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Council Approves Water Rate Increase
(en Español)
April, 2008
During the water rate adjustments that have been made over the last few years, the City has consistently indicated that similar increases would be occurring each year for the next several years.
In line with that pronouncement, the City Council approved a water rate increase for 2008, at a public hearing on April 28th, 2008.
The new rates will be effective on June 20th, 2008. All bills generated on or after that date will be impacted by the new rates.
The monthly basic service charge, which is currently $15.60 per month, will increase by about 2.9%, to $16.05. This rate adjustment to the monthly basic service charge is necessary to pay for increasing costs of equipment, supplies, salaries, and services required for the operation and maintenance of the water system, or what might be called our “fixed costs.”
The monthly consumption rates (the amount you pay per unit of water used) will increase by an average of approximately 9% for both residential and commercial customers (a unit of water is 748 gallons). The revenue from the
consumption rates pays for the purchase of wholesale water, power to run the
pumping systems which transport the water, capital improvements to the water
system, our active water conservation program, and the cost of our recycled
water program.
Changes to Water Rates
Single Family Monthly Water Bill Comparison (including the
monthly service charge increase)
As an example, in a household that uses 15 units, the monthly bill will increase by $3.05. If a household uses 25 units, the increase will be $5.05. Here are more examples:
| Water Use Level |
Monthly Cost at Current Rate |
Monthly Cost at New Rate |
Monthly Increase |
| 10 units |
$33.60 |
$35.65 |
$2.05 |
| 15 units |
$45.10 |
$48.15 |
$3.05 |
| 25 units |
$68.10 |
$73.15 |
$5.05 |
| 75 units |
$294.35 |
$319.15 |
$24.80 |
Why This Water Rate Increase is Necessary
Redwood City buys all of our community’s drinking water from one source – the Hetch Hetchy regional water system, administered by the San Francisco Public Utilities Commission (SFPUC). The proposed rate increases are needed to offset a projected 6 - 11% increase in the wholesale cost of water from the SFPUC, and increased debt service associated with financing the City’s Recycled Water Project.
The City must pass these cost increases along to our customers; however, it’s important for our customers to know that these efforts will enable the City to continue to provide the most reliable and efficient water supply to our community possible, both for existing customers and for the generations of the future.
And, the wholesale water cost increases are expected to continue, so Redwood City customers will continue to see additional minor rate increases in the coming years.
(Go to Water Services main page)
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