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Council accepts sewer rate study; staff to mail Prop 218 notices and schedule public hearing
Summary
City staff and consultant presented a sewer rate study proposing 3% annual sewer rate increases for five years to meet capital and regulatory costs and to preserve reserves; council voted to accept the study and direct staff to mail Prop 218 notices and set public hearings in May.
Assistant Director Martha Juarez and consultant Carmen Kasner presented a sewer rate study Tuesday that recommends modest annual sewer rate increases (3% per year for five years) to address aging pipes, regulatory requirements, and capital project needs.
Juarez said National City operates a collection system of roughly 100 miles of pipe and serves more than 17,000 sewer customers; the city pays Metro JPA and the City of San Diego for treatment. The city’s last rate study was in 2017 and prior multi‑year adjustments concluded in 2023. Kasner, the consultant, told the council that the recommended 3% increases balance reducing reserves with avoiding a large sudden hike later. "We think a 3% increase for each of the next five years is kind of a balance point for you," Kasner said.
The proposed rate design calls for proportional adjustments across single‑family and multifamily classes; mobile home flat rates would rise by 1% per year because of lower usage assumptions. Staff proposed minor revisions to Reserve Policy 201 to clarify target levels that support a multi‑year capital program. Juarez said public noticing per California Proposition 218 would be mailed to affected property owners 45 days before a public hearing; staff proposed a first reading at the May 6 meeting and a second reading the following meeting if the council directs proceeding.
Council action: Councilmember [motion-maker recorded in minutes] moved to accept the rate study, adopt the recommended reserve policy revisions and direct staff to begin the Prop 218 noticing and hearing process. The motion passed without recorded dissent.
Why it matters: Sewer capital work is expensive and replacement projects already cited by staff cost millions of dollars for relatively short linear distances; spreading modest increases over time is intended to avoid steeper future hikes and maintain system reliability.
Next steps: Staff will mail Prop 218 notices, hold a public hearing in May and return for ordinance readings if protests do not require alternative action.
