HomeMy WebLinkAboutAGENDA REPORT 2019 1002 REG CCSA ITEM 09B POWERPOINTOctober 2, 2019 1
Ventura County Waterworks District No. 1 (Moorpark)
Proposed Water Rate Increases
for Calendar Year 2020
Presentation to Moorpark City Council
Joe Pope
Director, Water and Sanitation Department
County of Ventura Public Works Agency
October 2, 2019
43
Ventura County Waterworks District No. 1
Slide 2
District Size: ~21,500 Acres
Population Served: Approx. 38,703
Water Lines: ~177 Miles
Water Service Connections: ~10,941
Reservoirs: 19
Groundwater Wells: 5
Booster Pump
Stations: 11
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.
October 2, 2019
44
Slide 3
District 1 Service Area
Location of Agricultural Customers
within District 1 (Area in Burgundy)
October 2, 2019
45
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 budget for FY 2020: $20.6 million.
Factors Impacting Water Rates:
1.Water rate increases by Calleguas
Municipal Water District
a)2019 was 3.5%
b)2020 will be 3.4%
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)FY 2018 was 7%
b)FY 2019 was 3%
c)FY 2020 is 8.9%
4. Increases in expenditures for planned
capital projects
October 2, 2019
46
Slide 5
History of Waterworks District 1 Water Rates
1.Feb. 2017 the Board approved a rate restructuring
•Prop 218 compliant Cost-of-Service based model
•Included a 5-year financial plan averaging 7% annual increase
•Included glide path for agricultural customers
2.Dec. 2017 the Board approved a 7% water rate increase, a 10% fixed
charge rate, and a 15% rate increase for agricultural water
3.Dec. 2018 the Board approved a 7.5% water rate, 7.5% fixed rate charge
(meter fee) and 14% agricultural rate increase
October 2, 2019
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October 2, 2019
The $20.6M Budget is a $1M (5%) increase from FY2019 Adopted budget
Ventura County Waterworks District No. 1
Moorpark Water Services
Fiscal Year 2019-2020 Budget Analysis by Category
In thousands
EXPENDITURES FY19 ADOPTED
BUDGET
FY20 ADOPTED
BUDGET
Variance
($)
Variance
(%)
County & Agency Svcs $575 $547 ($29) -5%
Imported Water Cost $13,057 $13,671 $614 5%
Local Water Cost $562 $583 $22 4%
Operation & Maintenance $4,067 $4,442 $374 9%
Regulatory Permit Costs $37 $43 $6 15%
System Maint, Repairs & Replc. $1,200 $1,272 $72 6%
Grand Total $19,498 $20,557 $1,059 5%
Slide 6 48
October 2, 2019
Ventura County Waterworks District No. 1
Moorpark Water Services
FY20 Adjusted Budget Expenditures vs. Revenue Analysis
SUMMARY:
Total Adjusted Budget Expenditures
$20,859,590
Total Estimated Revenue
$20,739,284
% of Expenditures Financed by Water Sales
99.4%
% of Expenditures Funded by Cash Reserves
0.6%
Slide 7 49
October 2, 2019
Ventura County Waterworks District No. 1
Moorpark Water Services
Cash Reserves Forecast With No Rate Increases
Cash Balance goes negative due to inflationary factors and Rate Funded CIP projects
Slide 8 50
October 2, 2019
Ventura County Waterworks District No. 1
Moorpark Water Services
Proposed Water Rate Increases for Calendar Year 2020
•Commodity
Adjustment
Increase: 3.5%
•Agricultural
Adjustment
Increase: 9.4%
Slide 9
Tier Proposed Monthly Use (HCF)Current 2019 Proposed 2020
1 0 - 10 $3.69 $3.82
2 >10 – 25 $4.41 $4.56
3 > 25 $5.06 $5.24
Commodity Rates for Residential Customers
Note: Rates per 100 Cubic Feet of Water (HCF)=748 Gallons
Customer Class Current 2019 Proposed 2020
Agricultural $3.39 $3.71
Commercial $4.22 $4.37
Industrial $3.97 $4.11
Institutional $4.74 $4.91
Non-Tiered Residential $4.52 $4.68
Multi-Family Residential $3.90 $4.04
Commodity Rates for Other Customer Classes
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October 2, 2019
Ventura County Waterworks District No. 1
Moorpark Water Services
Proposed Water Rate Increases for Calendar Year 2020
Monthly Fixed Service Charges: 10% Increase
Slide 10
Meter Size Current 2019 Proposed 2020
3/4-inch $12.32 $13.56
1-inch $16.61 $18.28
1 1/2-inch $27.31 $30.05
2-inch $40.16 $44.18
3-inch $80.85 $88.94
4-inch $140.81 $154.90
6-inch $284.32 $312.76
Meter Size Current 2019 Proposed 2020
2-inch $8.06 $8.87
3-inch $12.17 $13.39
4-inch $19.26 $21.19
6-inch $44.75 $49.23
8-inch $88.71 $97.59
10-inch $154.82 $170.31
20-inch $927.79 $1,020.57
Monthly Meter Charges
Monthly Fireline Charges
Note: Water used through private fire services will be charged at the temporary construction water rate
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Slide 11
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 December 4, 2018
Meter Size Median Bill Monthly Increase
¾” $88.87 $3.19
1” $95.31 $3.46
3” $250.46 $9.45
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October 2, 2019
Ventura County Waterworks District No. 1
Moorpark Water Services
Cash Reserve Forecast With Recommended Rates
Proposed Rate Increase will help maintain positive Cash Reserves needed to fund
Capital Projects and Debt Service
Slide 12 54
October 2, 2019
Ventura County Waterworks District No. 1
Moorpark Water Services
Proposed Operating Plan With Recommended Rate Increase
Illustrates the operating financial plan by comparing the existing and proposed revenues with projected expenses.
