$ -$ -$ -$ -$
9006 Capital Outlay < $10k - Repl General Inflation - - - - -
9010 Cap Outlay - Vehicles General Inflation - - - - -
9020 Computer Equip > $10k - Repl General Inflation - - - - -
9021 Office Equipment General Inflation - - - - -
9022 Other Equipment General Inflation - - - - -
9030 Office Furniture General Inflation - - - - -
9050 Capitalized Assets General Inflation - - - - -
Other Capital Outlay General Inflation - - - - -
Total Capital Outlay Costs -$ -$ -$ -$ -$
Other Financing Uses
9999 Additional Transfer to Capital Fund One Time Expense -$ -$ -$ -$ -$
Transfer Out - Debt Service General Inflation - - - - -
Total Other Financing Uses Costs -$ -$ -$ -$ -$
TOTAL EXPENDITURES 14,975,533$ 15,374,425$ 15,743,022$ 16,103,844$ 16,490,278$
TOTAL W/O DEPR & TRANSFER TO CAPITAL 9,675,533$ 10,011,355$ 10,317,202$ 10,615,084$ 10,938,398$
RATE REVENUES WITHOUT INCREASES FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026
Commodity Usage Customer Demand Growth 14,007,136$ 14,048,576$ 14,128,254$ 14,151,796$ 14,248,623$
Sewer Pre-Treat Customer Demand Growth 19,614$ 19,672 19,783 19,816 19,952
Sewer Laterals Customer Demand Growth -$ - - - -
Other Charges for Services General Inflation -$ - - - -
14,026,750$ 14,068,248$ 14,148,037$ 14,171,613$ 14,268,575$
10/22/2021
WASTEWATER COST-OF-SERVICE STUDY | FYE 2021 WASTEWATER RATE STUDY | CARLSBAD
FINAL |OCTOBER 2021
Appendix C
CAPITAL IMPROVEMENT PLAN
SEWER REPLACEMENT PROJECTS FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026Include Project ID Project Title Total Budget55451 Agua Hedionda Lift Station Biological Monitoring and Maintenance 675,000$ 225,000$ 55371 Buena Interceptor Sewer Access Road Improvements 2,399,296 100,000 100,000 949,296 55011 Buena Interceptor Sewer Improvements 7,704,307 - 200,000 800,000 900,000 900,000
55441 Buena Interceptor Sewer Realignment - East Segment 3,040,000 - 408,646 1,013,000 1,013,000
55521 Cannon Road Lift Station Improvements 1,280,000 300,000 530,000
58011 Encina Capital Projects 176,218,362 11,786,234 7,132,000 7,737,000 8,487,000 8,240,000
55261 Foxes Landing Lift Station Wetwell and Pump Replacement 6,916,834 473,534
55471 North Batiquitos Access Road Improvement 640,000 50,000 200,000 90,000
55361 North Batiquitos Lift Station Forcemain Rehabilitation 1,711,743 300,000 545,897
55201 Odor and Corrosion Prevention Assessment 881,846 280,923
35723 Orion Center - 3,902,727
55421 SCADA Improvements 5,764,881 100,000 3,000,000 175,165 380,734
55131 Sewer Condition Assessment 3,535,992 250,000 100,000 100,000
38401 Sewer Lift Station Repairs and Upgrades 7,937,084 1,418,218 150,000 150,000 150,000 150,000
55481 Sewer Line Capacity Improvements 3,473,000 200,000 1,000,000 1,873,000
55031 Sewer System Rehabilitation and Replacement 43,065,897 1,610,637 1,200,000 1,850,000 1,900,000 1,000,000
60544 Terramar area coastal improvements -
55491 Vallecitos Interceptor Sewer Cleaning and CCTV 750,000 250,000
40153 Village/Bario traffic circles 159,452
55501 Villas Sewer Lift Station Replacement 2,052,614 934,675
55511 Vista Carlsbad Interceptor - Rehabilitation (VC1 and VC2)2,217,946 140,946 1,795,000
- -
Encina Supplemental Invoice 600,000 -
Project Adjustments from Dashboard - - - - - -
TOTAL SEWER REPLACEMENT PROJECTS 270,864,803$ 18,579,620$ 19,009,727$ 14,689,004$ 13,020,734$ 11,403,000$
SUMMARY OF SEWER REPLACEMENT PROJECTS UNESCALATED ESCALATED FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 20265-YEAR CIP (2022-2026)UNESCALATEDR&R 76,702,085$ 81,511,441$ R&R 18,579,620$ 19,009,727$ 14,689,004$ 13,020,734$ 11,403,000$ Expansion - - Expansion - - - - - TOTAL:76,702,085$ 81,511,441$ Total 18,579,620$ 19,009,727$ 14,689,004$ 13,020,734$ 11,403,000$
10-YEAR CIP (2022-2031)ESCALATED
R&R 134,874,085$ 155,532,599$ R&R 18,579,620$ 19,675,067$ 15,735,228$ 14,436,321$ 13,085,205$
Expansion - - Expansion - - - - -
TOTAL:134,874,085$ 155,532,599$ Total 18,579,620$ 19,675,067$ 15,735,228$ 14,436,321$ 13,085,205$
TOTAL CIP (2022-2035)
R&R 179,074,085$ 221,231,404$
Expansion - -
TOTAL:179,074,085$ 221,231,404$
SEWER CONNECTION PROJECTS FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026Include Project ID Project Title Total Budget55012 Buena Interceptor Sewer Improvements 700,000$ 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ 55531 El Fuerte Lift Station Pump Addition 960,000 -$ 360,000 600,000 55391 Faraday and El Camino Real Sewer Replacement - Orion to Palomar Airport Road1,620,000 140,000$ 1,200,000 55401 Las Palmas Trunk Sewer 4,019,000 -$ 100,000 200,000 256,000 2,907,000
Loan Repay - Sewer Conn to Sewer Repl 3,760,000 -$
55461 Sewer Modeling 624,077 55,089$ 50,000 50,000 50,000 50,000
55041 Sewer Monitoring Program (Capacity)1,392,000 -$ 70,000 70,000 70,000 70,000
34921 Vista Carlsbad Interceptor - Agua Hedionda LS and Forcemain (VC12-VC13)33,828,153 1,051,426$
55351 Vista Carlsbad Interceptor - Buena Vista Lift Station Improvements 5,504,530 79,265$ 200,000 800,000
38861 Vista Carlsbad Interceptor - Lagoon Bridge Replacement (VC11B)9,430,772 (53,671)$
39501 Vista Carlsbad Interceptor - Reach VC3 3,286,000 -$ 100,000 497,000 2,092,000
39491 Vista Carlsbad Interceptor - Reach VC14 To VC15 21,749,134 -$ 146,196
Project Adjustments From Dashboard - - - - - -
TOTAL SEWER CONNECTION PROJECTS 86,873,667$ 1,282,109$ 1,676,196$ 1,387,000$ 3,878,000$ 3,037,000$
SUMMARY OF SEWER CONNECTION PROJECTS UNESCALATED ESCALATED FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 20265-YEAR CIP (2022-2026)UNESCALATEDR&R -$ -$ R&R -$ -$ -$ -$ -$ Expansion 11,260,305 12,287,396 Expansion 1,282,109 1,676,196 1,387,000 3,878,000 3,037,000 TOTAL:11,260,305$ 12,287,396$ Total 1,282,109$ 1,676,196$ 1,387,000$ 3,878,000$ 3,037,000$
10-YEAR CIP (2022-2031)ESCALATED
R&R -$ -$ R&R -$ -$ -$ -$ -$
Expansion 14,810,305 16,809,334 Expansion 1,282,109 1,734,863 1,485,789 4,299,608 3,485,027
TOTAL:14,810,305$ 16,809,334$ Total 1,282,109$ 1,734,863$ 1,485,789$ 4,299,608$ 3,485,027$
TOTAL CIP (2022-2035)
R&R -$ -$
Expansion 18,730,305 22,636,016
TOTAL:18,730,305$ 22,636,016$
CIP TOTALS UNESCALATED ESCALATED COSTS(FYE 21 -35)FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 20265-YEAR CIP (2022-2026)UNESCALATEDR&R 76,702,085$ 81,511,441$ R&R 18,579,620$ 19,009,727$ 14,689,004$ 13,020,734$ 11,403,000$ Expansion 11,260,305 12,287,396 Expansion 1,282,109 1,676,196 1,387,000 3,878,000 3,037,000 TOTAL:87,962,390$ 93,798,837$ Total 19,861,729$ 20,685,923$ 16,076,004$ 16,898,734$ 14,440,000$
10-YEAR CIP (2022-2031)ESCALATED
R&R 134,874,085$ 155,532,599$ R&R 18,579,620$ 19,675,067$ 15,735,228$ 14,436,321$ 13,085,205$
Expansion 14,810,305 16,809,334 Expansion 1,282,109 1,734,863 1,485,789 4,299,608 3,485,027
TOTAL:149,684,390$ 172,341,934$ Total 19,861,729$ 21,409,930$ 17,221,017$ 18,735,928$ 16,570,232$
WASTEWATER COST-OF-SERVICE STUDY | FYE 2021 WASTEWATER RATE STUDY | CARLSBAD
FINAL |OCTOBER 2021
Appendix D
REVENUE REQUIREMENT ANALYSIS –OPTION 1
2022 2023 2024 2025 2026
CITY OF CARLSABAD
Wastewater Financial Model
Revenue Requirement
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026
CASH FLOW TESTS
REVENUES
Charges for Services 14,026,750$ 16,881,900$ 20,373,170$ 24,488,540$ 25,642,330$
Fines and Forfeitures 30,399 30,490 30,660 30,710 30,920
