Departments » Water

2021-2025 Water Rates

Water Rate Increase FAQ

The new rates bring the District to the average cost of other water utilities in our region. For a typical District residential customer, the monthly increase will be about $7 per month. New rates took effect on billings after January 2, 2021.

The District worked with reputable, independent consultants to create an updated 10-Year Water Infrastructure Capital Improvement Plan (CIP) and evaluate the water utilities costs of service for each customer class. Factors increasing the costs of service for the water utility include: the need to repair or replace aging infrastructure, unfunded California regulatory mandates, and preparing the system for catastrophic events. All of the above were factored in to determine the funding necessary to maintain the water system and address rising operational costs and maintain the financial health of the utility. The results were presented to the Board in two publicly held Workshops.

The water rates for 2021-2025 will better position the District financially while still maintaining water rates below the average for utilities in the Tahoe Truckee Basin (see graph above). The rates would maintain the District’s high quality services and programs, fully fund the expanding capital needs of the District, and continue to replenish reserve fund balances. Specific benefits include:

  • Maintaining health and safety standards
  • Improving operational efficiencies to lower costs
  • Protecting against catastrophic wildfires
  • Ensuring adequate water supply during drought
  • Enhancing the value to local control

Water rates set by public agencies in California are subject to the Proposition 218 public process, which requires that rates be set based on actual cost-of-service. Compliance with CA Prop 218 requires the following criteria be met:

  • Water rates must be based on actual cost of service
  • District must provide notification by mail to parcel owners within the District boundaries of the intended rate adjustments
  • District must hold a public hearing not sooner than 45 days after the mailing of notices
  • District must provide an opportunity for parcel owners to formally protest rate increase (requires majority protest to reject rate increase)
  • If proposed rates are not rejected, they may become effective 30 days after the public hearing and adoption by ordinance

Notice of Public Hearing and Proposed Water Rates for 2021-2025

2020 Water Rate Study