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Home My WebLink AboutW and WW Public Hearing (2-12-24)revPhoto courtesy of Ken Lund (Flickr) City of Seal Beach Water and Wastewater Utility Financial Plan & Rate Study – PUBLIC HEARING February 12, 2024 2 Agenda •Review Financial Plan and Proposed Rates •Critical Needs •FAQ's •Council Action Recommendations •Open Public Hearing Raftelis Water and Wastewater Financial Plan Project Team 3 Steve Gagnon, PE (AZ) Project Manager Sarah Wingfield Lead Analyst ▪24+ years experience ▪15+ years in Orange County setting water and wastewater rates ▪e: sgagnon@raftelis.com Gina DePinto, APR Communications ▪e: swingfield@raftelis.com ▪34+ years experience ▪Former PIO in county, city, special district agencies, including OCWD ▪e: gdepinto@raftelis.com City of Seal Beach Staff Factors Affecting Utility Financial Health and Driving the Need for Rate Increases 4 1.Debt Service Coverage: 1.2 times; City currently not meeting requirements 2.Inflation: after the COVID-19 Pandemic •Higher labor and material cost 3.Lower Water Use (drought & rain) = decreased revenue. Estimated FY 2021 revenue loss = $600k, volume down by 21% 4.Wholesale Water Costs •Increased OCWD water wholesale costs (partly due to PFAS) •MWDOC: Import water wholesaler 5.Aging Infrastructure / Deferred Maintenance 6.New Legislation and Regulations –Making Conservation a CA Way of Life Inflation 5 The Utility Index vs Normal Goods (CPI) 6 Examples of Other Water and Wastewater Rate Increases (Bill Impacts) •Mesa Water District recently revised rates two years into a 5-year rate study due to increased OCWD rates, inflation, and capital •Trabuco Canyon recently revised rates three years into the prior rate study due to inflation and increased capital costs •San Dieguito Water District (Encinitas) –July 1, 2024, rate increases. Loss of local lake water is increasing residential bills by around 15% •Huntington Beach –July 1, 2024, rate increase. •Pasadena –Wastewater utility has been implementing CPI increases since 2007 •Burbank 7 Bill Increase (%)FY 2024 FY 2025 Mesa Water District 13%10% Trabuco Canyon Water 33%18% Wastewater 16%16% San Dieguito Water District 15%12% Huntington Beach Water 10%10% Wastewater 13%16% Pasadena (Draft) Water 25%12% Wastewater 152%16% Burbank 10%NA What Affects Utility Costs •Size: Seal Beach population = 25,000 •Water sources •Age of system/pipes •Historical investment/maintenance •Property tax revenue •Elevation 8 Source: Manny Teodoro Newsletter 2/1/2024 Top Concerns in the Water Industry 9 Source: AWWA State of the Water Industry 2023 10 Water Financial Plan & Proposed Rates Financial Outlook Without Revenue Increases (or bond issuances) 11 Proposed Monthly 5-Year Fixed Charges 12 Water Date Effective ->> Rates Effective 1/1/2024 4/1/2024 1/1/2025 1/1/2026 1/1/2027 1/1/2028 Monthly Fixed Charges All Customers 5/8''$24.25 $32.25 $40.32 $47.17 $52.83 $58.11 3/4''$24.25 $32.25 $40.32 $47.17 $52.83 $58.11 1"$36.07 $47.97 $59.97 $70.16 $78.58 $86.44 1.5"$69.88 $92.93 $116.17 $135.92 $152.23 $167.45 2"$105.71 $140.59 $175.73 $205.61 $230.28 $253.31 3"$188.08 $250.15 $312.68 $365.84 $409.74 $450.71 4"$312.94 $416.20 $520.25 $608.70 $681.74 $749.92 6"$616.21 $819.56 $1,024.45 $1,198.61 $1,342.44 $1,476.68 8"$985.61 $1,310.86 $1,638.58 $1,917.13 $2,147.19 $2,361.91 10"$1,410.78 $1,876.34 $2,345.42 $2,744.14 $3,073.44 $3,380.78 6" Leisure World $616.21 $819.56 $1,024.45 $1,198.61 $1,342.44 $1,476.68 2" Aquatic Park $159.53 $212.17 $265.21 $310.30 $347.53 $382.28 Private Fire Charges 4"$25.20 $33.51 $41.89 $49.01 $54.89 $60.38 6"$73.18 $97.33 $121.66 $142.34 $159.43 $175.37 8"$155.95 $207.41 $259.27 $303.34 $339.74 $373.72 10"$280.46 $373.01 $466.26 $545.52 $610.98 $672.08 Proposed Bi-monthly 5-Year Fixed Charges 13 Water Date Effective ->> 1/1/2024 4/1/2024 1/1/2025 1/1/2026 1/1/2027 1/1/2028 Bi-monthly Fixed Charges All Customers 5/8''$48.50 $64.51 $80.63 $94.34 $105.66 $116.23 3/4''$48.50 $64.51 $80.63 $94.34 $105.66 $116.23 1"$72.14 $95.95 $119.93 $140.32 $157.16 $172.88 1.5"$139.75 $185.87 $232.33 $271.83 $304.45 $334.90 2"$211.41 $281.18 $351.47 $411.22 $460.57 $506.62 3"$376.16 $500.29 $625.37 $731.68 $819.48 $901.43 4"$625.87 $832.41 $1,040.51 $1,217.40 $1,363.48 $1,499.83 6"$1,232.42 $1,639.12 $2,048.90 $2,397.21 $2,684.88 $2,953.36 8"$1,971.22 $2,621.72 $3,277.15 $3,834.27 $4,294.38 $4,723.82 10"$2,821.56 $3,752.67 $4,690.84 $5,488.29 $6,146.88 $6,761.57 6" Leisure World (bi-monthly shown, but billed monthly)$1,232.42 $1,639.12 $2,048.90 $2,397.21 $2,684.88 $2,953.36 2" Aquatic Park $319.05 $424.34 $530.42 $620.59 $695.06 $764.57 Private Fire Charges 4"$50.39 $67.02 $83.77 $98.01 $109.78 $120.75 6"$146.36 $194.66 $243.32 $284.69 $318.85 $350.74 8"$311.90 $414.83 $518.53 $606.68 $679.49 $747.44 10"$560.91 $746.01 $932.51 $1,091.04 $1,221.96 $1,344.16 hcf = hundred cubic feet 1 hcf = 748 gallons of water Proposed 5-Year Volumetric Rates ($/hcf) 14 Water Date Effective ->> Rates Effective 1/1/2024 4/1/2024 1/1/2025 1/1/2026 1/1/2027 1/1/2028 Volumetric Rates ($ /hcf) Residential Tier 1 $3.49 $4.64 $5.80 $6.79 $7.60 $8.36 Tier 2 $3.69 $4.91 $6.13 $7.18 $8.04 $8.84 Multi-Family Residential Tier 1 $3.49 $4.64 $5.80 $6.79 $7.60 $8.36 Tier 2 $3.65 $4.85 $6.07 $7.10 $7.95 $8.75 Leisure World Tier 1 $3.49 $4.64 $5.80 $6.79 $7.60 $8.36 Tier 2 $3.65 $4.85 $6.07 $7.10 $7.95 $8.75 Commercial $3.49 $4.64 $5.80 $6.79 $7.60 $8.36 Irrigation $3.57 $4.75 $5.94 $6.94 $7.78 $8.56 City $3.53 $4.69 $5.87 $6.87 $7.69 $8.46 Aquatic Park $3.95 $5.25 $6.57 $7.68 $8.61 $9.47 Water FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 Rate Revenues $6,160,620 $6,225,060 $6,195,656 $6,195,656 $6,195,656 Other Revenue (misc & int)$25,755 $26,013 $26,273 $88,288 $95,876 Proposed Revenue Increases $508,251 $3,089,186 $4,980,146 $6,578,749 $7,976,703 Total Revenue $6,694,626 $9,340,259 $11,202,075 $12,862,693 $14,268,235 Operating Expenses Personnel $2,053,371 $2,367,641 $2,557,052 $2,761,616 $2,982,545 Maintenance and Operations $1,854,700 $1,954,935 $2,058,082 $2,128,491 $2,198,471 Fixed Water Purchases $427,127 $456,039 $483,721 $512,059 $542,111 Volumetric Water Purchases $2,033,990 $2,077,022 $1,973,388 $2,069,375 $2,171,009 Total Expenses $6,369,188 $6,855,637 $7,072,243 $7,471,541 $7,894,136 Current Debt Service $541,416 $529,364 $526,647 $520,603 $420,167 Proposed Debt Service $0 $845,669 $1,371,223 $1,956,686 $1,956,686 Net Yearly Cashflow*($215,978)$1,109,589 $2,231,963 $2,913,864 $3,997,247 Rate Funded Capital $1,523,863 $0 $1,187,158 $0 $4,872,500 Net Cashflow after Capital ($1,739,841)$1,109,589 $1,044,805 $2,913,864 ($875,253) *Does not include millions in needed capital investment Water Financial Outlook with Revenue Increases 15 Total CIP $1,523,863 $13,549,658 $11,377,500 $6,612,500 $7,080,000 Debt Coverage and Reserve Balances 16 Average Monthly Water Cost Impacts 17 Average Monthly Water Cost Impacts 18 19 Wastewater Financial Plan & Proposed Rates Wastewater FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 Rate Revenues $2,213,306 $2,213,306 $2,213,306 $2,213,306 $2,213,306 Other Revenue (misc & int)$127,760 $51,500 $31,764 $32,082 $32,403 Proposed Revenue Increases $0 $0 $0 $0 $0 Total