Truckee Donner affirms 6.5% FY2027 water-rate rise
Truckee Donner Public Utility District, California · Meeting date: November 4, 2026 · Published: November 6, 2026
Truckee Donner Public Utility District has maintained the second-year increase in its five-year water-rate programme, preserving an expected $1.55 million uplift in FY2027 operating revenue. Directors backed the rise despite discussion of affordability measures for lower-income customers.
Key points
- The board approved FY2027 water rates established under Ordinance 2025-03, retaining an average 6.5% increase over FY2026.
- The increase is budgeted to lift water operating revenue to $23.98 million in FY2027, up $1.55 million from FY2026.
- For a residential customer in pump zone 3 using 5,000 gallons per month, the monthly bill will rise by $8.30 to $136.35.
- A 1 percentage-point reduction in the planned increase would lower FY2027 revenue and reserves by $236,000, with a stated $1.1 million effect on reserve balances by 2030.
- The utility forecasts its water capital reserve at $5.15 million at end-2026, below its District Code policy target of about $8.5 million.
Full report
Truckee Donner Public Utility District has affirmed a 6.5% average increase in water rates for FY2027, maintaining the second annual step in a five-year rate programme adopted in November 2025.
The decision retains rates set under Ordinance 2025-03 for 2026-30 following a Proposition 218 process that included public workshops and a hearing. The district said the FY2027 increase is expected to generate an additional $1.55 million in water operating revenue, taking the total to $23.98 million.
For a residential account in pump zone 3 using 5,000 gallons a month, the FY2027 bill will rise from $128.05 to $136.35, an $8.30 monthly increase. The rate structure comprises a fixed service charge, volumetric charge and pump-zone charge. The service charge accounts for about 85% of the representative bill, while volumetric consumption accounts for about 7% and pump-zone charges about 8%.
Staff said a lower increase would weaken reserve balances. Cutting the average increase to 5.5% would reduce FY2027 revenue and reserves by $236,000, assuming no offsetting reductions in operating or capital expenditure. The district said the effect would compound to $1.1 million by 2030.
The water utility’s FY2027 budget includes $15.03 million in operating expenses, $1.99 million in debt service and $8.94 million in capital expenditure. The district expects to use reserves to balance the FY2027 budget, with total projected outflows exceeding revenues.
Capital-reserve recovery remains a central consideration. The water capital reserve is forecast to end FY2026 at $5.15 million, above the budget forecast because some pump-station replacement work budgeted for FY2026 is now anticipated in FY2027. However, the projected balance remains about $3.4 million below the District Code policy target.
During the discussion, directors supported keeping the adopted increase rather than obtaining a short-term reduction through greater reserve use. One director also asked staff to consider whether a more robust low-income customer safety net could be developed.
This summary was generated by AI based on the source document and may contain errors.
Source: Regular Board Meeting- First, Truckee Donner Public Utility District