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City of Santa Ana, CA I WATER RATE STUDY
<br />generated is expected to remain constant at $49,784,700 throughout the study period. Reclaimed water
<br />is primarily used to meet landscape irrigation needs.
<br />Table - 4: Revenues under Existing Rates in Thousands of Dollars
<br />Single Family Residential
<br />19,011.3
<br />18,494.2
<br />18,494.2
<br />18,494.2
<br />18,494.2
<br />18,494.2
<br />Multi - Family Residential
<br />13,991.2
<br />13,605.8
<br />13,605.8
<br />13,605.8
<br />13,605.8
<br />13,605.8
<br />Commercial
<br />9,456.1
<br />9,193.8
<br />9,193.8
<br />9,193.8
<br />9,193.8
<br />9,193.8
<br />Industrial
<br />2,228.4
<br />2,163.1
<br />2,163.1
<br />2,163.1
<br />2,163.1
<br />2,163.1
<br />Institutional
<br />4,169.6
<br />4,050.5
<br />4,050.5
<br />4,050.5
<br />4,050.5
<br />4,050.5
<br />Irrigation
<br />1,844.4
<br />1,791.7
<br />1,791.7
<br />1,791.7
<br />1,791.7
<br />1,791.7
<br />Outside City
<br />37.2
<br />36.0
<br />36.0
<br />36.0
<br />36.0
<br />36.0
<br />Recycled Water
<br />206.9
<br />201.0
<br />201.0
<br />201.0
<br />201.0
<br />201.0
<br />Fire Service
<br />248.6
<br />248.6
<br />248.6
<br />248.6
<br />248.6
<br />248.6
<br />Total Revenue
<br />$51,193.7
<br />' $49,784.7
<br />$49,784.7
<br />$49,784.7
<br />$49,784.7
<br />$49,784.7
<br />Operation and Maintenance Projections
<br />In order to adequately adjust rates, it is necessary to project
<br />operation and maintenance (0 &M) expenses. Summarized in
<br />Table 5 are Waters projected O &M expenditures. These
<br />expenditures include costs related to personnel (including
<br />additional staff), contract services, operating supplies, utilities
<br />and general administrative. The forecasted expenditures are
<br />based Black & Veatch and City staffs expertise and knowledge.
<br />The table to the right summarizes key assumptions for
<br />inflation rates used in the C &M expense projections. The levels of adjustment illustrated on the right
<br />are consistent with recent increases seen throughout the area.
<br />For the purposes of this study, no escalation factor is applied to imported water sources. The volatility of
<br />water supply and wholesale costs are not within the City's control; as such, the City should be handling
<br />purchased water and pumped water increases via a pass- through mechanism. The OCWD is responsible
<br />for managing the groundwater basin from which the City pumps. In FY 13/14, the City's basin pumping
<br />percentage (BPP) was 70 percent and OCWD's budgeted BPP for FY 14/15 is 72 percent. It is OCWD's
<br />intent to increase the BPP to 75 percent and increase its water supply portfolio through increasing
<br />capacity at the Groundwater Replenishment System (GWRS) and purchasing water from the Huntington
<br />Beach Desalination Project. For the purposes of this Study, due to severe drought conditions, Black &
<br />Veatch is estimating an average 68 percent for the study period.
<br />BLACK & VEATCH I Water Rate Study
<br />65B -33
<br />21
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