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Hayward council adopts 6% water and recycled-water rate increases for 2025–26 and 2026–27
Summary
The council adopted a two-year schedule of 6% increases in fixed service and consumption charges for water and recycled water and 10% increases to facilities fees, citing rising wholesale costs from the San Francisco Public Utilities Commission and the need to replenish reserves and fund infrastructure replacement.
The Hayward City Council on June 17 approved adjustments to water and recycled-water rates and to facilities fees, adopting a two-year plan that raises fixed service and consumption charges by 6% in each of fiscal 2026 and fiscal 2027 and raises water and recycled-water facilities fees by 10% each year.
Trang Nguyen, management analyst with Public Works and Utilities, told the council 100% of Hayward's water supply comes from the San Francisco Public Utilities Commission (SFPUC) and that recent SFPUC increases are a primary driver of the city's proposed adjustments. Nguyen said Hayward used reserves in recent years to lessen the immediate impact on customers and that the recommended 6% increases will help replenish some reserves and fund capital replacement such as the goal to replace two miles of pipeline annually.
Under the adopted plan, the typical bi-monthly fixed fee for a 5/8-inch meter will rise by about $1.17 per month in the first year and another $1.24 per month in the second year. A single-family customer using 12 CCF per billing period (about 150 gallons per day) would see an estimated increase of about $4.09 per month in the first year and $4.34 in the second year, Nguyen said. The council upheld an existing low-income discount (65% discount on the service charge for qualifying customers) and staff provided low-income applications to protestors who cited hardship.
Staff also proposed to convert recycled-water pricing from a single tier to a two-tier structure and to reduce the discount on recycled water over time so it remains about 25% below comparable drinking-water irrigation rates. Facilities fees for water and recycled-water connections were proposed to rise 10% in each of the next two years; staff noted Hayward's proposed facilities fees remain lower than many neighboring agencies.
Public outreach included mailed notices to roughly 45,000 property owners and bill payers and two newspaper publications; staff reported receiving 20 protest letters related to water rates, 19 of them timely, which did not meet the Proposition 218 threshold that would bar the proposed rates. The council approved the rate and fee resolutions by unanimous roll call; the new rates take effect Oct. 1, 2025 and Oct. 1, 2026 and facilities fees on Sept. 1, 2025 and Sept. 1, 2026.
Ending: Council members asked staff to continue outreach on low-income assistance, provide clearer comparisons with neighboring agencies and to monitor reserve levels and capital needs as the rates take effect.
