Rate Study FAQ's
1. Why are the water and sewer rates increasing?
The rate adjustments are necessary to ensure the continued delivery of safe, reliable water and sewer services. Rising operational costs, aging infrastructure, and the need for capital improvements have made updates to the rate structure essential.
2. What do the new rates cover?
The new rates support:
- Day-to-day operations and maintenance
- Critical capital improvement projects (e.g., pipelines, treatment plants, and system upgrades)
- Funds reserves for emergencies and future capital improvement projects and long-term system reliability
- Compliance with state and federal regulations
3. How were the new rates determined?
The District hired an independent rate consultant to perform a Water and Sewer Rate Study. This study evaluated current and future costs and recommended a fair and sustainable five-year rate structure.
4. How does this benefit me directly?
These rate changes help ensure you have uninterrupted, safe water and sewer services today and into the future. They also protect public health, the environment, and your property value.
5. What is Proposition 218 and how does it apply here?
Proposition 218 is a California constitutional requirement that ensures transparency and fairness in setting property-related fees like water and sewer rates. Under Prop 218:
- Property owners must be notified of proposed rate increases at least 45 days in advance.
- A public hearing is held before the new rates are adopted.
- If a majority of affected property owners submit written protests, the rate increases cannot be approved.
6. How can I submit a protest under Prop 218?
To submit a valid protest:
- It must be in writing and include your name, parcel number or address, and a clear statement of protest.
- It must be received before the close of the public hearing.
- Only one protest per parcel is allowed.
Instructions for submitting a protest are included in the official Prop 218 Notice mailed to all property owners.
7. I rent—can I protest or will my landlord have to?
Yes, however only one protest per parcel is valid. Renters should contact their landlord if they have concerns or wish to encourage a protest submission.
8. Will the increase affect both fixed and usage (consumption-based) charges?
Yes. The adjustments apply to both the base fixed charge and the variable (usage) charge. This helps ensure fairness by tying part of the cost to how much water each customer uses.
9. Are you charging more just because people are conserving water?
No. The rate structure accounts for fixed infrastructure costs that do not go away even when usage declines. The new structure ensures the system remains funded regardless of short-term conservation trends.
10. Will all customers see the same increase?
Not necessarily. The new structure includes both fixed charges and consumption-based charges. Higher water users will see larger increases tied to their usage, while lower users may see more moderate changes.
11. I’m a part-time resident—why do I have to pay so much when I’m barely here?
Fixed charges help cover the cost of maintaining the water and sewer systems year-round. Even if you're not using much water, the infrastructure that serves your property must be maintained and ready when you are there.
12. Will debt service charges change too?
No. Existing debt service charges will not be affected by this rate adjustment. However, new rates will help the District responsibly finance future system upgrades.
13. How do our rates compare to nearby communities?
Even with the proposed increase, GCSD’s water and sewer rates remain comparable to or lower than similar rural communities in California.
14. When will the new rates go into effect?
If approved, the new rates will go into effect immediately after adoption following the Prop 218 public hearing.
15. What happens if the rates aren’t approved?
Without the rate adjustments, the District may be unable to:
- Sustain current levels of service
This could lead to emergency repairs, higher future costs, or service disruptions. - Maintain aging infrastructure
- Fund necessary capital projects
- Meet regulatory compliance requirements, which—if not fulfilled—can result in significant fines being levied on the District, ultimately passed on to customers.
16. Where can I get more information or ask questions?
You can:
- Visit our website: www.gcsd.org
- Call us: 209-962-7161
- Stop by our office during business hours
- Attend the Public Workshop on May 15, 2025 at the Groveland Resilience Center at 5:30pm
- Attend the Public Hearing on June 18, 2025 at the Groveland Resilience Center at 5:30pm