Water & Sewer Rate Study

To keep pace with inflation and rising costs of providing safe, reliable water and sewer services, the City of Atwater is conducting a financial study of its water and wastewater (sewer) services. Ideally, financial planning and rate reviews should be performed every 3-5 years. The City’s last rate study was completed in 2018. Over the past five to six years, inflation has risen nearly 17% affecting the costs of providing these services.  

Financial consultants and City staff have been working on a series of steps involving financial data evaluation to assess customer rates while considering customer impacts of any rate modifications. The goal of the study is to ensure that the rates customers pay for water and sewer services are: 

  • Fair, equitable, and aligned with community values and priorities 
  • Sufficient to ensure the continued financial viability of City utilities 
  • Sufficient to enable critical maintenance and infrastructure investment to continue high levels of service while complying with ever more stringent regulatory requirements 
  • Aligned with best practices and in accordance with state law 

The public is encouraged to learn more about their water and sewer services. Follow this page and join us at community and public meetings listed below to learn how rates are determined, California Proposition 218 requirements, and how the rates you pay are an investment in our critical infrastructure.  

Stay Connected
As the City conducts financial planning for its water and wastewater utilities, we invite the community to learn more and provide input. Submit comments and questions via email to publicworks@atwater.org or call the Public Works Department at (209) 357-6370. 

Learn how utilities are funded, utility rate studies, legal rate setting in California, and the rate approval process.

Calendar of Meetings/Open Houses 

2024    
Meeting Date Time Location 
City Council  Presentation Mon., April 22 6 p.m. City Council Chambers, City Hall, 750 Bellevue Road, Atwater, CA 95301 
Community Open House Thurs., May 30 6 p.m. City Council Chambers, City Hall, 750 Bellevue Road, Atwater, CA 95301 
Community Open House Sat., June 15 10 a.m. Atwater Community Center, Evelyn Chambers Room, 760 E Bellevue Road, Atwater, CA 95301 
Public Hearing Mon., June 24 6 p.m. City Council Chambers, City Hall, 750 Bellevue Road, Atwater, CA 95301 

Frequently Asked Questions:

A utility rate study is a financial review that projects future revenues and expenses, usually for the next 5-10 years. The ultimate purpose of a utility rate study is to determine whether operating revenues are sufficient to meet expenses, the cost of operations and maintenance, upcoming or needed replacements, and debt service, and to help you make capital improvements during the implementation plan period. Ideally, rate studies should be performed every 3-5 years and coincide with that year’s public works budgeting process. 

Performed regularly, utility rate studies provide transparency into what the City can expect in the years ahead and ensure we have the financial resources to meet our budget, maintain our infrastructure, manage system capacity for growth, implement new technologies, address existing and new state and federal regulations, and implement our capital improvement plan (CIP).  

Regular rate studies are critical to a utility’s healthy operation. Utility systems must keep up with rising costs and be able to implement critical capital projects that are mandated or necessary for the health and safety of their customers. 

The City’s objective is to have 90 days of cash reserves in both the water and wastewater Enterprise Funds because adequate reserves are necessary for Atwater to meet debt covenants for grants/loans and reserves are necessary to address emergency failures of the water or wastewater system due to unforeseen conditions. Rate revenues must cover these reserves. Reserves are not used to fund other City expenditures and may only be utilized for the appropriate water or wastewater Enterprise Fund.  

Atwater’s Financial Plan will include projected expenses and forecasted cost increases over the next five-to-10-year period including anticipated inflation and rising costs for operations and maintenance, capital, materials, labor, and meeting new, stringent regulatory requirements.   

No, by law the water and wastewater enterprise funds can only be used on water and wastewater projects, respectively.  

The City hired Raftelis Inc., a consulting firm with expertise in water and wastewater rate studies in California and across the country. A utility rate study is a financial plan that provides transparency into what the utility can expect in future years to ensure the utility has the resources needed to meet day-to-day operating costs, maintain critical infrastructure, modernize the system, explore new technologies, cover debt service requirements, fund reserves, and implement the capital improvement plan (CIP). The completed study is documented in a report to serve as part of the City’s administrative record to justify proposed rate adjustments.  

In California, all parcels connected to a utility system must be given notice of any proposed rate changes with the ability to protest the proposed rates. The notice details the proposed rates, the basis for calculating the proposed rates, the reason for the proposed rate increase, the details of the public hearing, and the ratepayers’ or property owners’ right to protest. Protests may be submitted by either the property owner or the customer of record, but only one protest per parcel will be counted.  After a protest period of no less than 45 days, the City Council can conduct a Public Hearing. Absent a majority protest to the rate proposal, the City Council may choose to adopt the rates as noticed.    

The community is encouraged to stay informed about the rate study through the City’s website at www.atwater.org/water-sewer-rate-study/. The website will be updated for future stakeholder and City Council meeting dates. Additionally, residents are encouraged to submit questions or comments to publicworks@atwater.org or call the Public Works Department at (209) 357-6370.  

Proposition 218 provides a process for property owners to protest a proposed rate increase before the rates can be adopted. Written notice will be provided to all customers of record at least 45 days before the public hearing (the City will also broadly notify the public). The public is invited to provide public comment at the hearing. A written protest must contain a statement of opposition to the water and/or wastewater rate increase, the property assessor’s parcel number or property address, and the name and original signature of the property owner or utility customer of record registering the protest. Per California Government Code section 53755(b), only one protest will be counted for each parcel or address.  This means that a parcel that has multiple dwelling units but only one customer of record will be limited to one protest. Since protests must include an original signature, electronic protests via email, social media, etc., will not qualify as a written protest. At the public hearing, written protests will be considered and tallied. If a majority of the service accounts protest the charge, the City Council shall not adopt the increase(s). 

Yes, less water used means less water sold and lower revenues for the Enterprise Fund. 

Utility costs typically do not decrease, especially in a high inflationary environment. Therefore, water rates are not likely to decrease unless the utility brings on significantly more customers who generate more revenue while staying within supply, treatment, and resource limits.