Why are Water Rates are Up?

1) External Water Rate Increases

Pass Through Rate increases

-Many of the Water Rate Increases came from our water suppliers. Triunfo cannot absorb these increase. They have to be passed on to our customers.

-Oak Park gets 100% of its water from Calleguas Municipal Water District.

-Calleguas gets 100% of its water from Metropolitan Water District.

-Approximatley 50% of the price increases come from our suppliers

-Both MWD and Calleguas raised its water rates because:

    • The infrastructure to import the water is aging and the cost of maintaining this infrastructure is increasing.
    • The cost of water is increasing due to the demand for it.

2) Capital Improvements

-Oak Park Water built a new water tank called the Oak Canyon Reservoir. The new Tank was needed because:

    • The existing Conifer Tank was built on a landslide. This increases the risk of a tank failure due to earthquakes.
    • The existing tank was 40 years old and beyond its useful life.
    • Oak Park did not have adequate storage. The new reservoir added 1 millions gallons of storage.
    • All water rate increases from Triunfo went to pay for this project.
    • -Oak Park Water has an aging infrastructrure. Its pumps are nearly 40 years old, and its house meters are 25 years old.
    • -Oak Park Water has almost no reserves.
    • -Additonal water increases will be needed in the future but I want to hold off till the capital improvement project is fully developed and I want to give the community a break from these increases.

No Operational Cost Increases

-The costs to run Oak Park Water have not caused a water rate increase.