Millions of Southern California residents could see one aspect of their water bill double.
On Tuesday, the Metropolitan Water District of Southern California (MWD) passed a budget that solidified rate and property tax increases for its customers over the next two years. Years of drought in California contributed to the increase, as the district battles revenue declines following widespread conservation efforts related to climate change.
Two abnormally wet winters have aided in California's recovery from drought, but despite the state's improved water conditions, conservation efforts have had an impact on the MWD.
"We've been successful in conservation to the point where our sales are declining, and we need to make that up somehow," MWD Board of Directors Chair Adán Ortega Jr. said, according to a Los Angeles Times report. "We've made up the revenue and stabilized the past rates with the reserves, and we can't keep doing that."
The increase will impact two aspects of residents' water bills—their monthly bill and their annual ad valorem property tax.
Water rates will increase by 8.5 percent in 2025 and another 8.5 percent in 2026. The rate increase will be reflected on the monthly water bill received by the 26 public water agencies the district serves. It delivers water to 19 million people in Los Angeles, Orange, Riverside, San Bernardino, San Diego and Ventura counties.
In addition to the rate increase, the budget doubles the MWD's property tax assessment.
"We understand the impact rate increases can have on businesses and residents, so we have taken great steps to limit our increase as much as possible," MWD General Manager Adel Hagekhalil said in a press release. "The difficult reality is, our costs have risen while revenues have dropped, so we need to take the fiscally responsible step of adjusting our rates."
An MWD spokesperson told Newsweek that water rates will change depending on how the district's member agencies receive their water.
"Some of our member agencies get all their water from Metropolitan, so our rate increase may be directly passed on to their consumers. Other member agencies get water from other sources that may or may not also have gotten more expensive, so their rates for consumers will be affected in other ways," the spokesperson said.
"For example, if a member agency buys very little water from Metropolitan and gets most of their water from groundwater, their rates won't likely be as affected by the Metropolitan increase," the spokesperson said.
"Consumers can always help lower their water bills by using less water," the spokesperson added. "Even if rates go up, reduced use means a lower bill compared to what it would have been had their usage not gone down."
According to a graphic shared with Newsweek, a home of median value in Los Angeles County pays $28 for the ad valorem property tax, which is based on the real estate's assessed value. That bill would double to $56 under the new bill.
In addition to the rate hikes, MWD officials pledged spending cuts in the new budget to counteract the need for higher rate increases.
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