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Council certifies Prop 218 protest and adopts wastewater rate increase to fund plant work
Summary
After a Prop 218 protest count found six objections — fewer than a majority — the Atascadero City Council certified the results and unanimously adopted a wastewater rate increase that raises the monthly single-family equivalent charge from $48.15 to $57.06 effective July 10, 2025.
Atascadero City Council on a unanimous vote certified the results of a Prop 218 protest process and adopted a proposed wastewater rate increase that raises the single-family equivalent monthly charge from $48.15 to $57.06, effective July 10, 2025.
The action followed a public hearing and a staff presentation by Public Works Director Nick Navarro that explained the proposed increase and the larger capital needs at the City’s wastewater treatment plant. Navarro said notices were mailed to owners of 5,611 parcels and described the Prop 218 majority-protest threshold (more than 50% of affected parcels). City Clerk staff reported six written protests were received, far short of the majority required, so no majority protest existed.
Navarro told council the increases respond to regulatory requirements, capital costs and rising operational expenses tied to needed secondary-treatment improvements. He said the city will undertake preliminary engineering, a user-classification study and a comprehensive wastewater rate study next year; staff also is pursuing regional partnerships and negotiations with the State Water Board about discharge limits. Navarro said negotiations with a large prospective customer, identified in the presentation as “Ash,” estimate that company’s flow and strength at about 913 equivalent dwelling units (EDUs).
Council discussed how capacity charges apply to new customers and changes in use and that any negotiated agreement with a large customer would be expected to include capacity charges to pay for system capacity. Council members also announced the formation of an ad hoc committee to review rates and public engagement that will meet multiple times beginning in July and continue into next year.
After the public comment period — during which one resident questioned the mailing and called the Prop 218 process "a notification" rather than a ballot — the City Clerk reported six protests. Mayor Pro Tem moved to certify the non-majority protest; the motion passed unanimously (Council member Funk, Council member Newsom, Council member Peake, Mayor Pro Tem Derez, Mayor Bobo — all recorded as yes). The council then voted unanimously to adopt the resolution approving the rate increase, also effective July 10, 2025.
City staff and council emphasized that even with this increase the wastewater fund balance will continue to be stressed given the scale of required plant upgrades; the rate action is one step in a multi-year program of engineering, partnership negotiations, and further rate work.
The council recorded formal motions to certify the Prop 218 protest results and to adopt the rate ordinance by resolution; both motions passed unanimously.
Looking ahead, Navarro said staff will begin broad public engagement in mid-to-late June, continue engineering design, perform the user-classification study, and incorporate findings into a comprehensive rate study expected to run from late 2026 into early 2027.
Votes at a glance: the council certified a non-majority protest (motion passed unanimously) and adopted the wastewater rate resolution (motion passed unanimously).
