WATER RATE BACKGROUND
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- Sheena Sutton
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1 4381 Broadway, Suite 201 APN: Number Mr. Joe Smith Business 123 Any Street Address 2 NOTICE TO PROPERTY OWNERS AND WATER CUSTOMERS PAUNAWA SA MGA MAY-ARI NG ARE-ARIAN AT MGA PAROKYANO NG TUBIG IPINANUKALANG PAGTAAS NG SINGIL NG TUBIG Pampublikong pagdinig sa May 15, 2018 sa 6:30 pm, Munisipyo, 4381 Broadway, American Canyon AVISO A LOS PROPIETARIOS Y CLIENTES DE AUGUA AUMENTO DE LA TARIFA DE AGUA PROPUESTA Audiencia Publica el 15 de Mayo, 2018 a las 6:30 pm en el Palacio Municipal, 4381 Broadway, American Canyon This notice is available in Tagalog and Spanish at the City Hall, Utility Billing Counter and on the City Website. Ang paunawang ito ay mayroon sa Tagalog sa Munisipyo, Utility Billing Counter o sa aming website. Este aviso está disponible en Español en el Palacio Municipal, en el Contador de Facturación de servicios Públicos y en nuestra página de sitio web. WATER RATE BACKGROUND The City of American Canyon s Water Fund operates as a not-for-profit utility enterprise. Expenses such as buying, treating, and distributing water, along with outstanding loan payments are covered only by rates and fees paid by water customers (i.e. revenue ). Likewise, the revenue collected by the City is only used to cover costs of Water Fund expenses. The primary factors affecting water rates include the cost of water, the cost of utility operations, and new capital improvements necessary to repair aging infrastructure. The City s last comprehensive update of its water rates was in Since then, the Water Fund has operated in a way that has proven not to be sustainable over the long term. In some years, expenses exceed revenues, and this required the City to deplete the Water Fund s reserves. The last drought ( ) worsened the situation, and in 2015, the City was forced to implement a drought surcharge to cover the shortfall between ever-increasing costs and ever-decreasing revenues. To this day, the Water Fund would have a negative operating position without the surcharge. To address this unsustainable financial condition, the City formed a committee of residents to evaluate potential alternatives. PROPOSED RATE INCREASES The Water Rate Advisory Committee (WRAC) was commissioned by the City Council on August 15, 2017, with the purpose providing recommendations for water rate alternatives. Specifically, the Committee reviewed historical and projected expenses and revenues and evaluated water rate options to address the negative operating position. The WRAC also evaluated fixed versus variable revenues. The Committee held six meetings and ultimately chose to recommend the water rates shown below. The basis for the Committee s recommendation can be found in the Water Rate Study a copy of which is available online at or can be reviewed in person at City Hall (4381 Broadway).
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3 HOW TO ESTIMATE YOUR NEW BILL To estimate your new utility bill take one of your previous bills and the chart below (proposed 5-year water rate schedule) and fill in the yellow squares on the mock bill below. Previous Current Consumption Per Unit Charges Water & Sewer Service Meter # Tier 1 (0-10 units) (Insert units) X $6.07 per unit = $ Tier 2 (11 + units) (Insert units) X $6.65 per unit = $ Total Consumption Charges (total of tier 1 & 2) $ Sewer Charge (Insert sewer rate based on unit consumption) $ Meter Charge (insert meter charge) $ Total Current Charges (Add Total Consumption + Sewer + Meter) $
4 HOW TO CALCULATE YOUR BILL ALL OTHER CUSTOMERS To estimate your new utility bill take one of your previous bills and the chart below (proposed 5-year water rate schedule) and fill in the yellow squares on the mock bill on the previous page.
5 COMMUNITY MEETINGS Two informational community meetings are scheduled during the month of April to answer questions and provide assistance in estimating your future bill. April 10, :00 pm - 7:00 pm American Canyon Community Center 100 Benton Way April 19, :00 pm 8:00 pm American Canyon High School Cafeteria 3000 Newell Drive PUBLIC HEARING A Public Hearing is scheduled for May 15, 2018, at 6:30 pm to review the proposed changes to water rates. At the time of the public hearing, the Council will hear and consider all comments concerning this matter. This notice has been sent to all utility customers and property owners as of the last address available. If there is no majority protest, the Council will consider and may adopt the increased rates by ordinance. The proposed rate changes will become effective January 1, Any property owner of record or utility customer who is subject to the proposed new rates for the City s water service fees may submit a protest to the rate increase. Only one written protest per parcel will be counted. All valid protests must follow these guidelines: Protests must be submitted on paper in writing, by mail or in person, addressed to the following: Attention: City Clerk City of American Canyon 4381 Broadway, Suite 201 Electronic submittals such as , Fax, Text or Social Media are not acceptable as written protests; State that the identified property owner or utility customer is in opposition to the proposed rate increases; Provide the location of the identified parcel (by assessor s parcel number, street address, or customer account); Include the name and signature of the property owner or utility customer submitting the protest; and Written protests may also be submitted at the public hearing (date and time noted above). All written protests must be submitted to the City prior to the conclusion of the public comment portion of the public hearing. At the public hearing, the City Council will accept and consider all written protests and hear all oral comments to the proposed rate increases. Oral comments at the public hearing will not qualify as formal protests unless accompanied by a written protest. Upon the conclusion of the public hearing, the City Council will consider the adoption of the proposed increases to the rates for water service fees as described below. If written protests against the proposed rates are not presented by a majority of the property owners or utility customers of the identified parcels subject to the proposed rate increases, the City Council will be authorized, and may adopt the rate increases.
6 The Water Rate Study is available online at or can be reviewed in person at City Hall (4381 Broadway).
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