Concerns mounting as Nipomo residents face significant water rate increases
Dave Alley
NIPOMO, Calif. (KEYT) – The Nipomo Community Services District (NCSD) Board of Directors is set to vote one week from today on a proposal that would raise monthly water rates by a significant margin.
The NCSD, which provides water and wastewater services to just under 14,000 people within the Nipomo area, is considering a series of water rate adjustments that would begin early next year.
In September, NSCD board members made a series of approvals, including voting for a 2025 Water Rate Study and rate adoption schedule, authorizing a notice for a rate hearing, scheduling a public hearing and deadline for submission of written objections to consider proposed water rates.
The Water Rate Study was conducted by the firm Tucker & Associates to help guide the district in their planning to increase revenue in order offset future costs.
Under the proposals, customers would see their monthly bill increase between 13.6% to 8.1% depending on usage.
According to data provided by the NCSD, the average single-family residence is currently paying $142.96 per month.
If the new rate increases are approved, the same household would pay $212.45 per month, which over the course of a year, is $828 more over a 12-month period.
“I acknowledge that it is a very difficult thing that our, ratepayers have to bear,” said NCSD General Manager Ray Dienzo. “But it’ll maintain good service for them and maintain health and safety, and maintain water resiliency for years to come.”
Dienzo added the rate increases are needed due to three main drivers, operational sustainability, water resiliency and also financial responsibility.
“Financial responsibility has to do with maintaining reserves so that we whenever we fall into any kind of emergency, the district will be able to meet those emergencies with reserves,” said Dienzo. “As far as water resiliency, we need to have that imported water come in (from the Santa Maria tie-in). The import of the water is going to increase our budget by 30%, essentially about $2.7 million, so that’s an extra amount of money that we need to help pay for through water rates. For operational responsibility, we need to maintain the health and safety of our community and also efficient operations of all of our water systems.”
The NCSD board voted in late September to move forward with the increases and will next officially vote on the rate adjustments next Wednesday, Dec. 10.
While the NCSD has expressed the reasons why the increases are necessary, there are many in the community who are not in support.
“The recurring things that I heard when I spoke to people was, this is out of control and crazy,” said NCSD customer Criss Blake, who is against the proposed rate increases. “It’s just a huge burden for so many people. People are looking at the rising costs of everything. Every grocery that they buy, everything is incredibly high now and they’ve tightened their belt, but the timing of this, I find is just pretty bad.”
Many NCSD customers are especially worried about the potential financial burden the proposed rate increases would create for those in the senior community.
“This is outrageous,” said Ken Marshall, Nipomo resident who is against the rate hikes. “That’s three times higher than any COLA (cost-of-living adjustment) that seniors are getting right now. It’s about 2.8% for 2026, so there’s no way that people who are on fixed incomes are people who are not able to stretch their budget like that and be able to afford these outrageous increases.”
Diezno warns that should the rate increases not go through, it will put both the NCSD, as well as its customers, in financial danger.
“They are difficult, but they are responsible,” said Dienzo. “They are difficult, but necessary because it would put the district at risk. We have aging infrastructure that we need to have the funded replacement capital, that needs to be in place. For example, the water tanks that we need to to maintain and a new well that we need to refit. These are very important to maintain operational sustainability and operational efficiency. There is no good alternative plan to to not do those projects because it would put the district at risk.”
Diezno also added the proposed increases do have anything to do with the planned Dana Reserve project, the large-scale housing and commercial development that has been approved along Highway 101 and Willow Road.
“The water rates increase will not fund the Dana Reserve project,” said Dienzo. “The Dana Reserve has their own capital funds that’s going to fund the project separate from the water rates increase.”
With the final vote looming, NCSD customers do have the opportunity to stop the proposed rate increases themselves and essentially take the vote away from the board.
If 50% plus one of the total amount of NCSD customers object to the proposed rate adjustments, the increases would be stopped.
To officially object the proposed rate increases, customers must submit an official valid written protest that includes a statement against the increase, the name of the customer, address or parcel number, original signature and date when signed.
Protests must be received before the closure of next week’s NCSD public hearing.
“The protest vote is extremely important,” said Blake. “I’m hoping everyone will look into the resources that are out on social media. There’s information on the NCSC web page. There is some information that you can find. Everyone should do that, and also, attend the meeting and, and be seen and be heard by the district.”
To stop the rate increases through the protest process, the opposition will need 2,337 households to officially protest, and while it is a very high number to obtain, Blake is hopeful it can be achieved.
“I not going to lie, I am daunted,” said Blake. “I don’t have pie in the sky hopes, but I’m not going to stop until we’re there because I believe that it’s possible if we’re able to reach as many people, basically the majority of people who learn about it and, and know about it, do protest.
Should the rate increases earn approval, it would go into effect on Feb. 1, 2026 and increase each year on same date in 2027 and 2028.
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