HomeMy WebLinkAbout2025-21 - Accepting Sewer Rate Study RESOLUTION NO. 2025 - 21
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, 1)
ACCEPTING THE SEWER RATE STUDY; 2) APPROVING REVISIONS TO POLICY NO. 201,
MAINTENANCE OF RESERVE FUNDS; AND 3) SCHEDULING A PUBLIC HEARING AND
DIRECTING STAFF TO MAIL OUT A NOTICE OF PUBLIC HEARING AS REQUIRED BY
PROPOSITION 218.
WHEREAS, the City of National City ("City") provides wastewater service to more than
17,000 customers within the incorporated area of the City, and owns and operates approximately
100 miles of sewer pipeline, 2,000 manholes, and two lift stations; and
WHEREAS, the City collects and conveys wastewater flows originating from residential
and commercial properties within the City, and connects to the City of San Diego Metropolitan
Wastewater System ("Metro") to ultimately arrive at San Diego's Point Loma Treatment Plant for
treatment and disposal; and
WHEREAS, the City endeavors to operate the sewage system in a safe and efficient
manner while meeting the needs of its customers as well as all State and Federal regulatory
requirements, including, but not limited to, State Wastewater Discharge Requirements imposed
by the California State Water Resources Control Board, and others by the U.S. Environmental
Protection Agency; and
WHEREAS, on December 19, 2017, City Council adopted Ordinance No. 2017-2442
establishing sewer service charges for five years from Fiscal Year ("FY") 2018 (2017-2018)
through FY 2023, in compliance with the Proposition 218 process; and
WHEREAS, on June 6, 2023, City Council adopted Ordinance No. 2023-2521, which
amended Ordinance No. 2017-2442 and maintained the sewer service charges with no increase
for FY 2023-2024 and FY 2024-2025; and
WHEREAS, in the fall of 2024, the City retained Ardurra Group, Inc. ("Ardurra") to
complete a full Sewer Rate Study report through a review of expected revenue and expenditures
for the next five fiscal years (the "Study"); and
WHEREAS, Ardurra completed the Study and noted key elements of the system's needs,
including justifying current reserves due to many costs that will occur over the next few years,
some for which the final fiscal impact is still unknown; recognizing that inflation is affecting the
City's Capital Improvement Program (CIP) costs and that construction costs are still vastly
outpacing inflation; noting that significant CIPs have been identified through recent sewer system
modeling and investigation and that other improvements may be needed in the aging system
based on a comprehensive CCTV evaluation of the pipes in the system; that small rate increases
will help revenue keep up with inflation while a focus on CIP projects will draw down reserves;
and recommending a pass-through of wholesale costs from Metro as allowed by Government
Code section 53756; and
WHEREAS, based on cost of service and projected revenue requirements as set forth in
the Study, the City proposes new sewer service charges; and
WHEREAS, based on a monthly sewer rate comparison of other participating agencies of
the Metro system, the City's proposed sewer rates would still be among the lowest sewer rates,
even with the proposed rate increase; and
WHEREAS, the Study recommends minor changes to the City's current reserve policy,
Policy No. 201, Maintenance of Reserve Funds, to reflect modifications to reserves related to the
sewer fund based on the findings and recommendations of the Study; and
WHEREAS, pursuant to the requirements of Proposition 218, the City must hold and
provide notice of a Public Hearing to receive input as it considers a rate adjustment for sewer
service charges to City residences and businesses.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY,
CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:
Section 1: That the City Council hereby accepts the Sewer Rate Study attached to the
Agenda Report as Exhibit B.
Section 2: That the City Council hereby schedules a public hearing on May 6, 2025
and directs staff to mail out a Notice of Public Hearing, both as required by Proposition 218.
Section 3: That the City Council hereby approves revisions to Policy No. 201,
Maintenance of Reserve Funds, as set forth in Exhibit C to the Agenda Report.
Section 4: That the City Clerk shall certify to the passage and adoption of this
Resolution and enter it into the book of original Resolutions.
PASSED and ADOPTED this 4th day of r h, 2025.
Ron Morrison, Mayor
ATTEST:
C.}ho w
Shelley Chap I, MC, City lerk
APPROVED AS TO FORM:
de/1414—
Barry J. c tz, City Atto
Passed and adopted by the City Council of the City of National City, California, on
March 4, 2025 by the following vote, to-wit:
Ayes: Molina, Rodriguez, Yamane, Bush, Morrison
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Mayor of the City of National City, California
Shelley Chapel
` City Clerk of the City of National City, California
f
oF cmx BY: 11,
Shelley Chapel, M C, City Clerk
City of National City
Sewer Rate Study
January 2025
Submitted to:
City of National City
I 1243 National City Boulevard
III • I National City, CA 919levar 1
Submitted By:
- Ardurra
I9665 Chesapeake
ARDURRA San Diego, CA 921 Drive, Suite 2
3
858.842.6978
Table of Contents
Table of Contents
Table of Contents
Appendicies ii
List of Abbreviations iii
Section 1 EXECUTIVE SUMMARY 1-1
1.1 FINDINGS 1-1
1.2 RECOMMENDATIONS 1-3
Section 2 INTRODUCTION 2-1
2.1 BACKGROUND: CITY OF NATIONAL CITY 2-1
2.2 BACKGROUND: CITY OF SAN DIEGO METROPOLITAN SEWAGE
TREATMENT SYSTEM 2-2
2.3 RATE STUDY SUMMARY 2-3
Section 3 WASTEWATER RATE STUDY 3-1
3.1 OVERVIEW OF THE SEWER SERVICE CHARGE UPDATE PROCESS 3-1
List of Figures
Figure 1-1 National City Annual Sources and Uses of Funds vs Cash Reserve and Reserve
Targets 1-3
Figure 1-2 Metro Member Agencies Sewer Rates Comparison 1-5
Figure 2-1 Sewer Rate Comparison for Participating Agencies in San Diego Metro System 2-3
Figure 3-1 Overview of the Comprehensive Rate Study Analysis 3-1
Figure 3-2 Major Cost Components of City of National City's FY 2026 Revenue Requirements
3-3
Figure 3-3 National City Annual Sources and Uses of Funds vs Cash Reserve and Reserve
Targets 3-5
Figure 3-4 Components of FY 2026 Single Family Monthly Rate 3-8
Figure 3-5 Metro Member Agencies Sewer Rate Comparison 3-9
List of Tables
Table 1-1 Sewer Service Fund Long Range Plan without Revenue Adjustments (Status Quo)
1-2
Table 1-2 Recommended Annual Revenue Adjustment 1-3
Table 1-3 Sewer Service Fund Long Range Plan with Recommended Revenue Adjustment
.1-4
Table 1-4 Recommended Annual Sewer Service Charges 1-4
Table 3-1 City of National City Revenue Requirements 3-2
Table 3-2 City of National City Long Range Financial Plan 3-4
Table 3-3 Summary of Current Users and Estimated Sewer Flow 3-5
Table 3-4 Proposed Percentage Increase in rates 3-7
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Table of Contents
Table 3-5 Comparison of Current Versus Proposed Sewer User Rates 3-8
Appendices
Appendix A Rate Model
/\\
ii
ARDURRA
List of Abbreviations
AWWA American Water Works Association
BMP Best Management Practices as Prescribed by the State of California
BOD Biochemical Oxygen Demand -A Measure of Sewage Strength
CCTV Closed-Circuit Television
CIP Capital Improvement Program or Plan
EDU Equivalent Dwelling Unit
ENR-CCI Engineering News Record Construction Cost Index
FY Fiscal Year Ending June 30
FYE Fiscal Year Ending June 30
GPD Gallons per Day
HCF Hundred Cubic Feet
Metro City of San Diego Metropolitan Wastewater System
mg/I Milligrams per Liter
O&M Operations and Maintenance
PA Participating Agency in the San Diego Metro System
TSS Total Suspended Solids-A Measure of Sewage Strength
US EPA U.S. Environmental Protection Agency
iii
Section 1 -Executive Summary
Section 1
EXECUTIVE SUMMARY
This report was prepared for the City of National City (City) to document the development
of a wastewater multi-year financial plan, cost of service analysis, and rate design for the
City (rate case). The specific goals of the study were to:
• Evaluate the adequacy of projected revenues under existing sewer service
charges to meet projected revenue requirements;
• Develop a wastewater cost of service and rate model for the City covering a five-
year study (Fiscal Year 2025-2026 (FY 2026) through Fiscal Year 2029-2030 (FY2030))
period for both ongoing operations and planned capital improvements;
• Allocate the projected fiscal years revenue requirements to the various customer
classes in accordance with the proportionate share of their wastewater
contributions;
• Develop a five-year sewer service charge program that produces revenues
adequate to meet financial needs of the City for both their required funding of the
transportation & treatment of wastewater by the City of San Diego's Metropolitan
Wastewater System (Metro) including the city' share of the Pure Water Program
and the City's operations and capital needs, while recognizing customer costs of
service, and local and state legal and policy considerations such as California
Constitution Articles XIII C and D (Proposition 218), and Proposition 26; and
• Recommend appropriate reserve levels for operations and capital needs
1 .1 FINDINGS
During the course of our analysis in relation to the specific goals of the study we made the
following findings:
1. The City of National City last adjusted the sewer service charges in FY 2017.
2. Wastewater service charge revenues at current levels will not be sufficient over the
next five years to meet the increasing cost of City operating and capital expenses
without negatively affecting fund balance levels'. Table 1-1 on the next page
illustrates the projected financial picture without recommended sewer service
charge adjustments. While the fund has reserves, the costs of services are rising and
The term "fund balance"refers to the remaining amounts available after short-term liabilities (monies owed)
are paid off with the agency's available cash and other financial resources(such as receivables).The fund
balance includes reserved and unreserved components.For the purposes of this Study,this term refers to
"available cash excluding reserved monies"and the term"fund"refers to the account in which monies reside
for operatingin or capital expenditures,specifically known as the Sewer Service Fund.
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ARDURRA
Section 1 - Executive Summary
large increases to rates would be necessary in the future if incremental increases
are not enacted now. Furthermore, with the capital projects anticipated to be
constructed in the coming years, the reserve balance would fall below the target
level by FY 2030.
