What is this mailer about?
We want to inform you about proposed rate increases for your
community’s water, wastewater and storm drainage utilities in
the City of Sacramento. These essential services may not be
something you think about every day but they are critical to your
community and quality of life.
What has been accomplished with the past water and
wastewater rate increases?
Many of Sacramento’s water and wastewater systems have been
improved thanks to the rate adjustments passed four years ago
but there’s still more work to do. The pipelines and facilities in
your community’s drinking water, wastewater and storm drainage
systems are aging and need repair. Your Utilities department has
been working toward the goal of replacing aging pipelines every
100 years so they are safe and reliable for you and your family.
Four years ago, water pipelines were on track to be replaced
every 400 years and wastewater pipelines every 650 years. That
was very far below industry standards. Customer rates helped
to improve the replacement cycle and we are getting closer to
our goal of more reliable and safer pipelines for our community.
The water system replacement cycle is now 280 years and the
wastewater cycle is now 406 years. For more information, go to
YourUtilitiesYourCommunity.com to see an accountability chart.
Information Enclosed
Proposed Utility
Rate Change
The Sacramento River Water Treatment Plant, one of only two
water treatment facilities in the city, hadn’t been rehabilitated for
almost 100 years. It is undergoing significant repair and rehabilitation and is anticipated to come in under budget. The updates
are necessary to make sure you and your family have clean and
safe drinking water. We are also delivering all of the other pipeline, well, pump station and water meter projects we promised
and more. This includes the regional wastewater storage facility
in Oak Park, which has also been completed under budget.
1395 35th Avenue
Sacramento, CA 95822
Kevin Johnson, Mayor
Angelique Ashby, Mayor Pro Tem, Councilmember, District 1
Allen Warren, Vice Mayor, Councilmember, District 2
Jeff Harris, Councilmember, District 3
Steve Hansen, Councilmember, District 4
Jay Schenirer, Councilmember, District 5
Eric Guerra, Councilmember, District 6
Rick Jennings II, Councilmember, District 7
Larry Carr, Councilmember, District 8
John Shirey, City Manager
Bill Busath, Department of Utilities Director
What makes the storm drainage system important?
Why are rate increases needed?
A well-maintained storm drainage system is critical to protecting
your homes, businesses and streets from flooding. It is our top
priority to keep the pipelines and pump stations running safely and reliably. However, since storm drainage rates have not
increased in almost 20 years, revenues have not kept up with the
rising costs to maintain, repair and improve the system. Utilities
has been forced to use its reserve funds just to keep up with
storm drainage repairs. For many years, we have postponed
necessary replacement and improvement projects. If we delay
the storm drainage projects any longer, it will be much more
difficult to provide local flood protection to your community.
What will revenues from the proposed rate adjustments
be used for?
Utilities will continue using its rate revenue to work toward
industry best practices of 100-year replacement cycles for safe
and reliable systems.
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The proposed water rate adjustment will fund completing the
water metering program in five years. Once all rate payers are
on metered billing, it’s a more fair and equitable way to bill our
customers and encourage water conservation for customers.
The adjustment will also fund critical pipeline and treatment plant
rehabilitation.
The proposed wastewater rate adjustment will fund improvements to the city’s combined sewer system pipelines and a large
underground combined wastewater storage facility to meet strict
federal water quality standards and regulatory requirements.
The adjustment will also fund critical pipeline and pump station
rehabilitation.
The proposed storm drainage rate adjustment will fund many
long overdue projects to help significantly alleviate local flooding.
This also includes projects to keep our streets open and safe
for local traffic and emergency vehicles during storm events.
The adjustment will also fund critical pipeline and pump station
rehabilitation.
The rate adjustments will also fund significant upgrades to
customer service and billing programs for all three systems.
When was the last time Sacramento utility rates
were increased?
For storm drainage, the city has not implemented a rate
increase since 1996. For water and wastewater, the city did
not implement a rate increase during this fiscal year. The last
rate increase went into effect on July 1, 2014.
Will any of the proposed water, wastewater or storm
drainage rate revenue be used for other purposes?
No. By state law, the proposed rate revenue can only be used
to pay the cost of providing local water, wastewater or storm
drainage services.
What is the difference between the water, wastewater
and storm drainage systems?
The water system provides safe and healthy drinking water to
our homes and businesses. The wastewater system collects
water and waste from inside Sacramento homes and businesses and carries it to a treatment plant where it is cleaned before
being released. The storm drainage system collects rainwater
and urban runoff from outside homes and businesses and carries it to storm drain outfalls. The storm drainage system keeps
communities dry and safe by preventing localized flooding and
ensuring access, especially to emergency vehicles.
For more information, please visit
www.YourUtilitiesYourCommunity.com.
