Monterey council adopts amended ordinance imposing an 8% water and sewer rate increase; long-term overhaul promised

The Monterey Town Council voted to adopt an amended ordinance (Ordinance 2025-19) that applies an 8% across-the-board increase to water and sewer bills, effective with the billing cycle beginning Dec. 22. Mayor Hushauer and town staff framed the measure as a near-term step to reduce an operating shortfall while a longer-term rate structure is developed.

The ordinance, presented as an amended version of prior proposals, removes the previously discussed multi-year increases and instead implements a single 8% adjustment to base and usage charges. Mayor Hushauer told the council the administration will present a proposed long-term ordinance to the Water and Sewer Commission at its January meeting and aim to introduce a comprehensive rate-structure ordinance to the council in February so it can be on the budget calendar in time for the spring budget process.

Council debate was robust. Council member Kelly said she regarded the 8% change as a “band-aid” and urged that any temporary increase be coupled with an aggressive, clear timetable toward a permanent, equitable rate structure. In public comment before the vote, resident Steve Salinsburg urged spreading increases over a longer period and factoring in potential future impact-fee income and grants to blunt the effect on seniors and fixed-income households.

Supporters said the town’s water and sewer operations are running a structural deficit that cannot be sustained. Mayor Hushauer said the town has limited general reserves and that higher operating costs and inflation have created recurring shortfalls; he told the council, “we can’t keep operating this way.” Several council members emphasized they expect the administration and staff to return with a written, multi-year solution showing how reserves will be rebuilt.

The council adopted the amended ordinance in a roll-call vote. The executive branch committed to a schedule: present a draft to the Water and Sewer Commission in January, introduce a long-term ordinance in February, and seek adoption in time to inform the FY2026 budget process.

What comes next: staff said the Water and Sewer Commission will review the administration's proposed approach at its Dec. 3 meeting and provide feedback; the council indicated it may hold additional meetings in January or call a special meeting if needed to keep the February introduction target. The council also directed staff to prepare resident communications covering PFAS remediation efforts and the planned rate changes.

(Reporting note: transcript spelling of the mayor's name was inconsistent in the meeting record; this article uses "Mayor Hushauer," the form most frequently used in council remarks.)