20-0121_SANTA MARGARITA WATER DISTRICT_F1a_SMWD PowerPoint PresentationF.1.a Resolution Approving Annexation Agreement Pertaining to Transfer of the City’s Water and Sewer Utility Systems to the Santa Margarita Water District (600.50)
SMWD Action:
Board of Directors authorized execution of the Annexation Agreement
on January 17, 2020
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F.1.a (Cont.) Annexation Agreement
City Customer Benefits
Economy of scale
Regionalizing the groundwater treatment plant capital and operating costs
Singular focus on water and wastewater utilities
Increased capital investment in infrastructure repair and replacement
Participation in regional water reliability projects:
Baker Treatment Plant
Irvine Ranch Water District interties
Groundwater recharge projects
Recycled Water supply and storage
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F.1.a (Cont.) Annexation Agreement
District Customer Benefits
Immediate access to local water supplies
Economy of scale
Watershed approach
Consolidation of local water rights
Long-term cost savings for water supply
Expand the use of recycled water and Trampas Reservoir
Shared services approach to regional wastewater treatment (SOCWA)
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F.1.a (Cont.) Annexation Agreement
Financial Analysis
$99 $99 $95 $96 $98 $99 $101 $103 $105 $110 $114 $119
$26 $26 $26 $31 $36 $41 $46 $51 $54 $56 $58 $61
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Current and Projected Average Residential Customer
Total Monthly Bill
Water Wastewater
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F.1.a (Cont.) Annexation Agreement
Financial Analysis 20-Year Water Fund Financial Forecast ($1,000)
Fiscal Years Ending 6/30 2025 2030 2035 2040
Revenues SMWD SMWD SMWD SMWD
Total Potable Water Rate Revenues $18,018 $20,889 $24,580 $28,495
Total Recycled Water Revenues 1,504 1,908 2,498 2,906
Property Taxes‐General 0 0 0 0
Total Other Revenues 1,032 1,205 1,453 1,861
Total System Revenues $20,554 $24,001 $28,531 $33,261
Expenses
Potable Water Supply Costs $7,926 $9,158 $10,916 $13,162
All other operating Expenses 6,668 8,036 9,802 11,736
SMWD Transfer Contingency Factor 200 200 200 200
Debt Service 1,875 1,876 1,876 0
Total System Expenses $16,669 $19,270 $22,795 $25,098
Net Revenues Available for CIP 3,885 4,731 5,736 8,163
CIP/ Transition Costs 3,939 4,567 5,294 6,137
Reserve Balances
Beginning Balance $13,829 $13,436 $15,490 $25,020
Ending Balance $13,775 $13,600 $15,933 $27,046
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F.1.a (Cont.) Annexation Agreement
Financial Analysis 20-Year Sewer Fund Financial Forecast ($1,000)
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F.1.a Resolution Approving Annexation Agreement Pertaining to Transfer of the City’s Water and Sewer Utility Systems to the Santa Margarita Water District (600.50)
Questions?
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