The expenses, shown in bars are all expenses.
Row 4 of graph table shows the compounding effect of Revenue Adjustment for each fiscal year given proposed rate increases thru FY 2025.
Note: Revenue Adjustments reflects recommended non-agriculture commodity rates increase of 3.5% on all study period fiscal years. Fixed
Rate increase of 10% for FY20 and 13%,14% &14% increases on outyears. AGR rate increase of 9.4% for FY20 and 8.9%,8.7%,8.2%,6.7%,3.6%
respectively on outyears.
Slide 13 55
Comparison of Residential Commodity Rates (HCF)
1.61
3.81
4.83
6.73
3.82
4.56
5.24 5.24
3.28 3.65 3.65 3.65 3.86 3.86 3.86 3.86
4.87 5.19
5.61 5.61
0
1
2
3
4
5
6
7
8
Tier 1 Tier 2 Tier 3 Tier 4
Camarillo WWD1 Moorpark (Proposed)Camrosa Simi Valley Thousand Oaks *
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.
(0-12) (13-30) (0-10 ) (>13) (0-12) (>10-25 ) (0-9) (FLAT) (FLAT) (FLAT) (FLAT) (10-18) (19-24) (>25) (>25 ) (>25 ) (>13) (>13) (>31) (>31)
Ventura County Waterworks District No. 1
Moorpark Water Services
September 12, 2019 October 2, 2019 Slide 14 56
$12.79 $13.10 $13.55
$19.05 $19.40 $21.26 $22.60 $23.82 $25.57
$30.50
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
Camrosa
Municipal
Water District
Cal-American
Water -
Thousand Oaks
WWD 1 -
Moorpark
(Proposed)
WWD 17 - Bell
Canyon
(Proposed)
WWD 38 - Lake
Sherwood
(Proposed)
Oxnard WWD 19 -
Somis
(Proposed)
Camarillo Thousand Oaks Simi Valley
Residential Customers with a ¾” Meter – Monthly Charge
October 2, 2019
Ventura County Waterworks District No. 1
Moorpark Water Services
Slide 15 57
October 2, 2019
Ventura County Waterworks District No. 1
Moorpark Water Services
Agricultural Glide Path Rate Analysis
Agricultural Rate % of Increase 9.4% 8.9% 8.7% 8.2% 6.7%
ANALYSIS USING FY18 PROPOSED RATE INCREASE
Estimated Revenue Loss from Agricultural Water Sales on the Glide Path Rates:
FY19 (Current Rate) FY2020 FY2021 FY2022 FY2023 FY2024
AGR Rate calculated at Full Cost of Service 4.25 $ $4.40 $4.56 $4.72 $4.89 $5.07
AGR on the Glide Path Rate - Made Whole $3.39 $3.71 $4.04 $4.39 $4.75 $5.07
Discount ($/hcf) ($0.86) ($0.69) ($0.52) ($0.33) ($0.14) $0.00
Revenue Loss due to the Glide Path:
AGR Estimated Usage (HCF) 908,838.82 917,927.21 927,106.48 936,377.55 945,741.32 955,198.73
Discount ($/hcf) ($0.86) ($0.69) ($0.52) ($0.33) ($0.14) $0.00
Annual Revenue Loss ($920,723.53) ($707,485.58) ($557,732.57) ($395,549.98) ($220,704.19) ($66,201.89)
FY20 Loss ($920,723.53) ($920,723.53) ($920,723.53) ($920,723.53) ($920,723.53)
FY21 Loss ($707,485.58) ($707,485.58) ($707,485.58) ($707,485.58)
FY22 Loss ($557,732.57) ($557,732.57) ($557,732.57)
FY23 Loss ($395,549.98) ($395,549.98)
FY24 Loss ($220,704.19)
Annual Compounding Revenue Loss ($920,723.53) ($1,628,209.11) ($2,185,941.68) ($2,581,491.66) ($2,802,195.85) ($2,868,397.74)
Slide 16 58
Questions?
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