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Home My WebLink About2023 Rate Increase Notice - Publicly Owned Water Service NOTICE IS HEREBY GIVEN that the Otay Water District (the “District”) will hold a Public Hearing on October 5, 2022, at 3:30 p.m. in the Board of Directors Mee�ng Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978, to consider: (1) the adop�on of changes to water rates, fees, and charges billed beginning January 1, 2023; (2) the authoriza�on, for a period of five years, of all future pass-through costs and cost increases or decreases to cover changes to rates, fees, or charges from the District’s water and energy suppliers; and (3) the authoriza�on, for a period of five years, of overall non- supplier cost increases, in addi�on to the pass-through increases, not to exceed the annual increase in the Consumer Price Index-U for the San Diego-Carlsbad Area as of January 31 of the preceding year. In no event will the rates be increased in any year by more than the cost of providing the respec�ve water service. These rates, fees, and charges apply to property for which you are shown as the record owner or customer of record. The purpose of the hearing is to consider all writen protests against the proposed rates, fees, and charges that, if approved, will be imposed on proper�es served by the District. The amount of the proposed increases to rates, fees, and charges and the basis upon which they were determined is described in more detail as follows. PROPOSED RATE CHANGE AND ACTIONS At the District’s public hearing, the Board of Directors will consider a water rate increase in order to propor�onately recover the increasing costs of providing water to the District’s customers. The District’s overall costs are increasing approximately 4.1% in 2023 and are projected to increase by approximately 4.8% annually from 2024 to 2027. The District’s 2023 water rate increase is proposed to take effect for charges billed on or a�er January 1, 2023 and may apply to water used as early as the beginning of December 2022. The District is proposing changes to the rate structures, rates, fees, and charges based on a comprehensive cost-of-service study that was completed in April 2022 and available upon request from the District. The study includes a detailed evalua�on of rates, fees, charges, costs, and consump�on paterns. Over �me, costs and usage paterns change, and rates and charges must be adjusted accordingly to reflect these changes. The cost-of-service study iden�fies and provides the engineering basis for modifica�ons to the rates and charges that are needed to ensure that the District’s water rates are propor�onal to the cost of service atributable to each parcel based on its customer class and usage as required by Proposi�on 218. The proposed changes are based on each customer’s meter size and usage level. The District will also consider authorizing, for a period of five years, passing through to customers the costs and increases or decreases in costs imposed by the District’s water and energy suppliers. If adopted, customers’ water rates, fees, and charges will be adjusted for pass-through costs and charges from the District’s water and energy suppliers, which include the Metropolitan Water District of Southern California (MWD), San Diego County Water Authority (CWA), City of San Diego, and San Diego Gas and Electric (SDG&E). In addi�on to the water and energy pass-through costs, the District will consider authorizing, for a period of five years, annual rate increases not to exceed the annual increase in the Consumer Price Index-U for the San Diego-Carlsbad Area as of January 31 of the preceding year, for all non-water and non-pass-through costs related to labor, benefits, materials, maintenance, administra�ve expenses, and other opera�onal costs of providing water service, including amounts required to meet bond covenants and to maintain adequate reserves and rate stability. For a period of five years a�er January 1, 2023, customers will be given 30-days writen no�ce of any changes to rates, fees, and charges based on the two paragraphs above. The proposed rates, fees, and charges will provide revenue that recovers all costs of providing water service in a manner that is reasonable and propor�onal to the cost of service to each parcel. WHY ARE YOU RECEIVING THIS NOTICE? This no�ce is being provided to you by the District in compliance with California Cons�tu�on Ar�cle XIIID (also known as “Proposi�on 218”). Under the terms of Proposi�on 218, the District must no�fy the record owner or customer of record of proposed changes to property-related fees such as water