ACWD to Conduct a Public Hearing on Proposed Rate Increase

The Alameda County Water District Board of Directors will conduct a public hearing to receive and hear comments on proposed increases to the District’s bimonthly service charge. If adopted, the increase would become effective May 1, 2015, for all water used on or after that date.

Under the proposed rate schedule, the bimonthly service charge rate increase would result in an increase of approximately 8 percent, ($9.59 or $4.80 per month) for the average single family residential customer using 23 units bimonthly (about 283 gallons per day) and with a 5/8 or 3/4 inch meter.

Specifically, staff is proposing a 30 percent increase to the bimonthly service charge (which is based on the size of the meter serving the property) and no increase to the commodity rate and drought surcharge. The bimonthly service charge would increase from $31.95 to $41.54 for customers with a meter size of 5/8 or 3/4 inches. Despite these increases, the District’s average residential bill would fall below the median of 30 Bay Area water providers.

The District’s Financial Planning Model (FPM) has been utilized to project the operating and capital expenditures necessary to fulfill the District’s mission of providing a reliable supply of high quality water at a reasonable price. The model indicates that an 8 percent increase in overall revenue is needed to cover the total costs to run the District.

The following factors were taken into account in the District’s financial planning:

· Increased expenses and decreased revenue resulting from the ongoing drought.

· The need to remain fiscally stable and solvent by maintaining adequate debt service coverage and cash balances.

· A forecasted 31 percent increase in the cost of water the District purchases from SFPUC in Fiscal Year 2015/16.

· A 9 percent increase in CalPERS costs and an 8 percent increase in medical costs.

The following actions are being taken to help the District’s financial situation:

· Elimination of temporary positions and leaving vacant or deleting certain full time positions.

· Deferral of capital projects with estimated costs totaling $20 million.

· Delay of accelerated additional annual payments toward post-employment related benefits.

· Leverage the District’s excellent credit rating and current historical low interest rates and issue a tax exempt bond to help finance critical capital projects and maintain crucial infrastructure.

A public hearing on the proposed bimonthly service charge increase will be held in the board room at District headquarters, 43885 South Grimmer Blvd., Fremont, on Tuesday, April 14, 2015, at 6 p.m.