Rate Increase FAQ
How will the new rates impact the school district and other nonresidential users?
Under the proposed new rate system, the rates are tiered only for single-family residential customers; all others categories of customers pay flat volumetric rates for water usage plus meter charges that depend on the size of the connection. Apartment buildings and mobile home parks are classified as “commercial” under the new rate structure. Schools are classified as “industrial” because their usage pattern (and therefore impact on infrastructure requirements) is more similar to industrial customers than it is to single-family residential customers.
The flat rate the school district will pay in the first year is $12.03 per unit of water, which is less than the $12.66 they are paying currently. Under the new rate structure, shifting more of the revenue to the fixed basic charge largely offsets this decrease in the cost of water. As a result, the change in the school district’s bill will be very small in 2024, and they are not subject to tiered rates. As one of the largest volume water users in the valley — approximately 6.6 million gallons in fiscal year 2022-23 — had the schools been subject to tiered rates, their water bills would have skyrocketed. In years 2025-2028, the increase in the cost of water for the school district will be similar to the 10%/7%/7%/7% annual adjustment imposed across all categories.
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