2021-02-16 CC Agenda Packet - ITEM #5 - PRESENTATION - Waster-Waste Water HearingCity of El Segundo
Water & Wastewater Rate Adjustments
FY 202Om2l through FY 2024m25
Prop. 218 Public Hearing
Financial Plan
Rate Setting
Framework
Final Rate
Cost of Service Adoption
& Rate Design
Water
Wastewater
Rates need to be adjusted to reflect current operational
costs
Water Rates
El Segundo is 100% dependent on West Basin
City does not produce or treat water
City only distributes water
Chevron uses 50% of water purchased from West Basin
Water Enterprise Fund is in good financial shape
Recommendation:
3.0% increase each following January 1st (2022 to 2025)
El Segundo will remain the
lowest for plurchased water
+ $53.39 $55.97
$49.5.
$40.15
El Segundo El Segundo Hermosa Inglewood
Current Proposed 2021 Beach
$62.42 $65.80 $67.77 $68.73
$ 60. 37 M E
GS Water CA American CA Water Manhattan CA Water PV Lomita
Hawthorne Beach
■ Fixed ■ Variable ■ Surcharges Total
$123.01
LA County
Waterworks
7
Wastewater Rates
City operates and maintains the wastewater collection system
Wastewater treatment is divided by geographic region
between East and West
East side
of PCH
is serviced
by
LA County
West side
of PCH
is serviced
by
the L.A. Hyperion Reclamation Plant
City has not increased rates since 2016
Future
Hyperion treatment costs
El Segundo costs are anticipated to increase by 91% from FY 2017 to
FY 2021
Projected annual increase in O&M over the next five years is 6%
700
600
500
400
300
200
100
FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17
M El Segundo Flaw (mgd)
FY 2017-15 FY 2018-19 FY 2019-20
11
$70,000,000
$60,000,000
$50,000,000
$40,000,0O0
$30,000,000
$20,000,000
$10,000, 000
S-
FY 20 11- 12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 20 17- 18 FY 2018-19 FY 2019-20 FY 2020-21
■ LA O&M ■ LA Capital
12
5.0%
4.5%
4.0%
3.5%
3.0%
1.5%
1.0%
0.5%
0.0%
FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-15 FY 2015-19 FY 2019-20 FY 2020-21
Actual Cost % Projected Cost %
13
$ 3, 000, O 00
$2,500,000
$2,000,000
$1, 500, O 00
$1, 000, 0 00
$500,000
Projected FY 21 cost is almost
double actual FY 17 cost.
FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21
Actual Cast Projected Cast
14
I
Revenue increase (maximum) by 9% (2021 and 2022) and
9,5% (2023 to 2025)
Smooth out the impacts from the City of LA
Achieves reserve target by 2025
4. 0
.0
. 0
Wa .tea to r Tots I Fund Balance
2021
2022
� Combined Balance
Ta rrge t
16
Ln $3.0
0
$2.5
$2.0
$1.5
$1.0
$0.5
2020
Wastewater Total Fund Balance
No
2021
2022
■ Combined Balance
2023
Ta rget
2024 2025
17
Approximately $24 of the
FY 2021 El Segundo Wastewater
bill is related to treatment costs.
$30.53 $30.53 $3 .5
$21.68
Hermosa Beach El Segundo Redondo Beach Culver City
Current
$5.15
$3 .0
Manhattan El Segundo
Beach Proposed 2021
w Fined ■ Variable
Santa Monica
$ 0.4
Los Angeles
0.6
El Segundo Current
Approximately $24 of the
FY 2021 El Segundo Wastewater
bill is related to treatment costs.
$10 .9
5.0
$8 .92 $ _ 4
Hermosa Beach Redondo Beach El Segundo Proposed Manhattan Beach
2021
M See r M later
$19_49
Los Angel es
19
March 2, 2021
2nd Ordinance reading & adoption of the new rates
• April 2, 2021
New rates implemented for wastewater
January i, 2022 & each January i through 2025
Implement 3% rate increase for Water
Implement 9% in 2022 and 9.5% each year thereafter
Wrap-up & Questions
A
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