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La Mesa council adopts sewer rate increases for FY26 and FY27 after Proposition 218 notice period

La Mesa City Council · July 8, 2025
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Summary

The council adopted sewer service rate increases of 5.96% for fiscal year 2026 and 5.04% for fiscal year 2027 after completing a Proposition 218 noticing and protest period. Staff said the increases are intended to sustain the sewer enterprise fund and cover operations, debt service and regional treatment costs.

After a public hearing held July 8, the La Mesa City Council approved an ordinance (first reading adopted; second reading to follow) increasing sewer service charges by 5.96% for fiscal year 2025–26 and by 5.04% for fiscal year 2026–27. The increases are intended to maintain a financially sound sewer enterprise fund that covers operation and maintenance, capital replacement, debt service and the city's share of regional treatment costs.

Staff explained the legal and technical basis for the rate change. The city maintains about 155 miles of wastewater collection pipeline and participates in regional sewer treatment, which represents approximately 51% of the system's expenditures. The sewer fund is separate from the general fund and must be balanced. Charges for residential customers are calculated from winter water usage to exclude most landscape irrigation. A Proposition 218 noticing process was followed; the city received 58 written protests by the June 30, 2025 deadline and the protest total did not meet the threshold to block the rate.

Staff estimated the average monthly cost for a single-family home will rise by about $3.16 based on the city's average usage. The ordinance will be effective August 21, 2025 if the second reading and adoption proceed as scheduled.

Councilmembers asked about low-income protections and constraints on rate design; staff clarified that the city cannot legally tie sewer rates to household income but that the winter-usage billing method provides some consumption-based relief. Staff also reiterated that rates may not exceed what is necessary to fund sewer services and obligations.

Outcome: Council voted to adopt the proposed rate changes. A second reading was scheduled for July 22, 2025; staff indicated the changes would take effect on August 21, 2025 if the ordinance is enacted on second reading.