Prop 218 proposed rate changes

El Dorado Irrigation District2890 Mosquito RoadPlacerville, CA 95667

Notice of Public Hearing

On Monday, March 26, 2012, the EID board of directors will hold a public hearing to consider the proposed rates described in this notice. The hearing will begin at 6:00 p.m. at the Cameron Park Community Center at 2502 Country Club Drive in Cameron Park.

ATTENTIONThis notice contains important information about proposed new rates for water, wastewater, and recycled water services.Please read

PRSRT STDU.S. POSTAGE

PAIDPermit #580Fair Oaks, CA

95628

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[8]

PROPOSITION 218 NOTICE February 3, 2012

To EID Customers or Owners of Affected Property:

We are writing to notify you that EID will hold a public hearing on March 26, 2012, at 6:00 p.m. at the Cameron Park Community Center at 2502 Country Club Drive in Cameron Park on proposed changes and increases to EID’s rates for wa-ter, wastewater, and recycled water service. The proposed rate adjustments would affect the costs for all present and future EID customers in all rate categories.

What is the basis for the proposed rates? As part of its last rate action in 2010, EID committed to pre-paring a Cost of Services (COS) study to review our rates. The purpose of the COS study was to ensure that EID’s rates com-plied with Proposition 218. Proposition 218 requires that the rate revenues for water, wastewater, and recycled water services correspond to the costs associated with each type of service, and also that the customers within each rate category pay their fair shares of the total costs.EID retained an experienced rate expert and formed a ten-member COS Advisory Panel to perform the study. The study team used agreed-upon policy principles, EID’s financial data, American Water Works Association-approved cost allocation methods, and a computer model to allocate EID’s operating and debt costs equitably among water, wastewater and recycled water services and develop appropriate rate structures for each customer class.EID’s Board heard 13 public updates on the progress and results of the COS study during 2010 and 2011. In October 2011, EID held evening meetings in Cameron Park and Pollock Pines to discuss the COS study’s findings and solicit public comment. All materials presented at the meetings, as well as the final COS study report, are posted on the District’s web site at www.eid.org and available for review at District headquarters.What are the reasons for the proposed rates? There are three reasons for the proposed changes and increases in rates: to change the proportion of rate revenues collected from fixed fees versus variable usage charges; to collect sufficient rate revenues to match EID’s operating costs and meet debt ser-vice obligations; and to ensure that each category of ratepayers is paying its fair share of the costs of providing service.

Fixed fees versus usage chargesEID’s current rate structure is designed to collect 70% of rate revenues from “commodity (usage) charges,” and 30% from fixed fees known as “base charges.” This formula can cause large changes in annual revenue because it depends so heavily on the amount of customer usage. For example, in years with cool and wet weather, rate revenues can decrease by millions of dollars as customers use less water. In contrast, most of EID’s operating costs are fixed. It costs about the same each year to operate and maintain reservoirs, pipelines, and treatment plants, regardless of how much water customers use.The COS study showed that a 50-50 split between base charges and usage charges will provide more stable annual revenues and reduce the risk that low customer usage will generate insufficient rate revenue to meet EID’s operating costs and debt service obligations. Therefore, the proposed rates propose returning to the 50-50 formula, which EID used prior to 2008.

Sufficient rate revenues to match operating costsAlthough EID is a non-profit government agency, it cannot operate at a loss. The COS study analyzed existing and future operating costs to determine rate revenue requirements.EID has taken numerous actions to control costs and increase non-rate revenues since the economic downturn began in 2008. The 2012 operating budget is $3.7 million (8%) less than the revised 2008 operating budget. Much of that savings has come from personnel. In fall of 2008, EID reorganized to eliminate 8 management positions and 11 vacant positions. At the end of that year, EID laid off 31 employees at all levels of the organi-zation. By the end of 2009, EID had eliminated 12 additional positions vacated by retirees. In 2010, EID approved a new union contract that included a wage freeze, reduced retiree pension and medical benefits, and other employee concessions. EID also outsourced its laboratory and laid off 14 more em-ployees in 2010. All EID employees took five unpaid furlough days in 2011. Today, EID’s workforce is down 30% from its peak, back to 1999 levels, while the number of customer ser-vices has increased by 20,000 (42%) since 2000.Financial actions have also reduced costs. In 2010, EID restructured some of its debt to reduce its debt service obligations by $12 million through 2012. In 2011, EID prepaid $2 million of its 2012 debt service obligation, and approved a $6 million prepayment to reduce its future liability for retiree medical care. EID has also added internal financial controls to ensure that it does not rely on one-time hookup fees to cover ongoing expenses.EID has taken action to increase non-rate revenues, too. In 2010, EID signed a contract that increased projected annual revenues from Project 184 power sales from about $3.5 million to between $6 million and $10 million, depending on the water year. In 2011, the new power sales contract actually reaped approximately $11 million in revenues, enabling the $2 million debt prepayment. Meanwhile, several years of fee increases, new services, and aggressive cost-containment have made EID’s recreation services self-supporting.

What are the proposed monthly changes?

The proposed 2012 bill changes for the average consumption for Single Family Residential customers with medium-volume use are as follows: water and wastewater—$2.38 per month increase; water/wastewater/recycled (dual-plumbed)—$1.55 per month decrease; wastewater—$3.70 per month decrease; water—$6.08 per month increase. Please refer to the tables contained in this notice.

$53.23

$75.10 $79.93 $80.81

$90.90 $96.38 $98.67 $99.35 $103.06

$117.53 $117.53 $125.28 $127.74 $128.15

$152.48

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

$160.00

$180.00

Regional Water Bill Comparison, January 2012For Bi-Monthly Service — Single Family Residence — 2,700 cf usage

$58.70

$76.30 $79.87 $83.70 $83.70 $83.70 $92.14 $96.24

$110.00 $116.50

$128.57

$164.00

$210.80 $212.55 $223.44

$0.00

$40.00

$80.00

$120.00

$160.00

$200.00

$240.00

Regional Sewer Bill Comparison, January 2012For Bi-Monthly Service — Single Family Residence — 1,800 cf of winter usage

Secondary Treatment Tertiary Treatment

*Agencies impacted by Sacramento Regional County Sanitation District’s (SRCD) 2011–2020 tertiary treatment improvement plan rate increase.Sacramento County’s sewer rate in 2020, reflecting tertiary treatment, is projected to be $175.80; a 110% increase over 2012’s $83.70 rate.

The following charts show how EID water rates compare with other utilities in the region for typical residential water use and resi-dential wastewater services. PLEASE NOTE: All amounts are for two-month bills. Monthly amounts are half of what is shown.

How do EID rates compare with other water and sewer utilities?

[2] [7]

Sufficient rate revenues to meet debt service obligations Besides covering operating costs, rates also help pay EID’s debt service obligations. Like any homeowner or business, EID borrows money to finance long-term investments in its facilities, and then repays the principal and interest on those loans from annual revenues. Rate revenues must pay for that debt in proportion to the benefits to existing customers. But EID is held to stricter financing standards than most home mortgages: we have a legal obligation to ensure that our net revenues exceed our debt service costs by at least 25%.

