Woodland residents could see increases in their water, wastewater and stormwater bills as a result of a “Utility Rate Study” approved by the City Council.

Under the professional services contract with HDR Engineering, the city will be spending a total of $180,225 to do the study with money from its water, sewer and storm drain funds, according to Kim McKinney, director of Administrative Services.

The council approved the contract on a unanimous 5-0 vote Tuesday night. As approved, $60,000 is coming from the city’s Water Fund, $54,000 from the Sewer Fund and $50,000 from the Storm Drain Fund.

If the study finds costs of service have increased, local utility users could see their costs climb as early as January 2026.

In a written report to the council, McKinney stated that the last rate studies for water and wastewater were in 2021, which ended up with the adoption of a five-year “rate adjustment plan” for each of the two rates.

The approved water rates resulted in an “annual adjustment” — meaning a price increase — of 3%, which began in January 2022.

“The approved sewer rates did not include an adjustment in the first of the five years, and each year thereafter included an annual 2% adjustment,” McKinney noted. “Since the completion of these rates, the costs of ongoing operations have changed and, in many cases, are not reflective of the amounts used in the rate studies.”

McKinney said city staff anticipate completing these studies in the next few months and, if approved, the rates would be effective in January 2026.

The city’s stormwater rates were approved in 1997 and have not changed since that time.

“The rates do not allow for any annual inflationary adjustments, and an attempt to adjust the rates in 2007 was unsuccessful,” she reported. “State regulations have changed over time, requiring additional processes and projects that were not contemplated when rates were approved 28 years ago.

“The process for adopting rates for stormwater is different from the process for adopting rates for water and sewer,” she continued. “Because a rate study has not been completed for this utility in many years, staff anticipates completing the rate study over the next few months and will reassess and determine the timing for a potential rate adjustment later this year.”

HDR Engineering has assisted the city with the last three rate studies and is familiar with the city’s rate components, design and operations, McKinney reported.

The proposed contract with HDR includes developing the rate studies for each of the three utilities, accounting for operating costs, capital projects, debt financing and allocation and distribution of costs among classes of customers throughout the city.

HDR will also provide documentation and assistance with the required processes under Proposition 218, and public outreach, as necessary.