Income from Property & Investments 75,000 90,360 98,440 110,280 113,480
Interdepartmental 15,931 16,330 16,740 17,160 17,590
Other Revenues 68,672 70,390 72,150 73,960 75,810
TOTAL REVENUES 14,216,752$ 17,089,470$ 20,591,160$ 24,720,650$ 25,880,130$
EXPENDITURES
Ongoing Operating Expenses - Without Depreciation
Personnel 2,778,829$ 2,982,811$ 3,086,475$ 3,196,554$ 3,300,861$
Encina Operations 4,665,000 4,795,430 4,942,510 5,074,310 5,235,890
Maintenance & Equipment 3,313,645 2,921,765 2,998,940 3,077,456 3,157,846
Capital Outlay - - - - -
Transfer Out - Debt Service - - - - -
Other Operating Expenses
One-time Funding (Budget Analysis Amount)(1,081,941) (1,103,580) (1,125,651) (1,148,164) (1,171,128)
Rate Funded Capital - - 4,643,925 10,569,362 12,317,273
Debt Service - 207,464 207,464 207,464 207,464
Total Operating Expenditures 9,675,533$ 9,803,890$ 14,753,663$ 20,976,982$ 23,048,207$
Policy Expenditures
Replacement Funding - Depreciation 5,300,000$ -$ -$ -$ -$
Additional Transfer to Capital Fund - - - - -
Additions to Meet Minimum Fund Balances - - - - -
Total Policy Expenditures 5,300,000$ -$ -$ -$ -$
POLICY OVERRIDES (input in Dashboard)
Replacement Funding No Override -$ -$ -$ -$
Additional Transfer to Capital Fund -$ -$ -$ -$ -$
Additions to Meet Minimum Fund Balances (*)-$ -$ -$ -$ -$
TOTAL EXPENDITURES 14,975,533$ 9,803,890$ 14,753,663$ 20,976,982$ 23,048,207$
CASH FLOW SURPLUS (DEFICIT)(758,781)$ 7,285,580$ 5,837,497$ 3,743,668$ 2,831,923$
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026
DEBT COVERAGE TEST
1.25 x Bond Coverage
REVENUES
Operating Revenues 14,216,752$ 17,089,470$ 20,591,160$ 24,720,650$ 25,880,130$
Connection Fee Revenues Allowed
TOTAL REVENUES 14,216,752$ 17,089,470$ 20,591,160$ 24,720,650$ 25,880,130$
EXPENDITURES
Personnel 2,778,829$ 2,982,811$ 3,086,475$ 3,196,554$ 3,300,861$
Encina Operations 4,665,000 4,795,430 4,942,510 5,074,310 5,235,890
Maintenance & Equipment 3,313,645 2,921,765 2,998,940 3,077,456 3,157,846
Debt Service - 207,464 207,464 207,464 207,464
One-time Funding (Budget Analysis Amount)(1,081,941) (1,103,580) (1,125,651) (1,148,164) (1,171,128)
Coverage - 51,866 51,866 51,866 51,866
TOTAL EXPENDITURES 9,675,533$ 9,855,756$ 10,161,604$ 10,459,486$ 10,782,799$
BOND COVERAGE SURPLUS (DEFICIT)4,541,219$ 7,233,714$ 10,429,556$ 14,261,164$ 15,097,331$
10/25/2021
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026
REVENUE REQUIREMENT
Revenue Requirement (758,781)$ 7,233,714$ 5,837,497$ 3,743,668$ 2,831,923$
Cash Flow Driven Surplus Surplus Surplus Surplus
Month of implementation March January January January January
Calculated Increase (%)16.23%0.00%0.00%0.00%0.00%
Rate Increase Override (INPUT in Dashboard)20.00% 20.00% 20.00%4.00%4.00%
Rate Increase (%)20.00% 20.00% 20.00%4.00%4.00%
Cumulative Rate Increase (%) 27.4%55.1%86.0%93.5%101.2%
SFR Rate $35.43 $43.12 $51.74 $53.81 $55.96
CASH FLOW
Revenues Before Rate Increase 14,216,752$ 17,089,470$ 20,591,160$ 24,720,650$ 25,880,130$
Revenues From Rate Increase 2,805,350 3,376,380 4,074,634 979,542 1,025,693
Less: Rate Increase Delay (1,870,233) (1,688,190) (2,037,317) (489,771) (512,847)
Less: Expenditures (14,975,533) (9,803,890) (14,753,663) (20,976,982) (23,048,207)
Cash Flow 176,336$ 8,973,770$ 7,874,814$ 4,233,439$ 3,344,770$
RATE REVENUE REQUIREMENT 16,832,100$ 20,258,280$ 24,447,804$ 25,468,082$ 26,668,023$
Total Ending Balance 24,069,814$ 16,546,415$ 12,154,816$ 8,644,609$ 7,884,098$
908 Days 629 Days 448 Days 309 Days 273 Days
Operating Fund
Beginning Balance 8,111,281$ 4,302,990$ 4,280,002$ 4,411,170$ 4,539,328$
Cash Flow 176,336 8,973,770 7,874,814 4,233,439 3,344,770
Transfers from Operating to Capital Fund (3,984,627) (8,996,757) (7,743,647) (4,105,281) (3,206,259)
Ending Operating Fund Balance 4,302,990$ 4,280,002$ 4,411,170$ 4,539,328$ 4,677,839$
10/25/2021
WASTEWATER COST-OF-SERVICE STUDY | FYE 2021 WASTEWATER RATE STUDY | CARLSBAD
FINAL |OCTOBER 2021
Appendix E
REVENUE REQUIREMENT ANALYSIS –OPTION 2
2022 2023 2024 2025 2026
CITY OF CARLSABAD
Wastewater Financial Model
Revenue Requirement
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026
CASH FLOW TESTS
REVENUES
Charges for Services 14,026,750$ 21,102,370$ 22,070,930$ 22,992,020$ 24,075,300$
Fines and Forfeitures 30,399 30,490 30,660 30,710 30,920
Income from Property & Investments 75,000 90,360 98,440 110,280 113,480
Interdepartmental 15,931 16,330 16,740 17,160 17,590
Other Revenues 68,672 70,390 72,150 73,960 75,810
TOTAL REVENUES 14,216,752$ 21,309,940$ 22,288,920$ 23,224,130$ 24,313,100$
EXPENDITURES
Ongoing Operating Expenses - Without Depreciation
Personnel 2,778,829$ 2,982,811$ 3,086,475$ 3,196,554$ 3,300,861$
Encina Operations 4,665,000 4,795,430 4,942,510 5,074,310 5,235,890
Maintenance & Equipment 3,313,645 2,921,765 2,998,940 3,077,456 3,157,846
Capital Outlay - - - - -
Transfer Out - Debt Service - - - - -
Other Operating Expenses
One-time Funding (Budget Analysis Amount)(1,081,941) (1,103,580) (1,125,651) (1,148,164) (1,171,128)
Rate Funded Capital - - 221,920 5,988,947 9,225,134
Debt Service - 207,464 207,464 207,464 207,464
Total Operating Expenditures 9,675,533$ 9,803,890$ 10,331,657$ 16,396,567$ 19,956,067$
Policy Expenditures
Replacement Funding - Depreciation 5,300,000$ -$ -$ -$ -$
Additional Transfer to Capital Fund - - - - -
Additions to Meet Minimum Fund Balances - - - - -
Total Policy Expenditures 5,300,000$ -$ -$ -$ -$
POLICY OVERRIDES (input in Dashboard)
Replacement Funding No Override -$ -$ -$ -$
Additional Transfer to Capital Fund -$ -$ -$ -$ -$
Additions to Meet Minimum Fund Balances (*)-$ -$ -$ -$ -$
TOTAL EXPENDITURES 14,975,533$ 9,803,890$ 10,331,657$ 16,396,567$ 19,956,067$
CASH FLOW SURPLUS (DEFICIT)(758,781)$ 11,506,050$ 11,957,263$ 6,827,563$ 4,357,033$
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026
DEBT COVERAGE TEST
1.25 x Bond Coverage
REVENUES
Operating Revenues 14,216,752$ 21,309,940$ 22,288,920$ 23,224,130$ 24,313,100$
Connection Fee Revenues Allowed
TOTAL REVENUES 14,216,752$ 21,309,940$ 22,288,920$ 23,224,130$ 24,313,100$
EXPENDITURES
Personnel 2,778,829$ 2,982,811$ 3,086,475$ 3,196,554$ 3,300,861$
Encina Operations 4,665,000 4,795,430 4,942,510 5,074,310 5,235,890
Maintenance & Equipment 3,313,645 2,921,765 2,998,940 3,077,456 3,157,846
Debt Service - 207,464 207,464 207,464 207,464
One-time Funding (Budget Analysis Amount)(1,081,941) (1,103,580) (1,125,651) (1,148,164) (1,171,128)
Coverage - 51,866 51,866 51,866 51,866
TOTAL EXPENDITURES 9,675,533$ 9,855,756$ 10,161,604$ 10,459,486$ 10,782,799$
BOND COVERAGE SURPLUS (DEFICIT)4,541,219$ 11,454,184$ 12,127,316$ 12,764,644$ 13,530,301$
10/25/2021
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026
REVENUE REQUIREMENT
Revenue Requirement (758,781)$ 11,454,184$ 11,957,263$ 6,827,563$ 4,357,033$
Cash Flow Driven Surplus Surplus Surplus Surplus
Month of implementation March January January January January
Calculated Increase (%)16.23%0.00%0.00%0.00%0.00%
Rate Increase Override (INPUT in Dashboard)50.00%4.00%4.00%4.00%4.00%
Rate Increase (%)50.00%4.00%4.00%4.00%4.00%
Cumulative Rate Increase (%) 59.2%68.0%74.7%81.7%89.0%
SFR Rate $44.28 $46.71 $48.58 $50.52 $52.55
CASH FLOW
Revenues Before Rate Increase 14,216,752$ 21,309,940$ 22,288,920$ 23,224,130$ 24,313,100$
