Trabuco Canyon Water District ("District") is organized and operates pursuant to the California Water Code Sections 30000 and following. The District sets rates and charges in an open, public process with multiple opportunities for customer input at public hearings held during regular meetings of the Board of Directors.  Like other water districts, it is required to set rates that are sufficient to cover the costs of providing the District’s services.

Periodically, the District reviews its rates and charges to determine if adjustments are required to meet its operational and maintenance costs, drinking water source of supply costs, system capital improvements, adequate reserves based on adopted reserve policies, inflation and other significant cost increases.

District Water, Wastewater and Recycled Water Rate Adjustments - 2026 Rate Study
The 2026 Rate Study establishes the basis for annual adjustments to the District’s rates and charges for water, sewer and recycled water services beginning in October 2026. The previous set of rates and charges were set under the 2023 Study beginning July 1, 2023. The Board initiated the new rate study early in order to review the expense requirements and to address concerns that have been expressed about some aspects of the rate structure. 

Trabuco Canyon Water District's (District) rates, fees and charges are proposed to be adjusted effective October 1, 2026. In compliance with Proposition 218, and in accordance with the District's 2026 Draft Rate Study, the following Notice of the proposed rates, fees, and charges was mailed to the affected District's customers.

Background
In early 2026, the District engaged Water Resources Economics, an independent consultant, in an analysis of its water, wastewater, and recycled water services, revenues, and expenses to determine the true cost of services and the corresponding impacts to customers. This analysis identified a number of key factors that resulted in the proposed rates charges that are scheduled for the Board’s consideration at a public hearing at the September 16, 2026 regular board meeting.

Rates and Charges Impacts
The District’s rates and charges are impacted by many different costs, many of which are outside of the District’s control. These key factors include, but are not limited to, the following: 

• Rising imported water costs from wholesale providers
• Increasing energy costs to distribute water throughout the District’s service area to your tap
• Impacts of unfunded, mandated regulatory requirements from new state and federal legislation
• Persistent drought impacts and associated conservation measures
• Critical upgrades and/or replacement of water, wastewater, and recycled water facilities, pipelines, and infrastructure

The proposed rates, fees, and charges are prepared in accordance with Proposition 218 over a three-year period and were developed using cost of service principles as set forth in the American Water Works Association M1 Manual - Principles of Water Rates, Fees and Charges. The purpose of the rate study is to:

• Financial Plan - Determine the annual rate revenue needed to maintain financial sufficiency and develop a funding plan for the District's capital improvement plan
• Cost-of-Service - Allocate the costs of utility systems and determine the cost to serve each customer class 
• Rate Design - Develop rate structures most suitable to meet the District's goals and objectives and evaluate tier definitions and rate structure methodology
• Rate Adoption - Document the rate study in a report and adopt rates in accordance with the Proposition 218 process.

The board held series of public board meetings, special workshops, and public events beginning in April 2026, and a notice of public hearing was mailed to District customers and parcel owners in mid-July with a public hearing date for Wednesday, September 16, 2026 at 6:00 p.m. for the consideration and adoption of the 2026 Water, Wastewater and Recycled Water rates, fees & charges. Please see the following agendas and meeting minutes related to the adoption of the 2026 Water, Wastewater and Recycled Water Rates, Fees and Charges. 

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