Table 1-1 -Sewer Service Fund Long Range Plan without Revenue Adjustments (Status
Quo)
FYE 2024 FYE 2025 VIE 2026 FYE 2027 FYE 2028 FYE 2029 FYE2030
1 Beginning Salaam $ 26,281,997.00 $ 28,756,558.35 $ 26,791,579.84 $ 22,575,621.10 $ 18,013,786.70 $ 13,353,056.22 $ 11,590,307.12
2 Revenue:
3 Interest earnings 553,250.04 $ 553,250.04 $ 553,250.04 $ 553,250.04 $ 553,250.04 $ 553,250.04 $ 553,250.04
4 User Fees 12,236,587.81 $ 12,236,587.81 $ 12,236,587.81 $ 12,236,587.81 $ 12,236,587.81 $ 12,236,587.81 $ 12,236,587.81
S Total Revenue $ 12,789,837.85 5 12,789,837.85 $ 12,789,837.85 5 12,789,837.85 $ 12,789,837.85 $ 12,789,837.85 $ 12,789,837.85
6 Operations Expenses:
7 Collection System Maintenance $ 1,788,999.71 $ 4,103,143.00 $ 3,057,516.59 $ 3,151,043.85 $ 3,247,521.07 $ 3,347,048.28 $ 3,449,729.43
t Metro and WA cost $ 6,928,614.20 $ 7,651,673.36 $ 7,948,280.00 $ 8,200,628.40 $ 8,203,047.25 $ 8,205,538.67 $ 8,378,104.83
9 Total Operations Expenses 8,717,613.91 $ 11,754,816.36 $ 11,005,796.59 $ 11,351,672.25 $ 11,450,568.32 $ 11,552,586.95 $ 11,827,834.26
10 Capital Improvement Program:
11 Collection System CIP $ 1,597,662.59 5 3,003,000.00 $ 6,000,000.00 $ 6,000,000.00 $ 6,000,000.00 $ 3,000,000.00 $ 3,000,000.00
$ -
12 Total Expenses $ 10,315,276.50 $ 14,754,816.36 $ 17,005,796.59 S 17,351,672.25 $ 17,450,568.32 $ 14,552,586.95 $ 14,827,834.26
13 Fund Balance Prior to Reserves $ 28,756,558.35 $ 26,791,579.84 $ 22,575,621.10 $ 28,013,786.70 $ 13,353,056.22 $ 11,590,307.12 $ 9,552,310.71
14 Reserve Targets:
15 Operations/Cash Flow 5 4,358,806.96 $ 5,877,408.18 $ 5,502,898.30 $ 5,675,836.13 $ 5,725,284.16 $ 5,776,293.48 $ 5,913,917.13
16 Metro Cash Flow
17 Emergency/Nat.Disaster
18 Capital Expansion Reserve 5 464,304.80 $ 601,640.16 $ 865,311.16 $ 1,259,766.26 $ 1,659,766.26 $ 2,259,766.26 $ 2,400,000.00
19 Capital Replacement Reserve $ 464,304.80 $ 601,640.16 $ 865,311.16 $ 1,259,766.26 $ 1,659,766.26 $ 2,259,766.26 $ 2,400,000.00
20 Total Recommended Reserves $ 5,287,416.56 $ 7,080,688.50 $ 7,233,520.61 $ 8,195,368.64 $ 9,044,816.68 $ 10,295,825.99 $ 10,713,917.13
21 Fund Balance Over/(Under)Target 5 23,469,141.80 $ 19,710,891.34 $ 15,342,100.49 $ 9,818,418.05 $ 4,308,239.54 $ 1,294,481.13 $ (1,161,606.42)
22(Use)/ReM+mment of Reserves $ - $ - $ $ • $ - $ • $
3. The City's formal reserve policy for their operations or capital funds should be
updated.
4. The City currently does not have a mechanism to pass through wholesale
treatment costs from the City of San Diego to customers should those costs rise
beyond projections in the cost of service model, or beyond future year projections.
5. The City has an adequate system of sewer service charges to meet regulatory and
industry standards, and their current rate schedule reflect the proper elements of a
cost of service based rate structure.Thus,we are not recommending any structural
changes to the current system of charges, but the increases are not equivalent
across customer classes.
6. The City's capacity charge for new development has not been updated in many
years. The City will be evaluating and determining how those charges should
change as a separate process in the near future.
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ARDURRA 1-2
Section 1 -Executive Summary
1 .2 RECOMMENDATIONS
The following lists Ardurra's recommendations to address the findings listed above:
1. Per the cost-of-service analysis contained within this report, Ardurra recommends City
wastewater service charges be adjusted to reflect current costs of providing sewer
service to customers within the City. This recommendation includes adjusting total
revenue from rates in FY 2026 and ending in FY 2030 as shown in Table 1-2. Based on
the cost-of-service analysis, revenue adjustments per customer class do vary.
Table 1-2-Recommended Annual Revenue Adjustment
'User' lass 2026 % 2027 % 2028 % 2029 % 2030 %
Residential:$Per Month
Single Family $ 52.72 3% $ 54.30 3% $ 55.93 3% $ 57.60 3% $ 59.33 3%
Multi-family/Condo $ 41.12 3% $ 42.35 3% $ 43.62 3% $ 44.93 3% $ 46.28 3%
Mobile Homes $ 31.53 1% $ 31.85 1% $ 32.17 1% $ 32.49 1% $ 32.81 1%
Non-Residential:$Per HCF
Commercial-Low $ 5.67 8% $ 6.12 8% $ 6.61 8% $ 7.14 8% $ 7.71 8%
Commercial-Medium Low $ 6.06 7% $ 6.48 7% $ 6.93 7% $ 7.42 7% $ 7.94 7%
Commercial-Medium $ 7.28 7% $ 7.79 7% $ 8.33 7% $ 8.91 7% $ 9.54 7%
Commercial-Medium High $ 8.43 6% $ 8.93 6% $ 9.47 6% $ 10.04 6% $ 10.64 6%
Commercial-High $ 10.42 5.5% $ 11.00 5.5% $ 11.60 5.5% $ 12.24 5.5% $ 12.91 5.5%
Should the City approve these rate adjustments, the projected financial picture of the City
will draw down reserves, while increasing user fees at a nominal rate. While FY 2030 is
nominally under target for the fund balance, a 10 year look forward has the fund only dipping
below the balance for just the one year and the City should monitor both revenue and
expenditures over the study period to assure it stays on track. This is presented in graphic
format with Figure 1-1 and all of the detailed numbers in 1-3. Figure 1-1 includes projections to
2035 showing the projections stabilize with these increases. However, any projection beyond 5
years includes many assumptions that may or may not be accurate.
Figure 1-1 National City Annual Sources and Uses of Funds vs. Cash Reserves and Reserves
Targets
National City Annual sources and Uses of Funds
s3S
S30
■
sn • ■
•
S20 IIIINSouusof Funds
■ =Minot Funds
g! ::
SS
SO
FYI 2023 EYE 2023 FYE 2024 M2027 ma0al FYI 2030 FYE2030 iY12031 MOSS 0YE2030 F1E2033 FYE2D3S
/ .
/
1-3
ARDURRA
Section 1 - Executive Summary
Table 1-3 - Sewer Service Fund Long Range Plan with Recommended Revenue Adjustments
FYE 2024 EYE 2025 EYE 2026 FYE 2027 FYE 2028 FYI 2029 FYE2030
1 Beginning Balance $ 26,281,997.00 $ 28,756,558.35 5 26,350,777.57 $ 22,455,971.02 5 18,600,319.75 $ 15,042,354.29 S 12,790,849.54
2 Revenue;
3 Interest earnings 553,250.04 S 276,625.02 $ 276,625.02 $ 276,625.02 $ 276,625.02 $ 276,625.02 S 276,625.02
4 User Fees 12,236,587.81 5 12460.548.56 S 12,834,365.02 $ 13.219,395.97 $ 13,615,977.85 5 14,024,457.18 5 14,445.190,90
5 Total Revenue $ 12.789,837.85 S 12,737,173.58 $ 13,110,990.04 5 13,496,020.99 $ 13,892,602.87 $ 14,301,082.20 $ 14.721,815.92
6 Operations Expenses:
7 Collection System Maintenance 5 1,788,999.71 5 4,103,143.00 5 3,057,516.59 $ 3,151,043.85 5 3,247,521.07 5 3,347,048.28 5 3,449,729.43
8 Metro and l PA cost $ 6,928,614.20 5 7,651,673.36 $ 7,948,280.00 S 8,200,628.40 5 8,203,047.25 5 8,205,538.67 $ 8,378,104.83
9 Total Operations Expenses 8,717,613.91 $ 11,754,816.36 S 11,005,796.59 $ 11,351.672.25 $ 11,450,568.32 $ 11,552,586.95 5 11,827,834.26
10 Capital Improvement Program:
11 Collection System CIP $ 1,597,662.59 $ 3,388,138.00 $ 6,000,000.00 5 6,000,000.00 $ 6,000,000.00 $ 5,000,000.00 5 4,000,000.00
$
12 Total Expenses 5 10,315,276.50 S 15,142.954.36 S 17,005,796.59 5 17,351672.25 $ 17,450,568.32 5 16,552,586.95 $ 15,827,834.26
13 Fund Balance Prior to Reserves $ 28,156,558.35 $ 26,350,777.57 5 22,455,971.02 5 18,600,319.75 S 15,042,354.29 $ 12,790,849.54 5 11,684,831.20
14 Reserve Targets:
15 Operations/Cash Flow $ 4,358,806.96 $ 5,877,408.18 $ 5,502,898.30 5 5,675,836.13 $ 5,725,284.16 $ 5,776,293.48 $ 5,913,917.13
16 Metro Cash Flow $ 850,002.00 $ 850,003.00 $ 850,004.00 5 850,005.00 $ 850,006.00 $ 850,007.00 $ 850,008.00
17 Emergency/Nat.Disaster $ 1.547,291.48 $ 2,271,443.15 S 2,550,869.49 5 2,602,750.84 5 2,617,585.25 $ 2,482,888.04 $ 2,374,175.14
18 Capital Expansion Reserve $ 1,223,658.78 $ 1,246,054.86 $ 1,2133,436.50 $ 1,321,939.60 $ 1,361,597.78 $ 1,402,445.72 5 1,444,519.09
19 Capital Replacement Reserve $ 1,223,658.78 5 1,246,054.86 5 1,283,436.50 5 1,321,939.60 $ 1,361,597.78 $ 1,402,445.72 $ 1,444,519.09
20 Total Recommended Reserves 5 9,203,417.99 5 11490.964.05 $ 11 470,644.79 5 11 772,471.16 $ 11,916,070.98 5 11,914,07995 $ 12,027,13845
21 Fund Balance Over/(Under)Target $ 19,553,140.36 $ 14,859,813-52 5 10,985,326.23 5 6,827,848.60 5 3,126,283.31 $ 876,769.59 5 (342,307.25)
22(Use)/Replacement of Reserves $ - $ (2,405,780.78) $ (3,894,806.55) $ (3,855,651.26) $ (3,557,965.46) $ (2,251,504.75) $ (1,106,018.35)
2. Based on cost of service and projected revenue requirements the City should adopt
the following sewer service charges. Table 1-4 shows the proposed sewer charges for
FY 2026 through FY 2030 and compares them to existing charges.
