San Luis Obispo council authorizes Prop 218 notice to consider 2025–27 water, sewer rate increases

The San Luis Obispo City Council voted 5-0 to authorize staff to mail Proposition 218 notices that begin the public protest process for proposed water and sewer rate adjustments for fiscal years 2025–26 and 2026–27.

Julie Ridgeway, utilities business manager, introduced the proposal and said, “So for water, our proposed rate adjustments are 5.5% annual increases over the next 2 fiscal years.” She said the sewer proposal would be higher in the near term — 6.5% for the next two fiscal years — largely because Cal Poly will begin treating most of its campus wastewater on site, which the city estimates will reduce sewer fund revenues by more than $900,000 a year starting in fiscal 2026.

The council’s action authorizes the release and mailing of Proposition 218 notices and sets public hearings for June 17, 2025. Ridgeway said the city will mail 28,565 notices to parcel owners and account holders; she told council that there are 17,161 parcels in the city and that a majority protest would require 8,580 valid parcel protests plus one.

Why it matters: Utilities staff said the proposed increases are intended to keep enterprise funds self‑sustaining while paying for planned capital improvements, repairs from winter 2023 storm damage (including the Nacimiento pipeline and road repairs), regulatory compliance costs and inflation. Ridgeway said the city has pursued grants and alternative funding to reduce rate…