Sec. 37-62.1. Method of developing a water quantity charge.
A. The water quantity charge will be developed by the following methodology. The water quantity charge per 100 cubic feet, which is added to the monthly service charge, will be calculated in two separate rates which will be added together for a combined rate. The separate rates will be for non-environmental raw water expenses and for other non-environmental expenses.
1. The raw water charge will include costs for acquiring water from wholesale suppliers or any other sources and transporting that water to points of delivery at water treatment plants, into the water distribution system or into a storage facility, as that term is defined by Section 45-802.01, Arizona Revised Statutes. Raw water costs may be reduced by a budgeted transfer from the water resources acquisition fee fund. The raw water costs to be included in the raw water charge are limited to the following:
a. Direct payment of charges to the Central Arizona Water Conservation District, the Salt River Project or other supplier for the purchase, lease, transport, recovery, and delivery of untreated water for use or storage by the City. Charges will include fixed and variable operations and maintenance charges, capital charges, and administrative costs.
b. Direct payment of charges to the Roosevelt Irrigation District or Salt River Project for pumping and canal maintenance charges related to the Roosevelt Irrigation District exchange water.
c. Direct payment of groundwater withdrawal fees and long-term storage credit recovery fees to DWR.
d. Direct payment of charges and fees for water storage, as that term is defined by Section 45-802.01, Arizona Revised Statutes, and for water exchanges, as that term is defined by Section 45-1001, Arizona Revised Statutes.
e. Costs to treat wastewater to potable drinking standards.
2. The other non-environmental charge will include operations, maintenance, and replacement costs for water operations, direct capital costs, repayment agreements, contingency reserves and operating cash reserves, in lieu of property tax payments on water facilities, and administrative allocation of functions that support direct water operations. Other non-environmental charge expenditures can be offset by revenues from sources such as water connection fees, intergovernmental charges and miscellaneous revenues as well as water resource acquisition fees for appropriate water conservation operations or direct capital expenditures. Budgeted transfers between this fund and other funds such as the raw water fund may occur.
B. For metered service located outside the City and outside the Town of Paradise Valley, the water quantity charge per 100 cubic feet which is added to the monthly service charge will be calculated using the methodology prescribed in subsection A of this section and adding to such calculation other rate considerations, including a return on investment. (Ord. No. G-6741, § 2 (Exh. A), 2020)