After tracking our finances in a new and improved format for several years, followed by the acquisition of funds (via bond proceeds) for our new maintenance facility and other capital projects, North City Water District’s Board of Commissioners felt confident in moving to a two year budget.
Both the vehicle replacement account and preservation account shown in the above charts are held for future use, and will only be drawn upon when necessary.
Balancing the 2017 and 2018 Budgets
As we committed to you several years ago, we would rather make small annual, incremental rate increases in order to keep water bills as predictable as possible—rather than waiting as long as possible before making a large rate increase.
Our adopted two year budget includes a 4.7% rate increase for 2017, and a 3% rate increase for 2018, to address ever-increasing cost of water supply, treatment, delivery, infrastructure to meet a growing population, and ongoing maintenance. These rates factor in economic inflation, and an anticipated a wholesale water supply rate increase expected for the 2018-2020 period.
Next year, the District intends to conduct a Cost of Service Study, and a Connection Charge Study, both of which will help us gauge service rates in the future.