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Board cites small customer base and costly reconstruction projects to justify rate plan
Summary
District staff and the board explained that a small customer base, dispersed service area and large reconstruction projects (West Lake Tahoe treatment plant, Tahoe Cedars system rebuild) drive higher unit costs and the need for increased rate‑funded capital.
Board members and staff explained why local water and sewer rates are higher than in more densely served systems. Staff said the district serves a small number of customers (roughly 5,000–6,000) across a spread‑out 31‑square‑mile service area, which increases per‑customer costs for infrastructure, operations and maintenance.
Staff highlighted large reconstruction projects in acquired, formerly private systems. The West Lake Tahoe Regional Water Treatment Plant was cited as approximately a $25,000,000 investment, and the Tahoe Cedars water system reconstruction was described as an estimated $70,000,000 project for roughly 1,250 customers. "That is really the easiest explanation — we have very few customers," a board member said, noting infrastructure must be paid by the customer base that benefits from it.
Staff described an infrastructure improvement charge of $43/month applied to certain customers (Tahoe Cedars, Tahoma, Madden Creek) for 30 years to help fund debt service associated with reconstruction work. They said that charge is expected to cover an estimated 15–20% of total reconstruction cost, with the remainder coming from rates and property‑tax support.
