HomeMy WebLinkAboutAgenda Report - February 1, 2017 C-18 PHTM
CITY OF LODI
COUNCIL COMMUNICATION
AGENDA TITLE:
MEETING DATE:
PREPARED BY:
AGENDA ITEM
C- 1 8
Set Public Hearing for February 15, 2017, to Consider Adopting Resolution Setting Pre -
Approved Engineering News Record Adjustment Index for Usage -Based and Flat Water
Rates for Residential, Commercial, and Industrial Customers
February 1, 2017
Public Works Director
RECOMMENDED ACTION:
Set public hearing for February 15, 2017, to consider adopting resolution
setting pre -approved Engineering News Record adjustment index for
usage -based and flat water rates for residential, commercial, and
industrial customers.
BACKGROUND INFORMATION: The City Council has made numerous water rate decisions over the past
few years. On May 7, 2014, City Council approved a five-year program of
rate adjustments for water, wastewater, and solid waste services. For the
water and wastewater utilities, the approved annual rate adjustment is the lesser of the Engineering News
Record (ENR) index change or three percent. A summary of the past years water rate adjustments relative to
the ENR index change is provided in Attachment A. The purpose of this table is to demonstrate that past
actual rate increases have frequently been below those approved.
The previous year's ENR index change was 3.36 percent and at the public hearing on December 21, 2016,
staff recommended a water rate increase of three percent in response to a declining balance in the water fund.
The reduction in sales revenue due to conservation, coupled with increased construction costs, primarily
associated with the Water Meter Program (WMP) driving the recommendation for the maximum three percent.
A three percent increase will allow for the planned construction of WMP Phase 7 in Fiscal Year 2016/17,
however, it is expected to result in the utility dipping into reserves by $783,000 in Fiscal Year 2017/18 and by
$1.4 million in Fiscal Year 2018/19. While Tess "comfortable", this temporary condition is acceptable because it
is short term and provides a minimum of $600,000 in Fiscal Year 2018/19 to account for unforeseen conditions
that may be experienced by the utility. As mentioned above, the proposed three -percent increase is pre -
approved as a result of the City's Proposition 218 rate setting process conducted in May 2014.
At the public hearing held on December 21, 2016, Council requested staff evaluate a rate increase of less than
three percent. A one-year, two -percent rate increase, followed by annual three percent increases through
Fiscal Year 2019/20, will result in the water utility dipping into reserves by almost $1 million dollars in Fiscal
Year 2017/18 and $1.7 million in Fiscal Year 2018/19, if construction of WMP Phase 7 is implemented as
planned in Fiscal Year 2016/17. This would only provide a minimum of $260,000 to account for unforeseen
conditions that may be experienced by the utility. Staff does not recommend to further stress the financial
condition of the utility when a pre -approved rate increase of three percent is available for this year.
Another option includes postponing WMP Phase 7 until Fiscal Year 2017/18 and implementing a two percent
increase in both Fiscal Year 2016/17 and Fiscal Year 2017/18. This option preserves the utility's minimum
reserve balance, however, it would extend the schedule for completing the WMP until Fiscal Year 2019/20 and
APPROVED:
Step Schwa
K:\WP\UTILITY RATES\W WW\2017 W_WW Rate Increase\CCSetPH__WaterRates2017 Feb_ces.doc
r, C ty Manager
1/27/17
Set Public Hearing for February 15, 2017, to Consider Adopting Resolution Setting Pre -Approved Engineering News Record Adjustment Index for Usage -Based and Flat
Water Rates for Residential, Commercial, and Industrial Customers
February 1, 2017
Page 2
could add approximately $120,000 (equivalent to roughly one percent of revenues) to the overall WMP cost
due to inflation if construction costs continue to increase at the present rate of approximately three percent per
year. This option imposes the least financial stress on the utility and tempers the annual rate increases over
two years, however, it does counter original Council goals of accelerating the WMP to minimize the time of
converting customers from flat -rate to metered rates. When considering the preferred financial position of the
utility, the option of postponing the WMP Phase 7 by one year is worth considering.
A summary of current and proposed rates (for the recommended three -percent increase) for flat -rate and
usage -based rate customers is provided in Attachment B1. For a resident billed on the flat -rate, the monthly
charge for a three-bedroom home will increase from $45.89 to $47.27, or $1.38 per month. A metered resident
using an average of 1,800 cubic feet of water per month will see an increase from $40.63 to $41.89, or $1.26
per month.
A summary of current and proposed rates (for the two -percent increase) for flat -rate and usage -based rate
customers is provided in Attachment B2. For a resident billed on the flat -rate, the monthly charge for a three-
bedroom home will increase from $45.89 to $46.81, or $0.92 per month. A metered resident using an average
of 1,800 cubic feet of water per month will see an increase from $40.63 to $41.57, or $0.94 per month.
As reflected in the City's Financial Plan for the three -percent increase (Attachment C1), the two -percent
increase (Attachment C2), and the optional two -percent increase for Fiscal Year 2016/17 and Fiscal Year
2017/18, while postponing WMP Phase 7 construction (Attachment C3), fund balances rebound upon
completion of the City's multi-year Water Meter Program.
FISCAL IMPACT:
The Water Utility is requiring increased revenue to accommodate the impacts of
conservation coupled with inflationary pressures in the construction industry
resulting from an improving economy.
FUNDING AVAILABLE: Not applicable.
c
Charles E. Swimley, Jr.
