UVWA Passes 60%+ Rate Increases Over the Next 5 Years
At their meeting on Monday, February 9th, the Ukiah Valley Water Authority (UVWA) adopted new water rate increased that will begin in March. The adopted plan includes increases of up to 30 percent this year for some districts, followed by additional double-digit hikes each year through 2029. For customers in Millview, Willow, and Redwood Valley, cumulative increases over the next five years are projected to exceed 64 percent. Although more than 200 protest letters were submitted, they did not meet the legal threshold required to block the increases. UVWA officials stated that the additional revenue is needed to address long-deferred infrastructure repairs and rebuild declining reserves across Millview, Redwood Valley, Willow, and the City of Ukiah. For many ratepayers in attendance, however, the increases felt abrupt and financially destabilizing.
Mark Hildebrand, a rate consultant retained by the authority, explained that much of the increase reflects years of postponed capital investment. He noted that Millview had not raised rates in 14 years and warned that failing to make incremental adjustments over time creates larger financial challenges later. Under the adopted schedule, Millview customers will see a 15 percent increase beginning March 1, followed by 14 percent annual increases in subsequent years. Redwood Valley customers will face a 30 percent increase this spring and another 12 percent three months later, with smaller adjustments thereafter. Willow customers will experience a 19 percent increase, followed by annual 12 percent adjustments. By comparison, Ukiah customers will see a more modest initial increase of about 6 percent, reflecting prior adjustments including a 22 percent rate hike last September and a 14 percent increase in 2024.
According to officials, the new revenue will fund stepped-up capital reinvestment, including replacing aging pipes before they rupture, upgrading reservoirs and treatment facilities, and stabilizing reserves that in some districts are projected to approach zero. UVWA General Manager Jared Walker described Redwood Valley’s system as uniquely expensive to maintain because it operates a dual plumbing network that provides both treated domestic water and untreated irrigation water, effectively doubling infrastructure across a wide rural area.
In response to protest letters, the UVWA executive committee published formal determinations stating that the proposed rates are supported by financial plans and that a reasonable relationship exists between the rates and the cost of service. The committee asserted that there is no cross-subsidization among districts and that state noticing requirements were properly followed. Although the board acknowledged affordability concerns, particularly for seniors on fixed incomes, it concluded that applicable law requires rates to reflect the cost of providing water service. As the first increases take effect March 1, the broader debate over infrastructure investment, affordability, and regional water governance in the Ukiah Valley is likely to continue.
