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SFPUC outlines 4-year rate package, affordability analysis and proposed changes to shutoff fees
Summary
CFO Eric Sandler presented a proposed four-year rate package starting July 1 that staff say requires roughly 7.6% annual revenue increases; affordability analysis shows about 13% of single-family direct-bill households are 'water cost-burdened' (>2.5% income) and staff proposed retaining the 48-hour posting fee while eliminating separate shutoff and turn-on fees and pursuing CAP enrollment improvements.
Eric Sandler, the SFPUC chief financial officer, told the commission March 27 that staff will present a four-year rate package on April 10 that begins July 1, 2018. The package reflects a revenue adjustment estimated at about 7.6 percent per year for the water and wastewater enterprises, with roughly 80 percent of the additional revenue targeted to capital investment and debt service.
Sandler summarized proposed structural changes: a small, fixed monthly sewer charge phased in over four years (to mitigate impacts on low-volume users); preservation of the current share of water revenues collected via fixed charges (about 13.9 percent); incremental adjustments to tier breakpoints and a phased compression of tiers over time; and a temporary drought surcharge that would be triggered only by a commission-declared shortage allocation under the Urban Water Management Plan.
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