New budget and rates adopted for FY2022 & FY2023
At public hearing on June 8, the EBMUD Board of Directors adopted a two-year, $2.25 billion budget that will pay for critical improvements to the water and wastewater systems essential to supporting the community and protecting public health not just during the COVID-19 pandemic but every day. The Board voted 7-0 to adopt the water and wastewater rates.
Water and wastewater rates will increase 4 percent each in the first year, starting July 1, 2021, and an additional 4 percent each in the second year, starting July 1, 2022.
Every two years, EBMUD must examine its budget and rates to provide funding for core water and wastewater operations and capital investments. Read the Biennial Budget in Brief. Also available in Spanish and Chinese.
Over the next two years, EBMUD will invest in ongoing maintenance and improvements to aging water and wastewater infrastructure. EBMUD evaluated all capital projects and shifted priorities to address the most essential infrastructure. This budget funds about $800 million of capital improvements, such as:
- Over $115 million to replace aging water pipelines
- Over $110 million for water treatment plant improvements to improve resiliency and address climate impacts
- Over $45 million to replace large water transmission pipes
- Over $57 million for improvements to the Wastewater Treatment Plant in West Oakland and sewer interceptors and pump stations
Customer bill impacts
The District adopted an increase for water and wastewater rates of 4 percent each in the first year and an additional 4 percent for each in the second year.
How will rates change?
The average single family residential customer now uses approximately 200 gallons per day (8 centum cubic feet (CCF) per month). The average monthly water charges will increase $2.53 in FY22 and an additional $2.66 in FY23.
How will wastewater rates change?
The average single-family residential customer discharges 6 CCF per month of the total water use to the sewer system. The monthly wastewater treatment charges collected on the water bill will increase $0.89 in FY22 and an additional $0.98 in FY23.
The wastewater Wet Weather Facilities Charge, collected on the property tax bill for customers in our SD-1 service area, is based on a customer’s lot size. The annual wastewater Wet Weather Facilities Charge will increase by $4.64 in FY22 and an additional $4.82 in FY23 for the smallest lot size. For the largest lot size, the annual increase would be $16.52 in FY22 and an additional $17.18 in FY23.
Previous workshops and meetings
- Public Hearing – June 8, 2021 (Video)
- Information Session – May 6, 2021 (Video)
- Budget Workshop #2 – March 23, 2021 (Staff presentation and report)(video)
- Budget Workshop #1 – January 26, 2021 (Staff presentation and report)(video)
Proposition 218 requires that a notice about the changes to proposed rates and charges and other fees be mailed to all customers and property owners 45 days before the public hearing on rates and charges held by the Board. EBMUD mailed this notice to customers and property owners in Spring 2021. It explains that the proposed rate increases to the water and wastewater service charges are necessary for EBMUD to recover current and projected costs of its operations and maintenance, and fund capital infrastructure improvements and repairs. Available below in English, Spanish and Chinese.
|Biennial Report and Recommendation of the General Manager FY22 & FY23||5.4 MB|
|Biennial Budget Fiscal Years 2022 & 2023||33.1 MB|
|Biennial Budget Capital Project Supplemental Fiscal Years 2022 & 2023||<1 MB|
Budget Development Process
Watch the Webinar:
"The Cost of Water - A Look at How EBMUD Sets Budget and Rates"
How does EBMUD go about determining EBMUD rates and building a budget? Find out during our webinar “Understanding Budget & Rates” with General Manager Clifford Chan, Director of Finance Sophia Skoda and Budget staff. Video and PDF of presentation available below.
|Budget Rates Presentation: "The Cost of Water" - Dec 2020||5.4 MB|
Explanation of water rates and charges.
Explanation of wastewater rates and charges.
Complete list of water, wastewater, administrative and recreation rates, charges and fees.
Water and Wastewater Rates Cost of Service and Capacity Fee Studies
Water and wastewater rates are established to recover costs included in the District’s operating and capital budgets, meet the District’s policy goals and comply with applicable law, including Proposition 218 and the Municipal Utility District Act (“MUD” Act). Rates should also enhance the District’s ability to provide safe, reliable, and sufficient water supply and wastewater treatment services to its customers over the long term.
The Water System Capacity Charges (SCC) and the Wastewater Capacity Fee (WCF) recover the proportional shares of the costs of water and wastewater facilities for new customers joining the water or wastewater systems or for customers requiring increased water demand or wastewater treatment. The SCC and WCF comply with applicable law, including Proposition 26, California Government Code Section 66013, and the MUD Act.
To ensure that the water and wastewater rates and capacity fees are established in accordance with municipal water and wastewater rate setting principles and in compliance with applicable law, the District hires independent financial consultants to conduct periodic water and wastewater rate cost of service studies and capacity fee studies. The results of these rate costs of service and capacity fee studies are typically updated annually.
Water and Wastewater Rates Cost of Service Studies
Current Rate Cost of Service Studies:
Water and Wastewater Capacity Fee Studies
Current Capacity Fee Studies:
|Water System Capacity Fee Study||<1 MB|
|Wastewater Rates Cost of Service and Capacity Fee Study||1.2 MB|
- Past Water and Wastewater Capacity Fee Studies (2018-Present)
Annual and Biennial Rates
Current Annual and Biennial Rate Reports:
- Past Annual and Biennial Rates Reports (2018-Present)
Water and Wastewater Capacity Funds Reports
- Recent and Past Capacity Funds Reports in Comprehensive Annual Financial Reports (please see Comprehensive Annual Financial Reports section and archived reports)