Southern California Water Coalition 1
Af Affordability • Municipal utilities have a competing mandate – 1. Provide high quality and reliable water and wastewater service 2. Provide that service at an affordable price while meeting increased regulations • “Affordability” cannot be measured by averages • The impact of the current economic conditions could be delayed and affect a new group of customers 2
Cu Custome omer r Su Survey 3
Customer Rate Relief Programs Rate Decreases Bill Credit Assistance Program 4
Al Alternate Programs Alternative Overview Fiscal Impacts Lowers rates to provide ongoing Permanent revenue reductions that will reduction to monthly bills. Benefit to result in future rate increases. May Rate Decrease the customer is experienced over time require a Proposition 218 process to with small monthly reduction in costs. restore the rates to current level. 5
Al Alternate Programs Alternative Overview Fiscal Impacts Lowers rates to provide ongoing Permanent revenue reductions that will reduction to monthly bills. Benefit to result in future rate increases. May Rate Decrease the customer is experienced over time require a Proposition 218 process to with small monthly reduction in costs. restore the rates to current level. Provides immediate discount relief to One-time use of reserves, which may customers on a system-wide basis with Bill Credit be recovered through future rate a one-time credit in an amount increases. equivalent to a rate rollback. 6
Alternate Programs Al Alternative Overview Fiscal Impacts Lowers rates to provide ongoing Permanent revenue reductions that will reduction to monthly bills. Benefit to result in future rate increases. May Rate Decrease the customer is experienced over time require a Proposition 218 process to with small monthly reduction in costs. restore the rates to current level. Provides immediate discount relief to One-time use of reserves, which may customers on a system-wide basis with Bill Credit be recovered through future rate a one-time credit in an amount increases. equivalent to a rate rollback. Program targeted to those in greatest One-time use of reserves with Assistance Program need to provide immediate financial opportunity to recover some costs. relief. 7
Draft Assistance Program Monthly Annual Number of Maximum Estimated Repayment Installment Revenues Accounts Amount Participants Term Payment Residential $53.9 million 51,666 $300 3,450 24 months $12.50 Apartment $3.3 million 616 $1,500 77 12 months $125 Complexes Commercial $5.1 million 982 $1,500 383 12 months $125 Irrigation $15.6 million 2,952 $1,500 383 12 months $125 8
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