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City of Pleasanton <br />Water Drought Rates and Connection Fees Technical Memo <br /> <br /> Page 2 <br /> <br /> <br /> <br /> <br />The table below shows the proposed four-year schedule of recycled water rates relative to current recycled water <br />rates based on the overall increased financial needs. <br /> <br /> <br />DROUGHT RATE METHODOLOGY <br />Drought rates are tools to effectively respond to water shortage emergencies while maintaining the City’s financial <br />position and operating ability. Drought rates are implemented in stages for different levels of mandated water <br />usage reduction outlined in the City’s Water Shortage Contingency Plan (Stages 1 through 6). When customers <br />reduce their usage at each stage, the City’s rate revenues from variable charges are reduced. Drought rates are <br />designed to maintain the City’s financial position during periods of reduced water consumption and recover the <br />Page 199 of 226