The City Council has made permanent a 20% reduction in water use that was temporary when first imposed on residents earlier this year.
The resolution also sets penalties for exceeding water use limits that will take effect July 1, along with new water rates.
The fines begin at 91 cents per billing unit, which is 750 gallons. The fines will be based on water usage from June, 1989, to July, 1990. The fine per billing unit doubles each time a water customer exceeds the ration level by 10%.
Water rates will increase 13 cents per 750 gallons, from $1.05 to $1.18 per billing unit.
In February, the council imposed a 20% cut under an emergency ordinance that was scheduled to expire June 9.
The rate increase was suggested by the city's sole water supplier, Metropolitan Water District, which has announced it will begin charging the city 14% more for water next month.
Although the increased rates are expected to help offset the MWD hike, the council also has agreed to use a $500,000 surplus from the city's water fund to hold down costs to customers.