EID has issued new debt on several occasions to refurbish, replace, and improve existing facilities that provide safe and reliable drinking water, wastewater, and recycled water. Currently, the historical cost or book value of our assets in the ground is more than $800 million, and it would cost many times more to duplicate them today. Assuming they have a 50-year service life, at least $15–$20 million of capital expenditures annually are needed to repair and replace them, and their long service lives make them well-suited to debt financing. EID has incurred debt mostly for two purposes: to address years of deferred maintenance on those facilities, and to respond to ever-stricter state and federal regulations. In the last decade, EID has invested nearly $400 million in capital projects to maintain the reliability and safety of our services. This included upgrades to our water and wastewater treatment facilities to comply with new regulations and provide adequate capacity; replacement and repair of Project 184 canals, tunnels and flumes and projects to comply with regulatory mandates; improvements to the wastewater collection system such as pipeline replacement and sewer lift stations upgrades; and new water tanks to eliminate uncovered storage reservoirs and meet our customers’ operational, emergency and fire flow needs. Many of these investments addressed years of long-known, long-deferred maintenance that had caused catastrophic system failures—like the Pleasant Oak Main and Project 184—or costly fines and enforcement actions, like the Deer Creek wastewater treatment plant and the uncovered reservoirs. However, the need to comply with ever-stricter state and federal regulations has often forced EID to make facilities investments it would otherwise decline or defer. Approximately $141 million (35%) of these expenditures were to comply with regulatory mandates.Having tackled the deferred maintenance issues in the last ten years, EID expects its future capital expenditures to decline. Since 2009, EID has lowered the projected cost of its annual five-year Capital Improvement Plan updates from $300 million to $87 million. Nevertheless, the borrowing associated with capital projects has increased EID’s debt service obligations now and in future years. The COS study and other data show, however, that rate revenues have not kept pace with the ratepayers’ share of this obligation. Through 2008, one-time hook-up fee revenues from new customers allowed EID to bridge the gap. That strategy is no longer possible or advisable in today’s economic environment. Therefore, increases are proposed to bring rate revenues in line with customers’ fair share of yesterday’s and tomorrow’s capital investments.

Fair share of costs across rate classes

The COS study showed that under existing rates, some categories of ratepayers are paying more, and some less, than their fair share of costs. Proposition 218 does not allow one class of customers to cross-subsidize another, and in 2006 the California Supreme Court determined that consumption-based water rates like EID’s are subject to Proposition 218. The proposed rates will correct these inequities and comply with Proposition 218.

The two rate categories most affected are the Domestic Irrigation and Recreational Turf customers. In addition to the cost issues, the Domestic Irrigation rate class likely violates Proposition 218 because it is a “closed” class for which no customer can qualify today. Because the rate impacts on these two customer classes are substantial, EID proposes to provide a one-year phase-in period. Domestic Irrigation customers will have a year to qualify for the Small Farm or Agricultural rate before the Domestic Irrigation rate class is eliminated effective December 31, 2012. If they do not, they will be automatically placed in the Single Family Residential Rate on January 1, 2013. Similarly, the effective date of increases to the Recreational Turf rate class will be deferred to January 1, 2013. Those customers, including local schools, will continue at their existing rate until then to allow them adequate time to implement water efficiency programs and devices.

How to protest the proposed new ratesThe owner of record of any parcel that is subject to the pro-posed rates can protest against them by delivering a signed, written protest to EID. EID will receive written protests at or before the time set for the public hearing, which is Monday, March 26, 2012, at 6:00 p.m. at the Cameron Park Commu-nity Center at 2502 Country Club Drive, Cameron Park. If a majority of affected parcel owners submit written protests, the proposed rates will not go into effect.

The written protest must include your name and a description of the parcel(s) in which you have an ownership interest. A street address and/or assessor’s parcel number are sufficient de-scriptions. If the party signing the protest is not shown as the parcel owner on the last equalized assessment roll of El Dorado County, the protest must contain, or be accompanied by, writ-ten evidence that such party is the owner.

In rentals where the tenant pays the EID bill, the property owner is responsible for supplying the tenant with this notice. Tenants who pay the EID bill can submit a written protest.

Written protests should be mailed or hand-delivered to: Clerk to the Board El Dorado Irrigation District 2890 Mosquito Road Placerville, CA 95667

Agricultural Irrigation with Residence and Small Farms

Proposed 2012

Proposed 2013

Proposed 2014

Proposed 2015

5/8" and 3/4" meters $47.50 $52.73 $58.53 $61.461" $59.54 $66.09 $73.36 $77.031 1/2" $70.43 $78.18 $86.78 $91.121 1/2"T $75.20 $83.47 $92.65 $97.282" $84.06 $93.31 $103.57 $108.752"T $84.06 $93.31 $103.57 $108.753" $120.84 $134.13 $148.88 $156.323"T $127.65 $141.69 $157.28 $165.144" $161.70 $179.49 $199.23 $209.194"T $190.99 $212.00 $235.32 $247.096" $274.77 $304.99 $338.54 $355.476"T $366.04 $406.30 $450.99 $473.548"T $592.84

$938.92$658.05 $730.44 $766.96

10"T12"T $1,183.37 $1,313.54

$1,042.20 $1,156.84 $1,214.68$1,458.03 $1,530.93

Agricultural Irrigation without Residence and Raw Metered

Proposed 2012

Proposed 2013

Proposed 2014

Proposed 2015


$873.64 $969.74 $1,076.41 $1,130.23$612.31 $679.66 $713.64

10"T12"T $1,142.15 $1,267.79 $1,407.25 $1,477.61

WATER RATES Proposed Base Charges—

RAW WATER RATES—Current RAW WATER RATES—ProposedBASE CHARGES BASE CHARGES

Customer ClassCurrent

2012 Customer ClassProposed

2012Proposed

2013Proposed

2014Proposed

2015Metered Landscape Irrigation $84.87 Metered Landscape IrrigationRaw Water – 1/2" flow $78.24 Raw Water – 1/2" flow $62.21 $69.05 $76.65 $80.48Raw Water – 1" flow $173.76 Raw Water – 1" flow $124.42 $138.11 $153.30 $160.97Raw Water – 2" flow $347.53 Raw Water – 2" flow $248.84 $276.21 $306.59 $321.92Raw Water – 4" flow $695.04 Raw Water – 4" flow $497.68 $552.42 $613.19 $643.85

Raw Water – >4" flow (per inch of flow) $124.42 $138.11 $153.30 $160.97WASTEWATER RATES—Current WASTEWATER RATES—ProposedBASE CHARGES BASE CHARGES



