HomeMy WebLinkAbout2011 Rate Increase Notice - Residential Water ServiceNotice of Residential
Water Rate Increase
NOTICE OF INCREASED WATER RATES AND CHARGES EFFECTIVE ON
WATER USAGE BEGINNING IN JANUARY 2011
Dear Customer,
An overall rate increase of 10.9% was approved by the Otay Water District’s (the “District”) Board of
Directors as part of the annual budget adoption process completed in May, 2010. For a typical residential
water customer using 15 units of water per month, your residential water bill will increase by $5.63. The new
water rates and charges will apply to water billed beginning February 1, 2011 and, depending on your billing
cycle, may apply to water usage as early as the beginning of January, 2011. 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
services, the District must implement rate increases and must pass-through to its customers higher costs
imposed by water wholesalers, 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 law. The rate increases herein noticed reflect a District rate increase of 3.8% and pass-through
increase of 7.1%. Both increases are 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.
Potential supplies include seawater desalination, more reliable emergency resources, canal lining projects,
and agricultural to urban water transfers. 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 corresponding salaries and benefits, and instituted efficiency programs, such as
automated meter reading and online bill pay services, to minimize the impact of higher water costs from
wholesalers. The chart below shows how the District’s water rates compare to other agencies in San Diego
County.
Customers who are 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 information about the Garden, please visit www.thegarden.org.
For more information, please visit www.otaywater.gov or contact us via email at info@otaywater.gov.
Otay Water District
2554 Sweetwater Springs Blvd.
Spring Valley, CA 91978
619-670-2777
www.otaywater.gov
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Survey of Member Agency Water Rates
Rates effective January 1, 2011 for residential customer
with 15 HCF water use and 3/4 inch meter
* Otay’s rate includes debt and availability charges that are collected on the property tax bill.
Typical Bill at 15 HCF2 (or Units) per Month
New Rates and Fees
MWD/CWA1 System Fee1 Water Rate2 Energy Charge4 Water Charge by
Improvement District5 Total
Current $9.77 $14.58 $34.65 $2.24 $0.85 $62.09
New $11.82 $14.58 $38.10 $2.34 $0.88 $67.72
Increase in monthly water bill $5.63
Single Family Consumption Blocks
(Units or HCF)2 Current New
Conservation Tier3 $1.35 $1.49
6 - 10 $2.10 $2.31
11 - 22 $2.73 $3.00
23 + $4.21 $4.63
Current New
Meter Size System Fee MWD/CWA Total System Fee MWD/CWA Total
3/4” $14.58 $9.77 $24.35 $14.58 $11.82 $26.40
1” $18.52 $16.28 $34.80 $18.52 $19.69 $38.21
1 1/2” $28.37 $32.61 $60.98 $28.37 $39.44 $67.81
2” $40.18 $52.15 $92.33 $40.18 $63.07 $103.25
Footnotes
For a typical single-family residential customer, your bill will increase by $5.63. Your bill will
vary based on meter size, water consumption, and geographic location.
Current New
Energy Charges4 $0.038 $0.044
Improvement District5 No. 3 $0.18 $0.19
Improvement District5 No. 10 $0.26 $0.27
La Presa5 $0.07 $0.08
1. These fees are based on the meter size. The MWD/CWA fee is increasing to reflect the full
pass-through of this cost by the District’s 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 or HCF (hundred cubit 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 increase is
necessary due to increased 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.
This information reflects only changes to rates. For a comprehensive listing of rates, please
see the Otay Water District’s Code of Ordinance at www.otaywater.gov.