Revenues From Rate Increase 7,013,375 844,095 882,837 919,681 963,012
Less: Rate Increase Delay (4,675,583) (422,047) (441,419) (459,840) (481,506)
Less: Expenditures (14,975,533) (9,803,890) (10,331,657) (16,396,567) (19,956,067)
Cash Flow 1,579,011$ 11,928,097$ 12,398,681$ 7,287,404$ 4,838,539$
RATE REVENUE REQUIREMENT 21,040,125$ 21,946,465$ 22,953,767$ 23,911,701$ 25,038,312$
Total Ending Balance 25,472,489$ 20,918,146$ 16,678,683$ 11,698,574$ 9,377,867$
961 Days 796 Days 615 Days 419 Days 325 Days
Operating Fund
Beginning Balance 8,111,281$ 4,302,990$ 4,280,002$ 4,411,170$ 4,539,328$
Cash Flow 1,579,011 11,928,097 12,398,681 7,287,404 4,838,539
Transfers from Operating to Capital Fund (5,387,302) (11,951,084) (12,267,514) (7,159,245) (4,700,028)
Ending Operating Fund Balance 4,302,990$ 4,280,002$ 4,411,170$ 4,539,328$ 4,677,839$
10/25/2021
WASTEWATER COST-OF-SERVICE STUDY | FYE 2021 WASTEWATER RATE STUDY | CARLSBAD
FINAL |OCTOBER 2021
Appendix F
FUNCTIONAL ALLOCATION –OPTION 1
TEST YEAR:FYE 2022
ALLOCATION INDEX FYE 2022 TREATMENT FLOW BOD TSS COLLECTION
FLOW AS ALL OTHERS
Treatment Flow/BOD/TSS 37.8%35.7%26.5%0.0%0.0%
50 Percent Customer 0.0%0.0%0.0%0.0%100.0%
Admin 0.0%0.0%0.0%0.0%100.0%
Allocation 4 0.0%0.0%0.0%0.0%100.0%
Allocation 5 0.0%0.0%0.0%0.0%100.0%
Allocation 6 0.0%0.0%0.0%0.0%100.0%
Allocation 7 0.0%0.0%0.0%0.0%100.0%
Flow Only 100.0%0.0%0.0%0.0%0.0%
Customer Only 0.0%0.0%0.0%0.0%100.0%
As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Collections 5.0%5.0%90.0%0.0%
Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Vehicles 0.0%4.4%4.4%79.8%11.3%
Uniforms 0.0%5.0%5.0%90.0%0.0%
Miscellaneous Professional Services - 7490 0.0%0.0%0.0%0.0%100.0%
Miscellaneous Outside Services - 7550 0.0%0.0%0.0%0.0%100.0%
Capital Improvement Plan 20.0%18.5%19.9%41.5%0.0%
Weighted Average O&M 25.6%25.8%19.5%29.1%
Weighed Average Revenue Requirements 23.6%23.2%19.7%33.5%
PLANT IN SERVICE RCNLD TREATMENT FLOW BOD TSS COLLECTION
FLOW AS ALL OTHERS
IM - IMPROVEMENTS 7,187,260$ 100.0%0%
JV - JOINT VENTURE 52,584,214 37.8%35.7%26.5%0%
LD - LAND 2,629,102 100%
ME - MACHINERY & EQUIPMENT 533,994 100%
PP - PIPES & PUMPING 68,948,492 5.0%5.0%90.0%0%
Plant-In-Service Sub Total 131,883,062$ 19,884,649$ 22,213,611$ 17,380,804$ 69,240,902$ 3,163,096$
Reallocation of "As All Others"488,635$ 545,865$ 427,107$ 1,701,489$ (3,163,096)$
Total Allocation 131,883,062$ 20,373,284$ 22,759,476$ 17,807,911$ 70,942,391$ -$
Percentage Allocation 100%15.4%17.3%13.5%53.8%0.0%
10/22/2021
ALLOCATION INDEX FYE 2022 TREATMENT FLOW BOD TSS COLLECTION
FLOW AS ALL OTHERS
EXPENDITURES
Personnel
Reg Salaries 1,784,827$ Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Incentive Pay - Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Hazard Pay 31,602 Staff Allocation 0.0%2.6%2.6%47.7%47.0%
IOD Worker's Comp - Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Overtime Salaries 60,000 Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Standby Pay 26,000 Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Parttimes Salaries 18,776 Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Intern Salaries 7,429 Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Temporary Help - Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Health Insurance 318,780 Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Life Insurance 1,270 Staff Allocation 0.0%2.6%2.6%47.7%47.0%
AD&D - City Paid 635 Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Vision Insurance - Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Medicare 27,859 Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Cell Phone Reimbursement - Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Auto Allowance 1,138 Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Earned Leave Accrual - Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Healthy Emp Awards - Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Final Vacation Pay 17,000 Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Final Sick Leave Pay - Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Disability 16,146 Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Unemployment 9,129 Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Worker's Compensation 32,250 Staff Allocation 0.0%2.6%2.6%47.7%47.0%
PERS 220,696 Staff Allocation 0.0%2.6%2.6%47.7%47.0%
PERS Unfunded Liab Exp 204,586 Staff Allocation 0.0%2.6%2.6%47.7%47.0%
PERS (GASB 68 CONTRA ACCOUNT)- Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Operation Expense - Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Social Security - Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Deferred Comp 705 Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Other Personnel - Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Maintenance & Equipment
Other Mach & Equip -$ As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Vehicle Rentals - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Misc Rentals 6,500 Collections 0.0%5.0%5.0%90.0%0.0%
Misc Leases - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Office Equip Maint - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Communication Equip Maintenance 1,000 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Software Maintenance 46,650 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Computer Maintenance - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Vehicle Maintenance 15,000 Collections 0.0%5.0%5.0%90.0%0.0%
Wash and Wax 4,500 Collections 0.0%5.0%5.0%90.0%0.0%
Other Equip Maint - Collections 0.0%5.0%5.0%90.0%0.0%
Pipeline Maintenance 145,000 Collections 0.0%5.0%5.0%90.0%0.0%
Routine Building Maintenance - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Asphalt Repairs 10,000 Collections 0.0%5.0%5.0%90.0%0.0%
Maintenance, Repair and Rehab 3,000 Collections 0.0%5.0%5.0%90.0%0.0%
Audit - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Legal - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Administrative - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Misc Professional Services 287,100 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Encina Services 4,665,000 Treatment Flow/BOD/TSS 37.8%35.7%26.5%0.0%0.0%
Encina Services (Pension Payoff)- Treatment Flow/BOD/TSS 37.8%35.7%26.5%0.0%0.0%
Miscellaneous Outside Services 293,500 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Bank Services 31,800 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Comm Arts Support - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Regulatory/Permitting Fees 45,000 Collections 0.0%5.0%5.0%90.0%0.0%
Misc Services - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Laundry and Uniform Mainteance 5,000 Collections 0.0%5.0%5.0%90.0%0.0%
Electrical/SCADA Services 15,600 Collections 0.0%5.0%5.0%90.0%0.0%
Water Sampling Services - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
FOG Inspection Services 61,000 Collections 0.0%5.0%5.0%90.0%0.0%
Smartcover WIFI/Alarm Services 50,000 Collections 0.0%5.0%5.0%90.0%0.0%
