Water Rate Adjustment
In 2016, the City of Livermore’s Water Resources Division approached Raftelis Financial Consultants to conduct a Comprehensive Water and Wastewater Cost of Service Study to develop a financial plan, and design rates for the City’s utilities over the next five years.
In the Cost of Service Study, RFC found that existing wastewater rates are not sufficient to fund the Wastewater Operating Fund or the Wastewater Replacement Fund. Without revenue adjustments, the Water Resources Division would fully deplete wastewater reserves by Fiscal Year End (FYE) 2021 and no longer be able to fund capital projects. Based on the recommendations provided by RFC in the Cost of Service Study, the City Council approved new sewer rates for the next three fiscal years until June 20, 2020 as Ordinance 2054 by the City Council on June 12, 2017. The rate adjustment will result in an overall 7% revenue increase for the Water Resources Division to meet financial needs to enable ongoing sewer operations.
The Livermore Municipal Water Utility purchases all of its water supplies from water wholesaler, the Zone 7 Water Agency. The cost of purchasing wholesale water supplies is set by the Zone 7 Water Agency, and is passed through by Livermore Municipal Water Utility to customers. On October 19, 2016, the Zone 7 Water Agency adopted a new rate structure for fixed and variable (volume-based) components effective January 1, 2017.
On June 26, 2017, Livermore’s City Council authorized the continued pass through of Zone 7 Water Agency’s cost increases related to the purchase of water through June 30, 2022.
Wholesale and City Municipal fixed rates are based on the size and type of water meter. These fixed costs are related to providing customers access to safe, clean water delivered at the appropriate volume and pressure to each home and business 24 hours a day, 365 days per year. Many water agencies have a fixed charge component to their bills; for the Livermore Municipal Water Utility the fixed charge component is the City Meter Service Charges.
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Understanding Your Water Bill
As of August 1, 2017, Livermore Municipal Water Utility customers' Current Charges are found in the Account Detail box of your water bill. Current Charges lists the Livermore Municipal Water fixed charge first according to meter service and size, followed by Livermore Municipal Water’s variable charges noted as City Distribution Cost according to water volume use per 100 cubic feet (unit) for zero to 7 units at Tier 1 rates and more than 7 units at Tier 2 rates.
Zone 7 Water Agency's pass-through fixed and variable components are listed under Wholesale Cost. The wholesaler’s fixed charge is set according to meter service and size followed by the wholesaler’s variable charges set according to total amount of water use (volume) per 100 cubic feet (units) at Zone 7 Water Agency’s calendar year rate.
In August 2017, Livermore Municipal Water Utility customer bills will change from previous adopted rates and meter service charges to the adjusted rates and meter service charges adopted on June 26, 2017. The City Distribution Cost for this billing period includes use prior to August 1st and volume-based rates at the previous 3-tier structure. The August bill will also include use after August 1st billed at new rates under the new 2-tier rate structure. Meter service charges will also change to new rates during this same period. 7 Water Agency Wholesale Fixed and Variable Charges remain the same during this period. Please call 960-4320 with related billing questions.
Livermore Municipal Water and Zone 7 Water Agency
Each Agency's Water Rate changes are implemented according to their budget cycles and upon notice to customers, as required by law. The Livermore Municipal Water rates may be adjusted in June annually. The cost of purchasing water from Zone 7 Water Agency may be adjusted in January annually. The wholesale water charges, passed through by the City to customers, are shown as separate line items on water bills. The wholesale volume based rate for calendar year 2018 is $2.04/CCF.
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Residential – Single Family
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Wholesale Fixed Charges
City Meter Service Charges
A deposit is required for water service for an applicant who is not the owner of the premises.