[{"_1":2,"_99":-5,"_100":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75,87],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},"mediaId",6592373,"mediaKeyId","2842612-1ba3ca48ae96d9cfd9a9e2427c38a6ad","parentId",2842612,"title","Committee backs recommendation to raise sewer rates, staff proposes 20% FY26 increase or 16% with extended amortization","audioSeconds",1747,"startMs",3838000,"endMs",5585000,"viewUrl","/Search/View?dp=1&key=2842612-1ba3ca48ae96d9cfd9a9e2427c38a6ad&start=3838&end=5585","thumbnailUrl","https://assets.pipeline.soar.com/2842612-1ba3ca48ae96d9cfd9a9e2427c38a6ad/thumbnail_3838000.jpg","articleUrl","/articles/6592373/Palo-Alto/Santa-Clara-County/California/Committee-backs-recommendation-to-raise-sewer-rates-staff-proposes-20-FY26-increase-or-16-with-extended-amortization","mediaUrl","https://secure.pipeline.soar.com/6592373-9c0677e9aa937d7e054fe46bcb12c5f0/orig.mp4?Expires=1771189184&Signature=Oi1qylp5aAZwMY1zD15x7osRRVTFVwsaCmwCfMifGtn9PKC40ic4uQ5X72C3XJAOO~SxKF7AnDLlm-r6wb1w19KC29xA77QwvUcpUKewKSAwzLClEHVUfSBPAuKGw7Nmd12~PpRDy~-t3PRxCcMy3g2riy0ytGi-jRHWTNYEKwY6AvqJ4mMXU436Wmy2IqtidFJub-6ZVCNOXwr~BfNa8VGycC4qc-kkBozeBdXKorKhNdfALu0b5mBCoJNot1CKNvd9tbr0XzyLEYGi6AQC6AtHyjxraGfWdhoeCC3g-wbov3dDuNSBh4tt8Ib6wYTdhlff9JXeXkVAgSYb5frPgg__&Key-Pair-Id=KUT5TJCACFTXG","author","City of Palo Alto","date","2025-04-02T04:20:32.937Z","article","City staff presented the wastewater financial forecast and rate-schedule recommendation, asking the Finance Committee to forward a resolution to the City Council approving the FY2026 wastewater collection utility financial forecast and amended rate schedules. Brad Eggleston, Director of Public Works, and other wastewater staff explained that the utility’s reserves are depleted and that the regional Silicon Valley Clean Water plant is undergoing major projects with increasing treatment costs; staff proposed a 20% rate increase for FY26 aimed at replenishing reserves and funding minor capital needs at the treatment plant.

Staff said if the outstanding authorized amount for minor capital at the treatment plant were recovered over 10 years (instead of the staff-preferred four years), the required FY26 increase would fall to about 16% (roughly $9/month) but that longer amortization increases the risk because the treatment plant could need those funds sooner. Staff noted the sewer utility had borrowed $3 million from the city fiber-optics fund last year to preserve near-term cash; that loan must be repaid in FY26 with interest.

Staff walked the committee through a cost/revenue chart showing how collection capital, collection operations, treatment minor capital and treatment operations contribute to the forecast. The 20% request reflects operating expense increases (largely labor), treatment cost increases, and the need to rebuild reserves after a period in which capital and operating pressures outpaced revenues. Staff also described deferred projects — including shifting a five-mile main replacement from 2026 to 2028 — as a partial offset to near-term rate pressure.

Communications manager Catherine Elvert said outreach will emphasize safety, regulatory compliance and the importance of treatment-plant investments. She reiterated the department’s view that Palo Alto’s wastewater bills remain competitive with neighboring agencies and that outreach will include direct mail, digital channels and public meetings.

Committee members asked for clarity on the allocation of treatment costs among partner agencies and whether the city’s share might change. Brad Eggleston said the long-range facilities plan update now underway includes a task to review allocation methods; staff said Palo Alto’s flow-based share has risen since COVID and the forecasts assume a roughly 38% allocation in upcoming years.

