Citizens still need to vote NO on Measure P.

The Davis City Council has acted to change the contested rate structure.

In an effort to reduce confusion and respond to citizen concerns on May 23 the Davis City Council unanimously voted to revise the current water rate structure and only consider rate models without a look back feature to previous years as a part of the methodology to determine rates. This is a commitment by the City Council to change the current water rates in a way that resolves the stated reasons for putting Measure P on the ballot. So going forward…

What is the process to change the rates if Measure P passes?

The Davis Water Rates Utility Commission will make recommendations to the City Council on a different rate structure that does not have a look back feature.  It will take an estimated 3- 4 months to put changed rates in place.

What is the process to change the rates if Measure P fails?

The Davis Water Rates Utility Commission will make recommendations to the City Council on a different rate structure that does not have a look back feature. It will take an estimated 3- 4 months to put changed rates in place.

If there is no difference in how the new rate structure will be determined, does it matter whether Measure P passes or fails?

It MATTERS!! Time is of the essence. After Davis voters approved the building of a new surface water treatment facility, Davis legally contracted with Woodland and created a partnership to build the facility.  Currently Davis does not have its financing in place to meet its obligations in that partnership.  Existing construction money runs out by October after which Davis will be unable to pay its share of the bills.

Even though the current rate structure will be changed, if Measure P is defeated it will remain in place during the change process and it is a structure that provides enough revenue for debt service for financing the construction.  This will allow Davis immediately after the election to seek low interest revenue service bonds at an A+ rating and/or even lower interest state revolving fund loans to finance Davis’ construction obligations. 

Unfortunately, if Measure P passes, during the change process water rates will revert to previous rates which cannot support any new debt service.  Davis will then have to seek out financing in the secondary junk bond market to assure financing is in place by October, likely incurring tens of millions of dollars in extra financing costs along with serious damage to Davis’ reputation as a reliable partner and a good place to do business. If Davis is unable to secure financing in time it will be unable to pay its bills and begin the first step towards default. (Read More Here)

 Don’t Gamble with Ratepayers’ Money!
Don't Gamble with Davis' Reputation as a Reliable Partner!

Don't Gamble with Ratepayers' Money 

Vote NO on Measure P!

Recent News

Vote no: Measure P presents big risks to joint water project

Special To the Enterprise: June 1, 2014  By Stephen Souza, Helen......

By the numbers: CBFR does provide fair water billing

Special to the Enterprise By John Whitehead Math anxiety, fear of rising water costs......

Endorsement: Measures will decide Davis’ future fiscal health and water stability

The Sacramento Bee Endorsements May 14, 2014 By the Editorial Board......

Our view: Vote no on Measure P

By The Davis Enterprise, Our View May 6, 2014 There’s a very real possibility that Measure P, which......

Understanding the new water rates without math

News Article in the Davis Enterprise, May 02, 2014 By Dave Ryan......

Vote No on P: Davis’ water rates are fair, set through open process

Op Ed to The Davis Enterprise,   April 27, 2014

Davis Mayor Urges No on Measure P

Transcript of video on Davis Media Access, April 11, 2014by Joe Krovoza, Mayor City of Davis Hello, I’m Joe Krovoza,......


-->