New CVWD rate increases could send your water bill soaring this summer
New rate increase could send water bills skyrocketing in just a few months.
Higher rates were approved Tuesday by the Coachella Valley Water District for homeowners and commercial users.
The CVWD board of directors Tuesday approved a 1-year rate increase to make up for an estimated $81 million dollar budget shortfall, according to a cost of service study that was conducted by a third-party consultant.
To calculate new rates, head to CVWD.org/ratechanges. The district says the changes will take effect in July, and reflect on customers' bills in August.
A spokeswoman said the rates are set according to California law to charge customers only for the costs incurred by their specific services, and the district doesn't have discretion over which customers will be charged more.
"As our costs increase, you’re seeing those costs increase as well for water," said Katie Evans, CVWD director of communications and conservation. "Some fixed costs need to increase, others decrease totally based on cost allocation."
Some of the money will be put toward capital improvement projects, Evans said, including some decades-old infrastructure that's become badly corroded.
The rate hikes are also expected to cover almost $2.5 million in salary increases within the district. Evans said those raises are part of the annual buget process, and they are entirely merit and performance based.
"For example, our electricity costs have increased; therefore the water costs have increased as well. Another driver is that we are seeing a need for capitol improvement projects, so things like new or rehabilitated reservoirs or new or rehabilitated pipelines."
Some CVWD customers Tuesday said are worried that average home water users' bill will soar as a result of the new rates, while large commercial users' bills could actually decrease.
Jenny Bates said her bill is projected to increase by 25 percent. "How can you justify that commercial rates are enjoying a decrease while single family users are enjoying a hell of a lot more increase than you've said that they would," she asked the board during the public hearing.
"I think that the rates for the domestic user is out of proportion to the other users," said Bill Taylor. "I mean, if you're a huge user, your rates are actually going to be going down."
Assistance is available for customers who are having trouble paying their utility bills. CVWD partnered with United Way to offer a program called "Help 2 Others" or "H2O." Right now, it offers $100 per year in assistance, but the district board Tuesday directed staff to work to increase that amount.
