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City Council selects higher-impact water-rate plan and opens Proposition 218 review
Summary
The City Council chose financial planning scenario 1 for the municipal water system, starting the Proposition 218 mail-ballot and public-hearing process; the city reported a $2.3 million FY2025 shortfall that was covered by reserves.
The City Council selected financial planning scenario 1 for the city's water system, and the choice begins the formal Proposition 218 public-review process before any rate changes take effect. "After discussion, council selected financial planning scenario number 1," Lee Emmons, the water operations superintendent with Public Works, said.
Emmons said the selected scenario "represents a higher impact to ratepayers to address critical operational needs and required improvements to our water system." He emphasized that "this decision does not immediately change water rates," and that the selection instead triggers the legal review steps that precede any adoption.
City officials described the rationale for revisiting rates: Emmons said water rates were not updated regularly over the past two decades while operating costs rose, citing "aging infrastructure, increasing material and chemical costs, and new regulatory requirements" that have strained the water fund. He said that in fiscal year 2025 operating costs exceeded the revenue collected and "about $2,300,000 had to be covered by reserves." Emmons added that relying on reserves long term is not sustainable.
The next step is the Proposition 218 process: property owners and customers will receive a mail ballot with the proposed rates under scenario 1 and details about how the Proposition 218 process works. "A public hearing will be held before any rates are adopted, giving residents the opportunity to review the proposal and provide input," Emmons said. The city has pledged to provide clear information and opportunities for public participation during that review.
What happens next: officials will distribute ballot materials to property owners and schedule the public hearing required under Proposition 218. No rates will be adopted until the conclusion of that process and any required vote or hearing outcome. The City Council's selection of scenario 1 establishes a policy direction but does not by itself change customer bills.
