Willow board backs sale of equipment to Ukiah and forwards modified rate plan after consultant warns of steep increases

The Willow County Water District board on Oct. 23 approved a straight purchase by the City of Ukiah of the district27s vehicles and equipment and agreed to forward a modified financial plan — including near-term rate increases — to the Ukiah Valley Water Authority executive committee for consideration.

The action followed a presentation by Mark Hildebrand, the consultant leading the district27s financial plan and rate study, who said Willow will need substantial rate increases over the next several years to sustain planned capital work unless the district receives a one-time cash infusion from asset sales. "The basic premise is that you can't charge more than the cost of providing service," Hildebrand said while explaining state rate-setting constraints and the study's ten-year cash-flow projections.

Why it matters: Willow27s operations and financial management have moved under the City of Ukiah. The shift removed operating revenue Willow previously earned from serving other districts and left the district facing higher net costs and a need to rebuild or maintain reserves while funding capital replacements. The board heard two term-sheet approaches for the district office building (a five-year lease-purchase with a $1 bargain purchase option or an outright sale) and a proposed purchase of the district's fleet and equipment; staff estimated the equipment basket at roughly $215,000 and the building valuation near…