What would happen if we didn't raise the rates?

As shown in the chart below, the Water Funds cash balance would be negative by 2025.  We would be forced to eliminate our investment in necessary capital improvements in the distribution system and other areas.  This would lead to more frequent infrastructure failures, water service interruptions, water loss, street damage and property damage.  The end result would be higher operating costs, thereby reducing the funds now slated for infrastructure investments.  By 2027, we would not be able to pay debt service.  Reserve funds would be exhausted leaving the water system vulnerable to emergencies such as earthquakes.

Operating Costs

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1. Why do water rates need to be raised?
2. What would happen if we didn't raise the rates?
3. Why is a service charge included on my bill?
4. Why don't multi-family, commercial, and irrigation customers have tiered rates like single-family residential?
5. Why does the City bill for water every two months instead of monthly like most of my other bills?
6. Why is $8 million needed per year for Capital Improvements?
7. Why doesn't new development pay for capital improvements?
8. What are the major costs to operate the water system?
9. Does a water customer in Napa pay more or less than similar customers in neighboring communities?
10. You asked me to use less water in 2022 so why are my rates going up?