The Riedel City Council voted 3-0 to accept a staff report acknowledging the city’s water and sewer rate-setting process and to reaffirm the cost-of-service methodology adopted in 2022. Finance Director Charles Sam presented the overview and fielded questions about rate structure and protections for customers.

Sam told the council the city followed Proposition 218 requirements in 2022, mailed notices to property owners and tenants, held public hearings and received protest ballots below the threshold needed to stop the rates. He said the city’s water rates include a fixed base charge plus a consumption charge; sewer rates include a fixed charge and a volume charge that varies by wastewater strength classification.

“Water rates have two components, a fixed base charge and a consumption charge based on actual water use,” Sam said. He explained that sewer volume charges use a winter average (December through February) to exclude summer irrigation from sewer volume calculations and that residential allowances and leak adjustments are in place to protect customers.

Sam also addressed grant activity: the city is in construction on an “over $12,000,000 water infrastructure project” and is undertaking a $1,600,000 sanitary sewer evaluation study. He said staff is actively pursuing outside funding to limit ratepayer impacts while maintaining operations, debt service, reserves and capital projects.

Public commenters and council members discussed perceived historical high water bills and how the city’s modest scheduled increases compare to larger increases in neighboring jurisdictions. One commenter noted recent large increases in Fortuna; the finance director responded that Fortuna’s percentage increases over several years were higher than Riedel’s scheduled increases.

After questions, the council moved to accept the staff’s report and reaffirm the methodology. The motion carried 3-0.

Council members asked staff to ensure rate study materials and customer guidance remain accessible and suggested additional outreach or clarifications during the next formal rate study.