How Water Rates Are Determined

The Board of Directors establishes Western’s water rates, fees and charges. The Board annually reviews rates and fees to ensure that Western continues to operate cost-effectively while delivering a safe, reliable water supply to your tap. The water bill consists of the per unit charge and the system charge. The per unit cost is the charge for each “unit” of water used. One unit is equal to 748 gallons. The per unit cost charge covers the actual cost of the water. It also covers the cost of treating the water to ensure that it’s safe to drink, as well as the cost of pumping the water. The system charge is a fixed monthly fee that covers fixed operations, maintenance, repair and replacement costs of the entire water system.

Western's Board of Directors held a public hearing Dec. 5 to consider a proposed increase to water rates; the rate increase was adopted.

Western had not increased rates for domestic water in over nine years within its Riverside service area; agricultural rates hadn't risen in more than 12 years. Additionally, rates for domestic water in Western’s Murrieta, March East and Rainbow communities weren’t increased in two, five and twelve years respectively.

Proposed Rate Increase FAQ

Customer Outreach

Why were water rate adjustments necessary?
Western has not increased rates for domestic water in over nine years within its Riverside service area; agricultural rates haven’t risen in more than 12 years. Additionally, rates for domestic water in Western’s Murrieta, March East and Rainbow communities haven’t increased in two, five and 12 years respectively. Western’s service area receives most of its water from the Metropolitan Water District of Southern California. Metropolitan has experienced an increase in costs and has raised rates by almost six percent this budget year. Additionally, energy costs for pumping water throughout the service area have increased significantly. Western is now at the point where the price it pays for imported water purchased from Metropolitan is greater than the price it charges for the water, leaving a significant gap. Property tax revenue currently fills this gap, as well as covering labor costs, system maintenance and funding asset replacement. However, recently the State of California shifted a portion of property tax revenue from local governments, such as Western, due to the State’s budget crisis. This resulted in about a 65 percent reduction in Western’s property tax revenue for two years in a row. Though California voters passed a law preventing this from happening again, the state is still allowed to “borrow” property taxes; many analysts predict that the State may determine a different method to transfer funding from local governments. Western’s Board of Directors believes it is prudent financial management to no longer rely on property tax revenue to subsidize the rising cost of delivering water to its customers. This reduction in Western’s dependency on property taxes will occur gradually over several years. As revenue from rate payers increases to cover purchased water and operating expenses, the revenue Western receives from property taxes will be set aside for major infrastructure improvements and expansions that will benefit all of Western’s customers with improved system reliability.

Where does Western’s water come from?
Western provides water to more than 24,000 customers in Riverside County. The majority of that water is imported from Metropolitan and delivered to Western’s service areas either from Northern California via the State Water Project’s California Aqueduct or by way of the Colorado River Aqueduct. About one-third of the water for customers in Western’s Murrieta service area is purchased from Metropolitan, with the remaining water coming from groundwater. Therefore, continued diversification of Western’s water supply portfolio is crucial because the future of water supply in the Inland Empire is threatened by four potential factors.

What factors could affect future water supply?
• Reduction in water supplies from the Northern California Bay-Delta due to regulatory cutbacks associated with environmental concerns and the potential for catastrophic failure of the fragile levee system
• Reduction of water supplies from the Colorado River due to prolonged drought
• Increased land development and population growth in Riverside County
• Anticipated impacts of climate change on water supply and availability in western U.S.

Water rate increases fund water purchases and system operations, thereby freeing property taxes to fund critical, long-term capital projects including:

• Development of new water supply sources such as the Riverside-Corona Feeder and Perris Valley Pipeline projects
• Expanding investment in recycled water infrastructure
• Implementation of integrated water management, conservation and related master planned improvements

How does this affect customers?
Because each of the communities Western serves has different water sources, uses and infrastructure, the adjustments will affect each separate rate classification differently. On the rate adjustment files below, please note the current water rate, pumping rate and fixed monthly system charge. An example of how typical customers in your service area will be affected by the proposed rate adjustments is also highlighted. Actual billing will vary with usage.

How are water rate increases calculated?
Water rates are calculated based on the cost of the water, the use of the water (domestic or agricultural), the pumping costs required to bring the water to a customer’s service address, labor costs, water quality testing, materials costs and other operating expenses associated with maintaining the water system. The increase in the rates enables Western to recover increasing operating expenses, while at the same time freeing up property tax revenue to be used for major capital improvements to the water system’s infrastructure, allowing Western to operate in a financially prudent manner.

What can customers do to cut costs?
Conservation is one way to reduce costs and preserve our water supply. Providing our customers with the means to utilize each and every drop of water that comes into their homes and businesses is a priority for Western. Since more than half of all residential water use, and a significant portion of commercial water use, is used on outside landscaping, it’s important for consumers to look at ways of reducing outdoor water use and thus their water bills. Western offers: rebates for water-wise products, such as “smart” irrigation controllers and low-flow nozzles; free “California Friendly Landscaping” classes; and the opportunity to see how to incorporate water-efficient plants and products into landscapes with its water conservation garden, Landscapes Southern California StyleSM - a renowned center created in 1989. For more conservation tips, please click to "landscapes". For additional information on specific ways to save water, please call 951.789.5036 or e-mail water@wmwd.com.

Want to know more?
For more information about the water rate increase, please contact the Public Affairs Office at 951.789.5055. A copy of Ordinance 368 is also available for review at Western’s offices located at 450 E. Alessandro Blvd., Riverside.

Rate Adjustments by Area

1 Riverside Service Area Full Service Treated Water

2 Riverside Service Area North Full Service Untreated Water

3 Riverside Service Area South Full Service Untreated Water

4 Riverside Service Area Agricultural Treated Water

5 Riverside Service Area North Agricultural Untreated Water

6 Riverside Service Area South Agricultural Untreated Water

7 March East Service Area Full Service Treated Water

8 Murrieta Service Area Full Service Treated Water

9 Rainbow/Rock Mountain Service Area Full Service Treated Water

Western's water unit charges are based on "power zones" that correlate power costs of pumping the water with the area that benefits.

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You'll need Adobe Acrobat Reader to view maps - just click the icon to download Adobe Acrobat Reader. Please note that the maps may take several minutes to download.

• MAP After opening the map and determining your Power Zone, please use the "magnifying glass" tool to zoom in on your area.
• MAP After opening the map and determining your Power Zone, please use the "magnifying glass" tool to zoom in on your area.

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