OAKLAND (CBS SF) – Officials with the East Bay Municipal Utility District (EBMUD) announced Monday that the agency is seeking to raise water and wastewater rates starting in July in its proposed two-year budget.

The agency, which provides water to 1.4 million customers in Alameda and Contra Costa counties, is proposing a 4% rate increase in the next fiscal year starting on July 1. An additional 4% increase would go into effect on July 1, 2022.

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“Over the next two years, we will invest hundreds of millions of dollars to improve our aging water and wastewater infrastructure, such as pipeline replacements, water treatment plant and seismic upgrades, structural rehabilitation, and to replace aging equipment,” the agency said.

For wastewater rates, the average single family customer would see monthly sewer charges increase by 89 cents in the first year and an additional 98 cents in the following year. Meanwhile, increases on the annual Wet Weather Facilities Charge for customers in the SD-1 service area are dependent on a customer’s lot size.

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Officials said the proposed rate hike follows a review of the agency’s budget, along with nine months of discussion, planning and outreach. The agency said revenues would go towards upgrading pipelines and treatment plants, preparing for drought, along with costs associated with adapting to climate change.

Clifford Chan, the agency’s general manager, will present the proposed $2.25 billion budget to the board of directors at Tuesday’s meeting at 11:15, which will be livestreamed.

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The board is scheduled to hold a public hearing and vote on the proposed rates on June 8.