07-05-2011 - West Covina Citywide Sewer Service Charge - Item 9 (2).pdfTO: Andrew G. Pasmant, City Manager
and City Council
FROM: Shannon A. Yauchzee, Director/City Engineer
Public Works Department
City of West Covina
Memorandum
AGENDA
ITEM NO. 9
DATE July 5, 2011
SUBJECT: WEST COVINA CITYWIDE SEWER SERVICE CHARG
PUBLIC HEARING
RECOMMENDATION:
It is recommended that the City Council approve Option 1 and adopt the following resolution:
RESOLUTION NO. - A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF WEST COVINA, CALIFORNIA, SETTING THE RATE
AND AUTHORIZING THE COLLECTION OF THE ANNUAL SEWER
SERVICE CHARGE THROUGH THE COUNTY TAX BILL
DISCUSSION:
The Sewer Service Charge funds the maintenance and operation of the City's sewer system,
assuring that lines are clear and flowing properly. The charges also fund the repair of mainlines
and laterals and provides for some extensions of existing sewer lines. Further, the charges fund
the required program that minimizes the pollutants in urban storm water runoff in compliance
with regulations of the Federal Clean Water Act.
The Sewer Service Charge is based on general land use categories: residential and non-
residential. A fixed fee is charged for each dwelling unit for residential property and every 667
square feet of floor area for other types of non-residential developments. Additionally, properties
not connected to the mainline sewer are exempt from the charge.
BACKGROUND:
At this time, staff is proposing to increase the Sewer Service Charges by 4% beginning in Fiscal
Year 2011-2012. The proposed increase to the annual Sewer Service Charge is from $50.25 to
$52.26 (difference of $2.01) per dwelling unit per year. Increases in the Sewer Service Charge
are primarily the result of increasing environmental regulations such as the recently adopted
"Order" from the State Water Resources Control Board (SWRCB) that required the City to
implement a new Sewer System Management Plan (SSMP). The SSMP was approved by the
City Council on April 7, 2009 and includes a program to inspect, clear, and repair damaged
mainlines, laterals, and upgrade of existing sewer mainlines as needed. The Order requires the
City to make every possible effort and have an emergency response plan to prevent and stop
sewer back-ups and overflows that could spill into the storm drains, which eventually lead to our
rivers and oceans. Future operating, maintenance, and repair costs will be based on the SSMP.
The cost to provide sewer services will continue to increase accordingly in order to comply with
the State's "unfunded" mandates, which are not reimbursable to the City.
In addition, the charges fund City street sweeping and other legally required environmental
programs to minimize the pollutants in urban storm water runoff in compliance with the Federal
Clean Water Act. The Federal Clean Water Act of 1977 requires State and local agencies to
develop practices to prevent, control, or treat storm water. Since the streets and related storm
drains lead to the ocean, one of the recommended practices to prevent trash and debris from
going into the City's storm drain system is to utilize frequent street sweeping.
Further, State law requires that a specific procedure be followed to collect the Citywide Sewer
Service Charge. The initial step is to adopt a resolution setting a date for a public hearing on the
method of collection. The process requires that a public notice be posted and published in a
locally circulated newspaper announcing the public hearing, but does not require notices be
mailed to each resident. The public hearing is required and held annually to give the property
owners an opportunity to voice their concerns on the method of collection. The most efficient
and least costly method of collecting the Citywide Sewer Service Charge is to place it on the
annual property tax bill. The Citywide Sewer Service Charge will then be collected at the same
time and in the same manner as the general property taxes.
Andrew G. Pasmant, City Manager
and City Council
Page 2 — July 5.2011
The following table shows the sewer rates of adjacent jurisdictions:
City Monthly Rates
Alhambra $6.04
Arcadia $15.96
Claremont $4.20
Los Angeles County - Contract Cities $10.08
Covina $5.50
Monrovia $4.77
Pasadena $6.30
West Covina
Current = $4.19
Proposed --- $4.36
Given that the adjustment of the Sewer Service Charge was authorized prior to the passage of
Proposition 218, the City can include this adjustment of 4% to the Sewer Service Charge without
having this constitute an "increase" under Proposition 218. Moreover, because the Sewer
Service Charge is imposed based on usage and receipt of service (i.e., only imposed if property is
connected to the main sewer line), the Sewer Service Charge is not subject to the requirements of
Proposition 218.
Although the proposed increase is not subject to the voting requirements of Proposition 218,
there is a property owner notification required for each parcel subject to the increase 45 days
prior to the public hearing on the proposed fee increase. There were 25,069 notices mailed out to
property owners on May 20, 2011. Staff received four written protests and one verbal protest to
the increase from property owners. Staff also received eight informational only calls, where the
resident expressed no view on the proposed rate increase. If a majority (more than 50% or
12,639) of the parcel owners (homeowners) file a written protest against the fee increase, the
increase may not be imposed above the Consumer Price Index (CPI) increase.
ALTERNATIVES:
The City Council may select a different method of collecting the charge, such as direct billing to
each property owner. However, the cost for the alternative method is estimated at about $15,000
to $20,000. By utilizing the General County Tax Bill, the recommended method, the overall cost
is estimated at $6,267 ($0.25 x 25,069 parcels) for Fiscal Year 2011-2012.
The Preliminary Financial Report reflects the effects of increasing the charges by 10%. The City
Council may choose one the following three options:
Option 1. Increase rates by 4% for 2011-2012 Fiscal Year based on costs to provide
services. This option will allow the continuation of weekly street sweeping, sewer
mainline inspection and repairs, and establish a reserve for future sewer mainline
upgrades (Recommended — Attachment "C-1").
Option 2. Increase rate by 3.0% based on the CPI for the Los Angeles, Riverside, and
Orange County areas for the period from March 2010 to March 2011 (Attachment
"C-2"). This alternative will result in delays of sewer mainline inspections,
cleaning, and repairs.
Andrew G. Pasinant, City Manager
and City Council
Page 3 — July 5. 201!
Option 3. Maintain the rates at their current level (Attachment "C-3"). This will result in a
negative fund balance by the end of Fiscal Year 2013-2014 and will require
reduction in services such as reducing the street sweeping frequency from once a
week to two times a month, the delay of sewer mainline inspections, cleaning, and
repairs. In addition, the reserves will remain depleted.
FISCAL IMPACT:
In Fiscal Year 2011-2012, the Citywide Sewer Service Charge rates are proposed to be increased
by 4% to $52.26 per unit per year. The proposed rates are projected to generate $2,543,233. In
addition, $179,000 is projected to be received from two other sources: $174,000 from an ad-
valorem (according to value) 1911 Act Maintenance District formed in 1968, and $5,000 from
charges for service under the Sewer Maintenance contract with the City of Covina. The total
projected revenue is $2,722,233
The proposed Operating Budget for Fiscal Year 2011-2012 is $2,591,511, which is an increase of
9.73% over the approved Fiscal Year 2010-2011 budget of $2,361,720. The increase in the
Operating Budget is largely due to the new State Water Resources Control Broad (SWRCB)
order and Air Quality Metropolitan District requirement to use compressed natural gas street
sweepers. In addition, a proposed fund transfer of $50,000 for sewer trench repairs and a Capital
Improvement Program (C1P) project to repair or replace existing sewer mainlines at an estimated
cost of $25,000 is recommended. The total operating and capital budget is $2,666,511.
The reserves are projected to increase from $128,331 to $184,053 by the end of Fiscal Year
2011-2012. A "10-Year Fiscal Projection" (Attachment "C") indicates that with the proposed
4% increase of the service charge, revenue is projected to meet Operating Budgets in the near
future years. This service charge is evaluated annually and acted on independent of past
projections.
