HomeMy WebLinkAbout(1997, 02/24) - L-20 - AmendedWATER 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 strict.
3. Operation and maintenance of the water syste
4. Water system betterments and improvemen
5. Transfers to the General Fund for adminis tive support.
6. Water for sewer, water main, and storm rain flushing, and fire fighting.
7. System losses.
8. Operating reserves.
Water rates shall not be used to off t costs of City department activities not
directly related to the cost of pr iding water. In the case of overlapping
responsibilities and activities, the t lities /Public Works Committee shall review
and recommend to the City ouncil activities or responsible fees directly
0 attributable to the cost of providing water
B. A minimum operating r serve (unappropriated surplus) should exceed an
amount equal to operati g the system and providing water for two (2) months.
These funds shall be u d for emergency repair to the water system and, if used,
shall be restored wit n three budget years.
1. It will be flp(e City's goal to maintain reserves at a level higher than the
2. The d ired unappropriated water fund reserve balance should not
excee 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.
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.
L -20 0
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
Formerly M -5
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