| On Tuesday May 13, 2003, the City Council approved
rate increases for both water and sewer utilities. The City's
8% water rate increase is due to increases in the wholesale
rates charged to the City of Santa Clara by the two regional
water suppliers. The Santa Clara Valley Water District will
increase their rates by 10% and the San Francisco Water Department
will raise their rates by 25%, both effective July1, 2003. The
utility's reserve funds will be used to minimize rate increases
to our customers but future increases are expected in order
to meet current and future wholesale price increases.
Sewer rates are also to increase. Council approved a two-year
increase of 6% each year. These increases are required to
fund several major capital projects to improve the reliability
of the jointly-owned San Jose - Santa Clara Water Pollution
Control Plant.
For comparative purposes, under the approved rate increases
a typical single-family residential consumer per month will
pay approximately $1.80 per month more for their water billings
after July 1 (to $24.21). Sewer service fees for single family
residential will be raised by $.50 per month to $8.85 in the
first year and by $.53 per month to $9.38 per month per household
on July 1, 2004. Even with adoption of these increases, Santa
Clara's combined water and sewer utilities' cost for all residential
users will still remain the lowest in the nine Bay Area counties.
1 Using 15 hundred cubic feet (hcf) per month.
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