Needles council accepts water and wastewater rate study, starts Prop 218 comment period

The City of Needles accepted a comprehensive water and wastewater cost‑of‑service ratemaking study and initiated the 45‑day Prop 218 public comment period before adopting rates for 2026–2030. City Manager Patrick Martinez said the study aligns rates with projected operating costs and capital needs and was developed in consultation with city staff and an ad hoc committee.

Consultants told the council the recommended schedule includes modest water revenue increases (about 3% annually) and larger wastewater adjustments (about 6% annually) over the five‑year period. The wastewater plan is designed to ramp up capital spending over five years to avoid sharper near‑term rate spikes; the water program funds a five‑year capital improvement program totaling roughly $1.4–$1.6 million per year. “With the 3% rate increases over the next five years … you would have adequate revenues to meet those revenue requirements,” the presenter summarized.

The council voted to accept the study and begin the Prop 218 notice and comment process, a required step that gives property owners an opportunity to protest rates before they are finally adopted. Utility Board Chair Terry Campbell said the city has pursued grants aggressively and that the capital program reflects multi‑year planning. When asked whether rates would roll back after capital projects are complete, staff said future rate calculations would reflect the city’s fiscal policies and be revisited in subsequent rate studies.

The action was approved by roll call with all members voting yes. Next steps: the city will publish the Prop 218 notices, accept written protests during the 45‑day period, and return for formal adoption following the public comment period and any required hearings.