Public Works Director
Prepared by Rebecca Areida-Yadav, Public Works Management Analyst
CES/RAY/tdb
Attachments
K:\WP\UTILITY RATES\W_WW\2017 W_WW Rate Increase\CCSetPH_WaterRates2017 Feb_ces doc 1/27/17
Attachment A
Programmed and Implemented Rate Adjustments
Water
Year
Programmed
Implemented
2009
3.10 (1)
0
2010
0.73 (1)
0
2011
5.98 (2)
2.0
2012
2.53 (3)
2.2
2013
2.50 (3)
2.5
2014
3.30 (3)
2.5
2015
2.00 (3)
2.0(4)
2016
1.975(3)
1.975 (4)
2017
3.36 (3)
3.0 (4)
(1) Consumer Price Index change
(2) Consumer Price Index change (December 2008 through December 2010)
(3) Engineering News Record Index change
(4) Recommended by Staff
Attachment B1
City of Lodi
Current and Proposed Flat Water Rates
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, and condominiums.
(2) These are the maximum rates for each year, without a formal rate -setting process. Actual water rate
adjustments may be lower and would be tied to annual changes in the ENR index
Future Rate Ceiling (2)
Current
(Jan. 2016)
Proposed
(Jan. 2017)
Potential
(Jan. 2018)
Potential
(Jan. 2019)
Rate Increase -->
3.0%
3.0%
3.0%
FLAT RATES
Single Family Residential
1 Bedroom
$ 31.88
$ 32.84
$ 33.83
$ 34.84
2 Bedroom
$ 38.29
$ 39.44
$ 40.62
$ 41.84
3 Bedroom
$ 45.89
$ 47.27
$ 48.69
$ 50.15
4 Bedroom
$ 55.14
$ 56.79
$ 58.49
$ 60.24
5 Bedroom
$ 66.13
$ 68.11
$ 70.15
$ 72.25
6 Bedroom
$ 79.37
$ 81.75
$ 84.20
$ 86.73
7 Bedroom
$ 95.17
$ 98.03
$ 100.97
$ 104.00
Multi -Family (1)
1 Bedroom
$ 27.37
$ 28.19
$ 29.04
$ 29.91
2 Bedroom
$ 32.83
$ 33.81
$ 34.82
$ 35.86
3 Bedroom
$ 39.40
$ 40.58
$ 41.80
$ 43.05
Mobile Homes
Any Size
$ 27.37
$ 28.19
$ 29.04
$ 29.91
Non -Residential
Existing unmetered
Varies
+3.0%
+3.0%
+3.0%
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, and condominiums.
(2) These are the maximum rates for each year, without a formal rate -setting process. Actual water rate
adjustments may be lower and would be tied to annual changes in the ENR index
City of Lodi
Current and Proposed Usage -Based Water Rates
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(2) These are the maximum rates for each year, without a formal rate -setting process. Actual water rate
adjustments may be lower and would be tied to annual changes in the ENR index
Future Rate Ceiling (2)
(Jan.
Current
2016)
Proposed
(Jan. 2017)
Potential
(Jan. 2018)
Potential
(Jan. 2019)
Rate Increase -->
3.0%
3.0%
3.0%
USAGE -BASED RATES
Monthly Service Charge
Single Family
Up to 3/4" meter
$ 21.23
$ 21.87
$ 22.53
$ 23.21
1" meter
$ 33.34
$ 34.34
$ 35.37
$ 36.43
1 1/2" meter
$ 63.35
$ 65.25
$ 67.21
$ 69.23
2" meter
$ 99.53
$ 102.52
$ 105.60
$ 108.77
Multi -Family and Non -Residential (1)
Up to 3/4" meter
$ 21.23
$ 21.87
$ 22.53
$ 23.21
1" meter
$ 33.34
$ 34.34
$ 35.37
$ 36.43
1 1/2" meter
$ 63.35
$ 65.25
$ 67.21
$ 69.23
2" meter
$ 99.53
$ 102.52
$ 105.60
$ 108.77
3" meter
$ 183.98
$ 189.50
$ 195.19
$ 201.05
4" meter
$ 304.59
$ 313.73
$ 323.14
$ 332.83
6" meter
$ 605.85
$ 624.03
$ 642.75
$ 662.03
8" meter
$ 967.52
$ 996.55
$ 1,026.45
$ 1,057.24
10" meter
$ 1,389.57
$ 1,431.26
$ 1,474.20
$ 1,518.43
Usage Rates ($/CCF)
Single Family
Tier 1 (0-10 CCF)
$ 0.94
$ 0.97
$ 1.00
$ 1.03
Tier 2 (11-50 CCF)
$ 1.25
$ 1.29
$ 1.33
$ 1.37
Tier 3 (>50 CCF)
$ 1.55
$ 1.60
$ 1.65
$ 1.70
Multi -Family and Non -Residential (1)
All water usage $ 1.12
$ 1.15
$ 1.18
$ 1.22
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(2) These are the maximum rates for each year, without a formal rate -setting process. Actual water rate
adjustments may be lower and would be tied to annual changes in the ENR index
Attachment B2
City of Lodi
Current and Proposed Flat Water Rates
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, and condominiums.
(2) These are the maximum rates for each year, without a formal rate -setting process. Actual water rate
adjustments may be lower and would be tied to annual changes in the ENR index
Future Rate Ceiling (2)
Current
(Jan. 2016)
Proposed
(March 2017)
Potential
(Jan. 2018)
Potential
(Jan. 2019)
Rate Increase -->
2.0%
3.0%
3.0%
FLAT RATES
Single Family Residential
1 Bedroom
$ 31.88
$ 32.52
$ 33.50
$ 34.51
2 Bedroom
$ 38.29
$ 39.06
$ 40.23
$ 41.44
3 Bedroom
$ 45.89
$ 46.81
$ 48.21
$ 49.66
4 Bedroom
$ 55.14
$ 56.24
$ 57.93
$ 59.67
5 Bedroom
$ 66.13
$ 67.45
$ 69.47
$ 71.55
6 Bedroom
$ 79.37
$ 80.96
$ 83.39
$ 85.89
7 Bedroom
$ 95.17
$ 97.07
$ 99.98
$ 102.98
Multi -Family (1)
1 Bedroom
$ 27.37
$ 27.92
$ 28.76
$ 29.62
2 Bedroom
$ 32.83
$ 33.49
$ 34.49
$ 35.52
3 Bedroom
$ 39.40
$ 40.19
$ 41.40
$ 42.64
Mobile Homes
Any Size
$ 27.37
$ 27.92
$ 28.76
$ 29.62
Non -Residential
Existing unmetered
Varies
+3.0%
+3.0%
+3.0%
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, and condominiums.
