The Scotts Valley Water District’s Board of Directors voted to approve a rate increase to fund maintenance of aging infrastructure and future Capital Improvement Projects as well as pay ongoing operations and maintenance costs.

The Board voted 4-0 at its regular meeting on Oct. 8, 2026, to adopt new water rates that increase incrementally annually for the next five years. The new rates will take effect on Jan. 1, 2027. This decision came after the District followed a Proposition 218 process that included a Community Meeting in August, community outreach, mailers sent to District customers, and the opportunity for customers to object to the proposed changes.

“We’re committed to delivering clean, reliable and affordable water to the businesses and approximately 10,000 residents served by the Scotts Valley Water District through approximately 4,000 connections,” District General Manager Dave McNair said. “That work is supported in large part by customer rates.”

Once in effect, the monthly cost to a single-family household — based on an average of 3,600 gallons used in a month — is estimated to be $99.34, an increase of $7.61. As part of the water rate changes approved by the Board, the “tiers” for water use will reduce from four to three and Rate Assistance and Qualifying Medical Needs usage assistance programs will be based on Tier 1 rates.

The District’s Board of Directors reviews the adopted water rates annually to determine whether the full scheduled increase is necessary based on the district’s financial and operational needs. Historically, the Board has exercised its discretion to implement rate increases lower than those previously adopted when warranted by the district’s financial and operational circumstances.

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