How is the city helping low-income customers
pay their utility bills?
The city offers a Utilities Rate Assistance Program to help income-eligible Sacramento households save on their utility costs.
If you have questions regarding eligibility or how to apply, please
call (916) 808-5454 or visit www.cityofsacramento.org/Utilities/Services.
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What rates are the Department of Utilities proposing
and when will they take effect?
Unit
Charge
Airport
10%
$0.003267/sq. ft.
Apartments
(complex with
over 4 units)
70%
$0.003267/sq. ft.
Boarding home
70%
$0.003267/sq. ft.
Cemetery/
Mortuary
10%
$0.003267/sq. ft.
Church
60%
$0.003267/sq. ft.
Convalescent
home
60%
$0.003267/sq. ft.
Common area
90%
$0.003267/sq. ft.
Commercial –
Office
90%
$0.003267/sq. ft.
Commercial –
Retail
90%
$0.003267/sq. ft.
Commercial –
Warehouse
90%
$0.003267/sq. ft.
Fire station
90%
$0.003267/sq. ft.
Hospital
90%
$0.003267/sq. ft.
Hotel/Motel
90%
$0.003267/sq. ft.
Irrigation
20%
$0.003267/sq. ft.
Median
0%
$0.003267/sq. ft.
Mixed use
85%
$0.003267/sq. ft.
Monthly Rate
(Impervious
Area X Unit
Charge)
Mobile home
70%
$0.003267/sq. ft.
Multifamily
residential
70%
$0.003267/sq. ft.
Park
10%
$0.003267/sq. ft.
$0.003267/
sq. ft.
$7.47
Parking lot
90%
$0.003267/sq. ft.
Private school
60%
$0.003267/sq. ft.
Public school
60%
$0.003267/sq. ft.
Utility
90%
$0.003267/sq. ft.
Vacant
20%
$0.003267/sq. ft.
Wastewater service: The Department is proposing a rate increase of 9 percent beginning on July 1, 2016, followed by three
annual rate increases of 9 percent to take effect on July 1, 2017,
July 1, 2018 and July 1, 2019.
Storm drainage service: The Department is proposing a twostep change: (1) modification of the rate structure and (2) four
annual rate increases of 16 percent each year. Each of these
proposed changes is described below.
• Step 1 — Storm drainage rate structure modification: The
Department is proposing a modified rate structure based on a
parcel’s impervious area (surfaces which will not absorb water
such as driveways, pavement and buildings), because the
amount of impervious area on private property directly relates
to how much storm water drains into the community storm
drainage system. The modified rate structure divides properties into two major categories: (1) Single-Family Residential
and (2) Other Premise Types.
For Single-Family Residential properties, the rates are broken
into five tiers based on the size of the property. Each tier is
then assigned an impervious area amount that is multiplied by
a unit charge to determine the monthly rate for that tier. The
basis and amount of the proposed Single-Family Residential
rates are shown in the table below.
Storm Drainage Service — Single-Family Residential1
Parcel Area
Range
Tier 1 ≤ 4,500 square feet
Assigned
Impervious
Area
2,284
Premise
Type1
Impervious
Area Factor
Water service: The Department is proposing a rate increase of
10 percent beginning on July 1, 2016, followed by three annual
rate increases of 10 percent to take effect on July 1, 2017, July
1, 2018 and July 1, 2019.
Storm Drainage Service — Other Premise Types
Unit
Charge
Tier 2 > 4,500 and ≤ 6,000
square feet
2,710
$0.003267/
sq. ft.
$8.86
Tier 3 > 6,000 and ≤ 7,500
square feet
3,136
$0.003267/
sq. ft.
$10.25
Tier 4 > 7,500 and ≤ 9,000
square feet
3,562
$0.003267/
sq. ft.
$11.64
Tier 5 > 9,000 square feet
3,988
$0.003267/
sq. ft.
$13.04
1The single-family residential category includes single-family, duplex, triplex, fourplex and
townhome premise types.
For properties classified as Other Premise Types, the new rate
structure divides properties into different categories based on
how the property is used. Each use category (premise type) is
assigned an impervious area factor based on the percentage of
impervious area expected for a typical parcel. This factor is then
multiplied by the parcel area and a unit charge to determine the
monthly rate, provided that the minimum monthly rate will be
$5.00. The basis and amount of the proposed Other Premise
Types rates are shown in the following table.
NOTICE OF PUBLIC HEARING
Monthly
Rate
Monthly Rate =
Parcel Area X
Impervious Area
Factor X Unit
Charge.
If the Monthly
Rate calculated for
any parcel is less
than $5.00, the
minimum Monthly
Rate of $5.00 will
apply.