Landscaping Services 60,000 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Ads and Publishing 2,000 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Dues and Subscriptions 10,500 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Books and Publications 500 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Audio Visual Materials - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Printing 7,500 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Postage 3,500 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Office Supplies 5,000 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Office Furniture & Equipment 5,000 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Computer Software 10,000 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Misc. Computer Hardware 3,000 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Promo Materials 5,000 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Food Expense - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Heat and Light 285,000 Collections 0.0%5.0%5.0%90.0%0.0%
Telephone & Communications 12,000 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Waste Dispoal Services 10,000 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Water 36,000 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Building Maintenance - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Electrical Supplies 500 Collections 0.0%5.0%5.0%90.0%0.0%
Janitorial Supplies 300 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
10/22/2021
ALLOCATION INDEX FYE 2022 TREATMENT FLOW BOD TSS COLLECTION
FLOW AS ALL OTHERS
Parts-Vehicles 500 Collections 0.0%5.0%5.0%90.0%0.0%
Parts-Equip 169,000 Collections 0.0%5.0%5.0%90.0%0.0%
Rock and Mineral Products 4,000 Collections 0.0%5.0%5.0%90.0%0.0%
Asphalt 500 Collections 0.0%5.0%5.0%90.0%0.0%
Small Tools 1,500 Collections 0.0%5.0%5.0%90.0%0.0%
Safety Equipment 21,300 Collections 0.0%5.0%5.0%90.0%0.0%
Uniforms and Accessories 5,000 Collections 0.0%5.0%5.0%90.0%0.0%
Meters/Fittings - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Personal Protective Equipment - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Gasoline and Oil 2,000 Collections 0.0%5.0%5.0%90.0%0.0%
Chemicals 72,000 Collections 0.0%5.0%5.0%90.0%0.0%
Training Supplies - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Medical Supplies - Disposable - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Misc Supplies 24,400 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Employee Training 3,000 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Tuition Reimbursement - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Training/Training Related Travel 3,000 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Depreciation Included Below As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Conference Travel 500 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Misc. Meals/Miles 6,000 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Bad Debt Exp - Other Inv/Bills 40,600 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Disposal of Assets - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Reg Over/Short - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
NED Rental Assistance Payments - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Lateral Assistance Program 25,000 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Settlements - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Contingencies - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Vehicle Direct Charges 18,628 Vehicles 0.0%4.4%4.4%79.8%11.3%
Vehicle Maintenance (2)92,440 Vehicles 0.0%4.4%4.4%79.8%11.3%
Vehicle Replacement 250,342 Vehicles 0.0%4.4%4.4%79.8%11.3%
General Liab 98,220 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Information Technologies 231,260 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Misc Interdepartmental Charges 768,005 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Mis Chg Back - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Utility Billing Chargeback - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Fiscal Agent Fees - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Arbitrage Costs - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Principal - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Interest Expense - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Int Exp-Capitalized Interest - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Other - Heat & Light - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Other - Parts & Equipment - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Other - Smart Covers - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Addt'l Maintenance & Equipment - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Other Maintenance & Equipment (1,081,941) [Non-Encina O&M]0.0%2.2%2.2%40.1%55.4%
Capital Outlay
Capital Outlay < $10k - New -$ Capital Improvement Plan 20.0%18.5%19.9%41.5%0.0%
Capital Outlay < $10k - Repl - Capital Improvement Plan 20.0%18.5%19.9%41.5%0.0%
Cap Outlay - Vehicles - Capital Improvement Plan 20.0%18.5%19.9%41.5%0.0%
Computer Equip > $10k - Repl - Capital Improvement Plan 20.0%18.5%19.9%41.5%0.0%
Office Equipment - Capital Improvement Plan 20.0%18.5%19.9%41.5%0.0%
Other Equipment - Capital Improvement Plan 20.0%18.5%19.9%41.5%0.0%
Office Furniture - Capital Improvement Plan 20.0%18.5%19.9%41.5%0.0%
Capitalized Assets - Capital Improvement Plan 20.0%18.5%19.9%41.5%0.0%
Other Capital Outlay - Capital Improvement Plan 20.0%18.5%19.9%41.5%0.0%
Operating Expenditures Sub Total 9,675,533$ 1,764,063$ 1,776,485$ 1,347,743$ 2,009,624$ 2,777,618$
Reallocation of "As All Others"710,344$ 715,346$ 542,703$ 809,225$ (2,777,618)$
Total Allocation 9,675,533$ 2,474,408$ 2,491,831$ 1,890,446$ 2,818,849$ -$
Percentage Allocation 100.0%25.6%25.8%19.5%29.1%
10/22/2021
ALLOCATION INDEX FYE 2022 TREATMENT FLOW BOD TSS COLLECTION
FLOW AS ALL OTHERS
OPERATING EXPENSES (from above)9,675,533$ 25.6%25.8%19.5%29.1%0.0%
NON-OPERATING EXPENSES
Replacement Funding - Depreciation (Depreciation)5,300,000 Capital Improvement Plan 20.0%18.5%19.9%41.5%0.0%
Rate Funded Capital - Capital Improvement Plan 20.0%18.5%19.9%41.5%0.0%
Debt Service - Capital Improvement Plan 20.0%18.5%19.9%41.5%0.0%
Additional Transfer to Capital Fund - Capital Improvement Plan 20.0%18.5%19.9%41.5%0.0%
Transfer Out - Debt Service - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Adjustment for Mid Year Increase 1,870,233 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
LESS: Offsetting Revenues
Over/Under Collection of Revenues (Available for Capital or Reserves)176,336$ As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Fines and Forfeitures (30,399) As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Income from Property & Investments (75,000) As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Interdepartmental (15,931) As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Other Revenues (68,672) As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Total Rate Revenues to be Collected 16,832,100$ 3,535,183$ 3,472,168$ 2,947,271$ 5,020,911$ 1,856,567$
Reallocation of "As All Others"438,268$ 430,456$ 365,383$ 622,459$ (1,856,567)$
Total Allocation 16,832,100$ 3,973,451$ 3,902,625$ 3,312,654$ 5,643,370$ -$
Percentage Allocation 100%23.6%23.2%19.7%33.5%0.0%
10/22/2021
WASTEWATER COST-OF-SERVICE STUDY | FYE 2021 WASTEWATER RATE STUDY | CARLSBAD
FINAL |OCTOBER 2021
Appendix G
FUNCTIONAL ALLOCATION –OPTION 2
TEST YEAR:FYE 2022
