How are rates set?

Proposed rates are determined following evaluation and analysis of cost escalations related to operation and maintenance, water treatment, capital projects’ costs, general inflation, and material cost increases due to supply chain shortages. California’s Proposition 218 requires local utilities, special districts, and municipalities to follow certain procedures when proposing a rate adjustment to services. A property owner has an opportunity to protest the proposed rate increases if they feel they are unwarranted.  

Under Proposition 218, ratepayers will receive a public notice detailing the proposed rate adjustment, petition process, and the time, date, and location of the Board of Directors Public Hearing. Customers have 45 days to petition rate adjustments through a written process. In the Public Hearing, the District Board will review customer petitions and consider approving or denying rate adjustments. Each parcel is allowed one protest. Should the District receive a majority (50% +1) protest from water customers, rate adjustments will not be implemented.

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?