Hayward Council unanimously adopts multi‑year sewer rate increases to fund $488 million treatment upgrade

The Hayward City Council on Feb. 18 adopted resolutions amending the master fee schedule to approve new sewer rates for fiscal years 2026–2030 and updated sewer connection fees for fiscal years 2026–2027, finding the actions exempt from review under the California Environmental Quality Act.

Council members voted unanimously to approve the package after a public hearing and city staff presentation. The vote followed a staff report that described the primary driver of the increases as a San Francisco Bay regional water board watershed permit adopted in July that for the first time requires wastewater agencies to design and construct improvements to reduce nutrients in treated wastewater.

The item matters because the project and debt service will create sustained higher utility bills for Hayward ratepayers. Public works staff said the city estimates the Water Resource Recovery Facility (WRF) Phase 2 upgrade at $488,000,000 and plans to fund it with a mix that includes a currently‑pursued U.S. EPA WIFIA loan of $243,000,000 and about $215,000,000 in revenue bonds; staff also said the city expects to issue roughly $458,000,000 of new debt for capital projects tied to the sewer enterprise. To meet debt service and reserve targets, staff recommended annual sewer rate increases averaging 12% per year starting in fiscal 2026.

Nancy Fan, principal consultant at Water Resources Economics, described the technical approach staff used to set rates and connection fees,…