South Coast Water District ratepayers will see an average increase of 7% in their water rates and a 12% average increase in their sewer rates starting July 1, following a governing board vote on June 22.

On average, starting July 1, residents may see a $5.79 increase in their water bills and an $8.99 increase in their sewer bills, according to South Coast Water.

After holding three public workshops on water, recycled water and sewer rate studies and conducting a revenue needs analysis, the district concluded the rate increase is necessary to provide “financial stability and funding reserves” according to a SCWD staff report.

In a prepared statement, SCWD said the rate increases are the result of the “implementation of critical capital improvement projects, meeting our debt service convergence to maintain our credit rating, and maintaining our reserves to meet the District’s targets.”