Rate Increase FAQ
Why adopt tiered residential rates instead of keeping the current uniform volumetric rate?
Tiered rates serve at least three purposes:
First, they put more of the financial burden on those ratepayers using the most water. This is appropriate because the larger users place a greater burden on SLVWD’s infrastructure by making it necessary to have larger intakes, bigger storage tanks, and larger diameter pipelines.
Second, tiered rates encourage conservation, which helps reduce overall costs to SLVWD by requiring fewer water treatment supplies and lower electricity costs for pumping groundwater to the surface as well as to storage tanks at higher elevations. In addition, using less water benefits creek-side environments and fisheries and allows groundwater levels in aquifers to recover.
Third, a tiered rate system allows for a relatively low cost for the first tier, which helps offset the increase in the fixed base rate necessary to stabilize SLVWD’s revenue.
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