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Newman council adopts water-rate increase and new low‑income utility subsidy
Summary
City staff said higher operating, maintenance and capital costs require water rate increases under a Proposition 218 process; council adopted the water-rate ordinance effective Jan. 9, 2025, and approved a 20% low‑income utility subsidy for qualifying households, estimated to cost about $3,400 annually to the general fund.
City officials told the Newman City Council on Dec. 10 that increases in operating costs, maintenance and capital replacement require an ordinance to raise water rates, and that the action follows California's Proposition 218 process for utility rate changes.
Staff presented a water rate study completed in September that, they said, justifies the proposed rates to keep the City of Newman Water Fund solvent. "The rate increase is driven solely by the increase in our operating costs, maintenance and capital replacement," staff said. Staff also reported that the number of protest votes received through the Prop 218 process was insufficient to prevent the increase.
On a related item, staff recommended rescinding the previous sewer‑only subsidy and adopting a new low‑income utility subsidy that would apply to water, sewer and garbage. The plan would provide a 20% decrease for households that demonstrate low income, either through tax returns or enrollment in listed assistance programs aligned with PG&E’s CARE eligibility rules. Staff estimated a fiscal impact of "a little over a $3,400" to be covered by the general fund.
Council moved on the two items separately: the ordinance amending Newman City Code section 11.05.040 to set water rates, fees and related service charges effective Jan. 9, 2025 was approved on second reading by unanimous vote (motion carries 5‑0). The resolution rescinding prior subsidy language and implementing the new low‑income utility subsidy was also adopted by unanimous vote (motion carries 5‑0).
Questions from the public included whether the subsidy would cover people on fixed Social Security incomes; staff responded eligibility is income‑based, not age‑ or disability‑based. Staff said details and application forms would be posted on the city website after approval.
