Before the tiers were established, the District reviewed and grouped operating expenses. After reviewing these costs, it was determined that three tiers were needed because the District has three sources of water, each with different costs associated with use. General operating costs were applied proportionately to each tier.
The rate structure has been designed so that the District is not dependent on Tier 3 revenue for operational stability. Beyond the actual cost of delivering Tier 3 water, revenue from this tier will be used to expand our water conservation programs and increase system efficiencies. We will work hard to help our customers that are using water in Tier 3 to become more efficient, so they can reduce or eliminate the use of this most expensive water.