Why is the District considering rate increases?

Most of South Lake Tahoe’s water and sewer systems were built in the 1950s and 1960s. Much of this infrastructure needs to be upgraded, repaired, or replaced. The District is considering raising water and sewer rates to provide revenue to address:

1.       Community Fire Flow –While the District has made significant progress, much remains to be done to provide adequate fire flow throughout our entire service area. In the next 4 years, the District intends to install or replace 180 fire hydrants and upsize waterlines in Bijou, Wildwood, Tahoe Mountain, Tahoe Sierra, Stateline and Meyers neighborhoods.

2.       Water System Upgrades – In the last 5 years, the District has seen over 1,000 water leaks on our system. Replacing more than 60,000 linear feet of old waterlines in the next 5 years will provide adequate fire flow and help maintain good water quality. The District relies on 12 wells to provide delicious Tahoe tap and we will be assessing these wells and planning replacements as needed.

3.       Sewer System Upgrades – During the historic winter of 2023, stormwater entered the sewer system causing peak flows and risking sewer spills. To address these issues, the District will be rehabilitating and replacing 9 sewer pump stations, 30,000 linear feet of sewer mains, and 3 facilities at the treatment plant over the next 4 years.

4.       Increasing Costs – Similar to what our customers are experiencing, the District is facing significant cost increases for electricity, insurance, chemicals, and construction materials.

How much is the proposed increase?

For a typical residential customer, the proposed 9.5% rate increase is around $7.00 per month for water and around $6.00 per month for sewer. For more detailed information about the proposed rates, visit: www.stpud.us/rate-changes

How are rates developed?

The District hired an independent financial consultant who does a detailed financial review. The review identifies revenue needs based on long-term estimated costs, engineering and facility improvement plans, water demand levels and more. From these calculations, a five-year series of changes to water and sewer rates were developed. We are currently in year two of the five-year schedule.  

What steps has the District taken to cut costs?

The District continues to actively pursue grant funding to minimize rate increases. Over the last 10 years, the District has obtained more than $18 million in grants and $79 million in low-interest loans. By successfully securing grant funding and operating efficiently, the District continues to have the lowest water and sewer rates in the region.

Are there special requirements for operating in Lake Tahoe?

In 1968, the State of California passed the Porter-Cologne Water Quality Control Act, which requires all wastewater, regardless of level of treatment, to be exported out of the Tahoe basin. This mandate costs the District around $1 million in additional energy costs to pump 3.9 million gallons per day of recycled water over Luther Pass.

What can I do if I can’t afford to pay for the increased water and sewer rate?

The District offers a low-income Customer Assistance Program for qualifying residential customers. Eligible customers receive a 25% reduction off the standard residential sewer and/or water rate who are part of Liberty Utilities CARE Program or a 15% discount for customers with a maximum household income up to 300% of the federal poverty guidelines. For more information or to sign-up, visit: www.stpud.us/financial-assistance-programs.

I am a second homeowner in Lake Tahoe, why do I have to pay the same as customers who live in Tahoe full time?

More than 75% of the costs of providing water and sewer service are fixed and don’t change with usage. The size of the pipes, pumps, treatment plants, and all other facilities are based on the maximum flow that must be provided or wastewater treated. All these facilities must be available 24 hours per day, whether a home is occupied or not. No matter how frequently you turn on your faucet or flush the toilet, the District must be ready to serve any and all of our customers. Similarly, a fire hydrant needs the same amount of water and pressure to fight a fire, whether you are home or not. As such, around 75% of your bill exists whether the system is utilized or not.

What can I do if I oppose the rate increase?

The Board of Directors will be discussing and voting on the proposed rate increase at the Board Meeting on May 15, 2025. You may comment at any time by contacting the District at info@stpud.us or attending the May 15, 2025 Board Meeting at 2:00 p.m. in the District Board Room at 1275 Meadow Crest Drive, South Lake Tahoe.

How can I find out more?

For more information, visit stpud.us/customers/improvements/. For additional questions, email info@stpud.us or call 530-544-6474.