WATER AND SEWER RATE PROPOSAL
City of Red Bluff
October 6, 2026
Proposition 218 Hearing
Rate Study Timeline
2 Jul. 21
1 Three rate options
were presented to
City Council
Aug. 4
2 Final rate
recommendations
were presented to
City Council
Aug. 20
3 Proposition 218
notices were mailed
to customers and
property owners
Sept. 16
4 Community
Outreach Meeting
was held
Oct. 6
5 Proposition 218
Hearing
Jan. 1, 2027
6 New rates take
effect, if adopted
01 Rates have not kept pace The City has not raised rates in 14 years. Current rates are the lowest in the region.
02 Utilities are running deficits The water and sewer utilities are losing $1M+ each per year. 03 Infrastructure needs are significant Master plans recommend $9.2M in water projects and $8M in sewer projects.
04 The City will pursue funding opportunities The City will apply for grants and repair pipelines in conjunction with road work funded by Measure S.
05 Proposed rates remain competitive With the proposed rate increases, the City’s rates will be in the mid-range of other local utilities.
Key factors influencing the proposed rates
The Financial Starting Point
WATER UTILITY
Budgeted operating expenses
not covered
Revenue shortfall
≈ $1M per year
$5.6M of reserves
Insufficient funds for $9.2M of projects: well
improvements, storage tanks, pipelines
X
X
X
SEWER UTILITY
Budgeted operating expenses
not covered
Revenue shortfall
≈ $1.5M per year
-$2.8M of reserves
X
X
X
Insufficient funds for $8M of projects: treatment
plant improvements, lift stations, manholes X
Why the utilities need additional revenue
PROPOSED WATER RATES
6 PROPOSED
CURRENT
Jan 1, 2027 Jan 1, 2028 Jan 1, 2029 Jan 1, 2030 Jan 1, 2031 Meter Size
3/4” $15.04 $14.89 $22.17 $26.39 $30.13 $34.40
1” $25.78 $23.60 $35.15 $41.85 $47.78 $54.56
1.5” $48.33 $45.39 $67.60 $80.50 $91.92 $104.96
2” $60.24 $71.53 $106.54 $126.88 $144.88 $165.44
3” $82.69 $141.23 $210.38 $250.56 $286.10 $326.72
4" $205.81 $219.65 $327.20 $389.70 $444.98 $508.16
6” $454.39 $437.49 $651.70 $776.20 $886.32 $1,012.16
Water: Proposed Monthly Base Rates
94% of
customers
have a 3/4”
or 1” meter
Only a small number of large
apartment buildings and Red Bluff
High School have a 6” meter
7 PROPOSED
CURRENT Jan 1, 2027 Jan 1, 2028 Jan 1, 2029 Jan 1, 2030 Jan 1, 2031 Volume (Cubic Feet) ALL USAGE ($/HCF)
1 - 2,500 $0.79 $1.67 $2.48 $2.95 $3.36 $3.83
2,501 - 4,000 $0.74
4,001 - 6,000 $0.69
6,001 - 8,000 $0.66
8,001 - 12,000 $0.62
12,001 - 20,000 $0.61
20,001 - 36,000 $0.55
36,001 - 68,000 $0.54
68,000+ $0.48
HCF = hundred cubic feet; 1 HCF = 748 gallons
Water: Proposed Monthly Volume Rates
Water Bill Survey
8 HCF = hundred cubic feet; 1 HCF = 748 gallons
PROPOSED SEWER RATES
10 PROPOSED
CURRENT Effective Date Jan 1, 2027 Jan 1, 2028 Jan 1, 2029 Jan 1, 2030 Jan 1, 2031 Residential Fixed Monthly Rates ($/dwelling unit) Monthly Rate
Residential
Customers
$34.00 Single Family $85.87 $91.94 $98.24 $102.10 $106.31 Single Family Residential
$34.00 Multi-Family $62.69 $67.12 $71.72 $74.54 $77.61 Multi-Family (Condo or Townhouse)
$24.00 Multi-Family
(Apartment), per unit
$24.00 Mobile Homes, per
unit
Sewer: Proposed Monthly Residential Rates
11 PROPOSED
CURRENT Effective Date Jan 1, 2027 Jan 1, 2028 Jan 1, 2029 Jan 1, 2030 Jan 1, 2031 Commercial Minimum Fee Non-residential Minimum Fee ($/unit; includes 7 HCF of usage) Bakery (includes 4 HCF) $34.00 High Strength $112.05 $119.94 $128.48 $133.32 $138.79 Restaurant (includes 5 HCF) $34.00 Medium Strength $85.87 $91.94 $98.24 $102.10 $106.31 All Others (includes 11 HCF) $34.00 Low Strength $80.13 $85.78 $91.80 $95.38 $99.17 Commercial Flow Rates ($/HCF above minimum) Non-residential Flow Rates ($/HCF for use above 7 HCF) Bakery (above 4 HCF) $3.63 High Strength $15.33 $16.41 $17.58 $18.24 $18.99 Restaurant (above 5 HCF) $2.99 Medium Strength $11.59 $12.41 $13.26 $13.78 $14.35 All Others (above 11 HCF) $2.69 Low Strength $10.77 $11.53 $12.34 $12.82 $13.33 Sewer: Proposed Monthly Commercial Rates
All commercial customers are
proposed to be reclassified
based on pollutant strength
Sewer Bill Survey
12 13
Water & Sewer Bill Survey
Other utilities have planned rate increases over the next five years.
Proposition 218 Procedures
14 The City Council will now open the Proposition 218 Hearing.
Procedures:
Listen to public comments
Collect any additional written protests
Close the public hearing
Count the written protests received from customers and property owners. Only one protest will be counted per parcel.
The City has
4,830 parcels—a
majority protest is
2,416 protests
If valid written protests are not submitted for a majority of the parcels subject to the proposed rates, the Council has the authority to adopt the proposed rates Each year, the City will review its financial standing and potentially increase rates up to the amounts shown on the public notices