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Sewer Rate Study Recommendations <br />September 17, 2019 <br />1 <br />2019 Sewer Rate Study Drivers <br />Schedule: <br />• The last rate study was completed in 2014 <br />• The last adopted rate adjustments were for FY 2019 (last year) <br />Legal: <br />• Recent court decisions have "raised the bar" for transparency and cost -to - <br />service requirements for water rates (Prop 218). <br />Rate Structure: <br />• Revenue is being un-necessarily affected by drought events <br />System Needs: Sewer system has significant capital investment needs. <br />• Currently averaging less than 1 mile of sewer line replacement per year <br />• Proposed plan jumps sewer line replacement to an average of 4 miles a year <br />2 <br />2 <br />Stantec Consulting & Hildebrand Consult iW5B_17 1 <br />