Case Studies

Project Background

HF&H assisted the Town in developing funding for its water, wastewater, and stormwater services.  Excess use charges and rate surcharges were implemented for the water enterprise in response to the need for increased water conservation.  The tiered water rate structure was set based on the cost of service for each tier.  Wastewater and stormwater rate increases were needed to fund capital improvements in the near term for local facilities and later for wastewater treatment costs.  A stormwater funding strategy was developed integrating funding from a portfolio sources including related services such as water and wastewater revenue, which does not require voter approval, to sources requiring voter approval such as stormwater fees and assessments.

Project Results

• Tiered rates were designed to conform to the cost of providing service for each tier, which is advisable in light of the San Juan Capistrano
• Litigation over the prior water rates was resolved.
• Significant wastewater rate increases were approved, enabling the Town to accelerate its capital improvement program in compliance with a regulatory compliance order.
• Substantial additional funding was identified for the stormwater program.