2024-06-04 CC Agenda Packet - Presentation #2 - West Basin0
Fiscal Year 2024-2025
Budget Summary
City of El Segundo
June 2024
About West Basin
www.westbasin.org
Mission
Provide a safe and reliable
supply of high -quality water
to the communities we serve.
www.westbasin.org 3
Service Area
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Division I
Carson, Palos Verdes Estates, Rancho Palos Verdes,
Rolling Hills, Rolling Hills Estates, and the unincorporated
LA County areas of Rancho Dominguez
Division II
Inglewood, portions of the cities of Gardena and
Hawthorne, and the unincorporated LA County areas
of Ladera Heights, View Park -Windsor Hills, West
Athens, and Westmont
Division III
Hermosa Beach, Lomita, Manhattan Beach, Redondo
Beach, a portion of the city of Torrance, and the
unincorporated LA County area of West Carson
Division IV
Culver City, El Segundo, Malibu, West Hollywood, a
portion of the city of Hawthorne, and the unincorporated
LA County areas of Del Aire, Marina del Rey,
Topanga, and Wiseburn
■ Division V
Lawndale, portions of the cities of Gardena and
Hawthorne, and the unincorporated LA County area of
El Camino Village and Lennox
www.westbasin.org
n
What Charges Are On Your
Bill
www.westbasin.org
What Charges Are On Your Bill
Charges from MWD
1. MWD Full Service Treated Volumetric Rate
2. MWD Readiness -To -Serve (RTS) Charge:
West Basin collects this charge based on volumetric rate from its retailers
on behalf of MWD.
3. MWD Capacity Charge (CC):
West Basin collects this charge from its retailers on behalf of MWD. The
charge for each agency is a fixed monthly rate based on the allocation
formula from MWD.
www.westbasin.org 6
What Charges Are On Your Bill
Charges from West Basin
1. West Basin's Reliability Service Charge (Assessed on potable rates)
• West Basin Potable Water Rate Formula
MWD Full Service Treated Volumetric Rate
+ MWD RTS Rate
+ West Basin Reliability Service Charge
West Basin Potable Tier 1
2. West Basin's Recycled Water Rates
• Irrigation recycled water rate
• Advanced treated recycled water rate
3. Fixed Service Charge
Helps fund the following reliability programs:
• Public Information and Education
• Water Policy and Resources Development
www.westbasin.org 7
Key Budget Drivers
www.westbasin.org
Key Budget Drivers for Fiscal Year 2024-25
1. Lower demand for potable water in FY 2022-23 and FY 2023-24 resulted i n :
a) Lower than budgeted revenue collection of West Basin's Reliability Service
Charge in both years.
b) Under -collection of MWD's RTS from retailers.
2. Recycled water sales were lower than budgeted. The costs of maintaining the aging
facilities, chemicals, and utilities increased.
3. West Basin's Standby Charge revenue phased out through FY 2030-31.
4. Decrease in West Basin's Reserve Balance and Debt Coverage.
5. Net Revenue is not sufficient to cover CIP and R&R Costs.
www.westbasin.org 9
Key Budget Drivers: Recycled Water Sales and Costs
Recycled water sales and the costs of maintaining aging recycled water facilities
have become more unpredictable.
Recycled Water Sales in AF vs Cost
60000
50000
40000
30000
20000
10000
0
FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23
o Recycled Water Sales in AF
Recycled Water Cost in Thousands
www.westbasin.org 10
Expenses
www.westbasin.org
FY 2024-25 Proposed Expenses
Recycled Water Operations
Board Services
Conservation
Public Information and
Education
Technical Planning
Water Policy & Resources
Development
Groundwater Monitoring
Overhead
Total Expenses
$53,851,981
442,740
11951,683
3,511,052
$57,519,100
654,000
3,150,455
4,859,793
$56,204,589
1,516,868
2,447,709
41956,549
($1,314,511)
862,868
(702,746)
96,756
916,009
51215,398
11143,918
(41071,480)
1,891,221
1,316,106
21306,104
989,998
11,100
60,502
201,814
(39,289)
222,496
574,036
11291,883
717,847
$62,798,282
$73,349,390
$69,888,434
($3,460,956)
www.westbasin.org 12
Water Use Efficiency/Conservation
• Grass Replacement - $5001,000
• Rebates for residents, businesses and public agencies for grass replacement
• Rain Barrels - $128,000
• Five annual rain barrel giveaway events, one within each Division
• Public Agency Landscape Design - $30,000
• Free landscape design services for local cities and other public agencies
• CII Water Efficiency Program - $50,000
• Parkway Beautification Program- $150,000
• Regional Water Efficiency Program - $138,200
• Partnership with Las Virgenes MWD and LA County Waterworks to provide various
water efficiency measures and resources in the northern parts of the service area
www.westbasin.org 13
FY 2024-25 Reliability
Service Charge Options
www.westbasin.org
FY 2024-25 RSC & Potable Tier 1 Rates - 4 Options
Projected retail potable sales as 80,000 AF and WRD Dominguez Gap Barrier sales as 1,800 AF
Tier 1
$1,256
$1256
$1,256
$1,256
RTS
149
149
149
149
Total MWD Water Rate/AF
$1,405
$1,405
$1,405
$1,405
WB RSC Increase %
00/0
5%
West Basin RSC/AF
275
289
303
316
WB Tier 1 Rate/AF
$1,680
$1,694
$1,708
$1,721
Tier 1
$1,395
$1,395
$1,395
$1,395
RTS
191
191
191
191
Total MWD Water Rate/AF
$1,586
$1,586
$1 586
WB RSC Increase %
0%
5°
West Basin RSC/AF
275
289
303
316
WB Tier 1 Rate/AF
$1,861
$1,875
$1,889
$1,902
15
West Basin Fixed Service Charges
Includes the operation costs from Public Information/Education and Water Policy.
'ormation Education Water Poli Total
c. .
California American Water Co.
955
$65,102
$5,425
California Water Service - Dominguez
21,220
1,446,748
120,562
California Water Service - Hawthorne
3,348
228,268
19,022
California Water Service - Hermosa
Redondo
9,372
638,995
53,250
California Water Service - Palos Verdes
16,574
1,130,033
94,169
City of El Segundo
6,666
454,498
37,875
City of Inglewood
6,201
422,786
35,232
City of Lomita
1,964
133,888
11,157
City of Manhattan Beach
4,356
296,975
24,748
Golden State Water
19,942
1,359,656
113,305
L.A. Co. Water Works District No. 29
8,097
552,017
46,001
WRD- Dominguez Gap Barrier
7,828
533,687
44,474
TOTAL
106FS23
$7,262,652
$605,221
www.westbasin.org
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