ALLOCATION INDEX FYE 2022 TREATMENT FLOW BOD TSS COLLECTION
FLOW AS ALL OTHERS
Treatment Flow/BOD/TSS 37.8%35.7%26.5%0.0%0.0%
50 Percent Customer 0.0%0.0%0.0%0.0%100.0%
Admin 0.0%0.0%0.0%0.0%100.0%
Allocation 4 0.0%0.0%0.0%0.0%100.0%
Allocation 5 0.0%0.0%0.0%0.0%100.0%
Allocation 6 0.0%0.0%0.0%0.0%100.0%
Allocation 7 0.0%0.0%0.0%0.0%100.0%
Flow Only 100.0%0.0%0.0%0.0%0.0%
Customer Only 0.0%0.0%0.0%0.0%100.0%
As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Collections 5.0%5.0%90.0%0.0%
Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Vehicles 0.0%4.4%4.4%79.8%11.3%
Uniforms 0.0%5.0%5.0%90.0%0.0%
Miscellaneous Professional Services - 7490 0.0%0.0%0.0%0.0%100.0%
Miscellaneous Outside Services - 7550 0.0%0.0%0.0%0.0%100.0%
Capital Improvement Plan 20.0%18.5%19.9%41.5%0.0%
Weighted Average O&M 25.6%25.8%19.5%29.1%
Weighed Average Revenue Requirements 23.6%23.2%19.7%33.5%
PLANT IN SERVICE RCNLD TREATMENT FLOW BOD TSS COLLECTION
FLOW AS ALL OTHERS
IM - IMPROVEMENTS 7,187,260$ 100.0%0%
JV - JOINT VENTURE 52,584,214 37.8%35.7%26.5%0%
LD - LAND 2,629,102 100%
ME - MACHINERY & EQUIPMENT 533,994 100%
PP - PIPES & PUMPING 68,948,492 5.0%5.0%90.0%0%
Plant-In-Service Sub Total 131,883,062$ 19,884,649$ 22,213,611$ 17,380,804$ 69,240,902$ 3,163,096$
Reallocation of "As All Others"488,635$ 545,865$ 427,107$ 1,701,489$ (3,163,096)$
Total Allocation 131,883,062$ 20,373,284$ 22,759,476$ 17,807,911$ 70,942,391$ -$
Percentage Allocation 100%15.4%17.3%13.5%53.8%0.0%
10/22/2021
ALLOCATION INDEX FYE 2022 TREATMENT FLOW BOD TSS COLLECTION
FLOW AS ALL OTHERS
EXPENDITURES
Personnel
Reg Salaries 1,784,827$ Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Incentive Pay - Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Hazard Pay 31,602 Staff Allocation 0.0%2.6%2.6%47.7%47.0%
IOD Worker's Comp - Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Overtime Salaries 60,000 Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Standby Pay 26,000 Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Parttimes Salaries 18,776 Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Intern Salaries 7,429 Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Temporary Help - Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Health Insurance 318,780 Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Life Insurance 1,270 Staff Allocation 0.0%2.6%2.6%47.7%47.0%
AD&D - City Paid 635 Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Vision Insurance - Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Medicare 27,859 Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Cell Phone Reimbursement - Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Auto Allowance 1,138 Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Earned Leave Accrual - Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Healthy Emp Awards - Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Final Vacation Pay 17,000 Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Final Sick Leave Pay - Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Disability 16,146 Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Unemployment 9,129 Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Worker's Compensation 32,250 Staff Allocation 0.0%2.6%2.6%47.7%47.0%
PERS 220,696 Staff Allocation 0.0%2.6%2.6%47.7%47.0%
PERS Unfunded Liab Exp 204,586 Staff Allocation 0.0%2.6%2.6%47.7%47.0%
PERS (GASB 68 CONTRA ACCOUNT)- Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Operation Expense - Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Social Security - Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Deferred Comp 705 Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Other Personnel - Staff Allocation 0.0%2.6%2.6%47.7%47.0%
Maintenance & Equipment
Other Mach & Equip -$ As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Vehicle Rentals - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Misc Rentals 6,500 Collections 0.0%5.0%5.0%90.0%0.0%
Misc Leases - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Office Equip Maint - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Communication Equip Maintenance 1,000 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Software Maintenance 46,650 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Computer Maintenance - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Vehicle Maintenance 15,000 Collections 0.0%5.0%5.0%90.0%0.0%
Wash and Wax 4,500 Collections 0.0%5.0%5.0%90.0%0.0%
Other Equip Maint - Collections 0.0%5.0%5.0%90.0%0.0%
Pipeline Maintenance 145,000 Collections 0.0%5.0%5.0%90.0%0.0%
Routine Building Maintenance - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Asphalt Repairs 10,000 Collections 0.0%5.0%5.0%90.0%0.0%
Maintenance, Repair and Rehab 3,000 Collections 0.0%5.0%5.0%90.0%0.0%
Audit - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Legal - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Administrative - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Misc Professional Services 287,100 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Encina Services 4,665,000 Treatment Flow/BOD/TSS 37.8%35.7%26.5%0.0%0.0%
Encina Services (Pension Payoff)- Treatment Flow/BOD/TSS 37.8%35.7%26.5%0.0%0.0%
Miscellaneous Outside Services 293,500 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Bank Services 31,800 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Comm Arts Support - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Regulatory/Permitting Fees 45,000 Collections 0.0%5.0%5.0%90.0%0.0%
Misc Services - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Laundry and Uniform Mainteance 5,000 Collections 0.0%5.0%5.0%90.0%0.0%
Electrical/SCADA Services 15,600 Collections 0.0%5.0%5.0%90.0%0.0%
Water Sampling Services - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
FOG Inspection Services 61,000 Collections 0.0%5.0%5.0%90.0%0.0%
Smartcover WIFI/Alarm Services 50,000 Collections 0.0%5.0%5.0%90.0%0.0%
Landscaping Services 60,000 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Ads and Publishing 2,000 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Dues and Subscriptions 10,500 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Books and Publications 500 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Audio Visual Materials - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Printing 7,500 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Postage 3,500 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Office Supplies 5,000 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Office Furniture & Equipment 5,000 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Computer Software 10,000 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Misc. Computer Hardware 3,000 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Promo Materials 5,000 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Food Expense - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Heat and Light 285,000 Collections 0.0%5.0%5.0%90.0%0.0%
Telephone & Communications 12,000 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Waste Dispoal Services 10,000 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Water 36,000 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Building Maintenance - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Electrical Supplies 500 Collections 0.0%5.0%5.0%90.0%0.0%