Table 1-4: Recommended Annual Sewer Service Charges
EXISTING
2024- 2025- 2027- 2028- 2029-
2025 2026 2026-2027 2028 2029 2030
Residential: $ Per Month
Single Family $ 51.18 $ 52.72 $ 54.30 $ 55.93 $ 57.60 $ 59.33
Multi-family/Condo $ 39.92 $ 41.12 $ 42.35 $ 43.62 $ 44.93 $ 46.28
Mobile Homes $ 31.22 $ 31.53 $ 31.85 $ 32.17 $ 32.49 $ 32.81
Non-Residential: $ Per HCF
Commercial - Low $ 5.25 $ 5.67 $ 6.12 $ 6.61 $ 7.14 $ 7.71
Commercial - Medium Low $ 5.66 $ 6.06 $ 6.48 $ 6.93 $ 7.42 $ 7.94
Commercial - Medium $ 6.80 $ 7.28 $ 7.79 $ 8.33 $ 8.91 $ 9.54
Commercial - Medium High $ 7.95 $ 8.43 $ 8.93 $ 9.47 $ 10.04 $ 10.64
Commercial - High $ 9.88 $ 10.42 $ 11.00 $ 11.60 $ 12.24 $ 12.91
°Commercial properties have an annual minimum charge which is equivalent to the mobile home
annual charge. Duplexes or a single ADU with a single family on a property are charged one single
family rate and one multi-family rate.
i 4 ARDURRA
Section 1 -Executive Summary
Figure 1-2 summarizes all San Diego Metro Member Agencies comparative sewer user
rates based on 7 HCF of water usage/sewer flow and a residential monthly base fee. It
should be noted that the rates shown are those effective January 1, 2025, based upon
readily available information.The figure also includes the City's current monthly rate as
well as the proposed FY 2026 rate of $52.72 per EDU per month. The City's first proposed
rate adjustment will not begin until July 1, 2025. Many agencies are in the process of
updating their current rate cases. Even with the proposed 5-year rate adjustments
National City will still enjoy some of the lowest rates among the users of the San Diego
Metro System. The proposed FY 2026 single family rate will be as low as $52.72 which is 15%
lower than the existing (FY 2025) average Metro member agency rate of $62.21.
Figure 1-2 Metro Member Agencies Sewer Rates Comparison
$140
- Monthly Sewer Rate Comparison for Participating Agencies in San
$120 0 Diego Metro System
Based on 7 units of water and 3/4 inch Residential meter size
Iwo for sewer billings established by January 2025
$80
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• Flat Sewer Rate Notes:
• Water Consumption Based Sewer Rate 'Coronado,City Rate update is underway
O National City Rate "Monthly sewer rates are sourced from publicly
available documents on each municipalities website.
3. The City's reserve policy generally protects the financial integrity of their sewer service
fund.The following minor changes are recommended (shown below as strike-through
for deletion and underlined for additions):
Sewer Service Fund Operations/Cash Flow Reserve:Between 25&At least 50%of a single
year's budgeted Sewer Service Fund Operating Expenditures.
Sewer Service Fund Metro Cash Flow Reserve: an amount equal to the City's estimated
portion of the projected cash needs for capital costs of the San Diego Metropolitan
Sewerage's Wastewater Treatment Program.This amount is assumed to be $850,000 for
fiscal year 2025-26 through fiscal year 2029-30
/ /
' 5 ARDURRA
Section 1 - Executive Summary
Sewer Service Fund Emergency/Natural Disaster Reserve: an amount equal to a minimum
of 15%of a single year's budgeted Sewer Service Fund Operating expenditures, including
both operational and capital improvement program costs.
Sewer Service Fund Capital Replacement Reserve: an amount equal to between 10% &
15% of a single year's budgeted Sewer Service Fund operating expenditures user fees.
Sewer Service Fund Capital Expansion Reserve: an amount equal to between 10% &
15%of a single year's budgeted Sewer Service Fund operating expendituroi,user
fees.
4. Ardurra recommends that the City provide a provision to give the City the ability to
pass through City of San Diego wholesale transportation, treatment, and disposal
costs to customers should those costs rise beyond projections in the cost-of-service
model or beyond what the City notices to customers at time of rate implementation.
This action would obviate the need for the City to conduct another Proposition 218
mailed 45-day notice and public hearing requirement. The authority to provide this
provision is located in California Government Code Section 53756. Specifically, the
Government Code reads as follows:
An agency providing water, wastewater, sewer, or refuse collection service may adopt a
schedule of fees or charges authorizing automatic adjustments that pass-through
increases in wholesale charges for water, sewage treatment, or wastewater treatment or
adjustments for inflation, if it complies with all of the following:
(a) It adopts the schedule of fees or charges for a property-related service for a period not
to exceed five years pursuant to Section 53755.
(b) The schedule of fees or charges may include a schedule of adjustments, including a
clearly defined formula for adjusting for inflation. Any inflation adjustment to a fee or
charge for a property-related service shall not exceed the cost of providing that service.
(c) The schedule of fees or charges for an agency that purchases wholesale water,
sewage treatment, or wastewater treatment from a public agency may provide for
automatic adjustments that pass through the adopted increases or decreases in the
wholesale charges for water, sewage treatment, or wastewater treatment established by
the other agency
/ /
1-6 ARDURRA
Section 2-Introduction
Section 2
INTRODUCTION
This study (Study) takes a long-range planning approach to establishing wastewater
service charges and fees. A discussion of the long-range plan and recommended sewer
charge and fee adjustments are included in the following section of this report. The
analyses contained herein include operation and maintenance (O&M) costs, City of San
Diego Metropolitan Wastewater Department (Metro) transportation, treatment and
disposal costs, reserve levels, and identified capital improvement projects (CIP). To that
end, the Study examines the revenues generated by the City and makes
recommendations for revenue adjustments, as needed. The City retained NV5 in 2017 to
update a wastewater cost of service study previously developed by PBS&J in FY 2003. Ms.
Carmen Kasner supported this effort and in FY2023 she completed a minor update to the
study to confirm that holding the rates flat for two years through FY2025 was appropriate.
For purposes of this report, the study period is the fiscal years beginning July 1, 2025, and
ending June 30, 2030. Unless otherwise noted, references in this report to a specific year
are for the City's fiscal year ending June 30.To avoid confusion between calendar and
fiscal years, the term FY refers to the year beginning July 1 and ending June 30. Presented
herein are the results of a Study of the City's projected revenues, revenue requirements,
cost of service, and rates for service.
2.1 BACKGROUND: CITY OF NATIONAL CITY
The City provides wastewater service to approximately 17,000 customers within the
incorporated area of the City of National City. It owns and operates approximately 100
miles of pipeline, 2,000 manholes, and 2 lift stations. The collection, treatment, and
disposal of wastewater in an environmentally safe and efficient manner promote healthy
communities and increase the quality of life for local residents.
The City is responsible for collecting wastewater flows originating within the City and
conveying the collected flows to the City of San Diego's Point Loma Treatment Plant for
treatment and disposal. The City's primary goals are operating the sewerage system
safely and efficiently while meeting the needs of their customers.
To meet these goals, the City undertakes routine cleaning, inspections, and repairs and
rehabilitates its facilities as needed. The wastewater system operates in an area subject to
strict regulatory oversight by Federal and State agencies such as the U.S. Environmental
Protection Agency (US EPA) and the California State Water Resources Control Board
(SWRCB). The City must comply with a multitude of laws including, but not limited to, State
Wastewater Discharge Requirements (WDRs). Complying with these regulations and
resulting mandates contributes to a large share of the cost burden on the City's system.
2-1
ARDURRA
Section 2- Introduction
The City completed a Wastewater Master Plan in 2017 which will be updated in the near
future, this plan identified numerous projects to upgrade the system. Recently the City has
begun a more aggressive CCTV program to identify improvements. Based upon early
results of about 10% of the system, numerous improvements are necessary. Due to these
identified issues and significant increases in construction costs an average of$6 million per
year for the next 3 years and then $5 million and $4 million for the following years are
proposed for required rehabilitation and expansion projects. These annual projected
capital improvement costs (CIP) are incorporated into this Study and form the basis for the
City's annual capital requirements.
2.2 BACKGROUND: CITY OF SAN DIEGO METROPOLITAN SEWAGE
TREATMENT SYSTEM
The City of National City is one of thirteen participating agencies (PAs) who send their
wastewater to the City of San Diego Metropolitan Sewage Treatment System (Metro) for
treatment and disposal. Along with the other PAs the City entered into the Regional
Disposal Agreement with San Diego in 1998. Due to positive financial negotiations with San
Diego since that time and especially the establishment of the "Administrative Protocol on
Allocation of Operating Reserves and Debt Service Coverage" during FY 2010 the City has
enjoyed stable annual billings for the last 8 years from the City of San Diego. However, in
2015 the City of San Diego initiated a multi-billion-dollar public works project entitled the
Pure Water Program which will provide the double benefit of "secondary equivalency" to
San Diego's wastewater customers including National City as well as a significant new
potable water supply for the City of San Diego.
