The Goleta West Sanitary District, which serves more than 6,000 customers in Isla Vista and part of Goleta, is increasing its rates substantially in the next few years.

On July 1, the annual residential rate will increase to $308 per dwelling unit from $262, and by 2026, the rate will be more than twice as much as it is now.

The district’s board approved the rate increases on June 1, following the completion of a wastewater cost-of-service and rate study that was finalized on April 12.

The district hired Raftelis Financial Consultants to conduct the study and develop rates to be implemented over the five-year period between fiscal years 2024 through 2028.

The Goleta West Sanitary District uses the same treatment plant as the Goleta Sanitary District, which has been making improvements for biosolids treatment through the Biosolids and Energy Strategic Plan at its facility at 1 William Moffett Place, across from the Santa Barbara Airport.

In contributing funds toward the plant, the Goleta West district has incurred a debt of $14 million, the rate study stated.

The study said this project and other capital project requirements are the “primary driver of the increase in future revenue needs of the utility.”

“We are tied to Goleta Sanitary District’s infrastructure, and they are currently upgrading their whole treatment process in many multimillion-dollar projects,” Goleta West Sanitary District office manager Ken Park told Noozhawk.

“(Costs) are going to be increasing because of their investments. … We have been forced to take out a pretty sizable capital loan.”

He added that the loan is the “No. 1 reason” for the rate increases.

“In the long run, this will reduce costs overall and make things more green in a sense,” Park said.

In its resolution to raise rates, the district board said “the (cost-of-service and rate study report) has determined that current rates do not generate sufficient revenue to fund the cost of service and recommends increasing rates in order to recover the cost of service.”

Under the current rate structure, which the Raftelis consultants recommend that the district retain, customers pay a monthly fixed rate per equivalent residential unit that varies based on estimated customer strength loads and wastewater discharge volume.

Currently, residential customers pay $262 per dwelling unit each year — or $21.83 per month — and commercial surcharges apply for additional strength for certain commercial user categories, including hospitals and convalescent homes, service stations, hotels and other boarding or lodging facilities, restaurants and other food service facilities, and more.

Beginning July 1, the rate for residential customers will increase 18% to $308 per dwelling unit annually, or $25.67 per month.

“One of the things we will do is monitor our actual expenses and, if it turns out that we are not spending as much as we thought we would need, we will reduce our rates in the future based on our spending,” Park said.

He added that, currently and in the past, the Goleta West district has had relatively low rates compared to other local sanitary districts. That’s because the district receives property tax revenues directly, in addition to service fees from users, and can subsidize its rates with them.

Goleta West didn’t increase its rates from the mid-1990s until 2013 when it had to contribute toward treatment plant upgrades.

At the time, the district also said it had built up a reserve fund of $28 million to pay for its share of upgrades and other capital projects.

The Goleta Sanitary District’s current rate for single family residences is $530.38 per residence per year, or about $44.20 per month.

The district’s rates will increase each July 1 through July 1, 2026.

On July 1, 2024, the annual residential rate will increase to $388 per dwelling unit, then to $484 in 2025, and finally to $559 per dwelling unit per year in 2026, or $46.58 per month — more than twice as much as the current rate.

At the district directors’ June 1 meeting, the agency said it had received 26 written letters from residential customers protesting the rate increase.

Click here for more information on the rate increase and study on the Goleta West Sanitary District’s website, and click here for the wastewater and cost-of-service rate study.