Laserfiche WebLink
2019 Water, Recycled Water, and Sewer Rate Study <br />4. Rate Structure <br />Sewer Rates <br />As summarized in Section 3.1.3, the COSA allocated costs to the Cost Groups of "Account" and "Utility," <br />both of which are fixed costs and will be collected through a fixed Utility Charge. The sum of these two <br />groups accounts for 100% of the revenue requirement, yielding a significant increase from the current <br />percentage of fixed revenue (approximately 17%). <br />4.4.2 Sewer Account Costs <br />Account Costs include costs such as billing, customer service, and account management. These costs <br />are proportionate to the number of accounts in the system regardless of the size of the account. As such, <br />the $407,194 allocated to Single Family accounts are divided by the utility's 35,915 accounts (and divided <br />by 12 months) to give a per account charge of $0.94 per month. Similar to the Water Utility costs, Sewer <br />Account Costs were allocated to customer classes on an Account basis, as such the Account Cost is the <br />same for all customer classes. <br />4.4.3 Sewer Utility Costs <br />As discussed in Section 3, the Utility Costs are made up of expenses such as capital spending, salaries, <br />maintenance, and other fixed operating costs. These costs are driven by the size (i.e. capacity) of the <br />utility. As such, this Study recommends that these costs be allocated to customers based on the <br />demands that they place on the system, which is measured based on the size of the customer's meter. <br />As summarized in Section, the revenue requirement designated as Utility Costs, after non -rate revenue <br />was discounted, totaled $2,340,428 for Single Family Residential Customers. Given the meter <br />equivalency schedule described in Section 3.1.1, there are 41,886 equivalent meters in the system for <br />Single Family Residential Customers. Dividing the revenue requirement by the equivalent meters and <br />again by 12 yields a monthly base charge of $4.66 per equivalent meter for Single Family customers. <br />The difference in the fixed charges for each customer class is due to the return -to -sewer factors assigned <br />to each customer class (see Table 3-14). <br />Table 4-5 provides the scaled Utility Cost by meter size which, combined with the account charge makes <br />up the fixed Sewer Utility Charge. The full schedules of Sewer Utility Charges for the planning horizon are <br />presented in Schedule 18 through Schedule 22. <br />City of Santa Ana Stantec 131 <br />