2012Proposed

2013Proposed

2014Proposed

2015

Residential flat rate District average $135.98 Residential flat rate District average** $128.57 $135.00 $141.75 $148.84Single Family Residential $81.20 Single Family Residential $65.26 $68.52 $71.95 $75.55Multi–Family Residential (per unit) $81.20 Multi Family Residential (per unit) $32.06 $33.66 $35.34 $37.11Commercial Industrial $73.25 Commercial (all categories) $69.76 $73.25 $76.91 $80.76Commercial without water service $85.72 Commercial without water service (per unit) $108.67 $114.10 $119.81 $125.80Commercial (each additional unit) $97.82Schools (per student) $5.80 Schools, per student and staff (billed annually) $10.70 $11.24 $11.80 $12.39RECYCLED WATER RATES—Current RECYCLED WATER RATES—ProposedBASE CHARGES BASE CHARGES



2012Proposed

2013Proposed

2014Proposed

2015Residential Dual Plumbed N/A Single Family Dual Plumbed $20.00 $21.00 $22.05 $23.15Temporary Water Use $455.98 Temporary Water Use Refer to the District’s Schedule of Miscellaneous Fees, Deposits, and Other Charges

Commercial/Industrial/Landscape $151.03 Commercial Landscape/Rec Turf5/8" and 3/4" $27.02 $28.37 $29.79 $31.281" $39.24 $41.20 $43.26 $45.421 1/2" $67.15 $70.51 $74.04 $77.741 1/2"T $79.37 $83.34 $87.51 $91.892" $102.05 $107.15 $112.51 $118.142"T $102.05 $107.15 $112.51 $118.143" $196.27 $206.08 $216.38 $227.203"T $213.72 $224.41 $235.63 $247.414" $300.96 $316.01 $331.81 $348.404"T $375.99 $394.79 $414.53 $435.266" $590.60 $620.13 $651.14 $683.706"T $824.41 $865.63 $908.91 $954.368"T $1,405.44 $1,475.71 $1,549.50 $1,626.9810"T $2,225.86 $2,337.15 $2,454.01 $2,576.7112"T $2,918.20 $3,064.11 $3,217.32 $3,378.19

Same as Agricultural Irrigation without residence

** Residential without winter calculation, small farm, recreational turf, domestic irrigation, and sewer only

“The impact of the rate changes on your bill

will differ based on the amount of water you use

and whether you also have sewer and recycled

water service. This means that for some customers,

monthly costs will go up, and for others monthly

costs will go down.”

[3][6]

WATER RATES—Current Current 2012 WATER RATES—Proposed Proposed

2012Proposed

2013Proposed

2014Proposed

2015Commodity Charges Rate per cf Commodity Charges Rate per cf Rate per cf Rate per cf Rate per cfSingle Family Residential Single Family Residential

0 – 1,500 cf $0.01374 0 – 1,800 cf $0.01154 $0.01281 $0.01422 $0.014931,501 – 4,500 cf $0.01659 1,801 – 4,500 cf $0.01393 $0.01546 $0.01716 $0.01802Above 4,500 cf $0.01945 Above 4,500 cf $0.01633 $0.01813 $0.02012 $0.02113

Commercial and retail landscape $0.01500 Commercial and Retail Landscape $0.01374 $0.01525 $0.01693 $0.01778

Agricultural Metered Irrigation (with residence) Agricultural Metered Irrigation (with residence) 0 – 1,800 cf $0.01374 0 – 1,800 cf $0.01154 $0.01281 $0.01422 $0.014931,801 – 58,200 cf per acre $0.00144 Above 1,800 cf $0.00096 $0.00107 $0.00119 $0.00125Above 58,200 cf per acre $0.00164

Agricultural Metered Irrigation (without residence) Agricultural Metered Irrigation (without residence) $0.00096 $0.00107 $0.00119 $0.001250 – 58,200 cf per acre $0.00144Above 58,200 cf per acre $0.00164

Agricultural Metered Irrigation (with residence) Agricultural Metered Irrigation (with residence)IMS participant IMS participant

0 – 1,800 cf $0.01374

Refer to Agricultural Metered Irrigation (with residence)

1,801 – 30,000 cf per acre $0.0012430,001 – 58,200 cf per acre $0.00144Above 58,200 cf per acre $0.00164

Agricultural Metered Irrigation (without residence) Agricultural Metered Irrigation (without residence)IMS participant IMS participant

0 – 30,000 cf per acre $0.0012430,001 – 58,200 cf per acre $0.00144Above 58,200 cf per acre $0.00164

Small Farms Small Farms0 – 1,800 cf $0.01374 0 – 1,800 cf $0.01154 $0.01281 $0.01422 $0.014931,801 – 6,500 cf $0.00124 Above 1,800 cf $0.00096 $0.00107 $0.00119 $0.001256,501 – 50,000 cf $0.00144Above 50,000 cf $0.00164

Recreational Turf (5/8" – 1 1/2"T meter size) Recreational Turf (5/8" – 1 1/2"T meter size) 0 – 13,300 cf $0.00751 0 – 13,300 cf $0.00751 $0.01525 $0.01693 $0.0177813,301 – 75,000 cf $0.00774 13,301 – 75,000 cf $0.00774 $0.01525 $0.01693 $0.01778Above 75,000 cf $0.00964 Above 75,000 cf $0.00964 $0.01525 $0.01693 $0.01778

Recreational Turf (2", 2"T, 3", 3"T meter size) Recreational Turf (2", 2"T, 3", 3"T meter size) 0 – 37,500 cf $0.00751 0 – 37,500 cf $0.00751 $0.01525 $0.01693 $0.0177837,501 – 166,700 cf $0.00774 37,501 – 166,700 cf $0.00774 $0.01525 $0.01693 $0.01778Above 166,700 cf $0.00964 Above 166,700 cf $0.00964 $0.01525 $0.01693 $0.01778

Recreational Turf (4", 4"T, 6", 6"T, 8"T meter size) Recreational Turf (4", 4"T, 6", 6"T, 8"T meter size) 0 – 500,000 cf $0.00751 0 – 500,000 cf $0.00751 $0.01525 $0.01693 $0.01778500,001 – 1,666,700 cf $0.00774 500,001 – 1,666,700 cf $0.00774 $0.01525 $0.01693 $0.01778Above 1,666,700 cf $0.00964 Above 1,666,700 cf $0.00964 $0.01525 $0.01693 $0.01778

Multi–Family Residential $0.01500 Multi–Family Residential $0.01374 $0.01525 $0.01693 $0.01778

Domestic Irrigation Domestic Irrigation*0 – 6,500 cf $0.00171 0 – 6,500 cf $0.00171 N/A N/A N/A6,501 – 50,000 cf $0.00190 6,501 – 50,000 cf $0.00190 N/A N/A N/AAbove 50,000 cf $0.00251 Above 50,000 cf $0.00251 N/A N/A N/A

Temporary Water Use $0.02491 Temporary Water Use Refer to the District’s Schedule of Miscellaneous Fees, Deposits, and Other Charges

RAW WATER RATES—Current Current 2012 RAW WATER RATES—Proposed Proposed

2012Proposed

2013Proposed

2014Proposed

2015Commodity Charges Rate per cf Commodity Charges Rate per cf Rate per cf Rate per cf Rate per cfMetered Landscape Irrigation $0.00155 Metered Landscape Irrigation $0.00096 $0.00107 $0.00119 $0.00125Raw Water – seasonal continuous flow $0.00098 Raw Water – seasonal continuous flow $0.00096 $0.00107 $0.00119 $0.00125

