City Council
259 N. Wilma Avenue
Ripon, CA 95366
MEMO
To: Honorable City Council
From: Kevin Werner, City Administrator
Date: 11/10/2025
Subject: Water, Sewer, Garbage Utility Rates
RECOMMENDED ACTION:
Adopt Resolution directing City staff to conduct the property owner notice, hearing, and protest process as required by Proposition 218 to increase water, sewer and garbage rates as recommended in the Water, Sewer and Garbage Funds Rates Study report dated November 3, 2025. Specifically, this process would include:
Set a public hearing for January 13, 2026 to consider protests opposing the proposed water, sewer, and garbage rate increases; and
Provide written notice to property owners by mail a minimum of 45 days prior to the public hearing of the proposed water, sewer, and garbage rates. In the event that a majority protest does not exist, the proposed water, sewer and garbage rates would be approved for a five-year period beginning February 1, 2026.
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, 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 annual 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 an annual report that summarizes the financials of each Enterprise Fund prior to the approved rates being implemented to determine if the full rate increase is necessary.
The City of Ripon contracted with an independent expert to conduct a comprehensive rate study for the water, sewer, and garbage funds for the rate study period of 2026-2030. A detailed report has been prepared that evaluates the expenses over the next five (5) years to operate and maintain the water, sewer, and garbage utilities at the current service levels, meet State of California regulatory requirements, and complete necessary capital replacement of equipment that has exceeded its useful life.
DISCUSSION:
The City Council held a workshop on October 30, 2025 to review the recommendations from this analysis. Based on the discussion and direction from the City Council, the Water, Sewer, and Garbage Funds Rates Study report has been updated (see attached).
The combined impact of the recommended rate increases upon a typical residential customer is summarized in the table and figure below. The impact on the monthly bill is for a residential customer with a 1-inch water meter and 16 hundred cubic feet per month water use, a sewer connection and residential curbside 1 black + 1 green service.
Prior Recommended
Monthly Bill FY25 FY26 FY27 FY28 FY29 FY30
Water $52.60 $54.64 $56.94 $59.24 $61.64 $64.04
Sewer $26.20 $27.00 $27.80 $28.60 $29.50 $30.40
Garbage $44.30 $53.15 $55.25 $57.45 $59.75 $62.15
Total $123.10 $134.79 $139.99 $145.29 $150.89 $156.59
Monthly $ ∆ FY25 FY26 FY27 FY28 FY29 FY30
Water $1.02 $2.04 $2.30 $2.30 $2.40 $2.40
Sewer $1.00 $0.80 $0.80 $0.80 $0.90 $0.90
Garbage $1.70 $8.85 $2.10 $2.20 $2.30 $2.40
Total $3.72 $11.69 $5.20 $5.30 $5.60 $5.70
Monthly % ∆ FY25 FY26 FY27 FY28 FY29 FY30
Water 2% 4% 4% 4% 4% 4%
Sewer 4% 3% 3% 3% 3% 3%
Garbage 4% 20% 4% 4% 4% 4%
Total 3.1% 9.5% 4.0% 4.0% 4.0% 4.0%
$53 $55 $57 $59 $62 $64
$26 $27 $28 $29 $30 $30
$44
$53 $55 $57 $60 $62
$123
$135 $140 $145 $151 $157
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
FY25 FY26 FY27 FY28 FY29 FY30
Garbage Sewer Water
Proposed Water Rate Increases
The City operates and maintains 72 miles of water line, 6 groundwater wells, 1,200 valves, 5,100 service connections, 6 generators, and two above ground water storage tanks that provides safe and reliable drinking water to its’ customers. The revenue generated by water rates is used to fund:
Staff necessary to operate and maintain the groundwater wells that supply water; maintain the pipeline transmission system; and comply with water quality testing and analysis.
Variable costs to operate the water system including electricity, well head treatment, etc.
Pay debt associated with the water fund.
Replacement of capital items such as pumps, vacuum truck, generators, vehicles, and other equipment that has exceeded its’ useful life.
The proposed water rate increase of 4 percent over the next 5 years is necessary to continue to provide the current service levels along with operating and maintaining new well head treatment systems at two groundwater wells. The figure below shows the cash flow (operating expenditures, target fund balance, and ending fund balance), capital transfers, and debt service payments over the 5-year rate study period.
