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Home My WebLink AboutAGENDA REPORT 2018 1107 REG CCSA ITEM 09ACITY OF MOORPARK, CALIFORNIA City Council Meeting of November 7, 2018 ACTION Heard presentation BY M. Benson 9. PRESENTATION/ACTION/DISCUSSION: A. Consider Presentation from Ventura County Water Works District No. 1 on Proposed Water Rates. Item: 9.A. ITEM 9.A. Consider Presentation from Ventura County Water Works District No. 1 on Proposed Water Rates Verbal Presentation No Staff Report 4 Presentation to Moorpark City Council Michaela Brown Director, Water and Sanitation Department County of Ventura Public Works Agency November 7, 2018 Ventura County Waterworks District No. 1 (Moorpark) Proposed Water Rate Increases for Calendar Year 2019 5 Ventura County Waterworks District No. 1 November 7, 2018County of Ventura Water and Sanitation Department, VCWWD1 Slide 2 District Size: ~21,500 Acres Population Served: Approx. 36,828 Water Lines:~168 Miles Water Service Connections: ~10,921 Sewer Lines: ~107 Sewer Connections: ~9,845 Recycle Water: 7 miles of pipeline 1 reservoir 2 pump stations Reservoirs: 19 Lift Stations: 4 Groundwater Wells: 5 Booster Pump Stations: 11 Formed on November 21, 1921 The Ventura County Board of Supervisors (BOS) are the Board members for Ventura County Waterworks District No. 1. Service area includes all of the City of Moorpark and contiguous, unincorporated areas to the north and west of the City. County of Ventura Water and Sanitation Department is responsible for the operation and maintenance of the water and sewer system. The appointed five-member Citizens’Advisory Committee reviews all policy, budget, and water rate recommendations before they are recommended to the (BOS). 6 Slide 3County of Ventura Water and Sanitation Department District 1 Service Area Location of Agricultural Customers within District 1 (Area in Burgundy) County of Ventura Water and Sanitation Department, VCWWD1 November 7, 2018 7 Slide 4 Budgets and Factors Impacting Water Rates District 1 operates as an enterprise fund. No tax revenues All expenses are paid by District 1 customers through water rates and charges. District 1 secures grants, when feasible, and low-interest loans for capital projects. Annual water operations and maintenance budget for FY 2019: $19.5 million. Factors Impacting Water Rates: 1. Water rate increases by Calleguas Municipal Water District a) 2018 will be 3.4% b) 2019 estimated to be 4.7% 2. Increasing cost of power a) Has risen between 3% and 5% in the last several years 3. Increasing labor costs, including salaries and benefits a) 2018 will be 7% b) 2019 estimated to be 3% 4. Increases in expenditures for planned capital projects County of Ventura Water and Sanitation Department, VCWWD1 November 7, 2018 8 Slide 5 Operations and Maintenance Expenditures for Fiscal Year 2018-2019 County of Ventura Water and Sanitation Department, VCWWD1 November 7, 2018 County & Agency Svcs, $482 , 2% Imported Water Cost, $13,057 , 67% Local Water Cost, $562 , 3% Operation & Maintenance, $3,836 , 20% Regulatory Permit Costs, $129 , 1% System Maint, Repairs & Replc., $1,435 , 7% The $19.5M Budget is a $727K (4%) increase from FY2019 Adopted budget 9 November 7, 2018County of Ventura Water and Sanitation Department, VCWWD1 Slide 6 Ventura County Waterworks District No. 1Moorpark Water Services Cash Reserves Forecast with No Rate Increases Reduction in cash reserves is mainly due to operating losses and rate funded CIP $6M $0M -$9M -$16M -$27M -$35M($40,000,000) ($35,000,000) ($30,000,000) ($25,000,000) ($20,000,000) ($15,000,000) ($10,000,000) ($5,000,000) $0 $5,000,000 $10,000,000 $15,000,000 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Ending Cash Balance Total Proposed Target 10 November 7, 2018County of Ventura Water and Sanitation Department, VCWWD1 Slide 7 Operating Financial Plan