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HomeMy WebLinkAbout2020 Rate Increase Notice - Residential Water Service An overall average rate increase of 4.7 percent was approved by the Otay Water District (District) as part of the annual budget adoption process completed in June 2019. For a typical single-family residential customer using 11 units of water per month, their water bill will increase by $3.10 per month beginning January 1, 2020. Depending on your billing cycle, the new rates and charges will apply to water used as early as the beginning of December 2019. This letter serves as a 30-day notice of rate increases. On October 4, 2017, the District’s Board of Directors adopted a five-year schedule of rates in compliance with applicable provisions of the law. This increase is within the limits approved in the five-year schedule of rates. The District is a revenue-neutral public agency. To continue providing reliable high-quality service, the District must implement rate increases and pass-through to its customers the higher costs from wholesale water suppliers. A large percentage of the overall increase is a direct result of higher costs from suppliers which include the Metropolitan Water District of Southern California (MWD), San Diego County Water Authority (CWA), and City of San Diego. Rate increases are necessary to cover the increasing cost of purchasing water from the District’s water suppliers. The District’s wholesaler supplier, CWA, has raised its rates primarily due to increasing rates from its supplier, MWD, and higher costs of a drought-proof water supply. These increased costs are largely due to the increased cost of importing water from Northern California and the Colorado River, and costs for the production of water from the Carlsbad Desalination Plant. The District works to minimize rate impacts of its internal costs and implements efficiency measures to help limit the impact of higher rates from suppliers. The District’s goal is to remain among the lower cost water service providers in San Diego County. For more information about District-wide efforts to streamline operations, visit otaywater.gov or email info@otaywater.gov. Customers interested in learning ways to reduce their water use to minimize the effects of this rate increase can visit the District’s conservation and rebate pages at otaywater.gov. The District provides information on rebates, incentives, water audits, and other resources to help customers save water. In addition, the Water Conservation Garden located in Rancho San Diego is open to the public and offers various conservation exhibits and classes to help customers save water. Visit the Water Conservation Garden at thegarden.org. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978-2004 619-670-2222 otaywater.gov Notice of Residential Water Rate Increase Dedicated to Community Service NOTICE OF WATER RATES AND CHARGES FOR WATER BILLED BEGINNING IN JANUARY 2020 116.14 115.82 114.22 112.39 105.92 105.54 104.69 101.06 98.75 93.34 89.01 86.95 85.45 84.27 83.82 81.20 80.60 79.11 77.94 75.75 71.22 61.31 $0 $20 $40 $60 $80 $100 $120 $140 *Rainbow *Padre Dam Ramona *Fallbrook *Valley Center Rincon *Yuima *Escondido Del Mar *Vista *San Diego *Helix Vallecitos *Olivenhain *Poway *Carlsbad *Sweetwater *Oceanside Santa Fe Otay Water District San Dieguito *Lakeside PROJECTED WATER BILLS BY AGENCY AS OF JANUARY 2020 (11 units of water use and 3/4” meter) Otay's estimated average bill * At the time of the survey in July 2019, the member agency's FY 2020 rate was unavailable. The estimated increase is based on the other districts' average FY 2020 known rate increases. The tables below show the itemized charges that are used to determine a monthly water bill. Your bill will vary based on your meter size, your water consumption in units, and your geographic location. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. Typical Bill at 11 HCF (or Units) of Water per Month Water Rates2 (per unit) Other Charges Footnotes 1. The Fixed Charges, based on meter size, ensure that customers pay their proportionate share of the water system replacement, maintenance, and operating expenses. The MWD & CWA Charges are based on meter size and match, in total, the cost charged by wholesale water suppliers. 2. This cost varies based on water usage and can be calculated using the consumption block tables. One unit of consumption equals 748 gallons of water or one HCF (hundred cubic feet). 3. The Energy Charge represent the cost of the energy required to pump or lift each unit of water 100 feet in elevation. This is charged proportionately for every 100 feet of elevation over 450 feet. The increase is due to increased power costs charged by the District’s power supplier. 4. Charges collected through the property tax roll (availability fees and general obligation debt) are not included in this total. 5. Fire Service requires a separate meter and this charge is based on service size. Consumption Blocks (in units)Current New 1 - 10 $3.17 $3.31 11 - 22 $5.65 $5.91 23 or more $7.30 $7.63 Meter Size System Charges MWD/CWA Total System Charges MWD/CWA Total 3/4"$18.05 $15.10 $33.15 $18.87 $15.56 $34.43 1"$25.51 $28.04 $53.55 $26.67 $28.89 $55.56 1 1/2"$44.13 $63.40 $107.53 $46.13 $65.31 $111.44 2"$66.47 $107.84 $174.31 $69.49 $111.10 $180.59 Current New Current New Energy Charges3 (per unit)$0.056 $0.060 Fire Service5 ≤ 3" (monthly)$21.57 $22.55 Fire Service5 ≥ 4" (monthly)$29.06 $30.38 MWD/CWA1 System Charges1 Water Rate2 Energy Charges3 Total4 Current $15.10 $18.05 $37.35 $2.15 $72.65 New $15.56 $18.87 $39.01 $2.31 $75.75 $3.10Increase in monthly water bill (at 11 units or HCF) Monthly Fixed Charges1 This information reflects only changes to rates. For a comprehensive listing, please see the Otay Water District’s Code of Ordinances at otaywater.gov.