Lodi City Council approves 3 percent water rate increase

Rate increases will allow phase 7 of water meter program to continue

After much discussion, the Lodi City Council voted 3-1 for a 3 percent increase in water rates following a public hearing on the matter during their meeting Wednesday.

Councilwoman JoAnne Mounce was absent from the vote after leaving the meeting due to a disagreement with Mayor Doug Kuehne.

According to Public Works Director Charlie Swimley, the 3 percent increase will be followed by annual 3 percent increases through the 2019-2020 fiscal year. The increases will sunset at the end of the water metering program, and water rates will roll back to Jan. 1, 2017 levels on Jan. 1, 2021.

The increase will allow for the planned construction of Phase 7 of the water metering program in the 2016-2017 fiscal year. With the increase, the utility will have to dip into the reserves by $783,000 in the 2017-2018 fiscal year and by $1.4 million in the 2018-2019 fiscal year. The increase will also provide a minimum of $600,000 in the 20182019 fiscal year to account for unforeseen conditions that may be experienced by the utility.

The increase will boost the flat rate monthly charge for a three bedroom home from $45.89 to $47.27 — or $1.38 per month. Metered residents using an average of 1,800 cubic feet of water per month will see an increase from $40.63 to $41.89 — or $1.26 — per month.

In December of 2016, city staff initially recommended the 3 percent increase along with annual three percent increases without a sunset in order to fund the water metering program and make up for the decline revenue due to conservation. After the recommendation failed to pass, the council requested that staff come up with other alternatives.

Staff proposed four additional alternatives.

Each the alternatives, with the exception of the one council chose, would either have cost up to $150,000 more in the long run, Swimley said, or place financial stress on the water utility.

Several residents spoke against raising the rates during the public hearing Wednesday night.

Spencer Dayton pointed out that a large majority of the city is low income, and soon those people won’t be able to live there anymore due the cost of living continuing to rise.

“A rate increase of three percent may not seem like a lot, but for those of us who are working for the lowest of the low — the low income or fixed (income) — it actually affects us a lot,” he said. “I’m probably going to be moving out of Lodi if prices keep going up, because I can no longer afford it.” Teresa Johnson agreed. “We have a lot people in Lodi that can’t afford what you’re asking,” she said.

Liz Bowman was concerned that there was too much confusion and that council members didn’t fully understand the options and suggested postponing the rate increase so it could be studied further.