The West Sacramento City Council will conduct a Public Hearing at 7 p.m. Wednesday, March 18, 2026, to consider adopting proposed rate adjustments to the City’s current water and sewer service rates and charges. All interested people are invited to attend the Public Hearing. The City Council will hear and consider all oral testimony and written materials submitted regarding the proposed rate increases at the Public Hearing. 

2026

The City hosted two informational Open Houses in preparation for the Public Hearing. City staff and financial consultants answered questions one-on-one. The Open Houses were opportunities to gain insight into system improvements and understand how proposed rates may impact your bill. Residents also learned more about water and sewer service, proposed rate increases, and the investments needed to ensure reliable service for years to come.

2025

During the 2025 meetings, attendees had access to subject matter experts to learn about essential City utility services, proposed changes to water and sewer rates, and how their bill may be impacted.

A utility rate study is an evaluation of the costs needed to provide utility services to customers and an analysis of the customer rates to ensure they are fair and reasonable. 

The City of West Sacramento partners with an independent financial consultant to conduct the study. Factors considered in a utility rate study may include the cost of providing service, the revenue needed to cover those costs, the number of customers and their usage patterns, and the local, state and federal regulations that affect the utility provider.

Utility rate studies are typically conducted every three to five years.

The results of a utility rate study are used to determine whether utility rates should be adjusted, and if so, by how much. The results may also help to inform the development of rate structures that support policy goals such as environmental and fiscal responsibility. 

A rate design is the structure of the rates charged to customers. It includes the types of charges, such as fixed fees or variable charges, and the levels of those charges.

The City’s water and sewer utilities are primarily funded through the rates customers pay via Enterprise Funds, which are separate accounts from the City’s General Fund. A City Enterprise Fund is a dedicated account where money collected from customers for specific City services—such as water or sewer—is used exclusively to pay for those services. Enterprise funding ensures the City’s ability to provide high-quality, reliable water and sewer services in a way that values our environment and community, while sustaining resources. The City is committed to good governance, fiscal accountability and transparency. 

No. By law, the City cannot charge customers more than the actual cost of providing the service. Each utility is self-funded, so its revenues must equal expenditures. The City’s water and sewer systems are owned by the City and governed by the City Council; the City does not have shareholders or pay dividends.

Rate studies help the City make sure its utilities have sufficient funding to meet current and future needs. The industry standard is to conduct a comprehensive rate study every three to five years. The City’s current rates were implemented July 1, 2021, and they have not kept pace with the rising costs of maintaining and operating the utility systems. In 2023, the City initiated a rate study that was later put on hold until mid-2025. To maintain service levels and ensure the long-term reliability of utility infrastructure, rate adjustments will be needed in 2026.

With updated rates, the City will be able to plan and fund the level of annual capital reinvestment required to upgrade outdated equipment and replace infrastructure. These adjustments will also help maintain financially and operationally sustainable water and sewer services. Rates must continue to cover the full cost of service and maintain prudent reserves for emergencies. 

It’s important for the City to regularly evaluate the cost of providing high-quality, reliable water and sewer services. Given the increasing requirements for infrastructure maintenance and improvements, water quality compliance, and rising operational costs, rate adjustments must be considered.

Revenues from the current rates are no longer fiscally sustainable. Rates need to keep pace with the costs of operating, maintaining, and repairing the systems, as well as replacing aging infrastructure essential to service delivery.

The City is conducting a much-needed water and sewer rate study to develop a new five-year rate structure that will financially support the utilities’ current and future needs. The City’s rates are based solely on the actual cost of providing water and sewer services. Adjustments are made only when necessary to cover operating and capital expenses and to maintain the reliability of the systems.

Proposed rates are determined by evaluating and analyzing cost increases related to operation and maintenance, water purchase and treatment, wastewater collection, capital projects, general inflation, and material and supply expenses. 

Under California’s Proposition 218 local municipalities must follow specific procedures when proposing rate adjustments for services such as water and sewer. Property owners have the right to protest proposed rate increases. Proposition 218 requires that ratepayers receive a public notice outlining the proposed rate adjustment, the protest process, and the date of the City Council Public Hearing.

