Santa Rosa utility board reviews $170M budget, flags rate increases tied to Sonoma Water wholesale pass‑through

Summary

The Board of Public Utilities reviewed the proposed FY2026–27 operating and capital budgets totaling about $170.2 million, was told water and sewer rate increases are scheduled under the adopted five‑year plan, and discussed budget shortfalls, a planned bond and contingencies for drought or wholesale‑rate shocks.

The Santa Rosa Board of Public Utilities on Wednesday reviewed the proposed fiscal year 2026–27 budgets for the city’s water, local wastewater, regional reuse and stormwater enterprises, with staff presenting a $170.2 million package of operating and capital requests and warning of budgetary deficits driven largely by wholesale water cost increases.

“We are implementing 6% fixed and usage increases on the water side and 5% for both aspects on the sewer side as of July 1, 2026,” said Nick Harvey, deputy director of administration for Santa Rosa Water, summarizing the rate path the board adopted last year and the anticipated pass‑through of a Sonoma Water wholesale increase.

Staff told the board the water fund expects to deliver roughly 15,610 acre‑feet of wholesale demand next year and budgeted about $23.7 million in water purchase costs after an 8.21% wholesale increase that puts the wholesale price near $1,515 per acre‑foot. The department projects…

Santa Rosa utility board reviews $170M budget, flags rate increases tied to Sonoma Water wholesale pass‑through

Summary

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