Salinas to mail Proposition 218 notices after council approves sewer rate notice; proposal would raise monthly base from $5.45 to $16.35

The Salinas City Council on July 1 authorized staff to distribute Proposition 218 public‑hearing notices for a proposed sanitary sewer rate increase, setting in motion a public outreach and protest period that ends Aug. 25 and a public hearing set for Sept. 23.

Consultants and city staff told the council the sewer system has an operating shortfall, deferred capital needs and system failures that have been addressed as emergencies because rates have not changed since 2012. Andrea Reese, the rate study consultant, said the updated study recommends increasing the monthly sewer charge for a single equivalent dwelling unit (EDU) from $5.45 to $16.35 for FY 2025–26, with an annual 2% escalator for five years and a reexamination by council after that period.

"The study recommends a rate increase...to $16.35 per month for a 1 EDU," Reese told the council. The rate model assumes roughly 61,700 EDUs and includes operating expenses and capital improvements. Staff presented a 10‑year capital program with a total estimated cost near $115 million and said the sewer fund is currently projected to be short roughly $335,000 for the current fiscal year.

City staff also explained that Monterey One Water and other data sources identified a category of "special users" whose sewer charges must be flow‑based rather than flat rates; the updated rate schedule adds a special‑user, flow‑based tier for those accounts. Staff said notices will include a revised rate schedule and a plain‑language informational flyer in English and Spanish on the city website; outreach will include community events and a July 31 informational meeting at the Breadbox. Staff also said they will return with options for a rate assistance program; the FY 2025 budget includes $150,000 for assistance.

City Attorney staff and the finance director described the protest and objection processes. If a majority of affected parcel owners or ratepayers submit valid protests according to Proposition 218, state law prohibits the city from adopting the proposed rate at that time. The council was also briefed on AB 2257 procedures for written objections that require a written staff response when objections claim the proposed rate is inconsistent with Proposition 218.

Public commenters at the meeting voiced a mix of views: some urged the council to place the question on the ballot rather than act administratively, others said the increase felt abrupt for residents already facing rising costs and asked for expanded translation and outreach. The council voted unanimously to direct staff to distribute notices: Barajas Yes; Barrera Yes; Dirigo Yes; Dela Rosa Yes; Salazar Yes; Sandoval Yes; Mayor Dennis Donahue Yes.

If the council adopts the new rates after the public hearing, staff said the new charges would take effect Oct. 1. The council asked staff to return with a formal assistance program proposal and to carry out targeted multilingual outreach during the protest period.