BACKGROUND: In 2023, Santa Rosa Water (SRW) hired Hildebrand
Consulting, LLC (HC), to develop a ten-year long-range financial plan,
followed by a thorough cost of service analysis and recommendation of
a new water and wastewater rate schedule. HC found SRW’s financial
health is such that at the end of the current rate schedule, set to
conclude on June 30, 2025, moderate annual water and wastewater
rate increases would be required. Proposed increases between 6-7%
each year for water fixed and usage charges and 5% each year for
wastewater fixed and usage charges are proposed to help ensure that
SRW continues to meet all service and financial obligations. In addition,
SRW is proposing the re-introduction of the wholesale pass-through
rate increase to water rates. This would ensure that the annual
increase for wholesale water rates through Sonoma Water would be
passed through to the usage portion of customer water bills, ensuring
that SRW is neither under nor over charging customers for the annual
increase in the cost of wholesale water. In terms of the billing impacts,
in years where Sonoma Water’s increase to the wholesale rate is larger
than SRW’s increase to the usage rate, the customer would see an
impact slightly larger than the rate proposal on the usage portion of
their bills, and in years where Sonoma Water’s increase to the
wholesale rate is smaller than SRW’s increase to the usage rate, the
customer would see an impact slightly lower than SRW’s increase to
the usage rate.
RECOMMENDATION: It is recommended by the Board of Public
Utilities Budget Subcommittee and Santa Rosa Water that the Board of
Public Utilities, by resolution, recommend that, after compliance with
Proposition 218 and successful conclusion of a protest hearing, the City
Council 1.) Enact increased rates for water services and 2.) Enact
increased rates for wastewater services.
Attachments:
10. PUBLIC COMMENTS ON NON-AGENDA MATTERS
Live Public Comment: Members of the public can provide comment on an
agenda item in-person from the Council Chamber at the time an agenda item
is discussed during the Board of Public Utilities Meeting.