Pass-Through Water Rate Adjustment
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2025 Pass Through Water Rate Adjustment Calendar
| Outreach Activity | Date/Time | Location | Description |
|---|---|---|---|
| Proposition 218 Notice | March 1 – 15, 2025 | Mailed | Notification of proposed rate adjustment |
| In-person Workshop: District 40 | Wed, April 9, 2025 6:30 p.m. | Lancaster Library 601 W. Lancaster Blvd. Lancaster, CA 93534 | Information on proposed rate adjustment and opportunity to ask questions |
| Virtual Workshop | Wed, April 16, 2025 6:30 p.m. | (Zoom link here) Video recording will be available on the website | Information on proposed rate adjustment and opportunity to ask questions |
| Public Hearing | Tues, April 29, 2025 9:30 a.m. | County Board of Supervisors Hearing Room #381 Kenneth Hahn Hall of Admin. 500 West Temple Street Los Angeles 90012 | Public hearing on rate adjustment and opportunity to submit written protest |
Customer FAQ
What is a pass-through water rate adjustment?
A pass-through water rate adjustment is an annual change to water rates that allows Waterworks to cover increases in costs due to inflation and wholesale water price increases. These adjustments ensure that the Waterworks Division can continue providing reliable services without experiencing financial shortfalls.
How are pass-through rate adjustments calculated?
The Fiscal Division calculates the pass-through rate adjustments, and the Auditor- Controller reviews them to ensure accuracy. This includes verifying the correct application of the Consumer Price Index (CPI) and ensuring that estimated wholesale water cost increases are properly reflected in the calculations.
Why is Proposition 218 important in this process?
Proposition 218, also known as the “Right to Vote on Taxes Act,” was passed in 1996 and sets the legal framework for how public agencies can increase service-related fees. It requires public notification of proposed fee changes, a public hearing, and an opportunity for property owners to protest those changes.
How will I be notified of changes to my water rates?
Customers will be notified via a Proposition 218 notice, which is mailed 45 days before the public hearing on rate adjustments. This notice outlines the proposed rates, the hearing date, and the process for submitting written protests. Additionally, a separate Rate Adjustment Notice will be mailed to inform you of the specific changes 30 days before the new rates take effect.
Can water rates change every year under Proposition 218?
No, under California Government Code Section 53756 (established via AB3030), public water agencies can adopt automatic pass-through rate adjustments for a period of up to five years. This allows the agency to implement annual adjustments without undergoing the Proposition 218 process every year. The process is only required once every five years.
What happens if a majority of property owners protest the rate adjustment?
If more than 50 percent of affected property owners submit written protests before the end of the public hearing, the rate adjustment cannot be implemented. The Waterworks Division will carefully track and verify all protests before tallying them and providing the results to the Board.
What is the timeline for implementing new rates?
After the public hearing and Board approval, new rates will take effect on May 1, 2025. Starting 2026, new rates will typically take effect on January 1 of each year. Affected customers will be notified at least 30 days before the new rates are applied.
How do I submit a written protest regarding the rate adjustment?
Instructions for submitting a written protest are provided in the Proposition 218 notice. Protests must be submitted in writing before the public hearing ends. The Waterworks Division will verify that each protest comes from a customer of the Waterworks District or the Marina del Rey Water System and include these protests in the final tally presented to the Board.
Why does the Waterworks Division need to adjust rates every year?
Annual rate adjustments are necessary to keep pace with rising costs related to inflation and increases in the wholesale price of water. These adjustments allow the Waterworks Division to maintain its financial stability and continue providing essential water services without service disruptions.
What is the difference between a pass-through rate adjustment and a regular rate increase?
A pass-through rate adjustment specifically addresses the need to cover rising costs of inflation and wholesale water prices, and it can be implemented annually based on these factors. On the other hand, a regular rate increase may involve a comprehensive financial analysis, including considerations such as long-term capital improvements or expanding services, and it requires a separate Proposition 218 process.
Why are some districts experiencing higher rate increases than others?
The rates depend largely on the charges imposed by our wholesale suppliers. The reason for varying rate adjustments in some districts is due to the varying costs from the wholesale suppliers that serve each area. Different suppliers may have different pricing structures, which can result in some districts facing higher adjustments than others. Each district faces unique challenges in terms of water supply costs, infrastructure maintenance, and operational needs. While we understand that this increase may be a hardship for some residents, it reflects the necessary adjustments to cover the increasing costs of providing reliable water service.
Why didn’t this notice include a Spanish translation?
While the Proposition 218 mailed notice did not include a full Spanish translation, we recognize the importance of providing accessible information to all members of our community, especially in areas with a significant number of Spanish-speaking residents. To address this, we have included dedicated language within the notice directing customers to our website (lacwaterworks.org) for access to a Spanish version of the Notice or to call our Spanish-speaking customer service representatives who can assist with translation and answer any questions. Our goal is to maintain transparency and ensure that all residents have the opportunity to engage with and understand important information about their water rates.
How many written protest letters does our community need to submit to stop the rate adjustment?
Under Proposition 218, if at least 50% plus one of the parcel owners submit written protests by the end of the public hearing, the proposed rate increase will not be adopted. Each property owner is entitled to submit one written protest for their property. If you would like more information, we can provide further details.
Are the proposed automatic annual pass-through adjustments limited to 5 years? What happens after that?
Yes, the proposed automatic pass-through adjustments are limited to a five-year period. After this period, any further rate adjustments will need to go through a new Board approval process, which includes sending notices, holding public hearings, and providing opportunities for public input.
What will prevent your wholesale suppliers from increasing their prices to the maximum each year when they know that you will have an automatic adjustment in place to pay for it?
Our wholesale suppliers cannot simply apply the maximum increases each year. They are regulated by their own governing bodies and are required to conduct detailed rate studies to justify any increases. These studies take into account their operational costs, infrastructure needs, and financial obligations. Any rate adjustments they propose must be reasonable and based on actual costs.