BAKERSFIELD, Calif. — City officials recently presented several options to address the need for $1.3 billion in wastewater infrastructure improvements. The proposals included different combinations of rate hikes and bond financing to cover the costs of necessary upgrades.
One of the most significant proposed changes involves a 284% increase in sewer rates, bringing the annual cost to $950, or a 92% increase to $475 per year. These are two of six scenarios that were presented to the city council as potential solutions for the aging wastewater treatment plant located on East Planz Road.
The city’s current sewer rate is relatively low compared to other cities in California, at $239 annually or $19.92 monthly. However, with Bakersfield experiencing rapid growth, officials believe that expanding and upgrading the facility is more practical than simply repairing it. Community meetings have been held to explain the situation, and more discussions are planned to explore the various options.
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The first scenario under consideration would raise the annual rate by 284% to $950 in the first year, with a 3% increase each subsequent year, capping at just over $1,000 per year. This option would also require $180 million in bonds, along with an annual debt payment of $10 million.
Among the six scenarios, Scenario Five has drawn particular interest from several council members. This option eliminates the use of bonds entirely, instead proposing a 92% increase in the first year to $475, with gradual increases until reaching $1,135 by the seventh year.
Councilmember Bob Smith expressed his support for this approach, saying, “My first blush is I like that.” Councilmember Manpreet Kaur echoed similar sentiments, stating, “I do prefer the no bonding, or as little as possible bonding options. Those sound a lot more fiscally responsible to me.” Councilmember Zack Bashirtash added, “I think the right thing to do would be to not bond and put that on us.”
Despite the interest in Scenario Five, no final decision has been made on which path to take. City staff hope to finalize a plan by January, with any new rates expected to go into effect on July 1 of the following year.
The next community meeting to discuss the wastewater facility is scheduled for October 27.
Here are the six different scenarios that were presented during Wednesday’s meeting:
Sewer Cost for Service-Rates
- Scenario One: A 284% increase in annual rates to $950 in the first year, followed by a 3% increase each year, capping at just over $1,000 per year. This option requires $180 million in bonds and an annual debt payment of $10 million.
- Scenario Two: A moderate increase in rates with a combination of bonding and rate adjustments. Specific details have not been fully disclosed.
- Scenario Three: A balanced approach that includes a mix of rate increases and limited bond financing. This scenario aims to distribute the financial burden more evenly over time.
- Scenario Four: A scenario that focuses heavily on rate increases without any additional bonding. This option could lead to higher immediate costs for residents but avoids long-term debt.
- Scenario Five: No bonding required, with a 92% increase in the first year to $475, gradually increasing to $1,135 by the seventh year. This option has received strong support from several council members.
- Scenario Six: A more conservative approach with smaller rate increases and minimal use of bonds. This option is designed to provide stability while still addressing the infrastructure needs.
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