ele.-140r
'repay- t by: Miguel Hernandez Reviewed/Approved by: Shannon A. Yauchzee
Civil Engineering Associate ( Director/City Engineer
Reviewed/Approved by:
Finance
Attachments: "A" - 15 Year Rate History
"B" - Financial Report
"C" - 10 Year Fiscal Projection
- Chart
"E" - Resolution
ATTACHMENT "A"
CITYWIDE SEWER SERVICE CHARGES
15 YEAR RATE HISTORY
FISCAL YEAR PER DWELLING
UNIT/MONTH
PER DWELLING
UNIT/YEAR
Proposed
2011-2012 4.36 S 52.26
2010-2011 $ 4.19 $ 50.25
2009-2010 5 3.81 $ 45.68
2008-2009 $ 2.76 $ 33.10
2007-2008 $ 2.34 5 28.05
2006-2007 $ 2.16 $ 25.97
2005-2006 $ 2.00 $ 24.05
2004-2005 8 1.93 $ 23.17
2003-2004 $ 1.90 $ 22.74
2002-2003 $ 1.83 $ 21.95
2001-2002 $ 1.83 $ 21.95
2000-2001 $ 1.83 5 21.95
1999-2000 $ 1.83 $ 21.95
1998-1999 $ 1.83 $ 21.95
1997-1998 $ 1.83 $ 21.95
‘ 1996-1997 $ 1.83 $ 21.95
Residential = One dwelling unit equals one unit
Commercial = 667 square feet of floor space equals one unit
ATTACHMENT "B"
CITY OF WEST COVINA
CITYWIDE SEWER SERVICE CHARGE
FISCAL YEAR 2011-2012
FINANCIAL REPORT
BUDGET AND ESTIMATED REVENUE
Submitted by:
Shannon A. Yauchzee
Public Works Director/City Engineer
Date:
WEST COVINA CITYWIDE SEWER SERVICE CHARGE
FINANCIAL REPORT
FISCAL YEAR 2011-2012
BUDGET SUMMARY AND RESERVE
MAINTENANCE
Personnel Services $ 1,023,906
Materials and Services $ 114,488
Maintenance Contracts $ 77,290
Utilities $ 11,000
Property and Liability Ins. $ 19,542
Administration and Overhead $ 178,755
Street Sweeping $ 571,342
NPDES Permit Development $ 25,000
TOTAL MAINTENANCE $ 2,021,323
II. ENGINEERING & INCIDENTAL
Personnel Services
Materials and Services
Consultant Services
Property and Liability Ins.
Administration and Overhead
$ 460,250
$ 4,614
$ 57,000
$ 8,614
$ 39,710
TOTAL ENGINEERING
S 570,188
2,591,511 TOTAL OPERATING BUDGET
III. TRANSFER-OUT
Trench Pavement Maintenance (Transfer-Out) 5 50.000
TOTAL TRANSFER-OUT
IV. CAPITAL IMPROVEMENTS
Sewer mainline repair $ 25,000
TOTAL CAPITAL BUDGET
TOTAL OPERATING AND CAPITAL BUDGET
50,000
25,000
2,666,511
IV. FUND BALANCE
A. Cash Flow $ 184,053
B. Contingency Reserve
TOTAL FUND BALANCE
$ 184,053
TOTAL BUDGET 5 2,850,564
WEST COVINA CITYWIDE SEWER SERVICE CHARGE
FINANCIAL REPORT
FISCAL YEAR 2011-2012
ESTIMATED REVENUE SUMMARY
I. Sewer Service Charge
II. Property Tax Revenue (Ad Valorem)'
Reimbursement for City of Covina
IV. Interest
TOTAL ESTIMATED REVENUES
V. Cash Fund Balance as of 6/30/2011
TOTAL FUNDS AVAILABLE
$ 2,543,233
$ 174,000
$ 5,000
$ 2,722,233
$ 128,331
$ 2,850,564
PROPOSED CHARGE
RATES: $52.26 per unit
RESIDENTIAL = One dwelling unit equals one unit
COMMERCIAL = 667 sq. ft. equals one unit
FEE INCOME: Total units x cost per unit
48,665 units x $52.26 = $2,543,233
COUNTY COLLECTION CHARGE
25,069 parcels x $0.25/parcel = $6,267
Ad Valorem is a Latin term that means according to value
Sewer 2011-2012 FinAls
WEST COVINA CITYWIDE SEWER SERVICE CHARGE
FINANCIAL REPORT
