During drought periods, the City relies on customers to reduce their water use through extraordinary measures, beyond normal conservation actions. Pricing is one of the most effective tools to encourage conservation. These extraordinary conservation actions during droughts help defer costly new supplies, however approximately 75% of water expenditures are for fixed costs. As water sales decline, rates need to be adjusted to cover operating and maintaining the water system as well as to cover extraordinary costs associated with more expensive water supplies. See more about the drought rate increases here.