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Finance committee backs sanitary sewer rate study and schedule proposing $16.35 monthly rate for FY25-26
Summary
The committee voted to recommend approval of a 10-year sanitary sewer rate schedule that would set a residential equivalent dwelling unit rate at $16.35 per month in fiscal year 25-26, with 2% annual escalators thereafter; staff cited a current shortfall, capital needs and a Lake Street emergency.
The Salinas Finance Committee voted to recommend that city council approve the sanitary sewer rate study and the proposed 10-year rate schedule.
Andrea, a consultant with DTA, summarized the study and said the city currently projects a shortfall of about $400,000 for the fiscal year and has capital needs reflected in an updated sanitary sewer master plan. "We also have the annual capital outlay costs ... with a cumulative total of about a hundred and 15,000,000 over the 10 year study period," Andrea said during the presentation. The committee voted to recommend the study and schedule to council: Council member D'Arrigo, Council member De La Rosa and Mayor Donahue recorded aye votes.
Staff said the system includes more than 280 miles of gravity sewer pipes, 11 lift stations and serves the city's service area noted in the presentation. The consultants described the rate calculation method using equivalent dwelling units (EDUs) and said the study assumes approximately 60,000 EDUs for the city's service area; one EDU equals a single-family residence for rate purposes. The recommended scenario presented to the committee sets a residential rate at $16.35 per month in fiscal year 25-26 with a 2% escalator each year, reaching just under $20 per month by fiscal year 2034-35.
Financing assumptions include pay-as-you-go and bond sales; staff said the mix will depend on timing and the city's ability to access the bond market. Staff also noted an ongoing emergency repair at Lake Street and that the master plan incorporated the capital improvement projects used to develop the financial plan.
Committee members asked about hardship or senior assistance programs; staff said they have begun conversations with the city manager and finance about potential assistance options. Members also emphasized outreach and education, and staff said notices and additional outreach will follow council approval; a public hearing is planned for June 14 and the rates would become effective July 1 if adopted.
