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HomeMy WebLinkAboutCorrespondence - Item 23 Zuniga, Diana From: Dale Helvig < Sent: Monday, March 16, 2026 3:16 PM To: eComment; Amezcua, Valerie; Phan, Thai; Vazquez, Benjamin; Lopez, Jessie; Bacerra, Phil; Hernandez, Johnathan; Penaloza, David Cc: Hall, Jennifer; Carvalho, Sonia R.; Nunez, Alvaro; Vazquez, Sylvia; Thai, Minh; Rosas, Rudy Subject: 2026-03-17 Letter to City Council - Item 23 (Rev 1) Attachments: 2026-03-17 Letter to City Council-Item 23.pdf Attention: This email originated from outside of City of Santa Ana.Use caution when opening attachments or links. Attached file for March 17, 2026 City Council Meeting. Dale Helvig Resident, Santa Ana i Dale Helvig Resident, Santa Ana CA 92706 March 17, 2026 Mayor Amezcua and Santa Ana City Councilmembers City of Santa Ana 20 Civic Center Plaza, 81" Floor Santa Ana CA 92702 Subject: Items 23—Proposed Water and Sewer Rate Adjustments I agree that rates need to be adjusted to reflect growing demands the City is facing, but I feel the information that is being presented to the City is misleading. I reviewed Exhibit2, City Of Santa Ana 2026 Water and Sewer Rate Study Final Report. It is very extensive, but some of the items seem to be off. As such it gives a picture that the rate increase is not particularly bad. Analyzing this report I came to a different conclusion. My assessment is based on a water supply of 5/8" x 3/4" with a usage of 21 CCF. My analysis is as follows: The first year the rate increase will be 18.61 percent. By the final year of this proposal, residents using 21 CCF the rates will have increased by 64.87 percent as compared to their 2025 bill. Monthly Water Bill Based on 21 CCF Current 2026 2027 2028 2029 2030 5 91.88 $ 108.98 $ 118.68 $ 129.01 $ 140.33 $ 151.48 Year to Year Increase $ 17.10 $ 9.70 $ 10.33 $ 11.32 $ 11.15 Increase per Month from 2025 $ 17.10 $ 26.80 $ 37.13 $ 48.45 $ 59.60 Year to Year Increase 18.61% 8.90% 8.70% 8.77% 7.95% Annual Bill Increase $ 205.20 $ 116.40 $ 123.96 $ 135.84 $ 133.80 Annual Bill Increase to 2025 $ 205.20 $ 321.60 $ 445.56 $ 581.40 $ 715.20 %Increase From Current Rate 18.61% 29.17% 40.41% 52.73% 64.87- 1 am not against raising the rates but let's be upfront with the impact it will have on the residents. Advertising just the first-year percent increase is not right. The City Council should look at the total impact this will have on the residents. Right now, it is not very transparent. Page 1 of 5 2026-03-17 Letter to City Council-Item 23 Dale Helvig Resident, Santa Ana CA 92706 Key Take Aways From Exhibit 2, City Of Santa Ana 2026 Water and Sewer Rate Study Final Report (Based on report standard of 21 CCF per month) • Proposed Water and Sewer Rate Adjustments will increase monthly charges by$17.10 (18.61 percent increase) in the first year and $59.60 per month (64.87 percent increase) by the end of this proposal. • Toble 5, Proposed Monthly Fixed Charges for All Customers with Meter Size 5/8"X 3/4",2026 to FY2030, will increase monthly charges by$2.40 (9.87 percent increase) in the first year. By the end of this proposal monthly increase will be$13.05 (53.68 percent increase). • Toble 7, Proposed Variable Rates forAll Customers,2026 to 2030 (Tier 1)will increase monthly charge by $11.76 (21.54 percent increase) in the first year. By the end of this proposal monthly increase will be$38.22 (70.0 percent increase). • Toble 11, Proposed Monthly Fixed Sewer Rates 2026 to 2030 will increase monthly charge by$2.94 (38.58 percent increase) in the first year. By the end of this proposal monthly increase will