By Scott McCarty –
At the July 9 City Council meeting, the Ventura Water General Manager presented to Council an update on the analysis of future water and wastewater rates for Ventura residents.
On July 1, 2025, the City implemented the last of five previously-approved annual water and wastewater rate increases. These increases, which started in July 2021, were a 7% annual increase in water rates, and a 6% annual increase in wastewater rates. This has resulted in a compounded cumulative increase in water and wastewater rates of about 40% and 34%, respectively, over the past five years.
STARTING IN 2026, WE ARE ENTERING A NEW 5-YEAR PHASE OF WATER RATE INCREASES. These increases are expected to be significantly greater than those implemented over the past five years.
Major drivers of the potential rate increases are projects that are being implemented to ensure legal & regulatory compliance with respect to the City’s water operations and creating a drought-resilient supply of water for the City for decades to come. Specifically, significant projects being worked on include:
(1) Wastewater facility upgrades,
(2) East-to-west waterline interconnections,
(3) the State Water Interconnection Project, and
(4) Ventura Water Pure Program.
What was discussed at the City Council meeting was *not* the adoption of new rates, but rather the *initial* analysis of potential rate increases. The consulting firm performing the analysis for the City is Raftelis.
As of right now, the “Expected Estimates” for annual water and wastewater rate increases for five years starting in 2026 are as follows:
– WATER: 11% annual increases. (Cumulative five-year increase would be about 69%.)
– WASTEWATER: 12% to 18% annual increases. (Cumulative five-year increase would be about 106%.)
For a typical customer, the above scenario would result in an 87% increase in the combined water/wastewater monthly bill by 2031.
There are also initial “Low Range” and “High Range” estimates for rate increases. The “High Range” estimates are as follows:
– WATER: 15% annual increases. (Cumulative five-year increase would be about 101%, that is, a doubling of your residential water bill over the five-year period starting in 2026.)
– WASTEWATER: 18% to 20% annual increases. (Cumulative five-year increase would be about 141%.)
For a typical customer, the “High Range” scenario would result in a 121% increase in the combined water/wastewater monthly bill by 2031.
City Council has requested, as part of the analysis, to be apprised of any debt structure options that would reduce the magnitude of the potential rate increases over the next five years.
Next steps in the process are:
(1) Preparation of draft rate structures by Raftelis (to include scenario modeling of the most equitable way to structure fixed- vs. variable-revenue sources).
(2) AUGUST 7 and AUGUST 25: Review of proposed rate structures by the Water Commission.
(3) SEPTEMBER 23: Presentation of the final rate structure recommendations to City Council.
(4) DECEMBER 9: City Council Public Hearing on the adoption of new rates.
(5) DECEMBER 16: Formal adoption of new rates by City Council.
(6) JULY 1, 2026: Implementation of the first of five new annual increases in water and wastewater rates.