Revenue $2,341,066 $2,264,807 $2,245,070 $2,245,388 $2,245,709 Expenses Personnel $1,250,518 $1,500,559 $1,620,604 $1,750,253 $1,890,273 Maintenance and Operations $1,010,720 $1,061,256 $1,114,319 $1,147,748 $1,182,181 Total Expenses $2,261,238 $2,561,815 $2,734,923 $2,898,001 $3,072,454 Current Debt Service $545,583 $545,623 $545,183 $544,263 $542,863 Proposed Debt Service $0 $0 $0 $0 $0 Net Yearly Cashflow*($465,755)($842,632)($1,035,035)($1,196,876)($1,369,608) Rate Funded Capital $3,350,412 $530,000 $721,500 $8,395,000 $4,956,000 Net Yearly Cashflow ($3,816,167)($1,372,632)($1,756,535)($9,591,876)($6,325,608) *Does not include millions in needed capital investment Wastewater Utility Costs Exceed Revenue 20 Proposed 5-Year Monthly Wastewater Rates 21 Wastewater Current 4/1/2024 1/1/2025 1/1/2026 1/1/2027 1/1/2028 Fixed Charges Single Family Residential (Flat Charge)$24.02 $32.43 $40.21 $47.85 $54.07 $57.85 Multi-Family Residential (Customer Serv. Charge)$0.61 $0.82 $1.02 $1.22 $1.37 $1.47 Commercial (Customer Serv. Charge)$0.61 $0.82 $1.02 $1.22 $1.37 $1.47 City (Billing Charge)$0.61 $0.82 $1.02 $1.22 $1.37 $1.47 Leisure World - Customer Serv. Charge)$0.61 $0.82 $1.02 $1.22 $1.37 $1.47 Leisure World - Flat Rate $1,099.03 $1,483.69 $1,839.78 $2,189.33 $2,473.95 $2,647.12 Aquatic Park - Sewer Service Equity Charge $498.75 $673.31 $834.91 $993.54 $1,122.70 $1,201.29 Aquatic Park - Sewer Capital Equity Charge $661.00 $892.35 $1,106.51 $1,316.75 $1,487.93 $1,592.08 Navy (Customer Serv. Charge)$0.61 $0.82 $1.02 $1.22 $1.37 $1.47 Volumetric Rates ($ / hcf) Multi-Family Residential $4.00 $5.40 $6.70 $7.97 $9.00 $9.63 Commercial $4.00 $5.40 $6.70 $7.97 $9.00 $9.63 City $4.00 $5.40 $6.70 $7.97 $9.00 $9.63 Navy - Sewer Meter $0.24 $0.32 $0.40 $0.48 $0.54 $0.58 Proposed 5-Year Bi-Monthly Wastewater Rates 22 Wastewater Current 2/1/2024 1/1/2025 1/1/2026 1/1/2027 1/1/2028 Fixed Charges Single Family Residential (Flat Charge)$48.04 $64.85 $80.42 $95.70 $108.14 $115.71 Multi-Family Residential (Customer Serv. Charge)$1.22 $1.65 $2.04 $2.43 $2.75 $2.94 Commercial (Customer Serv. Charge)$1.22 $1.65 $2.04 $2.43 $2.75 $2.94 City (Billing Charge)$1.22 $1.65 $2.04 $2.43 $2.75 $2.94 Leisure World - Customer Serv. Charge)$1.22 $1.65 $2.04 $2.43 $2.75 $2.94 Leisure World - Flat Rate $2,198.06 $2,967.38 $3,679.55 $4,378.67 $4,947.89 $5,294.25 Aquatic Park - Sewer Service Equity Charge $997.50 $1,346.63 $1,669.82 $1,987.08 $2,245.40 $2,402.58 Aquatic Park - Sewer Capital Equity Charge $1,322.00 $1,784.70 $2,213.03 $2,633.50 $2,975.86 $3,184.17 Navy (Customer Serv. Charge)$1.22 $1.65 $2.04 $2.43 $2.75 $2.94 Volumetric Rates ($ / hcf) Multi-Family Residential $4.00 $5.40 $6.70 $7.97 $9.00 $9.63 Commercial $4.00 $5.40 $6.70 $7.97 $9.00 $9.63 City $4.00 $5.40 $6.70 $7.97 $9.00 $9.63 Leisure World $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Navy - Sewer Meter $0.24 $0.32 $0.40 $0.48 $0.54 $0.58 Wastewater Financial Outlook with Revenue Increases 23 Wastewater FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 Rate Revenues $2,213,306 $2,213,306 $2,213,306 $2,213,306 $2,213,306 Other Revenue (misc & int)$130,665 $74,396 $73,529 $82,143 $99,647 Proposed Revenue Increases $193,664 $1,133,213 $1,843,750 $2,482,320 $2,943,285 Total Revenue $2,537,635 $3,420,915 $4,130,585 $4,777,770 $5,256,238 Expenses Personnel $1,250,518 $1,500,559 $1,620,604 $1,750,253 $1,890,273 Maintenance and Operations $1,010,720 $1,061,256 $1,114,319 $1,147,748 $1,182,181 Total Expenses $2,261,238 $2,561,815 $2,734,923 $2,898,001 $3,072,454 Current Debt Service $545,583 $545,623 $545,183 $544,263 $542,863 