FY 2020-2021 Budget and Rates

Fiscal Years 2020 & 2021 Budget and Rates

The Board of Directors adopted the fiscal years 2020 and 2021 (FY20 & FY21) biennial budget and rates on June 11, 2019 which included budget appropriations, rates, charges and fees for two fiscal years.

On May 26, 2020 a workshop was held to review the FY21 budget, rates, charges and fees not subject to Proposition 218. Staff will also present revenue and expense projections and emerging financial issues.

On June 9, 2020 the Board considered affirmation of the FY21 budget and a public hearing was held on the proposed FY21 rates, charges and fees not subject to Proposition 218.

Please visit the board meetings page for more information.

Budget & Rates Approved for FY20 & FY21

Rate increase for FY20 & FY21 support water and wastewater infrastructure improvements for the East Bay  

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.

Bill impacts 

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 FY20 and an additional $1.24 in FY21.

Critical investments  

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 and FY21 budget relates to building and paying for capital.  

Shown below are the budget documents that will provide a comprehensive overview of the FY20 and FY21 budget. New for FY20 and FY21 is the Biennial Budget in Brief, a concise summary of the budget which promotes better communication and is easier to understand.

FY20 and FY21 Budget Development Process

After the public hearing, the Board of Directors adopted the FY20 and FY21 budget, rates and charges. The budget and rates take effect July 1, 2019. Shown below is an overview of the entire budget development process.

Shown below are the Board presentations for the budget.

Budget Workshop #1 – January 22, 2019   Staff report and presentation

Budget Workshop #2 – March 26, 2019   Staff report and presentation

Rate setting                                       

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 FY20 and FY21 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.

For more details about how EBMUD's water rates are developed see Understanding EBMUD's water rates.