Understanding Your Utility Bill Frequently Asked

Understanding Your Utility Bill
1. The Summary portion is located in the upper right
corner of your bill. It outlines all current charges .
Frequently Asked Questions
What happens if utility rate
increases are not implemented?
The cost of delivering water and sanitation services
would not be covered by the revenue generated from the
fees. Therefore, the City would have to borrow from the
general fund. The City’s general fund is also used for
citywide expenditures such as, the Police Department,
Recreation programs, Building and Planning and special
events. Borrowing from the general fund could mean
that funding to other service areas and programs may be
cut to balance the additional expenditure.
2. The Current Activity Detail is located in the middle of
the bill and itemizes all charges. The Water
Consumption charge varies depending on how much
water is used for the month.
I try really hard to conserve water,
but you continue to raise rates.
Why is that?
Water is considered a commodity. The main driver for
water rate increases is the cost of operations and service.
There are fixed costs associated with the purchase,
treatment, delivery and service of water consumption.
For example, pipe maintenance, pumping and customer
service.
How can I lower my water bill?
3. The Water Usage Graph is located below the Current
Activity Detail. The graph highlights past water usage,
target usage and current usage. Remember, one HCF is
equal to 748 gallons of water.
Water Consumption is a large part of every utility bill.
Your household controls how much water is used daily.
The less water used, the less consumption is charged.
Be sure to check your home for any possible leaks, which
Often lead to higher than normal water bills. You can also
visit www.socalwatersmart.com to apply for rebates.
This site also shares general information about water
conservation tips.
Proposed Rate Adjustments for
Water, Sanitary Sewer, Sewage
Treatment, Street Sweeping and
Refuse and Recycling Services
www.cityofchino.org
If you have questions you would like to ask prior
to the Public Hearing, contact the City of Chino’s
Public Information Officer at 909-334-3307.
Public Meeting
September 15, 2015
A Review of Rates & Charges
The City of Chino provides utility services to 22,000
households, commercial, industrial, business and public
spaces throughout the designated service area. Utility
services are provided 24 hours a day, 7 days a week, 365
days a year.
The city prides itself on providing exceptional service at
the lowest possible cost while maintaining the integrity
and viability of the city’s utility systems. This system
includes; water lines and water consumption, sewer,
sewage treatment, waste refuse and recycling, and
street sweeping.
Per the City of Chino Municipal Code 13.04, the Finance
Department is required to review the condition of the
funds governed by the utility services systems. In
February of 2015, City Council authorized staff to use an
outside agency to perform a 5-year analysis of the utility
rates. The comprehensive review of regulatory and
operating requirements looked at; 1. long-term
infrastructure replacement, 2. adequate funding; 3. rate
structures and options,4. recommendations. At the same
time, staff reviewed street sweeping and refuse &
recycling rates to assess compliance with health
standards and requirements.
Through this process it was determined that the utility
systems are in need of rate adjustments and should be
restructured to fairly and adequately reflect the
individual cost of each service component.
It is important to note: The City’s General Fund has
helped maintain low rates, but is no longer enough to
cover the cost of operations. The General Fund has
made three contributions from 2014-2015:
1. $2 million was committed for infrastructure repairs.
2. $4.1 million was transferred out of the General Fund
for a Capital Replacement plan that will target $2.8
million a year in repairs.
3. $3.5 million from the General Fund was used to assist
with the conversion to a fixed antenna meter
reading system. This system will increase the
efficiency of the reading process.
Where does my money go?
Below is a breakdown of each dollar the average Chino resident pays for their monthly bill.
IEUA Sewage Treatment
Trash & Recycling
Water Readiness to Serve
12₵
19₵
18₵
Water Consumption
33₵
Sewer Maintenance
9₵
Storm Drain
7₵
Street Sweeping
2₵
Water Utility System
The Water Readiness to Serve Charge will see a reduction of 21%-56% depending on meter size during the first year. For
the average Chino resident, this rate will decrease from $29.52 to $23.43 per month, with a 5% increase per month in
year two. This charge helps to maintain the infrastructure that gets water to your home. The Water Consumption charge
will increase from $1.77 per unit to $2.64 per unit with a 5% increase in year two. This total charge will vary depending
on how much water is used each month.
Sanitary Sewer System
In order to generate sufficient ongoing revenues to maintain the physical integrity of the sanitary sewer system, it is
recommended that the current sanitary sewer rate of $9.75 be increased by $1.95 per month, with a subsequent
increase of $1.76 per month in year two.
IEUA Sanitary Sewage Treatment
The City of Chino contracts with the Inland Empire Utilities Agency (IEUA) for sanitary sewage treatment services. The
IEUA has notified the City of Chino, the sanitary sewage treatment fee will be adjusted from $14.39 per month to
$15.89 with additional increases in the next four years. This is a pass through charge from the IEUA.
Trash Collection and Recycling
The City of Chino contracts with Waste Management (WM) for refuse and recycling services. WM has submitted an
annual rate adjustment based on the Consumer Price Index (CPI), increasing the rate by .73% during the first year. The
increase for year two will be based on the CPI when it becomes available in February 2016, with a maximum increase of
5%. The cost of disposal was reduced by $4 several years ago. Over the last two years, this charge was increased by one
dollar each year, recapturing half of the decrease. The sanitation fund can no longer sustain costs for disposal. Therefore,
the landfill disposal charge will increase by $1.00 in the first year and another $1.00 in year two. Bringing the monthly
rate to $3.36 for the first year and $4.36 for the second year. For the average Chino resident, the total current charges
for Trash Collection and Recycling are $21.06 per month, with the proposed changes, these fees are estimated to
increase to $24.12 per month in the first year.
Street Sweeping
For the past several years, the cost to provide street sweeping has exceeded the revenue generated by the Street
Sweeping Charge. In order to reduce costs, the City contracted out the street sweeping services. While this did reduce
costs, the City’s current charge for the service will not generate enough revenue to cover all the operating costs. The
Street Sweeping charge will increase from $1.30 to $1.95 per month the first year and to $2.34 per month the second
year.