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 collected 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 this current recession began in 2007 due to the slowing of the construction industry, the District began supplementing the decline in growth-related income w