California water is primarily from water shed, runoff from snow melt. We haven't had a drop of rain or flake of snow in over a month. Building new reservoirs is near impossible in this state due to environmental laws and controls so that's not a solution either. But the biggest reason is the water rights. This state is big corporate farms that have both the historical rights and the most value when it comes to state budget.
Besides offering to pay for removing lawn. The water districts have imposed a flat rate as well as a volume rate. For me, I am charged a flat $97.69 every 2 months, plus 3 cents per cubic foot. The most recent bill in front of me this morning says I used $53 in water and billed $153 total charges.
Notice my bill shows I am using 228 gallons per day. If I only used 100 gallons per day, 50 gallons per person, my bill would only drop about $25 every 2 months, or $12 a month. By having this flat rate, it's hardly worth conserving water financially for me personally. I could double my water use and only pay $25 more per month as well. Makes no sense to me, but that's the way they bill water AND electricity: large flat rate just to have a meter in place, then low per cu.ft. or kwh to offset. The "winners" are larger water consumers, which, as I mentioned, are the large corporate farms.
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