Special Helix WD Board Meeting - Back to the Drawing Board - Additional Water Rate Scenarios - 3PM TODAY

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Dear Friends: 
Here is the board package link for our Helix Water District Board Meeting: AGENDA
SPECIAL MEETING OF THE BOARD OF DIRECTORS
Friday, May 25, 3 pm
7811 University Avenue, La Mesa, CA 91942-0427
 
Last week the Board met and went over 3 proposed water rate scenarios. The Board rejected ALL three proposals. After quite a bit of discussion and suggestions from the Board, we asked staff to modify the scenarios and come back with them slightly modified to discuss today at 3pm. The staff brought back an additional 5 scenarios, proposed new rate scenarios reduce the rates 1% or more!
Here is what has been proposed:
 
Proposed Scenario Descriptions
Scenario 1 Local water supply from rainfall at 660 acre-feet in fiscal year 2018-19 and then at the historical average of 1,220 acre-feet in fiscal years 2019- 20 through 2022-23
Scenario 2 Local water supply from rainfall gradually reducing to zero by fiscal year 2022-23.
Scenario 3 Local water supply from rainfall gradually reducing to zero by fiscal year 2022-23. Additionally, the $2.5 million of budgeted revenues in excess of budgeted expenditures for fiscal year 2017-18 being placed in the rate stabilization fund and then available to offset rate increases in fiscal year 2018-19.
Scenario 4 Utilize scenario 2 above and then increasing water sales by 6 percent to 30,000 acre-feet versus the fiscal year 2017-18 budget of 27,700 acre-feet
Scenario 5 Utilize scenario 2 and then offset the proposed rate increase by: • increasing water sales by 3 percent to 28,500 acre-feet versus the fiscal year 2017-18 budget of 27,700 acre-feet; • using $975,000 from the El Monte Reserve to partially fund the castiron pipeline replacement program for fiscal year 2018-19; • not making a $750,000 prepayment to Cal PERS in 2018-19; and • refilling the rate stabilization fund to the 5 percent minimum set by the district's reserve guidelines.
Scenario 6 Utilize scenario 2 and then offset the proposed rate increase by: • increasing water sales by 3 percent to 28,500 acre-feet versus the fiscal year 2017-18 budget of 27,700 acre-feet; • using $975,000 from the El Monte Reserve to partially fund the castiron pipeline replacement program for fiscal year 2018-19; • not making a $750,000 prepayment to CalPERS in 2018-19; and • refilling the rate stabilization fund in fiscal year 2018-19 only to 4 percent versus the 5 percent minimum set by the district's reserve guidelines and revisiting bringing the reserve to the minimum 5 percent level during the fiscal year 2019-20 budget process.
Scenario 7 Utilize scenario 2 and then offset the proposed rate increase by: • increasing water sales by 3 percent to 28,500 acre-feet versus the fiscal year 2017-18 budget of 27,700 acre-feet; • using $975,000 from the El Monte Reserve to partially fund the castiron pipeline replacement program for fiscal year 2018-19; • not making a $750,000 prepayment to CalPERS in 2018-19 and • keeping the rate stabilization fund at its current level of $2.3 million or 2.8 percent of water billings and revisiting bringing the reserve to the minimum 5 percent level during the fiscal year 2019-20 budget process.
Scenario 8 Utilize scenario 2 and then offset the proposed rate increase by: • increasing water sales by 6 percent to 30,000 acre-feet versus the fiscal year 2017-18 budget of 27,700 acre-feet; • using $975,000 from the El Monte Reserve to partially fund the castiron pipeline replacement program for fiscal year 2018-19; • not making a $750,000 prepayment to Cal PERS in 2018-19; and • keeping the rate stabilization fund at its current level of $2.3 million or 2.8 percent of water billings and revisiting bringing the reserve to the minimum 5 percent level during the fiscal year 2019-20 budget process.

• San Diego County Water Authority anticipated water rate increase is 1.4% of the total increase (included below).

 
For the average customer using 21 Units of water in a two-month period.
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Current 2017-18 - $151.19
Scenario 1
% 4.6
$ Increase $6.99
Proposed 2018-19 $158.18

Scenario 2
% 4.9
$ Increase $7.47
Proposed 2018-19 $158.66

Scenario 3
% 4.9
$ Increase $7.47
Proposed 2018-19 $158.66

Scenario 4
% 4.2
$ Increase $6.37
Proposed 2018-19 $157.56

Scenario 5
% 3.9
$ Increase $5.89
Proposed 2018-19 $157.08

Scenario 6
% 3.5
$ Increase $5.33
Proposed 2018-19 $156.52

Scenario 7
% 3.4
$ Increase $5.14
Proposed 2018-19 $156.33

Scenario 8
% 3.0
$ Increase $4.56
Proposed 2018-19 $155.75
 
**This is less than the anticipated 2015 Water Rate Study of 7.1% - 218 Notice.
 
MY thoughts for discussion…

• Great new scenarios…

 
As always, I welcome your comments and feedback.
 
Blog is on my website of past meetings & comments…check it out!
Please feel free to forward this email.
 
Kathleen Coates Hedberg, PE, MPH
President, Helix Water District
www.HWD.com
Board Director, San Diego County Water Authority
www.SDCWA.org
www.lakejennings.org (go fishing & camping - teepees)
www.socalwatersmart.com  (rebate link)
 
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