San Mateo County proposes steep rate increases for CSA 11 water system to shore up finances

Christophe Lise, deputy director of public works for San Mateo County, outlined a proposal to raise rates for County Service Area (CSA) 11’s water system to address mounting operating deficits and a thin reserve.

Lise told attendees that CSA 11 serves 102 connections — about 80 residential, 13 commercial and nine institutional accounts (including the fire station, the school and the church) — and that the system’s current recurring revenues come solely from water sales and meter service charges. He said the district’s fund reserve totaled $28,133 as of June 30 of last year and that, under current rates, the county projects a five-year reserve shortfall that could reach roughly $300,000 if rates remain unchanged.

The plan presented would phase in increases over five years, beginning July 1, 2025, and is intended to bring revenues in line with rising costs, repay an outstanding loan of about $58,800 (plus accrued interest) dating from a 2011 outage, establish a minimum reserve equal to 50% of operating and maintenance costs plus 3% of the system value (approximately $150,000), and fund a meter replacement program and longer-term capital needs.

Background: why the proposal matters

CSA 11 was formed after a Board of Supervisors resolution requesting LAFCO proceedings (Oct. 13, 1987) and a subsequent board resolution (Jan. 12; transcript did not specify year) establishing CSA 11 under Government Code section 25210. The County Planning Commission approved the coastal development permit for the system on Oct. 10, 1990. County staff said the system was built because many private wells at the time were shallow and showed nitrate and bacterial contamination; construction finished in 1992 at about $1.3 million with multiple funding…