WASTEWATER RATES—Current Current 2012 WASTEWATER RATES—Proposed Proposed

2012Proposed

2013Proposed

2014Proposed

2015Commodity Charges Rate per cf Commodity Charges Rate per cf Rate per cf Rate per cf Rate per cfSingle Family Residential $0.03043 Single Family Residential $0.03517 $0.03693 $0.03878 $0.04072


Commercial/Industrial Commercial/IndustrialLaundromat $0.04046 Commercial – Low $0.04044 $0.04246 $0.04458 $0.04681Repair Shop/Service Station $0.06088 Commercial – Medium/Low $0.05826 $0.06117 $0.06423 $0.06744Light Industrial $0.08147 Commercial – Medium $0.08688 $0.09122 $0.09578 $0.10057Market $0.08736 Commercial – Medium/High $0.13513 $0.14189 $0.14898 $0.15643Restaurant $0.11268 Commercial – High $0.29436 $0.30908 $0.32453 $0.34076Other $0.05217


Refer to Agricultural Metered Irrigation (without residence)

* Must qualify as Small Farm or Agricultural by 12/31/2012 or will be reclassified as Single Family Residential

Water Rates During DroughtIn conjunction with its drought planning, the District has established drought rates for the three stages of drought. These water rates apply only during a declared drought; no drought rates are currently in effect. The rates are designed to encourage water conservation during extended dry periods, thus protecting water supplies. They would also provide sufficient revenue to operate the District in times of reduced water sales, including additional public outreach and education and enforcement of the District’s water waste regulation. In times of Board-declared drought conditions, there is a drought surcharge on the water rates as shown above of 15% in Stage 1 drought, 30% in Stage 2, and 50% in Stage 3. Wastewater and recycled water rates remain unchanged during periods of drought.

RECYCLED WATER RATES—Current Current 2012 RECYCLED WATER RATES—Proposed Proposed

2012Proposed

2013Proposed

2014Proposed

2015Commodity Charges Rate per cf Commodity Charges Rate per cf Rate per cf Rate per cf Rate per cfDual Plumbed Residential $0.00873 Dual Plumbed Residential

0 – 3,000 cf (rate is 50% of potable water tier 1) $0.00577 $0.00606 $0.00636 $0.006683,001 – 4,500 cf (rate is 70% of potable water tier 2) $0.00975 $0.01024 $0.01075 $0.01129Above 4,500 cf (rate is 90% of potable water tier 3) $0.01469 $0.01542 $0.01619 $0.01700

Commercial/Industrial/Landscape/Rec Turf $0.00873 Commercial Landscape (all meter sizes) $0.00793 $0.00833 $0.00875 $0.00919

Recreational Turf $0.00938 $0.00985 $0.01034 $0.01086


BASE CHARGES BASE CHARGESSingle Family, Commercial, Agricultural Irrigation, Small Farms, and Recreational Turf

Current 2012 Single Family

Proposed 2012

Proposed 2013

Proposed 2014

Proposed 2015

5/8" and 3/4" meters $27.18 5/8" and 3/4" meters $47.50 $52.73 $58.53 $61.461" $31.56 1" $69.58 $77.23 $85.73 $90.021 1/2" $36.65 1 1/2" $120.05 $133.26 $147.92 $155.321 1/2"T $42.54 1 1/2"T $142.13 $157.76 $175.11 $183.872" $49.39 2" $183.13 $203.27 $225.63 $236.912"T $57.33 2"T $183.13 $203.27 $225.63 $236.913" $66.56 3" $369.72 $410.39 $455.53 $478.313"T $77.28 3"T $385.00 $427.35 $474.36 $498.084" $89.72 4" $542.71 $602.41 $668.68 $702.114"T $104.16 4"T $678.34 $752.96 $835.79 $877.586" $120.92 6" $1,075.65 $1,193.97 $1,325.31 $1,391.586"T $140.39 6"T $1,488.97 $1,652.76 $1,834.56 $1,926.298"T $162.98 8"T $2,550.70 $2,831.28 $3,142.72 $3,299.8610"T $189.20 10"T $4,039.68 $4,484.04 $4,977.28 $5,226.1412"T $219.66 12"T $5,315.03 $5,899.68 $6,548.64 $6,876.07

Domestic Irrigation $74.66 Domestic Irrigation* $74.66 N/A N/A N/A Single Family Dual Plumbed N/A Single Family Dual Plumbed $27.50 $31.73 $36.48 $38.31

Temporary Water Use $422.65 Temporary Water Use

Multi–Family ResidentialCurrent

2012 Multi–Family Residential and Commercial Proposed

2012Proposed

2013Proposed

2014Proposed

2015All Multi–Family Residential (per unit) $13.46 5/8" and 3/4" meters $49.96 $55.46 $61.56 $64.64

1" $73.76 $81.87 $90.88 $95.421 1/2" $128.17 $142.27 $157.92 $165.821 1/2"T $151.97 $168.69 $187.25 $196.612" $196.18 $217.76 $241.71 $253.802"T $196.18 $217.76 $241.71 $253.803" $379.80 $421.58 $467.95 $491.353"T $413.80 $459.32 $509.85 $535.344" $583.82 $648.04 $719.32 $755.294"T $730.04 $810.34 $899.48 $944.456" $1,148.28 $1,274.59 $1,414.79 $1,485.536"T $1,374.01 $1,525.15 $1,692.92 $1,777.578"T $2,736.26 $3,037.25 $3,371.35 $3,539.9210"T $4,333.55 $4,810.24 $5,339.37 $5,606.3412"T $5,684.38 $6,309.66 $7,003.72 $7,353.91

Recreational Turf Proposed

2012Proposed

2013Proposed

2014Proposed

20155/8" and 3/4" meters $27.18 $49.99 $55.49 $58.261" $31.56 $72.58 $80.56 $84.591 1/2" $36.65 $124.23 $137.90 $144.801 1/2"T $42.54 $146.83 $162.98 $171.132" $49.39 $188.79 $209.56 $220.042"T $57.33 $188.79 $209.56 $220.043" $66.56 $363.10 $403.04 $423.193"T $77.28 $395.38 $438.87 $460.814" $89.72 $556.78 $618.03 $648.934"T $104.16 $695.58 $772.09 $810.696" $120.92 $1,092.62 $1,212.81 $1,273.456"T $140.39 $1,525.15 $1,692.92 $1,777.578"T $162.98 $2,600.05 $2,886.06 $3,030.3610"T $189.20 $4,117.83 $4,570.79 $4,799.3312"T $219.66 $5,398.67 $5,992.52 $6,292.15

WATER RATES—Current WATER RATES—Proposed

Refer to the District’s Schedule of Miscellaneous Fees, Deposits, and Other Charges


