Water and Wastewater Rate Adjustments

Photo: California Department of Water Resources/John Chacon 2011

January 20, 2016 Public Hearing

After completing a Prop 218 process, which requires a written notice to be sent to all water and wastewater customers and a 45 day protest period, on January 20, 2016, a public hearing on Morgan Hill's water and wastewater rate adjustments was held.  After the hearing the City Council adopted a resolution approving the water and wastewater rate adjustments. The new rates will take effect on March 28, 2016.

Thank you Morgan Hill Community

The City Council would like to thank the Morgan Hill Community for its involvement in the water and wastewater rate adjustment process, which began in April 2015. As communicated in the 2015 statistically valid community survey, ensuring safe, healthy and reliable water and wastewater systems is a top priority for the community.  The City Council's action on January 20, 2016 is to ensure the City maintains these essential community assets.
How does the rate adjustment affect me?
The average single family monthly utility bill will increase by approximately $31.00 over the next 5 years.  This is based upon average water use of 14 units and an average wastewater use of 8 units with no zone charges.

Please refer to the chart below.
  Current Rates (1) April 1, 2016 Jan 1, 2017 Jan 1, 2018 Jan 1, 2019 Jan 1, 2020
Water $40.15 $46.84 $50.24 $58.37 $62.60 $67.14
Wastewater $49.98 $49.98 $50.98 $52.00 $53.04 $54.10
Total $90.13 $96.82 $101.22 $110.37 $115.64 $121.24
Total Percentage Increase 7.4% 4.5% 9.0%(2) 4.8% 4.8%
(1) Per City Council direction, 3.5% increase for wastewater not implemented in January 2016.
(2) Higher percent increase in January 1, 2018 due to an assumed 10% increase in water consumption ( conservation level drops from 30% to 20%)
Booster and Lift Station Charges
A small percentage of Morgan Hill's water/wastewater customers will also experience an increase to their current wastewater lift station charge and/or new water booster station charges. To view information on these charges and the areas affected by them please view the links provided below.

View wastewater lift station charge increases.
View wastewater lift station service area map

View water booster station charges
View water booster station service area map
What is the process for deciding on new water and wastewater rates?
The City conducts a thorough and transparent public process prior to implementing any rate adjustments. An extensive rate study and financial analysis has been prepared by independent financial consultants to determine true costs of service and what rate adjustments are needed.

  1. (Completed November 18, 2015) City Council reviewed financial analysis and rate design alternatives and provided input to guide development of fair and equitable rates for water and wastewater system users.
  2. (Completed December 2, 2015) With a finalized rate design, City Council accepted the rate study and approved the Proposition 218 notice to property owners.
  3. (Completed December 5, 2015) The Proposition 218 mailers were sent to all property owners.
  4. (Completed January 20, 2016) Property owners have 45 days to protest under the Proposition 218 process before a public hearing is held.
  5. (Approved January 20, 2016) If the rate adjustments are approved, proposed water and wastewater rates ordinance is introduced.
  6. At the following regularly scheduled meeting, City Council considers adoption of the water and wastewater rates ordinance.
  7. 60 days after the new rates go into effect. Customers see the new rates on the first billing cycle thereafter.