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Council reviews water and sewer rate‑structure study and customer assistance program; staff recommends four‑year adoption period
Summary
City staff presented a water and sewer rate‑structure study focused on Proposition 218 constraints, rate‑design attributes and outreach; staff recommended a four‑year rate adoption period and outlined the customer assistance program funded partly from non‑rate sources (late fees). Council generally supported moving forward with rate design priorities and the longer adoption period, and asked staff to return with further details tied to future rate mailings and Prop 218 notices.
San Luis Obispo — City staff on April 19 presented the 2026 water and sewer rate structure study, describing legal constraints under Proposition 218, the tradeoffs between fixed and volumetric charges, and proposed rate‑design priorities. Staff recommended council confirm those priorities and adopt a four‑year rate adoption period to increase revenue stability and reduce administrative workload.
Public Works and Utilities Director Aaron Floyd and Utilities Business Manager Shane Whittington framed the session as a study to set structure rather than finalize rate amounts. They explained Proposition 218 requirements that rates be proportional to cost of service and revenues restricted to the fund purpose. Staff emphasized three design goals: (1) revenue effectiveness and predictability, (2) fairness across customer classes, and (3)…
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