TO: Mayor and City Councilmembers
FROM: Robin Kampmann, City Engineer
SUBJECT:
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Proposition 218 Final Water and Sewer Rate Study
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RECOMMENDED COUNCIL ACTION:
recommendation
Upon conclusion of the presentation of the proposed rates Staff recommends that the City Council:
1) Set the date of August 20, 2026, for mailing the public notice for Proposition 218; and
2) Authorize LT Municipal Consultants (LTMC) to conduct the public notification process.
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SUMMARY:
As directed by the City Council on July 21, 2026, Staff and LTMC have moved forward with finalizing the rate study using Scenario 3, a phased-in option, for the Water rate increase and Scenario 3, a cash funded Low CIP option, for the Sewer rate increases. This rate study proposes a new 5-year plan with new water and sewer rates going into effect each January 1st from 2027 to 2031.
The next steps in the Proposition 218 process for adjusting the water and sewer rates are for the City Council to set the Proposition 218 hearing date, mail the Proposition 218 notices to all property owners and the users, conduct a public outreach meeting and hold a Proposition 218 hearing at least 45 days after the notices have been mailed.
PREVIOUS COUNCIL ACTION:
The City Council approved Ordinance 832 on February 1, 1997, establishing the sewer rates.
On May 20, 2008 the City Council approved an incremental increase of 5% to water consumption rates, beginning July 15, 2008.
On June 2, 2009 the City Council postponed the increases to the water rates.
On August 7, 2010 the City Council directed Staff to postpone the CPI rate increase based on December 2008 and 2009 until FY2011/12, at which time staff will present the FY2011/12 CPI rate increase to City Council.
On April 17, 2012 the City Council Conducted a public hearing and directed staff to prepare the CPI rate increase for FY2012/13.
On July 21, 2026 the City Council directed staff to move forward with Scenario 3, a phased-in optio...
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