Water rates will increase less in Foster City and parts of San Mateo than originally projected.

EMID calculated its rates for the year that runs from July 1, 2011 through June 30, 2012 based upon a projected per unit price quoted by the San Francisco Public Utilities Commission (SFPUC) in April. EMID had already mailed notices to its customers about the rate increase when it received word in May from the SFPUC, from which it purchases its water, that the per unit rate would not be as high as originally quoted. Recalculating the water consumption price based on the new cost means that the rate increase will not be as high as first indicated.

In its preliminary budget, the Estero Municipal Improvement District had projected that the base price per unit of water would need to increase 35% beginning July 1, 2011 in order to cover the costs to provide water. Based on revised calculations, staff is now recommending only a 27% increase to the base price.

“The difference between the original projected increases and the increases that will be considered by the District Board in June saves the typical household about $2.00 per month,” said Finance Director Steve Toler. “The District only wants to increase the consumption price sufficient to cover its costs to buy water from the SFPUC. Lowering the base consumption rate to $2.66 per unit rather than charging the original proposed rate of $2.83 per unit is a responsible move on behalf of our customers.”

As a public agency, the Estero Municipal Improvement District is not a profit-making entity. Rates are based upon the cost to provide water and water system service to customers.

EMID continues to encourage customers to reduce water consumption for the long-term interest of protecting water resources. Several water rebate programs are available to help water customers implement water-saving devices to reduce their water consumption and save money in the long run.

Prior to adopting the water rates, the EMID Board of Directors will hold a public hearing about the proposed water rate increase on Monday, June 6, 2011 at 6:30 PM in the City Council Chambers, 620 Foster City Boulevard, Foster City. Interested parties are invited to attend the meeting or watch on Foster City Television, Comcast Channel 27, ATT Channel 99 or streaming at www.fostercity.tv.