At the January 9, 2018 City Council meeting, Mayor Nader announced during open session it had recently came to his attention that the FY 2017-18 budget is the first to contain a revenue line item for the City’s municipal water use. That prompted further inquiry by him into the City’s recent water loss report to the State, and also the HF&H water rate study that was adopted by the City Council in 2013. He expressed concern the HF&H study did not adequately disclose the fact the City was not budgeting revenue to pay for its municipal use, nor did it disclose the implications that practice may have relative to Proposition 218. With that he directed the City Attorney to oversee an independent fact finding mission to understand the history of this practice.

Meyers Nave has completed this fact finding investigation, and the City Council approved the release of the report related to the mission. This report can be reviewed here. 

In 2013 the City adopted the current water tier system which included 5 tiers at that time. The tiered rates were adopted in part based on state mandates to encourage water conservation. At the time of water rate adoption, 66% to 80% of California water providers were using some type of tiered rates.