(2) These are the maximum rates for each year, without a formal rate -setting process. Actual water rate
adjustments may be lower and would be tied to annual changes in the ENR index
City of Lodi
Current and Proposed Usage -Based Water Rates
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(2) These are the maximum rates for each year, without a formal rate -setting process. Actual water rate
adjustments may be lower and would be tied to annual changes in the ENR index
Future Rate Ceiling (2)
Current
(Jan. 2016)
Proposed
(March 2017)
Potential
(Jan. 2018)
Potential
(Jan. 2019)
Rate Increase -->
2.0%
3.0%
3.0%
USAGE -BASED RATES
Monthly Service Charge
Single Family
Up to 3/4" meter
$ 21.23
$ 21.65
$ 22.30
$ 22.97
1" meter
$ 33.34
$ 34.01
$ 35.03
$ 36.08
1 1/2" meter
$ 63.35
$ 64.62
$ 66.56
$ 68.56
2" meter
$ 99.53
$ 101.52
$ 104.57
$ 107.71
Multi -Family and Non -Residential (1)
Up to 3/4" meter
$ 21.23
$ 21.65
$ 22.30
$ 22.97
1" meter
$ 33.34
$ 34.01
$ 35.03
$ 36.08
1 1/2" meter
$ 63.35
$ 64.62
$ 66.56
$ 68.56
2" meter
$ 99.53
$ 101.52
$ 104.57
$ 107.71
3" meter
$ 183.98
$ 187.66
$ 193.29
$ 199.09
4" meter
$ 304.59
$ 310.68
$ 320.00
$ 329.60
6" meter
$ 605.85
$ 617.97
$ 636.51
$ 655.61
8" meter
$ 967.52
$ 986.87
$ 1,016.48
$ 1,046.97
10" meter
$ 1,389.57
$ 1,417.36
$ 1,459.88
$ 1,503.68
Usage Rates ($/CCF)
Single Family
Tier 1 (0-10 CCF)
$ 0.94
$ 0.96
$ 0.99
$ 1.02
Tier 2 (11-50 CCF)
$ 1.25
$ 1.28
$ 1.32
$ 1.36
Tier 3 (>50 CCF)
$ 1.55
$ 1.58
$ 1.63
$ 1.68
Multi -Family and Non -Residential (1)
All water usage $ 1.12
$ 1.14
$ 1.17
$ 1.21
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(2) These are the maximum rates for each year, without a formal rate -setting process. Actual water rate
adjustments may be lower and would be tied to annual changes in the ENR index
City of Lodi -- Water Utility
Financial Plan Summary
FY 16-17 FY 17-18
Beginning Balance
Revenues
Water Sales
Interest Earnings
Other Revenues
Transfer From/(To) RSF (18x)
Transfer from Fund 182 for Debt Service
Total Revenues
Expenditures
Transfer Out to General Fund (Cost of Services)
Transfer Out to Capital Fund 181 for projects
To Capital Fund 181 (Depreciation)
Personnel Services
Utilities
Supplies, Mat'Is., Services & Other
Debt Service
1991 CSDW Loan Payments
Net 2010 Rev. Bond Payments
Total Expenditures
Ending Balance
Operating Reserve (25%)
Available Balance
Debt Service Coverage (min. 1.25)
3.0%
Jan. 2017
4,551,353
12,867,000
82,000
39,000
109,000
3.0%
Jan. 2018
FY 18-19
FY 19-20 FY 20-21
3,742,272
13,493,000
49,000
40,000
109,000
3.0%
Jan. 2019
1,198, 661
14, 246, 000
22,000
41,000
109,000
3.0%
Jan. 2020
3.0%
Jan. 2021
595,550 2,618,839
14, 869,000
40,000
42,000
286,000
15,199,000
117,000
43,000
286,000
13,097,000
780,000
3,850,000
2,761,000
762,000
3,400,000
2,353,080
13,691,000
780,000
6,000,000
2,854,000
794,000
3,501,000
2,305,611
14,418,000
780,000
4,550,000
2,951,000
828,000
3,605,000
2,307,111
15, 237, 000 15, 645, 000
780,000
2,500,000
3,051,000
863,000
3,712,000
780,000
500,000
3,123,000
892,000
3,800,000
2,307,711 2,305,911
13,906,080
16,234,611
15,021,111
13,213,711 11,400,911
3,742,272
1,198,661
595,550 2,618,839 6,862,928
1,926,000
1,816,272
2.41
1,982,000 2,041,000
(783,339) (1,445,450)
2.86 2.82
2,102,000
516,839
3.07
2,149,000
4,713,928
3.10
TE-CAPIXAL OUTLAY (561)
.h.
