Water / Wastewater Rate Study

2026-11-03

The following criteria shall apply to each of the rate studies : • Evaluate current and future cost of providing services in conformance with established or anticipated changes to standards and regulations . • Develop an understanding of the existing rate structures and the assumptions underlying cost distribution of the various categories . • Quantify the expected impacts that will occur with implementation of the City ’ s capital improvement plans and master plans . • Provide justifications for the recommended rate structures , including a rate study narrative , documenting the report methodology , assumptions , and data behind the rate recommendations . • Demonstrate that the costs from any proposed rate structures are equitable and work with staff regarding implementing a rate structure taking into consideration Proposition 218 requirements . • A comprehensive cost of service - based study of water and wastewater rates and Recommended rate structures that will be planned for at least five years and that will provide a predictable and stable revenue stream . • Develop a rate modeling program that will become the property of the City , that can forecast rates up to 30 years based on expected cost increases over time including increases in the cost of water . The modeling program should have the ability to run capital improvement project scenarios and quickly show the impact on rates . • Reserve analysis , adopted and recommended Reserve Policies and any recommendations for changes in rates to meet the cash flow objectives of those policies , must be a part of the model . • The model must have a user - friendly dashboard with interactive graphics that automatically produces a suite of reports and graphs as inputs are changed . • Provide training to staff in running scenarios that will allow staff to fully understand how the model operates and how results of various future recommendations may be proposed and illustrated .

California

2026-03-27