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2. Revenue Sufficiency Analysis <br />Table 8 - Annual Rate Revenue Adjustments by Fiscal Year <br />Description <br />FY 25 <br />FY 26 <br />FY 27 — FY 31 <br />I FY 32 — FY 34 <br />Proposed <br />Projected <br />Effective Date <br />10/1/202415 <br />10/1/2025 <br />10/1 of each Fiscal Year <br />Water <br />12.0% <br />12.0% <br />5.0% <br />10.0% <br />Sewer16 <br />24.0% <br />12.0% <br />5.0% <br />10.0% <br />This rate indexing plan reflects the results of the cost -of -service component of the Study (described in <br />Section 3 herein), including a higher increase for sewer rates to better align costs and revenues between <br />the systems. Thereafter, it is assumed that rates may be indexed at equal percentages. <br />2.4.2 Historical Rate Adjustments <br />IRCDUS' historical level of rate adjustments has been lower than national trends and Stantec's local <br />C] <br />industry experience. Figure 4 provides the annual change in water and sewer bills for the typical residential <br />customer since 1999 as measured by the United States Consumer Price Index Water and Sewerage <br />Maintenance Series compared to the Utility's historical cost increases in water and sewer bills for a typical <br />residential customer using 4,000 gallons per month. IRCDUS did not adjust rates from 1999 to 2018 and <br />implemented a rate structure change in FY 2019 that reduced the monthly bills for the typical water and <br />sewer customer. Since then, IRCDUS has implemented varying level of annual rate adjustments. Overall, • <br />IRCDUS monthly water and sewer bills for a typical residential customer has increased by approximately <br />12% since 1999 compared to the national industry trend which increased by approximately 210%17 over <br />the same period. <br />15 The Study and supporting schedules described herein assumes an implementation date of 10/1/24 for the FY 2025 <br />rates. However, actual implementation may be 1/1/25 due to the County's planned stakeholder communication and <br />engagement activities regarding utility rates. <br />16 Including reclaimed water. <br />17 U.S. CPI Water and Sewerage Series based on the September reading (last month of the prior fiscal year) of the <br />index for comparison purposes. <br />�, 18 <br />