Bi-Monthly Water Rates to Increase January 11
As part of the City of Garden Grove’s ongoing commitment to provide safe, reliable, and sufficient water to the community, while maintaining adequate City finances for public services and capital replacement and improvement projects, the Garden Grove City Council has adopted an ordinance establishing a new 5-year schedule of water rates and fees effective in 2024. Residential water customers will see an increase of approximately $4.78 in their bi-monthly water bill beginning Thursday, January 11, 2024.
While rates vary by water usage and other determining factors, the bi-monthly water bill includes a minimum water usage charge, capital improvements charge, and commodity delivery charge. On average, residential customers use 22 units of hundred cubic feet of water bi-monthly, resulting in approximately $112 in water charges every two months. With the new water rate increase, the average bi-monthly water bill will be approximately $146 in the next five years.
In addition to local groundwater provided by the Orange County Water District (OCWD), the City purchases imported water from the Municipal Water District of Orange County (MWDOC) and Metropolitan Water District of Southern California (MWD). These wholesale providers adopt new rates and fee adjustments on an annual basis and are part of the City’s annual automatic adjustments applied towards incremental increases incurred.
Lack of additional funds needed to cover future increases would result in the City not being able to maintain and operate the water system, repay bond indebtness, and comply with state- and federal-mandated regulations.
Currently, the City has six wells with treatment plants in operation, and one well with a treatment plant underway, to remove per- and polyfluoroalkyl substances (PFAS) from local well water, which are a group of thousands of manmade, heat-resistant chemicals that are prevalent in the environment and are commonly used in consumer products to repel water, grease, and oil, adding new maintenance expenses to meet all state and federal drinking health standards.
Recently, the Environmental Protection Agency issued a proposal to adopt stricter regulations and lower the maximum contaminant levels, requiring the building of an additional three to five wells with treatment plants. The operation and maintenance of the treatment plants will cost approximately $10 million annually.
Every five years, the City performs a water rate study, ensuring sufficient and safe water is provided to residents and businesses at the lowest rate possible. In March 2023, the City hired FG Solutions to conduct a water rate assessment, projecting revenue requirements to maintain the City’s water through 2028.
In June, July, and August 2023, the Garden Grove City Council held study sessions to review the water rate study, including an overview on system facilities, existing water rates, and the financial status of the City’s water budget. In September 2023, a public workshop to discuss the results of the water rate study and proposed water rate increase was held, followed by two public hearings during the November 28 and December 12 regular Garden Grove City Council meetings.
On Wednesday, December 13, 2023, the City began notifying water customers of the new water rate increase via customer water bills.
For details, including the CARE Senior Discount program, visit gg.city/water-rate.