be$8.33 (109.32 percent increase). • Monthly Proposed Sanitation [Fixed] Service Charges is NOT addressed. Key Rate Increases Monthly Annual Source First Year(2026) Fifth Year vs 2025 First Year(2026) Fifth Year vs 2025 Table 5,Monthly $2.40 9.87% $13.05 53.68% $28.8 9.87% $156.60 53.68% Meter Fixed Charges Table 7,Tier 1 Rates $11.76 21.54% $38.22 70.0% $141.12 21.54% $458.64 70.0% Table 11,Sewer Rates $2.94 38.58% $8.33 109.32 0 $35.28 38.58% $99.96 109.32% Minimum Monthly Bill Increase Minimum Annual Bill Increase $17.10 18.61% $59.60 64.87% $205.20 18.61% 1 $715.20 64.87% Respectfully, Dale A Helvig Resident, Santa Ana cc: Alvaro Nunez, Minh Thai, City Manager, Santa Ana Deputy City Manager, Santa Ana Sonia Carvalho, Sylvia Vazquez, City Attorney, Santa Ana Deputy City Manager, Santa Ana Page 2 of 5 2026-03-17 Letter to City Council-Item 23 OTHER THINGS TO CONSIDER Annual Meter Count. With all the development that has been approved we will increase the meter count by only 269 in the next five years! I think this needs further explanation. Table 14. Annual Meter Count 2026 to 2031 5/8" X 3/4" 31,457 31,459 31,457 31,458 31,457 31,458 3/4" 5,515 5,519 5,523 5,527 5,531 5,535 1" 4,963 4,996 5,029 5,061 5,095 5,129 11/2" 1,360 1,359 1,360 1,360 1,361 1,361 2" 1,764 1,764 1,764 1,764 1,764 1,764 3" 323 323 323 323 323 323 4" 475 481 487 492 498 504 6" 692 710 710 727 745 745 8" 450 450 450 450 450 450 10" 101 101 101 101 101 101 Total 47,100 47,161 47,203 47,263 47,325 47,369 Annual Sewer Customer Counts. It shows a combined increase of only 156 in single-family and multi-family in the next five years! Table 15. Annual Sewer Customer Counts, 2026 to 2031 Single Family 5/8"X 3/4" 26,900 26,900 26,900 26,900 26,900 26,900 3/4" 4,833 4,833 4,833 4,833 4,833 4,833 1" 2,128 2,149 2,171 2,192 2,214 2,236 11/2" 88 88 88 88 88 88 2" 7 7 7 7 7 7 Total 33,956 33,977 33,999 34,020 34,042 34,064 Multi Family 5/8"X 3/4" 1,866 1,866 1,866 1,866 'I,866 1,866 3/4" 141 145 148 152 155 159 1" 1,014 '1,019 1,023 1,027 1,032 1,036 11/2" 237 236 237 237 238 238 2" 223 223 223 223 223 223 3" 88 88 88 88 88 88 4" 66 67 68 69 70 71 6" 28 29 29 29 30 30 8" 2 2 2 2 2 2 10" 1 1 1 1 1 1 Total 3,666 3,675 3,685 3,694 3,705 3,714 Page 3 of 5 2026-03-17 Letter to City Council-Item 23 Dale Helvig Resident, Santa Ana CA 92706 From the Final Report... Section 1.3 Rate Recommendations and Proposed Rates This section states: "Water Adjusting rates annually by the recommended revenue adjustments of 9.0 percent in May 2026, followed by 9.0 percent annual adjustments July 2027 through July 2029, with a final adjustment of 8.0 percent in July 2030. Sewer Adjusting rates annually by the recommended revenue adjustment of 13.5 percent in May 2026, followed by a 13.5 percent annual adjustment July 2027, and then 10.0 adjustments July 2028 through July 2030 The current fixed cost for water, based on meter size is $24.31. The proposed rate increase for 2026 is$26.71. This is an increase of 9.87%. The following years are as stated in the report, 9%, 9%, 9%, 8%. Table 5. Proposed Monthly Fixed Charges for All Customers by Meter Size, 2026 to FY 2030 Retail Fixed Charges 5/8" X 3/4" $2p.71 $29.11 $3 1.73 $34.59 $37.36 Likewise, the current fixed cost for sewer, based on meter size is $7.62. The proposed rate increase for 2026 is$10.56. This is an increase of 38.58 percent. The following years are as stated in the report, 13.4%, 10%, 10%, 10%. Current payment is $15.26 every two months. Tables 10 and 11 do not take into account this item should be adjusted for monthly billing. If it did it would show we will