Water Rates & Info

For current rates please see the Current Rate Schedule (PDF). For future scheduled increases, please see the Adopted Rates (PDF).

Rate Study

The City of Morgan Hill (City) retained NBS Government Finance Group (NBS) in May 2021 to conduct an updated comprehensive water rate study for a number of reasons, including meeting long-term revenue requirements, ensuring revenue stability in water rates, providing adequate funding for capital improvements, and ensuring rates comply with applicable laws, including Proposition 218. The rates developed in this study meet Proposition 218 (Prop 218) requirements and were developed based on industry standards.

Resources

Adjustment Process

The City conducts a thorough and transparent public process prior to implementing any rate adjustments. The rate study and the financial analysis has been prepared by the independent financial consultant (NBS) to determine true costs of service and what rate adjustments are needed. 

Pass Through Fee

On July 1, 2019, the Santa Clara Valley Water District (SCVWD) increased the groundwater extraction fees that it charges the City of Morgan Hill. The production fee increase by the SCVWD exceeds what the City anticipated and had built into its rate structure. Therefore, the City will be passing on the recent unanticipated costs to its water customers. This increase to the volumetric charge is currently $0.06 per unit Hundred Cubic Foot (HCF) of water consumed. For the average customer who consumes 14 units of water per month, this increase will amount to an additional $0.84 per month. Effective July 1, 2025, this charge will increase to $0.09 per unit (HCF).

Other Information

Water Quality Report

The Water Consumer Confidence Report (PDF) is a yearly publication that provides our customers with water quality data.

Public Health Goals Report

Provisions of the California Health and Safety Code specify that public water systems serving more than 10,000 service connections must prepare a Public Health Goals report on water quality every three years. The most recent report is the Public Health Goals Report (PDF).

Discontinuation of Residential Water Service Policy

The City’s Discontinuation of Residential Water Service Policy details the City’s administrative actions for the collection of delinquent accounts and is available to read in the languages listed below:

Reporting Requirements

The City of Morgan Hill is required to report the number of annual discontinuations of residential service for nonpayment on its website and to report this information to the State Board of Water Resources Control ("Board"). 

  • 2024 Residential water service discontinuations for nonpayment: 432
  • 2023 Residential water service discontinuations for nonpayment: 768
  • 2022 Residential water service discontinuations for nonpayment: 542

Utility Billing Appeal Process

Account holders wishing to appeal the billing charges on their utility bill can follow the steps detailed on the Utility Billing Appeal Form (PDF).