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Staff outlines Prop 218 protest process as city readies water and wastewater rate proposal
Summary
Department of Utilities staff explained Proposition 218 requirements — mailed notices and a public hearing — and warned that more than 50% property-owner protests would block any proposed rate increase; councilmembers said the city needs new revenue to address a roughly $2 billion backlog in water and wastewater projects.
Department of Utilities staff briefed the Sacramento City Council on the Proposition 218 process that will govern any proposed water and wastewater rate increase.
DOU staff told the council that Prop 218 requires mailed notices to property owners, a public hearing where property owners may file protests, and that the city must count protests after the hearing; "If we receive less than 50% of all of the property owners, then we can move forward with the rate increase. If we receive more than 50%... we will have to, in essence, end the process and start over," the staff member said. The staff presentation said the city has not raised rates in seven to eight years and must build reserves and creditworthiness to finance high-profile treatment-plant improvements.
Council member Kaplan urged clarity for residents about why the increase is needed, noting insurance and other cost pressures and warning that failing to act could jeopardize water quality and projects. Kaplan said the city faces a backlog of infrastructure "over 2,000,000,000" and emphasized the need to preserve the city's ability to borrow for major capital improvements.
The explanation clarified the legal threshold (majority of property owners affected) and the calendar steps the city will follow; staff said they will send notices and hold the public hearing required by Prop 218 before any final vote. No final rates were proposed at the meeting, and staff flagged that a successful protest by a majority of affected property owners would stop the proposed rate adjustment.
