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HomeMy WebLinkAbout2013 Rate Increase Notice - Residential Water ServiceNotice of Residential Water Rate Increase Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978 619-670-2222 www.otaywater.gov NOTICE OF INCREASED WATER RATES AND CHARGES EFFECTIVE FOR WATER BILLED IN JANUARY 2013 Dear Customer, An overall rate increase of 7.4 percent was approved by the Otay Water District’s (the “District”) Board of Directors as part of the annual budget adoption process completed in May 2012. For a typical single-family residential water customer, your bill will increase by $4.88 per month. The new water rates and charges will apply to water billed beginning January 1, 2013 and, depending on your billing cycle, will apply to water used as early as the beginning of December 2012. This letter serves as a 30-day notice of rate increases. The District is a revenue-neutral public agency. To continue providing reliable high-quality water service, the District must implement rate increases and pass-through to its customers higher costs imposed by its water suppliers. One hundred percent (100%) of this increase is a direct pass-through from those suppliers, which include the Metropolitan Water District of Southern California (MWD), San Diego County Water Authority (CWA), and the City of San Diego. On August 24, 2009, the District adopted a five-year schedule of rates in compliance with applicable provisions of the law. This increase is within the limits contemplated in the five-year schedule of rates. Water wholesalers are raising their water rates to obtain new and more reliable supplies of water. These include more reliable emergency resources, agricultural to urban water transfers, as well as potential new sources of water supplies including ocean water desalination. In addition, rate increases cover the cost of acquiring imported water from the Colorado River and Northern California. For its part, the District has worked diligently to reduce internal costs, including reducing the number of full-time employees and instituting efficiency programs, such as automated meter reading and online bill pay services, all of which minimize the impact of higher water costs from wholesalers. The District also continues to be among the lowest cost water service providers in San Diego County. Customers interested in learning ways in which they can reduce their water usage to minimize the effects of this increase can visit the District’s Conservation page at www.otaywater.gov. Additionally, the Water Conservation Garden located in Rancho San Diego is free to the public and offers various conservation exhibits and classes. For more about the Garden, visit www.thegarden.org. For information about the Otay Water District, go to www.otaywater.gov or contact us via email at info@otaywater.gov. Typical Bill at 14 HCF2 (or Units) per Month New Rates and Fees MWD/CWA1 System Fee1 Water Rate2 Energy Charge4 Water Charge by Improvement District5 Total6 Current $14.01 $14.58 $37.26 $2.20 $0.79 $68.84 New $13.28 $16.74 $40.90 $2.01 $0.79 $73.72 Increase in monthly water bill: $4.88 Single Family Consumption Blocks (Units or HCF)2 Current New Conservation Tier3 $1.58 $1.73 6 - 10 $2.45 $2.69 11 - 22 $3.19 $3.50 23 + $4.92 $5.39 Current New Meter Size System Fee MWD/CWA Total System Fee MWD/CWA Total 3/4” $14.58 $14.01 $28.59 $16.74 $13.28 $30.02 1” $18.52 $23.33 $41.85 $21.26 $22.12 $43.38 1 1/2” $28.37 $46.74 $75.11 $32.57 $44.31 $76.88 2” $40.18 $74.74 $114.92 $46.13 $70.85 $116.98 Footnotes Your bill will vary based on meter size, water consumption in units, and geographic location. 1. These fees are based on the meter size. The MWD/CWA fee is decreasing to match the cost from the District’s water suppliers. The System Fee is increasing to pay for higher water system replacement, maintenance, and operating expenses. 2. This cost varies based on water usage and can be calculated using the consumption block tables. One unit of consumption equals 748 gallons or one HCF (hundred cubic feet). 3. The Conservation Tier discount applies toward the first five units when overall consumption is ten units or less. 4. The Energy Charge represents the cost of energy required to pump each unit of water 100 feet in elevation. This is charged proportionately for every foot of elevation over 450 feet. This decrease is due to decreased power costs to the District. 5. This charge is a per unit charge and your bill will vary based on water consumption. Improvement district charges do not apply to the first five units of water per month. 6. Charges collected through the property tax role (Availability fees and general obligation debt) are not included in this total. 7. Fire Service requires a separate meter and is a monthly fee regardless of meter size. This information reflects only changes to rates. For a comprehensive listing of rates, please see the Otay Water District’s Code of Ordinances at www.otaywater.gov. Current New Energy Charges4 $0.045 $0.042 Improvement District5 No. 3 $0.20 $0.21 Improvement District5 No. 10 $0.27 $0.27 La Presa5 $0.08 $0.08 Fire Service7 $30.11 $34.57