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Salinas council adopts sewer rate increase and approves 15% sewer-bill assistance program
Summary
Facing a downgraded sewer fund outlook, the council approved a rate adjustment and a new customer assistance program. The rate adoption survived a protest period; council also approved a limited assistance program for low‑income households tied to CARE eligibility.
The Salinas City Council on Sept. 23 approved a sanitary sewer rate schedule intended to shore up a strained sewer fund and to meet reserve and capital needs, and approved a new sewer bill assistance program targeted at low‑income customers.
Background and why the increase
City staff and consultants reported that the sewer fund has been underfunded for years and that the city’s bond rating outlook had recently been downgraded to a negative watch because the fund was in breach risk of its rate covenant. Staff said the adjustment is necessary to fund operations, maintenance, capital improvements, and to restore reserves; failing to act could increase borrowing costs and raise the risk of lenders calling bonds.
Public notices and protest count
Pursuant to Proposition 218 and AB 2257 notice requirements, staff mailed more than 34,500 public hearing notices and provided the 45‑day public notice. Property owners and rate payers were invited to protest. Staff reported that as of the hearing the city clerk had received 63 written protests, below the 50%+1 threshold needed to prevent adoption. The city’s rate consultant and Monterey One Water staff explained that commercial customers are billed by Monterey One Water according to their EDUs (equivalent dwelling units) and that some nonresidential accounts show a lower per‑account charge than a single residential EDU because of how the system measures equivalency.
Council vote — rates adopted
The council adopted the sanitary sewer rate schedule for the 2025–2030 period contingent on no majority protest. The recorded council vote when called for adoption was: Barajas — yes; Barrera — yes; de Arrigo — yes; Dela Rosa — yes; Salazar — yes; Sandoval — no; Mayor Donahue — yes. The motion passed (6–1).
Customer assistance program
In the same hearing staff presented a proposed residential sewer payment assistance program designed to reach the largest number of low‑income households within the city budget allocation. The council approved a program that provides a 15% annual credit on the city portion of a residential sewer bill for qualifying households. Eligibility is limited to customers who already participate in the CARE program (a utility low‑income program) or those who appear on a city‑provided assistance list; the city budgeted $150,000 for the pilot year. The council voted 7–0 to adopt the assistance program.
Council and staff next steps
Staff will implement the new rates effective Oct. 1 and will publish outreach materials explaining eligibility and the application process for the assistance program. The city manager and finance director said the city will continue to engage with bond rating agencies and Monterey One Water, and the council directed staff to return with options to study a usage‑ or flow‑based rate structure and to coordinate with partner agencies on billing and equity measures.
Ending perspective
Council members and speakers voiced sympathy for low‑income residents encountering higher utility costs; the assistance program aims to limit immediate hardship while the rate increase raises revenue to stabilize long‑term sewer infrastructure and credit standing.
