SUSANVILLE SANITARY DISTRICT
NOTICE OF PUBLIC HEARING
ON PROPOSED SEWER CHARGE RATE INCREASE
TO PROPERTY OWNER / CUSTOMER:
NOTICE IS HEREBY GIVEN that on Tuesday, June 10, 2025, at 1:00 p.m., or as soon thereafter as the matter may be heard, the Susanville Sanitary District (“District”) Board of Directors will hold a public hearing in the District’s Board Room, located at 45 S. Roop Street, Susanville, CA 96130, to consider proposed increases to the District’s sewer charge rates. If approved by the District Board, the proposed sewer charge rate increases will be effective on or after July 1, 2025.
WHY ARE RATE CHANGES BEING CONSIDERED?
The District has not adjusted its sewer charge rates since July 1, 2016. Over the past nine years, the cost of operating and maintaining the District’s sewer system has increased due to factors such as inflation, rising labor costs, and the need for ongoing system maintenance. These increased costs have led to a structural deficit, with current revenues insufficient to cover necessary expenses. Without a sewer rate adjustment, the District will not have adequate revenues to cover operations and maintenance of the sewer system and conduct necessary capital improvements and repairs.
SEWER RATE STUDY AND OPERATIONS FUNDING PLAN
To address the financial challenges and ensure the long-term sustainability of the sewer system, the District commissioned a Sewer Rate Study and Five-Year Operations Funding Plan. This study evaluated the District’s operational costs and revenue requirements; however, future capital projects and associated reserves are excluded. Key findings and recommendations from the study include:
- Structural Deficit. The District’s FY 2024-25 budget reflects a cumulative increase of approximately $420,000 in salaries and benefits, materials, supplies, services, and unfunded liabilities compared to the prior fiscal year.
- Insufficient Revenues. Current revenues are insufficient to cover operation, maintenance, and future capital costs. Operating reserves are projected to be nearly depleted by the end of FY 2025-26 if no rate adjustments are made.
- Reserve Goals: To minimize financial risks, the District should continue adhering to its Board-adopted reserve policies. These include maintaining a working capital reserve target of 25% by FY 2029-30 and an Unfunded Pension Liability Reserve of $400,000.
- Rate Adjustment: The study recommends increasing the sewer charge fee by 31.6% beginning in July 2025, followed by annual increases of 3% through FY 2029-30.
Additionally, the District is developing a Sewer Master Plan, expected to be completed in Spring 2026, which will assess system conditions, identify necessary upgrades, and outline long-term infrastructure priorities. Upon its completion, the District will establish a new capital sewer charge to provide a dedicated funding source for capital projects and any associated debt service, ensuring that system upgrades can be made while minimizing financial impacts on ratepayers.
