Item 08 - Water and Sewer Rate Adjustments

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Recycled Water Rates The rates for recycled water customers are calculated using the direct costs allocated to the recycled water system in the Cost of Service Analysis, $470,172. Recycled water customers also pay fixed and variable charges; however, the variable charge only contains one tier, because there is only one source of water available. In order to maintain equity with other customers, the same fixed rates are applied to recycled water customers. The remaining costs which are not recovered from fixed rates are then applied to the variable rate. Similar to the potable water rates, some fixed costs may be recovered through the variable rate; however, those costs vary with the total water demand on the system. Table 70 shows the total revenue generated from the cost of service rates for recycled customers. Monthly billed amounts are multiplied by the number of meters in each category. Table 70. Recycled Water Fixed Revenue Collection 5/8" X 3/4' 0 $24.50 $0 3/4" 0 $35.87 $0 ill 0 $58.60 $0 1 1 /2" 3 $115.42 $4,155 2" 9 $183.61 $19,830 3" 3 $399.55 $14,384 4" 3 $717.76 $25,839 6" 3 $1,479.21 $53,252 8" 0 $2,729.35 $0 101, 0 $4,775.02 $0 Total Fixed Revenue $117,460 The remainder of costs are then allocated to the variable rate base. Table 71 shows the calculation used to determine the unit cost for a unit of recycled water. The total variable cost basis is divided by the projected recycled water use. Table 72 shows the proposed variable recycled water rates. Table 71. Recycled Water Variable Rate Derivation Total $470,172 Fixed Recovery ($117,460) Variable Base $352,712 Recycled Use 106,800 Variable Rate $3.30 City of Santa Ana - 2026 Water and Sewer Rate Study 46