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Yutan council approves first reading of phased utility-rate increase to cover SRF debt
Summary
On first reading the council approved Ordinance 819, a phased utility-rate increase to fund debt service for recent water and sewer projects; the ordinance includes a paper-bill fee and a 20% senior discount for heads of household 65 and older; staff will return with implementation details.
The Yutan City Council on Jan. 20 approved the first reading of Ordinance 819, which would phase in utility-rate increases to cover debt service for state revolving fund loans tied to recent water and sewer projects.
City Administrator Oliva explained the proposal calls for phased increases applied in periods (staff described a $5.73 increase per phase) with the first increase to take effect on passage and subsequent phases 12 and 24 months after the first increase, though council members discussed whether a shorter timeline would be preferable. Oliva said consumption charges per thousand gallons are not being adjusted at this time. The draft also adds a fee for mailed paper bills while electronic billing would remain free. Oliva said staff included a proposed senior-citizen relief program giving a 20% discount to households where the head of household is 65 or older; council discussed whether that discount should have a sunset or grandfathering provision.
During the public hearing, resident Kevin Bradford asked whether a military or disabled-veteran discount could be added; Administrator Oliva replied he would look into that possibility. Councilmember Schimenti moved to approve the first reading of Ordinance 819; Mach seconded. The roll call vote (Smith, Lawton, Schimenti, Mach) was unanimous and the motion carried.
Why it matters: The ordinance would raise utility revenue to cover bond or loan debt service tied to recent infrastructure work; it changes billing options and adds targeted senior relief. The council’s approval on first reading advances the process but does not finalize new rates until further action at a future meeting.
Next steps: Staff will return with implementation details, timing and any requested modifications (for example, veteran discounts or adjustments to phase timing).
