SAN LORENZO VALLEY WATER DISTRICT BOARD APPROVES RATE INCREASE IN RESPONSE TO FIRE AND STORM RECOVERY COSTS

BOULDER CREEK, CA — The San Lorenzo Valley Water District (the District)
announced the Board of Directors voted 4-1 to approve a proposed rate increase following a Proposition 218
process. The vote was taken at the District’s regularly scheduled Board of Directors meeting on Thursday, Feb.
15, 2024.

The new rates for water and Bear Creek Estates wastewater services will go into effect March 1, 2024. The
additional revenue will help address impacts from the CZU Lightning Complex Fire, COVID, the destructive
storms of winter 2022/2023 and increased costs to provide service for customers.
The rate increases are the result of a rate study process that began in March 2023 and included eight public
meetings.

A Proposition 218 notice was sent to customers in late December. Per Proposition 218, property owners and
customers were allowed to file written protests about the proposed rate increase.

Additional Background

The District depends on income from ratepayers for 85% of its total revenue. This revenue funds both ongoing
operating costs and major infrastructure improvements (essential maintenance, critical upgrades, and
storm/fire repairs and replacements). Expenses over the past decade have been increasing faster than
inflation due to rising cost of operations and maintenance and state-mandated expenses beyond the District’s
control.
The rate increase for water service will be spread over a 5-year period. The specific water rate increase for
each customer will depend on their meter size, the amount of water used — including seasonal variations in
water use — and their user category (e.g., residential vs. industrial).
The new rates for Bear Creek Estates wastewater customers also will be implemented on March 1, 2024.
For more information about the rate changes, including frequently asked questions, financial plans and
presentations, visit: www.slvwd.com/prop218.

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