2027 Rate Adjustments
Every day, the City of Sacramento Department of Utilities works around the clock to provide clean, safe drinking water and reliable sewer services to homes and businesses.
These systems help protect public health, support our local economy, and preserve the environment.
The City of Sacramento is proposing adjustments to its drinking water and sewer rates, which will help fund critical infrastructure needs and reduce a backlog of unfunded maintenance.
Why rate adjustments now?
Drinking water and sewer rates have remained the same since 2020.
During that time, the cost of operating these systems has risen significantly:
- Inflation has driven up the cost of essential equipment like pipes, pumps, and treatment chemicals.
- Many of Sacramento’s water and sewer pipes are more than 100 years old.
- The City faces a backlog of $2.2 billion in infrastructure maintenance projects. Replacing these aging pipes and facilities is essential to prevent expensive emergency breaks and protect our community from public health risks like sewer overflows.
- Without needed revenue adjustments, there are risks to service impacts, increased emergency repair costs, as well as public health and environmental risks.
What your rates pay for
Your rates fund:
- Collection, treatment, storage and distribution of drinking water to meet strict state and federal safety standards.
- Collection and conveyance of sewage from every home and business in the City that meets strict state and federal standards.
- Maintenance of thousands of miles of pipes, hundreds of pump stations and major treatment facilities.
- Critical improvements to drinking water treatment and sewer systems.
- Independent oversight and regular audits to ensure your rates are spent responsibly.
By law, utility rates are separate from the City’s General Fund.
Your payments can only be used for water and sewer services.
They cannot be used for other City services like police, fire, or parks, and they cannot exceed the City's cost of providing the service.
Proposed rate adjustments
The proposed adjustments are spread over five years to provide predictability for household budgets and ensure all customers pay their fair share based on the costs they place on the system.
Even with these adjustments, Sacramento’s drinking water and sewer rates will remain highly competitive compared to neighboring cities in our region or agencies with similar systems.
Financial assistance
The City offers a rate assistance program for income-qualified households.
Residents who meet the income requirements or participate in SMUD’s Energy Assistance Program may be eligible for a discount on their utility bill.
The Department of Utilities also offers water conservation resources and programs to help you reduce your water use, which can lower water bills.
Process and accountability
The rate adjustment process is governed by California’s Proposition 218 law, which ensures transparency and gives property owners a voice in how fees are set.
- Independent oversight: The Utilities Rate Advisory Commission, a group of Sacramento residents appointed by City Council, reviews technical findings and provides independent oversight of the rate study.
- Independent analysis: Raftelis, an independent consulting firm with more than 30 years of experience, performed a rate study and recommends these adjustments are necessary for the long-term health of our systems.
- Your right to protest: The City will mail a formal notice to every owner of record at least 45 days before the public hearing. This notice will include specific details on how to submit a written protest and/or written objection.
Timeline
- May - December 2026: Public outreach and review by Utilities Rate Advisory Commission
- August 2026: Notices mailed to property owners
- December 2026: Public Hearing
- July 1, 2027: If adopted by City Council, rate adjustment takes effect (City of Sacramento fiscal year 2028)
Contact us
For questions about the proposed rates:
- Call us at 916-808-5454
- Email us at UtilitiesCS@cityofsacramento.org