On Tuesday, July 15, 2025, the City Council took the latest step in the City’s efforts to update its water rates by accepting the 2025 Water Rate Study Report and authorizing Proposition 218 notification for water and sewer rate changes.
Like most California water providers, Pleasanton faces ongoing challenges related to aging infrastructure, stricter regulatory requirements, higher water quality standards, and rising construction costs. The City of Pleasanton must regularly assess its water rates and fees to ensure it can address the industry’s growing challenges and sufficiently cover the City’s cost of service.
Since 2023, the City has taken a systematic approach to investing in the future of its water system. In September 2024, the City began its rate-setting process by contracting with Water Resources Economics, LLC, to conduct a comprehensive water rate study to develop an updated four-year schedule of water and recycled water rates, drought rates, and water connection fees.
The 2025 Water Rate Study consists of a comprehensive cost-of-service analysis and proposed changes to the City’s rate structure and rates that align with the Water System Management Plan’s long-term infrastructure needs and the funding priorities outlined in the City’s Financial Analysis and Plan.
Under Proposition 218, the City is required to notify all property owners or customers of record of proposed water rate changes and hold a public hearing to adopt the rates. The City must mail public hearing notices to all customers at least 45 days before the public hearing.
A draft public hearing notice was presented and approved at the City Council meeting. All notices will be printed and mailed by July 30 and will arrive in mailboxes soon. The public hearing notice clearly shows all proposed rate changes, provides information on the public hearing date/time/location, and provides instructions on how customers may protest the proposed rate changes.
Key changes include achieving full cost recovery of Zone 7 fixed costs as a pass-through rate and switching to a uniform consumption-based variable rate for all customers. Based on the proposed rates, 52 percent of bi-monthly, single-family water bills are expected to increase by $20 to $40 in the first year. More information is available at PleasantonWater.com/Rates.
Below is a summary of the steps remaining in the City’s Water Rate Update:
- Public Hearing Notices Mailed – July 30, 2025
- Public Review Period – August and September 2025
- Public Hearing and Adoption of Rates and Connection Fees – October 7, 2025
- New Water and Sewer Rates and Water Connection Fees Effective – January 1, 2026
Stay informed about our efforts by following the City on social media on Facebook or Instagram. For questions regarding the proposed rate changes, you may call (925) 931-5500 or email us at [email protected]. Please note that written protests will not be accepted via email. All protests must be submitted in accordance with the instructions outlined in the public hearing notice.
To learn more, view the City Council staff report, presentation, water rate study, and public hearing notice.