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Needles adopts five-year water and wastewater rate plan, effective Feb. 1, 2026
Summary
After a public hearing, the Board of Public Utilities and City Council adopted a five-year plan that raises water rates 3% annually and wastewater rates 6% annually to fund infrastructure needs and restore reserves; written protests totaled 15 and did not constitute a majority under Prop 218.
The Board of Public Utilities and the Needles City Council on Nov. 12 approved a five-year rate plan that raises water service by 3% annually and wastewater service by 6% annually, with new rates to take effect Feb. 1, 2026.
Utility Manager Randy Torrance presented the rate study, saying the adjustments are intended to fund $6.9 million in water projects and roughly $1.44 million in wastewater projects over five years, stabilize reserves and address aging infrastructure. “If we do not make any adjustments … there will be zero reserves by fiscal year 2028,” Torrance told the board and council.
During the public hearing several residents objected to annual increases and asked for alternatives such as spreading capital costs over longer amortization periods or placing rate changes on the ballot; one speaker called the increases “a tax.” Torrance and staff responded with details about the rate design: a meter-based fixed service charge plus a volumetric charge billed in 100 cubic feet and sample bill impacts for a typical single-family account. The city clerk reported 15 written protests under Prop 218, which did not constitute a majority.
The PUA moved to waive reading and adopt PUA Resolution 11-12-25 establishing the water service rates and rescinding prior water-rate resolutions. The board and council then adopted the companion wastewater resolutions (PUA Resolution 11-12-25-1 and City Resolution 2025-48) to implement the wastewater increases effective Feb. 1, 2026.
Staff noted that electric rates had recently been reduced — a change that, when combined with the water and wastewater adjustments, still produces a net utility savings for some customers. The council’s action followed roll-call votes recorded in the meeting minutes; the clerk confirmed the procedural steps required under Prop 218.
Next steps: staff will implement the new rates beginning Feb. 1, 2026, and will return with monitoring reports as the capital program and reserve balances evolve.
