Santa Rosa Water presents FY25–26 rate plan, projections show planned deficits and restored CIP funding

Santa Rosa Water staff presented their proposed fiscal year 2025–26 operating, maintenance and capital budgets for the water, local sewer, regional reuse and stormwater and creeks enterprises during a study session Thursday.

Nick Harvey, Deputy Director of Administration for Santa Rosa Water, told the Board of Public Utilities the department’s combined proposed revenues for next year total about $180,500,000 while proposed expenditures across enterprises are about $195,000,000, producing a planned department-wide budgetary deficit of roughly $14,600,000 that was incorporated into the rate modeling.

The proposals follow City Council adoption at a public hearing of a multi-year water and sewer rate package. Council approved three years of 6% increases followed by two years of 7% increases for the water enterprise and five years of 5% increases for the sewer enterprise, Harvey said. He said the rate structure changes both fixed and usage components.

Harvey and Liz Hanley, Supervising…