New budget & rates approved for FY 2020 & 2021
Rate increase for fiscal years 2020 and 2021 support water and wastewater infrastructure improvements for the East Bay
Budget and rates resources
The East Bay Municipal Utility District Board of Directors adopted a two-year, $2.3 billion budget that will pay for critical improvements to the water and wastewater systems that serve East Bay residents and businesses. The Board voted 5-1 to approve the rates subject Proposition 218 and 6-0 to approve the rates not subject to Proposition 218.
To fund these improvements, water rates will increase 6.5 percent on July 1, 2019, and 6.25 percent on July 1, 2020. On the wastewater side, the typical homeowner will see a 3 percent increase on July 1, and an additional 4 percent increase in 2020.
For customers, the effect on bills depends on how much water they use. An average household using 200 gallons a day will see an increase of $3.62 per month in July 2019, and an additional increase of $3.73 per month the following year. A low water user (100 gallons daily) would see an increase of $2.56 per month for the first year and an additional $2.64 per month starting July 2020. The bill for a high water user (averaging 600 gallons daily) will go up $9.86 per month the first year and an additional $10.05 starting July 2020. For wastewater, the increased charges and fees for the average homeowner will be under $1 per month for FY2020 and an additional $1.24 in FY2021.
The District operates and maintains a vast network of pipelines, storage and treatment facilities to deliver water to customers and provide wastewater service. From the Sierra Nevada foothills to the San Francisco Bay, this network has an estimated replacement cost exceeding $15 billion. Maintaining high-quality service requires ongoing reinvestment in reservoirs, aqueducts, pump stations, pipelines, sewer interceptors, digesters and treatment plants.
This budget continues investments in and maintenance of aging infrastructure and provides a plan for long-term financial stability. Over the next two years, we will invest more than $800 million to improve our aging water and wastewater infrastructure. The budget was developed after analyzing a portfolio of investments and determining the highest priority projects based on regulatory compliance, safety, cost-effectiveness and improving service to our customers. Almost 67 percent of the FY20 & FY21 budget relates to building and paying for capital.
EBMUD is committed to fair and reasonable rates. As a not-for-profit public agency, state law only allows EBMUD to recoup the costs necessary to operate and maintain our system and ensure that it is stable and safe for the future. The District follows Proposition 218 guidelines for rate setting and public hearings, conducts cost of service studies every 10 years using an outside consultant, and is audited annually by an independent accounting firm. As a result, EBMUD has one of the highest bond ratings for any water or wastewater agency nationwide which benefits ratepayers by reducing debt costs. The fiscal 2020 and 2021 rate-setting process formally began in January 2019 with a series of public Board workshops and concluded June 11 with a public hearing and Board vote.
Process culminates in June
The EBMUD Board of Directors held a public hearing on June 11, 2019. After the public hearing, the Board of Directors adopted the Fiscal Year 2020 & 2021 budget, rates and charges. The budget and rates take effect July 1, 2019. The staff reports and presentations are available here:
Budget Workshop #1 – January 22, 2019 Staff report and presentation
Budget Workshop #2 – March 26, 2019 Staff report and presentation
The General Manager filed the Report and Recommendation on FY20 & FY21 Rates, Charges & Fees on May 14, 2019.
Proposition 218, enacted in 1996, 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. This notice is currently being mailed to customers and property owners. 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 necessary capital infrastructure improvements and repairs. This notice is available below.
The service area map on page 3 of the Notice of Public Hearing depicts the District's water and wastewater service areas. The text on page 3 lists all the cities where the District provides wastewater service. The footnote on page 1 inadvertently omitted Alameda.
File a Protest
The protest period closed June 11, 2019.
Proposed Budget Documents
|Budget Fact Sheet Fiscal Years 2020 & 2021||<1 MB|
|Proposed Biennial Budget Fiscal Years 2020 & 2021||4.0 MB|
|Proposed Biennial Budget Capital Project Supplemental Fiscal Years 2020 & 2021||<1 MB|
Budget development process
Current FY 2018 & 2019 Budget and Rates
Explanation of water rates and charges.
Explanation of wastewater rates and charges.
Complete list of water, wastewater, administrative and recreation rates, charges and fees.