Beginning Balance
Revenues
Operating Transfers In
Interest Earnings
Loan Repayment from EUD (City Hall Annex)
DBCP Reimbursements
Retrofit Meter Install. Charge
Debt Proceeds
Total Revenues
1,447,432 303,597
3,850,000 6,000,000
15,000 (4,000)
585,024
251,000 252,000
146,621
4,550,000
254,000
81,621
2,500,000
(1,000)
256,000
126,621
500,000
1,000
78,000
4,116, 000
6,833,024
4,804,000
2,755,000 579,000
25%
FY 16-17
FY 17-18 FY 18-19
FY 19-20 FY 20-21
Expenditures
Loan to EUD (City Hall Annex) -
Water Meter/Main Install. Project 4,296,000 5,634,000 3,967,000
Water Taps 77,000 80,000 82,000 84,000 87,000
Miscellaneous Water Mains 52,000 53,000 55,000 56,000 58,000
GAC & Meter Repl (DBCP) 300,000 300,000 300,000 300,000
Meter Shop Design 50,000 200,000 - -
Southwest Gateway Water Tank - - 2,000,000 -
Surface Water Treatment Plant PS Generator 300,000
Finance Security Cameras 30,000 - -
Info Systems Data Center
Lodi Lake Boat Launch - - - -
Well 10C 110,488 - - - -
Well 1
Well 2 -Replace Motor - - - -
Well 3 & 1OR Abandonment 55,348 - - - -
Well 6R -Pump Rehab/Repl - - - -
Well 5 -Pump Rehab & Electrical Upgrade
Well 8 -Pump Rehab, Electrical Upgrade & Chlorination - - - -
Well 10 - Pump Rehab - Well 11 - - - -
Well 12 -Pump Rehab/Repl - - - -
Well 13 -Pump Rehab & Electrical Upgrade - - - -
Well 14 -Pump Rehab/Repl - 176,000
Well 15 -Pump Rehab/Repl 186,000 - -
Well 16 -Pump Rehab/Electrical Upgrade - - 219,000 -
Well 17 -Pump Rehab/Electrical Upgrade - - 202,000 -
Well 18 -Pumpb Rehab/Electrical Upgrade
Well 19 -Pump Replacement
Well 20 -Pump Rehab/Electrical Upgrade - - - -
Well 21 - - 225,000
Well 22 155,000 - -
Well 23 - 214,000
Well 24 - Pump Rehab & Electrical Upgrade - - - -- Well 25 - - - 232,000
Vehicles/Equipment 134,000 61,000 44,000 45,000 46,000
Total Expenditures 5,259,835 6,990,000 4,869,000 2,710,000 637,000
Ending Balance 303,597 146,621 81,621 126,621 68,621
FY 16-17
FY 17-18 FY 18-19
FY 19-20 FY 20-21
t
Beginning Balance
Revenues
Water Impact Mitigation Fees
Interest Earnings
Total Revenues
Expenditures
Transfer to Fund 181 for Well 27
Transfer to Operations Fund 180 for Debt Service
Total Expenditures
Ending Balance
Owed Fund 180 for Debt Service
330,561 337,561
109,000
7,000
109,000
7,000
344,561
109,000
9,000
353,561 362,561
286,000
9,000
286,000
9,000
116,000
109,000
116,000
109,000
118,000
109,000
295,000
286,000
295,000
286,000
109,000
109,000
109,000
286,000
286,000
337,561
344,561
353,561
362,561
371,561
6,587,000
7,382,000 8,158,000
8,737,000 9,295,000
Aggregate End -of -Year Balance *
Operating Reserve (25%)
Restricted DS Reserve
2010 COP Proceeds
Rate Stabilization Fund
Net Available for Capital Projects
5,913,000
1,926,000
1,530,000
2,457,000
3,220,000
1,982,000
1,530,000
2,561,000
2,041,000
1,530,000
(292,000) (1,010,000)
4,638,000
2,102,000
1,530,000
1,006,000
8,833,000
2,149,000
1,530,000
5,154,000
City of Lodi -- Water Utility
Financial Plan Assumptions
Financial Assumptions
General Inflation
Labor Inflation
Material/Energy Inflation
Construction Inflation
Interest Earnings
Customer Account Assumptions
No. of DUs/Accounts
No. of 3/4" Eq. Mtrs.
No. of New Connections
Customer Growth Rate
Water Mitigation Impact Fee
Residential $
Non -Residential
3.0% 3.0% 3.0% 3.0% 3.0%
3.4% 3.4% 3.4% 3.4% 3.4%
4.5% 4.5% 4.5% 4.5% 4.5%
3.0% 3.0% 3.0% 3.0% 3.0%
2.0% 2.0% 2.5% 2.5% 2.5%
23,656 23,706 23,756 23,806 23,856
25,704 25,754 25,804 25,854 25,904
50 50 50 50 50
0.19% 0.19% 0.19% 0.19% 0.19%
$ 5,710 $ 5,710
1,263 $ 1,263 $ 1,263
3,103 3,103 3,103
City of Lodi -- Water Utility
Financial Plan Summary
FY 16-17 FY 17-18
FY 18-19 FY 19-20
FY 20-21
Beginning Balance
Revenues
Water Sales
Interest Earnings
Other Revenues
Transfer from Fund 182 for Debt Service
Total Revenues
Expenditures
Transfer Out to General Fund (Cost of Services)
Transfer Out to Capital Fund 181 for projects
To Capital Fund 181 (Depreciation)
Personnel Services
Utilities
Supplies, Mat'Is., Services & Other
Debt Service
Net 2010 Rev. Bond Payments
Total Expenditures
Ending Balance
Operating Reserve (25%)
Available Balance
Debt Service Coverage (min. 1.25)
2.0%
Jan. 2017
3.0%
Jan. 2018
4,551,353 3,750,803
12,809,000
98,530
39,000
109,000
13,055,530
780,000
3,800,000
2,761,000
762,000
3,400,000
13,362,000
46,000