Janitorial Supplies 300 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
10/22/2021
ALLOCATION INDEX FYE 2022 TREATMENT FLOW BOD TSS COLLECTION
FLOW AS ALL OTHERS
Parts-Vehicles 500 Collections 0.0%5.0%5.0%90.0%0.0%
Parts-Equip 169,000 Collections 0.0%5.0%5.0%90.0%0.0%
Rock and Mineral Products 4,000 Collections 0.0%5.0%5.0%90.0%0.0%
Asphalt 500 Collections 0.0%5.0%5.0%90.0%0.0%
Small Tools 1,500 Collections 0.0%5.0%5.0%90.0%0.0%
Safety Equipment 21,300 Collections 0.0%5.0%5.0%90.0%0.0%
Uniforms and Accessories 5,000 Collections 0.0%5.0%5.0%90.0%0.0%
Meters/Fittings - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Personal Protective Equipment - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Gasoline and Oil 2,000 Collections 0.0%5.0%5.0%90.0%0.0%
Chemicals 72,000 Collections 0.0%5.0%5.0%90.0%0.0%
Training Supplies - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Medical Supplies - Disposable - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Misc Supplies 24,400 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Employee Training 3,000 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Tuition Reimbursement - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Training/Training Related Travel 3,000 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Depreciation Included Below As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Conference Travel 500 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Misc. Meals/Miles 6,000 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Bad Debt Exp - Other Inv/Bills 40,600 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Disposal of Assets - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Reg Over/Short - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
NED Rental Assistance Payments - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Lateral Assistance Program 25,000 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Settlements - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Contingencies - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Vehicle Direct Charges 18,628 Vehicles 0.0%4.4%4.4%79.8%11.3%
Vehicle Maintenance (2)92,440 Vehicles 0.0%4.4%4.4%79.8%11.3%
Vehicle Replacement 250,342 Vehicles 0.0%4.4%4.4%79.8%11.3%
General Liab 98,220 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Information Technologies 231,260 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Misc Interdepartmental Charges 768,005 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Mis Chg Back - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Utility Billing Chargeback - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Fiscal Agent Fees - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Arbitrage Costs - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Principal - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Interest Expense - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Int Exp-Capitalized Interest - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Other - Heat & Light - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Other - Parts & Equipment - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Other - Smart Covers - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Addt'l Maintenance & Equipment - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Other Maintenance & Equipment (1,081,941) [Non-Encina O&M]0.0%2.2%2.2%40.1%55.4%
Capital Outlay
Capital Outlay < $10k - New -$ Capital Improvement Plan 20.0%18.5%19.9%41.5%0.0%
Capital Outlay < $10k - Repl - Capital Improvement Plan 20.0%18.5%19.9%41.5%0.0%
Cap Outlay - Vehicles - Capital Improvement Plan 20.0%18.5%19.9%41.5%0.0%
Computer Equip > $10k - Repl - Capital Improvement Plan 20.0%18.5%19.9%41.5%0.0%
Office Equipment - Capital Improvement Plan 20.0%18.5%19.9%41.5%0.0%
Other Equipment - Capital Improvement Plan 20.0%18.5%19.9%41.5%0.0%
Office Furniture - Capital Improvement Plan 20.0%18.5%19.9%41.5%0.0%
Capitalized Assets - Capital Improvement Plan 20.0%18.5%19.9%41.5%0.0%
Other Capital Outlay - Capital Improvement Plan 20.0%18.5%19.9%41.5%0.0%
Operating Expenditures Sub Total 9,675,533$ 1,764,063$ 1,776,485$ 1,347,743$ 2,009,624$ 2,777,618$
Reallocation of "As All Others"710,344$ 715,346$ 542,703$ 809,225$ (2,777,618)$
Total Allocation 9,675,533$ 2,474,408$ 2,491,831$ 1,890,446$ 2,818,849$ -$
Percentage Allocation 100.0%25.6%25.8%19.5%29.1%
10/22/2021
ALLOCATION INDEX FYE 2022 TREATMENT FLOW BOD TSS COLLECTION
FLOW AS ALL OTHERS
OPERATING EXPENSES (from above)9,675,533$ 25.6%25.8%19.5%29.1%0.0%
NON-OPERATING EXPENSES
Replacement Funding - Depreciation (Depreciation)5,300,000 Capital Improvement Plan 20.0%18.5%19.9%41.5%0.0%
Rate Funded Capital - Capital Improvement Plan 20.0%18.5%19.9%41.5%0.0%
Debt Service - Capital Improvement Plan 20.0%18.5%19.9%41.5%0.0%
Additional Transfer to Capital Fund - Capital Improvement Plan 20.0%18.5%19.9%41.5%0.0%
Transfer Out - Debt Service - As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Adjustment for Mid Year Increase 4,675,583 As Weighted Average 0.0%0.0%0.0%0.0%100.0%
LESS: Offsetting Revenues
Over/Under Collection of Revenues (Available for Capital or Reserves)1,579,011$ As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Fines and Forfeitures (30,399) As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Income from Property & Investments (75,000) As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Interdepartmental (15,931) As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Other Revenues (68,672) As Weighted Average 0.0%0.0%0.0%0.0%100.0%
Total Rate Revenues to be Collected 21,040,125$ 3,535,183$ 3,472,168$ 2,947,271$ 5,020,911$ 6,064,592$
Reallocation of "As All Others"1,431,631$ 1,406,113$ 1,193,547$ 2,033,302$ (6,064,592)$
Total Allocation 21,040,125$ 4,966,814$ 4,878,281$ 4,140,818$ 7,054,213$ -$
Percentage Allocation 100%23.6%23.2%19.7%33.5%0.0%
10/22/2021
WASTEWATER COST-OF-SERVICE STUDY | FYE 2021 WASTEWATER RATE STUDY | CARLSBAD
FINAL |OCTOBER 2021
Appendix H
OPTION 2 RATE CALCULATIONS
Cost of Service Analysis Tables for Option
The following tables show the results of the cost of service analysis discussed in Section based on
Option rate increases. The table numbers below correspond to those in the report body.
Table Option - Expenditures and Offsetting Revenues (in millions)
FYE &
O&M Expenses )*.+,
Replacement Funding )-..&
Adjustment for Mid-Year Increase ).+,
Operating Cash Flows ).-,
Less: Offsetting Revenues ()&.*)
Rate Revenues Required .
* Line or column totals may not tie due to rounding
Table . Option - Functional Allocation Factors
Allocation Factor Treatment
Flow BOD TSS Collection
Flow
As All Other
(Weighted
Average)
Total
Treatment Flow/BOD/TSS .8.,% .-.8% +.-% &.&% &.&% &&%
Collections &.&% -.&% -.&% *&.&% &.&% &&%
Staff Allocation &.&% .+% .+% 8.8% 8.&% &&%
Vehicles &.&% .% .% 8*.,% ..% &&%
Capital Improvement Plan &.&% ,.-% *.*% .-% &.&% &&%
Weighted Average O&M -.+% -.,% *.-% *.% N/A &&%
Weighted Average Total Rate
Revenue Requirements ..+% ..% *.8% ...-% N/A &&%
* Line or column totals may not tie due to rounding
No change from Option .
