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BARTLE WELLS ASSOCIATES 1 | Pag e City of San Leandro Draft 2024 Wastewater Rate Study 1 EXECUTIVE SUMMARY 1.1 Introduction The City retained Bartle Wells Associates to develop a long-term financial plan and 5-year rate recommendations for the wastewater enterprise. The revenues from the City’s wastewater enterprise are primarily derived from charges for services. The City must establish rates and charges adequate to fund the cost of providing services, which include costs for operations and maintenance, as well as capital improvements needed to keep the City’s utility infrastructure in a safe and reliable operating condition. The City has provided proactive financial stewardship by raising rates to keep revenues in line with the costs of providing wastewater service. Those rate increases have enabled the City to maintain its financial health. The prior rate increases strengthened the financial condition of the wastewater enterprise. However, current rates are not adequate to fund the necessary improvements. 1.2 Rate Study Objectives Key goals and objectives of this study include developing rates that: • Recover the costs of providing service, including operating, capital, and debt funding needs; • Are proportionate, fair, and equitable to all customers; • Are easy to understand and implement; • Comply with the substantive requirements of the California Constitution, Article 13D, Section 6 (which was adopted by the voters as Proposition 218 in 1996) and the general mandate of Article 10, Section 2 that prohibits the wasteful use of water; • Support the long-term operational and financial stability of the City. BWA worked closely with City staff to incorporate information and input, evaluate alternatives, and develop recommendations. This report summarizes key findings and recommendations for wastewater rates over the next five years. 1.3 Current and Proposed Wastewater Rates The following table shows the current and proposed wastewater rates.