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<br />."'. <br /> <br />1.5 Billing System <br />Prior to 2004, the District used a fixed fee plus a four tiered increasing block rate structure where <br />after a specified amount of water use is exceeded, the rate per thousand gallons increases. <br /> <br />A new system was implemented in 2004. This system also incorporates a four tiered inclining <br />block rate structure and includes a water budget for each customer based upon actual lot size. <br />Water budgets have been calculated for each customer type based on a reasonable amount of <br />usage needed to meet both indoor and outdoor needs. The water rate (unit price per thousand <br />gallons) a customer pays remains fixed until usage exceeds the budget. As shown in Table 4 the <br />increase in unit price depends on the percentage by which each customer exceeds their budget. <br />The District has approved a 12% rate hike in the 2005 rates shown below. These will be <br />implemented on April I, 2006. <br /> <br />bl 2 <br /> <br />tI h <br /> <br />S <br /> <br />Ta e4 005 Rate Structure or t e New Water Rate iystem <br />Level Percentage Exceedence Cost/Thousand <br /> Gallons <br />I Within Budget Amount $2.50 <br />2 100.01% - 120% $3.25 <br />3 120.01% - 140% $4.00 <br />4 Over 140.01% $7.00 <br /> <br />The water budget for each customer depends on customer type and lot size. Budgets for <br />commercial customers that do not have any outdoor landscaping only account for indoor use, <br />whereas budgets for residential homes assume an indoor usage of 9,000 gal/month and also <br />account for landscape irrigation during the summer months (May - October). The total monthly <br />budget is the sum of the indoor use and outdoor irrigation. <br /> <br />In order to calculate the budget for outdoor irrigation, the District assumes 27 inches of water (17 <br />gal/square footlyr) is adequate to maintain green lawns during the irrigation season. This value <br />is multiplied by a percentage of the lot size that is assumed to be irrigated to determine the <br />quantity of water needed for irrigation. Table 5 lists the assumptions made to calculate water <br />budgets for a variety of customers. <br /> <br />T bl 5 W <br /> <br />Bd A <br /> <br />f <br /> <br />a e ater u 1get ssumpllOns <br /> Type Indoor Outdoor <br />Single family homes less than 9,000 gal/year 50% of lot is irrigated <br />1.25 acres <br />Single family homes greater 9,000 gal/year 25% of lot is irrigated <br />than 1.25 acres <br />Outdoor Commercial n/a 85% of lot is irrigated <br />HOA open space n/a 85% of lot is irrigated <br />Indoor/outdoor commercial Meter reading 85% of lot is irrigated <br />Indoor Commercial Meter reading n/a <br /> <br />- 7 - <br />