Post Date: 08/15/2024

The Casitas Municipal Water District Board of Directors (Board) has scheduled a formal public hearing for November 12, 2025 to consider adoption of proposed water rates.

On November 13, 2024, the Board authorized a contract with Bartle Wells Associates to conduct an update to the Cost of Service and Rate Design Study (Rate Study Update) to inform water rates for the next five years. The previous water rate study was conducted in 2023 and resulted in a water rate adjustment for Calendar Years 2024, 2025, and 2026.

The following public meetings have been held to date:

·         April 18, 2025 Finance Committee

·         May 23, 2025 Finance Committee

·         June 13, 2025 Finance Committee

·         June 23, 2025 Board of Directors

·         July 23, 2025 Board of Directors

·         August 13, 2025 Board of Directors

The scope of the update included revising the 10-year financial plan and developing water rates sufficient to generate revenues needed to cover the cost of service and recover the District’s financial reserves.  The proposed water rates are based on a rate model developed by an independent rate consultant to evaluate cost of service in compliance with Proposition 218.

The updates to the water rate model included:

·         Five-Year Rate Adjustment (Calendar Years 2026, 2027, 2028, 2029, and 2030)

·         Updated Average Annual Water Demands of 9,800 Acre-Feet

·         5% annual rate of inflation over the period for materials and supplies

·         Revised Capital Improvement/Replacement Plan Matrix

·         Review of the Adjudication Charge

The Rate Study Update resulted in an overall annual increase of 11% for the five-year rate adjustment. If adopted, the water rates will become effective January 1 of the years 2026 through 2030, respectively.

A copy of the Draft 2025 Water Rate Study Update and the notice of water rate increases are available below for review.