Nipomo Residents Facing ‘Hard Hit’ to Water Bill Under Proposed Rate Increases
Dave Alley
NIPOMO, Calif. (KEYT) – Thousands of households in Nipomo are facing a significant increase to their water bill over the next few years.
Nipomo Community Services District (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.
On Wednesday, 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.
For the average single-family household, the projected monthly increase is 9.3%
“It is a hard hit,” said NCSD General Manager Ray Dienzo. “I acknowledge that it’s a lot, but it is necessary for a healthy water system and to maintain a good operation and maintenance and to maintain our upgrades with our capital projects that will make sure that our water system continues to run well, and not only that, that the water supply that we’re paying for, the imported water that we’re paying for offers good water supply and security, moving forward.”
For the average single-family home, the rate study showed there will be a monthly increase of $13.35, which would compute to $160 higher yearly water bill in 2026.
For the year 2027, the yearly amount would be even higher and the would climb even higher in 2028.
“That has concerned a lot of us,” said McQuillen. “We are a lot of people here on fixed incomes, and hat includes myself, and to have another increase in a bill when I’m a low water user, I’m not happy.”
Dienzo indicated under current rates, there will be insufficient funding for a scheduled increase in water delivery from Santa Maria, as well as planned capital improvements.
He added the additional revenue is also necessary to help the district avoid depleting its reserve funds.
“It is important to have the reserves,” said Dienzo. “It’s important to maintain or capital improvement projects going. If this doesn’t go through, we would have to make significant cuts in our capital program, perhaps, which would be detrimental to the district because we definitely want good water supply for the future. If we didn’t have that, it would be very difficult.”
While the NCSD points out why the increases are necessary, many in the growing community aren’t thrilled about the prospect of having a higher water bill.
“We don’t like it, and neither do our neighbors,” said NCSD customer Lory Manosar. “Nobody likes it.”
Manosar was one of handful of people who spoke during public comment to let their feelings be known regarding a potential rate hike.
“Everything is going up,” said Manosar. “My husband and I are retired, so these rate increases are going to affect our pocketbook.”
Another NCSD customer Pat McQuillen also spoke during the meeting and expressed her frustration about the idea of paying more for water.
She said afterwards that while she doesn’t agree with the potential increases, Quillen pointed out just how important the resource is to everyone.
“Water is worth more than gold and is worth more than platinum,” said McQuillen. “It’s worth more. It’s life. It’s life sustaining, so to have clean and plentiful water is critical, and yes, we’re willing to pay for it.”
With the approvals, the NCSD will hold a public hearing on Dec. 10, 2025 to vote on the proposed rate adjustments.
NCSD customers currently pay the fourth highest water rates in the county, trailing only Avila Beach, Los Osos and San Luis Obispo, so the proposed increases would only add to what is already a sizable water bill when compared to other communities.
“The rates are going to be high compared to the other portions of the county,” said Dienzo. “But the good thing about it is that it’s the price to pay for a good water system operation and maintenance and capital program and also water supply security.”
Dienzo pointed out there will be an opportunity for NCSD customers to officially protest the proposed rate hikes.
“We send the the rate increase notices to all of the the customers in the, in the Nipomo Community Services District,” said Dienzo. “State law requires that it would be a 45 day notice, but in reality, our customers will have 60 days todo a protest if they wish to do so. There’s also an opportunity to write what’s called a written objection, which is, a new state law option that allows someone to challenge something legally if they find, something legally, lacking in the way the rate study was done, so that’s also available and that due date is December 1st to to send us a written objection which we can respond to in writing.”
If enough NCSD customers object to the proposed rate adjustments, the increases could stopped.
“If 50% plus one of the customer base protests the increased rates,” said Dienzo. “It won’t be approved.”
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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