Wastewater & Recycled Water Rates
The Wastewater and Recycled Water Rates were developed to provide a fair and equitable method of obtaining revenue for the operation and maintenance of the wastewater and recycled water systems. On June 26, 2017, the City Council approved the 2017 Wastewater and Recycled Water Rates Study, which outlines how the proposed rates were calculated. Only those developed parcels within the Phase One area will be charged for these services. These rates will be charged once the wastewater and recycled water service is provided to the customer.
The 2017 Wastewater and Recycled Water Rates were developed based upon assumptions for the operation, maintenance and management costs of the Civic Center Water Treatment Facility (CCWTF). The CCWTF has been operating almost three years, and the City has collected the actual operation and maintenance costs. Unfortunately, the original assumptions made to develop the original wastewater and recycled water service rates were not sufficient to cover the actual expenses. The City used a loan of General Funds to cover the deficit.
On May 11, 2020, the City Council discussed the wastewater and recycled water rates for the Civic Center Water Treatment Facility (CCWTF). Due to the economic impacts of the COVID-19 pandemic, the City Council directed staff to postpone raising the wastewater and recycled water rates and to continue to use the current wastewater and recycled water rates for Fiscal Year 2020-2021. Additionally, the Council directed staff to treat the excess operating costs of the CCWTF as a loan from the General Fund to the CCWTF O&M Fund with a repayment term of three years commencing in Fiscal Year 2021-2022. Repayment will be built into the new wastewater and recycled water rates that will be presented to the Council in the spring of 2021.
On June 22, 2020, the City Council approved the collection of wastewater services charges for the CCWTF for Fiscal Year 2020-2021. Council also approved the terms for the loan, which include establishing the interest rate for the loan based on the published quarterly apportionment rate from LAIF as established by the Treasurer of the State of California. This interest will be accrued to the loan on an annually and will compound over the life of the loan. The effective date of the loan will be July 1, 2019.
On October 28, 2020, the Administration and Finance Subcommittee recommended the City Council approve the interfund loan agreement with these terms. On November 9, 2020, City Council adopted Resolution No. 20-61 approving an interfund loan agreement for the Civic Center Water Treatment Facility Operations and Maintenance Fund.
The 2017 Wastewater and Recycled Water Rates need to be adjusted to collect the correct amount of revenue to offset the actual operation, maintenance, and management costs and to refund the loan from the General Fund.
On May 13, 2021, the City Council received a presentation on the 2021 Wastewater and Recycled Water Rates and authorized the mailing of the Proposition 218 notices to the affected property owners within Phase One.
On June 28, 2021, City Council held a public hearing to establish the wastewater and recycled water service charges for Fiscal Year 2021-2022, Fiscal Year 2022-2023, and Fiscal Year 2023-3034.
wastewater and recycled water billing
In an effort to simplify the collection of the wastewater service fees, the wastewater service charges for each developed parcel within the Phase One area are added to the parcel’s property tax bill. This method reduces the City’s burden of sending out wastewater bills on a monthly basis. Furthermore, this method reduces and potentially eliminates non-payment of charges due to the additional leverage of a lien on the property.