Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Utilities Rates topic
No spam. Unsubscribe anytime.
Salinas adopts sanitary sewer rate increase, approves 15% bill-assistance program for qualifying low-income households
Summary
The council adopted a multi-year sanitary sewer rate schedule effective Oct. 1 and approved a city-funded residential sewer payment assistance program that will provide a 15% annual credit to qualifying households (PG&E CARE program participants and those responsible for sewer payment). The council received 63 written protests, far below the 50%+1
The Salinas City Council adopted a revised sanitary sewer rate schedule on Sept. 23 and approved a related residential sewer bill-assistance program intended to partially mitigate the new rates for low-income households.
Rate decision: City staff and its rate consultant presented a study of the sanitary sewer system’s revenue needs, capital program and reserves and concluded that rate increases were necessary to bring the sewer fund into compliance with debt covenants and to finance operations and capital improvements. Notices were mailed to more than 34,500 property owners and rate payers; the city received 63 written protests as of the public hearing, well below the number required to stop the increase (a majority protest would have required 15,592 protests). The new rates take effect Oct. 1.
Financial context and risks: Staff and the finance director told the council that the sewer fund’s downgrade to a negative outlook and ongoing underfunding posed a risk to the city’s credit and that significant underperformance could trigger debt consequences. The council heard from staff that a failure to adopt rates could lead to higher borrowing costs or other fiscal stress.
Payment assistance program: To help low-income residents absorb the change, the council approved a residential sewer payment assistance program that provides a 15% annual benefit based on the new sewer rates. The program is designed to prioritize reach (the council-assigned budget for the program is $150,000 for the fiscal year) and requires applicants to participate in the state CARE (or similar low-income) energy assistance program and to be the account holder or otherwise responsible for payment.
Program details and outreach: The city manager and staff described the program as application-based and subject to funding availability; funds will be distributed until the $150,000 allocation is exhausted. Applications will be accepted and processed through the city; staff committed to outreach through community partners and city counters to reach seniors and limited-English households. Councilmembers requested follow-up work to explore a flow-based rate structure and to coordinate with Monterey One Water on broader billing methodology.
Public comment and concerns: Speakers raised fairness concerns about fixed per-household billing versus actual flow-based usage and urged more robust outreach, especially to seniors and renters who may lack internet access. Several commenters suggested a smaller upfront rate increase or phased options; others supported the city’s action to stabilize sewer system finances.
Vote: Council approved the adopted rate schedule and the payment assistance program in separate but related actions (votes recorded in the official minutes).
