Investing in Reliability While Keeping Rates Stable

 

Most customers judge their water provider by a few simple measures.

Is the water safe?

Is the service reliable?

Are rates affordable?

Those are reasonable expectations. They're also the same questions San Juan Water District asks when making decisions about infrastructure, finances, and long-term planning.

Over the past few weeks, the District reached two important milestones that reflect those priorities: securing federal funding for a major infrastructure project and canceling a planned water rate increase.

Together, those actions tell an important story about how the District is working to maintain reliable service while managing customer dollars responsibly.
 

Bringing Outside Funding Home

On October 6, San Juan Water District welcomed community leaders, regional partners, employees, and Congressman Kevin Kiley to celebrate a major milestone for the Kokila Reservoir Replacement Project.

The event recognized approximately $1.25 million in federal funding secured through the U.S. Environmental Protection Agency's State and Tribal Assistance Grants Program to support the project.

For many customers, grant funding may not sound like exciting news.

But it matters.

Every dollar secured from outside funding is a dollar that does not need to come directly from local customers.
The Kokila Reservoir Replacement Project is a significant investment in the future of the water system. The existing reservoir has been serving customers since 1984 and has exceeded its original design life.

When complete, the new 4-million-gallon reservoir will provide:

• Improved system reliability
• Enhanced emergency storage capacity
• Support for fire protection and emergency response
• Greater operational flexibility
• Long-term infrastructure resilience

Most customers will never see this facility.

But they will benefit from the reliability it provides.
 

Strong Finances Create Opportunities

Securing grant funding is only one part of the story.

Over the past year, District staff completed additional reviews of the Capital Improvement Program and identified project savings that reduced future funding needs while preserving critical investments in infrastructure, water

quality, regulatory compliance, and public safety.
At the same time, the District has continued evaluating opportunities to improve efficiency, reduce costs, and pursue outside funding whenever possible.

Those efforts matter because they create flexibility.

And flexibility gives the District more options when making decisions that affect customers.
 

Board Votes to Keep Rates Unchanged

On September 23, 2026, 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, 2027.

For retail customers, that means rates will remain unchanged for the second consecutive year.

The decision was made possible by the District's strong financial position, savings identified within the Capital Improvement Program, and continued efforts to responsibly manage customer dollars.

The recent action also continues a pattern that has developed over the last several years.
 

Three Consecutive Years of Rate Relief

Over the past several years, the Board has repeatedly looked for opportunities to reduce the impact of planned rate increases while still maintaining the infrastructure and services our communities depend on.

Those actions include:

• March 2023: The Board approved a rebate for all retail customers using savings generated from the 2022 water transfer.
• July 2025: A planned 2% rate increase was reduced to 1%.
• December 2025: The Board voted unanimously (5-0) to eliminate the retail water rate increase that had been scheduled to take effect on January 1, 2026.
• September 2026: The Board voted unanimously (5-0) to cancel the planned January 2027 retail water rate increase.

Throughout that same period, the District continued investing in infrastructure improvements, maintaining reserve levels, and planning for long-term system needs.
 

Why This Matters to Retail Customers

Retail customers benefit directly from stable rates, continued infrastructure investment, and a utility that actively looks for opportunities to reduce costs without sacrificing service levels.

The result is a water system that remains reliable while minimizing pressure on future rates whenever possible.
 

Why This Matters to Wholesale Customers

Many communities throughout the region receive water through local providers that rely on San Juan Water District treatment facilities, storage infrastructure, and transmission systems.

Projects like the Kokila Reservoir Replacement Project strengthen regional reliability, increase emergency storage capacity, support fire protection, and help ensure dependable service for communities throughout the wholesale service area.

The recent grant funding milestone and the Board's rate decision demonstrate that it is possible to invest for the future while continuing to look for opportunities to reduce costs for customers today.
 

Your Water. Your District.
Reliable Water. Responsible Stewardship.