Table Option - CIP Functional Allocation CIP Allocation Treatment Flow BOD TSS Collection Flow Ten-Year Total Encina Projects - Treatment )*.& )+., ),.*. - ),.,& Carlsbad Projects - Collections - - - )+.,, )+.,, Less: Debt Funded Projects - - - ().+&) ().+&) Allocated Cash Funded CIP Costs .. /.0 0..1 /.0 2.0 CIP Percentage Allocation .% 0.2% ...% .2% % * Line or column totals may not tie due to rounding No change from Option . Table - Option - O&M Functional Allocation O&M Cost Allocation Treatment Flow BOD TSS Collection Flow As All Other (Weighted Average) Total Personnel - )&.&8 )&.&8 )... ).. ).8, Maintenance & Equipment - )&.&+ )&.&+ ). ).&8 )... Encina Services ).8+ ).++ ). - - ).+8 Capital Outlay - - - - - - Budget Adjustment - ()&.&) ()&.&) ()&..) ()&.+&) ().&,) Allocated Costs .6/ .60 .12 . .60 ../0 Reallocation of "As All Other" )&.8 )&.8 )&.- )&., ().8,) - Total O&M Allocation .6 .. .0. .0 - ../0 O&M Percentage Allocation 2./% 2.0% ..2% ..% % * Line or column totals may not tie due to rounding No change from Option .
Table + Option - Revenue Requirements Functional Allocation Revenue Requirements Allocation Treatment Flow BOD TSS Collection Flow As All Other (Weighted Average) Total Allocated O&M ).8 ).* ).,* )., - )*.+, Replacement Funding ).&+ )&.*, ).&+ ).& - )-..& Adjustment for Mid-Year Increase - - - - ).+, ).+, Operating Cash Flows - - - - ).-, ).-, Less: Offsetting Revenues - - - - ()&.*) ()&.*) Allocated Costs 1.2 1.6 ..2 2. /./ . Reallocation of "As All Other" ).. ). ).* ).&. ()+.&+) - Total O&M Allocation ..6 .00 . 6.2 . O&M Percentage Allocation 1./% 1.% ..6% 11.2% * Line or column totals may not tie due to rounding
Rate Design Analysis Tables for Option
The following tables show the results of the cost of service analysis discussed in Section - based on Option
rate increases. The table numbers below correspond to those in the report body.
Table , Option - Billed Units by Customer Class for FY &/
Customer Class Monthly Account Flow BOD TSS
GROUP I - SFR & Minimum Charges ,8 ,-,-&- ,,,+,, ,,,+,,
GROUP I - MFR/Mobile Homes *88 -8,-,+ ++,* ++,*
GROUP II - Commercial ,.8 .,+-, 88,*+* -8,-
GROUP III - Commercial . .-- .-*,,& 8.+,.8 +-,,&
GROUP IV - Commercial ., &-,&,+ -.8,*&* +,&8
Other (No Accounts) ++ -,,*&8 8,,& .+,88
Brewery - B , ,,*- ,,+8 ,+-
Brewery - B .,.&, ..,+ ,-&,
GROUP VI - Large Volume (no accounts) & & & &
Industrial Pretreatment Class III + ,.,+ ,,8. .,.&
GROUP V - Elementary Schools 8 ,,8* 8,.8 -,*&
GROUP V - Junior High Schools -,, ,. .,-8
GROUP V - High Schools 8 *,+-8 8,,.+ +,&,
GROUP V - Boarding Schools . -,.8. ,.+& .,.-
Total /,02 1,6/,/22 2,1,11/ 2,1,01
* Line or column totals may not tie due to rounding
No change from Option .
Table * Option - Unit Costs per Billable Constituents
Unit Cost Calculation Treatment
Flow BOD TSS Collection
Flow
Allocated Rate Revenue (Millions) ).*8 ).,, ). )8.&-
Unit Basis for Rate Design
Estimated
Sewer Flows
(HCF)
Estimated
BOD
Discharges
(lbs)
Estimated
TSS
Discharges
(lbs)
Estimated
Sewer Flows
(HCF)
FYE & Billed Units .,8,,,-- -,,,,8 ,*+,-. .,8,,,--
FYE Unit Costs .1 ..1 .01 ..
per HCF per lb per lb per HCF
* Line or column totals may not tie due to rounding
Table & Option - Group I Unit Cost per HCF Calculation
Group I Unit Cost per HCF
Example
Concentration
(mg/l)
Mass Load
lb/HCF Unit Cost /lb Unit Cost /HCF
Discharged
Item A B C D
BOD && .- )&.*. ).8
TSS && .- )&.,. ).&.
Treatment Flow N/A N/A N/A )..
Collections Flow N/A N/A N/A ).*&
Total Unit Cost per HCF N/A N/A N/A 2.1
Mass Load, lb per HCF (B) = [Concentration, mg/l (A)] x [..8,- gallons per L] x [8, gallons per HCF] /
[-.,-* mg per lb]
Unit Cost, )/HCF (D) = [Mass Load, lb/HCF (B)] x [Unit Cost, )/lb (C)]
* Line or column totals may not tie due to rounding
Table Option - All Classes Unit Cost per HCF Calculation
Customer Class Unit Costs
per HCF Discharged
BOD
(mg/l)
BOD
(/HCF)
TSS
(mg/l)
TSS
(/HCF)
Flow
(/HCF)
Total Per
HCF
Discharged
GROUP I - SFR & Minimum
Charges && ).8 && ).&. )... )-..
GROUP I - MFR/Mobile Homes && ).8 && ).&. )... )-..
GROUP II - Commercial .& )&.8+ )&.+ )... ).+
GROUP III - Commercial . ., ).* 8* ). )... )+.-*
GROUP IV - Commercial ,& ).8, +,& )..- )... ).-
Other (No Accounts) .& )&.8+ && )&.- )... ).-
Brewery - B +- )8.., ,& )., )... ).8*
Brewery - B +& )*..* &*& )-.+ )... ),.
GROUP VI - Large Volume (no
accounts) ,& )&.8 ,& )&. )... ).
Industrial Pretreatment Class III ** ).8 88 ).+ )... )8.
GROUP V - Elementary Schools .& )&.8+ && )&.- )... ).-
GROUP V - Junior High Schools .& )&.8+ && )&.- )... ).-
GROUP V - High Schools .& )&.8+ && )&.- )... ).-
GROUP V - Boarding Schools .& )&.8+ && )&.- )... ).-
* Line or column totals may not tie due to rounding
Table Option - Group I Monthly Rate Calculation
Unit Cost
/HCF
Discharged
EDU Flow
Factor
Estimated
Monthly
Discharge
(HCF)
Proposed
Monthly
Rate (per
Account)
Rounded
GROUP I – Single-Family & Minimum Charges )-.. .&& ,.8 ).*
Single Family with ADU )-.. .-& .& )+8..+
Table . Option - Rates per HCF of Water Consumption Calculation
Usage Based Rates Unit Cost /HCF
Discharged
Return to
Sewer Factor
Calculated Monthly Rate (per
HCF of Water Used)
Rounded
GROUP I – Multi-
Family/Mobile Homes )-.. *-% )-.+
GROUP II - Commercial ).+ *-% )..*
GROUP III - Commercial . )+.-* *-% )+.+
GROUP IV - Commercial ).- *-% )&.*-
Other (No Accounts) ).- *-% ).*
Brewery - B ).8* ,.% ).&
Brewery - B ),. ,.% )-.&-
GROUP VI - Large Volume
(no accounts) ). *-% )..*
Industrial Pretreatment
Class III )8. *-% )8.&8
Table Option - Schools Rates Calculation
Group V - Schools Rates
Unit Cost
/HCF
Discharged
Assumed
Flow per
Student
(gpd)
Assumed
Flow per
Student
(HCF per
Month)
Proposed
Monthly Rate
(per Student)
Rounded
GROUP V - Elementary Schools ).- ., &. )&.,,
GROUP V - Junior High Schools ).- 8. &.. )..
