Santa Rosa Water proposes multi‑year rate increases and restores capital spending in FY25‑26 plan

Deputy Director Nick Harvey presented Santa Rosa Water’s fiscal year 2025–26 budget overview to the Budget Subcommittee, proposing multi‑year rate increases for both water and sewer enterprises and a restoration of previously reduced capital spending.

Harvey told the subcommittee the department will recommend “three years of 6% rate increases followed by two years of 7% for the water enterprise and five years of 5% increases for the sewer enterprise,” and that the proposal increases both fixed and usage charges. He said the recommendation will be presented at a public hearing on April 1 and that the subcommittee will be asked to formally recommend the full budget to City Council on April 17; City Council is scheduled to hold budget study sessions in May and a public hearing for adoption on June 17.

The nut graf: the proposal is intended to restore capital projects the department cut last year to balance budgets and to address rising costs, including higher wholesale water charges and insurance, while remaining subject to Proposition 218 constraints on how utility revenues and assessments may be used.

Harvey summarized revenues and spending across Santa Rosa Water’s four enterprises. For the year ended June 30, 2024, he said the Water Fund generated about $47.3 million in rate revenues from roughly 54,000 customer accounts and about $12.2 million in demand and miscellaneous fees; the local sewer enterprise generated roughly $72.1 million in rate revenues across about 50,000 accounts and about $16.9 million in other charges. He described the regional enterprise as…