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District launches Proposition 218 process as HDR recommends multi-year water and sewer rate increases
Summary
The Thomas City Public Utility District voted to initiate a Proposition 218 notification and set a Nov. 15 public hearing after an HDR consultant presented a five‑year, cost-of-service rate study that increases water and sewer capital funding targets and would raise typical residential bills.
Thomas City Public Utility District on Friday voted unanimously to begin the Proposition 218 notification process and set a public hearing for Nov. 15 after hearing a presentation from HDR rate consultant Sean Korn.
Korn told the board the comprehensive 2024 water and sewer rate study was designed to meet Proposition 218's cost‑of‑service and proportionality requirements and to restore reserves and capital funding. He said the district needs to raise the rate‑funded capital target for sewer to $2,500,000 annually by 2029 and increase water rate‑funded capital to $3,800,000, driving the proposed five‑year maximum rate adjustment. "If there is no majority protest at that public hearing, then the board may implement the proposed rates," Korn said, describing the statutory protest process and the customer‑notification timeline.
The presentation included sample bill impacts: HDR showed the current average residential sewer bill at about $56.60 per month rising to roughly $61.98 in initial years; the average residential water bill (6,000 gallons) was shown rising from about $115.87 under current rates to a multi‑year schedule reflecting an 11.3% typical first‑year consumption impact. Korn said the firm based its recommendations on long‑term financial targets, debt service coverage, and methodology from the American Water Works Association. Board members asked about recent court cases challenging tiered rates; Korn said the study adjusted upper‑tier allocations to reflect recent appellate activity and the approach is consistent with known rulings.
After questions from directors and staff confirmations that customer notices are being printed, the board moved to start the Prop 218 process and mail the notices in time to meet the 45‑day requirement. Staff also announced public workshops the week of Oct. 29–30 to explain the proposed maximum rates to customers. With no majority protest at the scheduled hearing, the board will have authority to adopt the five‑year maximum rates for incorporation into the annual budget.
