Thousand Oaks council approves 2026–27 water and wastewater rate package; council cites infrastructure and fire-resiliency costs

The Thousand Oaks City Council voted 5–0 on Nov. 4 to adopt a package of ordinances and resolutions implementing water and wastewater rate adjustments for 2026–27, formalizing new fees and administrative procedures staff says are needed to maintain system reliability.

Council approved a citywide 5% annual adjustment to water revenue effective Jan. 2, 2026, and Jan. 1, 2027, together with a wholesale pass-through charged by the regional supplier (staff noted a $0.42 per unit pass-through in Jan. 2026 and an additional $0.60 per unit in 2027). Staff said the combined changes are intended to support operations, maintenance and planned capital projects without issuing new debt.

"These investments are about protecting public health, supporting fire safety and environmental sustainability," Tara Tesado, the city's budget officer, told the council. Tesado said the city's water system serves about 17,000 customers (roughly 50,000 residents) and is 100% supplied by imported water, which raises volumetric costs compared with agencies that have local groundwater.

Staff showed estimated household impacts for 2026: a low-use single-family household (about 10 units per month) would see a monthly bill move from $92.51 to about $101.44 (an $8.93 increase, 9.7%); a medium-use household (about 15 units) would rise about 10.1%; and a high-use household (about 40 units) would rise about 10.6%. For wastewater, staff proposed an average annual revenue adjustment of roughly 7% effective July 1, 2026 and July 1, 2027, with single-family fixed charges increasing from $39.17 to $42.88 in 2026.

The rates are tied to a multi-year capital program staff described in detail: Tesado cited more than $85 million in wastewater projects and $74 million in water improvements over the next five years, including mainline replacements, valve rehabilitation, advanced metering infrastructure (AMI) replacement, and seismic and generator upgrades at pump stations and reservoirs to support fire resiliency.

Public comment at the hearing was mixed. Several residents told the council the increases will be painful for longtime and fixed-income residents and asked whether the city had negotiated wholesale costs or pursued local supply alternatives.

"Fair and reasonable water increases are understood. However, pass-through increases like this need to be aggressively negotiated and locked in for five years," Anne Schmitz told the council. Alan Grant and other speakers urged staff to pursue recycled-water projects and other local supply options.

Public Works Director Nader Haidari said the city has studied local groundwater, recycled-water options and desalination, and that many alternatives are either insufficient or more costly than the current imported supply. Haidari described ongoing partnership work with Calleguas Municipal Water District and support for the Las Virgenes recycled-water project as regional steps that could relieve imported-water pressure over time. He also described AMI meter benefits and the ability for customers to monitor usage with a new app.

The staff recommendation package also included municipal code updates and administrative changes: a new administrative-penalty structure to deter meter tampering and unauthorized connections (penalties beginning at $130 and escalating for repeat or serious offenses), formalizing meter installation fees on a time-and-materials basis in a user-fee resolution, a three-year limit on billing adjustments except for fraud or tampering, and a codified appeals process for disputed city-billed charges in line with SB 998 (Water Shutoff Protection Act).

The city clerk reported that 17,186 notices were mailed for the water proposal and 18 valid protests were received (insufficient for a Proposition 218 majority protest; 8,594 would have been required). For wastewater, 39,165 notices were mailed and 14 protests were received (19,583 required). Mayor Pro Tem Taylor moved to adopt staff recommendations; the motion passed 5–0.

The council directed staff to proceed with ordinance introductions and associated resolutions; the city clerk read the ordinance titles into the record. Staff said implementation of new rates and fees would begin in January 2026 for water items and July 2026 for wastewater items, per the adopted schedule.

The council's action formalizes rate changes recommended in the city's 2025 water and wastewater rate studies and makes permanent related billing and enforcement procedures staff said are necessary to keep the utility enterprise fiscally stable and resilient.

What's next: The ordinances were introduced and staff will complete final adoption steps and implement customer notifications. The utility assistance program remains in place with capacity for new enrollees and eligibility tied to income-based CARE enrollment; staff encouraged residents who need help to contact the utility billing office.