If more people are moving in and paying to connect, why are my utility rates increasing?
Fair question—let’s take it for a drive.
Impact fees = buying the car
When a new home is built, the developer pays a one-time fee, much like buying a new car. It covers the upfront costs to get the house “on the road,” including pipes, pumps, and system upgrades so that more people can connect to the system.
In some neighborhoods, homeowners also pay Mello-Roos through their mortgage. This special tax helps fund early infrastructure, such as roads, schools, parks, and sometimes utilities. Essentially, the essentials that make a neighborhood livable from the start.
Monthly rates = keeping it running (and planning)
Your utility bill is like paying for insurance, gas, registration, and tune-ups. However, it also covers saving for a future replacement. Because over time, the car (or system) wears down, parts become more expensive, and new safety or environmental standards take effect. It’s hard to predict, but we must be ready. So even when new homes help pay for the car, it still takes a steady stream of investment to keep it road-ready for everyone.
Your monthly utility bill covers ongoing operations and maintenance:
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Treating and delivering safe drinking water
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Maintaining or rehabilitating pipes, pumps, and plants
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Keeping wastewater systems running 24/7
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Managing costs to run waste and recycling programs
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Meeting environmental and safety regulations that are often unfunded mandates from our state and federal government
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Staffing costs and support services to run utilities
Even if a neighborhood is brand new, its homes still rely on this complex, around-the-clock system. Operating it gets more expensive over time, especially with rising energy and chemical costs, rising material costs to replace aging infrastructure, and growing regulatory demands.
Growth helps but doesn’t cover everything
Thoughtful planning and measured growth can be highly beneficial when executed effectively—those upfront impact fees help, but they’re designed for capacity-building, not long-term operations.
Think of it like this:
| Impact fees |
Monthly rates |
| One-time charge |
Ongoing, monthly |
| Paid by developers (or through Mello-Roos, which the customer pays) |
Paid by customers |
| Funds infrastructure expansion |
Funds daily operations, rehabilitation |
| Supports system expansion when a community grows |
Keeps the system running |
One doesn’t replace the other. They work together to build and maintain a reliable system.
So, why do rates go up?
Just like your grocery bill, utility costs are rising. Materials, energy, and labor all cost more. We’re investing in upgrades to stay resilient, meet stricter environmental standards, and prepare for the future. We work hard to keep costs low and service reliable, but when rate adjustments happen, we ensure we can continue doing the job right while balancing affordability.
The bottom line
New homes pay to join the system. Monthly bills keep it running. Different tools. Different purposes. But the same goal: a strong, sustainable utility system for everyone.