Utilities Rate Advisory Commission - Jun 24, 2026

The City of Sacramento Utilities Rate Advisory Commission held a meeting on June 24, 2026, focused primarily on proposed water and wastewater rate adjustments and the associated Proposition 218 process. The Department of Utilities presented a detailed five-year financial outlook showing a significant revenue shortfall and the need for rate increases to address deferred maintenance, regulatory compliance, and capital improvement projects totaling over $2.2 billion. The commission discussed the prioritization of critical projects to mitigate rate impacts, the balance between fixed and volumetric charges, and the inclusion of fleet replacement costs driven by state zero-emission vehicle mandates. The rate study was conducted by Raftelis, an independent consultant, and included legal reviews to ensure compliance and defensibility. Public outreach and Proposition 218 notification plans were outlined, with a public hearing scheduled for December 2026 and City Council vote anticipated in early 2027. Commissioners engaged in detailed discussions on funding strategies, reserve policies, credit ratings, and the impact of the rate adjustments on different customer classes. No votes on rate adoption were taken during this meeting, but a motion to extend the meeting was passed to accommodate the extensive discussion.