2,290,000
2,470,000 2,600,000
2,940,000 3,060,000 3,180,000
770,000
900,000 900,000
900,000
1,100,000 1,100,000
780,000
780,000 780,000
770,000
500,000 500,000
2.87x 2.93x 3.01x 2.83x 4.54x 4.69x
2%
4% 4% 4% 4% 4%
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
FY25 FY26 FY27 FY28 FY29 FY30
Water Operating Fund Cash Flow, Debt Service Coverage & Monthly Bills Operating Capital Reserve Debt Service Coverage
Revenue End Balance Target Balance SF Mo. Bill % Δ
Proposed Sewer Rate Increases
The City operates and maintains over 65.5 miles of sewer lines, 7 pump stations, and a wastewater treatment plant that conveys and treats domestic and industrial wastewater influent to State of California regulatory requirements.
The revenue generated by sewer rates is used to fund:
Staff necessary to operate and maintain the sewer collection system, including performing the flushing of the pipelines to prevent blockage from Fats, Oils and Greases that could cause overflows.
Staff necessary to operate and maintain the waste water treatment plant, including ripping and disking of disposal ponds, repairing various equipment, and performing the regulatory testing required of all influent and effluent of the plant. Variable costs to operate the water system including electricity, chemicals, etc. Replacement of capital items such as pumps, pond aerators, vacuum truck, generators, vehicles, tractors and other equipment that has exceeded its’ useful life.
The proposed sewer rate increase of 3 percent over the next 5 years is necessary to continue to maintain current service levels while also transferring the funds necessary to fund a significant upgrade of the wastewater treatment plant when the 1994 Wastewater Discharge Regulatory Permit limits are updated to present-day State mandated treatment standards. The figure below shows the cash flow (operating expenditures, target fund balance, and ending fund balance), capital transfers, and debt service payments over the 5-year rate study period. 1,240,000 1,290,000 1,340,000 1,390,000 1,440,000 1,500,000 370,000 400,000 400,000 400,000 400,000 400,000
410,000
450,000 490,000 540,000 590,000
650,000
200,000
190,000 0
0 0
0 4% 3% 3% 3% 3% 3%
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
FY25 FY26 FY27 FY28 FY29 FY30
Sewer Operating Fund Cash Flow & Monthly Bills
Operating Capital Reserve Reserve - Future WWTP Debt Service Revenue End Balance Target Balance SF Mo. Bill % Δ
Proposed Garbage Rate Increases
The City of Ripon provides solid waste collection for all residential properties within the Ripon City Limits. The State of California has enacted a number of laws over the last few years that that have increased operating expenses of the Garbage Fund, most notably was Senate Bill 1383 that mandated that cities like Ripon reduce landfill-bound organics in an effort to reduce methane emissions.
Since January of 2024, the City delivers solid waste from the black can to a high-diversion organic waste processing facility that is equipped to separate the waste by waste category. This diversion allows the City to comply with the State of California’s unfunded mandate of SB1383 while providing the lowest cost service to garbage customers.
The City also provides customers the option of requesting a green can in addition to the black can. The green can is for yard waste and goes directly to a composting facility, which is less expensive than sending to the high diversion facility.
The revenue generated by garbage rates is used to fund:
Staff necessary to provide collection and disposal of solid waste along with annual programs offered to garbage customers, including the yard waste pick up program during the months of October-January and the annual large item pick up program during the months of April-September.
Disposal fees at the high diversion facility, landfill, and composting facility where the solid waste is processed.
Replacement of capital items such as side loaded garbage trucks, rear loaded garbage trucks, sweeper, tractor, roll-off truck and garbage cans.
As a result of the unanticipated expenses associated with complying with State of California regulatory mandates during the previous rate study period of 2020-2025, the garbage operating fund balance has dropped below the target balance. This could impact service levels if an unplanned expense (e.g., garbage truck damaged to the extent it no longer can be used, etc.) arises and the funds are not available.
The proposed garbage rate increase of 20 percent in year 1 and 4 percent over the remaining years of the rate study period is necessary to maintain current service levels while also restoring the target balance of the garbage operating fund to have funds available if an unplanned emergency expense arises. The increase will also allow the City to continue to comply with State of California unfunded mandates while transferring the funds necessary to replace capital that has exceeded its’ useful life. The figure below shows the cash flow (operating expenditures, target fund balance, and ending fund balance), capital transfers, and debt service payments over the 5-year rate study period.
2,750,000
2,920,000 3,010,000 3,100,000 3,200,000 3,300,000
30,000
50,000
150,000
230,000
300,000
380,000
4%
20%
4% 4% 4% 4%
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
FY25 FY26 FY27 FY28 FY29 FY30
Garbage Operating Fund Cash Flow & Monthly Bills
Operating Capital Reserve Revenue End Balance Target Balance SF Mo. Bill % Δ Comparison of Ripon’s Water, Sewer, and Garbage Rates Compare to Other Cities Current and projected February 2026 residential customer bills for Ripon were compared to those in other nearby cities based on a customer with a 1-inch water meter and 16 hundred cubic feet of monthly water use, a sewer connection, and residential curbside garbage service of 1- black + 1-green cans are shown in the figure below.
