By Jorge Casuso

June 11, 2025 -- With little discussion, the City Council shortly after midnight Tuesday voted to increase water and sewer rates over the next five years to keep the services afloat.

Under the new rates that take effect July 1, single family homes will see an annual increase in water rates of about $180 each year over five years, while sewer rates will rise by about $48.

Commercial buildings will pay an average of $720 more each year over five years for water and $186 more for sewer.

Meanwhile, an average 8-unit multifamily building will see an annual increase of about $48 per unit for water and $12 per unit for sewer each year over five years.

The new rate structure maintains provisions that discount the rates for low-income customers.

The City's Water and Wastewater Enterprise Funds pay for maintaining services for 93,000 residents and 2,700 businesses and institutions that make up the City’s more than 18,000 water accounts.

The new rates come after the Council doubled the rates in 2020 for five years to eliminate costly imported water and continue replacing the city's water pipes ("City Council Doubles Water Rates," January 30, 2020).

Despite the hikes, the City's Water Enterprise Fund experienced a total revenue shortfall of some $18.5 million over the past five years, according the City's Water Resources Division staff.

A shortfall of nearly $5 million was projected for the current fiscal year ending June 30, forcing the City "to dip into the Water Fund reserves" to bridge the gap.

Meanwhile, the Wastewater Enterprise Fund saw a total revenue shortfall of approximately $12 million, with a shortfall of nearly $3.4 million forecast for the current fiscal year.

Staff attributes the budget shortfalls each year to the COVID shutdown -- which reduced water usage and hiked operation and construction costs -- and to "climate change impacts" ("City Council Poised to Raise Water Rates," June 9, 2025).