City Council
259 N. Wilma Avenue
Ripon, CA 95366
MEMO
To: Honorable City Council
From: Kevin Werner, City Administrator
Date: 10/30/2025
Subject: Proposition 218 for Utility Rate Increase
BACKGROUND:
The City of Ripon has three Enterprise Funds - water, sewer, and garbage. Enterprise Funds are operated by the City as separate financial and legal entities. The revenue collected from rates must adequately fund the water, sewer, and garbage operations, maintenance, capital replacement projects, and compliance with existing and new State of California regulations.
The City evaluates utility rates every five (5) years to ensure sufficient revenue is being collected from utility customers. The last utility rate increase was approved in January 2020 with rate increases to be implemented February 2020 – 2025. The approved rate increases do not automatically go into effect each year. The Ripon City Council has directed staff to prepare a report each year on the financials of each Enterprise Fund prior to the approved rates being implemented to determine if the full rate increase is necessary.
DISCUSSION:
The City of Ripon contracted with an independent expert to conduct a comprehensive rate study for the water, sewer, and garbage funds. A detailed draft report has been prepared that evaluates the expenses over the next five (5) years to operate and maintain the water, sewer, and garbage service levels at the current service levels, meet State of California regulatory requirements, and complete necessary capital replacement of equipment that has exceeded its’ useful life.
Staff to present the results of the Water, Sewer, and Garbage Funds Rates Study prepared by Pavletic Consulting, LLC.