Valley Water District
14515 Pioneer Way E
Puyallup, WA 98372
253-841-9698  
888-205-0118  After Hours
253-770-8959  Fax
service@valleywaterdistrict.com
Valley Water District
Mission Statement

To provide safe and reliable water to all of the District's customers.

Hours: 8:00am - 4:30pm

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Frequently Asked Questions

All questions are good questions. Here are Valley Water District's responses to those most commonly asked.

What is this CIP Surcharge on my bill?

The CIP Surcharge began appearing on all Valley Water District bi-monthly bills as of January 2010.  CIP Surcharge is a temporary surcharge to collect additional income needed for bond payments until the economy and construction industry recover from the current recession.

The Base Rate (itemized in the top portion of the blue box, on the left side of your water bill) is structured to collect income to cover the District’s Public Works Trust Fund Loans and Bonds.  Historically, the Capital Improvement portion of the rate collects 50% of the bond payment.  The other half of the income needed for bonds comes from growth – that is new water service connections and meter purchases as homes and businesses are constructed and connected to the water system.

When the recession began in 2007, with it came the slowing of the construction industry, and the District began supplementing the decline in growth-related income with monies from the District’s cash reserves.  Cash Reserves are required to be maintained as part of the Bond Covenant.  Valley Water District continued to support bond payments with cash reserves through December 2009.  Unfortunately at the end of 2009, the economy had not improved.

The 50%-50% ratio of ratepayer revenue and growth revenue has been a widely recommended standard amongst municipalities.  Since these two sources of income - rates and new connections - are the only sources of revenue for the District to operate, the Board of Commissioners established the CIP Surcharge to supplement missing growth-related income.

At this time, the District has projected zero growth for 2010 and 2011.  As the construction industry recovers, and the District is able to replenish depleted cash reserves, the CIP Surcharge will be able to come off of the bi-monthly bills.  Should this not happen in the near future, the CIP Surcharge will remain longer than anticipated, since presently the rate structure as-is covers 100% of the District’s liabilities.

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