CVWD is facing two major financial challenges right now. First, short-term mandatory conservation is resulting in reduced revenue and the long-term effect of the drought is likely to result in permanent conservation. This is great news from a water management perspective, but CVWD needs to find ways to meet the same level of service in providing high quality water with less revenue.In addition, CVWD is facing an estimated $250 million in capital costs associated with the state’s new chromium-6 drinking water standard. CVWD is pursuing low-interest financing (State’s Drinking Water State Revolving Fund) to help keep costs and rates as low as possible. Successfully obtaining this type of financing requires a long-term revenue plan. Although the long-term plan outlines five years of increases, those proposed rates will need to be re-evaluated and approved each year by the Board of Directors following additional public input.