Water Rates FAQ's
Water Rates FAQs
The City of Burlingame is proposing to increase the water rates to cover the increases in the cost of wholesale water purchased from the San Francisco Public Utilities Commission (SFPUC), and to pay for the ongoing capital improvements needed to bring the City’s aging water system to current standards. The SFPUC has quadrupled the wholesale rates in the last 10 years and plans on increasing the rates by 30% in the future. Much of the City’s drinking water distribution system is approximately 70 to 100 years old and needs to be upgraded to maintain high water quality, provide adequate pressure, and meet fire protection needs. Although the City has been diligently working to upgrade the aging pipelines for the last several years, more work still remains to be done.
The proposed rate increases are equivalent to 9% in 2017, 7.5% in 2018, and 7.5% in 2019. Click here to see new rates.
Currently, the average monthly water bill for a single family residence is approximately $75.80, based on a standard 3/4-inch water meter using 10,000 gallons of water consumption every two months. With the proposed rates, the average monthly bill for a single family residence would increase by approximately $7.04, to $ 82.84 in 2017.
It is difficult to do a fair apples-to-apples comparison of water bills of different agencies. Agencies with low water use generally have to recover more costs per unit of water than agencies with substantially higher water use, which can spread costs over a higher level of water sales. So it’s not necessarily fair to compare bills of a high-use agency and low- use agency using the same level of use. Each agency must recover its own costs of service. One of the reasons Burlingame’s water rates tend to be a little higher is because Burlingame’s water system is older than that of many other communities, and the City has made and continues to make a higher level of capital investment for rehabilitation and replacement of old and failing water lines. A basic comparison based on a uniform consumption amount is provided below.
It is difficult to do a fair apples-to-apples comparison of water bills of different agencies. Agencies with low water use generally have to recover more costs per unit of water than agencies with substantially higher water use, which can spread costs over a higher level of water sales. So it’s not necessarily fair to compare bills of a high-use agency and low- use agency using the same level of use. Each agency must recover its own costs of service. One of the reasons Burlingame’s water rates tend to be a little higher is because Burlingame’s water system is older than that of many other communities, and the City has made and continues to make a higher level of capital investment for rehabilitation and replacement of old and failing water lines. A basic comparison based on a uniform consumption amount is provided below.
The table below shows Burlingame’s per capita water costs are below mid-range compared to those of other nearby agencies. Additionally, the table shows that the City invests in infrastructure at a much higher rate compared to other agencies, and has lower operating per capita costs than most of the comparison agencies.
Yes. As a result of reduced water consumption due to drought conditions, and the increased cost of operating water systems throughout the state, many agencies are in the process of raising water rates to offset lost revenue. The table below provides a few examples of neighboring agencies’ planned water rate increases.
No other wholesale providers are available to Burlingame. The SFPUC provides the highest quality, reliable source of water to the City at the most economical price with the existing infrastructure in place.
The longer the capital improvements work gets delayed, the more costly it will be to the City and our water customers. Delaying these critically needed repairs and improvements to the aging water system will result in pipeline breaks, emergencies, an unreliable water supply, and water quality problems. Additionally, it will significantly increase the cost of upgrading the system due to construction inflation, and in turn will result in much higher water bills for ratepayers. Further, in compliance with state and federal regulations related to water quality standards, the City is obligated to upgrade and maintain the water system to current standards in order to protect public health and safety.
The City’s capital improvements master plan, which was originally developed in FY 2002-03 and is regularly updated, identified approximately $120 million of high priority capital improvements to the aging water system. Since the implementation of the robust capital improvements program in FY 2002-03, the City has completed approximately $38 million worth of work, including replacing approximately 22 miles of distribution pipelines, upgrading water services, improving pump stations improvements, rehabilitating storage reservoirs, and improving the seismic safety of the system. The remaining backlog of work is estimated at $88 million to replace the rest of the aging system.
The City recently refinanced bonds that were issued to fund water and sewer system capital improvements. For the remaining life of the bonds (final maturities in 2031), the refinancing will save approximately $224,000 annually in debt service payments. As such, the refinancing of the bonds will serve to reduce costs and therefore lessen future rate increases. Additionally, the City has adjusted the capital improvements program size and reduced operations costs wherever possible to minimize the impacts of the water rates on customers. Further, as part of the rate study described above, the City will continue to look for options to further efficiently manage the water enterprise funds.
As part of the Proposition 218 process, the City will hold a public hearing regarding water rates on November 21, 2016; that hearing will be televised. The City will send notifications to all water ratepayers and property owners regarding the public hearing date, time, and place, as well as information regarding the proposed rates. You may address the City Council either by appearing in person at the meeting or sending written correspondence.
No sewer rate increases are being proposed at this time.
Fixed costs include meter reading, repairs, customer service, insurance, and the hydraulic ability to draw water from the system. The Water Enterprise Fund bases water rates on the revenue requirements, which is the amount of money needed for water purchases, operating costs, and capital expenditures as well as a safe level of reserves to ensure that water will be provided to customers as needed at all times. The fixed rate charge and the consumption charge are the components to the revenue collected to operate the system. The City has evaluated the fixed rate structure, and as a result, is proposing to reduce fixed charges effective January 1, 2017.
The costs for larger meters take into account the hydraulic ability to draw water at a higher flow rate from the system, which places a larger burden on the entire system infrastructure. The flow rate of a 1.5” meter, for example, is over four times greater than the flow rate of a 3/4” meter and creates a higher hydraulic burden on the system. Customers can reduce their fixed meter rates by downsizing their meter if it conforms to their water usage needs.
There is no “mark-up” on the revenue requirements of the water system. The Water Enterprise Fund bases water rates on the revenue requirements, which include water purchases, operating costs, and capital expenditures as well as a safe level of reserves to ensure an uninterrupted water supply will be provided to customers at all times.
No, the water rates only include the costs associated with purchasing the water from the SFPUC, operation and maintenance of the system, capital improvements, debt financing, and a safe level of reserves to ensure that an uninterrupted water supply will be provided to customers at all times.
City staff can provide an audit of your bills and usage to advise you how you may be able to reduce your bills. If you have a concern about a possible leak or are investigating the cause of your higher than normal consumption, then please call the Utility Billing office at 650-558-7210 to arrange an inspection to check for leaks. Repairs of the leaks on the property are the customer's responsibility, so it is important to monitor your water consumption to prevent high bills.
The City has not increased water rates since January 1, 2015. The Water Enterprise Fund bases water rates on the revenue requirements, which include water purchase costs from the SFPUC, operating costs, and capital expenditures, as well as a safe level of reserves to ensure that an uninterrupted water supply will be provided to customers at all times. A water rate increase occurs only to offset increased expenses.
No, with the proposed rates, all single family residents in the service area covered by the City of Burlingame will pay the same tiered water rates.
The sewer system in the unincorporated areas of Burlingame Hills is owned and operated by San Mateo County, which provides the sewer services in this area and is responsible for establishing sewer rates, billing customers, and collecting payments. The City of Burlingame does not have any jurisdiction over the Burlingame Hills sewer system, and therefore does not bill the customers in this district. Any questions related to the sewer bills for the unincorporated areas of Burlingame Hills should be directed to the County at (650) 363-4100.