After follow-up questions, the committee unanimously voted to forward the staff recommendation for Council adoption (vote 2–0). Staff will prepare materials for Council consideration, and the committee asked for additional detail on options staff identified for amortization periods and the risks of the longer amortization approach.","mediaType","Video","parentTitle","Finance Committee Meeting - April 1, 2025","oneSentenceSummary","The Finance Committee voted unanimously to forward to the City Council a staff recommendation for FY2026 wastewater collection utility financial forecasts and amended rate schedules; staff proposed a 20% rate increase for FY26 to rebuild depleted reserves and cover rising treatment and operating costs, with a 10-year amortization alternative that would reduce FY26’s increase to about 16%.","taxTitle","Palo Alto, Santa Clara County, California","taxId",3867,"location","headline","","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6592370,"Finance committee seeks options to restore engine at Mitchell Park (Station 4) and phase in single-role ambulances",2696,5883000,8579000,"/Search/View?dp=1&key=2842612-1ba3ca48ae96d9cfd9a9e2427c38a6ad&start=5883&end=8579","https://assets.pipeline.soar.com/2842612-1ba3ca48ae96d9cfd9a9e2427c38a6ad/thumbnail_5883000.jpg","/articles/6592370/Palo-Alto/Santa-Clara-County/California/Finance-committee-seeks-options-to-restore-engine-at-Mitchell-Park-Station-4-and-phase-in-single-role-ambulances","https://secure.pipeline.soar.com/6592370-376fa52ab439d5f1bd4e35cb6ab4ba11/orig.mp4?Expires=1771189184&Signature=QiM~WBvKm3gR6nbnNOsuh1yUquVwYXRoy2ESNjdHpcKg-zKyaNXKymBRNqwHw927d6KITlMgWb4ZPLQJwhyr-w~o3aIgTgfAvd2OwdBsJQs-THjbqjYqPm3zxRQRH4htKfPLTBuNEMRaAf2ktohaoywJks5P3qpJvxDNge3EOUngXIWNlQAcc14zBIjQb6L~zIyoP9VHNr8Xp5EBRBMGCff~L2B8qMUHa6D5QAJ8wVSafbk4NDakfZq1d-qCYYQhY-mESp1PRXd-vdhPK6U00XWpyeMjTPf3PYoUwOqWaq3DFHChX7EFYxu30B3BjynOa5oKiAKEFtSJMl8N4T5hJw__&Key-Pair-Id=KUT5TJCACFTXG","The Finance Committee received an extensive presentation and public comment on options to expand Palo Alto Fire Department emergency response, focusing on restoring engine service at Mitchell Park (Fire Station 4) and improving ambulance availability. Chief Blackshire and fire staff reviewed three new staffing options (cross-staff engine/medic at Station 4; a 12-hour peak ambulance staffed with civilian single-role personnel; or a fully staffed engine at Station 4 plus a 12-hour peak ambulance) and reiterated that the department is running about 9,400 calls per year with a heavy and growing share of emergency medical transports.

Chief Blackshire and Deputy Chief Kevin McNally described how the department currently runs as a system (automatic vehicle location dispatching the closest unit) and why cross-staffing reduces availability for either an engine or an ambulance when simultaneous calls occur. Staff reviewed system performance metrics: in FY24 Palo Alto called Santa Clara County ambulances about 327 times; staff said the 90th percentile county ambulance response was roughly 29 minutes 53 seconds while Palo Alto ambulances’ 90th percentile was about 12 minutes 2 seconds. The department reiterated its 8-minute response standard (90th percentile) as a life-safety performance target.

Staff summarized implementation considerations and costs for the options. The single-role (civilian) ambulance program would require a new administrative structure, negotiations with labor, and coordination with CalPERS for benefit and classification issues; staff estimated full program setup could take 12–18 months. As a near-term path, staff offered using firefighter overtime to staff a 12-hour peak ambulance (a faster but less-preferred approach for labor and staffing wellness) while the city establishes a single-role division. Financial staff and analysts noted the order of magnitude for several options would be in the low single-digit millions annually; CFO Lauren Lai told the committee that the City’s General Fund long-range outlook has weakened since December and that new recurring costs must be weighed against ongoing revenue pressures.

Fire department finance staff also explained revenue offsets: (1) ambulance transport fees are billed to insurers; Medicare/Medicaid caps mean actual collections per transport are often well below a $3,000 charge, but commercial insurers typically cover billed amounts; (2) adding a peak ambulance would capture more transports (staff estimated captured-call revenue from county-transported calls would be roughly $70,000–$100,000 annually in staff analysis); and (3) a proposed first-responder fee (under review as part of a municipal fee study) could produce roughly $350,000–$400,000 annually if adopted. Staff stressed these revenues would partially offset but not fully cover the operating cost of new units.

