New Water and Wastewater Rates - 2021

The City of Grover Beach is dedicated to providing safe and reliable water and wastewater services in a cost-effective manner. The City is investing in water and wastewater infrastructure and resources in order to assure the City will continue to have a sustainable water supply and reliable water and wastewater systems that can adequately serve the community now and in the future.

Monthly rates charged to customers on a bi-monthly basis are the primary source of revenue to operate our water and wastewater systems. This revenue provides funding for annual operating costs, capital projects to improve our infrastructure, and adequate reserves to plan for emergencies. The future water rates must also provide funding for the City’s share of costs for the Central Coast Blue recycled water project. Central Coast Blue is a regional water sustainability project that would create a new, high quality, and reliable water supply for residents in Arroyo Grande, Pismo Beach, Grover Beach, and Oceano. The City is working with partner agencies in designing an advanced water purification facility that would create a high-quality water source to supplement local supplies and provide sufficient water supplies even in times of water shortage or drought.

 A recent study concludes that revenue projections from the water and wastewater utilities based on existing rates are insufficient to meet the revenue requirements for FY 2021-22 through FY 2025-26 and to keep pace with increasing operating and capital improvement costs, and debt service obligations. As a result, the study recommends multi-year increases in wastewater rate revenues of 2% beginning on July 1, 2021 with annual 2% adjustments each July 1st through FY 2025-26 which is approximate to the current rate of inflation. The recommended water rates include a meter charge to reflect the fixed costs of operation and maintenance and a consumption charge based on variable costs per 100 cubic feet of water consumption. Recommended water rate revenue increases include a 2% increase on July 1st 2021 and subsequent 2%, 3% 4% and 4% increases on July 1st each subsequent year. 

 The City Council will conduct a public hearing on May 10, 2021 to consider increases to water and wastewater rates as recommended in the study. If approved, the new rates would go into effect beginning July 1, 2021. The average bi-monthly bill for residential water and sewer customers using 14 units per billing period is projected to decrease from $197 to $169. Approximately 68% of residential customers are in this category. However, non-residential customers with higher water consumption and residential customers who use in excess of 14 units per billing period will see increases in their bi-monthly rate given the cost-of-service analysis in this rate study and the proposed transition to tiered rates beginning July 1, 2021.

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