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File #: WS 21-030   
Section: Work Session Status: Agenda Ready
Meeting Body: City Council
Agenda Date: 6/1/2021 Final action:
Subject: FY22 and FY23 Water and Sewer Rates: Review and Provide Feedback on Recommended FY 2022 and FY 2023 Water and Sewer Rates
Attachments: 1. Attachment I Staff Report, 2. Attachment II Hayward Water Exec Summary (Draft)
DATE: June 1, 2021

TO: Mayor and City Council

FROM: Director of Public Works

SUBJECT
Title
FY22 and FY23 Water and Sewer Rates: Review and Provide Feedback on Recommended FY 2022 and FY 2023 Water and Sewer Rates
End
RECOMMENDATION
Recommendation
That Council reviews and comments on this report.
End
SUMMARY

Cost-of-service analyses have been prepared for providing water and sewer service to Hayward residents and businesses to calculate appropriate water and sewer rates and service charges for FY 2022 and FY 2023. This report provides an overview of cost-of-service issues, revenue requirements, and recommended FY 2022 and FY 2023 water and sewer service rates. Staff prepared the sewer cost-of-service analysis and recommended rates. The water analysis was prepared by Raftelis Financial Consultants, Inc., a consulting firm that specializes in financial advising for utilities and public agencies. Staff is bringing the proposed rates to Council to obtain comments. After receiving and addressing Council's comments, staff will implement appropriate and necessary public noticing procedures in accordance with state law prior to a public hearing, currently scheduled for July 20, 2021. The approved rate adjustments would take effect on October 1, 2021 and 2022.

The Water Rate Study prepared by Raftelis documents the City's water revenue requirements for FYs 2022 and 2023, as well as customer demand patterns and rate equity. For FY 2022, revenue requirements will be unchanged. The recommended water rates for FY 2022 incorporate the results of the cost-of-service analysis and include adjustments to bi-monthly fixed service fees, along with modifications to tier rates to reflect new customer usage and improve equity. The recommended water rate structure would result in an overall 1.2% increase for average residential water users in FY 2022. Commercial and industrial entities could see modest increases, and in some cases,...

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