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Previous Water Rates Processes
Facilities Connection Charges Update and SB 330
District staff worked with the consultant to update the facilities connection charges (FCC), which are one-time fees paid by developers when a new connection is made to the Water System. FCCs were last studied in 2019. Staff reviewed the preliminary results with the Board at the December 14, 2023 meeting. The Board held a public hearing on February 8, 2024 for consideration of the proposed revisions to the District’s FCCs and the FCC report. View the notice for the public hearing At the conclusion of the public hearing, the Board approved the proposed fees, which became effective on May 1, 2024. Staff also reviewed the requirements and impacts of Senate Bill 330 (SB 330) on the FCCs. View the agenda and presentation for the February 8th 2024 public hearing.
The report on the FCC update from the District’s financial consultant is available. The report includes supporting documents which form the basis for the proposed update to the District’s FCCs. The documents and spreadsheets are available for review at the District offices and/or on the District’s website.
- 2023 Facilities Connection Charge Report
- Prior Facilities Connection Charges Report from 2019
- Inventory of Existing Water Facility Assets and Replacement Cost New Less Depreciation (RCNLD) Calculations
- Capital Improvement Program Costs and Cost Allocations
- Adopted Budget for FY 2023-24
2022 Water Rates Process
The District conducted a series of financial workshops to review the budget and water rates on May 18, July 20, August 25, and September 22, 2022. At the conclusion of the workshops, the Board directed staff to prepare a formal rate increase proposal, to be presented at the regular December Board meeting, at which time the Board would consider issuing a formal rate increase notice to all customers. This meeting was held on December 8, 2022.
Board Meetings
December 8th, 2022: At this Board meeting, District staff presented proposed charges and water rates based on the discussions that occurred over the series of financial workshops during 2022, including a review of proposed water-related rates and charges, facilities connection charges, miscellaneous fees and charges, and setting a public hearing. The Board set February 9, 2023 for a public hearing and authorized staff to provide formal notice to the community of proposed rate increases. View the formal rate increase notice.
Financial Workshops
May 18, 2022: At this workshop, District staff presented the Midcycle Updates to Fiscal Year 2021/22 and Fiscal Year 2022/23 Budget to the Board. The Board reviewed forecast revenue, operating expenses, capital expenditures, staffing levels and labor-related costs, and multi-year financial projections. Staff presented the updated financial projections and proposed amendments to the year 2 budget. View the presentation from the May 18, 2022 workshop.
July 20, 2022: This workshop focused on the District’s financial status and projections, water rates and charges, rate structures, the allocation between fixed and variable charges, the approach to funding the capital improvement program, stage rates that could be charged during a water shortage emergency. View the presentation from the July 20, 2022 workshop.
August 25, 2022: This workshop focused on financial planning scenarios, the State Water Project Override tax, use of the property tax roll for collecting on delinquent accounts, and a review of drought surcharges (stage rates). View the presentation from the August 25, 2022 workshop.
September 22,2022: This workshop focused on the financial planning assumptions and metrics, an overview of potential approaches to drought surcharges, and an overview of the District's State Water Project Override property tax. View the presentation from the September 22, 2022 workshop.
Community Meetings
January 19, 2023: This meeting was conducted in person at 6 p.m. at Downtown Event Center, located at 3500 Capitol Avenue, Fremont, CA 94536.
January 26, 2023: This meeting was conducted on Zoom at 6 p.m.
Public Hearing
February 9, 2023: A public hearing on the proposed increases to ACWD's water rates and charges was held at 6 p.m. on Thursday, February 9, 2023. Members of the public could participate in this meeting via webinar or in person at ACWD Headquarters at 43885 S. Grimmer Blvd. At this meeting, the Board discussed the revisions to the District’s Rate and Fee Schedule regarding water-related rates and charges, including drought surcharges and private fire service rates, the customer assistance program, facilities connection charges, and miscellaneous fees and charges. At the conclusion of the public hearing, the Board approved staff recommendations. View the presentation from the February 9, 2023 workshop.
