News Details

WVWD Proposes New Rate Structure to Advance Water Supply Reliability

September 23, 2024

Walnut, CA — September 23, 2024 — In response to state conservation regulations, aging infrastructure, rising costs of imported water, and inflation, Walnut Valley Water District (WVWD) worked closely with IB Consulting to develop a new rate structure that addresses these critical challenges. The proposed rate structure ensures the District’s financial sustainability while minimizing the financial impact on customers. This proposed rate structure will be presented at an upcoming special Board meeting for a vote on Thursday, November 14, at 6:00 pm at the AQMD Auditorium in Diamond Bar.

Walnut Valley Water District’s current rate structure is not sustainable. A projected deficit of $3.3 million is expected in 2025, which will increase yearly if the current rate structure is not adjusted. Currently, the reserve structure, which is similar to a rainy-day savings account, has a target of 5 years’ worth of replacement.

As part of this effort, the District strategically decided to reduce its reserve levels, which are typically used to fund emergencies and capital projects. By adjusting the reserve levels, WVWD focuses on balancing cost management with its commitment to maintaining high-quality and reliable water services for the community.

The new rate structure proposes the following changes:

• Decreased Reserves – Instead of saving for 5 years, WVWD will decrease to a minimum target of 2 years. This is in an effort to reduce the financial impact on customers.
• Monthly Meter Charge – This rate will increase for all meter sizes. The revenue is used to maintain the aging water supply infrastructure.
• Monthly Water Usage for Potable (Drinking) and Recycled Water – Due to increases from the agencies that supply WVWD with imported water, these rates will increase to meet that demand. The tiers for residential-single-family homes will also change to mirror the state of California’s water conservation regulations. These charges fluctuate on a customer’s bill based on their water usage.
• Fireline Charges – These rates do not apply to most residential customers. They are based on meter sizes of 1” and larger.
• Pump Zone Charge –This fee applies to customers who live in elevated communities. Pumping water uphill requires energy, which is covered by electricity bills and specialized infrastructure.
• Drought Rate Surcharge – These fees are used only in an emergency or declared drought/water shortage. Their intended use is to encourage customers to use water efficiently during a state or regionally declared drought. The drought rate surcharge may be implemented only under Board action.

A copy of the District’s public notice which goes into detail on the propose rates is available here.

A digital copy of the public notice is available here. A copy was mailed to all WVWD customers.

If this new rate structure is implemented, the overall financial impact on customers will be an increase of about $12 a month for the first year. After that, increases vary based on individual water usage.

The proposed rate structure is the result of an extensive financial review process that included a comprehensive rate study conducted by IB Consulting. To ensure community involvement and transparency, the District hosted three public Water Rates Community Meetings on August 22, September 5, and September 19, where customers were invited to learn about the proposed changes and provide input.

Upcoming Community Informational Meetings

To further assist customers in understanding the proposed rate structure and its impact on their monthly water bills, the District has scheduled additional Community Informational Meetings. These sessions will provide an opportunity for customers to ask questions and receive detailed information about the rate study and the proposed structure. The meetings are scheduled as follows:

• October 23, 2024, at 9:00 AM
  • In-person at WVWD’s Board Room, located at 271 S Brea Canyon Rd, Walnut, CA
• October 30, 2024, at 5:00 PM
  • Virtual meeting via Zoom (Meeting ID: 843 6457 5542, Passcode: 123456)
• November 5, 2024, at 6:00 PM
  • Virtual meeting via Zoom (Meeting ID: 838 7542 1134, Passcode: 123456)

Public Hearing on Proposed Rate Adjustments

The WVWD Board of Directors will conduct a Public Hearing on November 14, 2024, at 6:00 PM at the South Coast Air Quality Management District (AQMD) Auditorium, located at 21865 Copley Drive, Diamond Bar, CA 91765. During this hearing, the Board will consider the adoption of the proposed water rate adjustments, including:

• Monthly Meter Charge
• Water Usage Rates
• Fireline Charges
• Pump Zone Charges
• Recycled Water Rates
• Drought Rate Surcharge

Members of the public are encouraged to participate in the upcoming Community Informational Meetings and Public Hearing. Public input and engagement are essential as the District works to balance financial sustainability while minimizing customer impacts.

Stay Updated

For additional details on the Community Informational Meetings, Public Hearing, or to learn more about WVWD’s rate study, please visit www.walnutvalleywater.gov/lets-dive-in.