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Tahoe City PUD adopts HDR water and sewer rate studies and five‑year maximum rates after Prop 218 hearing
Summary
After a Proposition 218 hearing on Nov. 15, the Tahoe City Public Utility District adopted HDR’s 2024 comprehensive water and sewer rate studies, two ordinances setting five‑year maximum rate schedules and related 2025 rate resolutions; protests fell far short of the majority threshold.
The Tahoe City Public Utility District board adopted HDR’s 2024 comprehensive water and sewer rate studies and approved ordinances establishing five‑year maximum allowable rates following a Proposition 218 public hearing on Nov. 15, 2024. The board also adopted resolutions setting the 2025 rate ceilings and moved forward with budget items tied to those studies.
Consultant Sean Korn of HDR presented the studies to the board and the public, outlining the three‑step approach of revenue requirement, cost‑of‑service and rate design. Korn said the studies support annual rate‑funded capital targets of $2,500,000 for sewer and $3,800,000 for water, and described the proposed fixed charges and tiered consumption rates under the five‑year schedule. “These are the maximum rates,” Korn said, adding the board could implement lower rates during annual budgeting.
The public hearing produced written protests; the district clerk reported 43 protests for sewer and 43 for water. The district attorney explained that Proposition 218 requires a majority plus one of affected customers to prevent a rate increase; the thresholds would have required more than roughly 3,700 sewer protests and about 2,880 water protests. The attorney said the protests received did not meet the threshold, allowing the board to act.
The board then adopted Resolution 24‑33 (sewer rate study) and Resolution 24‑34 (water rate study) and passed Ordinances No. 312 and No. 313 to establish five‑year maximum schedules. Roll‑call votes on the resolutions and ordinances were unanimous.
The board also adopted Resolution 24‑35 and Resolution 24‑36 implementing the approved Proposition 218 rates for 2025 and approved related budget resolutions for the district’s enterprise and governmental funds.
The board’s actions set a five‑year path for the district’s water and sewer charges; staff and consultants said actual billed rates for 2025 would be set during the upcoming budget process and could be lower than the maximums adopted today.
