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The proposed rate adjustments for an average single-family residential customer using 230 gallons per day amounts to an increase of approximately 21 cents per day. To estimate how this proposal might affect your water bill, please use our treated water rate estimator. This online tool allows you to enter in your meter size, water usage and energy zone and see how your individual account is anticipated to change.
CCWD completes a Ten-Year Capital Improvement Program and Financial Plan that forecasts all expenses and revenues for the upcoming 10 years. We set a budget and evaluate necessary revenues each year to meet that budget, keep increases as low as possible and to keep up with inflationary pressures. The comprehensive approach allows CCWD to prioritize capital investments, manage cash flow, and plan for the use of reserves and supplemental sources of revenue to minimize rate impacts to customers. The delivery of safe and reliable water requires CCWD to make considerable purchases of goods and services (such as treatment chemicals, energy, fuel), all of which have been subject to significant inflationary pricing increases over the past years, as well as continued annual investments to repair and replace the pipes, pumps, storage tanks and treatment facilities that bring this water to your home.
Over the past decade, CCWD has been working to reduce reliance on rate revenues and diversify by generating new non-rate revenues. This diversified income stream of non-rate revenues includes grants, investment earnings, developer contributions for new infrastructure, and other non-operating revenues like livestock grazing, lease agreements, and easements. While each year is different, this non-rate revenue ranges between 20% and 25% of the projected revenues each year.
CCWD has an active grants program where we constantly seek outside funding sources to offset rate-funded costs and has been successful in acquiring over $100 million in State and Federal funds in the last 20 years. Additionally, the Los Vaqueros Reservoir Expansion Phase 2 has the potential to generate new revenue streams from partner agencies.
Operational cost control is an ongoing priority of CCWD, especially when facing cost increases from supplier and regulators. Key changes made to reduce operating costs include debt refinancing at lower interest rates, offseason treatment plant shutdowns, reducing energy costs by using power during non-peak hours, and extending the vehicle replacement cycles to lessen annual cost increases.
The delivery of safe and reliable water requires us to make considerable investments in our water system. Two of the major reasons for the rate increase are the increasing labor costs and the rising costs to maintain the water system. Highly skilled employees with technical expertise are needed to run the complex water system. Rate increases are needed to fund employee salaries and benefits, which represents about 30% of CCWD’s costs.
Rate increases also fund capital projects such as pipeline replacements, treatment plant upgrades and improvements to reservoirs and pump stations. Inflationary pressures continue to drive higher costs of materials, maintenance work, and construction costs. For example, the cost to purchase untreated water averages 7% annual increase. The cost of paving streets after pipeline maintenance work increased 50% last year and is anticipated to continue. CCWD is also investing in technology to enhance and protect the reliability of your water system. These investments help us avoid costly and disruptive interruptions to your water service.
CCWD understands that rate increases can create a financial hardship for customers on a fixed income and we offer a Lifeline Water Rate Program for low-income customers who are over the age of 62 or who are receiving permanent disability insurance benefits from the Social Security Administration. The lifeline program reduces the daily fixed service charge by 50% to qualifying customers and includes some income restrictions. Learn more about CCWD's Lifeline Water Rate Program.
Using water efficiently can help reduce your water bill while sustaining our water supply for future generations. CCWD offers water efficiency resources, rebates and coupons to help customers reach their conservation goals. Call 925-688-8000 for more information on CCWD’s conservation programs.