Water rates may increase by 42 percent in some areas of Douglas County at Lake Tahoe.
Skyland, a subdivision near Zephyr Cove, would be hit hardest. Cave Rock and Uppaway areas would see a 31 percent spike under plans being reviewed by Douglas County leaders.
While public workshops will take place before any decisions are made, general improvement district managers last week urged the county to seek grants to help pay for the costs of improvements.
The county is looking to make a decision on the rate hikes this summer.
Average monthly bills for Cave Rock could jump from $77 a month to $101 under the plan, while nearby Uppaway water rates would jump from $86 to $101. For Skyland homeowners, water rates could jump from $51 to $92 a month.
An option would be to combine the water systems, where Cave Rock, Uppaway and Skyland would pay a flat rate of $92 a month.
"The results of this study shows what I think is astronomical," said Vic Bailey, a Skyland General Improvement District board member. "The focus needs to be done, but it's the cost that concerns me. If we put a pencil to the sharpener, then we can bring the costs down."
In the past, federal and state grants have accounted for 60 percent of the upgrades to the water systems, with Douglas County footing the rest of the bill, said county Engineer Carl Ruschmeyer.
But there is no certainty that the grant money which exists today will be available down the road. So, alternate plans are needed by the county to get the nearly 500 homes in the three subdivisions on water meters by 2009.
"If there is a worse case, there is no grant money," said county Manager Dan Holler. "If we can get additional dollars, we will do that. (Grants) have been available in previous years."
John McCall, trustee of the Lakeridge General Improvement District, which is part of the Cave Rock water system, urged more public discussion.
"There hasn't been enough participation and involvement of the customers that would be affected," McCall told commissioners.
McCall said the problems inherited by the county are long term that should be addressed, adding the need for all funding option to be explored.
"Our push today was to slow down and make sure everyone knows what's going on and come to an agreement on the numbers," McCall said. "Then the county can look at whether or not to make the rate changes."
McCall presented commissioners with a list of what 10 water systems in the Tahoe basin charge their customers. The most expensive is $45 and the least expensive is $18 a month, McCall said.
Skyland improvement district Trustee Joe Rufo told commissioners the federal government and TRPA have grants available to help water districts, especially if there are concerns about erosion.