40,000
109,000
13,557,000
780,000
6,150, 000
2,854,000
794,000
3,501,000
2,353,080 2,305,611
13,856,080 16,384,611
3.0%
Jan. 2019
923,192
14,108, 000
13,000
41,000
109,000
14,271,000
780,000
4,600,000
2,951,000
828,000
3,605,000
3.0%
Jan. 2020
123,081
14,724,000
26,000
42,000
286,000
15,078,000
780,000
2,500,000
3,051,000
863,000
3,712,000
2,307,111 2,307,711
15,071,111 13,213,711
3.0%
Jan. 2021
1,987,370
15,051,000
99,000
43,000
286,000
15,479,000
780,000
500,000
3,123,000
892,000
3,800,000
2,305,911
11,400,911
3,750,803 923,192
123,081 1,987,370
6,065,459
1,926,000
1,824,803
2.39
1,982,000 2,041,000
(1,058,808) (1,917,919)
2.80 2.76
2,102,000
(114,630)
3.01
2,149,000
3,916,459
3.02
Beginning Balance
Revenues
Operating Transfers In
Interest Earnings
Loan Repayment from EUD (City Hall Annex)
DBCP Reimbursements
Retrofit Meter Install. Charge
Debt Proceeds
Total Revenues
1,447,432 252,597 246,620
3,800,000
14,000
6,150,000 4,600,000
(3,000) 3,000
585,024 -
251,000 252,000 254,000
234,620
2,500,000
3,000
256,000
283,620
500,000
5,000
78,000
4,065,000 6,984,024
4,857,000
2,759,000 583,000
FY 16-17
FY 17-18 FY 18-19
FY 19-20 FY 20-21
Expenditures
Water Meter/Main Install. Project 4,296,000 5,634,000 3,967,000
Water Taps 77,000 80,000 82,000 84,000 87,000
Miscellaneous Water Mains 52,000 53,000 55,000 56,000 58,000
GAC & Meter Repl (DBCP) 300,000 300,000 300,000 300,000 -
Meter Shop Design 50,000 200,000
Southwest Gateway Water Tank - - 2,000,000
Surface Water Treatment Plant PS Generator 300,000
Finance Security Cameras 30,000
Well 10C 110,488
Well 3 & 10R Abandonment 55,348
Well 14 -Pump Rehab/Rept 176,000
Well 15 -Pump Rehab/Rept 186,000
Well 16 -Pump Rehab/Electrical Upgrade - 219,000
Well 17 -Pump Rehab/Electrical Upgrade 202,000
Well 21 - - 225,000
Well 22 155,000 - -
Well 23 - - 214,000
Well 25 - - 232,000
Vehicles/Equipment 134,000 61,000 44,000 45,000 46,000
Total Expenditures 5,259,835 6,990,000 4,869,000 2,710,000 637,000
Ending Balance
252,597 246,620
234,620 283,620 229,620
MFWATERFACT '' ,IES (562
Beginning Balance 214,179 218,179 222,179 228,179 234,179
Revenues
Water Impact Mitigation Fees 109,000 109,000 109,000 286,000 286,000
Interest Earnings 4,000 4,000 6,000 6,000 6,000
Total Revenues 113,000 113,000 115,000 292,000 292,000
Expenditures
Transfer to Fund 181 for Well 27 -
Transfer to Operations Fund 180 for Debt Service 109,000 109,000 109,000 286,000 286,000
Total Expenditures 109,000 109,000 109,000 286,000 286,000
Ending Balance 218,179 222,179 228,179 234,179 240,179
Owed Fund 180 for Debt Service 6,587,000 7,382,000 8,158,000 8,737,000 9,295,000
FY 16-17
FY 17-18 FY 18-19
FY 19-20 FY 20-21
Aggregate End -of -Year Balance *
Operating Reserve (25%)
Restricted DS Reserve
2010 COP Proceeds
Rate Stabilization Fund
Net Available for Capital Projects
5,752,000 2,922,000 2,116,000 4,035,000 8,065,000
1,926,000 1,982,000 2,041,000 2,102,000 2,149,000
1,530,000 1,530,000 1,530,000 1,530,000 1,530,000
2,296,000 (590,000) (1,455,000) 403,000 4,386,000
City of Lodi -- Water Utility
Financial Plan Assumptions
Financial Assumptions
General Inflation
Labor Inflation
Material/Energy Inflation
Construction Inflation
Interest Earnings
Customer Account Assumptions
3.0% 3.0% 3.0% 3.0% 3.0%
3.4% 3.4% 3.4% 3.4% 3.4%
4.5% 4.5% 4.5% 4.5% 4.5%
2.0% 3.0% 3.0% 3.0% 3.0%
2.0% 2.0% 2.5% 2.5% 2.5%
No. of DUs/Accounts 23,656 23,706 23,756 23,806 23,856
No. of 3/4" Eq. Mtrs. 25,704 25,754 25,804 25,854 25,904
No. of New Connections 50 50 50 50 50
Customer Growth Rate 0.19% 0.19% 0.19% 0.19% 0.19%
Water Mitigation Impact Fee $ 5,710 $ 5,710
Residential $ 1,263 $ 1,263 $ 1,263
Non -Residential 3,103 3,103 3,103
City of Lodi -- Water Utility
Financial Plan Summary
FY 16-17
FY 17-18
FY 18-19
FY 19-20 FY 20-21
Beginning Balance
Revenues
Water Sales
Interest Earnings
Other Revenues
Transfer from Fund 182 for Debt Service
Total Revenues
Expenditures
Transfer Out to General Fund (Cost of Services)
Transfer Out to Capital Fund 181 for projects
To Capital Fund 181 (Depreciation)
Personnel Services
Utilities
Supplies, Mat'ls., Services & Other
Debt Service
Net 2010 Rev. Bond Payments
Total Expenditures
Ending Balance
Operating Reserve (25%)
Available Balance
Debt Service Coverage (min. 1.25)
2.0%
Jan. 2017
4,551,353
