Willows council starts Proposition 218 process for sewer rate increases to fund $7.8M in repairs

The Willows City Council voted on May 12 to initiate the Proposition 218 public‑notice and protest process to adopt revised sewer rates designed to pay for a proposed $7.8 million capital improvement program and ongoing operations.

Consultants from LT Municipal Consultants explained that without new rates the sewer fund would face a projected $3.8 million deficit over five years if the city attempted to fund the full CIP. The study proposes a rate design that preserves a monthly fixed customer charge for most residential customers while changing commercial charges: the proposal sets an 8‑HCF winter usage baseline for volumetric charging and applies volumetric fees only for usage above that threshold.

Consultants noted some large capital items are estimates and carry uncertainty, particularly an estimated $1.45 million cost to line wastewater treatment ponds (split across fiscal years 2028–29) pending regional water‑board direction and further engineering. Councilors asked whether pond‑liner costs could be grandfathered or reduced; staff said regulators typically require remediation when groundwater impacts are identified and that engineering cost estimates will be refined.

The draft financial plan includes the one‑time capital program and projects that the proposed rate increases will finance the CIP and maintain reserves; staff said notices must be mailed to ratepayers by late May to meet a proposed July 14 public hearing schedule.

After the presentation and Q&A, council directed staff to mail Proposition 218 notices and begin the protest hearing process; council approved the motion by voice vote.

Next steps: staff will mail notices to all ratepayers, accept written protests, hold the public hearing and return with final rates unless protests from a majority of ratepayers prevent adoption.