Ukiah officials review five-year water-rate plan under new Ukiah Valley Water Authority

A consultant for the Ukiah Valley Water Authority laid out a five-year financial plan Tuesday that would raise the City of Ukiah’s water rates in a phased schedule to shore up reserves and fund an ongoing capital program.

Mark Hildebrand of Hildebrand Consulting told the Ukiah City Council that the city’s portion of the JPA financial plan assumes 3% rate increases in the first two years followed by 4% increases in years three through five, with a projected need for roughly 4% increases thereafter absent a new study. He said the city should aim to hold operating reserves near the adopted target and budget for average annual capital spending of about $1.9 million to $2.0 million.

The presentation explained that the Ukiah Valley Water Authority is a joint-powers authority consisting of the City of Ukiah, Calpella, Millview, Redwood Valley and Willow. Under the JPA the city will continue to provide operations and administrative services…