Item 1 Visual presentation presented by staff at meeting 1-8-19Water and Sewer Rates Workshop
January 8, 2019
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07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18MillionsWater Consumption Trend
Residential
Irrigation/Landscape/Agri/Other
Commercial/Non-Residential
FY 2017-18
4.5 million units/
10,381 AF
1 unit = 748 gallons 1 acre foot = 325,851 gallons
SDCWA Rates & Charges
2018 SDCWA
Final
2019 SDCWA
Final
Change over
Current
Readiness-to-Serve Charge 37,202 32,668 -12.19%
Capacity Charge Allocation (5 YRA)19,276 15,577 -19.19%
Supply Reliability Charge (5 YRA)61,584 62,290 1.15%
Customer Service Charge (3 YRA)50,290 44,464 -11.58%
Storage Charge Allocation (3 YRA)134,932 122,345 -9.33%
Infrastructure Access Charge ( per meter)50,056 50,150 0.19%
Total Monthly 353,340 327,494 -7.31%
Total Annual 4,240,081 3,929,932
Final
Commodity/AF (including trans. charge)$1,009 $1,029 1.98%
San Diego County Water Authority
Rates and Charges
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Water Utility Operating Costs $25,223,880
City Costs
Water Treatment
Water Transmission and Distribution
Reclaimed Water Distribution
General Administration
Met/SDCWA/SDG&E Costs
Water Supply/Pumping Energy
Supply Reliability Charge (50%)
Storage Allocation
Readiness-to-serve
Capacity Charge Allocation (50%)
Poway Water Utilities
City
Costs
32%
Water
Supply/Energy
68%
Water Utility System Rehabilitation/Loan Repayment/Other $1,529,170
Grand Total Water Utilities Revenue Requirement $26,753,050
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Poway Water Utilities
Base Costs Recovered by Fixed Service/Meter Charges -$5,455,350
City Costs
Meter Reading
Billing
Water Department Administration
Accounting, Payroll, Insurance
General Administration
Met/SDCWA Costs
Readiness-to-serve
Capacity Charge Allocation (50%)
Supply Reliability Charge (50%)
Infrastructure Access (Meter) Charge
Customer Service Charge
System Rehabilitation (50% allocated to Base/Capacity)
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City
Costs
54%Met/SDCWA
Costs
28%
System
Rehab.
18%
Consumption Costs Recovered by Commodity (volumetric) Charges -$21,297,700
City Costs
Water Treatment
Water Transmission and Distribution
Reclaimed Water Distribution
Met/SDCWA/SDG&E Costs
Water Supply/Pumping Energy
Supply Reliability Charge (50%)
Storage Allocation
Readiness-to-serve
Capacity Charge Allocation (50%)
System Rehabilitation (50% allocated to Supply)
Poway Water Utilities
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City Costs
22%
System
Rehab.
4%
Water
Supply/Energy
61%
Met/SDCWA
Costs
13%
Poway Water Utilities
Revenues
7
Meter/Fixed Charges
16%
Commodity
79%
Drought Recovery
Surcharge
5%
Poway Water Utilities
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Proposed
Increase
Water Service
(Fixed Meter Charge)7.5%
Water Commodity 4.5%
Drought Surcharge
(Discontinued
December 2018)
$.00
Water Fund Balance (Reserve)
FY 2017-18 Estimated
Beginning Balance 7/1/2017 $1,775,080
General Fund Loan Repayment ($401,250)
Preliminary Closing (sources less uses)+$4,002,836
FY 2018-19 Proposed
Beginning Balance 7/1/2018 $5,240,296
General Fund Loan Repayment ($537,620)
Projected Uses $26,753,050
Projected Sources $27,643,900
Projected Fund Balance (Reserve) (21%)$5,593,526
Target Reserve Level -20% of Annual Operating $5,064,076
Poway Water Utilities
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Poway Sewer Utilities
Sewer Utilities Operating Costs $8,709,400
City Costs
Sewer Pumping and Transportation
Billing
Accounting, Payroll, Insurance
General Administration
Treatment and Disposal
San Diego Metro
Bernardo System
Penasquitos System
Sewer Utility System Rehabilitation/Other $608,000
Grand Total Sewer Utilities Revenue Requirement $9,317,400
City Costs
48%Metro/Penasquitos/
Bernardo Systems
52%
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Poway Sewer Utilities
Grand Total Revenue for Cost Recovery $8,481,400
Sources of Revenue to Recover System Use
Bi-Monthly Meter Service Charges
Single Family Residential -Universal Capacity
Non-Residential -Meter Size Based Capacity $1,754,900
Interest, Other Service Fees $285,400
Revenue from Sewer Flow
(Residential based on portion of winter water use)
Tier No. of Accounts
Tier 1 1,775
Tier 2 4,848
Tier 3 1,881
Tier 4 989
Tier 5 597
Tier 6 278
Tier 7 (max.)281
Non-Residential 2,354
Total Bi-Monthly Sewer Flow Charges $6,441,100
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Fixed
Capacity/Service
Charges
24%
System
Use/Volumetric
Charges
76%
Poway Sewer Utilities
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Proposed
Increase
Fixed Sewer Service Charge 3.25%
Sewer Commodity 3.25%
Sewer Fund Balance (Reserve)
FY 2017-18 Estimated
Beginning Balance 7/1/2017 $15,048,035
Preliminary Closing (sources less uses*)+$431,853
FY 2018-19 Proposed
Beginning Balance 7/1/2018 $15,479,888
Projected Uses $9,317,350
Projected Sources $8,481,400
Use Fund Balance (Reserve)($835,950)
Reserve –Metro Pure-Water Program Funds $14,643,938
Poway Sewer Utilities
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Current Proposed
Increase/Decrease
(reflected beginning
May 2019 billing)
Water Service
(Fixed Meter Charge)$39.33 $42.28 $2.95
Water Commodity $128.25 $134.00 $5.75
Temporary Drought
Recovery Surcharge $18.75 $0.00 -$18.75
Sewer $71.15 $73.46 $2.31
Total Combined Bill $257.48 $249.74 Bimonthly -$7.74
Monthly -$3.87
Single-Family Residential Customer
Combined Bimonthly Water and Sewer Bill
(25 Units, Most Common 3/4-inch Water Meter, Sewer Tier 2)
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Council direction on proposed rates
Prop. 218 notices mailed by January 16, 2019
Formal protest period Jan. 16 -March 5, 2019
Public Hearing on March 5, 2019
New rates effective March 2019(appearing on bills beginning May 2019)
Next Steps
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Water and Sewer Rates Workshop
January 8, 2019