Water Rate Information

City of Milpitas' Proposed 2023 to 2027 Water Rate Adjustment Details

It's becoming more expensive to keep up with maintaining our aging drinking water system due to increasing water purchase costs, unanticipated inflation levels and ongoing repair and replacement costs. On average, we deliver 11 million gallons of drinking water per day through over 200 miles of pipes, many of which are beyond their useful life and need to be repaired or replaced. We purchase treated potable water and treated recycled water from outside agencies, which is getting more expensive each year.

For the average single family, drinking water rates will increase 6.4% from July 1, 2023 through and including July 1, 2027.

Your water rates pay for:

  • Capital, operational, and maintenance costs to keep the water system functioning efficiently. These things take care of the underground pipes, water tanks, reservoirs, and other system elements we use to deliver your water.
  • Purchasing treated drinking water from outside (wholesale) agencies

Key Drivers for Proposed 2023 to 2027 Water Rate Increases

  • Replace or rehabilitate water assets and facilities: $16.5 million
  • Detailed water system condition assessment: $2.7 million
  • Replace pipelines to improve flows for fire suppression: $6.5 million
  • Conduct Citywide cross connection survey

For more information, please review our Water and Wastewater Rate Study (PDF).

Residential Drinking Water & Recycled Water Bill Components

  • Fixed meter charge - Based on size of meter serving the property; helps fund operations and maintenance
  • Volumetric charge - Charged in dollars per hundred cubic feet (or per 748 gallons) of water delivered to a property; also helps with fixed costs as well as costs like purchasing water
  • Capital surcharge - Each water customer pays based on each hundred cubic feet of drinking water delivered to their property; funds capital program to replace and refurbish the essential assets in the drinking water system. Customers who receive recycled water do not pay this surcharge

Sample Bimonthly Bill for Average Drinking Water Use

Current Versus Future Water Bill ChartFollowing is a sample bill for an average Milpitas residential water user that outlines how the change will impact them.

Full Water Rate Schedule

Details about the full proposed rate schedule can be found in the Water and Wastewater Rate Schedule (PDF).

Proposed Recycled Water Rate Increase

The regional wastewater facility treats wastewater which is either discharged to the San Francisco Bay or recycled for industrial and irrigation use.