The proposed tiered water rate increase was met with minimal public opposition Wednesday evening during the council’s meeting, as only five individuals protested the decision, and two spoke at the podium. Despite this, the council called it “a necessary evil” and unanimously approved the rate changes, citing critical financial needs for the city’s water system.
Consultant Dan Bergmann, who has been working with the city for the last 20 years, detailed the increases at an initial 15% this October, followed by another 15% increase and steady 4% increases for the next four years to follow inflation. Bergmann highlighted that single-family homes would benefit from the new rates as they will be affected the least, multi-family and commercial customers are expected to bear a more significant portion of the financial burden. Bergmann emphasized the need to allocate the rate increase in a way that equalizes the cost of service, particularly by shifting some of the financial responsibility away from single-family homes.
Bergmann explained that water sales have significantly declined since 2021, primarily due to ongoing drought conditions, resulting in decreased revenue for the city. The 2023-2024 fiscal year saw a continued drop in sales, making the rate increase necessary.
Under the new structure, seasonal rates will remain in place, fluctuating between summer and winter. A notable change is that all water passing through a meter will now be charged, eliminating the previous provision where the first 300 cubic feet were free. To mitigate the impact, the fixed charge has been lowered to offset the difference.
Bergmann provided examples to illustrate the financial impact on local businesses. For instance, a typical hair salon in Susanville could expect to see a $10 increase in their monthly water bill. In contrast, a local car wash might see their bill rise by nearly $100 monthly.
With council approval, the new rates will take effect on October 1st. These rates are set to be revisited in September 2025.
Councilmember Parrish speaking after public comments, emphasized the necessity of the increase, stating, “We’re going to be paying this one way or another” referring to state regulations and mandates forcing the hand of the city. Councilmember Brown attributed the stark increase to the lack of more frequent rate studies. CLIP 4
Councilmember Bortle echoed this sentiment, stressing the importance of developing long-term strategies to safeguard the city’s water system.
Bergmann warned that without the increase, the city could face a deficit of a quarter million dollars next year, and the proposed rate increase structure would prevent a sharp 30% increase to compensate for the shortfall.
The council’s decision is set to enable the sustainability of Susanville’s water resources.
