Roseville, Calif.- In an effort to maintain financial stability and continue to deliver clean and plentiful water to Roseville water customers, Environmental Utilities is proposing changes to the water utility rate structure and is recommending a two-year rate increase.
The proposal includes a change from tiered to uniform rates, increases in consumption rates to meet rising expenses, and the elimination of the 15 percent water shortage surcharge that took effect in June 2014. Roseville City Council will consider this proposal at its December 2 council meeting.
Public invited to attend community meetings to learn more about these proposed changes
In early 2015, the city recommended a water rate increase of 8 and 8.5 percent over a two year period starting July 1, 2015. However, in April 2015 California’s Fourth District Court of Appeals issued a decision in Capistrano Taxpayer Association v. City of San Juan Capistrano. As a result, the initial rate case was withdrawn from consideration and the City evaluated its water rate structure and rates in light of the decision.
The proposed water rate structure changes and rate increases are based on strict cost of service analyses conducted for the water utility. The rate increase is a result of several key considerations including:
- Rate restructuring that transitions Roseville water rates from tiered volumetric rates to uniform volumetric rates to better align the rate structure with the San Juan Capistrano decision
- Necessary revenues needed to meet the utility’s financial and service obligations for ongoing operation and maintenance, debt coverage bond covenants, water system rehabilitation, and maintaining healthy reserves
- Cost recovery as a result of a fourth consecutive year of a drought and reduced water supplies and sales, stringent state-mandated water conservation regulations, and drought-specific cost increases
The rate restructuring portion of the bill will include a noticeable change for customers. Rather than paying increasingly higher charges based on increasing tiered volumetric rates, customers will pay the same price-per-unit regardless of how much they use.
Should City Council approve the rate restructure and increase, customers would see the change starting January 16, 2016.
- A typical single family home using 12 CCF (hundred cubic feet) of water can expect to see their monthly water bill increase about $5.52 a month, from about $26.81 to $32.33. An increase in July 2016 would increase the bill to about $36.25. To mitigate the cost impact of the transition to a volumetric uniform rate, the 15 percent water shortage surcharge would no longer be applied to water bills.
- Commercial customers would see a 10 percent increase to the current volumetric uniform rate, nominal adjustments to monthly service charges, and the elimination of the 15 percent water shortage surcharge. Effective July 1, 2016, a 12 percent rate increase would apply to both the monthly service charge and uniform volumetric rate.
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