2021 Utility Rate Study

2021 Utility Rate Study

2021 Rate Study

A utility cost of service study was approved in a 5-0 vote by the Lakeport City Council at its meeting on August 17, 2021. The study provides for water and sewer utility rate increases to be implemented over the next five years. The last utility rate study for Lakeport was completed in 2012. Utility rates have not increased since 2017.

Best practices for municipalities include the completion of a comprehensive rate study every five years. Regular moderate rate increases allow the utility to keep up with increasing operating and capital costs. While operating and capital costs continue to rise, Lakeport's rates have not been increased.

Why are rate adjustments needed?

The City of Lakeport must continue to keep safe, high-quality water flowing to our customers no matter the circumstances; rates must keep pace to maintain service reliability, including:

  • Operating and maintaining the water and wastewater systems
  • Meeting high water quality standards
  • Capital improvement projects

CIP crop pic

  • $7.010 MM over the next 5 years (2022-2026)
  • 94% Water & 59.06% Sewer
  • $7.505 MM the subsequent 5 years (2027-2031)
  • 69% Water & 41.31% Sewer

How much do the proposed rates change from what I am currently paying?
Proposed Water Rates:

proposed rates chart

Proposed Sewer Rates:

proposed sewer rates

Water and Sewer Utility Bill Impact:
water sewer impact chart

View past workshops and meetings

May 4, 2021 Workshop – 1:06:36


August 17, 2021 Final Report Presentation – 0:50:10


Proposition 218

Rate-setting for public agencies in California is governed by Proposition 218 (Cal. Const. art. XIII D.) The primary component of a rate-setting process is the completion of a Cost-of-Service Study (COS), which documents an agency’s costs of providing services to its customers. COS studies include in-depth analysis of the projected expenditures and are used to guide decision-makers in setting rates that are sufficient to generate the revenue needed to cover anticipated costs, while ensuring that ratepayers pay no more than their proportional cost of service.

Following adoption of the recommended resolutions and consistent with the legal requirements of Proposition 218, the City will send a notice to all affected customers and owners of record that includes the proposed rates, a sample bill for single-family residential customers and instructions for protesting the proposed rates.

A legal notice will be published in a local newspaper. The City Council will then convene on October 19, 2021 to tabulate the protests and consider adopting the proposed rates to become effective November 1, 2021.

Please direct questions to:

Paul Harris                                                                 Nick Walker

Utilities Superintendent                                              Assistant City Manager/ Finance Director

pharris@cityoflakeport.com                                       nwalker@cityoflakeport.com