Water Ad Hoc Committee Meetings

• Agendas & Meetings
• 8/29/2018 Presentation

Why do a Rate Study?

The last water rate study was completed in 2013 and included a phased five-year rate increase ending in Fiscal Year 2017-18.  The programmed water rates were designed to meet anticipated ongoing maintenance and operation costs, and provide sufficient funding for water system related upgrades and replacement projects.

Many of the revenue and expenditure estimates included in the 2013 study were based on 2011 and 2012 projections.  Subsequently, the City faced many challenges arising from the multi-year drought and mandated water conservation.  In addition, the Orange County Water District has implemented the final expansion of the Ground Water Replenishment System which will result in an increase of the City’s share of the Replenishment Assessment.  These and other cost factors support an update of the City’s water rates.  The study will again review anticipated cost increases for maintenance and operations, as well as robust funding for the water system infrastructure. 

The goal of the study is to ensure that the revenues cover the cost of services, meet the debt coverage requirements, and provide revenue for capital improvements.

 

The graph below shows the aging water pipeline by decade in the City.

 

Funding for Capital Improvement Projects

The City of Fullerton has approximately 32,000 water service connections and maintains 423 miles of potable water mains with 10 wells and 15 reservoirs on 12 pressure zones.

 

 

Need for Reliable Infrastructure

 

 

 

Revised: 8/31/2018***********************

Update 8/31/2018

Water Ad Hoc Committee Meetings

8/29/2018 
Presentation

Why do a Rate Study?

The last water rate study was completed in 2013 and included a phased five-year rate increase ending in Fiscal Year 2017-18.  The programmed water rates were designed to meet anticipated ongoing maintenance and operation costs, and provide sufficient funding for water system related upgrades and replacement projects. 

Many of the revenue and expenditure estimates included in the 2013 study were based on 2011 and 2012 projections.  Subsequently, the City faced many challenges arising from the multi-year drought and mandated water conservation.  In addition, the Orange County Water District has implemented the final expansion of the Ground Water Replenishment System which will result in an increase of the City’s share of the Replenishment Assessment.  These and other cost factors support an update of the City’s water rates.  The study will again review anticipated cost increases for maintenance and operations, as well as robust funding for the water system infrastructure. 

The goal of the study is to ensure that the revenues cover the cost of services, meet the debt coverage requirements, and provide revenue for capital improvements.

The graph below shows the aging water pipeline by decade in the City.

 

Funding for Capital Improvement Projects

The City of Fullerton has approximately 32,000 water service connections and maintains 423 miles of potable water mains with 10 wells and 15 reservoirs on 12 pressure zones.

Need for Reliable Infrastructure