Water Infrastructure


Thank you for visiting the City of Millbrae's Water Utility Infrastructure webpage. Over the past year, we have looked at the state of our water supply and delivery system, and with significant input from the community, we are moving forward to modernize our aging system.

The City of Millbrae provides water service to residents and businesses located within and adjacent to the City. The City relies on imported water purchased from the San Francisco Public Utility Commission (SFPUC) for 100% of the community's water supply. Financially, the water utility is operated as an independent enterprise that relies primarily on revenues from water rates to fund the costs of providing service. As such, rates must be set at levels adequate to fund the costs of operating and maintaining the water system, pay for wholesale water supplied by the SFPUC, and fund necessary capital improvements to keep the City's aging water system in safe and reliable operating condition.

In 2016, the City retained Bartle Wells Associates (BWA) to conduct a water rate study. Key goals of the study include recommending new water rates designed to a) recover the cost of providing service, b) be fair and equitable to all customers, c) comply with the legal requirements of Proposition 218.

The City's water utility is currently facing a number of financial challenges that will require significant rate increases in upcoming years. Download and continue reading the entire Water Financial Plan and Rate Study (PDF).

The City last adjusted its water rates in October 2017 due to substantial increases in the SFPUC's wholesale water rates, large declines in water sales due to conservation, and the resulting need to virtually eliminate the City's ongoing capital improvement program due to the lack of available funding. Before the rate increase, the City was operating in deficit mode as revenues had fallen substantially below the cost of providing service.