Average residential customer water cost may increase by $16.87 per month.
Recently, the city initiated the Proposition 218 process that must be followed prior to adopting any proposed water rate adjustment. Here in Monrovia – and throughout the San Gabriel Valley – water rate adjustments will be needed in order to absorb new fees being passed down to the nearly 30 water producers in our region. These fees are being levied on the city by the Main San Gabriel Basin Watermaster and the Upper San Gabriel Valley Municipal Water District (Upper District) in order to address the water supply shortage in the Main San Gabriel Basin following the historic, decade-long drought. By instituting these fees, the Watermaster was able to purchase 40.7 billion gallons at a cost of over $100 million to replenish the groundwater aquifer that supplies our region and return the Basin to a healthy level to ensure a continued water supply.
Based on these new water production costs, the city will be hosting a Public Hearing to consider new, increased water rates. The Public Hearing is scheduled to occur on Jan. 16, 2018, and if approved, the new cost structure will be instituted effective March 2018.
Provided in the table below is a water rate review summary for a typical single-family residence with a 5/8 inch or 3/4 inch size meter. Please note that the majority of the city’s water customer base is comprised of single-family residential customers. And based on the proposed rate increase, the typical single-family residential water customer (who uses 15 units of water per month) will see a monthly increase in their water bill of $16.87 in Calendar Year 2018 (effective March 8, 2018).
However, it is important to note that the proposed water rate structure does take into account usage related costs, which means that the less water that is used by an individual residence, the less costs that will be incurred.
In addition, at build out in FY 2021/22, the new cost for water is expected to increase by around $37 a month more than what the typical residential customer pays today. We know that this water rate adjustment will cause additional financial strain on residents and business owners, and it is important to note that a senior discount and economic hardship discount will continue to be offered to residents for whom the proposed fee adjustments would present an undue burden.
Also, it is important to emphasize that all of these new costs are pass-through costs which will be paid to the San Gabriel Basin Watermaster and the Upper San Gabriel Valley Municipal Water District for the purpose of importing water into our region. A video explaining the drought related issues that have driven the need for this particular rate increase can be found online at the city’s dedicated water conservation website.