Committee members also heard more than a dozen public speakers — including firefighters and local residents — strongly urging a staffed engine at Station 4 and quicker expansion of ambulance capacity. Labor representatives and the firefighters’ union urged that cross-staffing be minimized and that the department be returned to a more stable staffing model. The committee provided staff direction to return with a set of budget-ready scenarios showing (a) how to restore a dedicated engine at Station 4 (timing and cost), (b) phased options for single-role ambulance implementation (12-hour peak first, then additional single-role ambulances), (c) costs and timelines for each scenario, and (d) revenue offsets and risks (including CalPERS/pension impacts and interdependencies with other budget pressures). No formal committee vote was required for this item; staff will use the committee’s guidance while preparing the May budget transmittal and the City Council’s upcoming budget deliberations.","The Finance Committee continued a months-long discussion on expanding Palo Alto fire and ambulance services, directing staff to return with budget-ready scenarios to: restore a full engine at Station 4 (Mitchell Park) and phase in single-role civilian-staffed ambulances beginning with a 12-hour peak unit.",{"_33":88,"_35":36,"_37":38,"_39":89,"_41":90,"_43":91,"_45":92,"_47":93,"_49":94,"_51":95,"_53":96,"_55":56,"_57":58,"_59":97,"_61":62,"_63":64,"_65":98,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6592378,"Finance committee recommends 10% water rate increase, voters to receive Prop. 218 notice",2836,990000,3826000,"/Search/View?dp=1&key=2842612-1ba3ca48ae96d9cfd9a9e2427c38a6ad&start=990&end=3826","https://assets.pipeline.soar.com/2842612-1ba3ca48ae96d9cfd9a9e2427c38a6ad/thumbnail_990000.jpg","/articles/6592378/Palo-Alto/Santa-Clara-County/California/Finance-committee-recommends-10-water-rate-increase-voters-to-receive-Prop-218-notice","https://secure.pipeline.soar.com/6592378-6a43b3fb43b2bfca6cdc4450789e7e8d/orig.mp4?Expires=1771189184&Signature=d4fwPbv2MsMPfeApQjgncKRrP2U~3H2nBnWmi28hH2qEjOFPOMacMxdDJAm96AlNCS~zCz14TetxytYayOl1DT25zeTV~pkzpru1Hrri~ru2uujZNJ~3GLpEVH1HlCPnJD1CLri~FJF1D1kZ~eBNwb~52cbLhl73~ZHwKsgEA5GbrXupUm4OzH-ugUwrQUotZYInIAx88T6VtopBdj8ECTerkfQbOgXlN0ZguXNrUpJcblSE6kxFaBN~YxK0-JCooeIKGPCvj1IzdqpT1Zc4lnbCfB~LGa58vUtKYsX7Uzuj3rhKHwZTrp0MX8Z8EuUpLFoG1Pqg3BtXE9rVDH5E0g__&Key-Pair-Id=KUT5TJCACFTXG","Lisa Belier, senior resource planner in the City of Palo Alto Utilities Department, presented the utilities’ recommendation that the Finance Committee forward to the City Council a resolution adopting the FY2026 water utility financial forecast and amended rate schedules. Belier told the committee the recommendation includes a 10% overall rate increase for FY26 — roughly $11.40 per month for a typical residential customer — and described the factors driving the proposal: growing labor costs, drought-driven sales reductions and increases from the San Francisco Public Utilities Commission (SFPUC).

The proposal relies on reserve use and targeted capital deferrals to keep the FY26 increase at 10%. Belier told the committee staff modeled deferring about $4.6 million of capital projects in 2026 and $2.7 million in 2028 beyond the five-year forecast to reduce near-term upward pressure on rates. She said the city has drawn roughly $25 million of reserves over the last three years to stabilize rates while wholesale costs rose.

Belier explained how the 10% figure breaks down: the staff model shows a 17% projected distribution rate increase and a 2% commodity rate increase inside that overall projection. As an alternative to further rate increases in later years, staff presented the concept of issuing debt to finance two tank replacement/rehabilitation projects scheduled for 2029–2030; debt financing would lower the modeled increases in those years to about 7% but would add long-term debt service.

Matt Zuka, assistant director of utilities, and other staff answered technical questions about the risk of further deferring capital work, the life span of different pipe materials and the department’s use of CCTV and emerging AI tools for asset condition assessment (staff said AI tools currently look more promising for sewer CCTV than for pressurized water mains).

Catherine Elvert, the Utilities communications manager, outlined an outreach plan to explain the increase to residential customers and businesses, including Prop. 218 notices and a passing postcard about SFPUC charges planned for May. Elvert said staff will emphasize comparative bills that show Palo Alto near the middle of agencies that buy 100% SFPUC water, and will present programs that help customers reduce bills.

After questions from committee members, a motion to recommend adoption of the staff proposal was moved and seconded; the committee recorded a unanimous vote in favor (2–0) and will forward the recommendation to the full City Council for final action.

The committee’s discussion included repeated clarifications that staff are using reserves to cover a portion of FY26 costs and that the FY26 forecast rebuilds reserves over the subsequent five-year period. Committee members pressed staff on where outsourcing costs show in the budget detail and asked for a clearer split of contract services vs. salaries and benefits in the operations lines. Staff agreed to provide that breakout when preparing materials for the Council.

The Finance Committee also asked staff to return with additional detail on the debt-financing alternative for the two tank projects, the expected timing and lifespans for tank rehabilitations, and an updated rate impact table once the wholesale SFPUC rate decision is final.","The Palo Alto Finance Committee voted to recommend the City Council adopt a resolution approving the fiscal year 2026 water utility financial forecast and amended rate schedules, including a proposed 10% distribution increase (about $11.40/month for a residential customer) and use of reserves plus deferred capital to limit near-term hikes.","actionData","errors"]

Article not found

Committee backs recommendation to raise sewer rates, staff proposes 20% FY26 increase or 16% with extended amortization

Finance committee seeks options to restore engine at Mitchell Park (Station 4) and phase in single-role ambulances

Finance committee recommends 10% water rate increase, voters to receive Prop. 218 notice