The City of Santa Clara Water & Sewer Utilities is committed to maintaining critical infrastructure and complying with all applicable rules and regulations to deliver safe, dependable, and efficient water, sewer, and recycled water service to our customers. The City strives to maintain the affordability of these services. Despite implementing various cost savings measures, the City needs to increase rates for these utilities in the upcoming fiscal year.  Rates are determined based on the proposed budgeted expenditures for both capital and operational expenses in a given fiscal year.  The use of, or replenishment of financial reserves during a given fiscal year will also influence rates. In addition, in order to calculate rates, the Utilities prepare estimates of the amount of water that will be sold and sewer discharged in the coming Fiscal Year.  These factors are important since the majority of the revenue from the rates go to pay for purchasing water and the operating and capital expenses at the Water Pollution Control Plant.

Water Rate Changes 

Purchasing water is 62% of the operating cost of the water utility. The increased cost of water and increased capital projects to replace infrastructure are the reasons behind water rate increases.

As of July 1, 2016, potable water rates increased by 18.9% from $4.16 per hundred cubic feet (hcf) to $4.95 per hcf. One hcf is equal to 748 gallons. The table below provides the minimum monthly charge based on size of the water meter. For more information, see the Water Rates page.

Recycled Water Rate Changes

As of July 1, 2016, recycled water rates increased by 20%. Irrigation customer rates increased from $2.56 per hcf to $3.07 per hcf. Industrial customer rates increased from $2.19 per hcf to $2.63 per hcf. For more information, see the Recycled Water Rates page.

Sewer Rate Changes

The cost of treating sewage and capital projects at the plant and within the City accounts for 64% of the sewer rate. The remainder of the sewer rate is to pay for the equipment and personnel to operate and maintain the City's sewer collection system.

Residential Monthly Sewer Charges 
As of July 1, 2016, the residential monthly sewer charge increased from $37.94 per month to $41.65 per month. 

Changes in Commercial and Industrial Rates
Commercial and industrial rates for monthly sewer charges were also increased. The change for each rate is dependent on the customer type. The sewer rates for the various customer types can be found on the Sewer Rates page.

Reasons for Increases in Monthly Sewer Charges

• Wastewater Treatment Capital Projects: $101.4 million in fiscal year 2016-17, of which Santa Clara has the obligation for $15.1 million.      
• Critical sewer replacement and capacity projects within the City total $2.7 million in fiscal year 2016-17.
• Capital Reserves are insufficient for needed projects. 

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