Why is my water budget changing?

Castle Rock Water recently conducted a flyover, and completed an aerial map that updated the irrigated area for some properties and identified actual plant type. The previous water budget was calculated using the water requirements for Kentucky Bluegrass, a high water-use plant. Kentucky Bluegrass is no longer allowed in public areas. The newly adjusted budget uses turf, shrubs and trees and native areas in water usage calculations.

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1. What is a water budget?
2. Why is my water budget changing?
3. What happens if I go over my water budget?
4. What does Castle Rock Water recommend I do to stay within my adjusted water budget?