Modesto water bills could rise about 20% over five years. How do nearby cities compare?
The city of Modesto has kicked off the process of raising water rates by 4.5% annually over five years.
An average home’s monthly bill would go from $67.13 now to $83.66 in 2028 if the proposal goes through, a staff report said. Businesses would have roughly similar hikes.
Under state law, the proposal would die if a majority of customers file protests at or before an Aug. 22 hearing before the City Council.
It voted 6-1 on Tuesday, June 27, to send the required notices to the 74,000 or so accounts, with Councilman Chris Ricci dissenting.
The vote was unanimous on a separate item that increased the low-income discount by $10 a month and created paperless billing incentives for everyone. They took effect Saturday, July 1, and will remain regardless of how the overall rate proposal fares.
The water comes from numerous wells and a Tuolumne River treatment plant operated by the Modesto Irrigation District. The system serves Modesto, Salida, Empire, Grayson, Del Rio and a tiny spot in Turlock. The outlying areas were added via the 1995 purchase of the Del Este Water Co.
The extra rate revenue would help with rising operating costs and upgrades to the system, Utilities Director Will Wong told the council.
The needs include fixing water main leaks, maintaining storage tanks, replacing undersized lines and treating wells that exceed health standards. The city also plans groundwater recharge projects under a California law that seeks to end over-pumping statewide by about 2040.
“We want to protect the public health and deliver safe, reliable, clean, sustainable drinking water for both existing and future customers,” Wong said.
He added that the income would help maintain a healthy reserve in the city water fund, which keeps interest rates low on bond issues for projects. It stands at about $121 million.
The increases would take effect on Oct. 1 of this year and July 1 of the other years.
Dissenter cites other cost increases
Ricci said higher water bills would burden residents already struggling with other costs. He cited a $4.76 monthly boost in trash bills, approved earlier in the meeting, and the new 1% sales tax for general city services.
“I just think raising rates right now is kind of tone-deaf when it comes to the challenges of our community,” Ricci said. He suggested delaying the water vote until 2024.
The current low-income discount is $35 a month and applies to the total bill for water, sewer, storm drain and trash services. The council raised it to $45. Customers can apply if they are enrolled in at least one state or federal assistance program, such as CalWorks or Medi-Cal.
Modesto has 3,529 homes on discounts as the fiscal year ends, said Jeni Martin, the city’s revenue collections and compliance manager.
Online payments are much cheaper to process than those sent by mail. Tuesday’s vote means enrollees can get a one-time credit of $10 by switching to email alerts, which link them to the online billing portal. They can earn another $10 by setting up automatic payments though debit or credit cards or bank accounts.
The incentive is not available to customers already in these programs, including 16,188 in auto-pay and 13,934 getting email alerts, Martin said.
What do nearby locals pay for water?
City staff examined nearby locales and found this range of monthly charges for average homes:
Tracy: $54.90
Sacramento: $57.60
Patterson: $66.44
Hughson: $71.35
Turlock: $72.45
Stockton: $72.65
Lathrop: $80.87
Ceres: $90.03
Sonora area: $101.90
Rate increases are subject to protest under Proposition 218 of 1996. Modesto plans to mail its notices by Thursday, July 6. Opponents can either mail back the protest form or attend the Aug. 22 hearing at Tenth Street Place. People who support the hikes do not have to do anything.
What do you want to know about life in Modesto? Ask our service journalism team your top-of-mind questions in the module below or email servicejournalists@modbee.com.