Legend of Conversions

T = Turbine Meter cf = 1 cubic foot = 7.48 gallons 1 miners inch = 11.22 gallons per minute 1 miners inch per day = 16,156.80 gallons or 2,160 cubic feet

Notes

All services are billed bi-monthly except as noted

Services outside of the District are billed at 1.5 times the adopted rate

BASE CHARGES

COMMODITY CHARGES

[4] [5]

WATER RATES—Current Current 2012 WATER RATES—Proposed Proposed

2012Proposed

2013Proposed

2014Proposed

2015Commodity Charges Rate per cf Commodity Charges Rate per cf Rate per cf Rate per cf Rate per cfSingle Family Residential Single Family Residential

0 – 1,500 cf $0.01374 0 – 1,800 cf $0.01154 $0.01281 $0.01422 $0.014931,501 – 4,500 cf $0.01659 1,801 – 4,500 cf $0.01393 $0.01546 $0.01716 $0.01802Above 4,500 cf $0.01945 Above 4,500 cf $0.01633 $0.01813 $0.02012 $0.02113

Commercial and retail landscape $0.01500 Commercial and Retail Landscape $0.01374 $0.01525 $0.01693 $0.01778

Agricultural Metered Irrigation (with residence) Agricultural Metered Irrigation (with residence) 0 – 1,800 cf $0.01374 0 – 1,800 cf $0.01154 $0.01281 $0.01422 $0.014931,801 – 58,200 cf per acre $0.00144 Above 1,800 cf $0.00096 $0.00107 $0.00119 $0.00125Above 58,200 cf per acre $0.00164

Agricultural Metered Irrigation (without residence) Agricultural Metered Irrigation (without residence) $0.00096 $0.00107 $0.00119 $0.001250 – 58,200 cf per acre $0.00144Above 58,200 cf per acre $0.00164

Agricultural Metered Irrigation (with residence) Agricultural Metered Irrigation (with residence)IMS participant IMS participant

0 – 1,800 cf $0.01374


1,801 – 30,000 cf per acre $0.0012430,001 – 58,200 cf per acre $0.00144Above 58,200 cf per acre $0.00164

Agricultural Metered Irrigation (without residence) Agricultural Metered Irrigation (without residence)IMS participant IMS participant

0 – 30,000 cf per acre $0.0012430,001 – 58,200 cf per acre $0.00144Above 58,200 cf per acre $0.00164

Small Farms Small Farms0 – 1,800 cf $0.01374 0 – 1,800 cf $0.01154 $0.01281 $0.01422 $0.014931,801 – 6,500 cf $0.00124 Above 1,800 cf $0.00096 $0.00107 $0.00119 $0.001256,501 – 50,000 cf $0.00144Above 50,000 cf $0.00164

Recreational Turf (5/8" – 1 1/2"T meter size) Recreational Turf (5/8" – 1 1/2"T meter size) 0 – 13,300 cf $0.00751 0 – 13,300 cf $0.00751 $0.01525 $0.01693 $0.0177813,301 – 75,000 cf $0.00774 13,301 – 75,000 cf $0.00774 $0.01525 $0.01693 $0.01778Above 75,000 cf $0.00964 Above 75,000 cf $0.00964 $0.01525 $0.01693 $0.01778

Recreational Turf (2", 2"T, 3", 3"T meter size) Recreational Turf (2", 2"T, 3", 3"T meter size) 0 – 37,500 cf $0.00751 0 – 37,500 cf $0.00751 $0.01525 $0.01693 $0.0177837,501 – 166,700 cf $0.00774 37,501 – 166,700 cf $0.00774 $0.01525 $0.01693 $0.01778Above 166,700 cf $0.00964 Above 166,700 cf $0.00964 $0.01525 $0.01693 $0.01778

Recreational Turf (4", 4"T, 6", 6"T, 8"T meter size) Recreational Turf (4", 4"T, 6", 6"T, 8"T meter size) 0 – 500,000 cf $0.00751 0 – 500,000 cf $0.00751 $0.01525 $0.01693 $0.01778500,001 – 1,666,700 cf $0.00774 500,001 – 1,666,700 cf $0.00774 $0.01525 $0.01693 $0.01778Above 1,666,700 cf $0.00964 Above 1,666,700 cf $0.00964 $0.01525 $0.01693 $0.01778


Domestic Irrigation Domestic Irrigation*0 – 6,500 cf $0.00171 0 – 6,500 cf $0.00171 N/A N/A N/A6,501 – 50,000 cf $0.00190 6,501 – 50,000 cf $0.00190 N/A N/A N/AAbove 50,000 cf $0.00251 Above 50,000 cf $0.00251 N/A N/A N/A


RAW WATER RATES—Current Current 2012 RAW WATER RATES—Proposed Proposed

2012Proposed

2013Proposed

2014Proposed

2015Commodity Charges Rate per cf Commodity Charges Rate per cf Rate per cf Rate per cf Rate per cfMetered Landscape Irrigation $0.00155 Metered Landscape Irrigation $0.00096 $0.00107 $0.00119 $0.00125Raw Water – seasonal continuous flow $0.00098 Raw Water – seasonal continuous flow $0.00096 $0.00107 $0.00119 $0.00125

WASTEWATER RATES—Current Current 2012 WASTEWATER RATES—Proposed Proposed

2012Proposed

2013Proposed

2014Proposed

2015Commodity Charges Rate per cf Commodity Charges Rate per cf Rate per cf Rate per cf Rate per cfSingle Family Residential $0.03043 Single Family Residential $0.03517 $0.03693 $0.03878 $0.04072


Commercial/Industrial Commercial/IndustrialLaundromat $0.04046 Commercial – Low $0.04044 $0.04246 $0.04458 $0.04681Repair Shop/Service Station $0.06088 Commercial – Medium/Low $0.05826 $0.06117 $0.06423 $0.06744Light Industrial $0.08147 Commercial – Medium $0.08688 $0.09122 $0.09578 $0.10057Market $0.08736 Commercial – Medium/High $0.13513 $0.14189 $0.14898 $0.15643Restaurant $0.11268 Commercial – High $0.29436 $0.30908 $0.32453 $0.34076Other $0.05217


Refer to Agricultural Metered Irrigation (without residence)


Water Rates During DroughtIn conjunction with its drought planning, the District has established drought rates for the three stages of drought. These water rates apply only during a declared drought; no drought rates are currently in effect. The rates are designed to encourage water conservation during extended dry periods, thus protecting water supplies. They would also provide sufficient revenue to operate the District in times of reduced water sales, including additional public outreach and education and enforcement of the District’s water waste regulation. In times of Board-declared drought conditions, there is a drought surcharge on the water rates as shown above of 15% in Stage 1 drought, 30% in Stage 2, and 50% in Stage 3. Wastewater and recycled water rates remain unchanged during periods of drought.

