Valley Water officials tell Sunnyvale council planned rate increases aim to fund billions in dam, treatment-plant upgrades

Valley Water leaders on April 8 told the Sunnyvale City Council that the agency is recommending a nearly 10% increase in groundwater production charges for fiscal 2026 to help pay for an era of large, multi‑decade water system investments.

The presentation by Valley Water officials outlined a staff recommendation of a 9.9% increase to groundwater charges in FY26 — which the agency said would amount to roughly $7.60 a month for the average household before any additional charges that retail water providers might add. Valley Water officials said planned rate increases continue for years in their projection, then taper in later decades.

Why it matters: Valley Water supplies or supports wholesale water and groundwater services across Santa Clara County; the agency argues that aging dams, treatment plants and climate changes require major capital spending now to avoid longer‑term shortages, economic losses and irreversible ground subsidence.

Key points from the presentation - Recommended groundwater charge increase for FY26: 9.9%, estimated monthly impact to the average household: $7.60 (does not include additional retail charges). (Darren Taylor, Chief Financial Officer, Valley…