Simi Valley board proposes 3.5% annual water rate increase over five years

During the Simi Valley City Council meeting on August 5, 2025, a significant proposal emerged regarding water service rates, which could see an annual increase of 3.5% over the next five years. This recommendation aims to address the city's financial challenges in maintaining its water infrastructure, which includes 357 miles of pipelines and 22 pump stations serving approximately 26,000 connections.

City staff outlined the necessity of this rate increase to fund an estimated $51.8 million in capital projects over the next five years. The proposed rates would adjust the bimonthly fixed charge for single-family homes to approximately $76.22 starting in 2026, while the commodity rate for water usage would rise from $5.77 to $6.14 per billing unit. This increase is part of a broader strategy to ensure that revenues keep pace with rising operational costs and to maintain a prudent reserve for emergencies.

Council members expressed mixed feelings about the proposed increase. Some voiced concerns about the financial burden on residents, especially given the city's recent surpluses and healthy reserves. Council member Ayala suggested that the council should consider delaying the rate increase for one to two years, arguing that the city could utilize its existing surplus to fund ongoing projects without imposing additional costs on residents.

In response, city staff emphasized the importance of maintaining a steady revenue flow to match expenditures, warning that delaying the rate increase could lead to larger hikes in the future. The council ultimately decided to postpone a vote on the rate increase until the next meeting, requesting a detailed report on current projects and spending to better understand the financial landscape.

In addition to the water rate discussion, the council also reviewed and approved nine priority focus areas for city initiatives, which include enhancing fiscal stability, promoting economic vitality, and ensuring reliable infrastructure. These priorities will guide city staff planning and resource allocation through December 2025, with progress updates scheduled for twice a year.

As the council navigates these financial decisions, the community's input will be crucial, particularly as they prepare for a public hearing on the proposed water rate increase set for October 20, 2025.