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Cotati council adopts multi‑year water and sewer rate increases after public hearing
Summary
After a public hearing and six written protests, the Cotati City Council unanimously approved new water and sewer rates designed to fund capital investments and rising operating costs, notably higher water purchase and insurance expenses.
The Cotati City Council voted unanimously May 27 to adopt updated water and sewer rates intended to fund planned capital projects and rising operating costs.
Council members said the increases were driven mainly by larger-than-expected capital needs and outside cost pressures. Public Works Director Craig Scott and consultant Mark Hildebrand told the council the city’s water and sewer utilities face higher water‑purchase costs, rising insurance and utility expenses, and capital projects — including a planned Cypress storage tank — whose cost increased with inflation.
The rate study presented to the council showed proposed water increases of 11%, 11%, 11%, 8% and 8% over five years (replacing previously adopted smaller increases). For sewer the proposed increases are 10%, 10%, 10%, 10% and 5% over the same period. Hildebrand said the changes are intended to allow the utilities to pay for capital improvements and stabilize reserves over a 10‑year planning horizon.
Mark Hildebrand, the consultant who prepared the study, said the principal drivers were higher capital spending and persistent increases in costs the city purchases from other agencies. “A third of the cost [for water] is purchasing water from Sonoma County Water District,” he said while walking the council through the financial model. He added that insurance and utility costs have risen substantially.
City staff said the city has little realistic capacity to cash‑finance the larger projects and is planning to debt‑finance a portion of the forecasted capital spending in order to smooth rate impacts over time.
The council opened a required Proposition 218 public hearing; the city reported six written protests delivered to the clerk’s office (one by mail, three dropped at City Hall and two by email). That number did not reach the threshold that would block the rate adoption. After public comment, the council adopted the resolution approving the new rates.
Mayor Ben Ford closed the hearing before the roll call and the council approved the rate resolution on a unanimous vote.
The newly adopted rates are scheduled to take effect June 15. Staff said outreach materials and the adopted rate schedule will be posted to the city website to help customers understand the increases and the reasons behind them.
