NOTICE IS HEREBY GIVEN that on Tuesday, January 11, 2022 at 6:00 p.m. or as soon thereafter as possible, the Guadalupe City Council will hold a public hearing at City Hall, 918 Obispo Street, Guadalupe, California, in City Council Chambers, for the following purpose:


The City provides water service to approximately 2,478 customers, and sewer service to approximately 2,406 customers. Monthly rates charged to system users (customers) on a monthly basis are the primary source of revenue to operate the water and sewer systems and are used solely for this purpose. Rate revenue provides funding for annual operating and maintenance costs, including water and sewer treatment, capital projects to improve water and sewer infrastructure, debt service obligations, adequate fund reserves and planning for contingencies.

The proposed rates are based on a comprehensive utility rate study and financial plan developed by an independent consultant.

The rate structures for each utility were designed so that revenues derived from the proposed rate changes do not exceed the amount of revenue required for the property-related services provided by the City, nor will the revenue from the rates and charges referenced herein be used for any purpose other than that for which the corresponding rates are imposed. The amount of the proposed rates imposed on any parcel or person as an incident of property ownership will not exceed the proportional cost of the service(s) attributable to such parcel; and no rate will be imposed for a service unless that service is actually used by, or immediately available to, the property owner or customer in question.

Why are rate increases needed?

To develop water and sewer rates that will generate sufficient revenue to meet fiscal and policy objectives of the City, a determination of the amount of annual revenue required from rates was completed. The first step of this analysis resulted in the identification of revenue requirements for the water and sewer utilities, including operating and maintenance expenses, capital expenses such as routine replacement of aging system components and replacement and/or upgrades of water and sewer lines, debt repayment costs (including required debt service coverage) and funding of reserves at appropriate levels to smooth out cash flow timing and provide for unexpected costs.

These revenue requirements were then compared to the total sources of funds during each year of the forecast period to determine the adequacy of projected revenues to meet those requirements. The study results demonstrated that revenue over the next five years from the City’s current water and sewer rates will not fully provide for the costs identified above, and as a result, a series of rate revenue increases were calculated, which if implemented, will provide revenue sufficient to meet those needs. The rate study report providing the rate development methodology is available at City Hall and on the City’s website at

Proposed rates have been calculated based on the City’s cost to provide water and sewer service to users. For the water utility, all customers are charged a basic rate that includes an initial allotment of 500 cubic feet of water flow, then they are charged an additional uniform rate for each 100 cubic feet of water used beyond the initial allotment. The initial allotment is being reduced from the current 600 cubic feet to 500 cubic feet, and will be further reduced to 400 cubic feet, beginning in Calendar Year 2023.

For residential customers, the proposed sewer rates consist of a basic flat monthly rate, regardless of flow. For commercial customers, the proposed sewer rates consist of a basic monthly rate that includes an initial allotment of 500 cubic feet of flow, with an additional charge for each 100 cubic feet of flow beyond the basic allotment. The allotment included in the basic monthly rate for commercial customers will be decreased from 500 cubic feet to 400 cubic feet beginning in Calendar Year 2023.

All interested persons are invited to appear at the time and place specified above to give oral or written testimony, or to submit written protests, in regards to this matter.  Written comments or protests may be forwarded to the City Clerk’s Office at City Hall, 918 Obispo Street, Guadalupe, California, 93434.  Items mailed to the City must be received prior to the hearing in order to be considered by City Council.

If you require special accommodations to participate in the public hearing, please contact the Administration Department at (805) 356-3891.  Inquiries/comments may be sent to: City Administrator, 918 Obispo Street, Guadalupe, CA; or through email to: