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Rate Study


In the summer of 2015, District staff were charged with the responsibility to calculate the cost of water and sewer services by developing a rate study. In order to do so, a number of underlying objectives needed to be addressed.

These objectives were the driving force behind the development of the Rate Study and constitute the basis by which future costs and priorities can be established by Board policy. Only by defining what is important to the Board and the Community can a reasoned plan be formed that addresses the most important needs of the District. In considering these objectives the District Board of Directors took into account the underlying need and priority of the projects, programs, the associated costs and the ability to successfully implement these priorities in a timely manner. Based on the from the Board of Directors the following objectives were established for the rate study:

  • Identify & prioritize needed Capital Improvement Projects by developing a Capital Improvement Plan (CIP);
  • Determine the extent of the Structural Deficit in the Water and Sewer Enterprise Funds;
  • Establish sufficient revenue to address anticipated Operations & Maintenance, Capital Outlay, and Capital Improvement Plan costs over the next five years;
  • Provide sufficient revenue to incorporate a reasonable Contingency Fund and Reserve for each of the enterprise funds;
  • Maintain adequate revenues to ensure compliance with our existing debt service coverage ratios (bond covenants) and consent decree, retain and improve our financial credit ratings, and preserve eligibility for grants and loans from state and federal agencies;
  • Maintain adequate revenues to ensure regulatory compliance with the Central Valley Regional Water Quality Control Board (CVRWQCB), the State Water Resources Control Board (SWRCB), and other state and federal regulatory agencies;
  • Develop rates and charges that constitute a fair and equitable distribution of costs to each customer class that is proportional to the service provided and does not exceed the cost to deliver the service;
  • Promote the financial stability of the District through adequate funding and emphasis on implementing measures to improve operational efficiencies and consolidating service areas where possible; and
  • Balance the need for increased revenues with the cost impacts on District customers by spreading any rate increase over a 5-year period.

Listed below is information regarding the Water and Sewer Rate Study completed and approved by the Board of Directors, November 17, 2015.

Download the Study

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