West Marin Rates 2025

West Marin Rate Study 2025

As we approach a new fiscal year in July 2025 the North Marin Water District (District) faces several challenges ahead in West Marin: aging infrastructure, two bridges carrying our water mains being replaced by others (Caltrans and the County), new developments in Point Reyes Station, and water supply resiliency. The District has developed a comprehensive long-term Capital Improvement Program (CIP) that not only addresses aging infrastructure but also water supply resiliency. In addition, we are analyzing ways to fund these projects and the necessary water rates needed to have a sustainable enterprise. Because of these known near and long-term CIP projects combined with increasing impacts of inflation, electricity costs and other costs that affect supplies, operations and construction, the District Board of Directors initiated a rate study for the West Marin Service Area. The rate study has considered all of these impacts to appropriately plan for a long-term rate structure with a goal of establishing a secure, multi-year financial plan that supports operating costs and capital spending necessary to provide water services that are reliable, high-quality, environmentally responsible and reasonably priced, and ensure that the rate structure complies with the (evolving) requirements of Proposition 218. This webpage contains various information on the rate development process and presents information on the proposed rate increases and how it may affect your water bill as a residential or commercial customer in the West Marin Service Area. Click HERE for a link to the current draft of the West Marin Rate Study.

West Marin Rate Study and Hearing Schedule for 2025 

We Want to hear from you! Please consider attending one of the events below to learn more about the rate process.

  • March 18, 2025 – Board Meeting (Initial Rate Study Presentation)
  • April 15, 2025 – Board Meeting (Final Rate Study Presentation)
  • May 2, 2025 – Official Mailed Notification
  • June 17, 2025 – Public Hearing to enact new water rates

* Meeting Location and Time: 999 Rush Creek Place, Novato, CA 94945 – 4:00PM

The Rate Setting Process

Rate Increase Drivers

Significant increase in capital spending

  • In the near-term, costs are driven by two bridge projects (required by CalTrans/County) and Gallagher Well No.3 (needed for water supply)
  • Also notable is a major water treatment plant (WTP) rehabilitation planned in 5 years
  • The majority of the system is reaching the end of design life. For instance, NMWD uses useful life values for various assets:
    • Water mains – 50 years
    • Pumping equipment – 25 years
    • Pump Stations – 50 years
    • Water Treatment equipment – 20 years
    • Buildings and Structures – 40 years
  • Projects range from water main replacements to storage tank replacements over the next twenty years. Enhancing water supply resiliency and a complete rehabilitation of the Pt. Reyes Treatment Plant is also planned.
  • Total projected costs for all planned capital improvement projects is currently estimated at 27.5 million.

Inflation

  • Operating cost in FY2025 are budgeted at $922,000 vs. $664,000  forecasted by 2021 Financial Plan (an increase of $258,000, or 39%)
  • Primarily from treatment, electric, and labor costs.

Fixed (Service Charge) vs. Variable (Water Use) Revenue

Approximately 11.2% of operating costs are variable
Approximately 5.7% of all costs are variable

However,

73.2% of rate revenue is currently variable, from the sale of water, which is not well balanced compared to fixed expenses.
We propose to incrementally increase the proportion of revenue that is fixed, the bi-monthly service charge (by about 3%).

Proposed Rates and Water Bill Impacts

The rate study has considered all of these impacts to appropriately plan for a long-term rate structure with a goal of establishing a secure, multi-year financial plan that supports operating costs and capital spending necessary to provide water services that are reliable, high-quality, environmentally responsible and reasonably priced, and ensure that the rate structure complies with the (evolving) requirements of Proposition 218. Through this process, preliminary near term rate increase proposals were created. Once the draft rate study has been presented to the Board on March 18, 2025, the draft rate study containing proposed rate increases and water bill impacts will be provided on this webpage.

More Information about the Rate Study and Hearing Process

For questions, comments or inquiries regarding the West Marin Rate Study and rate development process, presentation events and rate hearings, please call 415-897-4133 or email info@nmwd.com.