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5.3• Drought Rates <br /> The next step after determining the drought costs by stage is evaluating the drought cost recovery mechanism, or <br /> drought rate structure, that best meets the needs of the City and its customers. Based on direction provided by City <br /> staff, the drought rates were developed as a proportional commodity charge increase to the proposed commodity <br /> charges for FY 2024, which allows for the ability of customers to change their water bill, encourages conservation, <br /> and promotes affordability. <br /> 5.3.1.DROUGHT RATE CALCULATION & PROPOSED DROUGHT RATES <br /> Table 5-8 shows the drought rate percentage calculation.This is calculated by dividing the total drought cost(Line <br /> 2)by the total expected commodity revenue excluding the revenue from the allotment usage. This drought rate <br /> percentage is then multiplied with the proposed FY 2024 commodity rates(Table 4-9) to obtain the proposed <br /> commodity drought rates shown in Table 5-9. It is important to note that the drought rates are rounded to the <br /> nearest cent and therefore may not match hand calculations. <br /> 64 CITY OF PLEASANTON <br />