June 2, 2026 - Tracy City Council Meetings

The City of Tracy held a council meeting on June 2, 2026, which included a significant public hearing on the proposed water rate adjustments for fiscal years 2027 through 2031. The discussion focused on addressing a $2.3 million annual deficit and over $68 million in deferred capital improvement projects for the city's water system. Staff presented a five-year financial plan recommending a 28% to 32% rate increase to maintain system reliability, meet debt coverage requirements, and fund necessary staffing and maintenance. Public comments expressed strong opposition to the steep rate hikes, citing affordability concerns, especially for seniors and low-income residents. After extensive deliberation, the council adopted the lower scenario with a 28% initial increase, approved related reserve policies, and authorized a $1 million interfund loan from the general fund to the water fund. The meeting also covered the adoption of the fiscal year 2026-27 city budget, appointments to the General Plan Advisory Committee, and election policies for the 2026 municipal election. Council members directed staff to explore expanding the low-income utility assistance program and to continue seeking options to mitigate future rate increases.