Proposition 218 requires a public hearing when the city proposes
to increase utility service rates or establish new rates. The City of
Sacramento Utilities Rate Advisory Commission (Commission) is
charged with holding the public hearing required by Proposition
218. The Commission will hold this public hearing on Wednesday, January 27, 2016 at 5:30 p.m. at the City Hall Council
Chambers located at 915 “I” Street, Sacramento. After the
hearing, the Commission will provide recommendations about
the proposed rate adjustments to the Mayor and City Council.
Under Proposition 218, if you are the owner of record or the
tenant of a parcel subject to these proposed rate changes, you
may submit a protest against one or more of the proposed rate
changes by filing a written protest with the City Clerk at or
before the time set for the public hearing. Only one protest per
parcel will be counted. A written protest must identify the parcel
Condominiums: The storm drainage service Monthly Rate for
condominiums will be $5.00 per unit.
• Step 2 — Storm drainage rate adjustment: The Department
is proposing an increase of 16 percent to the rates in the new
storm drainage rate structure to take effect when the new rate
structure takes effect, followed by three annual rate increases
of 16 percent each year.
The City Council can adopt the proposed rate changes for water
and wastewater service if written protests against these changes
are not filed for a majority of the affected parcels.
The City Council can adopt the proposed rate changes for
storm drainage service if written protests against these changes
are not filed for a majority of the affected parcels and the rate
changes subsequently are approved by the owners of a majority
of the affected parcels in a mailed ballot proceeding conducted
after the public hearing.
Rate Proposal – Typical Single-Family Customer Monthly Bill1
If passed, the Department of Utilities’ proposed water, wastewater and storm drainage rates will increase the typical single-family
customer’s monthly bill for city utility services by $7.17 the first year, $9.13 the second year, $10.14 the third year and $11.26 the
fourth year. This represents a total increase of approximately 10 percent each year as shown in the following table.
UTILITY
SERVICES
CURRENT RATES
EFFECTIVE 7/1/15
INCREASE
EFFECTIVE 7/1/16
INCREASE
EFFECTIVE 7/1/17
INCREASE
EFFECTIVE 7/1/18
INCREASE
EFFECTIVE 7/1/19
Water (unmetered)
$45.73
$4.57
(10%)
$50.30
$5.03
(10%)
$55.33
$5.53
(10%)
$60.87
$6.09
(10%)
$66.95
Wastewater2
$22.42
$2.02
(9%)
$24.44
$2.20
(9%)
$26.64
$2.40
(9%)
$29.03
$2.61
(9%)
$31.65
Storm Drainage3
$11.31
$0.58
(16%)
$11.89
$1.90
(16%)
$13.79
$2.21
(16%)
$16.00
$2.56
(16%)
$18.56
TOTAL
$79.46
Overall average increase
1Any premise type not listed will be assigned to a category with the same impervious area
characteristics. If you have questions regarding your parcel’s premise type or storm drainage
service rate, please contact (916) 808-5454.
number and address of the affected parcel. If written protests
against one or more of the proposed rate changes are filed for
a majority of the affected parcels, the proposed rate change(s)
cannot be imposed. Protests regarding the proposed rate
change(s) may be delivered personally or mailed to: Sacramento City Clerk, City Hall, 915 “I” Street, Sacramento, CA 95814.
$86.63
$95.76
$105.90
$117.16
9.00%
10.50%
10.60%
10.60%
1Metered water service cost varies according to water usage.
2Wastewater charges are for City of Sacramento services only and do not include Sacramento Regional County Sanitation District (SRCSD) charges that the city collects for SRCSD.
City wastewater charges do not apply to city residents receiving sewer service from the Sacramento Area Sewer District.
3Storm Drainage amounts assume adoption of new rate structure with July 1, 2016 effective date (actual effective date contingent upon outcome of property owner vote).
Proposition 218 Rate Hearing
Wednesday, January 27, 2016
5:30 p.m.
Council Chambers
City Hall
915 I Street
Sacramento, CA 95814
The Department of Utilities is committed to making sure you have all the information you need. For more information, including rate schedules showing the
rates proposed for each year, please visit www.YourUtilitiesYourCommunity.
com. You may obtain the exact rates being proposed for water, wastewater
and storm drainage services provided to your parcel by calling (916) 808-5454.
The annual rate adjustments being proposed for water, wastewater and storm
drainage services are maximum amounts. The Sacramento City Council may
adopt the rate adjustments as proposed or may adopt lower rate increases.
If your organization or group would like a presentation from the Department of
Utilities, please contact the Department at (916) 808-1400.
• Effective Date: Because State law requires storm drainage
service rate changes to be approved by a vote of property
owners, the modified rate structure and the first annual rate
increase will take effect either on July 1, 2016 or July 1, 2017,
contingent on property owner approval.
For more information, call 311 or (916) 264-5011
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