Santa Rosa Water previews FY 2026–27 budget, proposes 6% water and 5% sewer rate increases

Santa Rosa Water staff on Tuesday presented a preliminary FY 2026–27 operations and capital budget that would raise water rates 6% and sewer rates 5% while advancing a capital program that includes a potential $35 million bond for treatment-plant electrical infrastructure.

Deputy Director Nick Harvey opened the review, describing the presentation as preliminary and subject to change as staff continues citywide budget entry and rate-modeling work. He said Santa Rosa collected roughly $52.1 million in water rate revenues last fiscal year across about 54,000 accounts and about $74.4 million in wastewater rate revenues across roughly 50,000 sewer accounts. Harvey told the board the Sonoma Water wholesale increase is 8.21%, putting the wholesale price at about $1,515 per acre-foot and projecting wholesale demand near 15,610 acre-feet, with an estimated wholesale budget of roughly $23.7 million.

"For the average household of four in the city of Santa Rosa, we're anticipating that the net effect of our 6% rate increase ... plus the 8.21% increase on the wholesale water rate will yield about a 6.4% increase or a $5.33 per month increase on the average family's water bill," Harvey said.

Why it matters: staff said the proposed rate changes are intended to keep pace with rising operating costs, wholesale…