FY19 Adj. Budget FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Total Expenditures 19,467,585.65 20,313,890.55 21,615,492.17 23,119,440.48 24,700,285.45 24,623,480.43 Total Current Revenue $18,675,100 $18,891,907 $19,077,760 $19,265,423 $19,454,912 $19,646,109 Proposed Revenue 19,430,074.60 21,185,961.71 23,087,742.73 25,218,328.38 27,519,143.99 29,758,481.87 Revenue Adjustment $754,975 $2,294,055 $4,009,983 $5,952,906 $8,064,232 $10,112,373 - 5,000,000.00 10,000,000.00 15,000,000.00 20,000,000.00 25,000,000.00 30,000,000.00 35,000,000.00 11 Slide 8 Proposed Water Rate Increases for Calendar 2019Fixed Charge % of Revenue: 12% •Commodity Adjustment Increase: 7.5% •Agricultural Adjustment Increase: 14% County of Ventura Water and Sanitation Department, VCWWD1 November 7, 2018 Commodity Rates Residential Current Rates Proposed Rates Tier 1 0 – 10 HCF*$3.43 $3.69 Tier 2 >10 – 25 HCF $4.10 $4.41 Tier 3 >25 HCF $4.71 $5.06 Agricultural $2.97 ($1,293.73/AF) $3.39 ($1,476.68/AF) Commercial $3.93 $4.22 Industrial $3.69 $3.97 Institutional $4.41 $4.74 Non-Tiered Residential $4.20 $4.52 Multi-Family Residential $3.63 $3.90 Temporary Construction $5.59 $6.01 * HCF = Hundred Cubic Feet (748 Gallons); AF = Acre Feet (435.60 HCF) 12 Slide 9 Proposed Water Rate Increases for Calendar 2019Fixed Charge % of Revenue: 11%Monthly Service Charges: 7.5% Increase County of Ventura Water and Sanitation Department, VCWWD1 November 7, 2018 Monthly Service Charges - Meters Meter Size Current Rates Proposed Rates 3/4-inch $11.46 $12.32 1-inch $15.45 $16.61 1 1/2-inch $25.40 $27.31 2-inch $37.36 $40.16 3-inch $75.21 $80.85 4-inch $130.99 $140.81 6-inch $264.48 $284.32 13 Slide 10 Proposed Water Rate Increases Impact on Residential Customers Calculators are available on our website:http://pwa.vcpublicworks.org/wsd/ratesandcharges/ County of Ventura Water and Sanitation Department, VCWWD1 November 7, 2018 Meter Size Average Bill Proposed Increase (HCF) ¾”$61.36 $4.65 1”$123.93 $9.38 1.5”$219.70 $16.51 14 November 7, 2018County of Ventura Water and Sanitation Department, VCWWD1 Slide 11 Moorpark Water ServicesFinancial Impact of Recommended Rate Increase $9M $9M $8M $8M $8M $14M $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 FY19 Adj. Budget FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Ending Cash Balance Total Proposed Target Illustrates that Option 4 rate increase and deferral of rate funded projects through FY 2024 can help maintain positive cash reserves by end of FY 2024 and finance 74% of deferred capital requirements. 15 Slide 12 $12.32 $13.64 $14.92 $15.05 $17.80 $19.52 $20.18 $23.58 $25.31 $27.43 $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 WWD 1 - Moorpark (Proposed) Camrosa Municipal Water District WWD 17 - Bell Canyon Cal-American Water - Thousand Oaks WWD 38 - Lake Sherwood Oxnard WWD 19 - Somis Camarillo Thousand Oaks Simi Valley 8,569 Residential Customers with a ¾ “ Monthly Meter Charges County of Ventura Water and Sanitation Department, VCWWD1 November 7, 2018 16 Slide 13 Comparison of Rate Structures (Residential) $3.69 $4.41 $5.06 $3.08 $3.19 $4.25 $4.56 $4.95 $1.59 $3.58 $4.54 $6.33 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 Tier 1 Tier 2 Tier 3 Tier 4 WWD 1 (Proposed)Camrosa Thousand Oaks *Camarillo Note: The City of Thousand Oaks does not include the pumping lift charge of $.18 per unit Disclaimer: While the information contained in this comparison has been presented with all due care, the County of Ventura Water and Sanitation Department does not warrant or represent that the information is free from errors or omissions. (0-10 HCF)(0-9 HCF)(>10-25 HCF)(>25 HCF)(10-18 HCF)(19-24 HCF)(0-12 HCF)(13-30 HCF)(>31 HCF) Note: Simi Valley has a flat rate of $3.69/HCF (0-12 HCF)(>13 HCF)(<25 HCF) County of Ventura Water and Sanitation Department, VCWWD1 November 7, 2018 17 Questions? 18