Understanding Water-Budget-Based Rates

Residential water budgets are calculated based on each customer’s lot size, landscaped area, real-time localized weather data, and the number of residents in each home, among other factors. Residential water budgets vary from month to month based upon the weather. Commercial water budgets are calculated based on a three-year rolling average of each commercial customer’s monthly use. If your business has landscape irrigation needs, an irrigation water budget will be calculated based on the size of the landscaped area and real-time localized weather data, among other factors.

The only customers who may see increased water bills are those whose use exceeds their water budget, and the District is working closely with those customers to help them reduce their water use and lower their water costs. Are you over your water budget? Click here.

Customers now have the freedom to use their water budgets as they see fit. If you would rather water your lawn more and use less water elsewhere that’s fine, as long as your overall use remains within your personalized budget.

All you have to do is call the District at (949) 831-2500 to provide some basic information, and we’ll do the rest. (Variance Form)

MNWD has taken several steps to make sure your water budget is accurate. Please review your water bill or call (949) 831-2500 to see if the data we are using for your property is correct, and please let us know if we need to adjust your budget for factors such as the number of permanent people in your home. We are committed to making sure everyone has a personalized water budget that provides the water necessary to meet each customer's actual needs. Click here for a variance form.

We can adjust your water budget to account for more permanent residents in your home, more irrigated landscaping than we show, special medical equipment or needs, horses or other large livestock, and other specific situations. Click here for a variance request form.

The variance process to temporarily or permanently adjust your water budget is very simple. All you have to do is fill out this form and we will do the rest.

Absolutely. We want to make sure every customer has a water budget that provides enough water to meet their actual needs, based on 65 gallons per permanent resident per day. If the number of people in your home changes, please call us at (949) 831-2500 and we will adjust your water budget accordingly.

Our variance policy accounts for livestock that are 100 pounds and larger (typically horses) by providing 15 gallons per animal per day, which is based on veterinary studies. Large dogs typically do not consume enough water to necessitate an increased water budget, as studies have found the daily water needs of dogs of all sizes and activity levels are typically less than one gallon per day. We are confident the indoor water budgets of 65 gallons per person per day are sufficient to meet the water needs of your pets.

Pools lose about as much water to evaporation as a lawn of the same size uses (click here to read the study), so pools are accounted for in customers’ water budgets. Refilling a pool, however, may push your use above your water budget and result in higher charges. Customers can click here to request a variance to fill their pools once every three years. Once you have received your bill, you may submit the variance request form to the conservation department. Spas are not qualified to receive a variance. This is because the typical spa holds approximately 400 gallons of water, and depending upon your usage, refilling a spa would cost approximately $1.

It is highly unlikely short-term guests will cause you to go over your budget because our indoor water budgets of 65 gallons per person per day is more than a typical individual needs. If guests do cause you to exceed your water budget, please call us at (949) 831-2500 and we can discuss a potential variance.

There are six simple steps to take if you have exceeded your water budget, and MNWD is here to help. Click here to get started.

Not MNWD.  Decades of local and national studies have determined how much water the average individual uses each day and the irrigation needs of various types of landscapes.  We want to make sure everyone’s water budget accurately meets their needs.  We’re not asking our already water-efficient customers to use less water. 

If the leak takes your use above your water budget, there will be higher charges for the water used in excess of your water budget. But if the leak is fixed before the next bill, you will be able to request a credit by contacting the District at (949) 831-2500.  Please wait to see if the leak caused you to exceed your water budget before requesting a variance.

• Residential Variance Form
• Commercial Variance Form

If you have a weather-based irrigation controller (Smart Timer) that can access daily ET (evapotranspiration) readings sent from the manufacturer, it will automatically adjust your irrigation patterns so you stay within your outdoor water budget. You can also follow the time-tested approach of only watering your grass if it doesn’t bounce back when stepped upon, and shutting off your sprinklers for several days after it rains (or even if it is just cloudy and cool), which should be enough to keep you within your water budget. If you need help setting up your timer, please call our conservation department for assistance at (949) 831-2500.

No. Water budgets are based on an efficient level of water use given your current situation (amount of landscaping, weather, etc.), and do not take into consideration your prior use. We are not asking customers to further cut their water use, just to continue with their current conservation practices.

Unfortunately, rolling over water use from one month’s budget to the next does not work for commodity-based utilities such as water. That’s because MNWD incurs greater power and chemical costs during peak times of the year, such as the summer, and rolling over water budget credits would make it very difficult for the District to generate the necessary revenue at the time our power and chemical costs are due.

Tiers three, four and five are priced higher because the cost of supplying water at these inefficient and unsustainable levels is significantly higher. MNWD hopes the higher pricing gets the attention of the small number of customers who are wasting water and sends a clear economic signal. Only customers whose water use exceeds their water budgets will be charged the higher tiered rates, and the District works closely with these customers to help them reduce their water use and lower their water costs.

No, the Water-Budget-Based Rate Structure does not impact sewer rates.

It’s unfortunate, but it is the result of the higher price we must pay for water, electricity and chemicals. MNWD does not have access to any local water supplies, so we must purchase all of our water from the Metropolitan Water District of Southern California, which imports water from Northern California and the Colorado River. Metropolitan has dramatically raised its rates in recent years because its supplies have been constricted by drought and regulations, but it still must cover its operating expenses. MNWD has absorbed many of these increases, but unfortunately, some of these costs must be passed on to our customers.

