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Cotati to endorse Sonoma Water’s FY2627 transmission budget after hearing 8.97% wholesale rate proposal
Summary
Sonoma Water presented a FY2627 transmission budget that would raise wholesale rates by up to 8.97% to cover operations, capital and new biological‑opinion requirements; Cotati’s mayor was directed to endorse the proposed budget at the upcoming Water Advisory Committee meeting.
Sonoma Water officials presented the proposed FY2627 water transmission budget to the Cotati City Council on March 10, telling the council the agency faces rising costs for aging infrastructure, environmental requirements, labor, energy and supply‑chain delays.
Jake Spalding, Sonoma Water’s financial services division manager, outlined a composite proposed rate increase across the system of between 8.21% and 8.97% for the three main aqueducts and a total proposed budget of about $78.4 million. Spalding said operations and maintenance total roughly $48.8 million and the capital program includes approximately $3.5 million in hazard‑mitigation projects this fiscal year; Sonoma Water expects to use $14.6 million in grants, fund balance and bond proceeds and plans a bond issue of about $33 million to fund projects over the next three years.
City staff noted Cotati’s 10‑year financial model assumed a somewhat larger wholesale increase (12%) and emphasized that local groundwater production (wells) remains a critical lever: Cotati has historically targeted a roughly 40% contribution from local wells and falls back on Sonoma Water supply when well output drops, which raises local rates. Spalding told the council 12‑month actual deliveries used to calculate rates were about 41,776 acre‑feet (1.5% below last year’s budgeted number), which is a key driver of per‑acre‑foot rate calculations.
After questions about staff‑time accounting for shared personnel, well‑repair timelines, and capital plans, the council voted to direct Mayor Lemus to support the proposed Sonoma Water FY2627 transmission budget during the Water Advisory Committee (WAC) meeting.
What’s next: The council’s endorsement will be recorded with the WAC vote and Sonoma Water’s board will consider the final budget at its April meeting; Cotati staff will monitor project bids, well repairs, and potential FEMA funding outcomes that could affect future rates.
