2016 Water and Sewer Rate Study
Cloverdale's Water & Sewer Utilities
The City of Cloverdale provides water services to over 3,600 residential, commercial, industrial, and irrigation service connections. The city can provide more than 500 million gallons of water per year and maintains over 40 miles of water pipelines, 3,600 service lines, hundreds of fire hydrants, 6 storage tanks, and two pump stations. The city's water filtration plant has the capacity to produce 4.5 million gallons per day of high-quality drinking water. The city's 4 wells have a total capacity in the summer months of 2.4 million gallons per day. The city is nearing completion of about $4 million in needed water system improvements that have been funded by a low-interest loan from the United States Department of Agriculture (USDA). Additional capital projects totaling about $3.6 million have been identified to rehabilitate and upgrade the water system over the next five years.
Cloverdale also provides sewer services to approximately 3,600 customers, maintaining over 37 miles of sewer mains, and one sewer lift station. The city operates and maintains a sewer treatment plant with the capacity to treat up to 2.2 million gallons per day. Planned capital projects to improve the sewer system total about $3.6 million over the next five years. Projects are intended to replace old and deteriorated sewer pipelines as well as improve wastewater treatment processes.
Proposed Rate Changes
Reasons for the Proposed Rate Changes
Water and sewer rates were last adjusted in July 2015. Periodic rate adjustments are necessary to:
- Ensure that each customer bears a fair and proportionate share of the cost of providing services (consistent with legal requirements)
- Cover the rising cost of providing services, including operation and maintenance costs, debt service, and capital program needs
- Meet financial, regulatory, and service obligations.
Water and sewer costs include:
- Energy, fuel, and chemical costs
- Water production and treatment costs
- Wewer treatment and disposal costs
- Water distribution and sewer collection costs
- Administrative and customer service costs
- Costs related to facilities replacement, rehabilitation, and upgrade of the water and sewer systems
Central factors necessitating rate increases at this time include:
- Funding requirements for planned replacement, rehabilitation, and upgrades to water and sewer facilities.
- Debt service associated with the financing of new water supply improvements, as well as new operating costs associated with those facilities.
- Existing water system debt service covenant obligations require the city to maintain water rates at certain levels, relative to expenses.
- The current drought has resulted in a reduction in financial reserves.
- Increased costs of water and sewer operations, including energy costs, supplies, maintenance, and employee costs.
In order to determine how the rates for water and sewer service were calculated, please see the 2016 Water and Sewer Rate Study (PDF).
Public Hearing on Sewer & Water Rates
The City Council will be considering a recommendation from staff to adopt changes to the water and sewer rates at a public hearing on Tuesday, April 26, 2016, at the Cloverdale Performing Arts Center, 209 N. Cloverdale Boulevard The hearing will start at 6:30 p.m. or as soon thereafter as the matter may be heard. The new rates, if adopted, will go into effect on or after June 1, 2016.
More information about the public hearing and the proposed rates is provided in the Proposition 218 Public Hearing Notice (PDF).