Proposed Debt Service $0 $0 $0 $910,720 $910,720 Net Yearly Cashflow*($269,186)$313,476 $850,479 $424,786 $730,202 Rate Funded Capital $3,350,412 $530,000 $721,500 $0 $0 Net Yearly Cashflow*($3,619,598)($216,524)$128,979 $424,786 $730,202 *Does not include millions in needed capital investment Total CIP $3,350,412 $530,000 $721,500 $8,395,000 $4,956,000 Debt Coverage and Reserve Balances 24 Average Wastewater Cost Impacts 25 Average Wastewater Cost Impacts 26 Average Single-Family Residential Total Water and Wastewater Bill 27 Total Increase: $54 bi-monthly or $27 monthly Summary •The utilities are not meeting debt coverage ratios ›Makes it difficult to issue debt to fund needed capital reinvestment ›City has ongoing disclosure requirements to inform investors on items that may affect the bonds •Inflation, lower water use, and revised capital needs have significantly impacted the cost of providing these critical water and wastewater services •Proposed rate increases will restore the utilities’ financial health allowing the City to continue to secure and deliver safe, reliable water and wastewater services •These services receive no revenue from tax dollars. The funds we collect for these services are used to operate and reinvest in these systems. •Modern, resilient, and reliable water and wastewater systems require investment. We focus on ensuring the best value and the least impact on our customers. 28 29 Expenditure Programming Efficiency Efforts 30 1.Cross-train qualified staff to attain optimal efficiencies 2.Utilizing qualified contractors at competitive prices to ensure the best outcome 3.Actively identified outside funding opportunities i.SRF Loan ii.Bureau of Reclamation grant 4.Preventative vs. Reactive Maintenance 5.Include only initiatives that can be delivered Capital Improvement Projects WATER 1.Lampson Well Treatment System(1), (2) 2.LCWA Watermain Relining(1), (2) 3.Navy Reservoir Rehabilitation 4.Bolsa Chica Rehabilitation(1) 5.Beverly Manor Station(1), (2) 6.AMI SEWER 1.Pump Station #35(1) 2.Sewer Mainline Improvements(1) 3.SCADA Improvements(1) 4.Seal Way Water/Sewer 5.Sunset Aquatic Station 6.Boeing Pump Station 31 (1) In progress (2) External funding SIGNFICANT Cost of Doing Nothing 32 •Impact to General Fund, taking away from other City services •Leaks, failures, and more costly emergency repairs •Violations and fines •Unreliability •Health and safety compromise 33 FAQ's and Recommendations INFOGRAPHICProposition 218 Substantive Requirements Revenues cannot exceed the funds required to provide the service The amount of the fee cannot exceed the proportional cost of providing service Revenues cannot be used for any purpose other than to pay for the service for which it was charged Use reliable data 34 Set rates proportional to the cost of providing the service Reasonably allocate amongst grouped ratepayers based on a cost-of-service Financial Assistance Programs 35 •California Financial Assistance Programs ›Low Income Household Water Assistance Program (LIHWAP) ›Administered by Department of Community Services and Development (CSD) ›www.csd.ca.gov/lihwap ›(866) 675-6623 36 Outreach Council Meetings Following the City Council’s approval of the agreement to retain Raftelis to prepare the updated rate study on 6/12/23,public announcements were made at various subsequent Council meetings regarding the process and important dates. Dedicated Website https://www.2023utilityratestudy.sealbeachca.gov/ (inclu des FAQs, key dates, video resources, documents, literature) Informational Webinar 11/30/23 – recording also made available on dedicated