A water agency held a poorly attended public workshop on rate adjustments, prompting discussion of additional community outreach efforts. The Pine Grove Community Services District formally requested the agency take over their water services due to rising costs and governance challenges. Staff identified $6 million in potential project savings through value engineering by deferring non-critical capacity expansion components at treatment facilities.
The agency is considering 5-9% annual rate increases for five years to fund $19 million in critical infrastructure upgrades to aging water systems. Current 4% increases only cover half the needed improvements, while wastewater rates may rise 3-5% annually to address 1970s-era system deficiencies. The agency has secured $3 million in grants and is pursuing a WIFIA loan for additional low-interest financing.
