DIABLO GRANDE, Calif. — A quiet resort community tucked into the sunbaked hills of Stanislaus County west of Patterson is facing a harsh ultimatum: approve a staggering increase in water rates or risk having the taps run dry.
Diablo Grande, once pitched as a golf course paradise with vineyards and panoramic hillside views, is now at a breaking point. The Western Hills Water District said it needs to raise rates from $145 to $569 a month, a nearly 300% jump, to keep the water flowing.
“We’re on a shoestring here,” said district president Mark Kovich. “I can barely keep this district running.”
Kovich delivered the difficult news to a packed clubhouse earlier this month. Unless homeowners vote to approve the hike, the Kern County Water Agency has warned it will cut off water service by June 30.
Homeowners like Lydia Stewart, a retired nurse who moved to Diablo Grande in 2018, say they feel blindsided.
“We only have a certain income. That's why we picked up here, because we could afford just that,” she said. “We didn’t expect this big lump sum to be dumped on us.”
Stewart and her husband live on Social Security. She said they poured their life savings into their dream home.
The crisis stems from years of unpaid debt. The Kern County Water Agency says Western Hills owes more than $13 million and hasn’t made a payment since 2019. Initially, developers had subsidized water costs to attract buyers. But when the housing project stalled and the developers folded, the bills went unpaid and the debt mounted.
Katie Whitney and her husband moved to Diablo Grande in 2012 to retire.
“The dream was to move up here, someday retire, and play golf every day,” she said. Now, she says, they feel like victims. “We've paid our bill… How did we get here? How in the world did we get here?”
Of the 5,000 homes originally promised, only about 600 were ever built. The golf courses have since closed, and the grass has withered under the California sun.
Doug Moore, who bought a home overlooking the 13th hole in 2011, says he saw the trouble coming.
“It hit them by surprise. I wasn’t surprised. I’ve been following this for years,” he said.
He’s now trying to help other homeowners understand how things unraveled.
In 2020, residents took over management of the water district, along with its massive debt. With just days before the deadline, district leaders are asking for state and local support.
But Stanislaus County officials say their hands are tied.
“It is an issue that must be handled here locally, with a local district,” said County Counsel Tom Boze. “I know that's a tough answer. That’s a tough message.”
Debbie Antigua, who leads a community action group, says outreach to state agencies has gone nowhere.
“They just (say) we're forwarding you on to another agency,” she said. “OK, which one? Because nobody's coming.”
ABC10 also contacted the Department of Water Resources and the Governor’s Office. Both said the situation is a local matter.
“It’s very hard to believe that there isn’t an entity that can come forward and help us find a solution,” said Whitney.
Stewart echoed the frustration: “Just work with us and find a solution is what we’re asking, and they won’t even talk to us.”
For now, the water is still running. But for Diablo Grande, the question remains: at what cost and for how long?
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