Ripon’s proposed utility rate is 11% lower than the average of the Cities surveyed.
Attachments:
1. 2025 ripon_wtr-swr-gbg-draft_rpt_d4_models_v7
RESOLUTION NO. 25-36
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RIPON DIRECTING STAFF TO INITIATE THE PROPOSITION
218 PROPERTY OWNER NOTICE, HEARING AND PROTEST
PROCESS FOR THE PROPOSED WATER, SEWER AND
GARBAGE RATE INCREASES EFFECTIVE FEBRUARY 1,
2026 THROUGH JANUARY 31, 2031, AND ADOPTING SAID
FEE INCREASES IN THE EVENT OF A LACK OF A
MAJORITY PROTEST
WHEREAS, the City of Ripon has separate Enterprise Funds for the water, sewer, and garbage services it provides, which are funded by the rates paid by users for said services; and WHEREAS, the City of Ripon last raised its utility rates for water, sewer, and garbage in January, 2020, which included annual rate increases that are set to expire in 2025; and WHEREAS, the City has authorized the preparation of that certain Water, Sewer and Garbage Funds Rate Study dated November 3, 2025, (“Rate Study”) which sets forth the process and underlying assumptions for utility rate setting, provides an overview of City Enterprise Funds, and establishes proposed adjustments to existing water, sewer and garbage rates, a true and correct copy of which is attached to this Resolution as Exhibit “A”; and WHEREAS, the Rate Study recommends that City Council adopt rate increases for water, sewer, and garbage services in order to maintain existing levels of service to the City’s users; and WHEREAS, by this Resolution seeking voter input and protests of the water, sewer, and garbage rates, the Notice, the Protest Ballot, and the procedures mandated by Articles XIIIC and XIIID to the California Constitution and the Government Code, the City of Ripon seeks to be in compliance with Proposition 218, and all other applicable state and federal laws.
NOW, THEREFORE, the City Council of the City of Ripon does hereby resolve as follows:
SECTION 1. Statement of Legislative Intent. It is the City Council’s intent in adopting this Resolution, to adopt fees and charges via ballot proceedings that are consistent, and in compliance with, Articles XIIIC and XIIID of the California Constitution and with the Proposition 218 Omnibus Implementation Act.
SECTION 2. Initiation of Proposition 218 Process. The City Council hereby authorizes the City Administrator, or his designee, to initiate the property owner notice, hearing, and protest process as required by Proposition 218 for the proposed water, sewer, and garbage rate increases, as specified in the Rate Study, in full accordance with the procedures and requirements of Proposition 218.
SECTION 3. Public Hearing. A public hearing upon the proposed rates shall be conducted on January 13, 2026, which is not less than 45 days after mailing the notice as described above. At the public hearing, the City shall consider all protests against the proposed fee or charge.
SECTION 4. Protests. One written protest per identified parcel, filed by either an owner or tenant of the parcel, shall be counted in calculating a majority protest to a proposed new or increased fee or charge subject to the requirements of Section 6 of Article XIII D of the California Constitution. If written protests against the proposed fee or charge are presented by a majority of owners of the identified parcels, the City shall not impose the fee or charge. Written protest shall include the following information to be considered a valid protest:
1. Identifies whether the individual submitting the protest is the property owner or tenant.
2. Location of parcel (by street address or Assessor’s Parcel Number).
3. States opposition to the proposed water, sewer, and garbage utility rate increases.
4. Name and signature of the individual submitting the protest.
SECTION 5. Approved Water, Sewer, and Garbage Rate Schedules. In the event that a majority protest does not exist, the proposed Water, Sewer, and Garbage Rates as described in the Rate Study, is considered approved by the voters and enacted effective February 1, 2026.
SECTION 6. Other Necessary Actions. The City Council further authorizes the City Administrator to take such other necessary and appropriate actions, notices and proceedings as may be required in order to carry out the intent of this Resolution.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Ripon this 10th day of November, 2025, by the following vote:
RESULT: ADOPTED [UNANIMOUS]
MOVER: Leo Zuber, Council Member
SECONDER:Michael Restuccia, Council Member
AYES: de Graaf, Barton, Uecker, Restuccia, Zuber
THE CITY OF RIPON,
A Municipal Corporation
By ________________________________
DANIEL DE GRAAF, Mayor
ATTEST:
By: ___________________________
LISA ROOS, City Clerk