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Council notes HB 501 would raise utility costs; Fillmore declines participation
Summary
City staff estimated House Bill 501 would cost Fillmore about $2.5 million annually — roughly a $194 monthly increase per household — and the council decided the city will not participate, leaving future infrastructure funding to the city budget.
City staff presented an estimate of the local fiscal impact of House Bill 501 and the council decided not to participate.
According to the minutes, staff described the bill as not mandating participation but outlining a fee of 1.5% for water systems and 1.5% for wastewater systems (3% combined) calculated from the area median income multiplied by the number of water connections. The meeting record states, "This would cost Fillmore just under $2.5 million per year. This would equate to a $194 increase to every citizen’s monthly utility bill. Fillmore City will not participate in the program." The minutes note the downside is that future infrastructure projects would need to be funded entirely by the city if it declines to participate.
Why it matters: the projected cost would represent a substantial local fiscal obligation and materially increase household utility bills if implemented. The council’s decision to opt out leaves the city responsible for future infrastructure funding decisions absent state program participation.
