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Residential Sewer Service Rates for FY 2011 -12 2 March 21, 2011 Water Pollution Control Plant Enterprise Fund did not receive the $268,109 in increased revenue for FY 2010 -11. Analysis Staff has reviewed the error and made the following findings: • The City Attorney confirmed that the City would be in compliance with Proposition 218 requirements if the City recovered the incremental increase of $1.31 per month for single family homes and $0.94 per month for multiple family dwellings for FY 2010 -11 during the FY 2011 -12 property tax billing cycle. • The Alameda County Tax Collector Auditor's Office — Tax Analysis division has approved use of a second line item to capture the FY 2010 -11 sewer rate adjustment. • If the City chooses to do nothing, then approximately $268,000 in revenues would be foregone. The Summary of Residential Sewer Service Charges (Attachment A) provides the monthly sewer rates for FY 2009 -10 (base year) and the approved rates beginning FY 2010 -11 through FY 2014 -15. Using the actual number of parcels billed for the FY 2010 -11 property tax statements, revenues are calculated for each of the fiscal years, including a breakout of the new revenues attributed to the 5% annual rate increase. The chart also depicts the proposed correction to the FY 2011 -12 tax bill. Staff recommends that next year's rates be set at the pre - approved amount and that the City bill and recoup the $15 under billing from this fiscal year. Previous City Council Action(s) • June 21, 2010 - City Council passed and adopted Resolution 2010 -069 Resolution adopting Wastewater Discharge Rates as Published in the Notice of Proposed Sewer and Wastewater Treatment Rates for fiscal years 2010 -11 through 2014 -15 City Council Committee Review and Action • March 4, 2011 - Finance Committee reviewed and approved billing residents the incremental monthly increase of $1.31 for single family homes and $0.94 for multiple family dwellings for FY 2010 -11 on the Alameda County Property Tax statement for FY 2011 -12 and recommended approval from the City Council on March 21, 2011. Summary of Public Outreach Efforts In accordance with Proposition 218 (Article XIIID of the California Constitution) the City conducted a Majority Protest process for proposed sewer service rate increases from May 5, 2010 through June 21, 2010. Fiscal Impact & BudQet Authority The incremental residential sewer service rate increase of 5% for FY 2010 -11 will generate $268,109 to the Water Pollution Control Plant Enterprise Fund (Fund 593) Attachments Attachment A — Summary of Residential Sewer Service Charges