65B - RPT SEWER RATES-BW - Laserfiche WebLink

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Authorize Staff to Prepare Documents for Proposed Water and Sewer Rate Adjustments September 17, 2019 Page 4 Typical Bill Impact The financial impact of the proposed revenue adjustments and rate structure changes on the typical customer was carefully evaluated. The overall increase in the combined typical bill of a single-family residential customer will be $4.92 per month (based on the average 1,257 cubic feet of water used per month by typical single-family residences). When compared to neighboring cities, the typical Santa Ana customer will continue to pay a similar amount, on average, for water and sewer services as compared to its neighboring cities such as Garden Grove, Brea, Fullerton and Orange. Low-income Assistance Program While the proposed rate structure will provide rate relief to numerous multifamily accounts, the rate setting requirements of applicable law (namely California's Proposition 218) disallows the use of rate revenue to fund a low-income water and/or sewer rate assistance program. Any such program needs to be funded through an outside source of revenue. Staff will explore viable options for funding a low-income subsidy program and report findings to Council at a future date. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #6 — Community Facilities & Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City assets), Strategy H (complete water/waste water rate study to ensure adequate resources to capture critical long-term capital needs). ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT $75,000 has been budgeted and is available for expenditure in Fiscal Year 2019-20 in the Water Admin Engineering -Miscellaneous Operating Expense and Sanitary Sewer Service - Miscellaneous Operating Expense accounts (Nos. 06017645-63001 and 05617640-63001) to cover any costs incurred for preparing and mailing the notices. Fiscal Accounting Unit — Fund Accounting Unit, Account Amount Year Account No. Description Description FY19-20 06017645-63001 Water WaterAdmin/Engineering, $37,500 Misc. Operating Expenses FY19-20 05617640-63001 Sanitary Sewer Sanitary Sewer Service, Misc. $37,500 Service Operating Expenses Total Amount $75,000 L.