City of Turlock
Protecting Water Quality, Public Health and the Environment
Planning for Reliable Water in Our Community
Turlock is conducting a water rate study to ensure its water utility remains financially stable, legally compliant, and capable of meeting the community’s needs now and in the future. The study, conducted in accordance with Proposition 218, will review current rates, assess costs of service, and propose updated rates that are fair and transparent.
The City provides drinking water from 18 groundwater wells to over 73,000 residents. To reduce its reliance on groundwater, the City has begun supplementing its groundwater supply with treated surface water. Adding surface water to the City's drinking water supply portfolio helps insulate the City from variability in groundwater quality and groundwater availability.
Key Goals of the Water Rate Study
- Ensuring Reliable and Safe Service: Evaluating water rates ensures that Turlock’s water system remains financially stable and continues to deliver reliable, high-quality water to both residents and businesses.
- Future Planning: It has been several years since our last review. With changes in infrastructure, costs, and regulations, we aim to ensure our system remains robust and service is uninterrupted.
- Protecting Public Health and the Environment: This review is crucial for maintaining safe drinking water, safeguarding public health, and preventing environmental issues.
- Community-Centric Approach: Our objective is to maintain excellent water service while keeping costs as low as possible, ensuring full transparency about any proposed changes.
Why Are Rate Changes Being Proposed?
A water rate study is an important tool for the City of Turlock to ensure the financial viability of its water system while adhering to state and federal requirements. Here's why such a study is important.
1. Ensures Financial Sustainability
- Revenue Generation: A water rate study helps ensure that the city collects sufficient revenue to cover the costs of water system operations, maintenance, and capital improvements.
- Debt Management: It aids in planning for the repayment of loans or bonds used for major infrastructure projects, such as water treatment upgrades.
2. Supports Infrastructure Investment
- Aging Infrastructure: Many cities, including Turlock, face the challenge of maintaining and replacing aging water infrastructure. A water rate study identifies the necessary funding to address these needs.
- Capital Improvements: The study helps plan for major projects, such as pipeline replacements, storage tank upgrades, and advanced water treatment systems, ensuring long-term reliability and safety.
3. Promotes Fair and Equitable Rates
- User Equity: A rate study ensures that water rates are fair and equitable, reflecting the cost of providing service to different types of customers (e.g., residential, commercial, industrial).
- Avoids Overcharging or Undercharging: By aligning rates with actual costs, the study ensures customers pay their fair share based on usage patterns.
4. Addresses Regulatory Compliance
- State and Federal Standards: Turlock must comply with regulations such as those governing water quality (e.g., disinfectant byproducts) and conservation mandates.
- Sustainable Practices: Rates can be structured to encourage water conservation, helping the city meet sustainability goals and comply with California’s water-use efficiency standards.
5. Improves Transparency and Public Trust
- Public Input: The study often includes opportunities for community engagement, ensuring transparency and allowing residents to provide feedback on proposed rates.
- Justification of Rates: It provides data-driven evidence to justify rate adjustments, helping build trust with customers.
6. Prepares for Growth and Future Challenges
- Population Growth: Turlock’s expanding community increases demand on the water system. The study evaluates how rates can support growth-related infrastructure needs.
- Climate Resilience: It addresses challenges like drought and fluctuating water supply costs, ensuring the city is financially prepared for future uncertainties.
Like many communities, Turlock is facing rising costs for water, materials, staffing, and regulatory compliance.
- Aging Infrastructure: Many pipelines and wells are decades old and need upgrades to prevent outages and leaks.
- Rising Costs: Power, treatment, labor, and emergency repair costs have all increased. We need to make sure revenues cover current and future needs.
- Stricter Regulations: State and federal rules require higher water quality and more testing, which increases costs.
- New Water Supply Investments: We’re investing in projects like the Stanislaus Regional Water Authority's Regional Surface Water Supply Project to secure a reliable water future for Turlock, but this comes with new expenses.
The Cost of Water Service
Rate adjustments are determined through a comprehensive cost-of-service study. This study is developed by independent expert consultants, carefully evaluated by City staff, and subsequently reviewed and approved by City Council following public input. The integrity of this process ensures that rates never exceed the actual cost of providing service to each customer category.
