HomeMy WebLinkAbout(1994, 01/24) - L-20 - Amended - changed to L-20M-5
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. Operation and maintenance of the water system.
3. Water system betterments and improvements.
4. Transfer $100,000 to the Future Water Sources Reserve.
5. Transfers to the General Fund for administrative support.
6. Transfer $200,000 to the Water Quality Improvement Reserve.
7. Water for City parks, buildings, highway landscaping, sewer and storm drain
flushing, and fire fighting.
8. System losses.
9. Operating reserves.
Water rates shall not be used to offset costs of City department activities not directly
related to the cost of provisional water. In the case of overlapping responsibilities
and activities, the Utilities Committee shall review and recommend to the City
Council activities or responsible fees directly attributable to the cost of the
provisions of water.
B. A minimum operating reserve (unappropriated surplus) of $1,000,000 shall be
maintained in the Water Fund.
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 exceed the cost
of:
a. Operating the system and providing water for 6 months plus;
b. An amount equal to one-half the last 5 years's annual budget for water fund
capital improvement project.
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.
M-5
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