Benicia Draft Utility Rate Study Available For Public Review

BENICIA, CA — The city of Benicia's draft utility rate study is now available for public review and comment, the city announced Tuesday.

The Benicia City Council will hold a public study session July 27, when the draft rate study will be explained and the public can make comments.

Last year, the city began working with Bartle Wells Associates, independent public finance advisors, to develop a the draft water and wastewater utility rate study.

The draft study is posted on the city's website at Ci.benicia.ca.us/watersewerrates.

A rate study is a planning document that examines a utility’s reasonably foreseeable revenues and expenses to ensure long-term financial and operational stability. The city's last water and wastewater rate study was completed in 2016 and covered a planning period through 2021

The draft rate study was developed using data-based decision making when it comes to setting the city's utility rates.

"It is important for us to rely on independently validated data when making future projections," said Kyle Ochenduszko, deputy Public Works director for the city of Benicia.

According to city officials, the goals of the current draft rate study are to:

• ensure fund solvency and transparency;
• fully fund ongoing operations and maintenance;
• deliver a prioritized Capital Improvement Program;
• develop easy to understand customer categories and charges;
• develop proportionate and reasonable service charges based on the City’s
• actual costs of service; and
• ensure affordability of service.

The draft rate study builds on the City’s 2020 Water and Wastewater Condition Assessments, previous years’ Comprehensive Annual Financial Reports, adopted budgets, and actual historical customer data, city officials said. This solid set of data enables the city to accurately project the next five years of revenues and expenditures — detailed in the draft rate study, the city said.

During the meeting Tuesday, July 27, the City Council will review the draft rate study, solicit public input, and provide direction to staff.

The city said more information about the public meeting will be made available Wednesday when the agenda for the meeting is issued and posted to the city's website.