The Kingsburg City Council voted to accept a final water rate study and to authorize staff to mail the Proposition 218 notice that sets maximum allowable rates and schedules a public hearing for May 21, 2025, at 6 p.m. The council also directed staff to remove optional drought-rate provisions from the Prop 218 notice before mailing.

The study, presented by consulting analyst Allison Lihovich and Public Works Director Daniel Galvez, recommends multi-year rate increases to cover rising operating and capital costs for the water utility. Consultants told council the utility has generated about $2.5 million in revenue while operating expenses and debt service total roughly $2.7 million, and the five‑year capital improvement plan totals about $3.9 million. The recommended plan would build reserve balances over time and avoid new debt financing.

Consultants said the city’s current monthly base fee is $32.25 and that the study proposes restructuring the base fee by meter size and phasing out the current 11,000‑gallon base allotment in favor of a volume rate billed per 1,000 gallons. The presentation included an example of a typical single‑family account using about 16,000 gallons: a current bill of about $36.25 would rise to roughly $52.25 in the first year under the study’s schedule (the mailed Prop 218 notice lists legal maximums, not required charges).

Council members asked about unmetered accounts (mostly multifamily customers), meter‑size audits and how meter redesignations will be reflected on utility bills. Galvez said city staff audited commercial meters and found many meters recorded as 2‑inch were actually 1‑inch; the audit changes slightly shifted projected meter‑fee revenues and requires billing‑system work to display meter size on future bills.

The study also proposed optional drought rates — higher volume charges triggered during declared water‑shortage emergencies — but council members objected to giving council discretion to implement the drought rates in the future. The council voted to remove the drought‑rate language from the Prop 218 mailing. The mailed notice therefore will describe the five‑year maximum schedule and the public‑hearing process but will not include the optional drought‑rate attachments.

Under Proposition 218 rules explained in the presentation, the city must mail the notice to property owners, wait a mandatory 45 days, and hold a public hearing where ratepayers may submit written protests. If a majority protest is not received, the council may adopt rates up to the maximums shown in the notice. If approved by council at adoption, the proposed new rates would be scheduled to take effect July 1 to align with the fiscal year.

Council action: the council approved the rate study, authorized staff to mail the Prop 218 notice (with drought provisions removed), and set the public hearing for May 21, 2025, at 6 p.m.