Santa Clara Valley Water District Considers 20 Percent Hike in Water Rates

South Bay residents appear headed for a substantial drought-driven increase in their water bill.

The Santa Clara Valley Water District is considering a nearly 20 percent hike in water rates for North County residents, which includes San Jose, that would be in effect on July 1.

The proposed hike would mean an extra $5.06 per month for the average water customer.

Water officials said the proposed increase is due to California's severe drought.

"The increased cost of water is due to the lower Delta and water exchange contractors driving up their costs," said Dennis Kennedy, a water district board member.

The planned nearly 20 percent increase is less than the 32 percent originally considered, mainly through borrowing more, postponing payments and delaying projects.

The water district board is scheduled to make a final decision on the proposal in May.

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