RECYCLED WATER RATES—Current Current 2012 RECYCLED WATER RATES—Proposed Proposed

2012Proposed

2013Proposed

2014Proposed

2015Commodity Charges Rate per cf Commodity Charges Rate per cf Rate per cf Rate per cf Rate per cfDual Plumbed Residential $0.00873 Dual Plumbed Residential

0 – 3,000 cf (rate is 50% of potable water tier 1) $0.00577 $0.00606 $0.00636 $0.006683,001 – 4,500 cf (rate is 70% of potable water tier 2) $0.00975 $0.01024 $0.01075 $0.01129Above 4,500 cf (rate is 90% of potable water tier 3) $0.01469 $0.01542 $0.01619 $0.01700

Commercial/Industrial/Landscape/Rec Turf $0.00873 Commercial Landscape (all meter sizes) $0.00793 $0.00833 $0.00875 $0.00919

Recreational Turf $0.00938 $0.00985 $0.01034 $0.01086


BASE CHARGES BASE CHARGESSingle Family, Commercial, Agricultural Irrigation, Small Farms, and Recreational Turf

Current 2012 Single Family

Proposed 2012

Proposed 2013

Proposed 2014

Proposed 2015

5/8" and 3/4" meters $27.18 5/8" and 3/4" meters $47.50 $52.73 $58.53 $61.461" $31.56 1" $69.58 $77.23 $85.73 $90.021 1/2" $36.65 1 1/2" $120.05 $133.26 $147.92 $155.321 1/2"T $42.54 1 1/2"T $142.13 $157.76 $175.11 $183.872" $49.39 2" $183.13 $203.27 $225.63 $236.912"T $57.33 2"T $183.13 $203.27 $225.63 $236.913" $66.56 3" $369.72 $410.39 $455.53 $478.313"T $77.28 3"T $385.00 $427.35 $474.36 $498.084" $89.72 4" $542.71 $602.41 $668.68 $702.114"T $104.16 4"T $678.34 $752.96 $835.79 $877.586" $120.92 6" $1,075.65 $1,193.97 $1,325.31 $1,391.586"T $140.39 6"T $1,488.97 $1,652.76 $1,834.56 $1,926.298"T $162.98 8"T $2,550.70 $2,831.28 $3,142.72 $3,299.8610"T $189.20 10"T $4,039.68 $4,484.04 $4,977.28 $5,226.1412"T $219.66 12"T $5,315.03 $5,899.68 $6,548.64 $6,876.07

Domestic Irrigation $74.66 Domestic Irrigation* $74.66 N/A N/A N/A Single Family Dual Plumbed N/A Single Family Dual Plumbed $27.50 $31.73 $36.48 $38.31

Temporary Water Use $422.65 Temporary Water Use

Multi–Family ResidentialCurrent

2012 Multi–Family Residential and Commercial Proposed

2012Proposed

2013Proposed

2014Proposed

2015All Multi–Family Residential (per unit) $13.46 5/8" and 3/4" meters $49.96 $55.46 $61.56 $64.64

1" $73.76 $81.87 $90.88 $95.421 1/2" $128.17 $142.27 $157.92 $165.821 1/2"T $151.97 $168.69 $187.25 $196.612" $196.18 $217.76 $241.71 $253.802"T $196.18 $217.76 $241.71 $253.803" $379.80 $421.58 $467.95 $491.353"T $413.80 $459.32 $509.85 $535.344" $583.82 $648.04 $719.32 $755.294"T $730.04 $810.34 $899.48 $944.456" $1,148.28 $1,274.59 $1,414.79 $1,485.536"T $1,374.01 $1,525.15 $1,692.92 $1,777.578"T $2,736.26 $3,037.25 $3,371.35 $3,539.9210"T $4,333.55 $4,810.24 $5,339.37 $5,606.3412"T $5,684.38 $6,309.66 $7,003.72 $7,353.91

Recreational Turf Proposed

2012Proposed

2013Proposed

2014Proposed

20155/8" and 3/4" meters $27.18 $49.99 $55.49 $58.261" $31.56 $72.58 $80.56 $84.591 1/2" $36.65 $124.23 $137.90 $144.801 1/2"T $42.54 $146.83 $162.98 $171.132" $49.39 $188.79 $209.56 $220.042"T $57.33 $188.79 $209.56 $220.043" $66.56 $363.10 $403.04 $423.193"T $77.28 $395.38 $438.87 $460.814" $89.72 $556.78 $618.03 $648.934"T $104.16 $695.58 $772.09 $810.696" $120.92 $1,092.62 $1,212.81 $1,273.456"T $140.39 $1,525.15 $1,692.92 $1,777.578"T $162.98 $2,600.05 $2,886.06 $3,030.3610"T $189.20 $4,117.83 $4,570.79 $4,799.3312"T $219.66 $5,398.67 $5,992.52 $6,292.15

WATER RATES—Current WATER RATES—Proposed

Refer to the District’s Schedule of Miscellaneous Fees, Deposits, and Other Charges


Legend of Conversions

T = Turbine Meter cf = 1 cubic foot = 7.48 gallons 1 miners inch = 11.22 gallons per minute 1 miners inch per day = 16,156.80 gallons or 2,160 cubic feet

Notes

All services are billed bi-monthly except as noted

Services outside of the District are billed at 1.5 times the adopted rate

BASE CHARGES

COMMODITY CHARGES

[4] [5]

Sufficient rate revenues to meet debt service obligations Besides covering operating costs, rates also help pay EID’s debt service obligations. Like any homeowner or business, EID borrows money to finance long-term investments in its facilities, and then repays the principal and interest on those loans from annual revenues. Rate revenues must pay for that debt in proportion to the benefits to existing customers. But EID is held to stricter financing standards than most home mortgages: we have a legal obligation to ensure that our net revenues exceed our debt service costs by at least 25%.

EID has issued new debt on several occasions to refurbish, replace, and improve existing facilities that provide safe and reliable drinking water, wastewater, and recycled water. Currently, the historical cost or book value of our assets in the ground is more than $800 million, and it would cost many times more to duplicate them today. Assuming they have a 50-year service life, at least $15–$20 million of capital expenditures annually are needed to repair and replace them, and their long service lives make them well-suited to debt financing. EID has incurred debt mostly for two purposes: to address years of deferred maintenance on those facilities, and to respond to ever-stricter state and federal regulations. In the last decade, EID has invested nearly $400 million in capital projects to maintain the reliability and safety of our services. This included upgrades to our water and wastewater treatment facilities to comply with new regulations and provide adequate capacity; replacement and repair of Project 184 canals, tunnels and flumes and projects to comply with regulatory mandates; improvements to the wastewater collection system such as pipeline replacement and sewer lift stations upgrades; and new water tanks to eliminate uncovered storage reservoirs and meet our customers’ operational, emergency and fire flow needs. Many of these investments addressed years of long-known, long-deferred maintenance that had caused catastrophic system failures—like the Pleasant Oak Main and Project 184—or costly fines and enforcement actions, like the Deer Creek wastewater treatment plant and the uncovered reservoirs. However, the need to comply with ever-stricter state and federal regulations has often forced EID to make facilities investments it would otherwise decline or defer. Approximately $141 million (35%) of these expenditures were to comply with regulatory mandates.Having tackled the deferred maintenance issues in the last ten years, EID expects its future capital expenditures to decline. Since 2009, EID has lowered the projected cost of its annual five-year Capital Improvement Plan updates from $300 million to $87 million. Nevertheless, the borrowing associated with capital projects has increased EID’s debt service obligations now and in future years. The COS study and other data show, however, that rate revenues have not kept pace with the ratepayers’ share of this obligation. Through 2008, one-time hook-up fee revenues from new customers allowed EID to bridge the gap. That strategy is no longer possible or advisable in today’s economic environment. Therefore, increases are proposed to bring rate revenues in line with customers’ fair share of yesterday’s and tomorrow’s capital investments.

