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Willows staff propose phased sewer rate increases to fund $7.8 million in repairs; hearing targeted for July 14
Summary
LT Municipal Consultants presented a Proposition 218 sewer rate study recommending a 5‑year rate plan keyed to a $7.8 million capital program: a 10% revenue increase the first three years (two additional 10% years were discussed) and two 5% years thereafter, with staff proposing a public hearing on July 14 and notices mailed 45 days prior.
City staff and consultants presented a draft Proposition 218 sewer rate study April 28 that would raise rate revenue to cover roughly $7.8 million in crucial infrastructure projects over five years and preserve fund reserves.
Joe Bentancourt, Community Development Services director, introduced Sophia Mills of LT Municipal Consultants, who said current sewer rates generate about $2.9 million a year and the fund held roughly $1.6 million in cash reserves. Mills described a draft financial plan that spreads $7.8 million in capital improvements across five years and proposed a rate‑design change that increases multifamily charges to about 75% of single‑family levels while simplifying commercial volumetric charges into low/medium/high strength classes.
Mills told the council the draft financial scenario begins with a 10% revenue increase in the first year, followed by two more 10% years and then two 5% years, phased to cover capital projects while keeping reserves at a sustainable level. She said the city bills sewer rates on the tax roll and must meet an August 10 tax‑roll deadline if it wants new rates on the roll this year; to meet that calendar the consultants proposed a public hearing at the July 14 council meeting and mailing notices at least 45 days beforehand.
Council members pressed staff for clearer tables showing gross annual revenues, the relationship between the current $900,000 per‑year net operating surplus and planned capital spending, and a more explicit breakdown of the five‑year capital improvement program. Mills said detailed tables are in the packet (table 7) and that consultants will revise the presentation for May 12 to show year‑by‑year revenue and expense lines and a clearer mapping of projects to years.
Examples and numbers cited at the meeting: current annual sewer revenue approximately $2.9 million; estimated capital needs over five years about $7,800,000 (pipeline work, pond liners, treatment plant projects); current reserve about $1.6 million; proposed first year single‑family bill increase modestly from about $74 to $75 under the draft design (billing shown monthly in examples for clarity though rates are placed on the tax roll annually). Staff did not ask the council for action April 28 but will return with a revised packet and recommended public‑notice plan ahead of the July hearing.
