Title
a. Receive a report on proposed new customer service rates for the Pajaro County Sanitation District wastewater collection system; and
b. Consider implementing new customer service rates in the beginning of Fiscal Year 2024-2025.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Receive a report on proposed new customer service rates for the Pajaro County Sanitation District sewer system which are necessary to offset increasing costs to operate and maintain the collection system; and
b. Consider implementing new customer service rates in the beginning of Fiscal Year 2024-2025.
Last Fall, Public Works, Facilities and Parks Department (PWFP) staff projected an approximate $2.5 million budget shortfall at the end of FY 2023-24 for the Pajaro County Sanitation District (PCSD). The projected shortfall was primarily attributable to increased costs to operate and maintain the PCSD sewer system. In November 2022, staff presented alternative customer service rates and an implementation schedule for the Budget Committee's consideration to minimize or eliminate future budget shortfalls. The alternative rates were based on four scenarios that range from including all expenses to operate and maintain the PCSD system to considering varying degrees of relief that result in progressively lower service rates. These 'degrees of relief' include amortizing or forgiving existing loans, supplemental funding of capital projects, and/or amortizing or partially subsidizing wastewater treatment costs. During the meeting, the Budget Committee recommended staff proceed with Scenario 4, which provides the lowest customer service rates of the four scenarios presented.
On March 29, 2023, staff presented proposed new customer service rates to the Budget Committee along with conditions to consider regarding the timing of rate implementation, including the recent flooding of and evacuation of the community of Pajaro. The Budget Committee recommended that...
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