service. This leter serves as no�ce that the District will hold NOTICE OF PUBLIC HEARING In Connection with Proposed INCREASES TO RATES, FEES, AND CHARGES FOR PUBLICLY-OWNED WATER SERVICE Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. a Public Hearing on October 5, 2022, at 3:30 p.m. in the Board of Directors Mee�ng Room, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978 to consider changes to its current water service rates, fees, and charges. PROTEST PROCEDURE As the owner of record or customer of record of a property that is subject to the imposi�on of the proposed rate, fee, and charge changes, you may submit a writen protest against the proposed ac�ons. Please note that if your property has more than one record owner or customer of record, only one writen protest will be counted for the property. By law, each protest must be in wri�ng, state the specific rate change for which the protest is being submited, provide the loca�on of the iden�fied property (by assessor’s parcel number or street address), and include the original signature of the owner of record or customer of record submi�ng the protest. Protests submited by email, facsimile, or other electronic means will not be accepted. Writen protests may be submited by mail or in person to the Board Secretary, Otay Water District, 2554 Sweetwater Springs Blvd., Spring Valley, CA 91978. Writen protests may also be delivered in person at the public hearing, as long as they are received prior to the conclusion of the public hearing. At the conclusion of the public hearing, the Board of Directors will consider adop�ng the proposed ac�ons described above. By law, oral comments at the public hearing will not qualify as formal protests unless a writen protest has been received by the District prior to the conclusion of the public hearing as stated above. If, at the close of the public hearing, writen protests against the proposed rates, fees, and charges are not presented by a majority of the record owners or customers of record of the District, then the Board of Directors may adopt the proposed ac�ons. If adopted, the rates, fees, and charges will apply to water billed on or a�er January 1, 2023 and may apply to water used as early as the beginning of December 2022. This leter serves as a 45-day no�ce of the hearing on the proposed rate changes. Pursuant to Government Code Sec�on 53759, there is a 120-day statute of limita�ons for any legal ac�on challenging any new, increased, or extended water fee or charge. WHY ARE WATER RATE CHANGES NECESSARY? The District is a nonprofit public agency that provides water service to the community. As a nonprofit public agency, the District does not make a profit from providing water service, and it cannot operate at a loss. Water bills reflect only those rates, fees, and charges sufficient to support water service. To con�nue to provide reliable service, the District must implement and pass through to its customers the full cost of providing water service, including cost increases imposed by the District’s water and energy suppliers. The ac�ons proposed will help protect the public’s investment in the public water system for providing a reliable water supply. Over the next five-year period, the pass-through costs from the CWA, MWD, and SDG&E are an�cipated to increase the District’s water costs. The proposed increase is primarily due to rising water and energy supply costs and capital improvement program costs. WHAT DO WATER RATES FUND? Each customer pays their fair share of the cost of purchasing water, energy or pumping costs, labor and benefits, materials, chemicals used in water treatment, administra�ve expenses, opera�ons, construc�on, and maintenance of the public water system and facili�es. The rates, fees, and charges also include amounts required to meet bond covenants and to maintain adequate reserves and rate stability. WHAT CAN I DO TO SAVE MONEY ON MY WATER BILL? Customers interested in learning ways to reduce their water use to minimize the effects of this rate increase can visit the District’s conserva�on and rebate pages at otaywater.gov. The District provides informa�on on rebates, incen�ves, water audits, and other resources to help customers save water. Addi�onally, the Water Conserva�on Garden located in Rancho San Diego is open to the public and offers various conserva�on exhibits, programs, and classes in person and online. For more informa�on about the Water Conserva�on Garden, visit thegarden.org. For more information about the District, please visit otaywater.gov, email info@otaywater.gov, or call 619-670-2222. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. The tables below show the itemized charges that are used to determine a monthly water bill. Your bill will vary based on meter size, water consumption in units, and geographic location. This information reflects only rates, fees, and charges that are proposed to change. For a comprehensive listing of rates, fees, and charges, see the Otay Water District’s Code of Ordinances at otaywater.gov. Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. Units1 Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected All Units $4.17 $6.08 $6.37 $6.68 $7.00 $7.34 Publicly Owned Water Rates1 - 2023 Proposed and 2024-2027 Projected2 Meter Size Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected Meter Size Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected 5/8"$41.61 $16.97 $17.78 $18.63 $19.52 $20.46 5/8"$17.00 $16.33 $17.11 $17.93 $18.79 $19.69 3/4"$41.61 $16.97 $17.78 $18.63 $19.52 $20.46 3/4"$17.00 $16.33 $17.11 $17.93 $18.79 $19.69 1"$58.75 $20.64 $21.63 $22.67 $23.76 $24.90 1"$31.57 $27.22 $28.53 $29.90 $31.34 $32.84 1 1/2"$101.66 $30.06 $31.50 $33.01 $34.59 $36.25 1 1/2"$71.36 $54.42 $57.03 $59.77 $62.64 $65.65 2"$153.11 $41.18 $43.16 $45.23 $47.40 $49.68 2"$121.39 $87.06 $91.24 $95.62 $100.21 $105.02 3"$290.34 $87.08 $91.26 $95.64 $100.23 $105.04 3"$258.17 $190.45 $199.59 $209.17 $219.21 $229.73 4"$444.76 $147.14 $154.20 $161.60 $169.36 $177.49 4"$413.41 $342.81 $359.26 $376.50 $394.57 $413.51 6"$873.81 $290.36 $304.30 $318.91 $334.22 $350.26 6"$846.28 $761.79 $798.36 $836.68 $876.84 $918.93 8"$1,388.56 $450.72 $472.35 $495.02 $518.78 $543.68 8"$1,366.65 $1,305.91 $1,368.59 $1,434.28 $1,503.13 $1,575.28 10"$1,989.08 $692.32 $725.55 $760.38 $796.88 $835.13 10"$1,967.12 $2,067.69 $2,166.94 $2,270.95 $2,379.96 $2,494.20 Otay Fixed System Charges3 - 2023 Proposed and 2024-2027 Projected2 MWD & CWA Charges3 - 2023 Proposed and 2024-2027 Projected2 Other Charges Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected Energy Charges4 0.063$ 0.068$ 0.071$ 0.074$ 0.078$ 0.082$ Government Fee5 0.43$ -$ -$ -$ -$ -$ Other Charges (per unit) - 2023 Proposed and 2024-2027 Projected2 Service Size Current 2023 Proposed 2024 Projected 2025 Projected 2026 Projected 2027 Projected 5/8"24.00$ 2.60$ 2.72$ 2.85$ 2.99$ 3.13$ 3/4"24.00$ 2.60$ 2.72$ 2.85$ 2.99$ 3.13$ 1"24.00$ 2.68$ 2.81$ 2.94$ 3.08$ 3.23$ 1 1/2"24.00$ 2.94$ 3.08$ 3.23$ 3.39$ 3.55$ 2"24.00$ 3.38$ 3.54$ 3.71$ 3.89$ 4.08$ 3"24.00$ 4.99$ 5.23$ 5.48$ 5.74$ 6.02$ 4"32.34$ 7.75$ 8.12$ 8.51$ 8.92$ 9.35$ 6"32.34$ 17.69$ 18.54$ 19.43$ 20.36$ 21.34$ 8"32.34$ 34.83$ 36.50$ 38.25$ 40.09$ 42.01$ 10"32.34$ 60.61$ 63.52$ 66.57$ 69.77$ 73.12$ Fire Service System Charges6 Footnotes 1. This per unit charge is based on the units of consumption. One unit of consumption equals 748 gallons of water or one HCF (hundred cubic feet). Currently, District customers outside the service area or outside an Improvement District pay a usage fee equivalent to two �mes the District’s irriga�on usage fee, plus other fees associated with the irriga�on class posted online: htps://otaywater.gov/customer-service/billing-informa�on/water-and-sewer-rates/. The changes in the water rates are based on the results of the cost of service study. 2. Projections are for informational purposes only. Increases to water rate and fixed charges are based on a projected 4.8 percent inflator. Actual water rate and fixed system charges in each of the projected years may differ. 3. The Fixed System Charges, based on meter size, ensure that customers pay their propor�onate share of the water system replacement, maintenance, and opera�ng expenses. MWD and CWA charges are based on meter size and match, in total, the cost charged by wholesale water suppliers. The changes in the fixed charges are based on the results of the cost of service study. 4. The Energy Charge represents the cost of energy required to pump each unit of water 100 feet in eleva�on. This is charged propor�onately for every 100 feet eleva�on over 450 feet. 5. The Government Fee is a per unit charge, as a result your bill will vary based on water consump�on. This charge is in lieu of tax revenues paid by nongovernment customers. Effec�ve January 1, 2023, the Government Fee will be eliminated. 6. Fire Service requires a separate meter and is a monthly fee based on service size. Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978-2004 otaywater.gov NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT PUBLICLY-OWNED WATER SERVICE PRESORT STD U.S. POSTAGE PAID PERMIT 700 SAN DIEGO, CA Dedicated to Community Service OTAYWATER.GOV NOTICE OF PUBLIC HEARING IMPORTANT INFORMATION ABOUT PUBLICLY-OWNED WATER SERVICE