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1. Pleasanton's water rates are the lowest around (this table was generated last year by East Bay Municipal Utilities District/EBMUD). Some agencies have further increased rates since this table was created. Pleasanton has not. While staff is recommending a three-year rate increase, this table focuses on the costs for 8 units per month in the first year, and Pleasanton will continue to be at the bottom of the list. a", (Note—the units of water discussed and time frame change depending on the source. The City of Pleasanton continues to talk about a typical water user(which is 55% of Pleasanton's single-family residential customers) as customers consuming an average of 20 CcF(units) of water per billing cycle (every 2 months). For an average customer, consumption likely goes up in the summer and down in the winter, but it's an average. The FAQ has this all spelled out, but 1 can't offer this clarifier often enough). Bay Area Annual Water Charges-(2022-2023) Based=)r• co B;!tits pt r month fart:osr slim ion Frmeiuc 5IJ57 caro AhA 5S,i2D YORP HUnn is X8 Ma(In A1VfD 5976 :ncmore 5972 Ya7wartl sB36 iSMUG i994 ,os ir[os 3862 Anva CONe s900 Ism Sam A'D i8. ..W 9M >.eaumon'Curr.n;; sw 50 �G4 sfiw sm ;I.X0 2. How did we get here?—Basically,we had a "rate increase holiday" for over a decade—CPI only in most years and nr'N% increase at all in others.There are a variety of reasons for this—drought, COVID, etc. However,you'll note that had we had even CPI increases in the last 3 years, rates would have gone up by nearly 11%over where they are today. That still would not have allowed the City's Water Enterprise Fund to keep up with rising costs and water system maintenance needs over the last 12 years. How did we aet there Only inflationary rate increases from 2011 to 2020(except 2017) No inflationary adjustments for 2017, and for 2021,2022 and 2023 Annual calendar year CPI adjustments would have been: 2021 1.59% 2022 3.66% 2023 5.69% a1!+ 3. What if we do nothing?The water fund will be $25M in debt by 2026.The solid line on this slide is our reserve target (about$13M)to ensure we have funding to address emergencies and have financial stability. Some recent new (and unbudgeted) costs are associated with the City having to buy more expensive water from Zone 7 when we turned off our PFAS-contaminated wells. At the same time, we are having to make infrastructure improvements (expanding pipes and installing a temporary pump) to get water into the system without using those wells. '^ 2