The Board of Directors of the Rancho Murieta Community Services District will hold a public hearing on May 20, 2026 to consider possible adoption of additions and amendments to rate and special taxes.

Maintaining Our Community’s Vital Infrastructure: A Message Regarding Proposed Rate Adjustments 

I am writing to you with the hopes of clarifying the proposed rate increase. Reliable utility services form the foundation of our community, making sure that clean water flows, waste is properly managed, and our infrastructure stays safe. To keep providing these vital services, we are beginning a formal process under Proposition 218 to update our service rates. Keep in mind that the rates proposed are the most that the rates can be increased. These rates may be lowered, but cannot be any higher.

 

Why are rates increasing?

Rate adjustments are needed to keep up with increasing operating costs and ensure the long-term stability of our local systems. Key reasons for this proposal include: 

• Infrastructure Investment: Much of our system’s infrastructure is aging and requires proactive replacement to prevent costly emergency repairs.
• Rising Operational Costs: Inflation, higher expenses for purchased resources (like chemicals needed to sanitize our drinking water), and stricter state mandates for water quality and waste reduction have greatly increased the "actual cost of service". This, combined with the steadily rising costs related to health care, wages, and benefits for our dedicated team of employees, has significantly raised the revenue required to sustain the District.
• Financial Sustainability: Maintaining prudent reserves ensures we can respond effectively to emergency repairs like those we have experienced during this fiscal year

 

Addressing Your Concerns

The Board and Staff propose this rate increase only after reviewing the budget thoroughly to identify potential savings that could reduce the proposed increase. On March 18, 2026, the Board received a detailed report on the budget and the necessity of the increase for 2026-2027. The audio recording of the Board Meeting is available here. The Board recognizes the financial hardship these rate increases may impose on some residents, but as shown below, the Board has historically kept annual increases below the rate of inflation. The Board is committed to transparency, and all of the District’s financial information is accessible at the following link: www.rmcsd.com.

 

The rate increases over the past 20 years have been inadequate to cover the rising costs of running a District, let alone saving for repairs to the District’s aging infrastructure. In the 2022-2023 Grand Jury Report, on page 7, they noted,

“Insufficient Rate Increases”

The District fiscal year is from July 1 to June 30. A review of the District budgets shows that

they have increased fees slightly over time. Figure 3 shows the average annual Residential Rate

Increases for the five services the District provides for nine fiscal years, FY 13-14 through FY

20-22. It also shows the rate increase proposed for FY 22-23 but was not implemented. The average annual rate increase for the eight years FY13-14 through FY20-21 was 2.6 with a compounded rate increase over those eight years of 22.85%”

 

 

 We subsequently increased to higher rates in FY22-23, but rates fell back to a 5% increase in the past fiscal year. The annual increases for the past three years were about $14 to $32.

 These rate increases forced the Board to use property taxes (earmarked for reserves) to support the day-to-day operations of the District. This is our opportunity to get the District on a sound financial footing and to provide for both the current operation of the water and sewer systems and the necessary infrastructure improvements for a system installed decades ago. 

 

Review the Proposed Budget

Please take the time to review the proposed Budget, which can be found on the Rancho Murieta CSD website at www.rmcsd.com. The Board is listening to your feedback and realizes there may be items that could experience delays, be completed in phases, or be removed, such as:

• Dam Insurance – $60,000
• Document Shredding – $30,000
• Strategic Planning – $10,000

The Board and staff recognize that cost increases are difficult for consumers and have been very mindful of the impact even the smallest increase can have on fixed budgets. They have tried to balance this with the essential need to keep the water system intact, fully operational, and compliant with all regulations. Our efforts to improve the District’s overall financial management will lead to a clearer understanding of the revenues and expenses for each service area. The Board and staff will continue to work hard to maximize service and reduce costs for ratepayers. 

 

We welcome your feedback. Please send your questions to pio@rmcsd.com.