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Authorize Staff to Prepare Documents for Proposed Water and Sewer Rate Adjustments <br />October 1, 2019 <br />Page 4 <br />The proposed rate revenue adjustments outlined below support the recommended CIP plans and <br />allow both enterprises to meet their respective financial goals: <br />Typical Bill Impact <br />The financial impact of the proposed revenue adjustments and rate structure changes on the <br />typical customer was carefully evaluated. The overall increase in the combined typical bill of a <br />single-family residential customer will be $4.92 per month (based on the average 1,257 cubic feet <br />of water used per month by typical single-family residences). When compared to neighboring <br />cities, the typical Santa Ana customer will continue to pay a similar amount, on average, for water <br />and sewer services as compared to its neighboring cities such as Garden Grove, Brea, Fullerton <br />and Orange. <br />Low-income Assistance Program <br />While the proposed rate structure will provide rate relief to numerous multifamily accounts, the <br />rate -setting requirements of applicable law (namely, California's Proposition 218) disallows the <br />use of rate revenue to fund a low-income water and/or sewer rate assistance program. Any such <br />program needs to be funded through an outside source of revenue. Staff will explore viable <br />options for funding a low-income subsidy program and report findings to Council at a future date. <br />STRATEGIC PLAN ALIGNMENT <br />Approval of this item supports the City's efforts to meet Goal #6 — Community Facilities & <br />Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City <br />assets), Strategy H (complete water/waste water rate study to ensure adequate resources to <br />capture critical long-term capital needs). <br />ENVIRONMENTAL IMPACT <br />There is no environmental impact associated with this action. <br />65A-4 <br />