FISCAL YEAR 2011-2012
REVISED PROJECTED RESERVE - FISCAL YEAR 2010-2011
Appropriable Fund Balance as of 06/30/10 $ 11,772
Projected Revenue for Fiscal Year 20 10-201 1 $ 2,445,526
Projected Interest Income $ -
Projected Tax Revenue (Ad Valorem) $ 174,000
Reimbursement from the City of Covina $ 5,000
TOTAL PROJECTED REVENUE $ 2,636,298
VI Transfers out (Sewer Trench Repair) (50,000)
VII Appropriations for Operating Budget $ (2,361,720)
V111 Capital for Fiscal Year 2010-2011 5 (96,247)
TOTAL EXPENDITURES $ (2,507,967)
PROJECTED YEAR-END FUND BALANCE 128,331 AS OF 06/30/11
ATTACHMENT "C-1" WEST COVINA CITYWIDE SEWER CHARGES 10 YEAR FISCAL PROJECTION - RECOMMENDED INCOME GROWTH = 10.000/0 4.000/o 4.00°/o 4.00% 2.00% 2.00% 2.00% 2.000/0 2.00% 2.00% FISCAL YEAR 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 ASSESS. INCOME $ 2,445,526 $ 2,543,233 $ 2,645,071 $ 2,750,874 $ 2,805,891 $ 2,862,009 $ 2,919,249 $ 2,977,634 $ 3,037,187 $ 3,097,931 INTEREST $ _ $ $ - $ $ $ $ $ - $ $ - REIMBURSEMENT FROM OTHER $ 5,000 $ 5,000 $ 5,100 $ 5,202 $ 5,306 $ 5,412 $ 5,520 $ 5,631 $ 5,743 $ 5,858 PROPERTY TAX REVENUE $ 174,000 $ 174,000 $ 175,740 $ 177,497 $ 179,272 $ 181,065 $ 182,876 $ 184,705 $ 186,552 $ 188,417 TOTAL REVENUES $ 2,624,526 $ 2,722,233 _ $ 2,825,911 $ 2,933,573 $ 2,990,470 $ 3,048,486 $ 3,107,645 $ 3,167,970 $3,229,482 $3,292,206 PRIOR YR. BALANCE $ 11,772 $ 128,331 $ 184,053 $ 274,982 $ 402,877 $ 514,658 $ 584,039 $ 634,663 $ 615,096 $ 573,820 TOTAL FUNDING $ 2,636,298 $ 2,850,564 $ 3,009,964 $ 3,208,555 $ 3,393,347 $ 3,563,144 $ 3,691,684 $ 3,802,633 $3,844,578 $3,866,026 OPERATING EXP. $ 1,790,378 $ 1,995,169 $ 2,035,072 $ 2,075,774 $ 2,117,289 $ 2,159,635 $ 2,202,828 $ 2,246,884 $ 2,291,822 5 2,337,658 STREET SWEEPING CONTRACT $ 571,342 $ 571,342 $ 599,909 S 629,905 $ 661,400 $ 694,470 $ 729,193 5 765,653 5 803,936 $ 844,132 NPDES (Premiting & Compliance) $ - $ 25,000 $ 25,000 $ 25,000 $ 25,000 5 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 CAPITAL IMPROVEMENT PROJECTS $ 96,247 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 50,000 5 50,000 $ 100,000 $ 100,000 $ 100,000 SEWER TRENCH REPAIR TRANSFER $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 5 50,000 $ 50,000 $ 50,000 $ 50,000 TOTAL COST $ 2,507,967 $ 2,666,511 $ 2,734,981 $ 2,805,678 $ 2,878,689 $ 2,979,105 $ 3,057,021 $ 3,187,537 $3,270,758 $3,356,791 CASH BALANCE $ 128,331 _. $ 184,053 $ 274,982 $ 402,877 $ 514,658 $ 584,039 $ 634,663 $ 615,096 $ 573,820 $ 509,235 CASH FLOW $ 895,189 $ 997,585 $ 1,017,536 $ 1,037,887 $ 1,058,645 $ 1,079,818 $ 1,101,414 $ 1,123,442 $ 1,145,911 $ 1,168,829 OVER/UNDER $ (766,858) $ (813,532) 5 (742,554) $ (635,010) $ (543,987) $ (495,779) $ (466,751) $ (508,347) $ (572,091) $ (659,594) Charges per Unit $ 50.25 $ 52.26 $ 54.35 $ 56.52 $ 57.65 $ 58.81 $ 59.98 $ 61.18 $ 62.41 $ 63.66 ASSUMPTIONS: A). Interest is 30/s of the previous year ending balance B). 