Item 2.1
10/9/26
To:
Chair Tony Estremera and Members of the Board of Directors Santa Clara Valley Water District
5750 Almaden Expressway
San José, CA 95118
Subject: Concerns Regarding Water Rate Increases and Affordability for Residents Dear Chair Estremera and Members of the Board of Directors, I am writing on behalf of the residents of San José's District 7 regarding the groundwater production charge increases approved for FY 2026-27 and projected through FY 2035-36, as outlined in the February 27, 2026 PAWS Report.
For North County Zone W-2, which serves San José, the groundwater production charge rose 9.1 percent this fiscal year, going from $2,450 to $2,673 per acre-foot and adding approximately $5.63 per month to the average household's bill. Valley Water's own projections show this increase compounding annually, reaching an estimated $9.27 per month in added cost by FY 2035-36. That figure doesn't even include any additional increase a retail water provider layers on top.
These wholesale increases don't stop at Valley Water's own charges. Wholesale water costs make up roughly 65 cents of every dollar Muni Water collects from customers, so a wholesale rate increase requires a proportional increase downstream. That means District 7 residents feel this twice, once through Valley Water's charge, and again through their retail provider's pass-through rate.
Many households in our district are already managing rising costs across housing, food, and other utilities, and a sustained decade of annual increases in this range represents a real and compounding burden, particularly for fixed-income seniors, working families, and small businesses. The cost of living here is blatantly too high, and people are leaving for more affordable regions. These additional fees and expenses continue to add up, putting even more pressure on residents who are already stretched thin. Our community has reached its limit, and my residents deserve relief, not another burden on their wallets.
Thank you for your attention to this issue and for your continued work to maintain a reliable water supply for Santa Clara County.
Sincerely,
Councilmember Bien Doan
District 7, City of San José