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SFPUC has doubled its wholesale water rate over the past five years to pay for <br />regional infrastructure upgrades, and is projected to raise rates by an additional <br />42% over the next five years. <br /> <br />· Replacement of Aging Water Distribution System Pipelines – The City maintains <br />over 260 miles of water system pipelines, many of which are over 50 years old <br />and are approaching the end of their useful lives. The financial projection <br />includes a gradual ramp-up of capital improvement funding for the City’s water <br />infrastructure from $3 million in fiscal year 2016-17 to $6 million per year in 6 <br />years. <br /> <br />The City’s water utility is sustained by the charges collected from customer utility bills. <br />The utility bill has two components which are: <br /> <br />· Fixed Monthly Charge <br /> <br />Fixed monthly charges are based on customer class and meter size. This charge <br />is independent of water use and recovers the substantial costs the City incurs to <br />ensure that water is available at all times to meet customer demands. <br /> <br />· Quantity Charges <br /> <br />Quantity charges are billed based on metered water use. Residential customers <br />are billed according to a 4-tiered inclining rate structure and commercial <br />customers are billed according to a 2-tiered inclining rate structure. <br /> <br /> <br />The table below displays the current and proposed water rates. Impacts to water bills <br />will vary based on customer class and volume of metered water use. <br /> <br /> <br /> <br />Current & Proposed Water Rates <br />Current Water Rates <br />Proposed Rates Effective on and after <br /> August 1 <br />2016 <br />July 1 <br />2017 <br />July 1 <br />2018 <br />Residential Water Rates <br />Monthly Basic Service Charge <br />Fixed monthly charge per Dwelling Unit <br />Equivalent $ 28.49 <br /> <br /> $ 25.39 $ 27.38 $ 29.52 <br />Charge per bimonthly billing period $ 56.98 $ 50.78 $ 54.76 $ 59.04 <br />Water Quantity Charges <br />Billed per hundred cubic feet of metered water use per <br />bimonthly billing period <br />Rate Tiers Current Bimonthly Tiers Proposed Bimonthly Tiers <br />Tier 1 0 - 10 units $ 3.80 0 - 8 units $ 5.27 $ 5.68 $ 6.13 <br />Tier 2 11 - 25 units $ 4.82 9 - 20 units $ 6.32 $ 6.82 $ 7.35 <br />Tier 3 26 - 50 units $ 7.88 21 - 40 units $ 8.77 $ 9.46 $ 10.20 <br />Tier 4 51+ units $ 11.11 41+ units $ 11.57 $ 12.47 $ 13.45 <br />6.4.A. - Page 2