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1. Why is CVWD proposing to raise rates?

CVWD is proposing rate increases and changes to the rate structure that are fair, reflect the true cost of service and promote financial stability. This takes into consideration reduced revenue and increased costs, including the largest capital improvement project in District history.

2. Is CVWD planning to raise rates for the next five years?

CVWD is proposing five-year plan that includes rate increases and changes to the rate structure that are fair, reflect the true cost of service and promote financial stability. This takes into consideration projected cost increases over the next five years. The future proposed rates will need to be re-evaluated and approved each year by the Board of Directors, following additional public input, before going into effect.

3. How is my money spent?

CVWD is a government agency legally required to limit rates only to what is needed to provide water-related services. Domestic rates fund the operation and maintenance of the domestic water system, which includes pumping, testing, treating and delivering reliable, high quality drinking water. It also includes the operation and maintenance of nearly 100 wells and 2,000 miles of pipes, a robust conservation program and administrative costs.

4. When would the new rates go into effect?

If the Board of Directors approves the changes, the new rates and rate structure will go into effect July 1, 2016. The long-term plan outlines five years of increases to accommodate increased costs, but those proposed rates will need to be re-evaluated and approved each year by the Board of Directors following additional public input.

5. Didn’t CVWD just increase rates last year with the drought penalties

CVWD has not increased its domestic water rates since 2010. The drought penalties that went into effect in 2015 are a temporary tool to encourage additional conservation and help fund conservation programs. Only 25% of our customers pay a drought penalty, on average, and anyone can avoid them by reducing water use. CVWD’s Board has stated that drought penalties will go away when the state lifts the conservation mandates.

6. Why is CVWD proposing five years of rate increases?

CVWD is facing two major financial challenges right now. First, short-term mandatory conservation is resulting in reduced revenue and the long-term effect of the drought is likely to result in permanent conservation. This is great news from a water management perspective, but CVWD needs to find ways to meet the same level of service in providing high quality water with less revenue.

In addition, CVWD is facing an estimated $250 million in capital costs associated with the state’s new chromium-6 drinking water standard. CVWD is pursuing low-interest financing (State’s Drinking Water State Revolving Fund) to help keep costs and rates as low as possible. Successfully obtaining this type of financing requires a long-term revenue plan. Although the long-term plan outlines five years of increases, those proposed rates will need to be re-evaluated and approved each year by the Board of Directors following additional public input.

7. How will this impact my bill?

Residential customers, businesses and large irrigation customers will be impacted differently. A typical homeowner use uses 20 CCF of water and meet their water budget will see their monthly water bill increase by approximately $6, under the proposed changes.

8. How can I provide input?

CVWD welcomes participation and input throughout the process as the Board of Directors considers the proposed rate increases and changes to the rate structure. You are welcome to attend any public meeting of the Board of Directors or several public workshops to provide input.