Las Virgenes Municipal Water District (LVMWD/District) last adopted 5 year rate structures in accordance with California Proposition 218 in 2015. That adoption was significant because the District moved to a Budget Based rate structure, which has been in effect since. In 2020, the LVMWD Board of Directors will be considering adjusting rates in accordance with Proposition 218, and has adopted the following Guiding Principles for the Rate Study: 

1. Maintain a rate structure that is fair and equitable across customer classes.
   • Reexamine commercial budgets to promote efficient use, but in a manner that supports business development.
2. Maximize revenue stability through different unknown economic and environmental conditions.
3. Provide a price signal to drive efficiency ethic and minimize rate impacts to efficient customers.
4. Ensure rates are compliant with California Constitution Article XII D (Prop 218).  

Main Factors for Utilities in Setting Rates

LVMWD staff worked with an outside consultant (Raftelis) to examine the current financial standing of the District and the projected revenues and expenses, and provided this information to the Board of Directors. The cost of water and sanitation services are highly dependent on several factors, including: 

• The wholesale cost of water. LVMWD is currently solely dependent on imported water purchased from the Metropolitan Water District of Southern California and is subject to their price increasaes.
• Environmental cost. The District is morally and regulatorily obligated to protect the unique environment within our service area the Malibu Creek watershed and Santa Monica Mountains. Over the years, increased regulations to protect these resources has translated to additional costs associated with  monitoring, reporting and capitol infrastructure improvements.
• Climate change.  Water is naturally scarce in California and must be brought in from faraway places, such as the San Francisco Bay Delta and Colorado River. Bringing water from these sources requires significant infrastructure that must be maintained and further developed as the State addresses inconsistent water availability year-over-year.  Making improvements to this infrastructure to address climate change is impacting the cost to deliver water.
• Cost of utilities and other goods and services. Electricity is a significant cost to transport water throughout the system, providing for dependable delivery right to your property. The cost of all goods and services rises each year including the cost of chemicals, replacement parts, and contracts for construction and maintenance services.
• Capital needs. Ensuring the District can continue to provide reliable water and sanitation services requires the District to invest in  replacing or refurbishing pipe lines, pump stations and other facilities each year through its capital improvement program. 

The Rate Study

Rate studies involve a very detailed, multi-staged process to determine what the rates need to be for the next five-years in order for the District to be able to continue to be able to provide reliable water and sanitation service to our community. As each stage of the rate setting process occurs, this page will provide a one-stop destination to access all the relevant reports.

Revenue Needs Analysis

The first step in the Rate Study is to determine the District’s revenue needs for the next five years based on projected costs and the factors noted above. On August 8, 2020 the results of the future revenue needs was presented to the LVMWD Board, which can be found below.

Watch the Revenue Needs Board Presentation

View the Raftelis Revenue Needs Slide Show in PDF

Cost of Service Analysis and Draft Rates

The next step in the Rate Study is to develop draft rates for the next five-year period based on a cost of service analysis. The results of this Rate Study were presented to the Board on November 10, 2020, which can be found below.

View the LVMWD Rate Study Workshop Summary Board Memo 

View the Cost of Service and Proposed Rates 2021-2025 Slide Show in PDF

View the Raftelis LVMWD Board of Directors Slide Show in PDF

View the FAQ's 

Set A Public Hearing

A public hearing has been set for February 2, 2020 at 9:00 am for the Board to consider adoption of the proposed rates.

View the Board Memo setting the public hearing
View the PowerPoint Presentation
View the Rate Study Report
View the Proposition 218 Notice

Public Meetings for Residential, Recycled and Sanitation Rate Changes

Two virtual public meetings have been scheduled to discuss the proposed residential rates with the community. 

View the January 13, 2021 Public Meeting on Residential Water Rates Below

Public Meeting for Commercial Rate and Rate Structure Changes 

One virtual public meeting has been scheduled to discuss the proposed rates with our commercial customers. 

View the January 26, 2021 Public Meeting on Commercial Water Rates Below

Public Hearing on Proposed Rate Changes

 February 2, 2021 - 9:00 am

LVMWD Live Stream of the Public Hearing on Proposed Rate Changes