The Mesa Water District is scheduled to hold a public hearing and vote Thursday on a proposed rate increase.
District officials said the bulk of the five-year, phased-in increase will address costs associated with the repair and replacement of pipes, wells and other infrastructure. The money will also be applied toward the debt service on the Mesa Water Reliability Facility and the reserve fund.
The meeting begins at 6 p.m. at the district's headquarters, 1965 Placentia Ave., Costa Mesa.
If approved, the first increase would take effect on or after July 1, with subsequent rate changes each Jan. 1.
The average Mesa Water customer would see a $2.09 increase per month after the first increase, according to district projections.
The district last raised rates in 2010 for a period that ends in June.
Officials said within the next five years, about $35 million worth of capital improvements are planned.
The $20-million Mesa Water Reliability Facility, which had its grand opening in March, provides the district with a completely local water supply.
Officials said the reserve funding is used in emergencies and helps the district maintain its AAA credit rating and low interest rate on the loan for the facility's construction.
Mesa Water's service area comprises all of Costa Mesa, John Wayne Airport and portions of Newport Beach.