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Item 6 - Visual Slideshow provided by Staff at Meeting
SET PUBLIC HEARING FOR PROPOSED FOUR-YEAR WATER, RECYCLED WATER, AND WASTEWATER RATES SEPTEMBER 7, 2021 •Water •Rate drivers •Proposed revenue increases •Wastewater •Rate drivers •Proposed revenue increases •Timeline Agenda •Rate drivers •Imported water costs •Represents ~60% of operating costs •SDCWA average rates and charges increased 6.87% •Capital improvement projects •Over $64M in existing infrastructure is being maintained •Maintenance/replacement currently proposed at ~$12.6M/year for the next 5 years, not incl. $13.7M in existing •Proposed increases •January 2022: 10.0% •January 2023: 9.0% •January 2024: 8.0% •January 2025: 8.0% Water Rate Drivers and Proposed Increases 1.Average single-family household •Bi-monthly consumption: 37 units •Meter Size: ¾” Water Program Financing Options (Pay-Go) Pay -Go Funding Option Existing Jan. 2022 Jan. 2023 Jan. 2024 Jan. 2025 Revenue Increase (%)N/A 45%15%10%10% Estimated Water Bill1 $249.33 $362.62 $418.38 $461.73 $509.45 Impact ($)N/A $113.29 $55.76 $43.35 $47.72 •Three Series: •2021 (Nov.) -$14.8M •2023 (Mar.) -$30.3M •2024 (Aug.) -$24.5M 1.Settlement benefits proposed rate increases, $1,167,915 MWD settlement prevents an 18% increase in Jan. 2022, or ~$20 bi-monthly 2.Average single-family household •Bi-monthly consumption: 37 units •Meter Size: ¾” Water Program Financing Options (Debt) Pay -Go Funding Option Existing Jan. 2022 Jan. 2023 Jan. 2024 Jan. 2025 Revenue Increase (%)1 N/A 10%9%8%8% Estimated Water Bill2 $249.33 $275.08 $300.70 $325.90 $353.09 Impact ($)N/A $25.75 $25.62 $25.20 $27.19 1.Average single-family household •Bi-monthly consumption: 37 units •Meter Size: ¾” Water Program Financing Options (Not Needed) Pay -Go Funding Option Existing Jan. 2022 Jan. 2023 Jan. 2024 Jan. 2025 Revenue Increase (%)N/A 7%7%7%5% Estimated Water Bill1 $249.33 $267.72 $287.30 $308.51 $324.96 Impact ($)N/A $18.39 $19.58 $21.21 $16.45 1.The currently approved fixed/variable ratio is 20%/80%. However, the actual ratio is impacted based on things like water sales. The actual ratio will always be slightly different than the projected ratio. Fixed/Variable Ratio Existing Jan. 2022 Jan. 2023 Jan. 2024 Jan. 2025 Revenue Increase (%)N/A 10%9%8%8% Fixed Charge (% of total revenue)19.22%1 20.16%21.21%22.28%23.39% Variable Rate (% of total revenue)80.78%79.84%78.79%77.72%76.61% Water Financial Plan: Rate Comparison •Rate drivers •Treatment costs •Represents ~43% of operating costs •San Diego Pure Water program: Poway’s share est. at $4M/year for the next 5 years •Capital improvement projects •Over $36M in existing infrastructure is being maintained •Maintenance/replacement currently proposed at ~$1M/year for the next 5 years •Proposed increases •January 2022: 4.0% •January 2023: 4.0% •January 2024: 4.0% •January 2025: 4.0% Wastewater Rate Drivers and Proposed Increases 1.Average single-family household •Bi-monthly winter wastewater generation: 15 units Wastewater Existing Jan. 2022 Jan. 2023 Jan. 2024 Jan. 2025 Revenue Increase (%)N/A 4%4%4%4% Estimated Water Bill1 $98.21 $102.20 $106.23 $110.60 $115.03 Impact ($)N/A $3.99 $4.03 $4.37 $4.43 Wastewater Financial Plan: Rate Comparison Set Public Hearing Sep. 7, 2021 Mail 218 Notice By Sep. 18, 2021 Consider Debt Oct. 19, 2021 Public Hearing Nov. 2, 2021 Potential 2021 Debt Series: Nov. 10, 2021 Timeline Year 1: Rates Effective Jan. 1, 2022 Year 2: Rates Effective Jan. 1, 2023 Year 3: Rates Effective Jan. 1, 2024 Potential 2024 Debt Series: Aug. 2024 Year 4: Rates Effective Jan. 1, 2025 Potential 2023 Debt Series: Mar. 2023 QUESTIONS?