see a 38.58 percent increase in the first year, not the 13.5 percent shown in Table 10 Table 11. Proposed Monthly Fixed Sewer Rates 2026 to 2030 ChargesSewer Fixed 5/8" X 3/4" $10.56 $11.98 $13.18 $14.50 $15.95 My Calculations: Table 11.Proposed Monthly Fixed Sewer Rates 2026 to 2030 Monthly Proposed Sewer Fixed Charges Current Rate: $ 15.24 Effective Date 5/1/2026 7/1/2027 7/1/2028 7/1/2029 7/1/2030 Adjusted for Monthly Billing: $ 7.62 Monthly $ 10.56 $ 11.98 $ 13.18 $ 14.50 $ 15.95 Delta From Current Rate $ 2.94 $ 4.36 $ 5.56 $ 6.88 $ 8.33 Year to Year Increase 38.58% 13A% 10.0% 10.0% 10.0% Percent Increase From Current Rate 38.58% 57.22% 72.97% 90.29% 109.32% Page 4 of 5 . - 2026-03-17 Letter to City Council-Item 23 Dale Helvig Resident, Santa Ana CA 92706 In SUPPORTING INFORMATION B C D E F G H I J K 1 2 Average of 8,975 gallons of Monthly Water Bill Based on 21 CCF 3 water(21 CCF)used per Current 2026 2027 2028 2029 2030 4 month by typical residential $ 91.88 $ 108.98 $ 118.68 $ 129.01 $ 140.33 $ 151.48 5 Year to Year Increase $ 17.10 $ 9.70 $ 10.33 $ 11.32 $ 11.15 6 Customer. Increase per Month from 2025 $ 17.10 $ 26.80 $ 37.13 $ 48A5 $ 59.60 7 Year to Year Increase 18.61% 8.90% 8.70% 8.77% 7.95% 8 Annual Bill Increase $ 205.20 $ 116.40 $ 123.96 $ 135.84 $ 133.80 9 Annual Bill Increase to 2025 $ 205.20 $ 321.60 $ 445.56 $ 581.40 $ 715.20 10 %Increase From Current Rate 18.61% 29.17% 40.41% 52.73% 64.87% 11 Table 5. Proposed Monthly Fixed Charges for All Customers with Meter Size 5/8"X 3/4",2026 to FY 2030 12 Monthly Proposed Water[Fixed]Charge Rates 13 $ 48.62 Effecctive Date 5/1/2026 7/1/2027 7/1/2028 7/1/2029 7/1/2030 14 Adjusted for Monthly Billing: $ 24.31 Monthly $ 26.71 $ 29.11 $ 31.73 $ 34.59 $ 37.36 15 Delta From Current Rate $ 2.40 $ 4.80 $ 7.42 $ 10.28 $ 13.05 16 Year to Year Increase 9.87% 9.0% 9.0% 9.0% 8.0% 17 Percent Increase From Current Rate 9.87% 19.74% 30.52% 42.29% 53.68% 18 Table 7, Proposed Variable Rates for All Customers,2026 to 2030 19 Tier 1 Monthly Proposed Commodity Charge Rates per CCF 20 Current Tier 1 Rate: $ 2.60 Effective Date 5/1/2026 7/1/2027 7/1/2028 7/1/2029 7/1/2030 21 Monthly Cost of 21 CCF: $ 54.60 Tier 1 Monthly $ 3.16 $ 3.44 $ 3.75 $ 4.09 $ 4.42 22 Delta From Current Rate $ 0.56 $ 0.84 $ 1.15 $ 1.49 $ 1.82 23 Tier 1 Monthly Cost of 21 CCF $ 66.36 $ 72.24 $ 78.75 $ 85.89 $ 92.82 24 Year to Year Increase 21.54% 8.9% 9.0% 9.1% 8.1% 25 Percent Increase From Current Rate 21.54% 32.31% 44.23% 57.31% 70.00% A B C D E F G H I J K L 41 42 Annual Bill Final 43 Present 5/1/2026 7/1/2027 7/1/2028 7/1/2029 7/1/2030%Increase 44 Annual Proposed Fixed Charges $ 291.72 S 320.52 $ 349.32 $ 380.76 $ 415.08 $ 448.32 53.68% 45 SUMIC13'6) G14.12 H14'12 114'12 J14'12 K14'12 46 Delta: 5 28.80 5 57.60 S 89.04 S 123.36 5 156.60 47 Tier 1 Annual Proposed Commodity Charges Rates per CCF $ 655.20 S 796.32 $ 866.88 $ 945.00 $1,030.68 $1,113.84 70.00% 48 (Assumes 21 CCF Used per month) C21'12 623'12 H23'12 123'12 123'12 K23'12 49 Delta: S 142.12 S 222.68 S 289.80 S 375.48 S 458.64 50 Annual Proposed Sewer Fixed Charges $ 91.44 S 126.72 S 143.76 $ 158.16 S 174.00 $ 191.40 109.32% 51 SUM(C34.6) G29.12 H29'12 29'12 J29'12 K29'12 52 Delta: S 35.28 S 52.32 S 66.72 S 82.56 S 99.96 53 Minimum Annual Bill Using 121 CCF per month) $1,038.36 $1,243.56 $1,359.96 $1,483.92 $1,619.76 $1,753.56 68.88% 54 Minimum Annual Increase Compared to 2025: $ 5 205.20 5 321.60 $ 445.56 5 581.40 5 715.20 55 GS3453 HS3453 1S3-FS3 J53-FS3 K53-F53 56 Minimum Monthly Bill Increase $ 17.10 $ 26.80 $ 37.13 $ 48.45 $ 59.60 Page 5 of 5 . - 2026-03-17 Letter to City Council-Item 23