Customers in the Meiners Oaks County Water District could face a rate increase but would pay less if they conserve, under a new proposal to help cover a growing budget deficit.

District officials will present the proposal and answer questions at a public meeting at 6:30 p.m. today at Meiners Oaks School, 400 S. Lomita Ave.

The district wants to replace a tiered water rate system with a single per-unit rate for its 1,200 customers, officials said. Households, agricultural customers and businesses would pay a monthly rate of about $28, up from a current $22, for roughly 19 units of water, but would pay less if they consumed less, officials said. There are about 7,500 gallons in 10 units of water.

The existing system charges residents, farmers and business in different ways, and some customers have voiced concerns of it being inequitable.

"We have always wanted a fair rate across the board," General Manager Mike Hollebrands said.

Years of neglect and few upgrades to a system first built in the 1930s and '40s are coming due, as deteriorating pipes and valves are failing, Hollebrands said.

Earlier this year, the district lost the services of a water storage tank valued at $500,000, because of leaks and sinking ground underneath the tank.

Current rates don't cover operating costs. The district has run a deficit of roughly $200,000 the past few years and has had to dip into reserves, which are now dangerously low, Hollebrands said. Its budget next fiscal year is expected to be $800,000 to $1 million, he said.

The district has implemented only one rate increase over the past 18 years.

"We are in a tough place," said Bill Reynolds, who joined the five-member board of the public special district in 2006. "We want to avoid incurring debt to do these needed repairs."

Even with the rate increase, which could affect citrus farmers the most, the district would still have some of the lowest rates in the region, Reynolds said.

After tonight's session, the board plans to hold a special 6:30 p.m. meeting Monday at the same location to formally approve the rate proposal.

The district gets its water from four wells along the Ventura River and depends heavily on rainfall. Its backup source is Lake Casitas. The district has stressed water conservation.

Although the area collected about 30 inches of rain this winter, "one good rain doesn't pull us out of drought," Hollebrands said. "We've got to remain vigilant."