SOUTH LAKE TAHOE, Calif. – New water and sewer rates were approved by the South Tahoe Public Utility District (STPUD) Board of Directors during its May 15 meeting. The new rates will go into effect on July 1, 2025.
By a vote of 4-1, with Joel Henderson the lone “no” vote on the rate increase. For a typical residential customer, monthly water rates will increase by approximately $7.00, and sewer rates will increase by $6.00. A detailed breakdown is available at www.stpud.us/rate-changes.
In 2024, the STPUD Board held Prop 218 outreach before approving five years of rate increases to fund essential upgrades to aging water, sewer, and recycled water infrastructure. The first step of the rate increase occurred during the 2024/25 fiscal year, and this new increase is for the 2025/26 fiscal year. If approved annually by the Board, three more years of increases are possible.
A Prop 218 hearing is a public forum where government agencies present proposed changes to rates or fees for services like water, solid waste, or sewage.
“We have an old, tired system that needs to be maintained to deliver quality water and treat wastewater to protect Lake Tahoe,” said Shane Romsos, board president. “We are also dealing with pretty exorbitant inflation pressures, including a $2 million increase this year just to pay for rising electricity and insurance costs.”
The new rates will fund replacing aging waterlines, installing fire hydrants to improve fire flow, upgrading sewer pump stations and key facilities at the wastewater treatment plant, and rehabilitating drinking water wells to maintain exceptional water quality. These projects are part of the District’s long-term Capital Improvement Program, designed to reduce long-term costs, enhance system reliability, and maintain compliance with state and federal environmental regulations.
“The Board does not take these rate increases lightly,” said Romsos. “We continue to explore alternative funding through grants, low-interest loans, and partnerships to reduce costs. We are doing everything in our power to go after outside funding to help our community. Even with this increase, we continue to have the lowest water and sewer rates in the Tahoe Basin.”
The District has secured over $18 million in grants and $79 million in low-interest loans over the past decade. Additionally, the District offers a Customer Assistance Program, including a 25% discount for low-income customers enrolled in Liberty Utilities’ CARE Program and a 15% discount for households with incomes up to 300% of the federal poverty guidelines. Details are available at www.stpud.us/financial-assistance-programs.
“We are a public utility, that means our community owns this water and sewer system,” said Romsos. “Improvements to one part of the system, benefits our entire community and the environment.”