The Oakdale City Council on Tuesday, Jan. 17 was told by city staff that a water and sewer rate increase was necessary due to increased water conservation efforts which resulted in significant water consumption reduction by Oakdale households and businesses.

Because of those efforts, the current level of revenue received from bills is not sufficient to meet the city’s future obligations when it comes to paying for needed water system improvements and waterline replacements.

According to the city’s presentation, over the last three years as the drought in California has persisted, the revenues collected from water rates in the City of Oakdale have dropped by 11 percent or $374,479.

This drop in revenue is a concern since operational and capital improvement costs for wells, water tanks, and pipelines have not decreased.

Officials were also told that deferred maintenance and replacement has resulted in many of the current water and wastewater system components exceeding their normal life span.

As a result of financial projections, and because of the deteriorating condition of the water system and wastewater system’s infrastructure, the city developed three proposed options of rate increases to ensure the financial stability of the two systems over the next five year period.

The needed rate increases, however, cannot automatically take effect.

In November 1996, California voters passed Proposition 218 to establish rules for raising fees and taxes in the state.

The Prop 218 statute requires that a protest hearing process be conducted prior to instituting any rate increase. If the protest fails with 50 percent or less in opposition, then the city can approve a rate increase not to exceed the rate increase detailed in the protest form.

After discussion, the city council, feeling that it would be beneficial, requested a workshop be scheduled on Jan. 30 or Jan. 31 at 6 p.m. to further discuss the process.

The City of Oakdale provides water service to approximately 7,700 customers serving an area of about five square miles. According to the city, water demand is met from groundwater sources and is delivered through a distribution system consisting of pump stations, storage tanks, and over 75 miles of water pipelines.