City of Waterford Water Rate Study

The City of Waterford (City) provides water services to the residents and businesses of the City and the community of Hickman. The purpose of this Water Rate Study (Study) is to determine the level of funding required over the next five years to adequately fund the water systems in a safe manner; providing clean and safe potable water that meets State and Federal regulatory requirements.

This report provides an explanation and justification of the calculated water rates through fiscal year ending 2022 and it documents adherence to the law regarding setting of rates by a municipality. Per California Constitution Article 13D, water rates shall not be extended, imposed, or increased by any agency unless it meets all of the following requirements:

1. Revenues derived from the fee or charge shall not exceed the funds required to provide the property related service.
2. Revenues derived from the fee or charge shall not be used for any purpose other than that for which the fee or charge was imposed.
3. The amount of a fee or charge imposed upon any parcel or person as an incident of property ownership shall not exceed the proportional cost of the service attributable to the parcel.
4. No fee or charge may be imposed for a service unless that service is actually used by, or immediately available to, the owner of the property in question. Fees or charges based on potential or future use of a service are not permitted.
5. No fee or charge may be imposed for general governmental services including, but not limited to, police, fire, ambulance or library, services, where the service is available to the public at large in substantially the same manner as it is to property owners.

The water financial model projects revenues and expenses, and calculates rates for the next ten years; however, the City is only proposing to adopt rates for the next five years with the Proposition 218 notification and hearing.