RANCHO MURIETA, CA (MPG) - The Rancho Murieta Community Services District Board approved a 2026-27 budget, capital improvement program and a series of water, sewer and solid waste rate increases on June 17 despite objections from one resident to the proposed rate hikes and separate questions from others about the district’s long-term water planning priorities.

The budget raises the average customer bill by 31.5%. The board also approved a Capital Improvement Program that includes $500,000 earmarked for future work on the Urban Water Management Plan. The budget, capital improvement program and related rate ordinance were approved on a unanimous 3-0 vote.

The increases moved forward after only 25 written protests were submitted during the Proposition 218 process, far short of the majority needed to block them.

President John Merchant and Director Tim Maybee were absent, with Vice President Linda Butler presiding.

Resident Questions Rate Increases

Resident Ed Hamzawi said he was surprised more residents had not formally objected to the increases.

“I expected a larger outcry from the community than what you got,” he said.

Hamzawi, who said he spent much of his career working for a public utility, presented comparisons showing Rancho Murieta customers already pay substantially more for water and wastewater service than customers served by other Sacramento-area providers.

“I don’t know of any utility in the Sacramento area that charges rates as high as Rancho Murieta,” he said.

While acknowledging that the district faces legitimate infrastructure and operational needs and has reported developing a new budget to make up for inadequate rate increases over time, he questioned whether such large increases should be implemented all at once.

“These are very significant increases,” Hamzawi said, suggesting the district consider phasing them in over a longer period and seek other funding opportunities.

Finance Director Cecilia Min said the district plans to conduct a comprehensive rate study during the coming year and that completing long-delayed audits should improve its ability to pursue grants and other outside funding opportunities.

She also noted that many utilities throughout California have adopted significant rate increases in recent years due to rising costs, regulatory requirements and aging infrastructure.

Following the discussion, the board unanimously approved the ordinance increasing water, sewer and solid waste service charges, as well as storm drainage and security assessments.

During director comments, Butler thanked residents for their patience and support during the difficult budget process.

“I want to thank the community for your support, your understanding and your acceptance of this difficult situation, and the need for such dramatic increases,” Butler said. “It’s not easy.”

Butler also thanked Min for her work preparing the budget and praised district staff for their efforts to educate residents about the district’s financial challenges and budget process.

Capital Improvement Plan Draws Questions

While Hamzawi focused on the impact of the rate increases, other speakers questioned the district’s capital spending priorities and the absence of funding for several water-supply projects.

Bob Keil, developer of the Residences of Murieta Hills subdivision, questioned why the CIP includes $500,000 for an Urban Water Management Plan while allocating no funding for preliminary engineering for a third emergency water storage tank, groundwater test wells or Lake Clementia permitting efforts.

Keil said his research indicated Urban Water Management Plans typically cost substantially less than budgeted.

Jenco said the $500,000 figure was based on a 2025 estimate from Water Systems Consulting. The district remains below the state’s 3,000 service connections threshold that triggers the Urban Water Management Plan requirement.

Min responded that the board did not ask her to include funding for third-tank design work or other water augmentation projects in the CIP. She added that the CIP and budget can be amended later if the board decides to move forward with those projects.

Jeff Pearson of Rancho Murieta Properties echoed Keil’s concerns and argued that the district continues to spend money studying water issues while failing to advance projects that could increase available supplies.

Pearson noted that more than $2.7 million remains in a district fund dedicated to future water projects and questioned why none of that money was earmarked for additional well work or other water augmentation efforts.

Water Vision Working Group Debate Continues

The Water Vision Working Group has been the subject of growing debate in recent months, with directors and group members debating its role and future during discussions at the May 27 board meeting and the June 10 Improvements Committee meeting.

Former CSD Board President Steve Booth criticized the working group in unusually blunt terms, arguing that its primary purpose is to support future development.

“The developer slant of that group is obvious,” Booth said. “Any claim to the contrary is simply incredulous.”

Booth specifically cited the participation of Director Randy Jenco, Water Vision Working Group member Tom Shewchuk and Rancho Murieta Properties representative Jeff Pearson, contending the group’s efforts are focused on securing additional water supplies for future growth.

“Let’s just call it what it is,” Booth said. “It’s a group attempting to find more water to support more development.”

Shewchuk rejected Booth’s characterization and instead asked Butler and Merchant to publicly discuss the group’s charter and accomplishments following recent reviews at the Improvements Committee.

Butler declined, saying public comments were not the appropriate forum for that discussion.

Director Bill Gere has suggested folding the group’s work into the Improvements Committee, while its members argue the working group has helped move complex water issues forward more quickly.

Pearson defended the group’s efforts and argued the district has spent decades acknowledging the need for additional water supplies without making meaningful progress.

“For more than three decades, this district has been specifically obligated to increase the raw water supply available for buildout and the community,” Pearson said.

Citing agreements dating back to 1986, Pearson said the district has repeatedly committed to finding additional water supplies and developing a second water source.

He said agreements in 1986, 1991, 1995, 2012 and 2016 all contemplated additional water supplies, yet “the net result of this vitally important raw water available to the community is zero.”

Pearson said that history is one reason he supports the Water Vision Working Group’s efforts to explore groundwater development, Lake Clementia permitting and other options.

He expressed frustration that discussions continue to focus on obstacles rather than solutions.

“All we hear is what we can’t do,” Pearson said.

Pearson said he does not intend to drop the issue.

“I’m not going away,” he told the board. “Every chance I get, I’m going to show you how we can do this vs. why we can’t.”

Other Business

In other business, the board approved a contract for the required update to the Cosumnes River Watershed Sanitary Survey.

Interim General Manager Amelia Wilder reported that four board seats will be up for election in November and encouraged interested residents to consider running. She also said interviews for the district’s permanent general manager position are expected to begin in July, with hopes of filling the position later this summer.

Operations Director Travis Bohannon reported that the district completed its annual diversion season from the Cosumnes River on May 31, leaving the Clementia, Chesbro and Calero Reservoirs full heading into summer.

Bohannon also reported that the district’s 2025 Consumer Confidence Report has been completed and posted online, noting there were no major drinking water violations during the year.

In addition, he said the State Water Resources Control Board recently adopted new maximum contaminant levels for manganese, a naturally occurring mineral that can accumulate in Rancho Murieta reservoirs during the summer months. Bohannon said the district remains within the new standards and already tests for manganese monthly, but will now be required to report treated-water manganese levels quarterly.