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Ukiah Valley rate study proposes phased increases; Millview board seeks more detail before action
Summary
A consultant recommended phased rate increases to fund higher capital spending and reserves across Ukiah Valley water agencies. Millview directors asked for more detailed explanations of the city—s pooled-cash allocation and deferred taking a vote, requesting further briefings before Proposition 218 procedures start.
Mark Hildebrand, principal of Hildebrand Consulting, presented a Ukiah Valley Water Authority rate study to the Millview County Water District Board on Oct. 21, recommending a revenue plan that would raise customer rates about 11% annually for five years under the primary scenario to fund operating costs and ramp up capital spending.
Hildebrand said the study is a revenue-requirement plan rather than a full cost-of-service redesign and noted the board must follow Proposition 21820procedures in California for any rate increase, including a public notice and hearing process. He recommended an operating reserve of about $391,000 (roughly three months of expenses) and a capital reserve target of about $2.4 million to protect the utility from revenue…
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