Title
Hold a public hearing and consider an ordinance amending the Code of Ordinances Chapter 30, Water, Sewers and Sewage Disposal, to amend residential and commercial water rates and residential sewer rates.
Body
DATE: September 1, 2026
TO: Kent Calge, Interim City Manager
FROM: Judith Tangalin, Executive Director of Finance
SUBJECT: Water and Sewer Ordinance Rate Amendments
BACKGROUND AND FINDINGS:
On July 7, 2020, City Council received the results of the 2020 Water and Sewer Rate Study. The study found that the City’s water revenues were insufficient to fully fund the projected expenses over the next five years. City Council deferred a rate adjustment at the time due to the pandemic.
A recent five-year Water and Sewer rate analysis recommended a phased approach to adjusting commercial water base rates by meter size to align with American Water Works Association (AWWA) recommendations. The first phase was included in the FY 2023 Budget, followed by additional adjustments in the FY 2024, FY 2025, and FY 2026 Budgets. The proposed FY 2027 Budget includes the fifth and final phase of the commercial water base-rate adjustments, as follows:
Commercial Monthly Water Base Rates by Water Meter Size
Water Meter Size
Current Rate
Proposed Rate
5/8 and 3/4 inches
$15.52
$15.52
1 inch
$21.50
$23.37
1-1/2 inch
$40.19
$46.73
2 inch
$62.62
$74.77
3 inch
$114.96
$140.20
4 inch
$189.74
$233.67
6 inch
$376.67
$467.33
8 inch
$600.99
$747.73
The proposed FY 2027 Budget also includes a 5% increase to residential water base rates and increases to the three-tier residential water volumetric rates, as follows:
Residential Monthly Water Base and Volumetric Rates
Rate Category
Current Rate
Proposed Rate
% Increase
5/8 and 3/4 inches
$15.54
$16.32
5%
1 inch
$16.99
$17.84
5%
1-1/2 inch
$20.63
$21.66
5%
2 inch
$24.98
$26.23
5%
3 inch
$35.15
$36.91
5%
4 inch
$49.70
$52.19
...
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