Redwood City increases water rates

Generally, customers that typically use less than 25 units of water every two months will likely see an increase in their bill, and those who typically use more than 25 units of water every two months will see a decrease, according to a staff report. 

Water bills were previously charged by a flat service charge plus a tiered rate based on water uses for single family residences. Now the bills will be largely identical. 

For a single family home, it currently costs $6.90 per unit under 10 units of water, $7.89 per unit for 11 to 13 units of water, $10.30 per unit for 15-20 units of water, and $15.59 for anything above 21 units of water. 

The update means residents will be charged $9.18 per unit, regardless of how many units are used, beginning Jan. 1, 2028. This will increase to $9.73 per unit in 2027 and $10.22 in 2028. A unit is a hundred cubic feet, or 748 gallons.

This charge is on top of the flat service charge, which will also be increased. Single-family homes are currently charged $82.09 in service charge, and this will increase to $92.38 in January. It will then increase to $97.92 in 2027 and $102.82 in 2028. 

“These increases are necessary to cover rising costs for purchasing water, maintaining and upgrading infrastructure, and ensuring the long-term financial stability of the city’s water system,” according to a staff report. 

The city has typically worked to keep rate increases as low as possible, opting usually for smaller, more frequent rates, rather than large jumps. However, the new rates may result in the maximum increase a customer could see be as high as 22%. 

The increase is to help the city work on necessary maintenance of its water systems, sooner rather than later, which is admirable, Councilmember Jeff Gee said. It will also help the city avoid its reserve fund balance plummeting in coming years. 

Some residents raised a concern that a fixed rate that does not depend on water use reduces the incentive for residents to care about water conservation. 

City staff said it is still working diligently to reduce unnecessary water loss in its own systems, and is still promoting residents to use the city’s various water conservation programs. 

The revenue gathered from rate payers goes directly to maintaining the city’s water systems. Without the increase, reserves will fall far below target, according to the staff report. 

The last time the City Council approved water rate increases was a 8% increase effective Feb. 1, 2024, and a 7% increase effective Jan. 1 2025, on average. 

The increase in rates were approved by councilmembers unanimously.