San Juan Water District Cancels January 2026 Retail Rate Increase

 
We’re pleased to share positive news resulting from the San Juan Water District Board of Directors’ recent financial decisions and long-term planning.

At its December meeting, the San Juan Water District Board of Directors voted unanimously (5–0) to cancel the retail water rate increase that had been scheduled to take effect on January 1, 2026.

How this was possible

This decision reflects the District’s strong financial performance and careful stewardship of ratepayer funds. After adopting the District’s multi-year rate plan in July 2025, staff completed a final budget-to-actual review of revenues and expenses for Fiscal Year 2024–25 in November 2025. This review showed the District finished the year in a stronger financial position than originally projected, driven by higher-than-anticipated revenues and lower-than-expected operating costs.

As a result, the Retail Operating Fund generated approximately $2.1 million more per year than assumed in the original financial plan. Thanks to this strong financial position, the District can meet its operating, capital, and reserve requirements without implementing the January 2026 rate increase. This ensures stable rates while continuing to invest in the water system our community relies on.

How we’re saving money for you

By funding major capital projects with available cash instead of issuing long-term debt, the District continues to use a “pay-as-you-go” approach. This strategy is expected to save ratepayers approximately $6.4 million in interest costs over the next 30 years, including:

• Approximately $3.8 million in avoided interest on the Kokila Reservoir project
• Approximately $2.6 million in avoided interest on the Cavitt–Stallman Pipeline project

These savings mean more of your rate dollars can be invested directly in maintaining a safe, reliable, and sustainable water system—rather than paying interest to lenders.

Looking ahead

Each year, the District carefully reviews its finances to ensure water rates reflect the actual cost of providing service while maintaining prudent reserves and long-term system reliability. Your continued support helps the District plan responsibly and prioritize investments that benefit the entire community.

A message from the General Manager

“Through careful planning, disciplined financial management, and strong oversight by the Board of Directors, the District is able to maintain rate stability while continuing to invest responsibly in the infrastructure our community depends on. This achievement is made possible by the professionalism of our Board, the dedication of our staff, and the trust and support of our customers.”

– Adam Larsen
   General Manager
   San Juan Water District

Thank you for being a valued San Juan Water District customer. Your partnership and trust allow us to maintain a strong, sustainable water system today and for years to come.