For the third straight year, the Tahoe City Public Utility District board has voted to raise water and sewer rates.
The 4 percent rate increase was proposed to meet the north Lake Tahoe district's rising personnel costs.
"A rate increase is always difficult ... But it's out of our control," said Cindy Gustafson, district assistant general manager.
Personnel costs will account for about 65 percent of the budget - the highest ever in the district's 65-year history, officials said.
They attributed the amount to rising employee medical, pension and workers compensation insurance costs.
The public has until Dec. 27 to appeal the rate proposal. If there are no protests, it will take effect Jan. 1.
Since 1985, the district has raised water rates 12 times and sewer rates 11 times. The largest rate increase was in 2000, when both were raised by 10 percent.