About the Report & Why It Matters

The City engaged a professional rate study to keep water and wastewater systems reliable and financially stable. The study presents a five-year financial plan, cost-of-service analysis, and resulting rates for implementation beginning January 1, 2026. It explains assumptions, methods, and recommendations for both utilities, including capital needs and bill impacts. Reading the full report helps customers understand what is changing, why adjustments are needed, and how costs are allocated fairly.

• Goals include maintaining financial stability, adhering to cost-of-service principles, and funding critical infrastructure (CIP) through FY 2030.
• The report outlines the existing and proposed rate structures, five-year rates, and customer bill impacts for different user classes.

How the Information Was Gathered (Methodology)

Rates were developed using industry standards and a legally compliant cost-of-service framework:

• AWWA M1 Manual (Base–Extra Capacity method) for water: costs are split into base (average demand), extra-capacity (peaking), customer, and fire-protection components; costs are then distributed to customer classes in proportion to system use. Test year for rate development is FY 2026.
• WEF Manual of Practice No. 27 for wastewater: charges align with recognized industry guidance for financing and user charges.
• Proposition 218 compliance: legal framework ensures charges do not exceed the cost to serve, revenues are used only for the utility, and costs are proportionally allocated.

Key Dates & High-Level Info

Protest & Objection (Proposition 218) — How to Participate

Public Hearing & Deadline: The date, time, and location of the Proposition 218 public hearing appear in the mailed notice and City postings. To be counted, a written protest must be received before the close of the public hearing for the affected parcel/account.

• How to file a protest: Submit a written protest for the parcel (typically includes service address/APN, printed name, signature). One protest per parcel is counted. Delivery options (mail, in-person, or at the hearing) and the address will be listed in the mailed notice.
• Majority protest rule: If a majority of affected parcels submit valid written protests, the proposed rates cannot be adopted.
• Written “Objection” to preserve legal challenge rights: State law requires submitting a written Objection in response to the notice to later bring a judicial action alleging non-compliance with Prop 218. This requirement is separate from the majority protest process.
• 120-day statute of limitations: If rates are adopted, court challenges must be filed within 120 days of Council adoption.

For exact instructions, formatting, and where to send protests/objections, please refer to your mailed notice and City web posting for the hearing. (These requirements are summarized from the report’s legal framework discussion.)

Rate Structures (Details)

Tools & Documents

Estimate your bill or review the full methodology and derivations: