Officials Studying Possibility of Alternate Water Billing Structure

Officials have recently received a water budget rate study report aimed at analyzing alternative rate structures to reduce costs to city finances.

The study, compiled by Raftelis Financial Consultants, explores various water rate structures that would reduce the amount of costly, imported water, which would promote the city's capital projects without making a tremendous impact on customers' lifestyles, city officials said.

The study suggested a Water Budget Rate structure, which reportedly can reduce wasteful use of water and can allocate limited supplies to customers by determining usage on an individual basis.

The city is facing high water supply costs that stem from peaking during the summer months. During this period, the city is forced to purchase expensive water from the Metropolitan Water District of Southern California, the study showed.

Glendora officials are studying ways to reduce consumption of MWD resources and lessen the burden on city finances.

Implementation and administrative costs are reportedly high with the use of the Water Budget Rate structure, however. The study further elaborated that a "Simplified" Water Budget would allow for greater savings, possibly offsetting the cost to implement.

Based on Single-Family customer class data provided by the city, savings could be as low as $1.3 million or as high as $2 million over a decade. Under the "Simplified" Water Budget, 68 percent of customers would either see zero, or decreased charges on their water bills, the study showed.

To implement the "Simplified" version of the Water Budget Rate could mean a savings of $125,000, officials said.

If city officials decide to continue with the rate study, Raftelis would move forward with a study of all water accounts, beyond the Single-Family class, with Glendora.

To read the report in full, click the link.