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Council continues discussion on combining wastewater and drainage funds amid Prop 218 and legal uncertainty
Summary
Staff presented a proposal to merge wastewater and drainage enterprise funds; speakers cited Prop 218 rules, SB231, conflicting court rulings, and accounting constraints. The council asked for additional legal clarification and continued the item for future consideration.
Council considered whether to combine the wastewater and drainage enterprise funds after the finance committee and the city auditor recommended exploring the option.
Todd (first name only in the transcript) explained the proposed consolidation could make accounting and fund management simpler but said there are several legal and procedural constraints. He and others noted Prop 218 processes and an anomaly that requires drainage measures to pass affirmative written support rather than the negative-protest method used for water or sewer rates. The transcript references SB231 and conflicting lower-court rulings on related questions.
Council members questioned whether combining the funds would change how rate studies and protest votes are run and whether it would allow transfers between sewer and drainage revenue. Staff said they would seek clearer legal advice (including input from the city attorney) and bring the item back at a later date; the council voted to continue the item with the goal of returning with clarifications and options.
No rate changes or fund transfers were authorized at the meeting.
