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Home My WebLink AboutAGENDA REPORT 2021 1103 CCSA REG ITEM 09B POWERPOINTNovember 3, 2021 1 Ventura County Waterworks District No. 1 Proposed Water and Sewer Rate Adjustments for 2022 Presentation to Moorpark City Council Joseph Pope, P.E. Director, Water and Sanitation County of Ventura Public Works Agency November 3, 2021 28 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. November 3, 2021 29 Slide 3 District 1 Service Area November 3, 2021 30 Slide 4 Financial Conditions of the District Dec 2020 Waterworks District Board Approved: Minimum Reserve policy of 25% Operating Costs, 10% Revenue, and 2% of net assets Ended Fiscal Year 20/21 (6/30/21) with reserve fund balances of $10.8M for Water and $10.4M for Sewer Annual Water O&M budget for FY 2022: $20.3M (FY21 Actual: $21.5M) Annual Sewer O&M budget or FY 2022: $5.1M (FY21 Actual: $5.2M) November 3, 2021 31 Rate Analysis Assumptions November 3, 2021 Slide 5 Calleguas Municipal Water District Rate increase of 3.5% for 2022 Assumes average inflationary increases used for rate analysis: Labor 3.5%, Electricity 4%, materials 3%, and new capital loans 30-year @ 2% fixed Assumes groundwater pumping allocation remains at 2,195 acre-feet per year Assumes Capital Projects are funded 25% from cash reserves and 75% from loans Major Water Capital Project Timing Recommendations: Re-Drill Well 97 and Install Treatment Facilities: FY 2022-2023 Stockton Reservoir #1: FY 2023-24 Grimes/Home Acres Reservoir: FY 2025-2027 Moorpark Desalter: TBD 32 Rate Analysis Assumptions November 3, 2021 Slide 6 Major Sewer Capital Project Timing Recommendations: Storage Warehouse: FY 2022-2023 MWRF Hwy 118 Turn Lane: FY 2023-2024 MWRF Generator Replacement: FY 2023 Sewer Replacement and Re-Lining: FY2023-2025 MWRF Control System Upgrades: FY2023-2024 33 Known Risks November 3, 2021 Slide 7 Wet years result in lower sales and a reduction in revenues Adjudication of Las Posas Valley (LPV) Groundwater Basin is still on-going Fox Canyon (or the Courts) will set LPV sustainable pumping yield, which could result in lower than 2,195 acre-feet pumping allocation Failure of any Well during peak irrigating time periods will result in increased purchases of Calleguas water Magnitude of Calleguas and SCE rates increases are uncertain (but certainly going up) Potential for Metropolitan to impose Drought Surcharges Timing of Moorpark Housing and Commercial Development tracts uncertain, but seem to be progressing forward 34 Slide 8 Calleguas vs. District 1 Water Rate Increases 2011-2021 November 3, 2021 35 November 3, 2021 Ventura County Waterworks District No. 1 Moorpark Water and Sewer Services Proposed Water, Sewer, and Reclaimed Water Rate Increases Effective July 2022 Slide 9 Water Variable Commodity Rate Adjustment: 3.5% Water Fixed Meter Charge Adjustment: 3.5% Reclaimed Water Variable Commodity Rate Adjustment: 0% (No change) Reclaimed Water Meter Charge: Reset to same as Potable Meters Agricultural Water Variable Commodity Rate Adjustment: 9.8% (3.5% +$0.25/HCF) Sewer Rate (No Change):$28/month Residential Unit Equivalent (RUE) Effective Jan 2023 through 2027:Calleguas Pass-Through Rate per Gov Code 53756 36 Ventura County Waterworks District No.1 Moorpark Water Services Proposed Rate Increase Recommendation Slide 10November 3, 2021 3.5% M&I Commodity rate adjustment & 9.8% Ag Commodity rate adjustment Tier Proposed Monthly Use (HCF)Current 2021 Proposed 2022 1 0 - 10 $3.95 $4.09 2 >10 – 25 $4.72 $4.89 3 > 25 $5.42 $5.61 Commodity Rates for Residential Customers Note: Rates per 100 Cubic Feet of