Watch CBS News

Pleasanton small businesses worried about huge proposed water rate increase

Pleasanton City Council to vote on proposal that would increase water rates through 2026
Pleasanton City Council to vote on proposal that would increase water rates through 2026 03:04

PLEASANTON, Calif. — The Pleasanton City Council is set to vote on a plan that would raise water rates in the East Bay city by 30% starting Nov. 1.

The plan also includes a second 20% rate hike in January 2025, followed by a final 12% raise a year later in 2026. 

It aims to address various water supply and quality concerns in the city, but small business owners and their employees are bracing for the potential impact of the proposed increase in water rates.

Kylia Van Horn, the general manager at Inklings Coffee and Tea, said she's worried about the potential consequences for her business.

"It's saddening. I understand the reality that could happen. But it's difficult to process, because we are a coffee shop and we literally run on water," said Van Horn.

Inklings Coffee and Tea, located in downtown Pleasanton, is just one of the businesses that could be affected by the proposed rate hike.

However, City Manager Gerry Beaudin emphasizes the importance of water supply and quality to the community, stating, "Recognizing that water supply and quality are of primary importance to the community, the City is proposing bold action to ensure the continued delivery of safe, reliable drinking water by immediately funding critical water system improvements."

The average single-family residential customer could see an increase of about $33 every other month during the first year, but for businesses like Inklings Coffee and Tea, the impact could be even greater.

"We don't want it to impact the number of customers coming in, so we'll do our best to keep prices down, but with that reality, it does impact our shop flow," explained Van Horn.

The City Council is set to make a decision on the proposed rate increase Tuesday. If approved, a rate-setting process will begin including public notices and a public hearing on Sept. 19 to inform community members about the new rates and the projects that will be funded. 

Despite the uncertainty, Van Horn remains hopeful that the increase will not come to pass.

"I don't want it to happen. I pray it doesn't happen because we are a small business, and things like that impact small businesses," said Van Horn.

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.