2027 Rate Structure Changes
Our Water Rate Structure is Changing
Here’s what you need to know.
Beginning in March (Geneva/North Shore Customers) and April (Sudden Valley Customers) of 2027, the District’s water rate structure will change.
Who will be affected?
Base Rate Change
All customers will see the regular annual base rate increase, but the amount of the increase will be less than it would have been under the current rate structure. Because the sewer base rate remains unchanged, the overall effect on customer’s bills will be smaller than it has been over the last 5 years.
Consumption Charges Change
Customers who use less than 1800 cubic feet of water per 2-month billing period will not see a change in consumption charges.
Customers who use between 1800-2499 cubic feet of water per 2-month billing period will see an increase in water consumption charges of up to $23 per billing period compared to the current rate structure.
Customers who use over 2500 cubic feet of water will see an increase of just under $24 in consumption charges per billing period compared to the current rate structure. Examples of the difference in consumption charges can be found below under Bill Comparison.
What do the changes look like?
The District has 3 rates for water consumed.
The base rate includes the first 600 cubic feet of water.
Tier 1 is the charge for water consumption up to a threshold set by the board of commissioners.
Tier 2 is the charge for water consumption over the set threshold, which is slightly higher in order to encourage water conservation and mindful water use.
Currently, the tier 1 rate covers usage from 600-2500 cubic feet, and tier 2 covers anything above 2500 cubic feet. Beginning in 2027, the tier 1 rate will cover usage from 600-1800 cubic feet, and tier 2 will apply to any usage over 1800 cubic feet.
When will the changes happen?
The new Master Fees & Charges Schedule, including this change in rate structure, will take effect on January 1, 2027. The first bill that will reflect these changes will be March 1, 2027 for Geneva and North Shore Customers and April 1, 2027 for South Shore/Sudden Valley Customers.
Why are these changes being made?
The District performed a rate structure analysis and rate study in 2026 as part of the process of setting a new Master Fees & Charges schedule for 2027-2031. During this process, the Board of Commissioners made the decision to re-evaluate the usage tiers that are part of the District’s rate structure. The Board revisited the tiers with two goals in mind: encouraging water conservation, and keeping annual rate increases as low as possible for all customers. Lowering the Tier 2 threshold from 2,500 to 1,800 cubic feet results in a reduction in the annual water rate increase of about one percentage point as compared to the current tier structure.
How does this change relate to rate increases?
Rate structure is the ongoing structure of how customers are billed – for sewer, the structure is simply a flat rate every 2 months. For water, the structure is a base rate, which includes the first 600 cubic feet of water, plus charges for consumption over 600 cubic feet. Deciding on a rate structure and rate setting policy is done prior to setting the dollar amounts for rate increases. The change to the rate structure will take place on the same bill cycle as the annual regular rate increase.
In 2027, customers will see a rate increase of $4.50 per 2-month billing period in the base rate for water service, with similar increases annually for 2028-2031. The sewer base rate will remain at the current level ($206.36) through 2031 with no increases planned.
During the 2026 rate study, the Board considered the tier change and the rate increase together. Because a slightly larger share of revenue will now come from usage above 1,800 cubic feet, the annual base rate increase seen by all customers is smaller than it would be under the current rate structure.
Bill Comparison
On the table below are examples of the changes customers may see in their bill when the new rate structure takes effect. For illustrative purposes, these comparisons were calculated using 2026 consumption rates in order to show the difference in price separate from any rate increases.
2026 Rate Study & Rate Setting Process
District policy is set by an elected board of 5 commissioners. Rate studies are performed by staff every 3-5 years to help in determining future rates. Rate studies and rate setting discussions are presented at the District’s regularly scheduled Board meetings, which are open to the public in person & virtually. The rate structure analysis, rate study, and setting of rates for the next 5 year period took place between April and August of 2026. Some key dates are listed below, along with the accompanying materials provided in the meeting packet for the Board of Commissioners.
- April 8: Overview presentation of utility rate structure in the District and discussion of next steps.
- April 29: Utility rate structure discussion, including history, analysis, and regional comparisons.
- May 27: Discussion continued with analysis and comparison of several rate design scenarios.
- June 10: Discussion & evaluation of three rate design options requested by the board.
- June 24: Evaluation of the previously selected option under various policy based financial scenarios.
- July 8: Multi-faceted full review of proposed rates in relation to Board financial policies and objectives.
- July 29: Final rate study presented to the Board for review and adoption of the next 5-year rate program.