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<br /> <br /> <br />34 <br /> <br />Approved Rate Increases. Current approved rate increases are a 32.52% year over <br />year increase in the overall rate for Fiscal Year 2024, and a 11.55% year over year increase in <br />the overall rate for Fiscal Year 2025. <br /> <br />Billing and Collection <br /> <br />Water Service Charges. Water service charges are collected by the City and billed, <br />together with wastewater service charges, on a bi-monthly basis by the City. Bills are due and <br />payable within 30 days of the date of the bill. If payment is not received, a 10% late fee is <br />assessed; then a final notice is sent, after which the account is sent to a collection agency. The <br />City is authorized to disconnect water service in the event of a failure to pay water service <br />charges. <br /> <br />Affordability Assistance. Those who qualify or use at or below 30 CcF of water every <br />bi-monthly billing period are discounted 30% for low-income customers and 20% for senior <br />customers. The portion not paid by the customer is contributed by the City’s general fund. <br />Water Connection Fees. The City and Zone 7 Water Connection Fees are collected as <br />part of the building permit and water connection permit application procedures. Permits are not <br />granted until payment has been received. City Water Connection Fees are part of the Gross <br />Revenues. Zone 7 water connection fees are transmitted to Zone 7. <br /> <br />On February 5, 2024, Zone 7 served the City with a lawsuit relating to Zone 7’s <br />connection fees. Under an agreement the City has with Zone 7, the City collects new meter <br />connection fees on behalf of Zone 7 and remits those payments to Zone 7. Zone 7 is claiming <br />that the City misapplied Zone 7’s fee ordinance to various meter installations resulting in an <br />under-payment of fees. The lawsuit has causes of action for: (a) breach of contract; (b) <br />declaratory relief; (c) writ of mandate; and (d) failure to discharge mandatory duties. The lawsuit <br />alleges that the City under collected $18,541,655 in connection fees. The City filed a demurrer <br />requesting that the Court dismiss the lawsuit because, regardless of the facts alleged by Zone <br />7, there is no legal basis to support its claims. The Court has not yet issued its order on the <br />City’s demurrer. <br />