Description
Title: Sewer Rate Setting Audit Report.
Summary
The City of San José's Environmental Services Department (ESD) manages sewer rates to cover costs for wastewater treatment services. A recent audit highlighted several areas of improvement in the sewer rate-setting process. Key recommendations include reviewing outdated assumptions in the rate model regarding wastewater volume and pollutant strength, which date back to the 1970s, and developing formal reserve policies for the Sewer Service and Use Charge Fund. Currently, ESD lacks clear guidance on reserve levels, unlike peer agencies. Additionally, enhancing transparency in the rate-setting process is crucial; this involves improving public access to information on rates and sampling methodologies. The audit aims to ensure fair billing practices and effective financial management, ultimately benefiting residents and businesses in San José.