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Santa Rosa board backs Sonoma Water’s 8.68% Santa Rosa Aqueduct rate increase; DeWitt votes no
Summary
After a presentation by Sonoma Water, the Board of Public Utilities recommended the City Council direct its WAC representative to support Sonoma Water’s fiscal year 2025–26 water transmission budget and an 8.68% rate increase for the Santa Rosa Aqueduct; the motion passed with one ‘no’ vote and one absence.
The Board of Public Utilities voted to recommend City Council instruct its Water Advisory Committee (WAC) representative to vote in favor of Sonoma Water’s proposed fiscal year 2025–26 water transmission system budget and rates, including an 8.68% rate increase for the Santa Rosa Aqueduct.
Nick Harvey, deputy director of administration for Santa Rosa Water, summarized the local impact: Santa Rosa’s projected wholesale water purchase for FY 2025–26 is about $21.63 million, an increase of roughly $1.94 million above the current year. Harvey said Santa Rosa’s rate structure includes provision for a water purchase budget up to $21.7 million and that staff does not anticipate needing to draw on additional undesignated fund balance to cover next year’s purchases.
Jake Spalding and Lynn Roselli from Sonoma Water presented the proposed transmission budget, saying the agency faces rising costs tied to aging infrastructure, higher O&M needs and capital projects for resilience. Sonoma Water’s total proposed budget is about $82 million, including about $18.3 million in capital this year, roughly $21 million in grants, bond proceeds and fund balance offsets and plans for approximately $33 million in additional bonding to fund the next three years of the capital program.
Sonoma Water told the board the budget was reduced from earlier drafts — cutting nonroutine maintenance and capital items — and that the Technical Advisory Committee unanimously recommended the proposal to the WAC. The WAC will vote April 7; the Sonoma Water Board will consider adoption April 22. Santa Rosa plans a public hearing on its local rates April 1, and if council adopts the proposal, the wholesale pass‑through would be reintroduced in FY 2026–27.
During discussion, Board member DeWitt voiced concern about the conservation paradox — that reduced deliveries can increase unit costs — and asked whether Sonoma Water had reserves or rate stabilizers; Sonoma Water staff and Santa Rosa staff said they use fund balance and an optional capital charge as stabilizers but said the restructured agreement for water supply limits mid‑year rate adjustments. The board moved to recommend support; the motion passed with Board Member DeWitt voting no and Board Member Bartholomew absent.
