Pleasanton To Consider Future Water Rate Hikes

PLEASANTON, CA — The Pleasanton City Council will review an analysis of the city's water system Tuesday, which will include recommendations for additional water rate increases from 2026 to 2029. Though the council will hear recommendations Tuesday, a final vote on the rate increases is not expected until June 2025.

The decision comes after a controversial vote in 2023 to raise water rates by 30% in January 2024, followed by a 12% in January 2025, in response to mounting infrastructure costs and a declining water utility fund. Staff initially requested a 30% increase in 2024, followed by 20% in 2025, followed by 12% in 2026, but this was later scaled back.

In January, the city council adopted a Water System Management Plan, which outlines operational priorities and capital improvement needs for the next 20 years.

The WSMP presents three scenarios for rate adjustments:

• Stabilize Scenario: The lowest increase, which covers only essential repairs.
• Enhance Scenario: Advocates more proactive infrastructure updates to prevent future emergency repairs.
• Accelerate Scenario: The largest increase, which funds all major projects within five years.

City staff are recommending the Enhance Scenario, which, if approved, would raise water rates by 15% in 2026 and 2027, and 8% in 2028 and 2029. This scenario also recommends borrowing up to $35 million to help fund critical infrastructure projects, including emergency backup generators and fire flow improvements.

See here for more information.

The special meeting will take place at the Pleasanton Civic Center at 5 p.m. Tuesday. The regular meeting will begin at 7 p.m.