District Proposing New Water Rates under Prop 218 - Public Hearing on February 19

Soquel Creek Water District is proposing a new, simpler water rate structure, and increases in water rates and service charges. These changes are being considered to provide sufficient revenue for the District so that it may continue to plan and build for the future, and ensure that its customers will have a reliable and sustainable water supply.

In accordance with Proposition 218, the state statute that governs how water rates are set, the District will hold a public hearing to consider these proposed changes:

February 19, 2019, 6:00 pm

Capitola City Council Chamber

420 Capitola Avenue, Capitola

All District customers are being mailed a notification of this public hearing, which includes details about the proposed new rate structure and new rates/service charges and fees, information about why these changes are being considered, and specifics about the process to submit a written protest of the proposed rates. Written protest must be received prior to the close of the public hearing on February 19, 2019.

The proposed rate structure and rate/service charge changes are based on a review of the District’s financial requirements for the next five years, conducted by an independent financial consultant, who also conducted a cost-of-service study. The results identified the rate increases that are deemed necessary to sustain District operations, invest in capital infrastructure, meet existing and future debt obligations, maintain adequate emergency reserves, and develop the recently-approved PureWater Soquel supplemental water supply project, which is designed to replenish and protect the groundwater aquifer.                                    

If the proposed rate/service charge changes are approved, it’s estimated that over 70% of residential customers would experience a monthly increase of $5 or less. Households which consume more water than average will pay more per unit of water (1 unit = 748 gallons). It’s also estimated that the vast majority (98%) of business water accounts would experience an increase of about 40-cents per unit of water.

The District encourages its water customers to watch their mailboxes for the Notice Regarding Water Rates and Fees/Notification of Public Hearing, read and consider the information provided including how to participate, and be fully informed about what is being proposed, and why.

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