What are the primary reasons we have to raise our rates every year?
  1. Water utility is a financially self-supporting enterprise, and water rates are the main source of revenue for the water fund. Rates need to be set at levels adequate to fund the cost of providing service. 
  2. Cost of service, which includes providing operational and maintenance of the system; groundwater pumping and treatment costs from the City’s wells; operational and conveyance costs of treated surface water supplied by MID’s Modesto Regional Water Treatment Plant; required state mandated water-related studies and planning documents.
  3. Cost of compliance with new public water supply regulations designed to protect public health and deliver safe and reliable drinking water, in particular groundwater contamination treatment in City wells, for both existing and future customers.
  4. Construction projects to correct existing deficiencies and aging infrastructure, including replacement of 50+ year-old wells; replacement of old leaky and undersized steel water pipelines with PVC pipes; installation of water treatment at well sites to meet State and Federal water quality standards; replacement of undersized and deficient water mains.
  5. Maintains reliability and sustainability of the City’s water system.
  6. Meet City’s financial policies and maintaining 25% operational reserves.

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1. What are the primary reasons we have to raise our rates every year?
2. Do we have to have a rate increase every year or can we stagger them more and have every other year?
3. What happens if we don’t raise the rates every year?
4. Where do we get our water from?
5. Do we buy or sell our water? If so, from/to whom?
6. Do we have water quality issues and if so, what are they, how serious, how do they get addressed?
7. Is our drinking water safe and reliable? How does the City verify that?
8. What happens to our water and our rates in the event of another drought?
9. Why do some surrounding cities have lower rates?
10. Is there assistance to help with this increase?
11. How much will monthly rates increase for the average customer?