Council sets Prop. 218 hearing process, reviews 5‑year water and sewer rate plan

Willdan Financial Services consultant Chris Fisher presented the final draft of a five‑year water and wastewater rate study during the May 8 Buellton City Council meeting, showing the utilities’ need for increased revenue to fund operations, reserves, and a multi‑year capital program.

Fisher told council the water utility would remain solvent under a proposed multi‑year rate path but that reserves would decline unless rates were adjusted. The sewer utility showed a larger shortfall under the status quo; without new revenues the sewer fund would run negative balances in the study period. The study lists about $12.9 million in proposed water capital projects over five years and a smaller but still significant sewer capital program. Under the study’s recommended rate path, typical combined monthly bills for an average household (1,200 cubic feet of use) would increase in year one and then smaller increases in subsequent years; Buellton would remain below the regional average in the consultant’s comparison sample.

Consultants and staff explained Proposition 218 procedures for utility rate changes: the city must mail notices to property owners and tenants, accept written protests, and hold a public hearing. If a majority of parcels submit written protests the proposed rates cannot be adopted. Staff recommended the council accept the study, approve the Prop. 218 notice for mailing, and set the public hearing for July 10, 2025.

On a motion, the council voted to accept the final rate study, authorize the Prop. 218 mailing to property owners and customers, and set the public hearing for July 10, 2025. The consultant will return for the public hearing and staff will mail notices at least 45 days before the hearing. If adopted after the hearing, the rates would take effect August 1, 2025.