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Item 08 - Water and Sewer Rate Adjustments
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01/20/2026
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Item 08 - Water and Sewer Rate Adjustments
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Last modified
1/14/2026 2:34:09 PM
Creation date
1/14/2026 9:17:46 AM
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City Clerk
Doc Type
Agenda Packet
Agency
Public Works
Item #
8
Date
1/20/2026
Destruction Year
P
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TABLE OF CONTENTS <br />TABLEOF CONTENTS.............................................................................................................................. i <br />LISTOF TABLES.......................................................................................................................................iii <br />LISTOF FIGURES......................................................................................................................................v <br />EXECUTIVESUMMARY.............................................................................................................................1 <br />1.1 Background...............................................................................................................................................1 <br />1.2 Purpose of Study.....................................................................................................................................4 <br />1.3 Rate Recommendations and Proposed Rates....................................................................................4 <br />METHODOLOGY......................................................................................................................................10 <br />2.1 General Methodology........................................................................................................................... <br />10 <br />2.2 Key Assumptions.................................................................................................................................. <br />11 <br />EscalationFactors........................................................................................................................................ <br />11 <br />CustomerGrowth.......................................................................................................................................... <br />12 <br />ReservePolicy.............................................................................................................................................. <br />14 <br />EquivalentMeter Size.................................................................................................................................. <br />15 <br />WATERUTILITY.......................................................................................................................................17 <br />3.1 Financial Plan........................................................................................................................................ <br />17 <br />DemandProjections..................................................................................................................................... <br />17 <br />Revenues....................................................................................................................................................... <br />18 <br />Operating and Maintenance (O&M) Expense.......................................................................................... <br />19 <br />OtherObligations.......................................................................................................................................... <br />20 <br />CapitalImprovement Projects..................................................................................................................... <br />20 <br />DebtService and Coverage Ratios............................................................................................................ <br />21 <br />Reserves........................................................................................................................................................ <br />22 <br />FinancialPlan................................................................................................................................................ <br />23 <br />RevenueRequirements............................................................................................................................... <br />26 <br />3.2 Cost of Service Analysis...................................................................................................................... <br />27 <br />Functionalizationof Costs........................................................................................................................... <br />27 <br />Allocationto Customers............................................................................................................................... <br />37 <br />Allocationto Units......................................................................................................................................... <br />37 <br />3.3 Water Rate Design............................................................................................................................... <br />39 <br />MonthlyFixed Charge.................................................................................................................................. <br />39 <br />VariableWater Rates................................................................................................................................... <br />42 <br />i <br />City of Santa Ana - 2026 Water and Sewer Rate Study <br />
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