Sonoma Water proposes up to 8.97% wholesale increase; Petaluma staff previews local IWMP and recycled‑water expansions

Sonoma Water told the Petaluma City Council on March 16 that it plans a draft transmission‑system budget of about $78.41 million for the coming year and is proposing wholesale rate increases that range roughly from 8.21% to 8.97% for the contractors that buy water from the Sonoma system. "You can see Petaluma's in the middle column up there at 8.97," Jake Spalding, Sonoma Water's financial services division manager, said during a presentation to the council.

The presentation, introduced by Sonoma Water Deputy Director Dan Herrera, outlined capital work and operating costs driving the increase, including multiyear aqueduct replacements and a mid‑May bond sale the agency expects to price at roughly $33 million to fund current and near‑term capital programs. "We are also going out to bond this year. We are issuing a bond in mid May of this year for about $33,000,000," Spalding said.

Why it matters: Petaluma relies on Sonoma Water for most of its drinking supply, so wholesale rate changes flow through as pass‑throughs to municipal water customers and affect the city's own rate forecasts. In public and council exchanges, city and Sonoma Water…