Residents press Tahoe City PUD on affordability and reserves during Prop 218 hearing

Residents used the public comment period to press the district on affordability and the district’s reserve policy. Several speakers compared local rates to neighboring utilities and questioned why households and businesses face higher bills despite Lake Tahoe proximity.

Matthew Plunkett presented specific reserve and budget figures, telling the board that as of Sept. 30 total cash and investments were about $37.1 million and proposing that $27 million of general‑fund cash/reserves be used to reduce borrowing for five‑year capital needs. “The PUD is a very strong balance sheet,” he said, arguing that reallocating reserves could avoid large borrowings.

Staff and board members responded that many funds are constrained by enterprise‑fund rules and Proposition 218 constraints. Staff noted that water and sewer enterprise funds generally must fund their own capital and operations and that some capital costs are tied to system reconstruction of formerly private systems; the board emphasized that property‑tax and general‑fund transfers affect other services and that any redeployment would have tradeoffs.

Other public commenters described how unmetered rates (e.g., in Tahoma) and combined fire connections produce bills that feel inequitable, and small businesses said commercial rates significantly affect operating costs. Staff confirmed a water rate assistance program exists and that staff plan to discuss expanding eligibility next year.