On January 1, 2018, the City of Orange will be utilizing a new water rate structure to determine your bi-monthly bill. You will find the details here.
Even after this adjustment, the City of Orange will still have among the lowest water rates in Orange County. Orange has a long history of adjusting fees only when it is absolutely necessary, and even then, only after extensive due diligence and an open public hearing.
So, why was this rate adjustment necessary?
You may not know that our City’s Water services are not funded by sales tax or property tax dollars. Our Water Division budget comes solely from the sale of water directly to our customers. By law, we are not allowed to charge more than the costs of this service, which includes the pumping of water from wells or buying water from third party sources, delivery of water to our customers, and infrastructure maintenance and improvements.
The new water rate structure was formulated by an outside consultant by conducting an independent review, and is based on mathematical forecasts of what they believe the cost of our service will be in the near-to-medium future. This process is mandated by California State Proposition 218, and is required anytime a rate change is proposed.
The new rate structure will ensure that we are able to meet our customer’s needs, continue critical maintenance, and replace aging water infrastructure as necessary to ensure our water system’s quality and reliability.
As always, the City is committed to providing our customers the highest quality water that meets all State and Federal requirements, at the lowest price possible.