Effective August 1st, the Indian Wells Valley Water District will be implementing the 3.5% increase contained in Ordinance 96 that was scheduled to take effect February 1st 2016. This increase is the second of three recommended in the 2015 Cost of Service Study. The initial 4.5% increase took effect February 1, 2015. Subsequent increases of 3.5% were approved to take effect February 1, 2016 and February 1, 2017. Earlier this year, the Indian Wells Valley Water District Board of Directors elected to postpone the February 1, 2016 increase based on financial projections for the District at that time.
The Board has had to reassess this decision due to decreasing revenues from water sales over the past year and a half as a result of ongoing conservation and also significant capital expenditures scheduled for the next year, most notably the construction of photovoltaic solar at six of the District sites and installing an Automated Metering Infrastructure, or AMI, system throughout our service area.
Though the solar project is projected to result in significant savings over the life of the project, financial benefits won’t be realized until the sites are fully operational.
The AMI system will provide enhanced capabilities for both the District’s customers and staff to work together to improve water use efficiencies and continue to build on the conservation results achieved to date.
The Indian Wells Valley Water District takes its responsibility very seriously to provide its customers with clean, safe water and want to assure you that this relatively small increase is necessary to allow staff to continue to focus on maintaining infrastructure while taking advantage of opportunities and technology advances to improve the efficiency of operations.