$3.2 billion budget to support water and wastewater infrastructure
East Bay Municipal Utility District (EBMUD) General Manager Clifford Chan has now recommended proposed rates and charges for Fiscal Year 2026 (starting July 1, 2025) and Fiscal Year 2027 (starting July 1, 2026) to the agency’s Board of Directors. These rates and charges will help fund the proposed $3.2 billion biennial budget “to keep essential water and wastewater services reliable and resilient,” according to the utility.
This budget includes a 10-year financial plan for a Capital Improvement Program that renews critical infrastructure, protects the environment, and delivers high-quality water at reasonable rates.
Proposed decreases in the monthly water service charge (based on meter size) and proposed increases in the volumetric unit rates (applicable to water usage) are based on an updated cost of service study completed in 2025. The impact on water bills will vary, based on water use, elevation, and other factors. If approved, EBMUD water would cost about 2 cents per gallon.
“EBMUD works every day on major upgrades and replacements of our critical infrastructure. This budget is a strategic step toward long-term financial resilience while we modernize these critical systems,” General Manager Chan said. “With many known and unknown challenges ahead, our focus on public health and environmental protection remains unwavering. These planned investments will help EBMUD address aging infrastructure and prepare for earthquakes, emerging contaminants, and the impact of climate change which is worsening droughts and wildfires in California.”
Proposed rates
The proposed water system budget would involve average rate increases of 6.5% in each fiscal year. For Fiscal Year 2026, changes in customer bills would vary based on usage and other factors, due to updates from the cost-of-service study. For wastewater, the proposed average rate increases would be 8.5% each for Fiscal Year 2026 and Fiscal Year 2027. For greater detail about rate changes and bill impacts, please visit the EBMUD Rates web page.
A typical residential customer using 125 gallons of water per day would see an increase of about $3.77 per month (12 cents per day) in the first year, and an additional increase of $4.30 per month (14 cents per day) in the second year. The same household, if a wastewater customer, would see an increase of $2.31 per month (8 cents per day) in the first year, and an additional $2.35 per month (8 cents per day) in the second year.
Water service budget highlights
The proposed budget:
- Includes investments of $1.2 billion in capital projects over the next two years, and $5.6 billion over the next 10 years. In the next decade, EBMUD plans to invest nearly $1.9 billion in water pipelines and complete $713 million in upgrades to water treatment facilities.
- 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.
- Installation of 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.
- Adds 11 positions for education, skilled trades, recreation area safety, customer affordability programs, paving and utility labor.
Wastewater service budget highlights
The proposed budget:
- Includes 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 the San Francisco Bay.
- This year, Emeryville Sewer Pipeline Rehabilitation and Pump Station H in Oakland; Constitution Way Pipeline Rehabilitation in Alameda and improvements at the Main Wastewater Treatment Plant within two years.
- 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.
- Adds two additional positions for skilled trades and critical electrical projects.
Next steps
To learn more about the proposed budget, visit the EBMUD Rates web page or join the EBMUD Water Wednesday webinar, “Tapping into Tomorrow,” a deep dive into the proposed budget, on May 21 at 6 p.m.
Attend the EBMUD Board of Directors public hearing to consider adoption of the proposed budget and rates on June 10 at 1:15 p.m. at 375 Eleventh Street, Oakland. The public may attend board meetings in person or on Zoom. To attend on Zoom, use Webinar ID: 924 3316 2059 and Passcode: 282322, or click this meeting link.
Submit a public comment at the meeting. In person, fill out and submit a blue speaker card, available in the meeting room. Via Zoom, use the raise hand feature to indicate you wish to make a public comment. When prompted by the Secretary, state your name, affiliation if applicable, and topic.
Submit written comments or materials via email [email protected] by 4 p.m. the day prior to the scheduled regular meeting. Indicate the meeting date and agenda item.