- “Fair Share” Principle: Rates will be set so each customer pays only what it costs to serve them—no more, no less.
- No Profits, No Extras: By law, all rate revenue goes back into operating and improving Turlock’s water system.
- Gradual Changes: If increases are needed, they’ll be phased in to minimize the impact.
- Help for Those in Need: The City will look for ways to support low-income customers and keep basic water use affordable for all.
Our Rates vs. Neighboring Communities
Turlock’s water rates remain in line with those of nearby communities. This graph will be updated with Turlock's proposed rates as well as closer cities as the information becomes available.
Timeline
Timeline is tentative and subject to change.
Website Launch
We are here:
Rate Study
Community Meeting (Virtual or In Person)
Council Reviews Draft Rate Study
Proposition 218 Notice Mailed
Public Hearing
Water Rate Frequently Asked Questions
What is the purpose of our Water and Sewer Rate Study?
The City of Turlock is conducting a water rate study to ensure its water utility remains financially stable, legally compliant, and capable of meeting the community's needs now and in the future.
How does Proposition 218 affect water rates?
Proposition 218 (Article XIII D of the California Constitution) requires that:
- Water and sewer rates must not exceed the cost of providing service.
- Charges must be proportional to the cost of service attributable to each parcel.
- Revenue cannot be used for purposes other than water and sewer services respectively.
- A public notification and protest process must be followed before rates are adjusted.
This ensures that rates are based strictly on cost-of-service principles—ensuring fairness and preventing overcharges.
Why are water rates potentially changing?
It’s been several years since the last review. Infrastructure, costs, and regulations have changed. Updated rates will ensure a reliable system where service remains uninterrupted.
The study will recommend rates that generate adequate revenue to cover:
- Current and future operations and maintenance costs.
- Rate stabilization.
- Capital repair and replacement costs.
- Major capital improvement project costs.
- Adequate reserve funds.
- Required debt coverage.
- Necessary studies to maintain an efficient and resilient utility.
Prop 218 guarantees transparency through a public process:
- Notice: A written notice of the proposed rate adjustment will be sent to all property owners at least 45 days in advance of a public hearing.
- Public Hearing: Residents can submit written protests or attend the hearing to provide input before the rates are adopted.
- Majority Protest Process: If a majority of parcel owners submit written protests, the City cannot implement the new rates.
The City will also hold community meetings to share information about the rates and rate adjustment process. Stay informed and get updates on this page.
Can the City use water and sewer rate revenues for other purposes?
No. Under Prop 218 (§6(b)(2)), water and sewer revenues must be used exclusively for the cost of providing these respective services. Funds cannot be transferred to the general fund or used for unrelated City expenses.
When would new rates take effect?
If approved, the new rates will take effect after the required Proposition 218 process, including a public hearing and protest period.
How can I participate in the rate-setting process?
You can:
- Review the Rate Study Report when available.
- Attend a community meeting (TBD).
- Attend public hearings to ask questions and provide feedback.
- Submit a written protest before the deadline if you oppose the rate adjustment.
For more information, contact contact@civicmic.com.
Do water rates generate a profit for the City?
No, by law, water rates cannot generate a profit. They are designed to cover the actual costs of providing water service.
How often does the City review water rates?
Typically every five years. Regular reviews ensure that rates reflect current costs for operation, maintenance, and capital needs rather than relying on outdated financial assumptions.
How are rate increases determined?
Rates are based on a cost-of-service analysis that examines actual expenses, customer usage patterns, and system improvements. The City cannot charge more than the true costs of service, as required by California law (Proposition 218).
What happens if rates aren’t adjusted?
If rates don’t keep pace with costs, the water fund could face shortfalls, leading to deferred maintenance, emergency repairs, or reduced service reliability. This could also jeopardize regulatory compliance and long-term financial health.
How does this tie into the Regional Surface Water Supply Project?
Turlock’s participation in the Stanislaus Regional Water Authority provides a new, reliable drinking water source from the Tuolumne River. The rate study helps plan for the associated operating and capital cost of this regional investment.
Area Study Map
Open the City of Turlock water rate adjustments boundary map in full screen If you cannot use the interactive map and need help determining whether a specific property is within the potential boundary, please email the project team with the property address.