Finance Director Charles Sam presented an overview of Rheonale’s water and sewer rate structure, the cost-of-service methodology adopted in 2022 and current capital projects, and the council voted 3-0 to accept the staff report.

Sam described two components of water and sewer billing: a fixed base charge and a consumption or volume charge. He said sewer charges use winter water usage (December through February average) to avoid billing for summer irrigation and described four strength-rating categories for sewer customers so higher-strength dischargers pay more for treatment. “This cost of service approach follows state water resource control board guidelines,” Sam said.

Sam also told the council the city is “currently in the construction phase of an over $12,000,000 water infrastructure project” and that the wastewater system is undergoing “a $1,600,000 sanitary sewer evaluation study.” He said rates fund operations, debt service, reserves and capital projects and noted the city uses a Prop 218 process for rate notices and protests in the 2022 study.

During public comment, residents raised questions about winter averaging windows and how new customers are averaged for sewer billing. After discussion the council made a motion to accept the staff report and reaffirm the cost-of-service methodology; the motion carried 3-0.

Staff did not propose new rate changes at the meeting; the report reaffirmed the city's existing methodology and described ongoing capital projects and protections built into the rate structure.