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2019 Water, Recycled Water, and Sewer Rate Study <br />4. Rate Structure <br />4. RATE STRUCTURE <br />Upon completion of the COSA, rate structure analyses were performed to evaluate rate structure <br />modifications and calculate specific water, recycled water, and sewer rate schedules for implementation <br />in FY 2019/20. <br />The rate structures proposed by this Report are designed to: <br />• Fairly and equitably recover costs through rates, <br />• Conform to accepted industry practice and legal requirements, and <br />• Provide fiscal stability and recovery of system fixed costs. <br />Revenue requirements allocated to the Cost Groups discussed in Section 3.1.4 were allocated to the <br />customer classes and rate components based on the units of service. <br />The following sub -sections describe the basis for the recommended rate structure and a specific 5-year <br />rate schedule for implementation on January 1, 2020 (for FY 2019/20) and adjusted every July 1st <br />thereafter. The recommended rate schedules are designed to ensure each customer pays its <br />proportionate share of the cost to provide service. <br />4.1 CURRENT RATES <br />The current water, recycled water, and sewer rates follow a common industry practice with a two-part <br />structure that are comprised of a fixed service charge and a consumption -based rate. <br />Water Rates <br />The fixed portion of the current water rates (currently referred to by the City as the "Basic Water Service <br />Charge") is based on the meter size for all customer classes, except for Multi -Family customers which are <br />charged on a per dwelling unit basis (see Table 4-1). The fixed charges currently recover approximately <br />16% of rate revenues. <br />City of Santa Ana Stantec 126 <br />