PLACENTIA – The Yorba Linda Water District board on Thursday held firm in maintaining a $25 monthly water-rate increase.

Nearly 300 people packed the board room and filled the lobby holding signs that read, “Do the right thing. Rescind the rates!”

More than 40 customers expressed their opposition to the increase that went into effect Oct. 1.

District officials say a rate increase is necessary because water conservation mandated by the state during the next year would result in a projected $9 million loss in revenue and district reserves would empty by 2018. The district serves most of Yorba Linda and parts of Placentia and Brea.

The meeting was called after the Yorba Linda Taxpayers Association collected more than 5,500 signatures in an effort to overturn the increase, which was approved by the board Sept. 17. The county Registrar of Voters certified that there was a sufficient number of signatures, which the Taxpayers Association said meant the district had to eliminate the increase or present the issue to voters.

But the board rejected the petition because, according to a staff recommendation, the referendum process is not allowed by the law that applies to the water rate resolution. Those laws are governed by California’s Proposition 218, which deals with local government finance.

“Yorba Linda taxpayers chose the wrong avenue,” Yorba Linda Water District President Ric Collett said.

Jeff Decker, the taxpayers association’s co-founder, said the fight isn’t over.

“We expected it,” Decker said of Thursday’s decision, adding the association will take the next legal steps. “They had a chance to act as leaders, and they acted like bureaucrats.”

Denise Salcido, a part-time college professor who has lived in Yorba Linda for five years, said she was charged the rate increase prior to the effective date of Oct. 1 and asked for an audit to look into the issue.

“We had to cut back, but I’m not seeing anything where you guys are asked to cut back,” Salcido said during a public comment period of the special meeting.

Others also asked the district to look at cutting costs.

“I do believe that we should have a fair, short-term increase,” Marshall Burke said. “You guys need to be transparent.”

Since the increase went into effect, the basic service charge increased to $41.57.

Contact the writer: 714-704-3709 or desalazar@ocregister.com