FORESTHILL PUBLIC UTILITY DISTRICT

www.foresthillpud.com

BOARD OF DIRECTORS

Gregory L. Wells Kurt W. Reed, General Manager

Duane L. Frink Paul Chamberlain, District Counsel

William L. Sadler, Jr.

Brett C. Grant

George S. Shaw

Notice of Proposed Water Rate Increase,

Implementation of Existing Infrastructure Repair-Replacement Surcharge, and

Public Hearing

The Board of Directors of the Foresthill Public Utility District does hereby notify its current consumptive rate paying

customers of the following:

Water Rates:

Current water rates, i.e., 5/8” or 3/4" residential metered service, $25.00 per month includes up to 10,000 gallons per

month, $2.04 per 1000 gallons over 10,000 gallons per month.

Current $25.00 per month base rate includes federal, state, local and debt service cost mandates to District of $10.69

per month per customer.

Proposed new water rates (i.e., 5/8” or 3/4" residential metered service) to increase 10.00%. Cost would be: $27.50

per month includes up to 10,000 gallons per month, $2.24 per 1,000 gallons over 10,000 gallons per month.

Date of last District water rate increase was October 2006.

Proposed rate increase justification – District can not continue to absorb increased energy, fuel, materials, labor and

regulatory expenses from General Fund revenues to provide for cost of service of enterprise functions of the District.

Water rates must be sufficient to pay for all costs of providing water service without subsidy from the General Fund.

The proposed rate increase, if adopted, will be sufficient to cover all of the current costs of providing water service.

Infrastructure Repair-Replacement Surcharge:

Current Auditor scheduled cost of depreciation of District’s fixed assets for Fiscal Year 2008-2009 is $358,135.00.

Proposed new fixed asset Repair-Replacement Surcharge of $3.32 per month. Said surcharge represents 25% of the

full annual cost of depreciation shared equally by water users on a monthly basis.

Proposed surcharge justification: aging District infrastructure needs to be repaired or replaced to maintain system

integrity and is an obligation of District water users.

Proposed surcharge revenues shall be designated “restricted” for the specific purpose for which it is intended: to

repair or replace District fixed assets.

Date of Public Hearing is August 5, 2008 at 7:00 p.m. at the Memorial Hall located at 24601 Harrison Street;

Foresthill, CA 95631.

For information please call (530) 367-2511. As per Proposition 218, customers may protest these proposed increases

in person at the Public Hearing or by sending their written protest to:

Foresthill Public Utility District – Protest

PO Box 266

Foresthill, CA 95631-0266

Protest must include your Foresthill Public Utility District Customer Account Number, Placer County Assessor’s Parcel

Number and the physical address of the service location.

Protests must be received in the District office prior to the close of the Public Hearing held August 5, 2008.

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