This resulted in a Major amendment to the Regional Disposal agreement approved in 2018
but that amendment left many elements to further discussion and negotiations. Since that
time, the City is well underway with construction of their Pure Water Program and the East
County Joint Powers Authority has begun construction on their Advanced Purified Water
Project. For the past 6 years, discussions and negotiations on those open-ended items has
progressed and the City of San Diego and Metro members appear to be coming close to
a final Draft of a Second Amended and Restated Agreement.
A five-year projection of Metro costs for the City were received from the City of San Diego
in December of 2024 but do not include some uncertainties because there are still many
unknown final costs. The projections received do not include costs for the spills in the
system during rain events in the past two winters, the final costs for upgrades to the large
Metro Pumpstations 1&2 that were conditions of a spill from four years ago, the final rate
methodology for the Second Amended and Restated Metro Agreement (SARA) that is still
being negotiated, Costs for Pure Water Phase II, nor do they include final audited costs for
the past three Fiscal Years. The City of San Diego recommends that each agency have a
pass-through provision in their rates due to these uncertainties at the moment.
/ \/
2-2
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Section 2- Introduction
2.3 RATE STUDY SUMMARY
The City of National City customers enjoy some of the lowest sewer service charges in the
Metro System as shown in Figure 2-1 and have for many years. The City last adjusted
sewer service charges in FY 2023 and held them flat for the past two years. the FY 2025
charge is 15% lower than the average Metro PA rate of $62.21 per month. However, the
City's increased internal CIP requirements and the costs associated with Metro require
that the City adjust their sewer rates for the next five years.
The rate study assumed 3% inflation for all expenses except Metro for the rate study
period.
Figure 2-1 Sewer Rate Comparison for Participating Agencies in San Diego Metro System
$140
Monthly Sewer Rate Comparison for Participating Agencies in San
$120 Diego Metro System
Based on 7 units of water and 3/4 inch Residential meter size
$100 for sewer billings established by January 2025
SOO
4140.
4/101.
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$ Water Consumption Based Sewer Rate 'Coronado,City Rate update is underway
Q National City Rate 'Monthly sewer rates are sourced from publicly
available documents on each municipalities website.
2-3
ARDURRA
Section 3-Wastewater Rate Study
Section 3
WASTEWATER RATE STUDY
3.1 OVERVIEW OF THE SEWER SERVICE CHARGE UPDATE PROCESS
A comprehensive rate study typically utilizes three interrelated analyses to address the
adequacy and equity of the utility's rates. These three analyses are a revenue
requirement analysis, a cost-of-service analysis, and a rate design analysis. The process is
illustrated in Figure 3 -1.
Figure 3-1 Overview of the Comprehensive Rate Study Analysis
Compares the sources of funds(revenue)to
Revenue Requirement Analysis the expenses of the utility to determine the
overall rate adjustment required
Allocates the revenue requirements to the
Cost of Service Analysis various customer classes of service in a"fair
and equitable manner
Considers both the level and structure of the
Rate Design Analysis rate design to collect the target level of
service
The City's sewer utility was evaluated on a "stand-alone" basis.That is, no subsidies
between the utility or other City funds occur. By viewing the utility on a stand-alone basis,
the need to adequately fund both operations and maintenance (O&M) and capital
infrastructure (CIP) must be balanced against the rate impacts on utility customers.
A detailed and comprehensive process was used to review the City's rates. As a part of
the rate study process a number of on-site project meeting and conference calls were
used to review the results with City staff. From this process, final proposed rates were
developed and their development is reviewed in this section of the report. Following is a
summary of each step in the process.
/ \/
3 'ARDURRA
Section 3-Wastewater Rate Study
Revenue Requirement Analysis: The revenue requirement analysis revealed that several
significant financial changes have occurred since the City's 2023 update holding rates
flat.The significant changes are:
• The current CIP needs of the City have increased due to construction cost
increases, additional CCTV and inspection. The age of the city's system and some
densification requiring some upsizing. The Rate study has updated CIP costs to an
average of $6 million per year for the next 3 years and then $5 million and $4 million
for the following years. This will allow the City to draw down some of the fund
reserves and make significant progress on required rehabilitation and expansion
projects that are causing a higher risk of spills and more operational costs. These
annual projected capital improvement costs (CIP) are incorporated into this Study
and form the basis for the City's annual capital requirements.These costs were not
included in the City's FY 2025 adopted budget.
• The construction phase of the City of San Diego's Pure Water Program is nearly done
and during FY 2025 to FY 2030 additional Metro costs are anticipated for Phase 1 of this
program due to Audit true ups and the previously discussed SARA that is being
negotiated and other Metro system issues. The City's portion of the Metro budget is
currently 7.4% and while the SARA draft methodology does not increase the City's
percentage, there is still uncertainties with flows and impacts from the East county JPA
project.
The largest component of the City of National City's revenue requirement is the costs
associated with transportation, treatment, and disposal of the City's wastewater by
the Metro facilities, an aggressive CIP is a close second. A summary of the projected
City collection system O&M and CIP, plus San Diego Metro expenses to be included in
the City's rate case, are included on Table 3-1.
Table 3-1: City of National City Revenue Requirements
Table 3-1
FY2026 FY2027 FY2028 FY2029 FY2030
Personnel Services $ 1,798,307 $ 1,852,276 $ 1,907,865 $ 1,965,124 $ 2,024,103
Maintenance&Operations $ 372,064 $ 383,226 $ 394,722 $ 406,564 $ 418,761
Metro Treatment&Transportation $ 7,948,280 $ 8,200,628 $ 8,203,047 $ 8,205,539 $ 8,378,105
Administrative $ 887,146 $ 915,543 $ 944,933 $ 975,360 $ 1,006,866
Collection System CIP $ 6,000,000 $ 6,000,000 $ 6,000,000 $ 5,000,000 $ 4,000,000
Total $17,005,797 $17,351,672 $17,450,568 $ 16,552,587 $ 15,827,834
/\\./ 3-2
ARDURRA
Section 3-Wastewater Rate Study
Figure 3-2 shows the percentage of each of the major cost centers in the City's rate case.
As noted, the largest component of National City's revenue requirements (47%) will be
paid directly to the City of San Diego.
Figure 3-2 Major Cost Components of City of National City's FY 2026 Revenue
Requirements
2%
■Personnel Services
11%
■Maintenance &Operations
35%
•Metro Treatment&
Transportation
■Administrative
47%
•Collection System CIP
5%
As a part of establishing the revenue requirement for the City's rate case City staff
requested Ardurra consultant's guidance in reviewing their reserve policy to financially
protect the City's sewer service fund. At the end of FY 2024 (June 30, 2024) the City's
sewer service fund showed a reserve cash fund balance of$26.3 million. Ardurra
consultants reviewed with City staff industry standard guidelines in establishing formal
reserve policies as well as the City's needs for financial stability and potential exposures to
external forces which could require unplanned O&M or capital expenditures. The City's
reserve policy is solid as it was updated in a prior rate study, but the following minor
updates are suggested (shown below as strike-through for deletion and underlined for
additions).
Sewer Service Fund Operations/Cash Flow Reserve:Between 25&At least 50%of a single
year's budgeted Sewer Service Fund Operating Expenditures.
Sewer Service Fund Metro Cash Flow Reserve: an amount equal to the City's estimated
portion of the projected cash needs for capital costs of the San Diego Metropolitan
Sewerage's Wastewater Treatment Program.This amount is assumed to be $850,000 for
fiscal year 2025-26 through fiscal year 2029-30
/V 3-3
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Section 3-Wastewater Rate Study
Sewer Service Fund Emergency/Natural Disaster Reserve: an amount equal to a minimum
of 15% of a single year's budgeted Sewer Service Fund Operating expenditures, including
both operational and capital improvement program costs.
Sewer Service Fund Capital Replacement Reserve: an amount equal to between 10% &
15% of a single year's budgeted Sewer Service Fund operating expenditures user fees.
Sewer Service Fund Capital Expansion Reserve: an amount equal to between 10% &
15% of a single year's budgeted Sewer Service Fund operating expenditures user
fees.
The final step in determining the revenue requirement for the City's rate case was to
overlay the projected expenditures for the next five years as summarized in Table 3-1 and
the recommended reserve policy. Table 3-2 creates a long-range plan showing the use of
reserves to minimize the annual rate adjustment to per year stating in FY 2026 through FY
2030. The use/replacement of the City's reserves is shown on Line 22. While the FYE2030
shows the fund balance slightly under the target, that target is with the maximum
percentages from the reserve policy and thus are still well within the appropriate reserve
amount. During the next 5 years there will be more clarity available from Metro and from
the City's CCTV and planning efforts.
A detailed copy of the five-year revenue requirement is included in Appendix A to this
report.
