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Commission recommends 20% wastewater rate increase to restore reserves and pay plant costs
Summary
The Utilities Advisory Commission recommended a 20% wastewater collection rate increase for FY2026 to restore depleted reserves, pay treatment plant charges and fund ongoing operations; commissioners discussed a 16% alternative that would delay some reserve replenishment and require an interfund loan.
The Utilities Advisory Commission voted unanimously to recommend that the City Council approve a 20% rate increase for the wastewater collection utility in fiscal year 2026.
Staff told the commission the wastewater utility faces a combination of factors that drove the proposed increase: low operating reserves that must be replenished, rising personnel and vehicle costs, and charges from Silicon Valley Clean Water (the regional treatment plant) for authorized future minor capital. Carla Daley and staff presented a financial plan that included repaying a short‑term loan taken in FY24…
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