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charges cover the costs of operating, upgrading, and <br />maintaining the water system, including pipelines, <br />tanks, hydrants, and pump stations, which are <br />necessary regardless of individual consumption. The <br />City's Water System Management Plan and financial <br />plan identified over $73 million in critical <br />improvements needed in the next five years to <br />ensure the safety and reliability of Pleasanton's <br />water system. <br />Additionally, the City currently recovers only 32 <br />percent of Zone 7's fixed costs, with the remaining <br />costs covered by variable 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 />Customers are encouraged to visit the City's website, <br />www.PleasantonWater.com/Rates, for more <br />information, including the water rate study, <br />