Table 3-2: City of National City Long Range Financial Plan
FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 FYE2030
Beginning Balance 5 26,281,997.00 $ 28,756,558.35 $ 26,350,777.57 5 22,455,971.02 $ 18,603,319.75 $ 15,042,354.29 $ 12,790,849.54
Revenue.
interest earnings 553,250.04 5 276,625.02 $ 276,625.02 $ 276,625.02 5 276,625.02 5 276,625.02 $ 276,625.02
User Fees 12,236,587.81 $ 12,460,548.56 $ 12,834,365.02 $ 13,219,395.97 $ 13,615,977.85 5 14,024,457.18 $ 14,445,190.90
Total Revenue S 12,789,837.85 5 12,737,173.58 5 13,110,990.04 $ 13,496,020.99 5 13,892,602.87 $ 14,301,082.20 $ 14,721,815.92
Operations Expenses:
Collection System Maintenance $ 1,788,999.71 $ 4,103,143.00 S 3,057,516.59 $ 3,151,043.85 S 3,247,521.07 $ 3,347,048.28 $ 3,449,729.43
Metro and JPA cost $ 6,928,614.20 $ 7,651,673.36 5 7,948,280.00 $ 8,200,628.40 $ 8,203,047.25 $ 8,205,538.67 $ 8,378,104.83
Total Operations Expenses 8,717,613.91 S 11,754,816.36 $ 11,005,796.59 5 11,351,672.25 5 11,450,568.32 $ 11,552,586.95 5 11,827,834.26
Capital Improvement Program,
Collection System OP 5 1,597,661.59 5 3,388,138.00 5 6,000,000.00 5 6,000,000.00 $ 6,000,000.00 $ 5,000,000.00 $ 4000,000.00
Total Expenses 5 10,315,276.50 $ 15,142,954.36 5 17,005,796.59 $ 17,351,672.25 $ 17,450,568.32 5 16,552,586.95 5 15,827,834.26
Fund Balance Prior to Reserves $ 28,756,558.35 $ 26,350,777.57 $ 22,455,971.02 $ 18,600,319.75 $ 15,042,354.29 S 12,790,849.54 $ 11,684,831.20
Reserve Targets:
Operations/Cash Flow $ 4,358,806.96 $ 5,877,408.18 $ 5,502,898.30 $ 5,675,836.13 $ 5,725,284.16 5 5,776,293.48 $ 5,913,917.13
Metro Cash Flow $ 850,002.00 $ 850,003.00 $ 850,004.00 $ 850,005.00 $ 850,006.00 $ 850,007.00 $ 850,008.00
Emergency/Nat.Disaster $ 1,547,291.48 5 2,271,443.15 5 2,550,869.49 $ 2,602,750.84 5 2,617,585.25 $ 2,482,888.04 $ 2,374,175.14
Capital Expansion Reserve $ 1,223,658.78 $ 1,246,054.86 5 1,283,436.50 $ 1,321,939.60 5 1,361,597.78 5 1,402,445.72 $ 1,444,519.09
Capital Replacement Reserve S 1,223,658.78 $ 1,246,054.86 5 1,283,436.50 $ 1,321,939.60 $ 1,361,597.78 $ 1,402,445.72 $ 1,444,519.09
Total Recommended Reserves $ 9,203,417.99 $ 11 490,964.05 $ 11,470,644.79 5 11,772,471.16 $ 11,916,070.98 $ 11,914,079.95 5 12,027,138.45
Fund Balance Over/(Under)Target S 19,553,140.36 S 14,859,813.52 5 10,985,326.23 $ 6,827,848.60 $ 3,126,28331 $ 876,769.59 $ (342,307.25)
(Use)/Replacement of Reserves $ - $ (2,405,7110.78) $ (3,894,806.55) $ 13,855,651.26) $ (3,557,965.46) $ (2,251,504.75) $ (1,106,018.35)
3-4
ARDURRA
Section 3-Wastewater Rate Study
Ardurra did look at a 10 year projection of rates and increases and assumed a similar
increase of a nominal 3% with expenses increasing at a similar rates and it shows that the
rate increase shown here will stabilize the expenditures into the future unless significant
additional Capital projects are identified or inflation and other cost factors change as
well. Any projection past 5 years includes many assumptions that may or may not be
accurate.
Figure 3-3 National City Annual Sources and Uses of Funds vs. Cash Reserves and Reserves
Targets
National City Annual Sources and Uses of Funds
Sa
S30
■
1 S2s ■
■
i Po MISoeees of Funds
■
y a�Usesd Feuds
pi vs S1S - �R x esers ix3eE
■ Cash Reserves
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SS
SO
FYI2024 FYE 1025 FYI 2026 FYE Ion EYE IOL EYE1am FYE7on FYE2031 FYE2032 FYE3033 FYI2034 FYE2035
Cost of Service Analysis: The cost-of-service analysis revealed that several major changes
have occurred in users and use since the City's 2017 rate study and subsequently
adopted sewer user rates. The significant changes are:
• As with other communities in San Diego County and Southern California the City's
citizens and businesses have decreased their water usage significantly since FY 2017.
This was especially the case during COVID when many businesses were closed. This
has decreased revenues from the commercial and industrial users of the City who
are billed on their annual water usage.
• The City uses an equivalent dwelling unit (EDU) system of rates for their residential
users. Historically the City has used 240 gallons per day (gpd) for a single-family
residential user for billing purposes. Multi-family/condo units are considered to be 0.8
EDU and mobile home units 0.6 EDUs. These EDUs are consistent with industry
standards for EDU based user systems. However, due to the decreased water use by
residential as well as commercial/industrial users the gallons per EDU have
decreased to an estimated 220 gpd. 220 gpd is consistent with the other
Participating Agencies wastewater generation rate (in gpd) for EDUs
The City's rate model was updated with the number of residential and commercial/
industrial users used for billing purposes on the FY 2025 tax roll. As noted above the gallons
�V 3-5
ARDURRA
Section 3-Wastewater Rate Study
for residential EDUs were revised to 220 gpd per EDU and the most recent water usage for
commercial/industrial users was included.
Table 3-3 summarizes the current number of City users and their projected sewer flows
based on the current tax roll water use data for FY 2025.
Table 3-3: Summary of Current Users and Estimated Sewer Flow
Units of Service and Loadings FLOW: COD: SS:
(A) (B) (C) (D) (E) (F) (G)
No.of Active Annual Annual COD
User Group Customers Billing Flow Billing Flow Flow COD User Load SS per User Annual Load
(MG/Year)
(MGD) (HCF) (MG/L) (LBS/YR) (MG/L) (LBS/YR)
Single Family 5,9694 0.9546 541,160.1 348.43 200 581,170 200 581,170
Multi-family/Condo 8,29Sr 2.2238 1,085,130.9 811.68 200 1,353,834 200 1,353,834
Mobile Homes 365 0.0382 18,651.0 13.95 200 23,269 200 23,269
Subtotal-Residential 14,627, 3.2166 1,644,942 1,174.06 1,958,274 1,958,274
Commercial-Low 1,793' 0.5038 245,846.5T 183.89 200 306,724 200 306,724
Commercial-Medium Low 925' 0.1427 69,657.3 52.10 200 86,906 300 130,359
Commercial-Medium 4 Pr 0.0290 14,139.0 10.58 400 35,280 400 35,280
Commercial-Medium High 19 0.0176 8,602.2 6.43 600 32,197 500 26,831
Commercial-High 110' 0.1592 77,676.0 58.10 680 329,495 900 436,097
Subtotal Non-Residential 2,851 0.8524 415,921 311.11 I 790,602 935,291
TOTAL 17,478 4.0690 2,060,863 1,485.17 2,748,876 2,893,564
Rate Design Analysis: As part of the rate setting process a routine review of an agency's
sewer service charge rate structure is performed. This is done to assure that the agency's
rate structure meets industry standards as well as complies with local, State, and Federal
guidelines and regulations.
The City of National City first established their current rate structure in the mid-1990's and it
was submitted to the State Water Resources Control Board of the State of California
(SWRCB) and the US EPA.The rate structure and the cost allocations upon which it is
based were approved by both the SWRCB and the US EPA.These principles still meet
industry standards today and follows Best Management Practices (BMP's) established by
the State of California, and thus there are no recommended changes to the existing rate
structure.
The City uses a combination of EDU's for residential users and water based rates for
commercial/industrial users. Single family residential users are considered to be 1 EDU, and
multi-family/condo users 0.8 EDU, and mobile home users 0.6 EDU. Commercial/industrial
users are grouped based on their estimated sewage strengths into five classes of users.
Each year 90%of the prior year's water usage per commercial/industrial customer is used
to determine the upcoming year's sewer service charge (Return to Sewer percentage).
There are a few customers with different Return to Sewer percentages based upon a case
by case situation which includes a field inspection and engineering review of the situation.
/V 3-6
ARDURRA
Section 3-Wastewater Rate Study
The model is using reserves to fund a large part of the CIP and thus the strength based
analysis does not completely reflect the actual costs year over year by customer class.
However, based upon treatment costs in FY2030, having all customer classes having the
same percentage increase would place an unfair burden on SFR customers.The cost for
treatment for commercial customers must be increased a higher percentage to keep the
proportions correct.
All classes of users will continue to be billed their annual sewer service charge on the
County of San Diego tax roll based on either their EDU classification or their annual water
usage and sewage strength category. Table 3-4 compares the current FYE 2025 sewer
rates with the proposed FYE 2026 through FYE 2030 of the proposed rate case. The entire
output from the rate model showing all steps in the rate case is contained in Appendix A
to this Study. Individual years are not revised and reduced or increased exactly because
of the use of reserves and rates are never reduced. The goal was to keep increasing the
commercial rates with the proportionality correct in FY2030. The final FY2030 rates were
within 4%of the calculated proportionality for all commercial classes.
Table 3-4: Proposed Percentage Increases in Rates
Recommended Percentage Rate Revenue Adjustments
Fiscal Year FYE2026 FYE2027 FYE2028 FYE2029 FYE2030
Effective Month July July July July July
Residential:
Single Family 3% 3% 3% 3% 3%
Multi-family/Condo 3% 3% 3% 3% 3%
Mobile Homes 1% 1% 1% 1% 1%
Non-Residential:
Commercial -Low 8% 8% 8% 8% 8%
Commercial - Medium Low 7% 7% 7% 7% 7%
Commercial - Medium 7% 7% 7% 7% 7%
Commercial - Medium High 6% 6% 6% 6% 6%
Commercial -High 5.5% 5.5% 5.5% 5.5% 5.5%
3-7
ARDURRA
Section 3-Wastewater Rate Study
Table 3-5: Comparison of Current Versus Proposed Sewer User Rates
EXISTING
2024- 2025- 2027- 2028- 2029-
2025 2026 2026-2027 2028 2029 2030
Residential:$ Per Month
Single Family $ 51.18 $ 52.72 $ 54.30 $ 55.93 $ 57.60 $ 59.33
Multi-family/Condo $ 39.92 $ 41.12 $ 42.35 $ 43.62 $ 44.93 $ 46.28
Mobile Homes $ 31.22 $ 31.53 $ 31.85 $ 32.17 $ 32.49 $ 32.81
Non-Residential: $ Per HCF
Commercial -Low $ 5.25 $ 5.67 $ 6.12 $ 6.61 $ 7.14 $ 7.71
Commercial -Medium Low $ 5.66 $ 6.06 $ 6.48 $ 6.93 $ 7.42 $ 7.94
Commercial-Medium $ 6.80 $ 7.28 $ 7.79 $ 8.33 $ 8.91 $ 9.54
Commercial-Medium High $ 7.95 $ 8.43 $ 8.93 $ 9.47 $ 10.04 $ 10.64
Commercial -High $ 9.88 $ 10.42 $ 11.00 $ 11.60 $ 12.24 $ 12.91
'Commercial properties have an annual minimum charge which is equivalent to the mobile home
annual charge. Duplexes or a single ADU with a single family on a property are charged one single
family rate and one multi-family rate.