Additional Documents
- 2022 Water Rates Update and Financial Plan
- Review of Proposed Water-Related Rates and Charges
- Notice of Proposed Increase in Water Rates and Drought Surcharges
2021 Water Rates Process
The District completed a series of Board financial workshops, meetings, and a public hearing regarding water-related rates and charges, including drought surcharges and private fire service rates. At the conclusion of the rates process and the public hearing held in February 2023, the Board approved a rate increase of 4% to the service charge and commodity charges effective March 1, 2023 and March 1, 2024. The Board also approved the updates to the drought surcharge and private fire service rates. In March 2023, the Board rescinded imposition of the drought surcharges effective April 1, 2023.
December 9th, 2021 Board Meeting
At this Board Meeting, District staff presented proposed charges and water rates based on the discussions that occurred over the series of financial workshops during 2021, including a review of proposed water-related rates and charges, a Cost of Service Study, and a review of Water Shortage Emergency Stage Rates. The Board authorized staff to provide formal notice to the community of proposed rate increases. View the formal rate increase notice.
January 20th, 2022 Informational Meeting
The District held an informational meeting to discuss proposed rate changes. You may view the recording of the meeting on Youtube by using this link. You may also review the presentation from the January meeting.
February 10th, 2022 Board Meeting
At this meeting, the Board conducted a public hearing on the proposed increases to water rates, water shortage emergency stage rates, fire service line rates, and the miscellaneous fees and charges, including updates to the facilities connection charges. The Board received public comments, and after deliberation voted to adopt the rate proposal. You may view the meeting on YouTube by using this link. You may also view the presentation from the February meeting.
Financial Workshops
In 2021, the District conducted a series of Financial Workshops.
May 19, 2021: At this workshop, District staff presented the draft Proposed FY 2021/22 and FY 2022/23 Budget to the Board. The Board reviewed forecast revenue, operating expenses, capital improvement program expenditures, staffing levels and labor-related costs, and financial planning scenarios related to water conservation. View the presentation from the May 19, 2021 workshop.
May 27, 2021: This workshop continued the discussion on the District 2-year budget with the focus primarily on capital expenditures and multi-year financial scenarios, including water rates, related to water conservation. View the presentation from the May 27, 2021 workshop.
August 26, 2021: This workshop focused on the District’s financial status, rate setting requirements including a cost-of-service analysis, the allocation between fixed and variable charges, the charges for dedicated fire service lines, water shortage emergency stage rates, and the use of the property tax roll for billing and collecting on delinquent accounts. View the presentation from the August 26 workshop.
September 23, 2021: This workshop included follow-up from the August 26 workshop, continue the discussion regarding the alternative stage rate scenarios and a cost of service analysis, reinstatement of formal collections activities including use of the property tax roll, and use of property tax roll to collect service charges. View the presentation from the September 23 workshop.
October 28, 2021: This workshop focused on the discussion regarding the revenue allocation between the fixed and variable charges, the approaches to revenue adjustments, as well as a review of related data and policy objective considerations. Following Board deliberation, the Board considered a rate increase based on a 6% revenue increase to the fixed service charge and no change to the commodity charge.
As a separate item, this workshop also discussed the transition from at-large to zone-based elections, which is included in the presentation materials along with the financial presentation. View the presentation from the October 28 workshop.
2020 Water Rates Process
In 2020 ACWD completed a new rates process, with the Board ultimately declining to increase water rates. This process also included a series of workshops and Board meetings.
Financial Workshops
August 27, 2020: The District held a financial workshop to start a new rates process to review the allocation between fixed service charges and commodity charges in collecting revenues, the charges for dedicated fire service lines, and to provide an update on the District’s current financial status. View the presentation from the August 20 workshop.
October 22, 2020: The District held a financial workshop to continue the discussion regarding the District’s current and projected future financial status and potential water rates and charges increase. The workshop was conducted by webinar. Customers were invited to participate virtually to join the discussion and to learn more about the District’s finances, rates and charges, as well as the cost-of-service studies that the District is conducting to guide the rate setting process. View the agenda and presentation from the October 22 workshop.
Board Meetings:
Following Board deliberation at workshops in August and October, District staff prepared a water rates proposal with a 2 percent increase effective March 1, 2021 and another 2 percent increase effective March 1, 2022. After deliberation in the December 10th Board meeting, the Board determined not to move forward with a rate increase.