STPUD approves lower water and sewer rate hikes than originally planned

SOUTH LAKE TAHOE, Calif. - For the past few months, the South Tahoe Public Utility District (STPUD) has been meeting with staff and the public to discuss rate changes needed to improve the water, sewer and recycled water systems to their customers.

To start the process of raising rates each year for the next five years, STPUD followed a set of rules outlined under Proposition 218, one of which was to send notices to their ratepayers on how much the proposed increase could be.

In March 2019 ratepayers received notice that the District would impose an increase of up to five percent for sewer rates and six percent for water rates in FY 2019/20. Over 400 of those ratepayers filed a protest on the proposed changes.

During their May 16 meeting, trustees listened to the two dozen members of the public who attended as well as read the written protests. Most encouraged the Board to either not raise rates or not raise rates the full six percent as planned.

The Board listened and the water rate adopted for this fiscal year is four percent and sewer is five percent.

Without the full rate increase desired, the Capital Improvement Plan will have to be adjusted accordingly and outline what can be done with the funding created by the lower rate increase.

Ultimately STPUD will need to replace and rehabilitate 725,354 feet of steel pipe, water mains, wells, and tanks and install over 100,000 feet of larger 6- and 8-inch waterlines and over 200 hydrants for improved water protection.

In March, some on the Board had wanted an 8.5 percent increase as it would give the district $105M to invest in replacing the pipes and it would take 38 years to complete the project, and $67M to invest on improving fire protection, a project that would take eight years to complete. Even though all agree the work has to be completed, nobody wants the public to pay more than they can handle.

A 5 percent increase to both water and sewer would give the district $60M to invest in replacing the pipes and it would take 100 years to complete the project, and $26M to invest on improving fire protection, a project that would take 20 years to complete.

The approved rate increase will almost be able to do the same and staff is working out what can be done.

The Board is able to institute rate increases each of the next five years up to five percent for sewer rates and six percent for water rates. Those decisions will be made during meetings prior to the change of the fiscal year.