2% increase in Maintenance costs C). 2% increase in assessed value per year for property tax revenue DEFINITION Continue street sweeping to lour-times a month. Continue sewer main line repairs Continue street trench repairs Flan tor tuture sewer system upgrades Amount needed to assure that the district operates in a net positive cash flow CASH FLOW: position throughout the year to account for the fact that the revenues from the levy of the assessment is collected twice a year on the property tax bills OVER / UNDER: Amount over or under the desired Cash Flow amount. PRIOR REAR BALANCE: Funds available at the end of the previous fiscal year. lOYSEWER 2011-2012
ATTACHMENT "C-2" WEST COVINA CITYWIDE SEWER CHARGES 10 YEAR FISCAL PROJECTION INCOME GROWTH = 10.000/c 3.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.000/c 2.00% FISCAL YEAR 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 ASSESS. INCOME $ 2,445,526 $ 2,518,782 $ 2,569,158 $ 2,620,541 $ 2,672,952 $ 2,726,411 2,780,939 $ 2,836,558 $ 2,893,289 $ 2,951,155 INTEREST $ $ - $ $ - $ $ - $ $ $ 5 - REIMBURSEMENT FROM OTHER $ 5,000 $ 5,000 $ 5,100 $ 5,202 $ 5,306 $ 5,412 $ 5,520 $ 5,631 $ 5,743 $ 5,858 PROPERTY TAX REVENUE $ 174,000 $ 174,000 $ 175,740 $ 177,497 5 179,272 $ 181,065 $ 182,876 $ 184,705 $ 186,552 $ 188,417 TOTAL REVENUES $ 2,624,526 $ 2,697,782 $ 2,749,998 $ 2,803,240 $ 2,857,530 $ 2,912,888 $ 2,969,335 $ 3,026,893 $3,085,584 $3,145,430 PRIOR YR. BALANCE $ 11,772 $ 128,331 $ 159,602 $ 174,618 $ 172,180 $ 151,021 $ 84,804 $ $ $ TOTAL FUNDING $ 2,636,298 $ 2,826,113 $ 2,909,600 $ 2,977,858 $ 3,029,710 $ 3,063,909 $ 3,054,139 $ 3,026,893 $3,085,584 $3,145,430 OPERATING EXP. $ 1,790,378 $ 1,995,169 2,035,072 $ 2,075,774 $ 2,117,289 5 2,159,635 $ 2,202,828 $ 2,246,884 $ 2,291,822 $ 2,337,658 STREET SWEEPING CONTRACT $ 571,342 $ 571,342 $ 599,909 $ 629,905 $ 661,400 5 694,470 $ 729,193 $ 765,653 $ 803,936 $ 844,132 NPDES (Permitting & Compliance) $ $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 5 25,000 $ 25,000 $ 25,000 CAPITAL IMPROVEMENT PROJECTS $ 96,247 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 50,000 $ 50,000 $ 100,000 $ 100,000 $ 100,000 SEWER TRENCH REPAIR TRANSFER $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 TOTAL COST $ 2,507,967 $ 2,666,511 $ 2,734,981 $ 2,805,678 $ 2,878,689 $ 2,979,105 $ 3,057,021 $ 3,187,537 $3,270,758 $3,356,791 CASH BALANCE $ 128,331 $ 159,602 $ 174,618 $ 172,180 $ 151,021 $ 84,804 $ (2,882) $ (160,644) $ (185,174) $ (211,361) CASH FLOW $ 895,189 $ 997,585 $ 1,017,536 - $ 1,037,887 $ 1,058,645 $ 1,079,818 $ 1,101,414 $ 1,123,442 $ 1,145,911 $ 1,168,829 OVER/UNDER S (766,858) 5 (837,983) $ (842,918) 5 (865,707) $ (907,624) $ (995,014) $ (1,104,296) $ (1,284,086) $ (1,331,085) $ (1,380,190) Charges per Unit $ 50.25 $ 51.76 $ 52.79 $ 53.85 $ 54.92 $ 56.02 $ 57.14 $ 58.29 $ 59.45 $ 60.64 ASSUMPTIONS: A). Interest is 3% of the previous year ending balance B). 