HomeMy WebLinkAbout(1998, 05/26) - L-20 - Amended0 L -20
WATER RATES
A. The City's water rates shall provide sufficient revenue to offset the following costs:
1. Water purchased from the Metropolitan Water District through Coastal
Municipal Water District.
2. Water purchased from the Orange County Water District.
3. Operation and maintenance of the water system.
4. Water system betterments and improvements.
5. Transfers to the General Fund for administrative support.
6. Water for sewer, water main, and storm drain flushing, and fire fighting.
7. System losses.
8. Operating reserves.
Water rates shall not be used to offset costs of City department activities not
directly related to the cost of providing water. In the case of overlapping
responsibilities and activities, the City Manager or the City Manager's designee
shall review and recommend to the City Council activities or responsible fees
directly attributable to the cost of providing water.
B. A minimum operating reserve (unappropriated surplus) should exceed an
amount equal to operating the system and providing water for two (2) months.
These funds shall be used for emergency repair to the water system and, if used,
shall be restored within three budget years.
1. It will be the City's goal to maintain reserves at a level higher than the
minimum.
2. The desired unappropriated water fund reserve balance should not exceed
the cost of:
a. Operating the system and providing water for six (6) months plus;
b. An amount equal to one -half of the average annual budget for
Water Enterprise Fund capital improvement projects. The average
annual budget for capital improvement projects is based on the last
five (5) budget years.
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C. The City will attempt to set water rates and utilize reserves in a manner that will
facilitate uniform rate increases over the long term rather than sporadic or large
increases.
D. Water rates shall be reviewed annually. Additional review of the water rates
may be performed in the event special circumstances such as unanticipated
MWD rate increases or unanticipated major capital expenditure needs occur.
Adopted - October 26, 1976
Amended - November 27,1978
Amended - April 27,1987
Amended - January 24,1994
Amended - February 26,1996
Amended - February 24,1997
Amended - May 26,1998
Formerly M -5
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