BOARD AGENDA MEMORANDUM
Government Code ? 84308 Applies: Yes ? No ?
(If "YES" Complete Attachment A - Gov. Code ? 84308)
SUBJECT:
Title
Receive an Overview of the Fiscal Year 2025-26 Groundwater Production Charge, Treated Surface Water Charge, Raw Surface Water Charge, and Recycled Water Charge Rate Setting Processes; Review Assumptions for the 10-Year Water Rate Projection and Potential State Water Project Tax Levy; and Provide Feedback.
End
RECOMMENDATION:
Recommendation
A. Receive an overview of the Fiscal Year 2025-26 rate-setting processes for groundwater production charges, treated surface water charges, raw surface water charges, and recycled water charges;
B. Review assumptions for the 10-year water rate projection and potential State Water Project tax levy; and
C. Provide feedback to staff.
Body
SUMMARY:
This agenda item presents the Fiscal Year (FY) 2025-26 rate-setting process for Santa Clara Valley Water District's (Valley Water) groundwater production charges and other water charges (treated surface water, raw surface water, and recycled water). It provides an update on key issues that pertain to setting the charges that will take effect on July 1, 2025 (Attachment 1).
Each year, the Board establishes groundwater production charges for four zones of benefit (Zone W-2 in the North County and Zones W-5, W-7, and W-8 in the South County) in accordance with Section 26 of the District Act. Although not specified under the District Act, the Board also sets surface water charges, recycled water charges, treated water surcharges, and the amount of the State Water Project cost to be recouped through the State Water Project tax within the framework of the groundwater charge setting process.
The Water Utility taxing and pricing policy, Resolution 99-21 (Attachment 2), and legal requirements guide staff in the development of the overall structure for these charges.
The FY 2025-26 surface water charge-setting process will be conducted consisten...
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