Rate studies are conducted as an industry best practice to ensure that a utility’s financial health is maintained and that the District is setting a course toward meeting future financial obligations. The industry standard is to perform comprehensive rate studies every three to five years; our last study was in 2018 with new rates adopted in early 2019.
Since the last rate study, the costs to operate and manage the water system and ensure environmental protection of our groundwater supply, have increased. The water industry is experiencing the same global impacts of inflation. The District is self-funded, so revenues must equal expenditures. Water rates must cover the cost of service and maintain prudent reserves in case of seawater intrusion or an emergency, such as an earthquake or wildfire, that could damage major critical infrastructure. With water rate adjustments, the District is able to sustain the annual level of capital reinvestment needed to maintain and upgrade our infrastructure and provide financially and operationally sustainable water service.