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Item 08 - Water and Sewer Rate Adjustments
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Item 08 - Water and Sewer Rate Adjustments
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1/14/2026 2:34:09 PM
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City Clerk
Doc Type
Agenda Packet
Agency
Public Works
Item #
8
Date
1/20/2026
Destruction Year
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Fats, Oils, and Grease (FOG) — costs related to the FOG program <br />City staff identified the costs which were attributable to FOG customers. FOG costs make up <br />approximately 9 percent of the total operating costs and consist of two full-time employees and $456,628 <br />in consulting costs. Table 83 shows the costs allocated to the FOG program and the percent of total <br />operating expenses. <br />Table 83. Percent of O&M Functional Categories Allocated16 <br />Full Time Employees (2) $345,432 <br />Consulting Costs $456,658 <br />Total Costs $802,090 <br />Total Operating Budget $8,759,440 <br />Percent to FOG 9% <br />The City's sewer system is a conveyance only system, so all of the costs are fixed besides the level of <br />FOG treatment. For the purposes of the cost of service analysis and rate design operating and capital <br />costs were allocated between the 3 categories described, Fixed Costs, Service Costs, and FOG Costs. <br />Table 84 and Table 85 show the allocation of costs into the sewer functional categories. <br />Table 84. Total of Operating Functional Categories Allocated to Cost Components <br />Operating Expense $8,759,440 <br />Total Costs $8,759,440 <br />Fixed $455,890 5% <br />Service $393,268 86% <br />FOG $747,320 9% <br />Table 85. Total of Non -operating Functional Categories Allocated to Cost Components <br />Capital Expense <br />$4,184,974 <br />Total Costs <br />$4,184,974 <br />Fixed <br />$3,808,326 <br />91 % <br />Service <br />$0 <br />0% <br />FOG <br />$376,648 <br />9% <br />Table 86 displays the functionalized O&M costs and non -operating costs allocated to cost causative <br />components for the sewer system. The non -operating expenses for the test year are made up of planned <br />"City staff provided individual cost allocations for each budget item and system asset based on the standard categories <br />shown <br />City of Santa Ana - 2026 Water and Sewer Rate Study <br />57 <br />
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