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Salinas council directs Prop. 218 notices for proposed sewer rate increase to $16.35 a month
Summary
City staff updated a sewer rate study and the council directed staff to mail Proposition 218 notices proposing an increase in the monthly sewer rate for a single-family equivalent from $5.45 to $16.35, with outreach and a protest period running through Aug. 25 and a Sept. 23 public hearing scheduled.
City staff presented an updated sewer rate study on July 1 and the Salinas City Council approved a resolution directing staff to distribute Proposition 218 public hearing notices for proposed sewer rate increases.
Adriana Robles, city engineer, described the sanitary system and the capital program outlined in the city's 2023 sewer master plan. She said the sewer fund has an operating shortfall and the city has experienced system failures that were handled as emergency repairs. Robles said the fund has been under-resourced after the residential sewer service rate remained at $5.45 per month per equivalent dwelling unit (EDU) since 2012.
Andrea Rees, the consultant who updated the sewer-rate study, told the council the updated model allocates operation, maintenance and capital costs across approximately 61,700 EDUs in the service area and includes a recommended operating reserve. The study recommends a first-year increase to $16.35 per month per EDU for FY 2025–26 with a 2% annual escalator for five years, and that the council revisit rates at the end of that period. Rees said the 10-year capital improvement program totals roughly $115 million and that the proposed rates are intended to support both operations and long-range capital needs.
The rate study also added a separate category for “special users” after discussions with Monterey One Water; those users are billed on a flow basis and were modeled differently than flat-rate customers. City staff emphasized the distinction in outreach materials.
Council members asked about outreach and customer-assistance options. Staff said the city has budgeted $150,000 for an assistance program and will draft options for council review in August and September. The outreach plan includes a mailed Proposition 218 notice (delivery anticipated July 11), bilingual informational flyers, a July 31 community meeting focused on sewer infrastructure, social media, and attendance at community events. The formal protest period ends Aug. 25; a majority protest would legally prohibit the council from adopting rates at the public hearing. The council scheduled the public hearing for Sept. 23, 2025; if the rates are adopted then they would take effect Oct. 1, 2025.
At the July 1 meeting the council voted to proceed with the Proposition 218 mailing and public-notice schedule. Public comment included objections to the size and timing of the increase, requests for clear bilingual outreach and calls for a phased approach so households have more time to absorb higher utility charges.
Council direction at the meeting included approving the public-notice distribution and returning in late summer with draft assistance-program options for council consideration ahead of the public hearing.