As discussed earlier in this report, the majority of the revenue requirement recovered by
the City's sewer service charges go to pay for cost associated with charge from San
Diego Metro. Figure 3-4 summarizes the major components of the proposed FY 2026
monthly single-family sewer service charge of$52.72 per EDU. This figure also shows the
use of City reserves to cover City CIP costs:
Figure 3-4 Components of FY 2026 Single Family Monthly Rate
Components of FY 2026 Single Family Monthly
S70.00 Rate
$60.00
so0��
NC Collection
540.00
S30.00
520.00
SIO 00
5-
Cost of Service Actual Single Family Bill
/V 3-8
ARDURRA
Section 3-Wastewater Rate Study
Figure 3-5 summarizes all San Diego Metro Member Agencies comparative sewer user
rates based on 7 HCF of water usage/sewer flow and a residential monthly base fee. It
should be noted that the rates shown are those effective January 1, 2025 based upon
readily available information.The figure also includes the City's current monthly rate as
well as the proposed FY 2026 rate of$52.72 per EDU per month. The City's first proposed
rate adjustment will not begin until July 1, 2025. Many agencies are in the process of
updating their current rate cases. Even with the proposed 5-year rate adjustments
National City will still enjoy some of the lowest rates among the users of the San Diego
Metro System. The proposed FY 2026 single family rate will be as low as$52.72 which is 15%
lower than the existing (FY 2025) average Metro member agency rate of $62.21.
Figure 3-5 Metro Member Agencies Sewer Rate Comparison
$140
— Monthly Sewer Rate Comparison for Participating Agencies in San
$120_ Diego Metro System
Based on 7 units of water and 3/4 inch Residential meter size
$100 for sewer billings established by January 2025
$80
y `
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• Fiat Sewer Rate Notes:
• Water Consumption Based Sewer Rate *Coronado,City Rate update is underway
O National City Rate *Monthly sewer rates are sourced from publicly
available documents on each municipalities website.
/\/ 3-9
ARDURRA
APPENDIX A - RATE MODEL
• Wastewater Operations & Maintenance Budget
• Budget Summary
• Step 1 -Customer Summary and Estimated Flows
• Step 2-Determination of Unit Costs
• Step 3-Sewer User Rate Calculations by Fund and Cost
/ /
ARDURRA
City of National City
Wastewater Rate Study
Draft Report-January 2025
City of National City
Wastewater Operations & Maintenance Budget
FY24 FY25 FY26 FY27 FY2
ACCOUNT-MUNIS Unaudited Actual Proposed
125-416-029 ENGINEERING
125-416-029-100 SALARIES
125-85-31-31100-6005- Hourly Wages - - - -
125-85-31-31100-6001- FULL-TIME SALARIES 313,803.94 431,795.00 444,748.85 458,091.32 471
125-85-31-31100-6102- OVERTIME 4,909.46 - - -
125-85-31-31100-6110- ALLOWANCES & STIPENDS 1,328.40 1,440.00 1,483.20 1,527.70 1
125-85-31-31100-6120- DIFFERENTIAL PAY 2,993.73 3,415.00 3,517.45 3,622.97 3
125-85-31-31100-6140- WORKERS' COMPENSATION 11,880.22 44,596.00 45,933.88 47,311.90 48
125-85-31-31100-6150- HEALTH INSURANCE 34,747.51 48,300.00 49,749.00 51,241.47 52
125-85-31-31100-6151- LTD INSURANCE 486.81 878.00 904.34 931.47
125-85-31-31100-6160- RETIREMENT PLAN CHARGES 71,451.09 106,001.00 109,181.03 112,456.46 115
125-85-31-31100-6161- MEDICARE 4,838.55 6,261.00 6,448.83 6,642.29 6
125-85-31-31100-6199- PERSONNEL COMPENSATION 12,090.95 2,000.00 2,060.00 2,121.80 2
125-416-029-200 MAINTENANCE & OPERATIONS
125-85-31-31100-7226- TRAINING, TRAVEL & SUBSISTENCE - - - -
125-85-31-31100-7299- CONTRACT SERVICES 36,126.34 85,000.00 87,550.00 90,176.50 92
125-416-052 PUBLIC WORKS - OPERATIONS
125-416-052-200 MAINTENANCE & OPERATIONS
125-416-052-268-0000 RENTALS &LEASES - - - -
125-416-052-400-0000 FIXED CHARGES & DEBT SERVICE - - - -
125-416-052-484-0000 OTHER INTEREST - - - -
125-416-221 STREETS
125-416-221-100 Personnel Services
125-85-31-31300-6005- Hourly Wages 24,673.18 - - -
125-85-31-31300-6001- FULL-TIME SALARIES 289,133.75 176,507.00 181,802.21 187,256.28 192
125-85-31-31300-6102- OVERTIME 69,243.89 32,000.00 32,960.00 33,948.80 34
125-85-31-31300-6105- LONGEVITY - 985.00 1,014.55 1,044.99 1
125-85-31-31300-6120- DIFFERENTIAL PAY 2,009.59 - - -
125-85-31-31300-6140- WORKERS' COMPENSATION 27,278.41 31,887.00 32,843.61 33,828.92 34
125-85-31-31300-6150- HEALTH INSURANCE 40,198.89 29,303.00 30,182.09 31,087.55 32
125-85-31-31300-6151- LTD INSURANCE 231.13 366.00 395.28 426.90
125-8 31300-6160- RETIREMENT PLAN CHARGES 78,569.01 43,331.00 44,630.93 45 6 47
125-8 31300-6161- MEDICARE 5,576.02 2,559.00 2,635.77 2, 4 2
City of National City
Wastewater Rate Study
Draft Report-January 2025
City of National City
Wastewater Operations & Maintenance Budget
FY24 FY25 FY26 FY27 FY2
125-85-31-31400-6001- FULL-TIME SALARIES 93,523.11 508,334.00 523,584.02 539,291.54 555
125-85-31-31400-6102- OVERTIME 37,989.83 - - -
125-85-31-31400-6105- LONGEVITY - - - -
125-416-222-110-0000 ALLOWANCES& STIPENDS - - - -
125-85-31-31400-6120- DIFFERENTIAL PAY 4,819.35 - - -
125-85-31-31400-6140- WORKERS' COMPENSATION 10,920.15 44,833.00 46,177.99 47,563.33 48
125-85-31-31400-6150- HEALTH INSURANCE 14,193.18 87,358.00 89,978.74 92,678.10 95
125-85-31-31400-6151- LTD INSURANCE - - - -
125-416-222-159-0000 DEFERRED COMPENSATION - - - -
125-85-31-31400-6160- RETIREMENT PLAN CHARGES 24,451.14 124,791.00 128,534.73 132,390.77 136
125-85-31-31400-6161- MEDICARE 1,923.50 7,371.00 7,592.13 7,819.89 8
125-85-31-31400-6199- PERSONNEL COMPENSATION - 8,600.00 8,858.00 9,123.74 9
125-416-222-200 Maintenance & Operations
125-416-222-200-0000 Maintenance & Operations -
125-85-31-3 1400-7211- LAUNDRY&CLEANING SERVICES - - - -
125-416-222-213-0000 PROFESSIONAL SERVICES 54,546.35 100,000.00 103,000.00 106,090.00 109
125-85-31-31400-7222- MEMBERSHIPS AND SUBSCRIPTIONS 1,264.80 76,127.00 78,410.81 80,763.13 83
125-85-31-31400-7226- TRAINING, TRAVEL & SUBSISTENCE 1,809.00 7,000.00 7,210.00 7,426.30 7
125-85-31-31400-7234- ELECTRICITY& GAS 7,309.50 6,000.00 6,180.00 6,365.40 6
125-85-31-31400-7236- WATER 3,207.19 3,000.00 3,090.00 3,182.70 3
125-85-31-31400-7268- RENTALS & LEASES - 500.00 515.00 530.45
125-85-31-31400-7272- SEWAGE TRANS. &TREATMENT (Utilities In 6,928,614.20 7,651,673.36 7,948,280.00 8,200,628.40 8,203
125-85-31-31400-7291- R & M - AUDIO VISUAL EQUIPT. 2,297.99 5,000.00 5,150.00 5,304.50 5
125-85-31-31400-7299- CONTRACT SERVICES 32,698.97 30,000.00 30,900.00 31,827.00 32
125-85-31-31400-7318- WEARING APPAREL 8,688.61 7,000.00 7,210.00 7,426.30 7
125-416-222-329-0000 PAINTING SUPPLIES - - - -
125-85-31-31400-7337- SMALL TOOLS 873.63 30,000.00 30,900.00 31,827.00 32
125-416-222-340-0000 SHOP SUPPLIES - - - -
125-85-31-31400-7346- TRAFFIC CONTROL SUPPLY 528.82 800.00 824.00 848.72
125-85-31-31400-7352- SEWER PIPE & MATERIALS 2,961.02 4,000.00 4,120.00 4,243.60 4
125-85-31-31400-7354- CHEMICAL PRODUCTS 2,264.27 2,200.00 2,266.00 2,333.98 2
125-416-222-360-0000 SIDEWALK CURB &GUTTER MATER. - - - -
125-85-31-31400-7399- MATERIALS &SUPPLIES 4.393.43 4,600.00 4,738.00 4,880.14 5
125-416-222-500 Capital Outlay
125-416-222-511-0000 AUTOMOTIVE EQUIPMENT - - - -
125-416-222-512-0000 AUTOMOTIVE LEASES - - -
125-10-18-18500-7598- CAPITAL IMPROVEMENT PROGRAM 1,597,662.59 3,000,000.00 6,000,000.00 6,000,000.00 6,000
City of National City
Wastewater Rate Study