12,809,000
98,530
39,000
109,000
13,055,530
780,000
2,800,000
2.0%
Jan. 2018
2,761,000
762,000
3,400,000
2,353,080
12,856,080
4,750,803
13,301,000
94,000
40,000
109,000
13, 544, 000
780,000
3,300,000
3.0%
Jan. 2019
2,854,000
794,000
3,501,000
2,305,611
13,534,611
4,760,192
13,969,000
96,000
41,000
109,000
14, 215, 000
3.0%
Jan. 2020
780,000
5,500,000
2,951,000
828,000
3,605,000
2,307,111
15,971,111
3.0%
Jan. 2021
3,004,081 2,871,370
14,580,000
73,000
42,000
286,000
14,981,000
780,000
4,400,000
3,051,000
863,000
3,712,000
14,904,000
118,000
43,000
286,000
15,351,000
780,000
600,000
3,123, 000
892,000
3,800,000
2,307,711 2,305,911
15,113,711 11,500,911
4,750,803
4,760,192
3,004,081 2,871,370 6,721,459
1,926,000
2,824,803
2.39
1,982,000
2,778,192
2.80
2,041,000
963,081
2.74
2,102,000
769,370
2.96
2,149,000
4,572,459
2.97
• L OU
Beginning Balance
Revenues
Operating Transfers In
Interest Earnings
Loan Repayment from EUD (City Hall Annex)
DBCP Reimbursements
Retrofit Meter Install. Charge
Debt Proceeds
Total Revenues
1,447,432
2,800,000
14,000
251,000
252,597
3,300,000
(3,000)
585,024
252,000
246,620
5,500,000
3,000
254,000
271,620
4,400,000
3,000
256,000
199,620
600,000
5,000
78,000
3,065,000
4,134,024 5,757,000
4,659,000 683,000
FY 16-17
FY 17-18 FY 18-19
FY 19-20 FY 20-21
Expenditures
Water Meter/Main Install. Project 3,296,000 2,790,000 4,838,000 2,023,000
Water Taps 77,000 79,000 81,000 84,000 86,000
Miscellaneous Water Mains 52,000 53,000 54,000 56,000 57,000
GAC & Meter Repl (DBCP) 300,000 300,000 300,000 300,000
Meter Shop Design 50,000 200,000 - - -
Southwest Gateway Water Tank - - - 2,000,000 -
Surface Water Treatment Plant PS Generator - 300,000 - - -
Finance Security Cameras 30,000 - -
Well 10C 110,488 - -
Well 3 & 10R Abandonment 55,348
Well 14 -Pump Rehab/Rept - 174,000
Well 15 -Pump Rehab/Rept - 184,000 -
Well 16 -Pump Rehab/Electrical Upgrade - - 216,000
Well 17 -Pump Rehab/Electrical Upgrade - - 200,000 -
Well 21 - - 223,000
Well 22 155,000
Well 23 - - - - 212,000
Well 25 - - - - 230,000
Vehicles/Equipment 134,000 60,000 43,000 45,000 46,000
Total Expenditures 4,259,835 4,140,000 5,732,000 4,731,000 631,000
Ending Balance
252,597 246,620 271,620 199,620 251,620
C L S 62
Beginning Balance 214,179 218,179 222,179 228,179 234,179
Revenues
Water Impact Mitigation Fees 109,000 109,000 109,000 286,000 286,000
Interest Earnings 4,000 4,000 6,000 6,000 6,000
Total Revenues 113,000 113,000 115,000 292,000 292,000
Expenditures
Transfer to Fund 181 for Well 27 - - - -
Transfer to Operations Fund 180 for Debt Service 109,000 109,000 109,000 286,000 286,000
Total Expenditures 109,000 109,000 109,000 286,000 286,000
Ending Balance
218,179 222,179 228,179 234,179 240,179
Owed Fund 180 for Debt Service 6,587,000
7,382,000 8,158,000
8,737,000 9,295,000
FY 16-17
FY 17-18 FY 18-19
FY 19-20 FY 20-21
Aggregate End -of -Year Balance *
Operating Reserve (25%)
Restricted DS Reserve
2010 COP Proceeds
Rate Stabilization Fund
Net Available for Capital Projects
6,752,000 6,759,000 5,034,000 4,835,000 8,743,000
1,926,000 1,982,000 2,041,000 2,102,000 2,149,000
1,530,000 1,530,000 1,530,000 1,530,000 1,530,000
3,296,000 3,247,000 1,463,000 1,203,000 5,064,000
City of Lodi -- Water Utility
Financial Plan Assumptions
Financial Assumptions
General Inflation 3.0% 3.0% 3.0% 3.0% 3.0%
Labor Inflation 3.4% 3.4% 3.4% 3.4% 3.4%
Material/Energy Inflation 4.5% 4.5% 4.5% 4.5% 4.5%
Construction Inflation 2.0% 2.0% 3.0% 3.0% 3.0%
Interest Earnings 2.0% 2.0% 2.5% 2.5% 2.5%
Customer Account Assumptions
No. of DUs/Accounts 23,656 23,706 23,756 23,806 23,856
No. of 3/4" Eq. Mtrs. 25,704 25,754 25,804 25,854 25,904
No. of New Connections 50 50 50 50 50
Customer Growth Rate 0.19% 0.19% 0.19% 0.19% 0.19%
Water Mitigation Impact Fee $ 5,710 $ 5,710
Residential $ 1,263 $ 1,263 $ 1,263
Non -Residential 3,103 3,103 3,103
Please immediately confirm receipt
of' this fax by calling 333-6702
CITY OF LODI
P. O. BOX 3006
LODI, CALIFORNIA 95241-1910
ADVERTISING INSTRUCTIONS
SUBJECT: PUBLIC HEARING TO CONSIDER ADOPTING RESOLUTION SETTING
PRE -APPROVED ENGINEERING NEWS RECORD ADJUSTMENT INDEX
FOR USAGE -BASED AND FLAT WATER RATES FOR RESIDENTIAL,
COMMERCIAL, AND INDUSTRIAL CUSTOMERS
PUBLISH DATE: SATURDAY, FEBRUARY 4, 2017
LEGAL AD