website. Social Media Posted events and updates through social media channels (i.e., webinar and open house). Local Newspaper Articles published on 11/22/23,12/14/23, 1/25/24, 2/8/24. Public Hearing Notices were published on 1/25 and again this week on 2/1. Press Releases 2/1/24, 1/16/24, 12/19/23, and 11/21/23. The most recent release references tonight's public hearing and recommended continuance to 2/26/24. Utility Bill Inserts Billing inserts regarding the rate study update and schedule were sent with utility bills during the last billing cycle of 2023. Dedicated Phone & Email Utilityrates@sealbeachca.gov (562) 342-7389 •Rate Study Website www.2023utilityratestudy.sealbeachca.gov •Dedicated Phone Line/Email (562) 342-7389 utilityrates@sealbeachca.gov •Social Media/News Content #sealbeachpublicworks #cityofsealbeachca 37 Public Information Council Action Recommendations That the City Council opens the public hearing to accept comments on the proposed Water and Sewer Rates, and continues the item to February 26, 2024, to allow for additional public review time. February 26, 2024 –Public Hearing Continuance •Upon conducting a public hearing to accept comments on the proposed Water Rates,and at the close of the close of the public hearing a majority protest for Water Rates adjustments does not exist,it is recommended that City Council adopt a resolution establishing the Water Rates,effective April 1,2024; and, •Upon conducting a public hearing to accept comments on the proposed Sewer Rates,and at the close of the close of the public hearing a majority protest for Sewer Rates adjustments does not exist,it is recommended that City Council adopt a resolution establishing the Sewer Rates,effective April 1,2024. 38 39 End of Presentation (Back Up Slides Follow for Reference If Needed) Water -Use of Funds •City plans $13.5M in capital funded by a SFR loan and market debt in FY 2025 40 Wastewater -Use of Funds •75% has to do with Personnel & O&M 41 42 Water Infrastructure 43 Sewer Infrastructure Inflation 44 •The U.S. experienced 20 years of benign inflation right up to the City’s last water and wastewater rate studies, which were started in 2019. FY 2022 FY 2023 FY 2024 Actual Actual Actual General (for Los Angeles Area)1 6.5%5.4%2.1% Utilities (Electricity)2 14.6%8.6%7.0% Capital 7.9%4.9%Budgeted OCWD rate3 4.5%9.6%11.8% MWDOC Volumetric Rate4 2.4%3.5%5.8% 1CPI for All Urban Consumers:Los Angeles, Long Beach, Anaheim 2CPI for All Urban Consumers: Electricity in LA, LB and Anaheim 3This does not assume unfavorable EPA ruling for PFAS concentrations 4FY 2025 increases and beyond were provided by MWDOC Inflation Factors - 2021 Study All 5 Years General 2.2% Utilities 2.2% Capital 3.2% OCWD 6.5% MWDOC Volumetric Rate % Increase 2.4% Water Use is Down, Therefore Revenue is Lower 45 1.City adopted Level 2 water restrictions due to drought 2.2022/23 Winter Storms –customers use less water for irrigation 3.State Legislation –Making Water Conservation a Way of Life seeks to lower California water use FYE 2021 FYE 2022 FYE 2023 Total Water Volume (hcf)1,457,089 1,481,931 1,172,884 2%-21% Approximately $600k in lost revenue in FYE 2023! Water Financial Health Without Rate Increases •Not meeting debt coverage requirements; need 1.2x •Will quickly deplete reserves without revenue increases 46 Capital Improvement Projects -Water 47 Capital Improvement Projects FYE 2024 *FYE 2025 FYE 2026 FYE 2027 FYE 2028 Total $1,523,863 $6,142,696 $6,250,000 $5,750,000 $6,000,000 Sample Project List •Lampson Well Treatment System •LCWA Watermain Relining •Bolsa Chica Well Rehabilitation •Navy Reservoir Rehabilitation •Beverly Manor Booster Station •FYE 2024 only includes carry-over design funds, but no CIP construction costs due to lack of funding Water Reserves •Operating reserve = 25% of operating expenses ≈ $1.5M •Capital reserve = 30% of average yearly cash/reserve funding capital ≈ $1M •Debt reserve = 25% of debt service ≈ $200 to 500k •Total reserve goal ≈ $2.5 to $3M 48 Water Financial Plan 49 Why are the revenue increases needed? 