Where: Smith River, Del Norte County, California
Issue: Payment rates were insufficient to support upkeep and improvements to water system
Outcome: With RCAC’s technical support, county officials won public support and approval for new rates
Smith River is a town in California’s Del Norte County with a population of less than 900, according to the 2010 U.S. Census. The median household income is $43,737.
In 1970, the Del Norte County Board of Supervisors approved the establishment of a Community Services District (CSD), which oversees the community’s public water system. The system provides drinking water to 546 residents in the Smith River community and adjacent neighborhoods along Highway 101. The population, however, is likely to grow in the coming years as a result of planned residential development, an expanding tourism industry and the Smith River Rancheria expansion.
For these reasons, in 2017, CSD members considered raising water rates. But to do so, they would need public support and to achieve that, a rate study would be necessary. The CSD staff sought RCAC’s technical help with this, including analyzing the community’s infrastructure life expectancy, preparing a five-year budget to support the rate increase requirements, and preparing for a public hearing.
In early 2018, Smith River’s CSD members passed and later implemented a new water rate structure and new water rates. According to Kitty Demry, CSD Board Secretary, “Having RCAC provide the technical support with a polished rate model versus the way the last rate increase in 2005 was done, in house with our own survey and rate preparation, we were able to articulate how we created a budget with a rate increase in compliance with the law.” Demry also notes that after sending out 929 notices to the public hearing, the CSD received no protest letters in response to the rate increase.
“We attribute that to a solid and complete analytical process and a reasonable rate model,” said Demry, “which will allow us to meet our capital improvement goals without shocking our customers financially.”
As well, the community’s success has helped neighboring communities facing similar challenges. Three other Del Norte CSDs – Big Rock, Gasquet and Klamath – have requested RCAC’s technical assistance in conducting rate studies. In working with these four communities, RCAC has now completed rate studies for all public water systems in Del Norte County serving under 10,000 people.
