A series of water rate increases have been approved by the Oakdale City Council, designed to fund system operations, infrastructure improvements and long-term capital needs. The 4-1 vote on June 1 saw Council Member Jarod Pitassi casting the lone dissenting vote after arguing the city should wait to see how revenue from new development affects water system finances before raising rates.
The action followed a Proposition 218 public hearing required under California law before local agencies can adopt property-related fee increases. City officials reported that notices were mailed to 9,139 property owners and customers on April 15, while City Clerk Colleen Andersen announced that only two written protests had been received, far short of the majority protest threshold required to block the increase.
The approved rate schedule is based on a comprehensive water rate study conducted by Tuckfield & Associates.
According to City Manager Jerry Ramar, the study was designed to ensure the city’s water rates comply with Proposition 218 requirements while generating sufficient revenue to maintain operations, fund capital improvement projects and meet reserve targets over the next decade.
“The goal is to establish rates that follow industry practice and legal framework, while providing sufficient revenues to the city so we can maintain our operating and maintenance and our CIP,” Ramar said.
The city has not increased water rates in several years, according to city officials. Ramar said the study projects rising costs in labor, benefits, electricity, chemicals and capital improvements over the next 10 years.
Under the adopted plan, water rates will increase approximately 4.4% annually over the next five years. For most residential customers with 5/8-inch, 3/4-inch and 1-inch meters, the monthly fixed service charge will rise from $15.69 to $16.11 during the first year. The variable usage rate will increase from $2.15 to $2.24 per 100 cubic feet of water used.
Using the city’s example of an average residential customer consuming 1,500 cubic feet of water per month, the total monthly bill would increase from $47.94 to $49.71 in the first year, an increase of $1.77, or about 3.7%. High-volume users would see larger dollar increases, though similar percentage changes.
Ramar noted that Oakdale's water rates remain among the lowest in the region and would continue to rank near the bottom compared with neighboring communities even after the increase takes effect.
Three residents addressed the council during the hearing. One resident said she had been unaware of a March community workshop discussing the proposed rates and asked whether residents would receive additional mailed notices before a future wastewater rate hearing. Another questioned assumptions used in the rate study, while another raised concerns about public notification and outreach regarding city meetings.
Following the close of the public hearing, Andersen reported that two written protests had been received out of the 9,139 notices mailed to affected property owners and customers. Because a majority protest was not achieved, the council was legally permitted to consider the rate increase.
When the matter returned to the dais, Pitassi voiced concern about approving higher rates while residents continue to face rising living expenses.
“I think with the houses that are being built, the retail that’s coming, dining that’s coming, I think it’s fair to say with how robust the water budget is, it would be fair to kind of hold off for at least three years to see what kind of revenue those things are going to bring into the city,” Pitassi said. “Especially because everything’s going up right now – expenses for groceries, fuel, water, all the potential things that could go up aside from that. So, I’m going to vote no.”
Mayor Cherilyn Bairos supported the increase, saying the city faces the same inflationary pressures affecting residents and must continue funding critical infrastructure and services.
“We’re paying more for our people to work for us and work with us. We’re paying more for everything that we do – a cup of coffee, milk, gas,” Bairos said before casting her vote in favor of the measure. “I definitely don’t want to pay more. I don’t want my neighbors, I don’t want my parents, or my families, or you guys to pay more. However, we’re paying more for everything.”
During the discussion, Bairos asked staff to put the increase into practical terms for residents. Ramar responded that a high-volume residential customer would see an increase of approximately $3.12 per month, or 3.9%, under the first year of the new rate schedule.
After the vote, Bairos directed city staff to use the city's website and social media platforms to communicate the impact of the increase to residents.
"I would like to make sure that we get out the correct information," Bairos said. "When people see that we do have a water rate increase, that it is a small increase, it's not a huge increase." She described the adjustment as "an estimated $3 more per month average" and said residents should understand the increase is relatively modest.
“Nobody wants to pay more, and I truly dislike asking our customers to do so. However, we have not raised rates since 2021, while significant inflation has increased our costs,” Bairos said. “Our employees also needed pay adjustments to keep pace with competing municipalities. Passing this modest increase was the difficult, but responsible choice, and the only way to keep the City of Oakdale in a financially stable position while ensuring we can maintain and improve our water system for the future.”
The motion passed 4-1, with Bairos, Mayor Pro Tem Kayleigh Gilbert and council members Jeff Kettering and Rich Murdoch voting in favor. Pitassi voted against the measure.
The approved increase applies only to water rates. A separate wastewater rate proposal originally included in the city’s rate study has been postponed and will return at a later date through a separate Proposition 218 process, according to city staff.
