Budget, Rates & Charges
For Metropolitan, a stable financial strategy is essential to managing imported water supplies to member agencies that directly or through sub-agencies serve 19 million people and support half of the state's economy. Metropolitan adopts two-year budgets. Our budget, rates, and charges reflect a careful balance between generating revenues in a fair manner to invest in the region's water future and managing rates through steady, modest increases that reflect the cost of service.
Metropolitan sets its water rates every other year to recover the cost of providing water service to its customers in an open and transparent public process, concurrent with the biennial budget review process. Our principal revenue source is water sales, which includes all revenues received by Metropolitan from charges for the sale and availability of water, including our water rates, readiness-to-serve charges, a capacity charge and wheeling/exchange transactions. The current pricing system, which itemizes various costs associated with water delivery, was established in 2003.
The following table summarizes rate components for treated and untreated water: