Lakeport Summary Rate Analysis Final Report (886kb)
The Utilities Department revenue for the past few years has fallen short of expenses due to operational costs like fuel, electricity and chemical (etc.) increases. To compensate for inflationary pressures management made cuts to its Capital Improvement Program (CIP)and eliminated or froze staffing positions to reduce the draw on reserves.
A rate analysis for the water and sewer enterprise was adopted in the Fiscal Year 2010/2011 budget. Prior to awarding the contract to HDR in May of 2011 the City Council authorized the Utility Department to form a Citizens Utilities Services Advisory Committee on 2/1/2011. A press release was issued for letters of interest to be submitted by 2/18/2011, but due to the lack of response the deadline was extended to 5/16/2011. The City’s newsletter Volume 1, Issue 2 was delivered with utility bills and posted on the city website asking individuals who are interested in participating in the committee to contact the Utilities Director. There was only one verbal request from a citizen outside the City of Lakeport who wanted to be an observer.
The objective of the rate analysis was to adequately fund water and sewer operations, debt service and capital needs in a fair and equitable manner to the various customer classes. It was also important that the analysis provide options to the City Council for consideration, so four scenarios were developed with two options.
Scenario 1: Adequately fund Operations and Maintenance (O&M) and debt service requirements.
Scenario 2: Scenario 1 plus the adequate revenue to qualify for USDA funding and possible grants.
Scenario 3: Scenario 2 plus additional revenue to address capital projects identified in the 2008 water and sewer master plans, and begin to fund water and sewer asset depreciation.
Scenario 4: Scenario 3 plus a higher degree of funding for CIP and depreciation.
Option 1 for water and sewer maintains similar structure to what is in place now. Option 2 for water adjust tier allotments and adds a third tier for residential to encourage conservation. Option 2 for sewer spreads the burden of proposed rate increases over all Lakeport rate payers.
The concept behind the four scenarios was to have a base minimum that is needed to keep the lights on and meet debt obligations, while scenario 4 would look to bring the enterprise closer to fully funding depreciation.
Scenario 3, Option 2 for water and Scenario 2, Option 2 for sewer was selected by the City Council/Board.
Proposition 218 (282kb)
Proposition 218 Presentation (3.9MB)
Slide presentation used during the September 18, 2012 proposition 218 protest hearing.
Work Order Request Form (26kb)
Use this form when making a request for service to the Public Works Department