The first proposed Manteca water rate hikes in 15 years will not include a price break for keeping actual water use low.
A court decision has determined such pricing is illegal under Proposition 218 — a ballot measure passed by the voters in the 1990s to regulate how government could impose fees for services.
As such, the fees can’t be higher than it costs a local judication to provide them.
That means charging someone higher when they use larger volumes of water is now illegal.
The three-tiered water use pricing the city now has in place was actually required by the state when the current rates were adopted in order to encourage water conservation.
City Council members Tuesday expressed disappointment about the court decision as they started the Proposition 218 process for rate hikes for municipal water and sewer service.
Currently, the lowest flat water rate for households based on those with a 3/4 inch connection is $17.15. That rate would go to $21.24 on May 15, 2025, $27.60 on July 1, 2026, $32.57 on July 1, 2027, and $34.53 on July 1 ,2028.
Actual water use is charged per hundred cubic feet.
The current rate structure charges $1.03 per HCF up to 20 HCF. The charge is $1.35 per HCF for 21 to 300 HCF. After that, the per HCF charge goes to $2.72
The new rates only have one charge per HCF.
It would start at $2.47 per HCF on May 15. 2025. It would then go to $3.22 on July 1, 2026, $3.80 on July 1, 2027, and $4.03 on July 1, 2028.
The current combined basic rates of sewer and water service is $60.45.
That rates were put in place in 2009.
The rates for sewer and water will be at $107.03 when fully implemented in 2028 while solid waste will be at $63.07 compared to the current $50.92.
If the new sewer and water rates are implemented on May 15, 2025 as proposed, the three combined municipal services that includes solid waste will cost a minimum of $134.49 compared to $111.47 some six months from now. That reflects a $23.02 a month hike in utility billing starting in May.
By the time the basic sewer and rate proposal is fully implemented in 2028, those two services will have experienced a 77 percent jump.
But because rates were never increased, reserves were dipped into and capital needs involving existing water system infrastructure wasn’t being addressed.
There are also pressing needs that still need to be addressed.
The bottom financial line of the water master plan and wastewater master plan updates the City Council accepted 11 months ago: Manteca needs to spend in excess of $633 million on water and wastewater system improvements through 2045.
The process ahead
The council’s action on Tuesday triggered the Proposition 218 process.
It requires mailing notices to all of Manteca’s 24,000 plus utility customers.
Two community meetings are planned to explain the justification for the rate hikes. They will take place Jan. 29 and Feb. 26 at 2 p.m. at the Manteca Transit Center, 220 Moffat Blvd.
Based on direction from the council, at least one of those meetings will take place in the evening to allow commuters to attend.
There is a March 3 deadline to submit protests.
The first hearing on the rate hike is March 18 and the second is April 15.
If 50 percent plus one of the 24,000 plus utility customers don’t indicate they are against the rate hikes in writing, the council can proceed.
The fees would be put in place May 15.
Given the high threshold, it is fairly unlikely enough written protests would be submitted to stop the rate hikes.
To contact Dennis Wyatt, email dwyatt@mantecabulletin.com
