Determining price of water for users of small Mutual Water Co

  • 22 Aug 2023 6:28 PM
    Message # 13244373

    The above subject should have a question mark at the end of it. We are a very small water company, 34 homes. We are using pricing which is outdated and needs to be increased.

    Is there a standard formula for figuring the price of water for a small mutual water company?

    Our system went in in 1987 and, of course, our bylaws are out of date as well. But that's another subject for another time.

    Any input is greatly appreciated.


  • 19 Feb 2025 3:42 PM
    Reply # 13465260 on 13244373

    Our bill has two parts.  Capital Reserve part (which is $750 annual towards the eventual replacement of the pumps & tank in future).  Amount set by board of directors many years ago when we realized we had no capital reserve but tank and pumps had clean bill of health and expected life of 15+ more years.  Second part is based on last year's operating costs + 5% and if we have good years (meaning revenue far exceeded expenses) we go 0% or even -5% to keep the operating costs about even with revenue income (currently $1700 annual).  So we adjust every February based on prior year results.   We have no meters so cannot bill by water use of individuals. 

©California Association of Mutual Water Companies
1370 N. Brea Blvd., Suite 224
Fullerton, CA 92835 

Phone:  714-709-4040

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