What is the need for a 6% increase in revenue?

As a public agency, the District does not earn a profit. Rather, the rates and charges collected from customers go directly to pay for 1) the cost of service, 2) emergencies/contingencies, 3) employee salaries and benefits, and 4) compliance. If we don’t consistently keep up with these costs, it might mean higher increases in the future. 

1) Cost of Service – this includes activities like reinvesting in capital facilities, to make sure our intakes, treatment plants, pipelines, and everything in between function properly. It also includes things like customer service, education programs, and conservation rebates. In addition, we pay more every year to the Bureau of Reclamation's Central Valley Project for our source water from the Delta.

2) Emergencies/Contingencies – healthy reserves help us avoid steep rate increases during drought emergencies. Also, if we’re not prepared when emergencies strike, we potentially risk our ability to continue providing reliable service.

3) Employee Salaries and Benefits – we know this one tends to spark questions, but the truth is that you need hardworking, qualified people behind your water systems. Our employees earn a competitive wage for the Bay Area, and increases are consistent with the consumer price index.

4) Compliance – like any organization, there are new regulations and requirements from the State and Federal governments all the time. Staying in compliance is a priority.

After performing our annual review, we’re recommending a 6% revenue increase in order to maintain the high-quality service you expect as a District customer.

Show All Answers

1. How do the changes impact my water bill?
2. Does this impact all customers the same?
3. What is the need for a 6% increase in revenue?
4. Where will the 6% revenue increase go?