Water Rate Study
2025 Water Rate Study
Reliable water systems are the backbone of healthy, thriving communities, providing essential services that protect public health, support economic growth, and ensure environmental sustainability. However, aging infrastructure, threatened water supplies, and evolving regulatory requirements present significant challenges that require immediate attention and investment. Securing adequate funding for these critical systems is not just a necessity but a strategic imperative to safeguard our community’s well-being and future resilience.
To ensure the continued safety and reliability of our essential water service and supplies, ongoing investment in system maintenance and improvements is crucial. Water and other utility rates are regularly reviewed and adjusted, typically every three to five years, to address infrastructure needs, inflation, water supply shortages, water quality challenges, regulatory mandates, and other evolving community needs. Rates for water service must keep up with the costs to ensure long-term reliability and maintain the level of service our community is accustomed to.
Financial consultants and District staff are working on a series of steps involving financial data evaluation to assess water rates and charges while considering the impact of any rate modifications of customers. The goal is to ensure that the rates customers pay for water services are:
- sufficient to ensure the continued financial viability of the District’s water system,
- sufficient to enable critical maintenance and infrastructure investment to continue high levels of service while complying with ever more stringent regulatory requirements, and
- align with best practices and in accordance with state law.
Legal Rate Setting- Learn how District rates are determined and the legal rate setting process.
Calendar of Public Meetings (Subject to Change)
Meeting | Date | Time | Location |
---|---|---|---|
Board of Directors | May 5 | 9 am | District Headquarters |
Board of Directors | August 6 | 9 am | District Headquarters |
Informational Open Houses | September TBD | TBA | District Headquarters |
Board of Directors | November 5 | 9 am | District Headquarters |
Board of Directors/Public Hearing | November 19 | 9 am | District Headquarters |
District Headquarters is located at 1391 Engineer Street Vista CA
May 5 - Board of Directors meeting Agenda
Frequently Asked Questions
Vista Irrigation District is a not-for-profit governmental agency guided by an elected Board of Directors. All revenues are used exclusively to enhance and sustain our water system, including ongoing operations, maintenance, and critical infrastructure upgrades such as water main replacements and fire hydrant maintenance.
To deliver high-quality water to more than 132,000 customers, we deliver a blend of local and purchased water supplies that are treated for your drinking water. Local water originates from the watershed and well fields located near Lake Henshaw. Purchased water supplies from the Claude “Bud” Lewis Carlsbad Desalination Plant, the Colorado River and Northern California are delivered to the District via the Metropolitan Water District of Southern California and/or San Diego County Water Authority
The District’s water service is primarily funded through customer rates. Customer payments support the District’s ability to deliver high-quality, reliable water services while remaining environmentally responsible for the resources in our care. The District is committed to good governance, fiscal accountability, and transparency, with systems and policies in place to uphold the trust of our customers.
The District uses industry-leading best practices to ensure a resilient water future. Revenue from water rates is reinvested into infrastructure to maintain system reliability and ensure continuous operations and service delivery. We are currently investing funds in projects, including:
- Maintenance and repair of critical infrastructure, such as water reservoirs, pump stations, and groundwater wells, including ongoing projects like the Lonsdale mainline pipe replacement project, rehabilitation of the Deodar Reservoir, and the Edgehill Reservoir replacement and pump station project.
- Maintaining more than 429 miles of water pipelines to ensure water delivery to homes and businesses.
- Maintaining, repairing, and replacing more than 3,800 fire hydrants.
- Hiring and retaining highly skilled, qualified, and licensed staff to operate the water system and conduct water quality monitoring.
These investments ensure that Vista Irrigation District continues to meet the community's water needs reliably and sustainably.
No. By law, we cannot charge customers more than it costs to provide water service. The District’s water system is owned by our customers and governed by the elected Board of Directors; we do not have shareholders or pay dividends.
The District is conducting a water rate study as an industry standard to ensure transparency and financial stability. Financial planning and rate studies help the District plan for long-term water solutions by meeting budget needs, maintaining infrastructure, implementing new technologies, complying with state and federal regulations, and funding its Capital Improvement Program (CIP).
The last rate study was conducted in 2021, but rising costs driven by inflation are impacting critical system operations, maintenance, repairs, replacements, and regulatory compliance— all essential for protecting the health and safety of our community. A new rate study is necessary to ensure the District has the resources to fund these operations and implement future improvements to maintain reliable water service.
An essential part of the rate study includes funding reserves to manage financial risks. Reserves help address challenges such as drought conditions, emergency repairs, natural disasters, and cash flow timing, all while continuing to provide high-quality water at the lowest possible cost.
Yes. The financial analysis anticipates inflation. The District recognizes the impact of record inflation and continues to take fiscally responsible action amid the ever-increasing impacts that state, national, and international decisions have on our economy.