TEAR SHEETS WANTED: One (1) please
SEND AFFIDAVIT AND BILL TO:
LNS ACCT. #0510052
JENNIFER M. FERRAIOLO, CITY CLERK
City of Lodi
P.O. Box 3006
Lodi, CA 95241-1910
DATED: THURSDAY, FEBRUARY 2, 2017
ORDERED BY: JENNIFER M. FERRAIOLO
CITY CLERK
&
PAMELA M. FARRIS
DEPUTY CITY CLERK
ELIZABETH BURGOS
ADMINISTRATIVE CLERK
Verify Appearance of this Legal in the Newspaper — Copy to File
Emailed to the Sentinel at dianer@lodinews.com at �a ''lime) on
(date) (pages)
LNS Phoned to confirm receipt of all pages at (time) EB PMF (Initials)
forms\advins.doc
DECLARATION OF POSTING
PUBLIC HEARING TO CONSIDER ADOPTING RESOLUTION SETTING
PRE -APPROVED ENGINEERING NEWS RECORD ADJUSTMENT INDEX FOR
USAGE -BASED AND FLAT WATER RATES FOR RESIDENTIAL,
COMMERCIAL, AND INDUSTRIAL CUSTOMERS
On Thursday, February 2, 2017, in the City of Lodi, San Joaquin County, California, a
Notice of Public Hearing to consider adopting resolution setting pre -approved
Engineering News Record adjustment index for usage -based and flat water rates for
residential, commercial, and industrial customers (attached and marked as Exhibit A)
was posted at the following locations:
Lodi City Clerk's Office
Lodi City Hall Lobby
Lodi Carnegie Forum
Worknet Office
I declare under penalty of perjury that the foregoing is true and correct.
Executed on February 2, 2017, at Lodi, California.
�7 I �•t� T./M.ro
PAMELA M. FARRIS
DEPUTY CITY CLERK
ORDERED BY:
JENNIFER M. FERRAIOLO
CITY CLERK
ELIZABETH BURGOS
ADMINISTRATIVE CLERK
N:\Administration\CLERK\Public Hearings \AFFADAVITS\DECPOSTPW2.doc
1
CITY OF LODI
Carnegie Forum
305 West Pine Street, Lodi
NOTICE OF PUBLIC HEARING
Date: February 15, 2017
Time: 7:00 p.m.
r
For information regarding this notice please contact:
Jennifer M. Ferraiolo
City Clerk
Telephone: (209) 333-6702
_______ _ _ .,
DGI%BFLAI
____
L
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that on Wednesday, February 15, 2017, at the
hour of 7:00 p.m., or as soon thereafter as the matter may be heard, the City
Council will conduct a public hearing at the Carnegie Forum, 305 West Pine
Street, Lodi, to consider the following matter:
a) Adoption of resolution setting pre -approved Engineering News
Record adjustment index for usage -based and flat water rates for
residential, commercial, and industrial customers (alternatives are
identified on the attached Exhibits A and B).
Information regarding this item may be obtained in the Public Works
Department, 221 West Pine Street, Lodi, (209) 333-6706. All interested persons
are invited to present their views and comments on this matter. Written
statements may be filed with the City Clerk, City Hall, 221 W. Pine Street, 2nd
Floor, Lodi, 95240, at any time prior to the hearing scheduled herein, and oral
statements may be made at said hearing.
If you challenge the subject matter in court, you may be limited to raising only
those issues you or someone else raised at the public hearing described in this
notice or in written correspondence delivered to the City Clerk at, or prior to, the
public hearing.
By Order of the Lodi City Council:
•I l Hyl,
nifer Ml erraiolo
ity Clerk
Dated: February 1, 2017
Approved as to form:
Janice 0.. Magdich
City Attorney
AVISO: Para obtener ayuda interpretative con esta noticia, por favor (lame a la oficina de la
Secretaria Municipal, a las (209) 333-6702.
J:CLERK\PUBLICHEARING\NOTICES\PH NOTICE publication WaterRates.doc 2/2/17
FLAT RATES
Single Family Residential
1 Bedroom $ 31.88 $ 32.84
2 Bedroom $ 38.29 $ 39.44
3 Bedroom $ 45.89 $ 47.27
4 Bedroom $ 55.14 $ 56.79
5 Bedroom $ 66.13 $ 68.11
6 Bedroom $ 79.37 $ 81.75
7 Bedroom $ 95.17 $ 98.03
Multi -Family (1)
1 Bedroom $ 27.37 $ 28.19
2 Bedroom $ 32.83 $ 33.81
3 Bedroom $ 39.40 $ 40.58
Mobile Homes
Any Size $ 27.37 $ 28.19
Non -Residential
Existing unmetered Varies +3.0%
Potential Potential
(Jan. 2018) (Jan. 2019)
Exhibit A
City of Lodi
Current and Proposed Flat Water Rates
Current Proposed
(Jan. 2016) (Jan. 2017)
Rate Increase --> 3.0%
Notes:
Future Rate Ceiling (2)
3.0% 3.0%
$ 33.83 $ 34.84
$ 40.62 $ 41.84
$ 48.69 $ 50.15
$ 58.49 $ 60.24
$ 70.15 $ 72.25
$ 84.20 $ 86.73
$ 100.97 $ 104.00
$ 29.04 $ 29.91
$ 34.82 $ 35.86
$ 41.80 $ 43.05
$ 29.04 $ 29.91
+3.0% +3.0%
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, and condominiums.
