Significant increase in water prices expected in October
The City of Pleasanton voted Friday to approve the budget and tax rate for fiscal year 2024-25, following an Aug. 8 vote to postpone five items related to the budget and tax rates.
With the adoption of the budget, the discussion of water and sewer rates gained importance as the council had to comment on the significant increase expected in October after the city council passed an ordinance on August 10, 2023, amending the previous rates to include the increases in 2023 and 2024.
The 2023 ordinance called for a significant increase in water rates from $3.10 to $4.15 for 0-10,000 gallons of water use, but the new rate, set to go into effect in October 2024, increases to $5.20.
Sewerage fees will also increase from $4.56 per 0-10,000 gallons to $5.41 per 0-10,000 gallons.
“Since 2020, water and sewer base rates have increased every year,” 6th District Councilman Brandon Hicks told the council after questions arose about when the last increase was implemented. “Sewer and water base rates for the zero to 10,000 gallon category will increase by 125% effective October 15, 2024.”
City Manager Johnny Huizar told the council that the base fees will cover debts incurred for utility improvements.
“We’ve made a whole series of improvements on the waterside since 2020,” Huizar added. “In 2023, the improvements that are already being incorporated into the increase you’ll soon see will come to fruition.”
In 2023, the ordinance was approved by the City Council, however, the city did not initially hold a public hearing as city residents began to complain about drastic increases in water rates. The price was reduced to the original rate and a public hearing was held in January to officially implement the increase.
“I understand the need for infrastructure improvements, city growth and investments to maintain services,” Hicks said. “The City of Pleasanton’s rate plan is very simple compared to other cities. I think there’s a way the city can come together and work out a better rate plan that benefits people who are conserving water. So if you use less water on your bill, I think there should be a little discount. The people in the city who maybe water their yard six days a week – those are the people who should be paying more. Not just a simple rate plan where you go from zero to 10,000, which hits lower income people the hardest.”
Last year, the city hired Communities Unlimited to analyze and investigate a water and sewer rate increase and prepare a report on the investigation.
The company conducted a tariff analysis and examined financial and customer billing documents from 2021-2022, as well as the 2023 budget and 2022 financial audit.
According to Communities Unlimited, the report concluded that an increase in water and sewer rates was necessary to cover expected operating costs, debt service and reserve requirements.
“Raul Gonzalez, who did our national water price study, is also looking for a way to lower those prices because I know there was a cost of living factor,” Huizar said. “But we did do that water price study and we looked at the debt that we’re approving right now.”
The city continues to improve the wastewater treatment plant and is building a water storage tank in the industrial park for future development. The city has also been awarded a contract for a new water well on Goodwin Street.
Budget and tax rate
The City Council unanimously approved the budget and tax increase for fiscal year 2024-25. The proposed tax rate is $0.5156450 per $100 of valuation, and the tax increase without new revenue will be increased by an additional $0.029359, making the new proposed tax rate $0.5156450 per $100 of valuation.