Wastewater Rate
Study and Prop.
218 Authorization
GROVERBEACH.ORG
Nick Szamet
Administrative Services Director
Current Rate Structure
GROVERBEACH.ORG
• Background
• On March 24, 2025, the Council received the results of the updated Wastewater Utility Rate Study provided by Clayton Tuckfield of Tuckfield and Associates
• Current rates adopted in May 2021 and re-established following repeal rate structure adopted in December 2023
• The existing rate structure does not sufficiently fund regular operations and maintenance costs or $15 million in needed infrastructure improvements to address system deficiencies and future needs • Inability to fund necessary sewer projects risks community health and safety and delays Measure K-14 street projects.
Proposed Rate Structure
GROVERBEACH.ORG
• Study Findings
• Annual increases of 17.8% for
each of the next five years
beginning July 1, 2025
• Bi-monthly bill for single-family
residential wastewater customers
would increase from $25.64 to
$30.20 in 2025
• For a total monthly increase of
$2.28. Proposed
SFR Charges Current FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 Fixed Charges $25.64 $30.20 $35.58 $41.92 $49.38 $58.16 SSLOCSD Charge $50.96 $50.96 $50.96 $50.96 $50.96 $50.96 Fixed Charges $76.60 $81.16 $86.54 $92.88 $100.34 $109.12 Dollar Change $4.56 $5.38 $6.34 $7.46 $8.78
Percent Change 6.0% 6.6% 7.3% 8.0% 8.8%
$76.60 $81.16
$86.54
$92.88
$100.34
$109.12
$0
$20
$40
$60
$80
$100
$120
Current FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30
Fixed Charges
Comparison with Other Cities/CSDs
GROVERBEACH.ORG
$0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 $220 $240 Avila Beach CSD
Morro Bay
Cayucos CSD
Cambria CSD
San Luis Obispo
Paso Robles
Pismo Beach
Atascadero
Grover Beach July 1, 2025 Bill
Grover Beach Current Bill
Oceano CSD
Arroyo Grande
Community Outreach
GROVERBEACH.ORG
• Provided webpage with information on
rate study and planned increases
• Emailed postcards to all property owners
and customers (deduplicated) on April 3
with brief information outlining the
increases
• Added link to find more information on
April utility bills
• Two community forums 5 PM-6:30 PM on
May 8 (City Hall) & May 28 (Ramona)
Recommendation
GROVERBEACH.ORG
• Receive and file the final wastewater utility rate study report • Authorize staff to commence the Proposition 218 noticing process and schedule the public hearing for June 9, 2025 • Staff will mail Proposition 218 Notices in English and Spanish to all customers and property owners with at least 45 days notice Questions
GROVERBEACH.ORG