The Foresthill Public Utility District received the results of a Cost Of Service Study and Water Rate Plan from HFH Consultants at its November 13 Board meeting. The new plan differs from current rates in several ways, including a monthly base rate covering fixed costs, and a variable rate that charges for water used by each customer.
Two customer classes are established; Residential and non-Residential. Both classes would be charged the same base rate, determined by meter capacity. The rate structure sets one variable commodity rate for Residential customers for the first 5,000 gallons used per month. A second tier rate for use over 5,000 gallons will apply to Residential users. Non-residential customers will pay a uniform rate for all usage.
Customers will likely see more seasonal variations in their water bills. Depending on consumption, bills may be lower in the winter and higher in the summer. The bills will correlate more with actual usage patterns under the new plan.
The plan is designed to match current estimated revenue to the District in the current fiscal year that ends on June 30, 2020, while an inflation rate of 3% is predicted for succeeding years. The rate structure also anticipates that customers will most likely use less water when every gallon is charged for, and that usage patterns may actually be lower, potentially resulting in less revenue being received by the District in future months.
The new plan is designed to conform to all California laws, including Proposition 218. In accordance with the requirements of that measure, a Notice with details of the plan will be mailed to each property owner in the District in the near future. Comments about the new plan and rates are welcomed, and will be considered by the District.
Property owners will have the opportunity, under the provisions of Proposition 218, to protest the new rates, and will have at least 45 days after the Notice is mailed to present their protest to the District. One or more public meetings are anticipated for the Board to consider comments and protests before a final hearing on the new rates will be held on February 25, 2020. At that meeting, protests will be considered and new rates may be formally approved, which would take effect in the March billing cycle. If more than 50% of property owners protest the new rates, they would not take effect and old rates would continue.
The Cost and Rate Study and new rate tables, and a copy of the November 13 presentation from HFH Consultants, will be available for download from the District’s Web Site (www.foresthillpud.com) within the next few weeks. Interested parties can also call the FPUD office at (530) 367-2511 with questions, or send email to email@example.com
Press Release – November 15, 2019