Draft Report-January 2025
City of National City
Wastewater Operations & Maintenance Budget
FY24 FY25 FY26 FY27 FY2
125-85-31-31400-7790- INSURANCE CHARGES 312,263.04 466,139.00 480,123.17 494,526.87 509
TOTAL SERWER SERVICE FUND- BUDGET 10,554,519.50 14,754,816.36 17,005,796.59 17,351,672.25 17,450
City c rl City
Wastewater hate Study
Draft Report-January 2025
City of National City
Budget Summary
Scenario 1:$2-6 Million CIP Per Year
-
-
Expense Description FY24 FY25 FY26 FY27 FY28 FY29 FY30
125-416-029 ENGINEERING
125-416-029-100 Salaries $ 458,531 $ 644,686 $ 664,027 $ 683,947 $ 704,466 $ 725,600 $ 747,368
125-416-029-200 Maintenance&Operations $ 36,126 $ 85,000 $ 87,550 $ 90,177 $ 92,882 $ 95,668 $ 98,538
125-416-052 PUBLIC WORKS-OPERATIONS
125-416-052-200 Maintenance&Operations $ - $ - $ - $ - $ - $ - $ -
125-416-221 STREETS
125-416-221-000 Other Financing uses $ - $ 1,136,300 $ - $ - $ - $ - $ -
125-416-221-100 Personnel Services $ 536,914 $ 319,938 $ 329,554 $ 339,461 $ 349,666 $ 360,179 $ 371,009
125-416-222 SEWER SERVICE
125-416-222-000 Other Financing Uses $ - $ - $ - $ - $ - $ - $ -
125-416-222-100 Personnel Services $ 187,820 $ 781,287 $ 804,726 $ 828,867 $ 853,733 $ 879,345 $ 905,726
125-416-222-200 Maintenance&Operations $ 122,844 $ 276,227 $ 284,514 $ 293,049 $ 301,841 $ 310,896 $ 320,223
125-416-222-272-0000 Sewage Trans.&Treatment $ 6,928,614 $ 7,651,673 $ 7,948,280 $ 8,200,628 $ 8,203,047 $ 8,205,539 $ 8,378,105
$ - $ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ - $ -
125-416-222-500 Capital Outlay
Other Capital Outlay $ - $ - $ - $ - $ - $ - $ -
Collection System CIP $ 1,597,663 $ 3,000,000 $ 6,000,000 $ 6,000,000 $ 6,000,000 $ 5,000,000 $ 4,000,000
125-416-222-600 Refunds,Contributions&Special Payments $ 239,533 $ 239,533 $ 246,719 $ 254,121 $ 261,744 $ 269,597 $ 277,684
125-416-222-700 Internal Service Charges and Reserves $ 446,475 $ 620,172 $ 640,427 $ 661,422 $ 683,189 $ 705,763 $ 729,181
Plus/Minus Reserves Collection
Plus/Minus Reserves Metro
Subtotal Expenditures $ 10,554,520 $ 14,754,816 $ 17,005,797 $ 17,351,672 $ 17,450,568 $ 16,552,587 $ 15,827,834
W/Current Budget and Straight Inflation $ 10,554,520 $ 14,754,816 $ 17,005,797 $ 17,351,672 $ 17,450,568.$ 16,552,587 $ 15,827,834
Budget Summary-1 of 1
City of National City
Wastewater Rate Study
Draft Report-January 2025
City of National City
FY 2025 Base Year
Step 1 --Customer Summary and Estimated Flows
Units of Service and Loadings FLOW: COD: SS:
(A) (B) (C) (D) (E) (F) (G)
No.of Active Annual Flow Annual COD
User Group Customers Billing Flow Billing Flow (MG/Year) COD User Load SS per User Annual Load
(MGD) (HCF) (MG/L) (LBS/YR) (MG/L) (LBS/YR)
Single Family , 5,969 0.9546 541,160.1 348.43 200 581,170 200 581,170
Multi-family/Condo 8,293 2.2238 1,085,130.9 811.68 200 1,353,834 200 1,353,834
Mobile Homes 365 0.0382 18,651.0 13.95 200 23,269 200 23,269
Subtotal-Residential 14,627 3.2166 1,644,942 1,174.06 1,958,274 1,958,274
Commercial-Low 1,793 0.5038 245,846.5 183.89 200 306,724 200 306,724
Commercial-Medium Low 925 0.1427 69,657.3 52.10 200 86,906 300 130,359
Commercial-Medium 4 0.0290 14,139.0 10.58 400 35,280 400 35,280
Commercial-Medium High 19 0.0176 8,602.2 6.43 600 32,197 500 26,831
Commercial-High 110 0.1592 77,676.0 58.10 680 329,495 900 436,097
Subtotal Non-Residential 2,851 0.8524 415,921 311.11 I 790,602 935,291
TOTAL 17,478 4.0690 2,060,863 1,485.17 2,748,876 2,893,564
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Stel >f 1
City of National City
Wastewater Rate Study
Draft Report-January 2025
City of National City
FY 2025 Base Year
Step 2—Determination of Unit Costs
Metro Cost Projections
FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30
Parameter
Cost Category Allocation Unit Cost Unit Cost Unit Cost Unit Cost Unit Cost Unit Cost Unit Cost Unit Cost Unit Cost
Percentages
1.Collection System Volume Related Costs $ 1,563,062 $ 1,795,128 $ 3,625,905 $ 7,103,143 $ 9,057,517 $ 9,151,044 $ 9,247,521 $ 8,347,048 $ 7,449,729
Annual Flow(MG) 1,485.17 1,485.17 1,485.17 1,485.17 1,485.17 1,485.17 1,485.17 1,485.17 1,485.17
Unit Cost($/MG) $ 1,052.44 $ 1,208.70 $ 2,441.40 $ 4,782.71 $ 6,098.63 $ 6,161.60 $ 6,226.56 $ 5,620.25 $ 5,016.07
2.Sewage Treatment&Transportation Costs:Metro Blend Projection; $ 6,109,203 $ 7,198,480 $ 6,928,614 $ 7,651,673 $ 7,948,280 $ 8,200,628 $ 8,203,047 $ 8,205,539 $ 8,378,105
Parameter
Cost Per Parameter Allocation%'s*
Flow(MG) 50.8% 3,103,475 3,656,828 3,519,736 3,887,050 4,037,726 4,165,919 4,167,148 4,168,414 4,256,077
COD(LBS.) 23.1% 1,411,226 1,662,849 1,600,510 1,767,537 1,836,053 1,894,345 1,894,904 1,895,479 1,935,342
SS(LBS.) 26.1% 1,594,502 1,878,803 1,808,368 1,997,087 2,074,501 2,140,364 2,140,995 2,141,646 2,186,685
100.0%
Annual Flow(MG) 1,485.17 1,485.17 1,485.17 1,485.17 1,485.17 1,485.17 1,485.17 1,485.17 1,485.17
Pounds of COD(Ibs) 2,748,876 2,748,876 2,748,876 2,748,876 2,748,876 2,748,876 2,748,876 2,748,876 2,748,876
Pounds of SS(Ibs) 2,893,564 2,893,564 2,893,564 2,893,564 2,893,564 2,893,564 2,893,564 2,893,564 2,893,564
Unit Cost($/HCF) $ 2,089.64 $ 2,462.22 $ 2,369.92 $ 2,617.24 $ 2,718.69 $ 2,805.01 $ 2,805.83 $ 2,806.69 $ 2,865.71
Unit Cost($/COD Ib) $ 0.51 $ 0.60 $ 0.58 $ 0.64 $ 0.67 $ 0.69 $ 0.69 $ 0.69 $ 0.70
Unit Cost($/SS Ib) $ 0.55 $ 0.65 $ 0.62 $ 0.69 $ 0.72 $ 0.74 $ 0.74 $ 0.74 $ 0.76
Total Revenue Requirement For Rates $ 7,672,265 $ 8,993,608 $ 10,554,520 $ 14,754,816 $ 17,005,797 $17,351,672 $ 17,450,568 $ 16,552,587 $ 15,827,834
Check - - - - - -
Step 2-1 of 1
City of National City
Wastewater Rate Study
Draft Report-January 2025
FY26 Volume(Flow) Strength(Treatment) Rates
-
Flow COD SS
Unit Cost Unit Cost Unit Cost Unit Cost
COD SS
No.of EDUs Annual Flow Annual Load Annual Load ($/MG) ($/MG) ($/lb.) ($/lb.)
Monthly
Total Annual Flat Rate
(MG) (Ibs) (Ibs) $ 6,098.63 $ 2,718.69 $ 0.67 $ 0.72 Revenue
with no Rate
User Group Required reserves Per HCF
Single Family 5,969 348.43 581,170 581,170 $ 2,124,975 $ 947,287 $ 388,180 $ 416,662 $ 3,877,104 $ 54.13
Multi-family/Condo 8,293 811.68 1,353,834 1,353,834 $ 4,950,122 $ 2,206,702 $ 904,264 $ 970,613 $ 9,031,701 $ 90.76
Mobile Homes 365 13.95 23,269 23,269 $ 85,082 $ 37,928 $ 15,542 $ 16,683 $ 155,235 $ 35.44
Subtotal-Residential 14,627 1,174.06 1,958,274 1,958,274 $ 7,160,179 $ 3,191,917 $ 1,307,987 $ 1,403,957 $ 13,064,040
Commercial-Low 1,793 183.89 306,724 306,724 $ 1,121,496 $ 499,949 $ 204,870 $ 219,901 $ 2,046,216 $ 8.32
Commercial-Medium Low 925 52.10 86,906 130,359 $ 317,761 $ 141,654 $ 58,047 $ 93,459 $ 610,921 $ 8.77
Commercial-Medium 4 10.58 35,280 35,280 $ 64,499 $ 28,753 $ 23,565 $ 25,294 $ 142,110 $ 10.05
Commercial-Medium High 19 6.43 32,197 26,831 $ 39,241 $ 17,493 $ 21,505 $ 19,236 $ 97,476 $ 11.33
Commercial-High 110 58.10 329,495 436,097 $ 354,340 $ 157,960 $ 220,079 $ 312,653 $ 1,045,034 $ 13.45
Subtotal Non-Residential 2,851 311.11 790,602 935,291 $ 1,897,338 $ 845,809 $ 528,066 $ 670,544 $ 3,941,756
Total 17,478 1,485.17 2,748,876 2,893,564 $ 9,057,517 $ 4,037,726 $ 1,836,053 $ 2,074,501 $ 17,005,797
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FY27 Volume(Flow) Strength(Treatment) Rates
Flow COD SS
Unit Cost Unit Cost Unit Cost Unit Cost
COD SS
No.of EDUs Annual Flow Annual Load Annual Load ($/MG) ($/MG) ($!lb.) ($/lb.)
