Water rate increases are needed for operations, wholesale water rate increases, and aging infrastructure. San Bruno’s water rates have been effective since July 1, 2020 and have remained unchanged for over three years. The City’s costs of providing service has increased over this time and are projected to continue gradually rising due to inflation and other factors. The SFPUC increased its wholesale water rates by 27% over the past two years and projects additional wholesale rate increases in future years. In addition, the City’s water system includes many facilities that are reaching the end of their useful lives and are in need of replacement. Many of the City’s water pipelines are 70 to 100 years old and subject to leaks and breaks. The City has made significant progress on its long-term infrastructure replacement program but still has substantial capital funding needs. Water system capital improvements planned for the next five years include replacement of three older water tanks as well as replacement of aging water pipelines and various other improvements to wells, pressure regulating stations, and pump stations.