2% increase in Maintenance costs C). 2% increase in assessed value per year for property tax revenue DEFINITION Continue street sweeping to tbur-times a month. Continue sewer main line repairs Continue street trench repairs tilan tor tuture sewer system upgrades Amount needed to assure that the district operates in a net positive cash flow CASH FLOW: position throughout the year to account for the fact that the revenues from the levy of the assessment is collected twice a year on the property tax bills OVER / UNDER: Amount over or under the desired Cash Flow amount. PRIOR REAR BALANCE: Funds available at the end of the previous fiscal year. 10YSEWER 2011-2012
WEST COVINA CITYWIDE SEWER CHARGES INCOME GROWTH = 10.00% _ 0.00% 2.00% . 2.00% 2.00% 2.00% 2.00% . 2.00% . 2.00% 2.00% FISCAL YEAR 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 ASSESS. INCOME $ 2,445,526 $ 2,445,419 $ 2,494,328 $ 2,544,214 $ 2,595,099 $ 2,647,001 $ 2,699,941 $ 2,753,939 $ 2,809,018 $ 2,865,199 INTEREST $ $ $ $ $ _ $ $ S $ $ REIMBURSEMENT FROM OTHER $ 5,000 $ 5,000 $ 5,100 $ 5,202 $ 5,306 $ 5,412 $ 5,520 $ 5,631 $ 5,743 $ 5,858 PROPERTY TAX REVENUE $ 174,000 $ 174,000 $ 175,740 177,497 $ 179,272 $ 181,065 $ 182,876 $ 184,705 $ 186,552 $ 188,417 TOTAL REVENUES $ 2,624,526 $ 2,624,419 $ 2,675,168 $ 2,726,914 $ 2,779,677 $ 2,833,478 $ 2,888,337 $ 2,944,275 $3,001,313 $3,059,474 PRIOR YR. BALANCE $ 11,772 $ 128,331 $ 86,239 $ 1,426 $ - , - $ - - $ - $ . TOTAL FUNDING $ 2,636,298 _. $ 2,752,750 $ 2,761,407 $ 2,728,339 $ 2,779,677 $ 2,833,478 $ 2,888,337 $ 2,944,275 $3,001,313 $3,059,474 OPERATING EXP. $ 1,790,378 $ 1,995,169 $ 2,035,072 $ 2,075,774 $ 2,117,289 $ 2,159,635 $ 2,202,828 $ 2,246,884 $ 2,291,822 $ 2,337,658 STREET SWEEPING CONTRACT $ 571,342 $ 571,342 $ 599,909 $ 629,905 $ 661,400 $ 694,476 $ 729,193 $ 765,653 $ 803,936 $ 844,132 NPDES (Permitting & Compliance) $ $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 CAPITAL IMPROVEMENT PROJECTS $ 96,247 $ 25,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 100,000 $ 100,000 $ 100,000 SEWER TRENCH REPAIR TRANSFER S 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 _ $ 50,000 $ 50,000 TOTAL COST $ 2,507,967 ._ $ 2,666,511 $ 2,759,981 $ 2,830,678 $ 2,903,689 $ 2,979,105 $ 3,057,021 $ 3,187,537 $3,270,758 $3,356,791 CASH BALANCE $ 128,331 $ 86,239 $ 1,426 $ (102,339) $ (124,012) $ (145,627) $ (168,684) $ (243,263) $ (269,444) $ (297,317) CASH FLOW $ 895,189 $ 997,585 $ 1,017,536 $ 1,037,887 $ 1,058,645 $ 1,079,818 $ 1,101,414 $ 1,123,442 $ 1,145,911 $ 1,168,829 OVER/UNDER $ (766,858) $ (911,345) $ (1,016,111) $ (1,140,226) $ (1,182,657) $ (1,225,445) $ (1,270,098) $ (1,366,705) $ (1,415,355) $ (1,466,146) Charges per Unit $ 50.25 $ 50.25 $ 51.25 $ 52.28 $ 53.32 $ 54.39 $ 55.48 $ 56.59 $ 57.72 $ 58.87 ASSUMPTIONS: A). Interest is 3% of the previous year ending balance B). 