Water and wastewater rates support the work EBMUD does to bring you high-quality, reliable service.
At a public hearing on June 9, 2015, the EBMUD Board of Directors adopted a budget of $1.83 billion for fiscal years 2016 and 2017 (July 1, 2015 – June 30, 2017) , allowing us to provide the highest quality water and wastewater services for customers while maintaining fair and reasonable rates.
The budget funds needed investments in aging infrastructure such as replacing aging pipelines and rehabilitating reservoirs, improving information technology and accounting for the impacts of extended drought.
A series of public board workshops held over the past year form the foundation of the budget. The workshops examined short- and long-term impacts of operating and capital needs, financial policies, fixed versus variable costs and the effects of the ongoing drought. The budget and rates took effect on July 1, 2015.
The General Manager's report on FY 2017 rates and charges
At a public hearing on June 14, 2016, the EBMUD Board of Directors adopted the Report and Recommendation of the General Manager for revisions to the water and wastewater system schedules of rates and charges, and other fees not subject to Proposition 218, and regulations for fiscal year 2017, in compliance with Municipal Utility District Act requirements.
The revisions to the fiscal year 2017 rates, charges, fees and regulations are not subject to Proposition 218 requirements.
The proposed changes include updates to the Water System Capacity Charge, the Wastewater Capacity Fee, the Account Establishment Charge, Charges for Special Services, the Public Records Act Fee Schedule, and Real Property Use Application Fees.
Drought surcharge endsWith our reservoirs refilling and water supply projections sufficient to meet demand, EBMUD declared an end to our drought emergency on May 10, 2016. The EBMUD Board of Directors evaluated customer conservation and our healthy water supplies and voted to ease the drought level to Stage 0, indicating normal water supplies, and lift the temporary drought surcharge from customer bills effective July 1, 2016.
Drought surcharge expires
Customers will no longer pay the 25 percent Stage 4 drought surcharge effective July 1, 2016. However, customers will pay a 7 percent rate increase approved by the board last year to fund ongoing services and investments in our aging infrastructure. The average customer's water bill will still drop by $4.42 per month because of the expired surcharge.
Although we have a healthy amount of water now, the drought had other far-reaching effects on EBMUD’s finances. Just this fiscal year alone, the drought cost EBMUD $75 million. This included the purchase and treatment of supplemental water supplies, lost water sales revenue, and added operational costs including conservation outreach. The drought surcharge, which will expire July 1, helped recover $50 million. Cost savings plus withdrawals from EBMUD’s savings account and belt-tightening will bridge the remaining shortfall.