Oakdale City Council approves $34K rate study to ensure water financial sustainability

The Oakdale City Council convened on April 8, 2025, to discuss critical updates regarding the city's water and wastewater rates. A significant focus of the meeting was the need for a comprehensive rate study, which has not been conducted since 2017. The council is considering a contract with Tuffield and Associates to perform this study, which aims to ensure financial sustainability and compliance with Proposition 218.

City Manager Albert emphasized the importance of this study, noting that it will assess revenue sufficiency, cost allocation, and customer impact. The proposed cost for the study is $34,200, which will be split evenly between water and sewer operations. The council discussed the timeline for the study, indicating that it would take approximately six months for the consultant to complete the calculations and present findings. Following this, a public hearing will be required, allowing residents to voice their opinions on any proposed rate changes.

The council acknowledged the challenges posed by inflation and rising infrastructure costs, which necessitate an update to the current rate structures. Members expressed concerns about the potential impact on residents, with some suggesting that delaying decisions could lead to larger increases in the future. The council ultimately agreed to revisit the matter in three months, allowing time for the consultant to gather and analyze data.

In conclusion, the council's decision to pursue a new rate study reflects a proactive approach to managing the city's water and wastewater services amid changing economic conditions. The outcome of this study will be crucial in determining future rate adjustments and ensuring that the city can continue to provide essential services without incurring debt.