FY 2018-19 and 2019-20 Adopted Operating and CIP Budget

The table to the right outlines the proposed water system future capital projects. In total $48.4 million in water system capital improvements have been identified, $16.8 million allocated for existing ratepayers and $31.6 million to be funded through impact fees.

Policy Discussion

The funding considerations associated with the Water System are similar in nature to those for the Wastewater System, in that the recently adopted Water Master Plan identifies significant projects for the system. The Water Utility is underfunded for both expansion and rehabilitation projects. However, the projects tend to be weighted more heavily towards expansion. Consequently, City Council will need to consider increasing water impact fees. Like Sewer, staff is also recommending that a rate study be conducted for the Water Utility to determine the rate changes needed to support the rehabilitation component of the capital program. Additionally, the Water Utility has not programmed dollars into its capital improvement program to specifically support the development of recycled water in the City. The policy question for City Council is should recycled water be added to the capital program or should the City continue to rely on Santa Clara Valley Water District or grants to move the needle in this area.

Future East Dunne Reservoir


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