2018 CITRUS HEIGHTS WATER DISTRICT BUDGET, CAPITAL IMPROVEMENT PROGRAM (CIP) AND RATE PRESENTATION

Citrus Heights Rotary ClubSeptember 27, 2017

Mission Statement

“It is the mission of the Citrus Heights Water District to furnish a dependable supply of safe, quality water delivered to its customers in an efficient, responsive, and affordable manner.”

2

CHWD Boundaries 3

Budget Process 4

Strategic Planning

(Jun)

Budget & Rate Model Study

Session(Aug)

Board Direction

Introduction of Proposed Budget

(Sep)

Board Direction

Prop 218 Notice(Sep 22)

Notice mailed to customers

Introduction of Proposed Misc.

Charges and Fees(Oct)

Board Direction

Community Meetings

(Oct & Early Nov)

Public Information & Engagement

Budget & Rate

Adoption(Nov 8)

•Public Hearings •Rate Adoption

Strategic Plan

Capital Improvement Program Project 2030—Water Main Replacements Water Efficiency Program Water Supply Organization Wide Objectives

5

Legislative Corner

Legislative Tracking & Advocacy

◦ Conservation Bills Water use Target Setting for Customers Reallocation of Water Rights Enforcement of Long-term & Short-term Standards

◦ Public Goods Charge Bill (Water Tax) Impose Fees on All Customers’ Water Bills Divert Ratepayer Funds (District Infrastructure)

6

About the Budget

7

Building Blocks to the Budget

San Juan Wholesale Charge

16.2%

Operations/ Maintenance

24.8%

Salary/Benefits23.1%

Rate Revenue95%

Collection Fees/Penalties

3%

Grants/Other2%

Rate Model

8

Transfers out to All other Funds and Reserves

Capital Improvement

Program26.7%

Operating Fund

Transfer to Reserves

9.2%

San Juan Water District

Hinkle Reservoir - $23.9mil Water Channel Improvements - $7.4mil Filter/floor repairs & Media/Nozzle Replacement - $4.1mil Transmission Pipelines $2.1mil

Projected Rate Increase

9

Capital Improvement Program

10

Current Capital Improvement Plan (1999-2029)

• Replace older steel water mains• Install new transmission and distribution mains• Fire hydrant and water service replacements and upgrades• Water meter replacements• New groundwater wells• $53 million ($3.5 to 5.3 mil yearly)

11

2017 Capital Projects12

2017 Budget - $3,967,347• Baird Way 12” – (Design/Const)• Graham Cir 6”/ Circuit Dr 8” - (Design)• Highland Ave, Rosa Vista Ln (Design & Const) • Wind Way 8”, Longwood Dr 6” (Design)• Pleasant View Dr 8” (Design)• Michigan Dr 8” and 6” (Design)• Corporation Yard Improvements – (Design/Const)• Corporation Yard/Facilities Master Plan • Auburn Blvd Improvements – City of CH Project (Design)

2018 Proposed Capital Projects 13

2018 Budget - $2,241,728• Circuit Dr 8” & Graham Cir 6” (Construction)• Wind Way 8” & Longwood Dr 6” (Construction)• Pleasant View Dr 8” (Construction)• Michigan Dr 8” & 6” (Construction)• Stock Ranch Residential Service Replacements (Design & Construction)• City of Citrus Heights Projects – Drainage, Road Improvements• Thunderhead Circle (Design)• Cologne Way (Design)• Quiet Oak Lane (Design)• Old Auburn Road (Design)

2017 Projects and 2018 Proposed Projects 14

Water Supply

• Water Surface Supply – Folsom Lake • CHWD current operations

o ~90% Surface Watero ~10% Groundwater

• Currently have 6 Wells• Goal to have 10 Wells for water supply reliability

15

Project 2030 Water Main Replacement Study

Key Issues:• Replace Aging Infrastructure

o 250+ miles of pipelines

o Many of the Water Mains Installed in the 1960s-80s

o Majority of the District Built by Private Developers

Key Goals:• Develop an Asset Inventory• Develop a Comprehensive Water Main Replacement Program • Develop Funding Options• Maintain a Proactive Approach• Customer Advisory Committee

16

Meter Replacement Program

• In the early 1990’s the State required all water connections to be metered• Citrus Heights Water District residential meter installation program (2000 –

2008)• Meter Replacement Program

o 20 years per AWWA and Manufacturers’ guidelineso 19,908 meters serve CHWD o Advanced Planning Studyo In Partnership with other Water Agencieso Customer Advisory Committee

17

Proposed Rate Adjustment for 2018

18

Infrastructure Investment & Reinvestment Plan

Rate Adjustment needed to achieve: oAccrual/Replenishment of ReservesoMaintains policy fund balance levelsoMaintains proactive CIP plan

19

Rate Analysis for FY 2018

Service Charge

Usage Charge

Typical Bi-Monthly residential 40 ccf

Monthly Increase per Household

Meets Current Policy Target 74.47 1.0167 115.14 $1.68

Regional Rate Comparison20

What does it mean for me?

The proposed rate increase, based on

average consumption for a family of four in a single family home with a one-inch water meter, is about $1.68

per month

Below the Regional Average

Proposed 2018 Rate Schedule

Summary of RatesBelow is a summary of the proposed changes to the bi-monthly customer service charges and usage charges for water consumed.TYPE OF CHARGE APPLIED BASIS OR

FREQUENCY2017

ADOPTED2018

PROPOSED$ BI-MONTHLY CHANGE

Charges for Metered Rate Customer Accounts

Service Charge, Domestic, Commercial & Irrigation Meters

¾-inch meter bi-monthly, per meter $ 47.52 $ 48.94 $ 1.421-inch meter bi-monthly, per meter $ 72.30 $ 74.46 $ 2.161½-inch meter bi-monthly, per meter $ 88.82 $ 91.48 $ 2.662-inch meter bi-monthly, per meter $ 171.41 $ 176.55 $ 5.143-inch meter bi-monthly, per meter $ 270.54 $ 278.65 $ 8.114-inch meter bi-monthly, per meter $ 534.89 $ 550.93 $ 16.04

Service Charge, Combination Meters

Low flow bypass meter bi-monthly, per meter $ 0.00 $ 0.00 $ 0.004-inch meter bi-monthly, per meter $ 171.41 $ 176.55 $ 5.146-inch meter bi-monthly, per meter $ 270.54 $ 278.65 $ 8.118-inch meter bi-monthly, per meter $ 534.89 $ 550.93 $ 16.0410-inch meter bi-monthly, per meter $ 1,303.08 $ 1,342.17 $ 39.09

Usage Charges for Water Consumed (1 unit = 100 cubic feet = 748 gallons)

Domestic, Commercial, Irrigation & Combination MeterAll meter sizes per unit $ 0.99 $ 1.02 $ 0.03

21

Additional Information about CHWD 22

Public Hearing—Wednesday, November 08, 6:30 PM. RuschPark Community Center, Sunrise Patio Room

Visit Web Site: www.chwd.org & click on “2018 Proposed Water Rate Adjustments” button

Visit our Facebook Page at www.facebook.com/citrusheightswaterdistrict

Join the Customer Advisory Committee

• The CAC will work with a team of District staff and technical consultants to plan for District-wide replacement of water mains and water meters.

• Application available atchwd.org/customer-advisory-committee/

Application available through Monday, 11/13/17.

23

Questions & Comments 24