City council to discuss water/wastewater rates, rate study

Amid a decreasing city water fund, the Healdsburg City Council will be reviewing city water and wastewater rates at its next meeting on Monday, March 21.

The meeting starts at 6 p.m. and will be held in person at Healdsburg City Hall, 401 Grove Street, and via Zoom. Masks are required for those who attend the meeting in person.

Presentations

The meeting will kick off with the reading of several proclamations: A proclamation recognizing March 31 as Cesar Chavez Day, a proclamation recognizing March 20-26 as National Surveyors Week and a proclamation recognizing March 2022 as Red Cross Month.

Healdsburg City Manager Jeff Kay will provide an update on COVID-19 and on water supply levels.

Looking at water and wastewater rates

The city’s utility director will present to the council a review of forecasted water and wastewater costs and of the work involved in creating a formal rate study for the city.

In early 2021, Hildebrand Consulting presented an introduction to a rate setting that would continue rate increases starting with the July 2021 utility bill. However, due to the ongoing pandemic and associated economic impacts on community members, the city delayed the implementation of new water rates.

According to the agenda report, staff has continue to work with the consulting group to review the city’s forecasted costs and revenues for both the water and the wastewater funds, which have been suffering losses as residents use less and less water due to the ongoing drought.

The benefit of conducting a rate study is that it will ensure that the rates being charged by the city are legally defensible. In the rate study, consideration will also be given to current economic conditions and the financial impact of the drought.

The study will also discuss rates needed to generate sufficient rate revenue for the operation, capital improvement needs and maintenance of the city’s water utility.

The final rate study will include multi-year financial plans, an update to the existing water/wastewater rate structure and an update to the cost of service analysis.

Monday’s discussion on water rates will be for information only. The council will not be taking action on rate changes.