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Facts About The July 1, 2008 Rate Increase

Q. My household water use is pretty typical. How will the increase impact me?
A. The average household now pays $46.58 per month. With an average increase of $8.67 per household, the new average monthly cost will be $55.25.

Q. How did you arrive at that figure?
A. Here’s how. There are two parts to the increase that were adjusted upwards:

1.Water Service Charge: All homeowners with the standard meter (5/8 by 3/4) will have a flat increase to their basic meter charge. It will be raised from $5.00 a month to $6.65, for an increase of $1.65.

2. Consumption Charge (actual water use): There also will be a domestic water use increase of $0.13, from $0.77 to $0.90 per 100 cubic feet. (100 cubic feet = 750 gallons)

Since the average family uses 5400 cubic feet of water a month, your water use part of the bill can be even less at the new rate if efforts are made to conserve.

Q. How do the new charges compare with other water companies?
A. At an average monthly family household cost of $55.25, Desert Water Agency rates are among the most reasonable in the region. Some comparisons:

Coachella Valley Water District

$57.76

Eastern Municipal Water District

$113.09

Mission Springs Water District

$66.69

City of Indio

$65.72

City of Riverside

$91.12

Western Municipal Water District

$75.73









Q. Why are you proposing to increase our water rates?
A. Our operating costs have continued to significantly increase, while revenues have not. It is necessary to increases rates in order to meet fiscal obligations, and to continue to provide quality water and services to our customers.

Q. Can you give us examples of the costs that are affecting DWA’s operating costs?
A. Yes. Here are the main reasons our costs have gone up:

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Increased State Water Project Contract charges

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Water purchased to recharge our aquifer is in greater demand due to state-wide drought conditions; thus it is more expensive

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Electric power essential to pumping the water from our aquifer

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Materials we use for installations and repairs are more expensive due to worldwide demand (steel, concrete, brass and copper, for example)

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Increased federal, state and local regulatory requirements and permits

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General and administrative increases













Q. How often does Desert Water Agency increase its rates?
A. Very rarely, and only when necessary. This will be only the fifth increase since 1991 (17 years) even though the Consumer Price Index (CPI) has increased every year during this time span, outpacing our rates by as many as 20 points. Even with this increase, the CPI will continue to outpace our rates by at least 13 points. Desert Water Agency’s elected board of directors and staff have avoided increases by managing conservatively while providing high-quality water and excellent service.

Q. Why do customers have a right to protest water rate increases but have no vote when it comes to electric or telephone rates?
A. Unlike other utilities, California water agencies are not subject to Public Utilities Commission regulations. Instead, water agencies must comply with Proposition 218 mandates.

This law requires water agencies to deliver by mail a notification to every tenant or real property owner directly liable to pay domestic water, reclaimed water, sanitation bills and/or groundwater replenishment assessments. Consequently, notices were sent to every property owner of record (per the County), as well as to our water account customers.

All recipients are invited to submit a protest form that lists either the DWA account number or the Riverside County Assessor’s Number. The forms can be submitted any time up until the end of the hearing on June 3, 2008, 8:00 a.m., at the Desert Water Agency Board Room, 1200 Gene Autry Trail South, Palm Springs. There is only one vote for each property.

Q. I understand some customers didn’t receive the notice. What happened?
A. It is a complex process that has built-in limitations.

For example, there is only one place to obtain a property owner listing, and that is the Riverside County Tax Assessors office. With the turnover in titles caused by home sales and foreclosures, the Assessors Office is doing its best to keep its records current. It can possibly take more than 11 months to update records of ownership. Also, in some cases water bills go to a property manager or a homeowner association and not to the actual homeowner (i.e. meters in a condominium or apartment complex). Another complication is leasehold land. If a customer has recently purchased a home, the protest form may have been sent to the land owner. The undeliverable mailings from the Assessor’s list reflects the mobility of our homeowner customers and/or lag between title changes and the time it takes to get the new information into the County’s computer system. We are making every effort to ensure all customers receive a notice.

Q. What if I didn’t receive a notification and form and I would like to protest?
A. Please contact the Agency by phone or come into our office to receive a notice and ballot.

Desert Water Agency
1200 Gene Autry Trail South
Post Office Box 1710
Palm Springs, CA 92263-1710
(760) 323-4971