Bakersfield poised to send notices of proposed water rate hike following disastrous sewer fee proposal

Bakersfield residents still reeling from a notice that their sewer fees were proposed to go up by more than 300% will likely get another notice in the mail next week of a proposal to boost their water rates by nearly 51%.

While it appears the sewer rate increase proposal may be pulled back after outraged residents lit up social media, council members’ emails and city phone lines, the water rate increase proposal process is, for now, still underway.

On March 26, the City Council approved conducting two separate Proposition 218 elections; one for the proposed sewer rate hike and another for a proposed water rate increase of 50.8% over the next five years.

Proposition 218 requires a “protest” vote for any public agency to increase fees. To stop the fee increase, more than 50% of eligible voters must provide written letters (not emails) in opposition.

The sewer rate proposal, which would have boosted the fee from $239 to $950 a year, was up first. Notices for that rate hike went to residents on April 11.

The backlash was immediate and vociferous.

Though the deadline for protest letters wasn’t until May 28, city staff recommended at the council’s April 23 meeting that the council rescind the sewer fee Proposition 218 election. Because that issue wasn’t on the agenda, it will have to be taken up by the council at a subsequent meeting.

City Manager Christian Clegg was quoted by The Bakersfield Californian as saying staff would rethink how to fund the $650 million in needed repairs/expansion to the city’s wastewater system while doing a better job working with the community.

There was no mention of the proposed water rate increase at the April 23 meeting.

Notices for that fee hike are expected to be sent Friday, April 25, to give residents time to protest the fee ahead of a June 11 hearing by the council.

It’s unclear if city staff will recommend rescinding the water rate Proposition 218 election as well.

There was consideration by staff of postponing mailing the water rate notices in light of what happened with the sewer fee. However, City Attorney Ginny Gennaro told SJV Water the notices would go out per the Proposition 218 schedule approved by the council at its March 26 meeting.

In any event, if the water rate process continues and is approved, residents who get their water from the city would see a total of seven years of back-to-back increases.

That’s because this proposed increase comes after a multi-year increase approved in 2022. Rates were raised by 10% in the 2023-2024 fiscal year, then another 6% in 2024-2025. The remaining three rate hikes under that plan would be replaced under the new proposal.

The initial jump in water rates under the new proposal would be significant – 34% as of July 1 this year.

Increases would then taper off in succeeding years to 6% in the  2025-2026 fiscal year, another 6% in 2026-2027 and, finally, increases of 2.4% for both the 2027-2028 and 2028-2029 fiscal years.

That would take average residential bills from $43.46 to $54.94 this year and eventually up to  $64.72 by the final year, according to Water Resources Department staff.

The rate increases are needed to fund a $72-million, 10-year infrastructure maintenance and expansion program, according to a presentation at the Water Board committee held March 12.

This fiscal year alone, the Water Department will need up to $13.5 million to pay for contamination treatment, a solar facility and to take over two small, failing systems, although that $6 million consolidation cost will likely be repaid by the state. Meanwhile, operations and maintenance costs continue to escalate – especially power, which chews up $12 million a year, Water Department staff said.

The city water department serves about 165,000 residents. Most Bakersfield residents get their water from California Water Services.