WATER AND WASTEWATER RATE STUDYCITY COUNCIL MEETING
January 27, 2026
Introduction
The rate study and Prop 218 notice establish the maximum water and wastewater rates; staff recommends lower rates based on the following updates Staff identified $8.65M in funds to cover operating expenses and CIP Staff has assumed we can get more grants for Water CIP as we have already applied for them Based on these changes water rate increase is 8% compared to 23%; wastewater rate increase is 3% compared to 5% as previously proposed 2026 proposed total monthly impact to rates payers is $7.31 per month 2 Water Financial Plan (Proposed Rate Adjustment)
3 Priority, Second Priority, and Third Priority CIP + O&M Proposed Scenario
FY 2026
FY 2027
FY 2028
FY 2029
FY 2030
Total
Effective Date
3/1/2026
1/1/2027
1/1/2028
1/1/2029
1/1/2030
Rate Adjustment (%)
8%
8%
6%
6%
6%
34%
Change in Average Single Family Monthly Bill ($)
$5.29
$5.66
$4.64
$4.94
$5.24
$25.77
Rate Stabilization for Operating Expenses
$2,784,000
$2,000,000
$2,000,000
$1,000,000
$542,426
$8,326,426
In this scenario the City can meet its Trustee coverage requirement and reserve minimums in all years
FY 2026 Monthly Water Single Family Bill Comparison
4 Note: Bill impacts are based on average monthly single family usage (15 ccf). Bill impacts are based on FY 2026 water rates, effective either on 7/1/2025 or 1/1/2026, with the exception of Jurupa Community Services District whose rates are from 1/1/2024 Unlike RUA, based on FY 2026 budgets, West Valley Water District receives $4.4M and Jurupa Community Services District receives $3.0M in property tax revenues annually
Wastewater Financial Plan (Proposed Rate Adjustment)
5 Priority + O&M
Proposed Scenario
FY 2026
FY 2027
FY 2028
FY 2029
FY 2030
Total
Effective Date
3/1/2026
1/1/2027
1/1/2028
1/1/2029
1/1/2030
Rate Adjustment (%)
3%
3%
3%
3%
3%
15%
Change in Average Single Family Monthly Bill ($)
$2.02
$2.08
$2.14
$2.21
$2.27
$10.72
Rate Stabilization for Operating Expenses and CIP
$1,032,000
$3,000,000
$2,000,000
$2,000,000
$866,112
$8,898,112
In this scenario the City can meet its Trustee coverage requirement and reserve minimums in all years This scenario proposes a $6 million debt issuance in FY 2027 to fund CIP and the City will meet its debt coverage requirements in all years
Monthly Wastewater Single Family Bill Impacts
6 Note: Bill impacts are based on FY 2026 wastewater rates, effective either on 7/1/2025 or 1/1/2026.
Conclusion/Summary
7 With the utility tax suspension in 2026 and proposed rate increase the rate payers see a net reduction of $2.4 - $4.1 per month Staff will continue to find additional funding needed to fund capital projects and look at alternative financing Staff recommends the council to adopt these rates to continue providing safe and reliable service to the rate payers
Next Steps
Receive Feedback
Consider Adopting the Proposed Rates
8 Sanjay Gaur
Founder / President
[email protected]
Nancy Phan
Principal Consultant
[email protected]
Grace Hunzicker
Project Analyst
[email protected]
9