Questions raised about Sonoma’s water rates and fund transfers

At the 2/22/17 City Council meeting, during initial public comment, resident Chris Petlock made a short presentation about some questions he has about Sonoma city water rates and fund transfers. According to Petlock’s research, City water customers are paying approximately 20% more for their water than comparable cities in the area, and, fund transfers seem to indicate that the city’s Water Fund is subsidizing the City of Sonoma’s operating budget.

Petlock noted this is research shows that transfers from water revenues averaged about 17 percent over the last 5 years. This is much higher than comparable cities, where many do not transfer any funds at all, and those that do limited transfers to around 5 percent.

Petlock questioned whether these transfers are possibly in violation of Proposition 218, which restricts use of revenues to cost-of-service unless specifically approved by voters.  If in violation, the City runs the risk of having to return funds to the water district – and possibly water district customers – which total over $3-million over the last 5 years.

The 1996 Proposition 218 was part of the Howard Jarvis taxpayers’ revolt that included the 1978 Proposition 13, both conservative initiatives that have had positive and negative public policy and economic consequences for the State of California. Propositions 13 and 218 have an ideological dimension, and are part of a national debate about the perceived costs and benefits of government and the taxes it collects.

Since this matter was not on the agenda for discussion or action, the city is currently in process of evaluating Petlock’s findings and questions.

(Download the documents below or open them in a new window)

Comparative water rates can be found here.  URBAN17 water rates 

Petlock’s comments to the council are here. Water rate comments-sonoma

The data upon which Petlock’s questions are based can be found here. Selected Data for Sonoma water