Frequently Asked Questions
Below are frequently asked questions about the proposed 2027 drinking water and sewer rate adjustments.
Background
What services does the Department of Utilities provide?
The Department of Utilities provides drinking water, storm drainage and sewer services to residents and businesses in the city of Sacramento.
Depending on the services they receive and the location of their property, customers may see other charges on their City utility bill, including solid waste and regional sewer services; and/or, fewer charges if the property is in an area of the city where services are provided by other agencies, such as SacSewer.
If you're unsure which services you receive, contact our customer service.
Why is the City proposing drinking water and sewer rate adjustments?
The City has kept drinking water and sewer rates the same since 2020.
Since then, the cost of operating these utility systems has gone up significantly, including construction, labor and materials.
Inflation has increased costs by about 25% and the City now has $2.2 billion in unfunded maintenance.
Many of these projects are to replace old infrastructure like the 100-year-old pipes found throughout Sacramento.
Old infrastructure also tends to fail unexpectedly; emergency repairs cost an average of $1.5 million annually.
To keep the system safe and reliable -- which includes upgrades to drinking water and sewer facilities, as well as new projects to replace/improve these systems -- the gap between costs and revenues must be closed.
What do my water and sewer rates pay for?
Your rates fund the 24/7 operation of City drinking water and sewer systems; things like getting water from your tap or flushing the toilet.
Rates pay for:
- Collection and treatment to make water from rivers and wells clean and safe to drink
- Distribution of clean drinking water to homes and businesses 24/7
- Collection of sewer water 24/7 from homes and businesses
- Primary treatment of sewage/wastewater from some parts of the system
- Conveyance of sewage/wastewater to a regional wastewater treatment facility
By law, these funds can only be used for the direct cost of drinking water and sewer services.
The City does not earn a profit from these rates and they cannot be used for other City services, like police, fire, roads or parks.
What projects will the rate adjustments pay for?
The City has identified more than 400 infrastructure needs across the water and wastewater systems and prioritized about 250 of the most critical items for this rate period.
These include rehabilitating drinking water reservoirs, some of which are more than 70 years old, upgrading water and wastewater treatment facilities, and improving system reliability so customers can continue to rely on them 24/7.
Every dollar collected through rates goes directly back into the utility system.
Utility funds are legally separate from the City's General Fund and cannot be used for other purposes.
When was the last time rates were changed?
Drinking water and wastewater rates have remained the same since 2020.
While rates for other services were adjusted recently -- like solid waste and storm drainage -- the Department of Utilities kept water and sewer rates the same for six years.
Bill impacts
How much will my monthly bill increase?
For a typical single-family household, the combined increase for drinking water and sewer is expected to be about $11 per month in the first year starting July 1, 2027, which is about 37 cents per day.
Are these increases happening all at once?
No. The proposed adjustments are spread over five years to reduce the impact and provide predictability for household budgets.
The table below shows the proposed increases over time for a typical, single-family home:
| Year | Drinking Water | Sewer |
|---|---|---|
| Current | $54.47 | $31.65 |
| July 1, 2027 | $61.39 | $33.22 |
| July 1, 2028 | $65.22 | $38.54 |
| July 1, 2029 | $69.44 | $43.94 |
| July 1, 2030 | $73.11 | $49.22 |
| July 1, 2031 | $78.85 | $54.15 |
How do Sacramento's rates compare to other cities?
Even after the proposed adjustments, Sacramento's drinking water rates are expected to remain at or below the average for the region.
The table below shows drinking water agencies in the region.
Numbers have been rounded to the nearest whole dollar and reflect the initial year of the proposed adjustment compared to current rates for other agencies.
| Agency | Rate |
|---|---|
| Elk Grove | $101 |
| Sac Suburban Water District | $100 |
| West Sacramento | $76 |
| Stockton | $69 |
| Roseville | $68 |
| Sacramento (proposed) | $61 |
| Sacramento (current) | $51 |
| Sac County Water Agency | $43 |
Sewer rates are also expected to remain at or below agencies with similar systems.
