Live Oak proposing 60% water rate hike to fund $3.5M deficit

The city of Live Oak is proposing a 60 percent water rate hike to tackle a $3.5 million water fund deficit.

The city's wells have been detected to have small amounts of forever chemicals in them, a story KOVR brought you back in December. 

While the detection hasn't met the threshold for the city to take action, there's been growing concern over water quality issues in general among many Live Oak residents.

This comes during a time a major water rate hike could be on the horizon.

"Most people don't even know this is happening," said resident Rick Dais as he puts up signs reading "stop the water rate increase."

The city of Live Oak hasn't raised water rates in more than 19 years and now says they're facing a water fund deficit of $3.5 million, that it's liable for.

"We are truly looking at a bankruptcy scenario due to the structural deficit this water fund is causing," said Mayor Jeramy Chapdelaine.

To tackle that deficit, they're proposing to increase water rates by an initial 60% through 2026, then again by 60% over the next two years, and again by 10% the two years after that.

"Them raising it, why? They should fix it first. I can't even afford making a rent payment. Them raising water is... I'm having a hard time right now," said Manuel Pompa.

Live Oak has the lowest water rate in the region with a base of $24 per month, neighboring Yuba City is at $41. But some Live Oak residents have major concerns over water quality issues.

"It smells like sewer water at certain times of the day, and I don't even like taking a shower," said Pompa. "When you boil the water you see all the stuff that's in it."

"We know that our water system is in disarray, but the solution here is not water hikes. It's communicating and integrating with the state and federal government," said resident Cruz Mora.

The mayor said he is aware of people's concerns over water quality, and that the city is committed to making improvements, but he said there's just no money to do so right now. He said the city isn't even eligible for state or federal grants because of the deficit.

"I completely understand their concerns," said Mayor Chapdelaine. "The fund is in such a condition that everything is negative and state law precludes us from borrowing from the general fund as well. So there are no revenues to take on or start these new projects."

"We need people to sign and shut it down. I'm not opposed to a water rate hike, per se, but it has to be reasonable," said Dais.

Under Prop 218, also known as the Right to Vote on Taxes act, the city will need the people's approval before going ahead with the increase.

Residents in Live Oak will be sent a notification letter on March 28, followed by an outreach meeting on April 23 for residents to make their voices heard.