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Council directs staff to advance water cost‑of‑service study; phased rate increases proposed to cover imported water cost spike
Summary
Council directed staff to finalize a water cost‑of‑service study and begin the Proposition 218 notice process after consultants outlined a phased rate plan to cover sharply higher imported water costs.
San Clemente city staff and the city’s rate consultant presented a draft water cost‑of‑service study on Sept. 16 and the council directed staff to finalize the analysis and prepare required public‑notice materials under Proposition 218.
Consultant Sanjay Gar (Water Resources Economics) told the council that imported water costs the city purchases from Metropolitan Water District (via MWD/MODC) have risen substantially since the last rate update in 2022 and that without a rate adjustment the water enterprise could fail to meet coverage targets that underlie bond covenants and reserve policies. The consultant said an immediate single increase equal to…
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