On August 5, 2025, the LVMWD Board of Directors has scheduled a public hearing for October 9, 2025.

Water and Sewer Rate Study

The Las Virgenes Municipal Water District (LVMWD) has a Budget-Based Rate Structure, designed to encourage water-use efficiency and support long-term sustainability. This approach fairly allocates costs and promotes conservation. In 2020, the LVMWD Board adopted a five-year rate plan that developed rates in effect through 2025. Now, as the current rate structure reaches the end of its lifecycle, the LVMWD Board of Directors is preparing to consider new adjustments, once again in accordance with Proposition 218. To guide this important process, the Board has adopted a set of Rate Study Policy Principles:

Policy Principles

• Maintain a rate structure that is fair and equitable across customer classes and maintain commercial water budgets that promote efficient use in a manner that supports business and economic development.
• Maximize revenue stability to navigate variable economic and hydrologic conditions.
• Provide a strong price signal to drive an efficiency ethic and minimize rate impacts to efficient customers.
• Ensure that rates are compliant with California Law.
• Propose rates that allow the District to meet a minimum debt-service coverage ratio of 1.50.

What Drives Rates?

LVMWD partnered with Water Resources Economics (WRE), a leading rate consulting firm, to analyze the District’s financial needs and develop a roadmap for sustainable service delivery. Several key factors influence how water and sewer rates are set:

• Diversification of Water Supply
  • Imported Water Costs - LVMWD currently relies entirely on imported water purchased from the Metropolitan Water District of Southern California. Rising wholesale water rates directly impact what we pay to deliver water to our community.
  • Development of New, Dependable Water Sources
    • Pure Water Project - Maximizing the beneficial reuse of our high quality recycled water, this project will purify this water using advanced treatment technologies to create our first local and sustainable source of water that will account up to 30% of our drinking water needs.

• Service Reliability
  • Climate Change - Water scarcity and extreme weather make long-term planning essential. Much of California’s water must be transported from distant sources like the Bay-Delta and the Colorado River, requiring costly infrastructure that must be maintained, upgraded, or expanded to withstand climate-related challenges.
  • Capital Investments - Aging infrastructure—like pipelines, pump stations, and treatment facilities—must be repaired or replaced through our Capital Improvement Program to ensure the reliability and safety of our water and sewer systems.
  • Operating Costs - Electricity, chemicals, replacement parts, and construction services all play a role in delivering water and sanitation services. Like everything else, these costs rise over time and must be factored into rate planning.

• Regulatory Compliance
  • Environmental Compliance - As stewards of the Malibu Creek Watershed and the Santa Monica Mountains, the District must meet strict environmental regulations. This includes ongoing costs for monitoring, reporting, and capital improvements to protect our sensitive ecosystems.
  • Evolving Treatment Requirements and Regulations - Rapidly changing treatment requirements and the emergence of new regulations surrounding both drinking water and waste water treatment must be accounted when developing our rates.

About the Rate Study

Setting new rates is a complex, multi-phase process. The goal is to ensure the District can continue providing safe, reliable, and environmentally responsible water and sanitation services for years to come.

As the rate study progresses, this page will serve as your go-to resource for updates, reports, and public meeting information. We encourage all customers to stay informed and engaged.

Proposed Rates