WILLIAMS, CA (MPG) — The Williams City Council has approved the start of a Proposition 218 process that could increase water and sewer rates beginning Dec. 1, 2025.
Finance Director Rex Greenbaum told the council at its Sept. 17 meeting that the city’s current rates do not provide enough revenue to sustain operations or replace aging infrastructure. He said the increases are needed to maintain service and cover ongoing costs.
“This is for the approval of the Prop. 218 process for the water and sewer rate adjustments,” Greenbaum said. “The existing rates do not provide sufficient revenues to sustain the operations or fund critical capital replacements.”
If ultimately adopted, the new schedule would raise base water and sewer rates by 13.8 percent in the first year. The following years would see increases of 8.8 percent, 9 percent, and 9 percent through 2029.
Greenbaum said the Finance Committee directed staff to select the lower of two options considered, reducing the city’s reserve policy from 40 percent to 20 percent. That change spread the increases more evenly across the five-year schedule instead of placing the heaviest adjustments in the early years.
“The finance committee proposed lower rates than were included in the initial studies,” Greenbaum said. “They decreased the operating reserves from 40 percent to 20 percent, so that did have a noticeable change on the rates.”
City Administrator Frank Kennedy said the adjustments would not expand staffing levels.
“This is an operational cost,” Kennedy said. “Current operational costs we need to move forward.”
Councilmember Kate Dunlap sought clarification during the meeting that the increases were not tied to growth or new hires.
“It’s not to expand the facilities, is that correct?” Dunlap asked.
“That is correct,” Greenbaum said. “It’s just provided for the operational and the infrastructure needed.”
Dunlap also asked, “And it’s not to hire more personnel, correct?”
“No, it is not,” Greenbaum said. Kennedy added that some infrastructure work is included but no new positions.
The Prop. 218 process requires the city to notify all affected property owners and customers at least 45 days before the public hearing. Notices will be mailed in English and Spanish to more than 1,600 addresses beginning Oct. 2.
The hearing is scheduled for Nov. 19, when the council will consider adoption of the new rates. If approved, residents would see the higher bills in January.
Under state law, affected property owners and tenants can file written protests. If a majority of property owners oppose the increase, the council cannot adopt the new rates. Each parcel counts as one vote, regardless of how many tenants or owners are associated with the address.
“It will be sent out to both property owners and tenants, if we have the address provided for the tenants,” Greenbaum said. “Each parcel can only have one vote. We will review all the letters received and provide that information to the city council.”
Kennedy noted that responsibility ultimately lies with owners.
“It’s important to note that the property owner is responsible for the water and sewer bill, even though many property owners who rent properties put it back onto the renter,” Kennedy said. “Legally it is always on the property owner.”
Greenbaum explained that unless more than half of property owners file formal protests, the rates will take effect.
“If we have to receive over 50 percent negative vote in order for it to not pass,” he said.
Kennedy said the process gives broad participation compared to standard elections.
“The good thing about a 218 vote like this is that everybody gets to vote,” Kennedy said. “You don’t have to be a registered voter to have a protest. In a regular general election only the registered voters vote, and typically you get one third of the people vote. In this process, all the property owners and the addresses we have will get one.”
The council’s action this month does not approve new rates, but it begins the required legal process. Residents now have two months to review the proposal and decide whether to support or oppose the higher charges.