The water utility is self-funded meaning that it requires that revenues equal expenditures. The rate increase is necessary so the utility is financially sustainable and does not fall into deficit spending. The cost to supply the water, store it, and distribute it to the community continues to increase each year. There are also ongoing required maintenance and improvements of the water system to ensure stable and safe water to the community.

In addition, new State Water regulations for distribution system water quality require a higher level of investment in operations, equipment and facilities to change the way water flows through the system.

Water rates are established to pay for ongoing operations, maintenance, repair and improvements of the existing system. Water rates also pay for staff salaries, operating materials and supplies, vehicles, training and projects included in the Capital Improvement Program (CIP). 

The rate increase is needed to maintain the current level of service for all City of Sonoma water customers and maintain reliable and safe water service to customers.