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The City of Santa Ana is proposing changes to its water and sewer rate <br />structures and charges. The City of Santa Ana is required to provide water <br />and sewer service to its customers at rates that do not exceed the cost <br />of service, while maintaining essential water and sewer infrastructure. <br />To demonstrate that the proposed rates comply with this rule, the City <br />hired an independent, third -party consultant to determine that cost of <br />service. A cost of service study is available for public review at the City <br />and on the City's website (see next page). Customers who would be <br />impacted by these changes are receiving this notice. r, <br />EXPIRING RATE SCHEDULE <br />$ $ $ The City's existing 5-year rate schedule was established in <br />O 2014. A new schedule of rates is needed to ensure the City is <br />recovering the costs of providing service, using industry best <br />practices and meeting legal requirements. <br />AGING SYSTEM <br />The City of Santa Ana maintains a complex system of <br />Opipelines and facilities to provide water and sewer service <br />to customers. As the system ages, additional resources are <br />needed to keep these assets in good working condition <br />and benefit rate payers by making timely re -investments <br />in infrastructure. <br />FINANCIAL REQUIREMENTS <br />The City of Santa Ana's Public Works Agency must ensure <br />adequate revenue to meet its financial requirements, <br />including bond repayments and maintaining cash reserves <br />for a strong credit rating. <br />