Rate Increase FAQ
How does the fire surcharge ($9.67 per month, found on everyone’s bill as part of the cost of water service) fit into the proposed rate structure?
The water rate schedule tables included in the Notice of Prop 218 Hearing do not include the CZU Fire Surcharge (although it is included in the Single-Family Water Impacts FY 2024 chart). This is because the surcharge is technically not part of the rate structure; more importantly, the surcharge ends in 2026, and will not be extended. The revenue generated from the CZU Fire Surcharge, as well as costs of CZU fire repairs in excess of the $5M raised by the surcharge, have been factored into the revenue model used to calculate the proposed rates.
The FSLVW calculations shown in the table below also include the CZU fire surcharge. Note that SLVWD’s water rate schedule tables for 2027 and 2028 do not reflect the reduction in total charges that results from the sunsetting of the fire surcharge.
Previous Question: Why raise the fixed base rate so much?
Next Question: PART 3: CUSTOMER IMPACT