GROUP V - High Schools ).- *.+ &. ).8+
GROUP V - Boarding Schools ).- -&.& .& )*.8
Table + Option - Proposed Wastewater Rates by Customer Class
Customer Class Current
Rate
FYE FYE 1 FYE FYE 2 FYE /
2.%
w/COS() .% () .% () .% () .% ()
Group I - Residential - Monthly Flat Rate
Single Family Resident (SFR) )*.- ).* )+.8 ),.-8 )-&.- )-.-
SFR w/ Second Dwelling Unit )., )+8..+ )8&.&+ )8.,+ )8-.88 )8,.,&
Group I - Residential - Rates per HCF
Multi Family Resident (MFR)
(per HCF) ).., )-.+ )-..8 )-.-* )-., )+.&
Mobile Home (per HCF) ).., )-.+ )-..8 )-.-* )-., )+.&
Commercial -Rates per HCF
GROUP II - Commercial ).,, )..* ).-8 ).8- ).* )-..
GROUP III - Commercial . ).., )+.+ )+.- )+.88 )8.& )8..
GROUP IV - Commercial ),.& )&.*- )..* )., ).. ).,
Industrial Pretreatment Class III )., )8.&8 )8..- )8.+ )8.*- ),.8
Group V - School - Monthly Rates per Student
Elementary School (per student) )&.-* )&.,, )&.* )&.*+ )&.** ).&.
Junior High School (per student) )&.,8 ).. ).., ).. ).* ).--
High School (per student) ).8 ).8+ )., ).* ).*, ).&+
Boarding School (per student) )+.&* )*.8 )*.- )*.* )&.. )&.8.
Breweries -Rates per HCF
B – Brewery without a
restaurant and hauls waste for
outside treatment
).,, )..* ).-8 ).8- ).* )-..
B – Brewery without a
restaurant that does not haul
waste for outside treatment
)*.. ).& ).+* )..& )..8. ).,
B. – Brewery with a restaurant
and hauls waste for outside
treatment
),.& )&.*- )..* )., ).. ).,
B – Brewery with a restaurant
that does not haul waste for
outside treatment
).+& )-.&- )-.++ )+., )+.*. )8.+
Other - Rate per HCF ).*8 ).* ).8 ).+- ).,. )-.&
Note:
() Proposed rates for FYE & include a cost-of-service adjustment and increases for specific rates vary from the -&.&-percent overall rate
revenue increase.
() Proposed rates for FYE and subsequent years are calculated by applying the proposed overall rate revenue increase to the FYE rate
proportionally.
No change from Option .
WASTEWATER COST-OF-SERVICE STUDY | FYE 2021 WASTEWATER RATE STUDY | CARLSBAD
FINAL |OCTOBER 2021
Appendix I
PROJECTED FLOW AND LOADS
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026
Customer Growth 0.49%0.30%0.57%0.17%0.68%
Estimated Sewer Flows (HCF)
GROUP I - SFR & Minimum Charges 2,254,505 2,261,175 2,273,999 2,277,789 2,293,373
GROUP I - MFR/Mobile Homes 517,586 519,117 522,062 522,931 526,509
GROUP II - Commercial 2 341,658 342,669 344,613 345,187 347,549
GROUP III - Commercial 3 359,280 360,343 362,387 362,990 365,474
GROUP IV - Commercial 4 105,086 105,397 105,995 106,172 106,898
Other 58,907 59,082 59,417 59,516 59,923
Brewery - B2 2,895 2,904 2,920 2,925 2,945
Brewery - B4 3,308 3,318 3,337 3,342 3,365
GROUP VI - Large Volume (no accounts)- - - - -
Industrial Pretreatment Class III 44,386 44,518 44,770 44,845 45,152
GROUP V - Elementary Schools 8,794 8,820 8,870 8,885 8,946
GROUP V - Junior High Schools 5,218 5,233 5,263 5,272 5,308
GROUP V - High Schools 9,657 9,685 9,740 9,756 9,823
GROUP V - Boarding Schools 5,373 5,389 5,420 5,429 5,466
Total Estimated Sewer Flows (HCF)3,716,655 3,727,650 3,748,792 3,755,039 3,780,731
Estimated BOD Discharges (lbs)
GROUP I - SFR & Minimum Charges 2,814,688 2,823,015 2,839,026 2,843,757 2,863,214
GROUP I - MFR/Mobile Homes 646,192 648,104 651,779 652,866 657,332
GROUP II - Commercial 2 277,969 278,791 280,373 280,840 282,761
GROUP III - Commercial 3 736,371 738,550 742,739 743,976 749,067
GROUP IV - Commercial 4 537,909 539,501 542,560 543,465 547,183
Other 47,804 47,945 48,217 48,297 48,628
Brewery - B2 22,867 22,935 23,065 23,103 23,261
Brewery - B4 33,246 33,344 33,533 33,589 33,819
GROUP VI - Large Volume (no accounts)- - - - -
Industrial Pretreatment Class III 82,723 82,967 83,438 83,577 84,149
GROUP V - Elementary Schools 7,137 7,158 7,198 7,210 7,260
GROUP V - Junior High Schools 4,234 4,247 4,271 4,278 4,307
GROUP V - High Schools 7,836 7,860 7,904 7,917 7,971
GROUP V - Boarding Schools 4,360 4,373 4,398 4,405 4,436
Total BOD Discharge (lbs)5,223,336 5,238,789 5,268,501 5,277,281 5,313,388
Estimated TSS Discharges (lbs)
GROUP I - SFR & Minimum Charges 2,814,688 2,823,015 2,839,026 2,843,757 2,863,214
GROUP I - MFR/Mobile Homes 646,192 648,104 651,779 652,866 657,332
GROUP II - Commercial 2 257,115 257,876 259,339 259,771 261,548
GROUP III - Commercial 3 625,480 627,330 630,888 631,939 636,263
GROUP IV - Commercial 4 446,071 447,391 449,928 450,678 453,761
Other 36,772 36,881 37,090 37,152 37,406
Brewery - B2 14,645 14,689 14,772 14,797 14,898
Brewery - B4 22,508 22,575 22,703 22,740 22,896
GROUP VI - Large Volume (no accounts)- - - - -
Industrial Pretreatment Class III 132,230 132,622 133,374 133,596 134,510
GROUP V - Elementary Schools 5,490 5,506 5,537 5,546 5,584
GROUP V - Junior High Schools 3,257 3,267 3,285 3,291 3,313
GROUP V - High Schools 6,028 6,046 6,080 6,090 6,132
GROUP V - Boarding Schools 3,354 3,364 3,383 3,389 3,412
Total TSS Discharge (lbs)5,013,831 5,028,664 5,057,184 5,065,611 5,100,270
FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026
Customer Accounts
GROUP I - SFR & Minimum Charges 22,724 22,792 22,921 22,959 23,116
GROUP I - MFR/Mobile Homes 977 980 985 987 994
GROUP II - Commercial 2 1,237 1,240 1,247 1,250 1,258
GROUP III - Commercial 3 355 356 358 358 361
GROUP IV - Commercial 4 238 239 240 241 242
Other 266 267 268 269 271
Brewery - B2 8 8 8 8 8
Brewery - B4 4 4 4 4 4
GROUP VI - Large Volume (no accounts)- - - - -
Industrial Pretreatment Class III 262 263 264 265 267
GROUP V - Elementary Schools 17 17 17 17 17
GROUP V - Junior High Schools 22 22 22 22 22
GROUP V - High Schools 72 72 72 73 73
GROUP V - Boarding Schools 3 3 3 3 3
Total Accounts 26,185 26,262 26,411 26,455 26,636
Number of Students
GROUP V - Elementary Schools 6,852 6,872 6,911 6,923 6,970
GROUP V - Junior High Schools 2,710 2,718 2,734 2,738 2,757
GROUP V - High Schools 3,762 3,773 3,795 3,801 3,827
GROUP V - Boarding Schools 287 288 290 290 292