In June 2015, the city of Davis contracted with the consultant firm NBS to prepare a comprehensive sanitary sewer rate study, which included a model to evaluate the utility’s financial plan (revenue requirements) and provided recommendations for rates that would (while maintaining the revenue required to fund the City’s wastewater utility) adjust the cost allocation by user class (i.e. single family residential, commercial, etc.) The proposed adjustment by user class is to ensure each class is paying a proportionate share of system costs, based on updates to the method of treating wastewater over the last four years.
The cost allocation adjustment adopted by Council has a net effect of increasing average costs for some user classes and decreasing average costs for other user classes. The calculation methodology behind these rates is included in the report from NBS that is linked below.
The City of Davis held a Public Hearing on June 20, 2017, at 6:30 p.m., in the City of Davis Community Chambers, 23 Russell Blvd., Davis, CA, to consider adopting the proposed sewer rates, resulting from changes to the cost allocation for its sanitary sewer service, in compliance with Proposition 218 requirements.