REPORT TO THE CITY COUNCIL
FROM: PAUL AMICO, PE, Director
Department of Public Utilities
SUBJECT
Title
Actions related to initiating the Proposition 218 process for proposed updates and increases to the schedule of rates for water and wastewater services
Direct City staff to initiate the Proposition 218 process for proposed updates and increases to rates for water and wastewater services
Set a public hearing to consider proposed updates and increases to rates for water and wastewater services on December 3, 2026, at 5:00 p.m.
Body
RECOMMENDATION
The Department of Public Utilities (DPU) recommends that City Council direct DPU staff to initiate the Proposition 218 notice, protest, and hearing process for proposed updates and increases to the schedule of rates for water and wastewater services, and set a public hearing to consider the proposed updates and increases to the rates for water and wastewater services on December 3, 2026, at 5:00 p.m. at City Hall.
EXECUTIVE SUMMARY
The City of Fresno (City) last adopted a rate plan for water utility services in 2015, and a rate plan for wastewater utility services in 2007. The final rate adjustment under the 2015 water rate plan was implemented effective July 1, 2018, and the final rate adjustment under the 2007 wastewater rate plan was implemented effective September 1, 2010. DPU is proposing rate updates and increases for water and wastewater utility services to cover projected operating and maintenance cost increases, to fund capital improvements, and to realign and proportionately distribute costs across the different customer classes in each utility. If adopted by the City Council, the proposed five-year rate plans would become effective January 1, 2027, and the final rate adjustments would be effective on July 1, 2030.
Routinely assessing and evaluating revenue and expenditure projections, specifically analyzing the rates charged for service, is vital to prevent revenue shortfalls that could lead to dis...
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