On Tuesday, June 10, the East Bay Municipal Utility District (EBMUD [1]) Board of Directors adopted a $3.2 billion two-year budget and associated rates and charges for Fiscal Years (FY) 2026 and 2027.
[2]The new water and wastewater rates will take effect July 1, 2025, and will support significant investments in a 10-year Capital Improvement Program that renews critical infrastructure, protects the environment, and delivers high-quality water at reasonable rates.
“This budget reflects EBMUD’s unwavering commitment to reliable service, public health and environmental protection,” said Board President Marguerite Young. “These water and wastewater systems are integral part of life and work in the East Bay. Our care and investment in the upkeep of this infrastructure is a responsibility we take seriously.”
The Board voted 5-2 to approve the rates and charges subject to Proposition 218, 7-0 to approve the rates and charges not subject to Proposition 218, and 6-0 with one abstention to approve the biennial budget.
[3]Rate increases
EBMUD water rates will increase, on average, 6.5% in both FY 2026 and FY 2027. For FY 2026, changes in individual customer bills will vary based on usage and other factors, due to updates from EBMUD’s recent cost-of-service study. EBMUD wastewater rates will increase, on average, 8.5% in each of the next two years.
A typical residential household using 125 gallons of water per day would see an increase in the water bill of about 12 cents per day ($3.77 per month) in the first year, and an additional increase of 14 cents per day ($4.30 per month) in the second year. The same household, if also a wastewater customer, would see an increase of 8 cents per day ($2.31 per month) in the first year, and an additional 8 cents per day ($2.35 per month) in the second year.
EBMUD is a not-for-profit public utility, and customers’ rate dollars directly fund operations and capital improvements. Any additional revenue is reinvested in the system.
Water service budget highlights
- Investments of $1.2 billion in capital projects over the next two years, and $5.6 billion over the next 10 years. The 10-year plan includes $1.9 billion in water pipeline replacement and $713 million in water treatment plant upgrades.
- The multi-year Orinda Water Treatment Plant Disinfection and Chemical Systems Safety Improvements Project will add ultraviolet and chlorine disinfection to the plant that serves more than 800,000 customers daily.
- Install more than 50 miles of water pipelines with ongoing and new projects in Oakland, Orinda, Castro Valley, Richmond, Berkeley, Alameda, Lafayette, Walnut Creek, El Sobrante, San Pablo, and seven other jurisdictions including Contra Costa County, El Cerrito, Piedmont, Pleasant Hill, San Leandro, San Lorenzo and Hayward.
- Employs a prudent debt strategy by issuing new bonds for a portion of planned capital investments while partially paying down existing debt.
Wastewater service budget highlights
- Investments of $170.8 million in capital expenditures over the next two years, and $1.2 billion over the next 10 years to improve large wastewater collection pipes, pump stations, treatment facilities, electrical controls, and major projects related to nutrients and protecting the health of San Francisco Bay.
- In the next two years, upgrades will be made to the Emeryville Sewer Pipeline, Pump Station H in Oakland, Constitution Way Pipeline in Alameda and improvements at the Main Wastewater Treatment Plant.
- Strategically incorporates the use of bonds along with cash to fund the capital plan while enabling the pay down of a portion of outstanding debt.
“With a century of service behind us, EBMUD is looking to the future and finding innovative solutions for emerging issues,” said General Manager Clifford Chan. “Whatever the challenges ahead, EBMUD will be here to develop solutions and deliver the highest quality water and wastewater services.”
To see a map of active and upcoming projects in your area, visit EBMUD’s website [4].