2025 Water Rate Study
Proposition 218 Notice of Proposed Rate Increase for 2026 - 2030
Public Hearing
The Carmichael Water District Board of Directors held a public hearing to consider the proposed water rates described in this notice on Monday, November 17, 2025
Time: 6:00 P.M.
Approved Water Rates
To meet projected revenue needs, as documented in the Carmichael Water District – 2025 Water Rate Study Report (PDF), the District approved a scheduled rate increase over a five-year period. The initial increase will occur on January 1, 2026, and will raise the overall level of water rate revenue by 4 percent. The new rates also include updates to the allocation of costs and a re-alignment of the rate structure components based on meter sizes in 2026. The new rate structure will allow our customers to have more control of their monthly bills based on their water usage. Subsequent rate increases will occur each January 1 as shown in Table 1.
Water Rate Structure Methodology
The updated water rate cost of service analysis equitably ensures that each ratepayer is paying a proportionate share of the costs of the service provided to them. The existing rate structure includes a fixed monthly service charge based on the size of the water meter (“Monthly Service Charge”) and a uniform water usage rate based on actual water consumption (“Water Usage Rate”), as measured in one-hundred cubic feet (“CCF”), which is equal to 748 gallons.
The update to the water rates was performed by a water rate consultant with the assistance of the Board’s Finance Committee. The new water rates meet legal requirements for cost of service and proportionality and retain the existing basic rate structure.
The complete water rate schedule for the next five years is shown in Table 1. Due to minor changes to the rate structure, the exact change in customer bills will depend on a customer’s meter size and water usage characteristics.
| Table 1 - Approved Water Rate Schedule | ||||||
|---|---|---|---|---|---|---|
| Jan 1, 2026 | Jan 1, 2027 | Jan 1, 2028 | Jan 1, 2029 | Jan 1, 2030 | ||
| Water Usage Rates | Current Rates | Approved Rates | ||||
| All Customer Types (Per CCF) | $2.47 | $2.82 | $2.93 | $3.05 | $3.17 | $3.30 |
| Monthly Service Charge | ||||||
| 3/4" meter | $42.03 | $39.96 | $41.56 | $43.22 | $44.95 | $46.75 |
| 1" meter | $65.83 | $65.15 | $67.76 | $70.47 | $73.29 | $76.22 |
| 1 1/2' meter | $125.33 | $128.11 | $133.23 | $138.56 | $144.10 | $149.86 |
| 2" meter | $196.73 | $203.67 | $211.82 | $220.29 | $229.10 | $238.26 |
| 3' meter | $363.33 | $379.97 | $395.17 | $410.98 | $427.42 | $444.52 |
| 4" meter | $601.32 | $631.82 | $657.09 | $683.37 | $710.70 | $739.13 |
| 6" meter | $1,196.32 | $1,261.45 | $1,311.91 | $1,364.39 | $1,418.97 | $1,475.73 |
| 8" meter | $1,910.31 | $2,017.01 | $2,097.69 | $2,181.60 | $2,268.86 | $2,359.61 |
| Condominium Living Units | $42.03 | $39.96 | $41.56 | $43.22 | $44.95 | $46.75 |
| Multi-Family Living Units w/ Separate Meter | $42.03 | $39.96 | $41.56 | $43.22 | $44.95 | $46.75 |
| Monthly Private Fire Service Charges (per inch of diameter) | $32.91 | $34.22 | $35.59 | $37.01 | $38.49 | $40.03 |
How Much Will My Water Bill Be?
A typical (median) home served by the District has a 1” water meter and uses about 11 CCF during a one-month billing cycle (or about 275 gallons per day). The monthly water bill for this median usage would increase from $93.00 to $96.17, or an increase of $3.17 (3.4 percent). You can find information about your water service and water usage patterns from your past bills. If you would like assistance in determining how the proposed water rates may affect your water bill, please contact the District at (916) 483-2452 Monday through Friday from 8:00 a.m. to 4:30 pm.
Need for Increase in Water Rate Revenue
The District is committed to ensuring that our customers receive clean, safe, and reliable water supplies, and that the water system is maintained to high standards that protect our community’s health and safety, as well as the environment. The District’s current 5-year rate schedule was approved in January 2021. In order to adequately and responsibly support the District’s operation and maintenance, improve water system facilities, meet debt service requirements, and maintain financial stability, the District approved an increase in the water rates. With the approved rate increases, the District is proactively seeking adequate funding for critical system maintenance, and for the maintenance of reserves that are used when major water collection and treatment components need to be rehabilitated or replaced. The use of these reserves allows the District to cash-finance these major projects rather than issuing debt and incurring unnecessary interest costs. Details of the District’s current and estimated future revenue needs as well as the methodology for updating the water rates can be found in the Carmichael Water District – 2025 Water Rate Study Report (PDF), or by calling the District office at (916) 483-2452 and requesting a copy.