Will Watsonville Increase Utility Rates?

WATSONVILLE, CA — The Watsonville City Council is slated to consider a utility rate hike this spring.

If approved, a single-family household might see a total $19 increase in their wastewater bill and another $19 increase in their solid waste bill over the next five years bill, according to a staff report presented to the council last week. The average family might see slightly decreased water rates.

The Pajaronian first reported the news.

Watsonville's utility rates have remained the same since 2015, but the city said increases are necessary to avoid dipping into — and quickly exhausting — capital reserves. Wastewater reserves would be exhausted in the 2026 fiscal year, while solid waste reserves would by exhausted in the 2023 fiscal year.

The city described the proposal as a "once in a generation" increase, according to a presentation given to the council.

Raftelis Financial Consultants compiled the rate increase recommendations after an analysis of the city's utility rates.

Here are the proposed solid waste rate adjustments:

• July 2021: 7.5 percent rate increase
• July 2022: 7.5 percent rate increase
• July 2023: 7.5 percent rate increase
• July 2024: 5 percent rate increase
• July 2025: 5 percent rate increase

Solid waste increases would generate a total of $16.7 million over the next five years.

Here are the proposed wastewater rate adjustments:

• July 2021: 7.5 percent rate increase
• July 2022: 7.5 percent rate increase
• July 2023: 7.5 percent rate increase
• July 2024: 7.5 percent rate increase
• July 2025: 7.5 percent rate increase

Wastewater increases would generate a total of $13.5 million over the next five years.

Here are the proposed water rate adjustments:

• July 2021: 1 percent rate increase
• July 2022: 1 percent rate increase
• July 2023: 1 percent rate increase
• July 2024: 1 percent rate increase
• July 2025: 1 percent rate increase

Water rate increases would generate a total of $3 million over the next five years.

The Watsonville City Council will consider the matter at its May 25 meeting. If it passes, the city will send notices to all property owners who receive the city's aforementioned services.

They would have 45 days to protest the increase by sending an email to cityclerk@cityofwatsonville.org, or mailing or hand-delivering a note to the city clerk (275 Main St., fourth floor). The rate hike would be rescinded if a majority of customers object.