Bear Valley CSD Launches Utility Rate Study to Support Long-Term Community Services
The Bear Valley Community Services District (CSD) is taking steps to ensure the long-term upkeep and reliability of our community’s essential services.
In a 4-0 vote on September 25, the CSD Board of Directors approved hiring LT Municipal Consultants to prepare an engineer’s assessment for the District’s water, wastewater, and solid waste services at a cost not to exceed $74,720. This is a critical, and legally required, step for the CSD to take before considering any potential future rate changes for these services.
WHY THIS IS NEEDED
Currently, CSD sewer and solid waste operations are working under a budget deficit. Existing rates are not sufficient to cover day-to-day operations or to fund necessary infrastructure improvements. The water system budget is in line with current funding, but the CSD anticipates this changing in the near future due to rising infrastructure costs.
In short, these critical services are underfunded under our current rate structure.
Before the CSD can consider any rate changes for these services, California’s Proposition 218 requires an updated engineering assessment. The last assessments were completed several years ago: 2019 for water, 2020 for wastewater, and 2021 for solid waste. Because these studies are valid for five years, new analyses are due for water and wastewater, while solid waste will need an update in 2026.
By combining all three assessments into a single project, the District was able to reduce costs and improve efficiency while still producing three separate reports for each utility service.
The assessments will focus on several key goals, including:
• Ensuring rate revenues are sufficient to support reliable operations, maintenance, and infrastructure reinvestment.
• Addressing deferred maintenance and planning for long-term facility replacement.
• Maintaining adequate reserves for operations, rate stabilization, and capital improvements.
• Meeting existing and future debt service requirements.
• Ensuring water rates comply with the 2014 Sustainable Groundwater Management Act (SGMA) and related regulations.
WHAT HAPPENS NEXT
Proposition 218 outlines several specific steps the CSD must follow when considering any potential rate changes. LT Municipal Consultants will assist with these requirements, which include:
• Identifying the services and estimating their costs.
• Identifying the parcels that benefit from the services.
• Quantifying and separating any special benefits to parcels in a special assessment.
• Mailing notices of proposed rate changes to all property owners.
• Holding a public hearing before adopting any new rate structures.
Bear Valley ratepayers will have multiple opportunities to comment on any proposed rate changes.
This project represents an important step toward maintaining the quality, reliability, and affordability of Bear Valley’s essential services for years to come.
For more information or to review the meeting materials related to this action, please visit BVCSD.com/agendas.