All drinking (potable) water in Santa Margarita Water District’s (SMWD) service area is purchased from the Metropolitan Water District of Southern California (MWD). The water comes from two sources: the Colorado River Aqueduct, which brings water from the Colorado River to Lake Mathews in Riverside County, and the State Water Project, which is the largest aqueduct system in the world and brings water from Bay-Delta in Northern California.

The Metropolitan Water District of Southern California (MWD) is a consortium of 26 cities and water districts that provides drinking water to nearly 18 million people in parts of Los Angeles, Orange, San Diego, Riverside, San Bernardino and Ventura counties. MWD currently delivers an average of 1.7 billion gallons of water per day to a 5,200 square-mile service area. For more information about MWD, visit www.mwdh2o.com.

SMWD’s largest operating cost - about 44% of its budget - is purchasing imported water, currently (July-August 2009) at an average cost of $617 per acre-foot (326,000 gallons). In September 2009, the average cost will increase to $761 per acre-foot. SMWD has no direct control over MWD’s rates – which are based on statewide water availability and energy costs.

There are many factors involved in the establishment of water and wastewater rates, including the current costs of water and energy from our suppliers. Energy costs are significant in SMWD’s service area because of the hilly terrain and the need to pump water to the communities served and then pump it again to reach wastewater treatment (sewage) facilities.

The SMWD Board of Directors establishes water rates, fees and charges. The Board at least annually reviews rates and fees to ensure the District continues to operate cost-effectively while delivering a safe, reliable water supply to your tap, ensuring compliance with stringent wastewater (sewage) treatment and disposal regulations, and re-use of recycled water for irrigation.

SMWD’s last water and sewer rates increase was in 1994, and was followed by six rate reductions due to the District’s implementing aggressive cost-control measures. Today, SMWD continues to follow these measures. We’ve avoided rates increases for 15 years despite increased water and energy costs, as well as the increased sewage treatment costs due to meeting costly environmental regulations.

The recent rate increase, effective August 15, 2009, is primarily in response to the increased cost of water and power. The District has lowered its operating costs over the last two years through implementation of new technology and consolidation of staff positions. Inflationary cost pressures, statewide water supply issues and environmental regulations have increased the costs for imported water through our supplier, MWD. Since 1997, SMWD’s cost of purchased water has increased by over 60 percent.

SMWD charges all customers a fixed basic service rate for water, sewer and a sanitation volumetric charge. As of August 15, 2009, for a residential account with a ¾ inch meter , these fixed monthly costs are $6.03 for water; $8.72 for sewer; and $1.00 per unit for the sanitation volumetric charge. Additionally, there is a tiered rate structure for the volumetric charge for water based on the amount of water used by residential customers. For additional information, click here to view rates for residential and commercial customers.

To encourage conservation and cover the higher cost of buying water from MWD at a higher rate, a tiered rate system for actual units (ccf) used is in place for water usage. This system imposes higher rates on customers who use larger amounts of water. One unit (ccf) equals 748 gallons. The per-unit cost charge covers the water delivery cost. It also covers the cost of treating the water to ensure that it’s safe to drink, as well as energy costs for pumping the water to customers.

The first step in reducing water costs is reducing water use, particularly for irrigation (which is typically 60-70% of water use). Customers can lower their bills by implementing conservation techniques and fixing any household leaks. If you suspect a leak or feel that your water bill is extremely high, an audit can be performed where a District representative will visit your home and conduct a thorough review of your water meter, water pressure and irrigation habits. The District will then provide recommendations on how to conserve water and reduce your monthly bill. For more information on cost savings, look for tips from our OPERATION CONSERVATION program where you can learn how to save water and money.

Effective August 15, 2009, SMWD will be implementing the new, adopted rates for Fiscal Year 2009/2010. Additional rate increases could be implemented based on future MWD water cost increases and/or the Consumer Price Index (CPI) rate of inflation, however, no additional increases are planned for at least the next year.

Customers pay a power surcharge if they live in an elevated area within the District where water is pumped to their location. The surcharge passes-through the cost the District pays for electricity to pump the water. The surcharge rate is determined by the pumping zone. There are three pumping zones in the District that are assessed a surcharge. The surcharge rate can range from $.12 per CCF to $.34 per CCF. The rate applies to domestic and non-domestic water. For more information on power surcharge rates, please click here.

The District does not have any control over the cost it pays for water purchased from the Metropolitan Water District (MWD) through SMWD's wholesale water supplier, Municipal Water District of Orange County (MWDOC). Effective August 15, 2009, the District is passing through a charge of $0.28 per ccf of water usage which reflects the MWD cost increases for water in 2009.

The lowest price tier provides the most cost-effective water and sewer rates within SMWD. A single-family residence customer falls under this category when water usage is 0-6 ccf (1 ccf = 748 gallons) within one billing cycle. A multi-family residence customer (condominium or apartment) falls under this “First Tier” when usage is 0-3 ccf within one month’s usage. Click here to view SMWD’s water and sewer rates.

To fund water and sanitation infrastructure for the various Improvement Districts, SMWD has issued General Obligation Bonds (with the exception of Talega, which issued Community Facility District bonds to finance the infrastructure). General Obligation Bonds are paid for by the area directly benefitting from the facilities and payments (principal and interest) to the bondholders are collected through the County of Orange Treasurer-Tax Collector’s office via property tax bills. SMWD develops the annual tax rates to repay the bonds based on the Treasurer-Tax Collector’s assessed value of the land. Property owners may see variances in the tax rates for these Improvement Districts when assessed property values increase or decrease. To learn more, click here.

SMWD is a leader in using recycled water for landscaping and has been successful in obtaining water from additional sources in the local area to supplement supply. The District uses recycled water for irrigation of slopes, parks, golf courses, schools and medians within its service area. The District recycles water at its three treatment plants, producing over 2.9 billion gallons of recycled water each year for landscaping irrigation to homeowners associations and other municipalities within the District. In addition, SMWD collects urban return (runoff) water from Oso Creek, Dove Creek, and Horno Creek to blend with the recycled water as an additional source for irrigation. The use of recycled water and urban return flows from the creeks offset the need to import drinking water from MWD for irrigation.

Gray water includes wastewater from showers, bathtubs, bathroom sinks, laundry tubs and washing machines, but not from toilets, kitchen sinks or dishwashers. The latter sources typically have high bacterial content, making them unsuitable for irrigation. Gray water comprises 50 - 80% of residential wastewater.

California regulators have recently loosened the requirements for using gray water for certain irrigation purposes by issuing an emergency decision that allows residents to create simple water-reuse systems without a construction permit. For more information about California’s new standards for gray-water systems, go to http://hcd.ca.gov/codes/shl/graywater_emergency.html.