Salinas council votes to begin Prop. 218 process after sewer rate study recommends $16.35 monthly charge

The Salinas City Council voted 6–1 on March 11 to accept a consultant—prepared sanitary sewer rate study and to begin the Proposition 218 public-notice and hearing process for a rate scenario that would raise the monthly charge per equivalent dwelling unit (EDU) to $16.35, escalating 2% annually.

The study and recommendation followed a detailed presentation from city staff and outside consultants about aging collection infrastructure, recent emergency repairs and a projected capital program estimated at roughly $115 million over a 10-year modeling window. Andrea Reis, the financial consultant from DTA, said the city—s annual operation and maintenance costs are "currently at about 3 and a half million" and that capital improvements plus debt service drove the recommended rate scenarios.

Why it matters: City staff told the council the sewer enterprise fund is underfunded, the system has sections with frequent failures, and the city—s bond rating has been lowered. Selena Andrews, the city—s finance director, warned that continued weak coverage could increase borrowing costs and that a persistent downgrade could trigger additional financial consequences for the city.

Details of the study and debate

City Engineer (presenting lead) gave the…