Fair share of costs across rate classes

The COS study showed that under existing rates, some categories of ratepayers are paying more, and some less, than their fair share of costs. Proposition 218 does not allow one class of customers to cross-subsidize another, and in 2006 the California Supreme Court determined that consumption-based water rates like EID’s are subject to Proposition 218. The proposed rates will correct these inequities and comply with Proposition 218.

The two rate categories most affected are the Domestic Irrigation and Recreational Turf customers. In addition to the cost issues, the Domestic Irrigation rate class likely violates Proposition 218 because it is a “closed” class for which no customer can qualify today. Because the rate impacts on these two customer classes are substantial, EID proposes to provide a one-year phase-in period. Domestic Irrigation customers will have a year to qualify for the Small Farm or Agricultural rate before the Domestic Irrigation rate class is eliminated effective December 31, 2012. If they do not, they will be automatically placed in the Single Family Residential Rate on January 1, 2013. Similarly, the effective date of increases to the Recreational Turf rate class will be deferred to January 1, 2013. Those customers, including local schools, will continue at their existing rate until then to allow them adequate time to implement water efficiency programs and devices.

How to protest the proposed new ratesThe owner of record of any parcel that is subject to the pro-posed rates can protest against them by delivering a signed, written protest to EID. EID will receive written protests at or before the time set for the public hearing, which is Monday, March 26, 2012, at 6:00 p.m. at the Cameron Park Commu-nity Center at 2502 Country Club Drive, Cameron Park. If a majority of affected parcel owners submit written protests, the proposed rates will not go into effect.

The written protest must include your name and a description of the parcel(s) in which you have an ownership interest. A street address and/or assessor’s parcel number are sufficient de-scriptions. If the party signing the protest is not shown as the parcel owner on the last equalized assessment roll of El Dorado County, the protest must contain, or be accompanied by, writ-ten evidence that such party is the owner.

In rentals where the tenant pays the EID bill, the property owner is responsible for supplying the tenant with this notice. Tenants who pay the EID bill can submit a written protest.

Written protests should be mailed or hand-delivered to: Clerk to the Board El Dorado Irrigation District 2890 Mosquito Road Placerville, CA 95667

Agricultural Irrigation with Residence and Small Farms

Proposed 2012

Proposed 2013

Proposed 2014

Proposed 2015


$938.92$658.05 $730.44 $766.96

10"T12"T $1,183.37 $1,313.54

$1,042.20 $1,156.84 $1,214.68$1,458.03 $1,530.93

Agricultural Irrigation without Residence and Raw Metered

Proposed 2012

Proposed 2013

Proposed 2014

Proposed 2015


$873.64 $969.74 $1,076.41 $1,130.23$612.31 $679.66 $713.64

10"T12"T $1,142.15 $1,267.79 $1,407.25 $1,477.61

WATER RATES Proposed Base Charges—

RAW WATER RATES—Current RAW WATER RATES—ProposedBASE CHARGES BASE CHARGES



2012Proposed

2013Proposed

2014Proposed

2015Metered Landscape Irrigation $84.87 Metered Landscape IrrigationRaw Water – 1/2" flow $78.24 Raw Water – 1/2" flow $62.21 $69.05 $76.65 $80.48Raw Water – 1" flow $173.76 Raw Water – 1" flow $124.42 $138.11 $153.30 $160.97Raw Water – 2" flow $347.53 Raw Water – 2" flow $248.84 $276.21 $306.59 $321.92Raw Water – 4" flow $695.04 Raw Water – 4" flow $497.68 $552.42 $613.19 $643.85

Raw Water – >4" flow (per inch of flow) $124.42 $138.11 $153.30 $160.97WASTEWATER RATES—Current WASTEWATER RATES—ProposedBASE CHARGES BASE CHARGES



2012Proposed

2013Proposed

2014Proposed

2015

Residential flat rate District average $135.98 Residential flat rate District average** $128.57 $135.00 $141.75 $148.84Single Family Residential $81.20 Single Family Residential $65.26 $68.52 $71.95 $75.55Multi–Family Residential (per unit) $81.20 Multi Family Residential (per unit) $32.06 $33.66 $35.34 $37.11Commercial Industrial $73.25 Commercial (all categories) $69.76 $73.25 $76.91 $80.76Commercial without water service $85.72 Commercial without water service (per unit) $108.67 $114.10 $119.81 $125.80Commercial (each additional unit) $97.82Schools (per student) $5.80 Schools, per student and staff (billed annually) $10.70 $11.24 $11.80 $12.39RECYCLED WATER RATES—Current RECYCLED WATER RATES—ProposedBASE CHARGES BASE CHARGES



2012Proposed

2013Proposed

2014Proposed

2015Residential Dual Plumbed N/A Single Family Dual Plumbed $20.00 $21.00 $22.05 $23.15Temporary Water Use $455.98 Temporary Water Use Refer to the District’s Schedule of Miscellaneous Fees, Deposits, and Other Charges

Commercial/Industrial/Landscape $151.03 Commercial Landscape/Rec Turf5/8" and 3/4" $27.02 $28.37 $29.79 $31.281" $39.24 $41.20 $43.26 $45.421 1/2" $67.15 $70.51 $74.04 $77.741 1/2"T $79.37 $83.34 $87.51 $91.892" $102.05 $107.15 $112.51 $118.142"T $102.05 $107.15 $112.51 $118.143" $196.27 $206.08 $216.38 $227.203"T $213.72 $224.41 $235.63 $247.414" $300.96 $316.01 $331.81 $348.404"T $375.99 $394.79 $414.53 $435.266" $590.60 $620.13 $651.14 $683.706"T $824.41 $865.63 $908.91 $954.368"T $1,405.44 $1,475.71 $1,549.50 $1,626.9810"T $2,225.86 $2,337.15 $2,454.01 $2,576.7112"T $2,918.20 $3,064.11 $3,217.32 $3,378.19

Same as Agricultural Irrigation without residence

** Residential without winter calculation, small farm, recreational turf, domestic irrigation, and sewer only

“The impact of the rate changes on your bill

will differ based on the amount of water you use

and whether you also have sewer and recycled

water service. This means that for some customers,

monthly costs will go up, and for others monthly

costs will go down.”

