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Nevada City launches Prop 218 process to consider multi‑year water and sewer rate increases
Summary
Council voted to initiate proceedings under Prop. 218 to consider water and wastewater rate increases (maximum scenarios presented), approve outreach and protest procedures, and to study low‑income assistance and billing options.
The Nevada City Council unanimously voted July 23 to initiate Proposition 218 proceedings to consider multi‑year increases in water and wastewater service charges. City staff and consultants from the Rural Community Assistance Corporation (RCAC) presented a set of maximum rate scenarios and recommended outreach and notice steps leading to a public hearing in October.
City staff said the recommended water scenario would allow up to a 25% across‑the‑board increase for water in the first year (noting the first two years under that scenario could leave the enterprise fund short of full cost recovery), and a phased approach for wastewater rates; staff emphasized the figures shown are the legal maxima the council may adopt later and that council could lower scheduled increases later without restarting Prop 218. "These rates are the maximum amount that can be charged," staff said; "you can always go down, but you can't go up."
Staff noted the water system includes roughly 1,350 active meter connections, 21 miles of distribution pipeline and assets with sections more than a century old. The presentation said 51% of water connections currently pay only the flat charge (no usage charges) and that RCAC assumed no system growth in modeling. For an average usage household staff projected a first‑year water charge increase from about $36 to roughly $46 per month (bimonthly bill from $72 to $93), as an illustrative example of the maximum scenario.
Council asked about affordability protections. Staff described several options to study and return to council, including monthly billing, expanded payment plans, enhanced leak forgiveness, and creating a limited term hardship assistance fund (no dedicated funding exists yet). The council voted to adopt the resolution initiating the rate increase proceedings, adopt procedures for protests, and direct staff to bring back analysis on low‑income assistance options and implementation details.
Next steps: staff will mail required Prop 218 notices (mailed notice for 02/18 process targeted for Aug. 10), hold two public outreach meetings in August and September, accept written objections and hold the required public hearing in October. Council emphasized that adopting the initiation resolution is not the final rate decision but starts the legal process that includes public protest rights.
