Irvine Ranch Water District Implements Prudent Budget

July 10, 2012 - PRLog -- Rates Remain Among Lowest in County
The Irvine Ranch Water District Board of Directors has adopted a $111 million operating budget for the 2012-13 fiscal year. The operating budget provides the funds needed to supply potable, recycled water and sewer service to IRWD customers. Modest increases in rates and charges for these services take effect July 1.

“One of IRWD’s critical business objectives is to keep costs and rates as low as possible for all customers,” said IRWD Board President Mary Aileen Matheis.

Over the past two years, IRWD’s operating budget has decreased slightly due to reductions in expenses to offset uncontrollable cost increases.

This year, increases in IRWD rates and charges to our customers are primarily due to uncontrollable cost increases that include an average seven percent increased in the cost of imported water from the Metropolitan Water District of Southern California through the regional wholesaler, the Municipal Water District of Orange County. In addition, there is a five percent increase in the cost of groundwater from the Orange County Water District and sewer charge increases have been passed through to our customers from the Orange County Sanitation District. Despite these increases, IRWD consistently has among the lowest rated in Orange County.

IRWD takes the budget process seriously and is committed to being strategic, responsible and transparent. Over a three-month period, the budget is discussed and revised in a series of public meetings with the IRWD Board of Directors. These meetings are open to the public and participation is encouraged. In addition, each IRWD customer was mailed a Notice of Proposed Water and Sewer Rate Change. These notices, along with east-to-use bill calculators were also placed on the IRWD website.

Despite the economic downturn, IRWD finds itself in a strong financial position. This does not happen by accident, but through careful fiscal planning over the course of many years. IRWD uses a long-range planning approach that is similar to a family who regularly puts money aside over time to pay for the eventual cost of their children’s college education. By planning for the future, it’s not necessary to dramatically increase customer rates to pay for new infrastructure (pipes, pumps, reservoirs, etc.) for the inevitable repair and the replacement of these types of facilities as they begin to age.

Residential Rates for 2012-13

In keeping with our pledge to keep rates as low as possible, residential water and sewer rates increased minimally throughout IRWD. For the typical customer, the average total cost of all water and sewer rate increases per month are as follow: Irvine Ranch rate area is $1.05 (based on an average usage of 18 ccfs*), Los Alisos rate area is $1.20 (based on an average usage of 18 ccfs) and Orange Park Acres rate area is $1.79 (based on an average usage of 62 ccfs)

Water rates will increase in the Irvine Ranch rate area by $.02 per ccf from $1.22 to $1.24. These was no change to the existing low volume rate of $.91. In the Los Alisos area, the base rate will increase by $.09 and change the current base charge for water from $2.05 to $2.14. In the Orange Park Acres rate area the base rate increase by $.02 per ccf from $1.74 to $1.76.

The fixed water service charge will increase by $.55 in the Irvine Ranch and Orange Park Acres areas, but will remain the same in the Los Alisos area. Sewer rates in the Irvine Ranch and Los Alisos areas will increase to $17.20 per month, from $16.90.

Complete Rate Information is Available Online

IRWD posts the annual operating and capital budgets online, as well as other financial documents that provide transparency for our customers. Our financial information is offered in a clear and easy-to-understand format. For more information about IRWD, including our budget and a complete list of new rates and charges, please visit our website, or call an IRWD customer service specialist at (949) 453-5300.

*One ccf is one hundred cubic feet of water, or 748 gallons.