Revenues generated from customers using water in excess of their water budget are used to develop programs to help all customers become more water-efficient, provide rebates for the purchase of water-efficient products and to acquire water necessary to meet this excessive demand. These efficiency program funds are not used for employee compensation or benefits. The purpose of Water-Budget-Based Rates is to help all customers achieve efficient water use – NOT to generate additional revenue.

The District believes that efficient water users should not have to subsidize customers who use water inefficiently. Under the previous billing system, the cost to deliver and treat unnecessary (wasted) water was spread to all customers in the form of higher rates. With Water-Budget-Based rates, only customers who use water above their base allocation will pay higher costs. Also, South Orange County is a semi-arid region with virtually no local water supplies and our state faces a serious, long-term water shortage. The rate structure provides customers with a personalized water budget to help them better understand what an efficient level of water use is given their specific situations, so that all of our customers can take part in helping to manage our region’s limited water resources.

No. Every residential customer receives a personalized water budget based upon their home type, lot size and other factors. Every commercial customer has a unique water budget as well.

Your personalized indoor water budget is calculated based on the average amount of water a person uses each day (65 gallons), the number of people in your household and the number of days in the billing cycle. For example a home with four residents in a 30-day billing cycle will have a indoor water budget of:

65 gallons per person X 4 people X 30 days = 7,800 gallons = 10.4 billing units (1 billing unit = 748 gallons)

* Note that your water budget may vary each month depending upon the number of days in the billing cycle.

A recent study by the American Water Works Association showed that, on average, a typical person uses about 60 gallons of water each day indoors. This number includes all indoor water use, such as showers and washing clothes, and is based on the use of common water-efficient devices, including low-flow toilets and showerheads. Based on this data and a review of our customers’ historic water use, MNWD utilizes a budget of 65 gallons per person per day. For comparison, other water agencies in Orange County, who are also using a budget based system have budgeted 55 to 60 gallons per day for each customer’s indoor use.

Your personalized outdoor water budget is based on the amount of your home’s irrigated landscaped area and localized weather data. Your landscaped area is determined using satellite images and County parcel data.  Upon request, the District’s conservation team is also available to physically measure the irrigated area at your home. It is impossible for us to monitor the types of plants in your yard, so your budget assumes your entire landscaped area is water-thirsty grass, which means you automatically benefit if you have planted flowers, shrubs and trees. You will benefit even more if you planted drought-tolerant, California-Friendly plants. The monthly water budget also adjusts with the weather, based on weather stations that can measure precise data in 110 distinct microclimate zones throughout our service area. This ensures your outside water budget provides enough water to efficiently meet your needs as they change throughout the year.

Evapotranspiration (ET) is the amount of water lost each day as water evaporates from the plants in your yard, and it varies each day due to factors such as wind, humidity and temperature. The ET rate is measured every day in inches, and there is a higher ET rate in the summer when the weather is warmer, than in the winter. For your water budget, the ET for each day in the billing cycle will be added up, using ET measurements from weather stations that can calculate precise data for 110 distinct microclimate zones within our service area. Many weather-based irrigation controllers (Smart Timers) can access daily ET readings sent directly from the manufacturer, and will automatically adjust your irrigation patterns. You can also always follow the time-tested approach of only watering your grass if it doesn’t bounce back when stepped upon, and shutting off your sprinklers for several days after it rains (or even if it is just cloudy and cool), which should be enough to keep you within your water budget.

Under the Water-Budget-Based Rate Structure, every customer receives an individualized water budget to meet their specific needs. This means that no matter the size of your yard you should be able to remain within your water budget (Tiers 1 and 2) with common efficiency measures, and receive the water you need at the lowest available rate.  Only customers who waste water are charged the higher rates.

The District believes that efficient water users should not have to subsidize customers who use water inefficiently. Under the previous billing system, the cost to deliver and treat unnecessary (wasted) water was spread to all customers in the form of higher rates. With Water-Budget-Based rates, only customers who use water above their base allocation will pay these costs. Also, South Orange County is a semi-arid region with virtually no local water supplies and our state faces a serious, long-term water shortage. The rate structure provides customers with a personalized water budget to help them better understand what an efficient level of water use is given their specific situations, so that all of our customers can take part in helping to manage our region’s limited water resources.

No. Every commercial customer has a unique water budget based on a three-year rolling average of their monthly water use. Each irrigation customer has a unique water budget based on their amount of landscaping and local weather data.

No. The rate structure has special provisions to adjust commercial and irrigation water budgets to allow for expanded operations requiring more water.  All you have to do is call the District at (949) 831-2500 or click here to fill out a variance request form and we will do the rest. 

It is assumed that businesses use water efficiently to maximize profits. The three-year rolling average automatically takes into account actual changes in business water needs, so your water budget should always be an accurate reflection of your actual use.  

The variance process to temporarily or permanently adjust your water budget is very simple. All you have to do is call the District at (949) 831-2500 or click here to fill out a variance request form, and we will do the rest.

No. Water budgets are based on an efficient level of water use given your specific situation (business needs, irrigation needs, etc.).

If you exceed your water budget but there is no significant change in your business’ water use, that’s a signal you may have a leak.  The monthly water budget (and resulting water bill) provides businesses with a monthly “efficiency” audit to use to monitor water use.  If a leak takes your use above your water budget, there will be higher charges for the water used in excess of your water budget. But if the leak is fixed before the next bill, you will be able to request a credit by contacting the District at (949) 831-2500. Once you have received the bill that shows that you have exceeded your water budget, you may fill out the Commercial Variance form and provide it to the District for a potential bill adjustment.

For questions, please contact the Conservation Department at (949) 831-2500.