During the Calistoga City Council meeting on December 5, 2023, residents expressed concerns regarding the city's water and sewer rates, particularly in light of the significant infrastructure improvements needed. One resident, Mr. Kaiser, highlighted the financial burden of connecting to city water from a well, noting the high costs associated with the hookup and ongoing sewer rates. He emphasized the need for transparency about how rate increases are determined, especially for those on fixed or low incomes.

City officials responded to these concerns by discussing the current financial state of the city's water and sewer reserves, which stand at approximately $1 million for water and $1.2 million for sewer. This amount is considered low compared to the city's annual operating budget of around $7.5 million, which includes both operational and maintenance costs. The council acknowledged that the limited reserves could hinder the city’s ability to address urgent infrastructure needs and respond to emergencies.

The discussion also touched on the potential for a tiered rate structure that could provide more equitable pricing for residents and businesses. This approach would allow for variable rates based on usage, which could help alleviate the financial strain on lower-income households.

As the council continues to navigate these financial challenges, the emphasis remains on ensuring that residents understand the rationale behind rate increases and the necessity of funding critical infrastructure projects. The meeting underscored the importance of community engagement in shaping fair and sustainable utility rates that reflect the needs of all Calistoga residents.