1)They are needed to meet debt coverage ratios so the City can issue debt to fund needed capital projects 2)Keep up with inflation 3)Recover lost revenue due to lower water use 4)Fund aging Infrastructure replacement FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 April 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 Jan 1, 2028 Additional Revenue $500k $3.09M $4.98M $6.58M $7.58M Market Debt Issuance $13M $9M State Loan (SRF)$11M Water Financial Plan •The reserves are temporarily high in FY 2027 & 2028 because debt is funding capital 50 Wastewater Financial Health without Rate Increases •Not meeting debt coverage requirements; need 1.2x •Will quickly deplete reserves without revenue increases 51 Wastewater Reserves •Same targets as water •Plan for Reserve target ≈ $1M 52 Capital Improvement Projects -Wastewater 53 Capital Improvement Projects FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 Total $3,350,412 $500,000 $650,000 $7,300,000 $4,200,000 Sample Project List •Sewer Mainline and Manhole Repairs •Pump Station #35 •Boeing/Sunset Aquatic/Adolfo Lopez Pump Station Improvements IIlustrates dip in FYE 25/26 in CIP due to lack of funding. Wastewater Financial Plan 54 Why? 1)Needed to meet debt coverage ratios so the City can issue debt to fund essential capital projects 2)Keep up with inflation FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 April 1, 2024 Jan 1, 2025 Jan 1, 2026 Jan 1, 2027 Jan 1, 2028 Additional Revenue $193k $1.13M $1.84M $2.48M $2.94M Market Debt Issuance $14M Financial Plan •Debt coverage is driving the rate increases, not so much reserve balances 55 56 Total Cost Impacts - Water and Wastewater Average Cost Impacts -Water and Wastewater 57 Average Cost Impacts -Water and Wastewater 58 Proposition 218 Procedural Requirements 1. IDENTIFY PARCELS subject to the change 3. PROVIDE WRITTEN NOTICE to all record owners including the amount, basis upon which the amount was calculated, reason for the change, and the date/time/ location of a public hearing 4. HOLD A PUBLIC HEARING no less than 45 days from mailing the notice, consider all protests to the change - if a majority of property owners and customers protest, the change will not be adopted at that time 2. CALCULATE the amount of the change to be imposed 59 60 Community Engagement Meeting/Event Date Time Topic Informational Webinar Thursday, Nov. 30 6-7:30 p.m. Overview of City water and sewer utilities, how rates are determined, legal rate setting in California City Council Meeting Monday, Dec. 11 7 p.m.City Council to consider Financial Plan and rate updates Issue Prop 218 Notice Tentatively Dec. 28 Written notice of the public hearing, proposed rate adjustments, basis upon which the rate adjustments were calculated, reasons for the adjustments, and public right to protest Rate Study Community Open House Thursday, Jan. 18, 2024 6-8 p.m. Utility customers and community members are invited to meet with staff and financial experts about utility services and proposed rates Public Hearing Tentatively Feb. 12, 2024 7 p.m.City Council to consider proposed rate adjustments Rates Implemented Tentatively April 2024 61 Glossary