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Yuba City Council opens Proposition 218 process for water and sewer rate adjustments
Summary
The council accepted updated water and wastewater rate studies and unanimously initiated the Proposition 218 notice and protest process. Staff outlined multi‑year capital needs and a public outreach schedule: notices April 4–May 19, a community meeting April 23, and a protest hearing May 19, 2026.
Yuba City on March 17 moved to begin the Proposition 218 process that could raise water and sewer rates to meet growing operations and capital needs.
Utilities staff presented updated cost‑of‑service studies showing that inflation, higher energy and materials costs and aging infrastructure have left the city’s water and wastewater funds drawing on reserves. Phil Marlor said the systems serve thousands of customers and face rising O&M and debt‑service obligations: “Our current revenues do not fully cover operations, capital replacement, and long‑term needs,” he told the council.
Key numbers and needs: staff said the city serves roughly 20,000 water connections and about 16,000 sewer connections, maintains roughly 280 miles of distribution pipelines and multiple lift stations, and is coping with infrastructure largely installed in the 1960s and 1970s. Staff projected increases in annual operation and maintenance costs and in debt service through fiscal 2030 and identified priority capital projects — treatment plant and pump station rehabilitation, pipeline replacement, tank work and SCADA modernization.
Process and timeline: Council voted to adopt the studies and start the Proposition 218 public‑notice and protest process. The outreach period is scheduled for April 4–May 19, 2026; the city will hold a community meeting at the wastewater treatment facility on April 23 and a protest hearing on May 19 at 6 p.m. If a majority protest is not received, council may adopt rates by resolution after the protest hearing.
What residents should expect: mailed notices to customers, a community meeting to review the studies and answer questions, and a formal protest mechanism under Proposition 218. Staff said they had refined prior numbers downward since earlier drafts and that the resolution and notice forms reflect the updated figures.
Next steps: staff will mail notices, hold the April 23 community meeting at the treatment facility, collect protests through May 19, and return to council to consider adoption if the protest threshold is not met.
