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Clearlake hears detailed briefing on water-rate law, capacity fees and consolidation options
Summary
A rate consultant explained Proposition 218 requirements, capacity‑charge methods and reserve targets as Clearlake weighs consolidation of several small purveyors; council and public pressed for local cost comparisons, grant assumptions and next steps for notice and a possible rate study.
Mark Hildebrand, a financial‑management consultant, told the Clearlake City Council on Sept. 5 that any change to water rates must satisfy Proposition 218’s substantive and procedural requirements and be demonstrably proportional to the cost of providing service. Hildebrand outlined the three legal and technical steps in a rate study: projecting revenue requirements, doing a cost‑of‑service allocation and designing customer bills.
Why it matters: Council members are weighing whether to pursue regionalization or consolidation of several small local water purveyors. That choice affects who pays for aging pipes, how new development is charged and how grant money or rate revenue is counted in long‑term plans.
Hildebrand…
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