Finance committee backs City of Salinas sewer payment assistance program at 15% for year one

The Salinas Finance Committee on Sept. 9 voted unanimously to recommend that the City Council adopt a resolution establishing a residential sewer payment assistance program and setting the program at 15% of an annual sewer bill for year one.

City staff presented the proposal as a targeted, short-term assistance program tied to the PG&E CARE eligibility list and the city’s upcoming sewer rate changes. "What we're proposing is 20%," the presenting staff member, Adriana (staff member), said during the presentation while explaining the team's analysis of other jurisdictions; however, the committee voted to recommend a 15% level for the first year.

Committee members and staff said the program is meant to balance breadth of assistance with available funds. Adriana told the committee that staff reviewed other cities and that assistance programs typically ranged from 15% to 50% of a sewer bill, and that the team's original recommendation had been 20% because it would reach an estimated 3,822 customers. "We can either provide a lot of assistance to very few people or some assistance to more people," Adriana said while describing the tradeoffs.

Celine Andrews, finance director, told the committee staff expects to administer the program in-house and said a quick implementation timeline is feasible: "So the it would be November," Andrews said when asked how long it would take to begin processing applications.

Under the plan discussed, eligibility would be tied to enrollment in the PG&E CARE program; applicants would submit a city application and proof of CARE participation. Staff also said households already receiving the city's affordable income and rent limits utility voucher would not be eligible because those households already receive financial assistance that includes sewer charges.

Committee members pressed staff on how program size interacts with the percentage chosen. One member noted that using a lower percentage would reach more households and asked why staff recommended 20% originally; Adriana replied the recommendation aimed to provide a meaningful amount to more people within the program budget. Staff presented alternative estimates: at the recommended $16.35 annual-assistance rate the 20% level was estimated to serve about 3,822 customers; at a lower 15% level staff estimated serving roughly 5,096 customers. Staff cautioned these figures were estimates and said the city would refine participation figures after the first year.

The motion adopted by the committee instructed staff to recommend that the City Council adopt a resolution establishing the City of Salinas residential sewer payment assistance program at 15% for the first year, with the expectation the program could be adjusted in future years based on demand and budgetary constraints. Committee discussion also emphasized protecting bondholders and avoiding use of the general fund to backfill sewer revenues.

In addition to the sewer assistance item, the committee approved the consent agenda, including minutes of the Aug. 12, 2025 meeting (ID 25-379), by a unanimous voice vote during the Sept. 9 meeting.

Votes at a glance - Approve minutes, ID 25-379 (Aug. 12, 2025): Passed, voice vote 3-0 (Council member de Arrigo: Aye; Council member de la Rosa: Aye; Mayor Donahue: Aye). - Recommend City Council adopt resolution establishing the City of Salinas residential sewer payment assistance program at 15% for year one: Passed, voice vote 3-0 (Council member de Arrigo: Aye; Council member de la Rosa: Aye; Mayor Donahue: Aye).

What happens next The committee's recommendation goes to the full City Council for consideration. Staff told the committee it plans to open applications and begin administering the program in November if the council moves forward. Staff also said the program parameters, including the assistance percentage and the number of households served, would be reviewed after the first year and adjusted as needed.