It's important to note that the City's sewer system includes a special type of "combined" system, which is one of only four on the West coast and is more expensive to operate.
Combined systems collect and move stormwater and sewage in the same pipe.
No other agencies in the immediate region have a similar type of system; most have "separated" systems, where stormwater and sewer flow through different pipes.
The table below shows agencies that have "combined" sewer systems.
Numbers have been rounded to the nearest whole dollar and reflect the initial year of the proposed adjustment compared to current rates for other agencies.
| Agency | Rate |
|---|---|
| Seattle | $187 |
| San Francisco PUC | $157 |
| Portland | $110 |
| Sacramento (proposed) | $80 |
| Sacramento (current) | $76 |
What has the City done to keep rates low?
The Department of Utilities since 2020 has taken significant steps to reduce costs and maximize ratepayer value, including:
- Refinancing debt, which has generated nearly $40 million in savings
- Securing about $50 million in grant funding
- Completing projects that reduce energy needs
- Increasing efforts to recover costs, such as overhead or administrative costs
Will people who use less water see lower water bills?
Yes.
The proposed rate structure shifts more of the water bill toward the amount of water you actually use, rather than a flat charge.
Customers who use less water will likely see smaller bills.
The City offers resources and incentives for people to use less water.
The new structure is designed to support water conservation while still generating enough revenue to maintain and improve the system for everyone.
Will financial assistance be available?
Yes.
The City offers a rate assistance program for income-qualified households.
If you meet the income requirements or already participate in SMUD’s Energy Assistance Program, you may be eligible for a discount on your utility bill.
Accountability and oversight
Who decides how the money is spent?
Rate adjustments are reviewed by the Utilities Rate Advisory Commission, a group of Sacramento residents appointed by the Mayor and City Council who study technical findings and provide independent oversight.
Raftelis, an independent consulting firm with more than 30 years of experience, conducted the rate study.
The City also undergoes regular audits to ensure every dollar is spent responsibly.
What happens if these rate adjustments are not approved?
Delaying these investments means they will cost more in the long run.
If a rate adjustment is not approved, the City would face:
- Higher emergency costs: Fixing a broken pipe in an emergency is far more expensive than replacing equipment before it breaks.
- Public health risks: Aging systems increase the risk of water main failures or sewage flowing onto streets or into waterways.
- Lower credit ratings: If the City’s utility cannot cover its costs, it becomes more expensive for the City to borrow money for large infrastructure projects to keep systems running reliably.
Do rate revenues pay for other things?
No. Utility funds are legally separate from other City services, such as police, fire or parks.
All funds collected from drinking water and sewer rates are reinvested directly into water and wastewater systems.
These funds cannot be redirected to other City programs or services.
Process
What is Proposition 218?
Proposition 218 (California Constitution Article XIII C and Article XIII D) is a part of California law that protects utility customers by requiring transparency in how local governments set fees.
It requires the City to mail a formal notice to every property owner at least 45 days before a public hearing.
How does the Prop 218 protest process work?
Under Prop 218, every owner of record will receive a written notice by mail at least 45 days before a public hearing for a rate adjustment.
If an owner of record believes the proposed rates should not be adopted, they may submit a written protest.
If a majority of owners of record submit written protests, the City cannot adopt the proposed rates.
Details on how to submit a protest will be included in the mailed notice.
How can I be involved?
There are several ways to participate:
- Read the notice: You will receive a formal notice in the mail with specific details about the proposed rates.
- Public hearing: You can give your feedback to the Utilities Rate Advisory Commission at the official public hearing.
- Submit a protest: Under Prop 218, property owners have the right to submit a written protest. If a majority of affected parcels -- 50% plus one -- submit a valid written protest, the rates cannot be adopted.
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