Water (HCF)=748 Gallons Customer Class Current 2021 Proposed 2022 Agricultural $4.09 $4.49 Commercial $4.52 $4.68 Industrial $4.25 $4.40 Institutional $5.08 $5.26 Non-Tiered Residential $4.84 $5.01 Multi-Family Residential $4.18 $4.33 Commodity Rates for Other Customer Classes 37 Ventura County Waterworks District No.1 Moorpark Water Services Proposed Meter Charge Recommendation Slide 11November 3, 2021 •3.5% Fixed meter charge increase •Reset Reclaimed Meter Charges to same as potable charges Meter Size Current 2021 Proposed 2022 3/4-inch $14.02 $14.51 1-inch $18.91 $19.57 1 1/2-inch $31.10 $32.19 2-inch $45.73 $47.33 3-inch $92.05 $95.27 4-inch $160.32 $165.93 6-inch $323.71 $335.04 Meter Size Current 2021 Proposed 2022 2-inch $9.18 $9.50 3-inch $13.86 $14.35 4-inch $21.93 $22.70 6-inch $50.95 $52.73 8-inch $101.01 $104.55 10-inch $176.27 $182.44 20-inch $1,056.29 $1,093.26 Note: Water used through private fire services will be charged at the temporary construction water rate Monthly Meter Charges Monthly Fireline Charges 38 Slide 12 Proposed Water Rate Increases Impact on Customers Calculators are available on our website: http://pwa.vcpublicworks.org/wsd/ratesandcharges/ November 3, 2021 Meter / Service Usage Hundred Cubic Feet (HCF) 2021 Bill 2022 Bill (July) % Increase ¾” Residential*20 $100.76 104.29 3.5% 1” Residential 50 $259.94 269.04 3.5% 3” Ag 200 $910.02 $993.27 9.1% *83% of Residential Customers have ¾” Meters 39 November 3, 2021 Ventura County Waterworks District No. 1 Moorpark Water Services Cash Reserves Forecast With No Rate Increases Cash Balance decreases due to inflationary factors Slide 1340 November 3, 2021 Ventura County Waterworks District No. 1 Moorpark Water Services Cash Reserve Forecast With Recommended Rates Capital Projects 25% Rate Financed / 75% Debt Financed Proposed Rate Increase maintains positive Cash Reserves for Capital Projects and Operations Slide 1441 November 3, 2021 Ventura County Waterworks District No. 1 Moorpark Sewer Services Cash Reserves Forecast with No Rate Increases Assumes Capital Projects are funded with Rates and Cash Reserves (Includes FY22 increases to fixed Reclaim Meter Charges) Slide 1542 November 3, 2021 Ventura County Waterworks District No. 1 Moorpark Water Services Agricultural Glide Path Rate Analysis 2022 Achieves Full Cost of Service by 2024 Slide 16 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%3.5% Additional Agricultural Rate Increase $0.20 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 Agricultural Rate % of Increase 9.4%9.4%9.8%9.1%7.3%3.6%3.7%3.5% ANALYSIS USING FY22 PROPOSED RATE INCREASE Estimated Revenue Loss from Agricultural Water Sales on the Glide Path Rates: FY2020 FY21 (Current Rate)FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 AGR Rate calculated at Full Cost of Service $4.57 $4.73 $4.90 $5.08 $5.26 $5.45 $5.65 $5.85 AGR on the Glide Path Rate - Made Whole $3.71 $4.09 $4.49 $4.90 $5.26 $5.45 $5.65 $5.85 Discount ($/hcf)($0.86)($0.64)($0.41)($0.18)$0.00 $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 $2,548.26 Revenue Loss due to the Glide Path: AGR Estimated Usage (HCF)869,368.00 940,047.00 779,018.33 826,148.94 859,194.89 859,194.89 859,194.89 859,194.89 Discount ($/hcf)($0.86)($0.64)($0.41)($0.18)$0.00 $0.00 $0.00 $0.00 Annual Revenue Loss ($755,169.56) ($674,643.28) ($533,527.00) ($234,052.16) ($74,353.40)$0.00 $0.00 $0.00 Annual Compounding Revenue Loss ($3,176,643.64) ($3,096,117.36) ($3,710,170.64) ($3,944,222.80) ($4,018,576.21) ($4,018,576.21) ($4,018,576.21) ($4,018,576.21) 43 THANK YOU QUESTIONS? 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