[3][6]

PROPOSITION 218 NOTICE February 3, 2012

To EID Customers or Owners of Affected Property:

We are writing to notify you that EID will hold a public hearing on March 26, 2012, at 6:00 p.m. at the Cameron Park Community Center at 2502 Country Club Drive in Cameron Park on proposed changes and increases to EID’s rates for wa-ter, wastewater, and recycled water service. The proposed rate adjustments would affect the costs for all present and future EID customers in all rate categories.

What is the basis for the proposed rates? As part of its last rate action in 2010, EID committed to pre-paring a Cost of Services (COS) study to review our rates. The purpose of the COS study was to ensure that EID’s rates com-plied with Proposition 218. Proposition 218 requires that the rate revenues for water, wastewater, and recycled water services correspond to the costs associated with each type of service, and also that the customers within each rate category pay their fair shares of the total costs.EID retained an experienced rate expert and formed a ten-member COS Advisory Panel to perform the study. The study team used agreed-upon policy principles, EID’s financial data, American Water Works Association-approved cost allocation methods, and a computer model to allocate EID’s operating and debt costs equitably among water, wastewater and recycled water services and develop appropriate rate structures for each customer class.EID’s Board heard 13 public updates on the progress and results of the COS study during 2010 and 2011. In October 2011, EID held evening meetings in Cameron Park and Pollock Pines to discuss the COS study’s findings and solicit public comment. All materials presented at the meetings, as well as the final COS study report, are posted on the District’s web site at www.eid.org and available for review at District headquarters.What are the reasons for the proposed rates? There are three reasons for the proposed changes and increases in rates: to change the proportion of rate revenues collected from fixed fees versus variable usage charges; to collect sufficient rate revenues to match EID’s operating costs and meet debt ser-vice obligations; and to ensure that each category of ratepayers is paying its fair share of the costs of providing service.

Fixed fees versus usage chargesEID’s current rate structure is designed to collect 70% of rate revenues from “commodity (usage) charges,” and 30% from fixed fees known as “base charges.” This formula can cause large changes in annual revenue because it depends so heavily on the amount of customer usage. For example, in years with cool and wet weather, rate revenues can decrease by millions of dollars as customers use less water. In contrast, most of EID’s operating costs are fixed. It costs about the same each year to operate and maintain reservoirs, pipelines, and treatment plants, regardless of how much water customers use.The COS study showed that a 50-50 split between base charges and usage charges will provide more stable annual revenues and reduce the risk that low customer usage will generate insufficient rate revenue to meet EID’s operating costs and debt service obligations. Therefore, the proposed rates propose returning to the 50-50 formula, which EID used prior to 2008.

Sufficient rate revenues to match operating costsAlthough EID is a non-profit government agency, it cannot operate at a loss. The COS study analyzed existing and future operating costs to determine rate revenue requirements.EID has taken numerous actions to control costs and increase non-rate revenues since the economic downturn began in 2008. The 2012 operating budget is $3.7 million (8%) less than the revised 2008 operating budget. Much of that savings has come from personnel. In fall of 2008, EID reorganized to eliminate 8 management positions and 11 vacant positions. At the end of that year, EID laid off 31 employees at all levels of the organi-zation. By the end of 2009, EID had eliminated 12 additional positions vacated by retirees. In 2010, EID approved a new union contract that included a wage freeze, reduced retiree pension and medical benefits, and other employee concessions. EID also outsourced its laboratory and laid off 14 more em-ployees in 2010. All EID employees took five unpaid furlough days in 2011. Today, EID’s workforce is down 30% from its peak, back to 1999 levels, while the number of customer ser-vices has increased by 20,000 (42%) since 2000.Financial actions have also reduced costs. In 2010, EID restructured some of its debt to reduce its debt service obligations by $12 million through 2012. In 2011, EID prepaid $2 million of its 2012 debt service obligation, and approved a $6 million prepayment to reduce its future liability for retiree medical care. EID has also added internal financial controls to ensure that it does not rely on one-time hookup fees to cover ongoing expenses.EID has taken action to increase non-rate revenues, too. In 2010, EID signed a contract that increased projected annual revenues from Project 184 power sales from about $3.5 million to between $6 million and $10 million, depending on the water year. In 2011, the new power sales contract actually reaped approximately $11 million in revenues, enabling the $2 million debt prepayment. Meanwhile, several years of fee increases, new services, and aggressive cost-containment have made EID’s recreation services self-supporting.

What are the proposed monthly changes?

The proposed 2012 bill changes for the average consumption for Single Family Residential customers with medium-volume use are as follows: water and wastewater—$2.38 per month increase; water/wastewater/recycled (dual-plumbed)—$1.55 per month decrease; wastewater—$3.70 per month decrease; water—$6.08 per month increase. Please refer to the tables contained in this notice.

$53.23

$75.10 $79.93 $80.81

$90.90 $96.38 $98.67 $99.35 $103.06

$117.53 $117.53 $125.28 $127.74 $128.15

$152.48

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

$160.00

$180.00

Regional Water Bill Comparison, January 2012For Bi-Monthly Service — Single Family Residence — 2,700 cf usage

$58.70

$76.30 $79.87 $83.70 $83.70 $83.70 $92.14 $96.24

$110.00 $116.50

$128.57

$164.00

$210.80 $212.55 $223.44

$0.00

$40.00

$80.00

$120.00

$160.00

$200.00

$240.00

Regional Sewer Bill Comparison, January 2012For Bi-Monthly Service — Single Family Residence — 1,800 cf of winter usage

Secondary Treatment Tertiary Treatment

*Agencies impacted by Sacramento Regional County Sanitation District’s (SRCD) 2011–2020 tertiary treatment improvement plan rate increase.Sacramento County’s sewer rate in 2020, reflecting tertiary treatment, is projected to be $175.80; a 110% increase over 2012’s $83.70 rate.

The following charts show how EID water rates compare with other utilities in the region for typical residential water use and resi-dential wastewater services. PLEASE NOTE: All amounts are for two-month bills. Monthly amounts are half of what is shown.

How do EID rates compare with other water and sewer utilities?

[2] [7]

El Dorado Irrigation District2890 Mosquito RoadPlacerville, CA 95667

Notice of Public Hearing

On Monday, March 26, 2012, the EID board of directors will hold a public hearing to consider the proposed rates described in this notice. The hearing will begin at 6:00 p.m. at the Cameron Park Community Center at 2502 Country Club Drive in Cameron Park.

ATTENTIONThis notice contains important information about proposed new rates for water, wastewater, and recycled water services.Please read

PRSRT STDU.S. POSTAGE

PAIDPermit #580Fair Oaks, CA

95628

Sam

ple B

i-Mon

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Bill

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he ra

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s on

your

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ased

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80

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05.5

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93.

40

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($

6.07

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3

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Estim

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Dif

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1,

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cf

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$209

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h 7,

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cf

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($0.

95)

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48)

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Estim

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Dif

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Bi-m

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ly

Cos

t M

onth

ly

Cos

t

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1,

053

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$151

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$155

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.37

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cf

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($ 3

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5)

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17

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09

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aste

wat

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alcu

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ased

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nd

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se o

f 3,

500

cf

[8]

Documents

Prop 218 proposed rate changes