Your water bill is going to go up in SLO next month. Here’s why
Sorry, San Luis Obispo residents — your water and sewer bills will be getting a bit pricier next month.
The San Luis Obispo City Council voted unanimously June 6 to increase rates to help maintain the integrity of the city’s water and sewage systems, as well as make up for projected rising costs in the coming years.
The city’s water and sewer operations rely on rate revenue to pay for operation, maintenance and replacement of public water and sewer infrastructure and debt service, according to a notice to customers.
The rate increases will go into effect on July 1, with another increase in 2024.
According to the city, the average water and sewage bill will grow from about $134.50 to $147.79 this year, according to the city, then to $156.41 in 2024.
During their June 6 meeting, City Council members expressed solidarity with community members upset by the increase in their bills, noting that the rate hike is especially difficult given the recent increase in downtown parking rates and general increases in the cost of living in the area.
“I’ve watched my water bill go up, and I’ve tightened my belt to make that payment every month,” San Luis Obispo City Council member Michelle Shoresman said during discussion. “It’s no fun to know that the cost of everything we are seeing — rent, food, our own other household expenses — are just going up. And to be a local government official and to not give somebody relief is just a really frustrating place to be.”
Ultimately, the City Council said the city had to increase rates to make up for anticipated rising costs in providing water and sewage services to residents.
“We have to charge what it costs us to make it, to treat it, and get it to you and transport it,” San Luis Obispo Mayor Erica Stewart said.
She added, however: “This is definitely one of my least favorite topics, pretty much every year.”
Why are water, sewage rates going up?
By law, the city can only charge customers the actual cost to provide water and services, according to a June 7 news release.
To determine that, the city paid for a “cost of service” study, which found the city’s water revenues would not keep pace with expected costs without a rate increase.
According to the study, the city’s expected revenue for the 2023-24 fiscal year without a rate increase would be $22.9 million while its water system expenses would total $24.8 million — a $1.9 million deficit.
That gap would widen to $3.8 million in the 2024-25 fiscal year without a rate adjustment, according to the study.
The increases in costs seems to mainly be due to the rising price of commodities, anticipated construction for replacement of pipelines and treatment plants, electricity and chemicals used for treatment, and higher labor costs, the city said.
According to the release, the city is looking into reducing operational costs to “keep rates as stable as possible” into the future by adjusting the chemicals and energy needed for its water and wastewater treatment.
How much will my water bill change?
In San Luis Obispo, your water rate depends on both what type of customer you are and how much water you use.
Single-family residential customers will see their base rates increase from $24.12 to $28.15 this year, and up to $30.25 the following year.
This year, multi-family, non-residential and landscape irrigation customers will see their base rates increase by about $4 for the smallest water meter to about $214 for the largest water meter this year.
In 2024, those base rates will go up again by between $2 and $112, respectively.
Meanwhile, use charges, which are based on how much water you consume, will go up by about $1 per unit for single-family residential and multi-family customers starting in July. A unit is 748 gallons of water.
Non-residential and irrigation customers will see slight drops in their use charges, going from $9.57 per unit to $9.43 and $11.73 per unit to $9.63, respectively.
Overall, the water rate increase is expected to increase the city’s revenue by 8.5% in the 2023-24 fiscal year — roughly $1.9 million— and 16.6%, or $3.8 million, the next year.
How will my sewer rate change?
Sewer rates are structured similarly.
According to the city, the base rate for single-family residential customers will increase by $1.69 starting July 1, while the rate for multi-family and non-residential customers will jump between $1 and $130, depending on water meter size.
Meanwhile use charges will go up for single-family residential and multi-family customers by $0.25 per unit and $0.69 per unit for non-residential customers.
The sewer rate increase will bring 4% more in revenue, or $744,000, in the 2023-24 fiscal years, and $1.5 million more in 2024-25.
How can I calculate my new bill?
The city has a handy tool to help single-family residential customers determine how much the change will impact their bills.
To use the tool, visit the San Luis Obispo Utility Department website and click on “Calculate My Bill” underneath the “Utilities Billing” tab.
From there, you can put in your water use by unit and sewer cap, and it will show you a comparison of your current rates with the new rates.
Additionally, community members who qualify can get financial assistance with their monthly water or sewer bill by visiting slocity.org/CAP.
This story was originally published June 13, 2023 at 1:20 PM.
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