Councilmembers give ratepayers three extra months to brace for increase
By Mike Chaldu
michael@santaynezvalleystar.com
In a marathon meeting on Thursday, July 10, the Buellton City Council approved a water- and sewer-rate increase, its first since 2016.
The increase came after a process that began in 2024, when the City Council approved the contract for the Water and Wastewater Rate Study with Willdan Financial. The water and wastewater rate study provides a comprehensive analysis that will ensure that the cost of service will not exceed either the cost of providing the service or the proportional cost of the service attributable to a particular parcel.
The prior formal rate studies were completed in 2016 and 1996, with a small increase in 2016. The city’s operational costs for both water and wastewater have not been sustained through the existing rate structure and have required transfers from those fund reserves. As part of the study, staff worked closely with Willdan Financial and had several meetings with the Rate Committee, consisting of Mayor David Silva, Councilmember Hudson Hornick, and staff, to ensure that the direction of the study and the growth projections and financial assumptions were sound. The Final Water and Wastewater Rate Study (Exhibit A) includes a detailed analysis, including cost of service allocation, of how the rates were calculated.
The City Council passed over Willdan’s recommended rate increase schedule, which called for steep increases starting on Aug. 1, in favor of a schedule that, while costing more in the long run, delayed the first increase until Nov. 1. In the meantime, council directed staff to find way to get supplemental income to help increase the reserve water and sewer funds.
Vice Mayor Elysia Lewis was the first to suggest the Alternative 2 schedule, calling it more “compassionate” and instituting a more gradual increase over five years for the ratepayers.
“I like the idea of stretching it out, the idea of incremental increases, even with more to pay in the long run, it gives us a runway. It doesn’t come as a shock to the system,” Lewis said.
Hornick agreed with that assessment, and pointed out it comes after years of no rate increase.
“It puts everyone on notice,” he said about the Nov. 1 date. “We’re letting them know, we had a great run, but now it’stime to pay the piper.”
The item passed on a 3-1 vote, with Councilmember John Sanchez opposing.
“I want to use the recommended schedule and get these rates in,” Sanchez said before the vote. “We’ve been talking about how we are in this mess because councils didn’t install any increases in the past, and now we’re going to delay it three more months.”
With the approval, starting on Nov. 1, rate payers can expect an increase from the current $101.72 per month to $135.63. After that, the rates will go up each year through 2030, when the rate will increase to $214.35. City Manager Scott Wolfe reminded council that the rates will be reviewed and can be lowered on a year-by-year basis.
City Manager Scott Wolfe and City Attorney Greg Murphy held off on discussion of the item because, as part of the Proposition 218 process of review, city ratepayers had an opportunities to submit written protests of the increase thatwould have delayed the agenda. However, only 97 protests were submitted, well short of the 1,084 required, which represented 50% + 1 of the Buellton ratepayers.
The item brought in several speakers during Public Comment, all of whom were unhappy with the increase, thoughsome admitted it was needed.
“I understand it needs to happen, but it’s a hard pill to swallow,” said Troy Morehouse. “Ninety-three percent in 35 days, and next year 171 percent [quoting the orginal rate schedule that wasn’t adopted]? That’s ridiculous.”
Morehouse also took to task the failure of past City Council to implement more reasonable increases in the past decade, saying the current council was “asking us to pay for the sins of our fathers.”
Daniel Durbiano also opposed the original rate hike, though he understood the tough spot the councilmembers were in.
“I’ve spent 22 years in public works, so I have intimate knowledge of this,” he said. “This is one of the most contentious things a City Council has to deal with. I’m for an increase but not like this. Don’t ask us to take this balloon payment.Do it a little more compassionate.”
Fortunately, councilmembers did take the suggestions for a more gradual increase, and staff is expected to provide suggestions for supplemental revenue to replenish the water fund at a later meeting, probably in September.
The City Council meets next on Thursday, July 24, at 6 p.m.
