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ATTACHMENT 5 <br />THE CITY OF <br />I <br />PLEASANTON. <br />Pleasanton Water Rates/Public Hearing Notice <br />Frequently Asked Questions <br />Q: Why do Pleasanton's water rates need to be increased so much? <br />A: The City of Pleasanton is committed to providing safe, reliable drinking water and this <br />increase will ensure that funds are in place to manage a variety of water supply and quality <br />issues. The primary purpose of the immediate rate adjustment is to fund near-term projects <br />that will allow for the delivery of additional water from Zone 7 to reduce reliance on <br />Pleasanton's groundwater wells while a longer-term solution to PFAS is developed and <br />implemented. <br />Rates have only been adjusted for inflation since 2011, except for 2017, 2020, 2021, and 2022 <br />when there weren't any increases at all.These inflationary increases do not account for capital <br />projects such as infrastructure repairs and improvements. <br />The City understands that the proposed rate increase is significant, but after years of minimal <br />or no increases, the current rates simply aren't enough to address critical issues such as PFAS <br />and aging infrastructure. <br />Q: Why doesn't the City wait to increase water rates until a PFAS solution is selected? <br />A: The proposed rate increases will fund near-term projects, allow for several maintenance and <br />repair projects, and replenish the Water Enterprise reserve funds. The many years with no, or <br />minimal, rate adjustments have caught up with the Water Enterprise fund and now require <br />more significant increases. While a portion of the revenue generated from the proposed rate <br />increases is earmarked to begin the design of a long-term PFAS solution, a majority of the <br />revenue is slated for current projects, not the long-term PFAS solution. <br />Following the selection of a long-term PFAS solution this fall and the completion of the Water <br />System Master Plan later this year, the City will begin work on another water rate study that <br />will focus on these future and long-term projects. <br />Q: What will the revenue from the proposed rate increase pay for? <br />A: The proposed water rate increase is intended to accomplish several critical outcomes: <br />Immediate/near-term essential system upgrades, including pipe expansion projects <br />Stoneridge Drive, Bernal Avenue and Sunol Boulevard) and a temporary booster pump <br />that are underway. <br />Page 1 1