Majority Narrowly Denies TUD’s Rate Increases As Proposed
Update June 28, 2023: the TUD Board passed the rate hike plan as detailed here.
Original Post Jun 14, 2023: Sonora, CA — After hearing overwhelming opposition from ratepayers, the Tuolumne Utilities District board scrapped the planned steep rate increase that was proposed to customers.
However, all five board members agreed that some form of increase is needed, imminently.
We reported earlier that the proposal on the table called for water rates to go up by 28% in year one, and then smaller increases of 2.6% in 2024, 2.4% in 2026, 1.2% in 2027, and 1.5% in 2028. The year-one increase would have cost customers an average of $18 more per month.
The original plan also called for sewer rates to go up by 17% in year one, 14% in year two, and then smaller increases in the years after. The average year-one increase would have been $9.
Over 20 people spoke in opposition at today’s meeting, but more notably, 874 people signed written protests against the water increase and 455 against the sewer increase.
In the end, board members Ron Ringen and Glen Jacobs were in favor of moving forward with the proposed plan, and members David Boatright, Barbara Balen, and Jeff Kerns were opposed. The three in opposition wanted a smaller impact on ratepayers, especially in year one. Kerns and Balen both indicated that their phones have been blowing up over recent weeks with calls from ratepayers.
A legal complication is that a state-required 218 notice that was issued to ratepayers laid out the proposed specifics. If any changes are made, the rate increase can be reduced, but not increased. So, when it comes to water, in year one the maximum increase could be 28%, and in year two the most it can go up is 2.5%. Making changes outside of those parameters would restart the lengthy 218 process.
The board discussed various options, with most centering around reducing the year-one increase, and then reassessing it in the following years.
TUD’s Finance Director Steve Sheffield urged the board to allow him to go back and crunch the numbers, as opposed to passing a random new reduced percentage today. Staff noted that any reductions would negatively impact capital improvement projects, and liability risks.
In the end, the board decided to continue the rate discussions at a meeting to be held on Wednesday, June 28, at 9am. Other different options and scenarios will be discussed at that time.
