Press Release: Utility Rate Adjustments: What Caldwell Residents Shoul
Published on January 07, 2026
The City of Caldwell continues to receive questions regarding sanitation rates, and Mayor Phillips would like to share additional information about the recent rate increase.
The City implemented adjustments to water, sewer, and sanitation rates in November 2025 to ensure the continued reliability, safety, and long-term sustainability of essential utility services. The average residential customer has likely seen an increase of approximately $20 per month on their utility bill since the beginning of October. These rate adjustments are necessary to maintain and improve critical infrastructure while ensuring the City can continue to provide reliable water, sewer, and sanitation services to residents.
As part of the City’s annual budget process, the proposed rate changes were publicly noticed and discussed during two public hearings held in August and September. These hearings provided opportunities for community members to learn more about the proposed adjustments and offer public input, underscoring the City’s commitment to transparency.
How City Utilities Are Funded
The City of Caldwell’s water and sewer utilities are funded entirely through user rates and connection fees, not property taxes. All costs associated with operations, maintenance, regulatory compliance, and infrastructure improvements must be covered by revenue generated from these fees.
Why Rates Increased Despite Growth
Although Caldwell continues to grow and add new utility users, rates have increased due to rising operational costs that have affected nearly every sector over the past several years. These include increased costs for skilled labor, equipment and materials, operations and maintenance, power, technology upgrades, and contractor and consultant services. Additionally, City utilities are required to meet increasingly stringent federal and state regulations for drinking water quality and wastewater treatment, often with limited financial assistance from those agencies.
How Rate Increases Are Determined
Utility rate adjustments are guided by comprehensive, in-depth rate studies conducted on the City’s behalf. These studies analyze current and future operational needs to determine the appropriate revenue required to maintain service levels and plan for future infrastructure demands. Recent studies recommended the current adjustments. As these studies are updated periodically, future rate estimates become more predictable and reliable.
Looking Ahead
Utility rates may change in the future, but increases of this magnitude are unlikely to occur on an annual basis. As long-term planning and financial forecasting improve, the percentage of rate and fee increases is expected to decrease over time. Final rate determinations each year are influenced by a combination of internal and external economic factors.
The City of Caldwell remains committed to responsible financial management, transparency, and delivering high-quality utility services that protect public health and support the community’s growth. For more information, residents are encouraged to visit the City of Caldwell website Utility Billing | City of Caldwell, Idaho