HomeMy WebLinkAboutAGENDA REPORT 2020 1021 CCSA REG ITEM 09A POWERPOINTCITY OF MOORPARK, CALIFORNIA
City Council Meeting
of October 21, 2020
ACTION Heard Presentation.
BY B.Garza.
A. Consider Presentation by Joseph Pope, Water and Sanitation Services Director,
Ventura County Waterworks District No. 1 on Proposed 2021 Water Rates.
Item: 9.A.
Ventura County Waterworks District No. 1
Proposed Water and Sewer Rate
Adjustments for 2021
Joe Pope
Director, Water and Sanitation Department
County of Ventura Public Works Agency
October 21, 2020
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Item: 9.A.
Ventura County Waterworks District No. 1
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.
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District 1 Service Area
Location of Agricultural Customers
within District 1 (Area in Burgundy)
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Financial Conditions of the District
Ended Fiscal Year 19/20 with healthy reserve fund balances for both Water and Sewer
Help for District Rate Payers during pandemic:
o No water shut-o ffs
o Waived over $360,000 late fee charges since March 2020
o Water Bill Payment plans available without interest or late fees
Calleguas Municipal Water District Rate increase of 3% for 2021
Inflationary increases for Labor, Power, and materials ranging from 3% to 9%
Ongoing lawsuits: Las Posas Adjudication and Prop 218 Lawsuit
Annual Water O&M budget for FY 2021: $19.9M (2% decrease from FY2020)
Annual Sewer O&M budget or FY 2021: $6M (3% increase from FY2020)
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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
4.Dec. 2019 the Board approved a 3.5% water rate, 10% fixed rate charge
(meter fee) and 9.4% agricultural rate increase
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Ventura County Waterworks District No. 1
Moorpark Water and Sewer Services
Proposed Water, Sewer, and Reclaimed Water Rate Increases
Calendar Year 2021
Water Variable Commodity Rate Adjustment: 3.5%
Water Fixed Meter Charge Adjustment: 3.5%
Reclaimed Water Variable Commodity Rate Adjustment: 3.3%
Agricultural Water Variable Commodity Rate Adjustment: 10.2%
Sewer Rate Adjustment: Increases $1 per month per Residential Unit
Equivalent (RUE) to $28/month
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Proposed Water Rate Increases Impact on Customers
Calculators are available on our website: http://pwa.vcpublicworks.org/wsd/ratesandcharges/
Meter /
Service
Usage Hundred
Cubic Feet (HCF)
2020 Bill 2021 Bill %
Increase
¾” Residential* 20 $97.35 $100.76 3.5%
1” Residential 50 $251.15 $259.94 3.5%
3” Ag 200 $830.94 $910.02 9.5%
*83% of Residential Customers have ¾” Meters
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Ventura County Waterworks District No. 1
Moorpark Water Services
Proposed Water Rate Comparison
Calendar Year 2021
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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
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Ventura County Waterworks District No. 1
Moorpark Water Services
Cash Reserve Forecast With Recommended Rates
Proposed Rate Increase maintains positive Cash Reserves for Capital Projects and Operations
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Ventura County Waterworks District No. 1
Moorpark Sewer Services
Cash Reserves Forecast with No Rate Increases
WW#1 Sewer District cash will depleted significantly FY24 and beyond.
Will not have any funding to finance capital improvement projects.
FY20 Actual FY21 Req. Budget FY21 Req. Budget
w Recom. Inc FY22 Estimate FY23 Estimate FY24 Estimate FY25 Estimate FY26 Estimate
Total Ending Cash Balance $9,638 $6,419 $6,372 $3,667 $1,424 $769 ($4)($154)
Minimum Required Cash Balance $1,440 $1,558 $1,558 $1,573 $1,615 $1,640 $1,683 $1,729
($2,000)
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
Waterwork District #1 - Moorpark Sewer Service
Cash Balances with No Rate Increases
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Ventura County Waterworks District No. 1
Moorpark Sewer Services
Financial Impact of Proposed and Recommended Rates
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Ventura County Waterworks District No. 1
Moorpark Water Services
Agricultural Glide Path Rate Analysis 2021
Ventura County Waterworks District - Moorpark
Agricultural Glide Path Rate Analysis - Based on Proposed Rate Increase
Commodity Rate % of Increase 3.5%3.5%3.5%3.5%3.5%3.5%3.5%
Additional Agricultural Rate Increase $0.20 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25
Agricultural Rate % of Increase 9.4%10.2%9.6%9.1%8.6%8.2%7.9%
ANALYSIS USING FY20 PROPOSED RATE INCREASE
Estimated Revenue Loss from Agricultural Water Sales on the Glide Path Rates:
FY20 (Current Rate)FY2021 FY2022 FY2023 FY2024 FY2025 FY2026
AGR Rate calculated at Full Cost of Service $4.57 $4.73 $4.90 $5.08 $5.26 $5.45 $5.65
AGR on the Glide Path Rate - Made Whole $3.71 $4.09 $4.49 $4.90 $5.26 $5.45 $5.65
Discount ($/hcf)($0.86)($0.64)($0.41)($0.18)$0.00 $0.00 $0.00
$/Acre-Foot $1,616.08 $1,781.60 $1,955.84 $2,134.44 $2,291.26 $2,374.02 $2,461.14
Revenue Loss due to the Glide Path:
AGR Estimated Usage (HCF)883,659.92 878,061.68 895,710.72 904,667.83 913,714.51 922,851.65 932,080.17
Discount ($/hcf)($0.86)($0.64)($0.41)($0.18)$0.00 $0.00 $0.00
Annual Revenue Loss ($761,315.09) ($660,953.50) ($464,600.44) ($265,040.80) ($81,420.10)$0.00 $0.00
Annual Compounding Revenue Loss ($3,182,789.17) ($3,843,742.67) ($4,308,343.11) ($4,573,383.91) ($4,654,804.01) ($4,654,804.01) ($4,654,804.01)
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Thank You
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