Why do we have to adjust water rates now?

The most recent District water rates study was completed in 2018 and implemented in 2019. Ideally, rate studies should be performed every 3-5 years. Regular rate studies are critical to the healthy operation of District operations. Utility systems must keep up with rising costs, annual inflation rate,  and be able to implement critical capital projects that are mandated or necessary for the health and safety of our customers.  

Performed regularly, water rate studies provide transparency into what the District can expect in the years ahead and ensure we have the financial resources to meet our budget, maintain our infrastructure, prevent seawater intrusion, safeguard the groundwater basin against overdraft and towards sustainability, keep pace with new technologies, address existing and new state and federal regulations, be adequate for planned growth by the County of Santa Cruz and the City of Capitola, implement our Capital Improvement Program (CIP), and operate our water system so that water can be delivered 24 hours/day; 7 days a week (or something like this)..  

Other elements of rate studies include the development of a reserve policy that considers the different types of risks we face and ensures revenue stability while maintaining affordability. 

Show All Answers

1. How is the Soquel Creek Water District funded?
2. What do water rates pay for?
3. Does the District make a profit?
4. Why is the District conducting a water rate study?
5. Why do we have to adjust water rates now?
6. What is the rate study process?
7. How are rates set?
8. Who approves rate changes?
9. Does the District inflate forecasted expenses when setting rates?
10. What is the District doing to ensure adequate water supplies in the face of seawater intrusion?