07-19-2013 BPU RPT 02 - Laserfiche WebLink

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W A T E R E N E R G Y I I ! E RIVERSIDE PUBLIC UTILITIES Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: July 19, 2013 ITEM NO: 2 SUBJECT: PUBLIC HEARING - AMENDMENT OF WATER TARIFFS TO INCORPOATE REFERENCE TO THE WATER GENERAL FUND TRANSFER, AS APPROVED BY THE VOTERS OF THE CITY OF RIVERSIDE AS A GENERAL TAX, PURSUANT TO ARTICLE 13.0 OF THE CALIFORNIA CONSTITUTION ISSUE: The item for Board of Public Utilities consideration is approval to conduct a public hearing to consider and to amend the Riverside Public Utilities' (RPU) water tariffs, to incorporate reference to the Water General Fund Transfer, as approved by the voters of the City of Riverside as a general tax, pursuant to Article 13.0 of the California Constitution. RECOMMENDATION: That the Board of Public Utilities: 1. Conduct a public hearing to consider the following amendment to the existing water tariffs: "The Water General Fund Transfer is a component of every customer's water bill, and is a transfer of up to 11.5 percent of revenues from the Water Fund to the City's General Fund. On June 4, 2013, the voters of the City of Riverside approved the Water General Fund Transfer as a general tax, pursuant to Article 13.0 of the California Constitution"; 2. Adopt a resolution establishing the following amendment to the existing water tariffs: "The Water General Fund Transfer is a component of every customer's water bill, and is a transfer of up to 11.5 percent of revenues from the Water Fund to the City's General Fund. On June 4, 2013, the voters of the City of Riverside approved the Water General Fund Transfer as a general tax, pursuant to Article 13.0 of the California Constitution"; and 3. Recommend that the City Council adopt the proposed amendment to the existing water tariffs. BACKGROUND: Currently, RPU has nearly a dozen water rates that are tailored to meet the needs of specific water customers, address a particular function of the water side of the utility, or both. At times, it is necessary to adjust these rates in some way. These changes can be spurred by several things, including a need to keep rates current with changing conditions within the industry, the need to encourage water conservation, the need to keep rates current with changes in state and/or federal laws or to reflect other changes in the way RPU delivers water to customers. In the recent Measure A election, 68% of voters agreed that the City of Riverside should continue a tax of a transfer of up to 11.5% of water revenues to the City's General Fund to support City services. That vote, which only required 50$ plus one vote to pass, continues a decades-long tradition, already voted on two times prior, that ensures that Riverside residents get a return on their investment in RPU.