(2) These are the maximum rates for each year, without a formal rate -setting process. Actual water rate
adjustments may be lower and would be tied to annual changes in the ENR index
City of Lodi
Current and Proposed Usage -Based Water Rates
Current Proposed
(Jan. 2016) (Jan. 2017)
Rate Increase --> 3.0%
USAGE -BASED RATES
Monthly Service Charge
Single Family
Up to 3/4" meter
1" meter
1 1/2" meter
2" meter
$ 21.23
$ 33.34
$ 63.35
$ 99.53
Multi -Family and Non -Residential (1)
Up to 3/4" meter $ 21.23
1" meter $ 33.34
1 1/2" meter $ 63.35
$ 99.53
$ 183.98
$ 304.59
$ 605.85
$ 967.52
2" meter
3" meter $ 189.50
4" meter $ 313.73
6" meter $ 624.03
8" meter $ 996.55
10" meter $ 1,389.57 $ 1,431.26
Usage Rates ($/CCF)
Single Family
Tier 1 (0-10 CCF) $ 0.94 $ 0.97
Tier 2 (11-50 CCF $ 1.25 $ 1.29
Tier 3 (>50 CCF) $ 1.55 $ 1.60
Multi -Family and Non -Residential (1)
All water usage $ 1.12 $ 1.15
21.87
34.34
65.25
102.52
21.87
34.34
65.25
102.52
Future Rate Ceiling (2)
Potential Potential
(Jan. 2018) (Jan. 2019)
3.0% 3.0%
$ 22.53
$ 35.37
$ 67.21
$ 105.60
$ 22.53
$ 35.37
$ 67.21
$ 105.60
$ 195.19
$ 323.14
$ 642.75
$ 1,026.45
$ 1,474.20
1.00
1.33
1.65
$ 23.21
$ 36.43
$ 69.23
$ 108.77
$ 23.21
$ 36.43
$ 69.23
$ 108.77
$ 201.05
$ 332.83
$ 662.03
$ 1,057.24
$ 1,518.43
1.03
1.37
1.70
$ 1.18 $ 1.22
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(2) These are the maximum rates for each year, without a formal rate -setting process. Actual water rate
adjustments may be lower and would be tied to annual changes in the ENR index
Exhibit B
City of Lodi
Current and Proposed Flat Water Rates
Current Proposed
(Jan. 2016) (March 2017)
Rate Increase --> 2.0%
FLAT RATES
Single Family Residential
1 Bedroom $ 31.88 $ 32.52
2 Bedroom $ 38.29 $ 39.06
3 Bedroom $ 45.89 $ 46.81
4 Bedroom $ 55.14 $ 56.24
5 Bedroom $ 66.13 $ 67.45
6 Bedroom $ 79.37 $ 80.96
7 Bedroom $ 95.17 $ 97.07
Multi -Family (1)
1 Bedroom $ 27.37 $ 27.92
2 Bedroom $ 32.83 $ 33.49
3 Bedroom $ 39.40 $ 40.19
Mobile Homes
Any Size $ 27.37 $ 27.92
Non -Residential
Existing unmetered Varies +3.0%
Notes:
Future Rate Ceiling (2)
Potential Potential
(Jan. 2018) (Jan. 2019)
3.0% 3.0%
33.50 $ 34.51
40.23 $ 41.44
48.21 $ 49.66
57.93 $ 59.67
69.47 $ 71.55
83.39 $ 85.89
99.98 $ 102.98
28.76 $ 29.62
34.49 $ 35.52
41.40 $ 42.64
$ 28.76 $ 29.62
+3.0% +3.0%
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, and condominiums.
(2) These are the maximum rates for each year, without a formal rate -setting process. Actual water rate
adjustments may be lower and would be tied to annual changes in the ENR index
City of Lodi
Current and Proposed Usage -Based Water Rates
Current Proposed
(Jan. 2016) (March 2017)
Rate Increase --> 2.0%
USAGE -BASED RATES
Monthly Service Charge
Single Family
Up to 3/4" meter $ 21.23 $ 21.65
1" meter $ 33.34 $ 34.01
1 1/2" meter $ 63.35 $ 64.62
2" meter $ 99.53 $ 101.52
Multi -Family and Non -Residential (1)
Up to 3/4" meter $ 21.23 $ 21.65
1" meter $ 33.34 $ 34.01
1 1/2" meter $ 63.35 $ 64.62
2" meter $ 99.53 $ 101.52
3" meter $ 183.98 $ 187.66
4" meter $ 304.59 $ 310.68
6" meter $ 605.85 $ 617.97
8" meter $ 967.52 $ 986.87
10" meter $1,389.57 $ 1,417.36
Usage Rates ($/CCF)
Single Family
Tier 1 (0-10 CCF) $ 0.94 $ 0.96
Tier 2 (11-50 CCF $ 1.25 $ 1.28
Tier 3 (>50 CCF) $ 1.55 $ 1.58
Multi -Family and Non -Residential (1)
All water usage $ 1.12 $ 1.14
Future Rate Ceiling (2)
Potential Potential
(Jan. 2018) (Jan_ 2019)
3.0% 3.0%
$ 22.30 $ 22.97
$ 35.03 $ 36.08
$ 66.56 $ 68.56
$ 104.57 $ 107.71
$ 22.30 $ 22.97
$ 35.03 $ 36.08
$ 66.56 $ 68.56
$ 104.57 $ 107.71
$ 193.29 $ 199.09
$ 320.00 $ 329.60
$ 636.51 $ 655.61
$1,016.48 $1,046.97
$1,459.88 $1,503.68
$ 0.99 $ 1.02
$ 1.32 $ 1.36
$ 1.63 $ 1.68
$ 1.17 $ 1.21
Notes:
(1) Multi -family includes duplexes, triplexes, fourplexes, apartments, condominiums, and mobile home parks.
(2) These are the maximum rates for each year, without a formal rate -setting process. Actual water rate
adjustments may be lower and would be tied to annual changes in the ENR index