The West Sacramento City Council directed staff to proceed with the legally required Prop 218 notification process using the EU Commission’s recommended funding scenario for water and sewer utilities (Scenario 4), after a detailed staff and consultant presentation on the city’s aging utility infrastructure and four rate scenarios.

Staff and consultant HF&H presented master‑plan capital needs adopted in January 2025 and demonstrated a range of scenarios that blend rate increases, use of reserves and debt issuance. Finance Director Roberta Repper and Public Works O&M Director Rebecca Scott explained that many system components are near or past useful life: reservoirs, mains and pump stations; the George Kristoff Water Treatment Plant produces about 11 million gallons per day and staff cited a need to replace aging meters and critical equipment. HF&H consultant Rick Simonson summarized projected revenue shortfalls and four scenarios that trade off immediate bill impacts and the amount of capital work funded over five years.

Staff illustrated that delaying projects would increase future costs and risks such as sewer backups and sinkholes. A slide example: a project completed in 2020 at roughly $7.2 million would be about $8.7 million at current prices, and staff said an immediate 20% rate increase would be required just to keep pace with operating cost escalation. The four scenarios ranged from a low plan with the least capital funded and the lowest initial rate impact to a full‑ask scenario covering nearly all master‑plan recommendations; the EU Commission’s recommendation sits between staff’s mid proposal and the full ask.

Council members probed prioritization, implications for households and how the city would expand low‑income bill assistance. Staff said the city’s existing low‑income rebate program is funded from Measure K and currently under‑utilized; staff pledged outreach and a bill‑calculator tool online. After public comment (including the Sacramento Association of Realtors urging careful analysis of homeowner impacts), Council Member Early moved to direct staff to mail Prop 218 notices using the EU Commission recommendation as the ceiling for the five‑year period. The motion was seconded and carried on roll call.

Staff will mail Prop 218 notices (setting the legal maximum), hold community outreach sessions and return to council for a March protest hearing; if fewer than 50% of affected parcel owners submit valid written protests, the council may adopt rates at the March hearing. Staff emphasized council may adopt lower rates later but cannot adopt higher rates than the mailed ceiling.

Next steps in the timeline: mailed notices in late Jan/Feb, community outreach sessions, protest hearing tentatively scheduled for March 18 and rates effective April 1 if adopted.