2016 Water Rate Study

Scotts Valley Water District strives to provide essential services to our community while keeping our rates and fees fair and affordable. Recognizing these challenges, the District conducted a comprehensive Water Rate Study.  Click Here to open the draft Water and Recycled Water Rate Study Report.
The study included four tasks:
  • Develop a Financial Model to determine potable and recycled water revenue requirements
  • Conduct a potable and recycled water cost of service and associated tiered rate analyses
  • Conduct connection and impact fee analyses
  • Develop a rate structure that fulfills community objectives while ensuring adequate revenue to support the utility‚Äôs cost requirements
On October 26, 2016, a Special Board Meeting was held to reschedule the Public Hearing from Thursday, December 8, 2016, to Monday, December 12, 2016, at 6:00 p.m. and to issue an amended Proposition 218 Notice that clarifies the Bi-Monthly Potable Water Rates for Residential Tiered Rates in the original Proposition 218 Notice.  All other rate information remains unchanged. Click here to view the Proposition 218 Notice Amendment.
 
On October 13, 2016, the Board accepted the draft Water and Recycled Water Rate Study; recommended changes to the water rate structures, water rates, fees and charges; authorized a Proposition 218 Notice of Proposed Rate Increase be issued and set a public hearing for December 8, 2016, at 6:00 p.m. to consider adopting increases to its water and recycled water rate structures, water and recycled water rates, water and recycled fees and charges.
 
On September 15, 2016, the Board held an interactive Open House / Study Session on the possible rates increases   Click here to view the presentation boards.
 
The September 8, 2016, the Board Agenda included item 5.1 Possible Rate Increase and included the presentation from August 23, 2016, for further public comment.
 
On August 23, 2016, the second Rate Workshop was held. Click here to view the presentation. At this workshop, the Board discussed and accepted the capacity fees, recycled water rates, and drought rates. The schedule for completion of the Water and Recycled Water Rate Study was determined as follows: September 8, 2016, receive public comment; September 15, 2016, Interactive Open House; and on October 13, 2016, receive the Water and Recycled Water Rate Study Report and issue a Notice of Public Hearing December 8, 2016.
 
On August 10, 2016, a Rate Workshop was held. Click here to view the presentation. The workshop included a review of the Capacity Fees, Financial Plan, Water Rate Design, Tier Definitions, Cost of Service Analysis and Rate Development, Customer Impact Analyses, Recycled Water Rates along with Drought Rates. At this meeting, the Board accepted the financial plan and tiered water rate structure and requested further calculations be done on capacity fees, recycled water rates, and drought rates.
 
At the May 12, 2016, Board of Directors (Board) meeting, the Financial Policy Framework, and Financial Model Development that included the reserve policy, debt coverage ratio, financial plan scenarios, pricing objectives and drought rates were presented. Click here to view the presentation.