The city of Sacramento is proposing raising water and sewer service charges for the first time in eight years.
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The costs of operating city water and wastewater systems has risen significantly due to inflation, aging infrastructure and a $2.2 billion in deferred maintenance projects, according to the city’s Department of Utilities. Without revenue adjustments, the city could face increased emergency repair costs or public health risks.
“We have a lot of catch up on expenditures just to keep the lights on,” Director of Utilities Dalia Fadl said.
In 2026, the water budget’s expenses exceeded revenue by $30 million, according to previous Bee reporting. While the city auditor recommended a revenue increase of 82% and 186% for water and sewer respectively, the Department of Utilities determined that this rate increase would be too burdensome to residents.
Exact rate increases will be determined once the city finalizes a rate study performed by an independent consulting firm, which will be published on the city’s website in the coming weeks. If approved, new rates would not take effect until July 2027 and would increase incrementally through 2031.
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Property owners receiving water and wastewater services from the city can expect to receive a notice in August. The city will hold a public hearing on the proposed rates on Dec. 2.
The public has a chance to oppose these rate increases — property owners can submit their protests to the rate changes in writing. If more than 50% of the property owners affected by the rate changes protest, then the city has to start the process over, according to Fadl.
“If this doesn’t pass, it puts our water quality and ability to address the changes we need to make as well as our infrastructure needs that are over $2 billion in jeopardy,” Councilmember Lisa Kaplan said.
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