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costs covered byvariable charges. This creates <br />uncertainty for the City, as water use varies with <br />rainfall, drought, and changes in customer behavior. <br />To improve revenue stability and reduce financial <br />risks, the City must recover 100% of Zone 7's fixed <br />costs as a direct pass-through of the rates set by <br />Zone 7. <br />The City acknowledges that this change will have a <br />greater impact on low-water users; however, it is <br />necessary to comply with legal requirements and <br />ensure reliable funding for critical infrastructure. <br />Customers will continue to be charged variable rates <br />based on usage, promoting conservation and <br />savings. <br />In 2022, the City decommissioned its groundwater <br />wells and began purchasing all of its water from the <br />same source at the same cost. Based on recent <br />court decisions like Patz.vi.San.Diego, the City would <br />be unable to legally justify cost differences for tiered <br />rates since all water comes from the same source at <br />the same cost. Therefore, the City has proposed a <br />uniform rate structure for all customers to ensure <br />greater consistency and reduce legal risks. <br />13 <br />October 6, <br />Yes <br />Oppose such large rate increases; concerned <br />Proposition 218 requires that water rates be based <br />2025 <br />about potential elimination of the senior <br />on the actual cost of providing service and prohibits <br />discount <br />agencies from collecting more than necessary. <br />