GRIDLEY, CA (MPG) – Recently, an anonymous local farmer visited The Gridley Herald office with some concerns about possible water rate increases through Butte Water District (BWD). The last water rate increase was in 2006.

General Manager Donnie Stinnett and former General Manager Mark Orme sat down with The Gridley Herald to talk about the proposed rate increase. 

Butte Water District comprises about 31,000 acres in Butte and Sutter counties. The district has rights to more than 130,000-acre feet of water from Feather River, which is distributed via canals to landowners for irrigation, environmental enhancement and groundwater replacement.

Butte Water District is a Groundwater Management Agency under the Sustainable Groundwater Management Act.    

Butte Water District relies on water rate revenues, standby fees from land-based assessments and surplus water transfers to outside entities to pay for the delivery of water to customers. Ground Water Substitutions, when water is supplied from two district-owned wells, also help offset the delivery costs. 

Currently, water rates and standby fee revenues generate $800,000 or about half of the $1.5 million total annual operating costs. The proposed increase will help bridge the gap between revenues and cost of operation.           

According to Proposition 218 passed in 1996, California water districts must follow an established process to raise taxes or service fees. Districts are required to obtain an independent cost-of-service study, with a projected five-year plan in place, specifying maximum amounts for each year. This report must be provided to the public and potential fee increases must be at or below those limits. The amounts in the cost-of-service study are not necessarily the same as the amounts of the newly-proposed rates.  

In addition, a public hearing must be held, which will be at 11 a.m. March 31 in the local Butte Water District office, 735 Virginia St. Proposition 218 requires all landowners and customers in the district to be notified by mail at least 45 days before the meeting. Stinnett confirmed that all of the notices for Butte Water District were mailed “at the appropriate time.”       

“We’re not hiding anything,” said Stinnett. “Here’s our budget; here’s what our future plans are.” 

Orme added, “And every landowner has the right to reject it or vote against it. You can look at the report and if you don’t agree with it, you can protest. Everything is transparent.”

Parcel owners have the right to file any protests using forms available for this purpose on the Butte Water District website at buttewaterdistrict.org. An objection (which preserves the right to legally challenge the rates) is due in writing by mail (no email) or delivered in person by 5 p.m. March 10. Protests can be filed any time before the end of the March 31 meeting. Under Proposition 218, if a majority of parcel owners or customers protest the increase, the district cannot impose the new rates and fees.

Both Stinnett and Orme emphasized that the Butte Water District board members are all farmers, with farmers’ best interests in mind. Parcel owners and customers are encouraged to speak in person or by phone at 530-846-3100 with Stinnett.