Crescent City warns of sewer and water structural deficits, proposes concurrent rate study

City staff told the Crescent City Council that both the sewer and water funds are not keeping pace with operating costs and capital needs and that the wastewater treatment plant faces near‑term upgrades to meet tightening NPDES/NPDS permit requirements. Finance Director Linda Lieber and public works staff outlined a multi‑year capital improvement program and recommended a rate study to identify a sustainable revenue path.

Staff said the sewer fund currently carries working capital but would face depletion over the coming years if current revenues and required capital outlays continue. Key capital items include an inflow and infiltration study (estimated near $350,000), influent valve upgrades, replacement of aging RBC treatment components and planning/design for MBR capacity additions. The MBR unit on site can meet water‑quality standards but is limited to about 1.2 million gallons per day; winter flows and hydraulic peaks can push plant operations into out‑of‑compliance conditions without additional investment.

To address this, staff recommended running water and sewer rate studies concurrently (consultant referenced) to present the community a single picture of how combined utility bills would change. The timeline staff proposed calls for modeling and public workshops through late summer and fall, Prop 218 notice and ordinance introduction in the fall and possible adoption by December to allow rate changes to take effect July 1, 2026. Staff emphasized pursuing SRF loans and grants but warned the city must prepare for some portion of CIP to be locally financed.

Council members asked for a public workshop and a clear presentation of options — timing, alternatives (e.g., redundant well vs Kings Valley pipeline) and affordability — and staff committed to returning with detailed scenarios.