Council adopts five‑year water rate schedule after public notice process; protests under 3%

The Simi Valley City Council and the Ventura County Waterworks District No. 8 board adopted a five‑year water rate and capacity‑fee schedule on Nov. 17 after a statutorily required Proposition 218 notice and protest process.

Public Works staff presented the water rate study and recommended increases averaging 3.5% annually from Jan. 1, 2026, through Dec. 31, 2030. Staff said nearly 29,000 notice and protest ballots were mailed to property owners and that 816 protests had been received as of the morning of the hearing—below the threshold required to block the proposed rates.

Staff reviewed revenue assumptions and five‑year projections: FY 2024–25 revenue of approximately $53.2 million, projected revenue of about $56.8 million in 2026 and roughly $62 million in later years under the proposed schedule. Staff and council discussed reserve levels and asked whether year‑one increases could be deferred; staff said the five‑year plan anticipates a decline in cash reserves before recovering in year five and that delaying increases could produce a negative reserve position over the planning horizon.

Council members asked detailed questions about protests, revenue sources and commodity pass‑throughs. Staff noted that commodity pass‑through increases (for purchased water costs) are separate and estimated an additional approximately 2% in some years depending on imported water board decisions.

With no public testimony on the item, Council Member Rhodes moved to adopt the staff recommendations; the motion passed unanimously.

Next steps: the resolution establishing rates takes effect Jan. 1, 2026, and staff will implement the rate schedule as adopted; councilors said they will monitor reserve usage and future budget requests.