BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Mid-Year Groundwater Production Charge Adjustment for Fiscal Year 2016-17 - Water Utility Enterprise.
End
RECOMMENDATION:
Recommendation
Take no action to adjust groundwater production charges for Fiscal Year (FY) 2016-17.
Body
SUMMARY:
On May 10, 2016, the District Board adopted groundwater production charges for Fiscal Year 2016-17. The District Act allows an opportunity for mid-year adjustment of water charges if it is warranted. Water Utility operating outlays are expected to be on target with the adopted budget total of $207.9 million, and revenues are expected to be on target with the adopted budget total of $232.5 million. Consequently, staff believes that an adjustment in groundwater charges is not warranted at this time.
NEXT STEPS:
Should the Board wish to consider a mid-year groundwater production charge adjustment for Fiscal Year 2016-17, one of the following two actions would need to be taken, depending on the amount of the proposed increase of the groundwater production charges:
1. If the proposed groundwater production charges are decreased or increased in an amount less than or equal to the maximum increase proposed, during the prior rate setting process for the FY 2016-17 groundwater production charges for which there was no majority protest (Established Maximum Increase), staff would need to notify all well owners by mail, and file a supplemental Protection and Augmentation of Water Supplies Report with the Clerk of the Board at least 45 days before the date the adjusted groundwater production charges are proposed to take effect, or no later than November 17, 2016. The Board must hold a public hearing at least 21 days before the date the adjusted groundwater production charges are proposed to take effect, or no later than December 6, 2016. There would be no need to undergo another Proposition 218 protest process since the adjusted groundwater production charges would be within the Established Ma...
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