2% increase in Maintenance costs C). 2% increase in assessed value per year for property tax revenue DEFINITIONS: Amount needed to assure that the district operates in a net positive cash flow CASH FLOW: position throughout the year to account for the fact that the revenues from the levy of the assessment is collected twice a year on the property tax bills OVER / UNDER: Amount over or under the desired Cash Flow amount. PRIOR REAR BALANCE: Funds available at the end of the previous fiscal year. Continue street sweeping to tbur-tinncs a month. Continue sewer main line repairs Continue street trench repairs Plan for future sewer system upgrades 1- und balance is depleted in three years
Personnel Services 57.3% ATTACHMENT "D" CITYWIDE SEWER SERVICE CHARGE FY 2011-2012 Maintenance Contracts 1 OL Utilities 1 Materials and Services 4.6% Administration and Overhead 8.4% Consultant Services 3.2% Property and Liability Ins. 1.1% Street Sweeping 22.0%
ATTACHMENT "E"
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA, CALIFORNIA, SETTING THE RATE AND
AUTHORIZING THE COLLECTION OF THE ANNUAL
SEWER SERVICE CHARGE THROUGH THE COUNTY
TAX BILL
WHEREAS, the City of West Covina is empowered by State law to fix an annual
sewer charge as attached hereto as Exhibit "A"; and
WHEREAS, the City Council of the City of West Covina has adopted such sewer
service charge which is exempted from Proposition 218; and
WHEREAS, the City may collect the charge as part of the annual County General
Tax Bill after a duly noticed public meeting to be held on the proposed collection of the charge
as part of the General Property Tax Bill; and
WHEREAS, such duly noticed public meeting was conducted by the City Council
and all testimony on such collection was considered.
NOW, THEREFORE, the City Council of the City of West Covina does hereby
authorize the collection of the annual Sewer Service Charge as attached in Exhibit "A" through
the County General Tax Bill for Fiscal Year 2011-2012.
SECTION 1. The City Clerk of the City of West Covina shall certify to the
adoption of this resolution.
PPROVED AND ADOPTED this 5 th day of July 201
Mayor Steve Hellen
ATTEST:
City Clerk Laurie Carrico
I LAURIE CARRICO, CITY CLERK of the City of West Covina, California, do hereby
certify that the foregoing resolution was duly adopted by the City Council of the City of West
Covina, California, at a regular meeting thereof held on the 5 th day of July 2011, by the following
vote of the City Council:
AYES:
NOES:
ABSENT:
City Clerk Laurie Carrico
APPROVED AS TO FORM:
City Attorney Arnold Alvarez-Glasman
ZARESOLUTION - 2011 \Sewer Public hearing Reso 201 1-2012.doc
EXHIBIT "A"
THE FISCAL YEAR 2011-2012 WEST COVINA CITYWIDE SEWER SERVICE
CHARGE IS AS FOLLOWS:
RATE: $52.26 per Unit
RESIDENTIAL: One Dwelling Unit Equals One Unit
COMMERCIAL: 667 sq. ft. of Floor Area Equals One Unit