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Tier 1 of the single family residential rates) and capacity expansion charges). No additional rate increase is proposed at this time. However, the fixed meter charge and the distribution charges are subject to annual consumer price index changes effective January 1, starting in January 1, 2016 and the Zone 7 rate is subject to changes by the Zone 7 Board. Proposed Oonsumption Rates Effective Octo TOT Single (y ber m27 Accounts Tier* 0 - 20 CCF 21 - 40 CCF 41 - 60 CCF Over 60 CCF Zone 7 Distribution Recycled Capacity Proposed Present Water Costs Water Expansion Rate Rate $2.4000 $0.0000 $0.0000 $0.0000 52.4000 $2.1000 2.4000 0.2581 0.1000 0.0000 2.7581 2.3581 2.4000 0.4825 0.1000 0.0000 2.9825 2.6825 2.4000 1.1220 0.1000 0.1300 3.7520 3.4520 * CCF equals 100 cubic feet of water; or 748 gallons * Proposed Oonsumption ates War s Effective Oommercial Accounts October BA NO Business Zone 7 Distribution Recycled Proposed Present Customer Class Water Costs Water Rate Rate Commercial & Multifamily $2.4000 $0.2693 $0.1000 $2.7693 $2.4693 Customer Class Irrigation Zone 7 Water $2.4000 Distribution Recycle Proposed Present Costs Water Rate Rate $0.4152 $0.1000 $2.9152 $2.6152 Senior and Low Income Discounts The City is proposing to reduce the current 20% discount on water rates for single family residents who qualify as a "senior" (age 65 or older) to 15 %, and continue to provide a 30% discount for residents who qualify as a low income family (those who qualify for PG &E, PacBell, or cable television discounts through either the California Department of Economic Opportunity or the Social Security Administration). Residents cannot apply for both discounts. The City also currently limits both programs to a discount only if the water customer's bi- monthly water consumption is less than or equal to 40 CCF. The proposed rate program will continue these programs at these recommended levels through an annual subsidy from the General Fund in the amount of approximately $310,000. Page 5 of 18