The purpose of a five-year rate study is to adjust for differences between expected and actual expenses and income. It helps determine the revenue needed over the next five years to cover costs, address any surpluses or shortfalls, and ensure reserves remain healthy.
Revenue from rates must also fund reserves to handle unforeseen events, like emergency repairs or droughts, and to meet debt obligations. Reserve funds are not used for routine District expenses. The rate study looks ahead with projected costs and expected increases over the next five to 10 years, aiming to keep the budget balanced and prepared for the future.
The rate study and financial conditions take many months of calculations and review. As the rate study progresses, proposed rates may not be known until July or August 2025. California state law (Proposition 218) requires the District to adopt rates that do not exceed the District’s actual costs of serving each customer type (residential, commercial, industrial, etc.). Throughout the rate study process, the community is encouraged to participate in public meetings and community information sessions and provide input. For more information, visit our website at Water Rate Study - Vista Irrigation District.
Water is a core service necessary for a healthy community and public safety. If rates are not raised, it would negatively impact the reliability and quality of our water delivery system. Critical projects, such as repairs and replacement of our pipes, pump stations, wells, nearly 100-year-old, 11-mile long Vista Flume and reservoirs could not happen. Any delays in implementing these projects would increase the risk of water service interruptions and even infrastructure failures, increase long-term costs and could lead to greater regulatory oversight by state and federal permitting agencies. Ensuring reliable water service and public health relies on continual investments in our infrastructure and water supply systems.
In 1996, California voters approved the Right to Vote on Taxes Act, known as Proposition 218, which established requirements for setting local government utility rates, fees, and charges. This legal framework guides how rates and charges for utility services, which are not taxes, are determined through evaluation and analysis of cost escalations related to operations and maintenance, water treatment and distribution, capital project costs, general inflation, and cost increases for materials and power. Different types of customers generate different costs because of their water use characteristics. Each customer group must pay their fair share and can’t be required to pay the costs incurred by another group. For example, residential customers can’t be required to pay more, so commercial customers can pay less and certain residential customers can’t be required to pay more so other residential customers can play less.
Under Proposition 218, property owners and customers will receive a mailed Public Notice detailing proposed rate adjustments, the date of the Public Hearings, and how to object to and/or protest the proposed rates. Property owners will have a minimum of 45 days to object to and/or protest the proposed rate adjustments through a written process. Before the Public Hearing, the District’s Board of Directors will review any timely objections received to the proposed rates, along with staff’s responses, and determine whether clarifications, further review or reduction or abandonment of the proposed water fees is warranted. During the Public Hearing, the District’s Board of Directors will review public comments and written protests and consider approving or denying rate adjustments. Should the District receive a majority protest from ratepayers/property owners, rate adjustments will not be implemented.
Yes, as required by California Law, property owners and customers will receive a Proposition 218 Public Notice detailing the proposed rate adjustments, the petition process, and the date of the Public Hearing. Written protests will be accepted until the close of the Public Hearing.
The District Board of Directors will hold a Public Hearing to review all written protests and consider approving or denying rate adjustments. Should the District receive a majority protest from our service area, new rates will not be implemented. Should there not be a majority protest, the District Board of Directors will consider the increase and vote to approve or not. Only one valid protest per street address or parcel will be counted for purposes of the protest process.
Additionally, any member of the public can participate, in person or via teleconference, in the Public Hearing and provide comments regarding the rate adjustments to the Board of Directors. While comments can be made during the public hearing process, a protest must be submitted in writing and provided prior to the close of the Public Hearing to be counted.
Yes. On September 25, 2024, Governor Newsom signed Assembly Bill 2257 (AB 2257) into law, adding Sections 53759.1 and 53759.2 to the California Government Code, which allows the District to establish formal procedures that allow written objections to be submitted and addressed prior to the adoption of new water fees, including rates and charges. Only individuals who have filed a formal written objection may challenge the water fees based on the contents of their objection, and evidence in any lawsuit brought to challenge the fees will be restricted to the official record of proceedings. If an objection is not timely filed during this process, legal challenges to the water fees are barred.
A written protest is the property owner’s ability to express their disagreement with the rate increase and requires no formal explanation for the basis of their protest. If a majority of the property owners/ratepayers within the District’s service area protest, the new rates cannot be put in place.
An objection may only be made in writing and must specifically state why the proposed rate increases do not comply with the law, and more specifically, Proposition 218. Prior to the Public Hearing on water fees, the Board of Directors will consider all timely written objections, along with staff’s responses, and determine whether clarifications, further review, or reduction or abandonment of the proposed water fees are warranted.
If the proposed rates are adopted following the Public Hearing, there is a 120-day statute of limitations for challenging the proposed water rates in court. The 120-day statute of limitations will begin on the date the rates are adopted or the date the resolution adopting the rates goes into effect, whichever is later and any legal action is limited to the issues raised in a timely submitted objection.