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Water Rate Pass-Through FAQs

Why are rates being adjusted?

The District’s rate adjustments over the past few years have been based on a rate model and data developed three years ago, which do not account for the ongoing post-pandemic inflation the District has been experiencing. So far, the District has not passed through many of these significant cost increases. These unmitigated expenses are resulting in an unsustainable structural shortfall

We continually invest in maintaining and upgrading our infrastructure to ensure reliable service. Rate adjustments are necessary to fund these critical investments, safeguarding the integrity of our water system and meeting the growing needs of our community.

Additionally, evolving state and federal mandates and regulations for water quality, safety, and environmentally responsible practices require additional upgrades and enhancements to our operations and facilities. Although the District actively seeks grant funding, these state and federal mandates are typically unfunded.

 

How does the District determine its water rate structure?

The District must ensure accurate cost recovery from the appropriate customer classifications (e.g., single-family, multi-family, non-residential) Each customer classification has unique customer demand profiles that impact the cost of providing water service. As customer demand profiles change over time and costs escalate, the District must regularly evaluate its cost allocations to maintain legal and equitable application of these costs.

Integrity is our guiding principle. The District remains transparent with all financial and policy decisions. In 2024, we will conduct a comprehensive rate study with a third-party consultant to support future revenue requirements and update our rate model.

What is the Service Charge?

The District offers the lowest service charge in the area, allowing our customers the greatest opportunity to reduce their bills through water-efficiency efforts.

The Service Charge encompasses fixed costs not included in the Consumption Charge, which pertain to delivering service to each customer. These fixed costs include meter reading, billing, customer service, administration, and a portion of the capital costs essential for providing the necessary capacity to each customer. This includes investments in distribution system pipelines and storage facilities.

 

What is the Consumption Charge?

The Consumption Charge primarily addresses expenses associated with the volume of water consumed by District customers. These costs include operations and maintenance, as well as capital improvements. Some expenses directly correlate with usage, such as the cost of water from CCWD, while others remain fixed, such as personnel costs. The Consumption Charge fluctuates depending on how much water is used each billing period.

 

Does the District offer conservation assistance?

Yes, we offer customized conservation kits that we can conveniently deliver to your doorstep. We also offer a variety of rebates, with our most substantial being the lawn-to-garden rebate. Residential irrigation has the largest impact on the District's infrastructure and our customers’ bills. Click here for more conservation information. Click here for additional conservation resources.

 

Does the District offer any discounts?

Yes. We recognize the financial impact of rate adjustments on our customers and offer a discount on the Residential Monthly Service Charge. This program offers a substantial discount of up to 50% to eligible low-income, senior or permanently disabled customers. Our goal is to help where it's needed most, so we’ve made applying for the program simple.