Monthly
Total Annual Flat Rate
(MG) (Ibs) (Ibs) $ 6,161.60 $ 2,805.01 $ 0.69 $ 0.74 Revenue
with no Rate
User Group Required reserves Per HCF
Single Family 5,969 348.43 581,170 581,170 $ 2,146,917 $ 977,362 $ 400,504 $ 429,891 $ 3,954,674 $ 55.21
Multi-family/Condo 8,293 811.68 1,353,834 1,353,834 $ 5,001,237 $ 2,276,762 $ 932,974 $ 1,001,429 $ 9,212,401 $ 92.57
Mobile Homes 365 13.95 23,269 23,269 $ 85,960 $ 39,133 $ 16,036 $ 17,212 $ 158,341 $ 36.15
Subtotal-Residential 14,627 1,174.06 1,958,274 1,958,274 $ 7,234,114 $ 3,293,257 $ 1,349,514 $ 1,448,531 $ 13,325,416
Commercial-Low 1,793 183.89 306,724 306,724 $ 1,133,077 $ 515,822 $ 211,374 $ 226,883 $ 2,087,155 $ 8.49
Commercial-Medium Low 925 52.10 86,906 130,359 $ 321,042 $ 146,151 $ 59,890 $ 96,426 $ 623,509 $ 8.95
Commercial-Medium 4 10.58 35,280 35,280 $ 65,165 $ 29,666 $ 24,313 $ 26,097 $ 145,240 $ 10.27
Commercial-Medium High 19 6.43 32,197 26,831 $ 39,646 $ 18,049 $ 22,188 $ 19,847 $ 99,730 $ 11.59
Commercial-High 110 58.10 329,495 436,097 $ 357,999 $ 162,976 $ 227,067 $ 322,580 $ 1,070,621 $ 13.78
Subtotal Non-Residential 2,851 311.11 790,602 935,291 $ 1,916,930 $ 872,663 $ 544,831 $ 691,833 $ 4,026,256
Total 17,478 1,485.17 2,748,876 2,893,564 $ 9,151,044 $ 4,165,919 $ 1,894,345 $ 2,140,364 $ 17,351,672
Check(Should=0) - I I I I I I I I $ -
StE f 3
City a al City
Wastewater Rate Study
Draft Report-January 2025
FY28 Volume(Flow) Strength(Treatment) Rates
Flow COD SS
Unit Cost Unit Cost Unit Cost Unit Cost
COD SS
No.of EDUs Annual Flow Annual Load Annual Load (S/MG) (S/MG) ($/lb.) (M.)
Monthly
I Total Annual Flat Rate
(MG) (Ibs) (Ibs) $ 6,226.56 $ 2,805.83 $ 0.69 $ 0.74 Revenue with no Rate
User Group Required reserves Per HCF
Single Family 5,969 348.43 581,170 581,170 $ 2,169,552 $ 977,650 $ 400,623 $ 430,017 $ 3,977,842 $ 55.53
Multi-family/Condo 8,293 811.68 1,353,834 1,353,834 $ 5,053,964 $ 2,277,434 $ 933,249 $ 1,001,724 $ 9,266,370 $ 93.11
Mobile Homes 365 13.95 23,269 23,269 $ 86,866 $ 39,144 $ 16,040 $ 17,217 $ 159,268 $ 36.36
Subtotal-Residential 14,627 1,174.06 1,958,274 1,958,274 $ 7,310,382 $ 3,294,228 $ 1,349,912 $ 1,448,959 $ 13,403,481
Commercial-Low 1,793 183.89 306,724 306,724 $ 1,145,023 $ 515,974 $ 211,436 $ 226,950 $ 2,099,382 $ 8.54
Commercial-Medium Low 925 52.10 86,906 130,359 $ 324,427 $ 146,194 $ 59,908 $ 96,455 $ 626,983 $ 9.00
Commercial-Medium 4 10.58 35,280 35,280 $ 65,852 $ 29,674 $ 24,320 $ 26,104 $ 145,951 $ 10.32
Commercial-Medium High 19 6.43 32,197 26,831 $ 40,064 $ 18,054 $ 22,195 $ 19,853 $ 100,166 $ 11.64
Commercial-High 110 58.10 329,495 436,097 $ 361,774 $ 163,024 $ 227,133 $ 322,675 $ 1,074,606 $ 13.83
Subtotal Non-Residential 2,851 311.11 790,602 935,291 $ 1,937,139 $ 872,920 $ 544,992 $ 692,037 $ 4,047,088
Total 17,478 1,485.17 2,748,876 2,893,564 $ 9,247,521 $ 4,167,148 $ 1,894,904 $ 2,140,995 $ 17,450,568
Check(Should=0) - I I I I I I I I $ -
FY29 Volume(Flow) Strength(Treatment) Rates
Flow COD SS
Unit Cost Unit Cost Unit Cost Unit Cost
COD SS
No.of EDUs Annual Flow Annual Load Annual Load )$/MG) ($/MG) ($/Ib.) ($/lb.)
Monthly
Total Annual Flat Rate
(MG) (Ibs) (Ibs) $ 5,620.25 $ 2,806.69 $ 0.69 $ 0.74 Revenue with no Rate
User Group Required reserves Per HCF
Single Family 5,969 348.43 581,170 581,170 $ 1,958,293 $ 977,947 $ 400,744 $ 430,148 $ 3,767,132 $ 52.59
Multi-family/Condo 8,293 811.68 1,353,834 1,353,834 $ 4,561,837 $ 2,278,125 $ 933,532 $ 1,002,028 $ 8,775,522 $ 88.18
Mobile Homes 365 13.95 23,269 23,269 $ 78,408 $ 39,156 $ 16,045 $ 17,223 $ 150,832 $ 34.44
Subtotal-Residential 14,627 1,174.06 1,958,274 1,958,274 $ 6,598,537 $ 3,295,229 $ 1,350,322 $ 1,449,399 $ 12,693,486
Commercial-Low 1,793 183.89 306,724 306,724 $ 1,033,527 $ 516,130 $ 211,500 $ 227,019 $ 1,988,176 $ 8.09
Commercial-Medium Low 925 52.10 86,906 130,359 $ 292,836 $ 146,239 $ 59,926 $ 96,484 $ 595,484 $ 8.55
Commercial-Medium 4 10.58 35,280 35,280 $ 59,440 $ 29,683 $ 24,327 $ 26,112 $ 139,563 $ 9.87
Commercial-Medium High 19 6.43 32,197 26,831 $ 36,163 $ 18,059 $ 22,201 $ 19,859 $ 96,283 $ 11.19
Commercial-High 110 58.10 329,495 436,097 $ 326,546 $ 163,073 $ 227,202 $ 322,773 $ 1,039,595 $ 13.38
Subtotal Non-Residential 2,851 311.11 790,602 935,291 $ 1,748,511 $ 873,185 $ 545,157 $ 692,247 $ 3,859,101
Total 17,478 1,485.17 2,748,876 2,893,564 $ 8,347,048 $ 4,168,414 $ 1,895,479 $ 2,141,646 $ 16,552,587
Check(Should=0) I - I I I I I I I I $ -
Step 3-2of3
City of National City
Wastewater Rate Study
Draft Report-January 2025
FY3O Volume(Flow) Strength(Treatment) Rates
Flow COD SS
Unit Cost Unit Cost Unit Cost Unit Cost
COD SS
No.of EDUs Annual Flow Annual Load Annual Load ($/MG) ($/MG) ($/Ib.) ($/Ib.)
Monthly
Total Annual Flat Rate
(MG) (Ibs) (Ibs) $ 5,016.07 $ 2,865.71 $ 0.70 $ 0.76 Revenue with no Rate
User Group Required reserves Per HCF
Single Family 5,969 348.43 581,170 581,170 $ 1,747,774 $ 998,514 $ 409,172 $ 439,194 $ 3,594,654 $ 50.19
Multi-family/Condo 8,293 811.68 1,353,834 1,353,834 $ 4,071,433 $ 2,326,035 $ 953,165 $ 1,023,101 $ 8,373,735 $ 84.14
mobile homes 365 13.95 23,269 23,269 $ 69,979 $ 39,979 $ 16,383 $ 17,585 $ 143,926 $ 32.86
Subtotal-Residential 14,627 1,174.06 1,958,274 1,958,274 $ 5,889,185 $ 3,364,529 $ 1,378,720 $ 1,479,880 $ 12,112,314
Commercial-Low 1,793 183.89 306,724 306,724 $ 922,421 $ 526,985 $ 215,948 $ 231,793 $ 1,897,147 $ 7.72
Commercial-Medium Low 925 52.10 86,906 130,359 $ 261,356 $ 149,314 $ 61,186 $ 98,513 $ 570,369 $ 8.19
Commercial-Medium 4 10.58 35,280 35,280 $ 53,050 $ 30,308 $ 24,839 $ 26,662 $ 134,858 $ 9.54
Commercial-Medium High 19 6.43 32,197 26,831 $ 32,276 $ 18,439 $ 22,668 $ 20,276 $ 93,659 $ 10.89
Commercial-High 110 58.10 329,495 436,097 $ 291,442 $ 166,503 $ 231,981 $ 329,561 $ 1,019,486 $ 13.12
Subtotal Non-Residential 2,851 311.11 790,602 935,291 $ 1,560,544 $ 891,549 $ 556,622 $ 706,805 $ 3,715,520
Total 17,478 1,485.17 2,748,876 2,893,564 $ 7,449,729 $ 4,256,077 $ 1,935,342 $ 2,186,685 $ 15,827,834
Check(Should=0) I -
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