Customers are given at least 45 days to submit written protests. During the Public Hearing, the City Council reviews all customer protests and considers whether to approve or deny the proposed rate adjustments. If a majority of property owners submit valid protests, the rate adjustments will not be implemented.

The City is committed to using industry best practices to ensure we thoughtfully plan for the future. Utility rates are an investment in our infrastructure today to secure our systems for the future. Revenues from water, sewer, and trash rates support the ongoing operation and maintenance of services, providing nearly 55,000 residents with continuous, dependable service. Rates cover the costs associated with delivering these essential utility services.

No, Enterprise Funds can only be used for the specific Enterprise Fund’s projects (ie: water revenues may only be used for water projects).

The City has hired a consulting firm with expertise in California utility rate studies. Their work includes developing long-range financial plans for water, wastewater, and solid waste services as well as assisting with the Proposition 218 process and public hearing for rate adoption. The rate study involves several steps, including data evaluation, technical analyses, development of customer rates, and assessment of the impacts on customers. Once proposals are determined, the complete study is documented in a Study Report to serve as part of the City’s administrative record.

Under California law, all parcels connected to a utility system must be given notice of any proposed rate changes, along with the right to protest. The notice includes the proposed rates, the basis for their calculation, the reason for the increase, public hearing details, and instructions for submitting a protest. After a protest period of at least 45 days, the City Council conducts a Public Hearing. If a majority of property owners do not submit protests, the City Council may adopt the rates as proposed.

The City will also host a webinar and multiple open houses to give ratepayers the opportunity to learn about, discuss, and provide feedback on proposed rates. Information will be mailed to residents and updated on the City’s website.

For more information, please email utilityrates@cityofwestsacramento.org. 

The proposed water and sewer rates are subject to a majority protest process under Proposition 218.

Any record owner of a property that receives water and/or sewer service from the City or occupant who is directly liable for payment of the City’s water and/or sewer service charges (Customer of Record) may submit a Written Protest against the proposed rate adjustments for water and/or sewer service. Owners of multiple parcels may file one Protest for each parcel owned within the City’s service area. Only one Written Protest against the proposed rate adjustments for the water or sewer service charges per parcel will be counted in determining whether a majority protest exists.

Written PROTEST Procedures

A Written Protest must include all of the following to be counted in determining whether there is a majority protest (50% + 1):

• Clearly stated opposition to the proposed rates and charges for the water service, sewer service, or both, as applicable;
• Name of the property owner of record or account holder who is submitting the Protest;
• Identification by street address or other clear identification of the property for which the protest is made; and
• Signature and legibly printed name of the record property owner or customer who is submitting the Protest.

Written Protests may be delivered to the City Clerk during the Public Hearing. In advance of the Public Hearing, written Protests may be mailed or personally delivered to the City Clerk at the Submittal Location shown below by 5 p.m. on March 18, 2026, or submitted in person at the Public Hearing, prior to the close of the hearing. No e-mailed or faxed Protests will be accepted, nor late postmarked Protests or Written Protests submitted after the conclusion of the Public Hearing.

At the Public Hearing, the City Council will accept and consider all Written Protests and hear all oral comments on the proposed rate adjustments. However, oral comments will not be counted in determining the existence of a majority protest.

What is a Majority Protest? The existence of a majority protest will be determined separately for proposed water rate adjustments and proposed sewer rate adjustments. A majority protest against the proposed water or sewer rate adjustments will exist if at the end of the Public Hearing there are written protests submitted and not withdrawn that represent a majority of the parcels (50% +1) that receive water or sewer service, as applicable. The City Council cannot adopt proposed rate adjustments if a majority protest exists.

Read the full Notice

Written OBJECTION Procedures - Exhaustion of Administrative Remedies

How do I preserve my ability to judicially challenge the Proposed Rates? Pursuant to California Government Code Sections 53759.1 and 53759.2, a person or entity will be prohibited from bringing a judicial action or proceeding alleging that the proposed rates do not comply with Proposition 218 unless that person or entity has submitted a Written Objection to the proposed rates according to the procedures described below. A Written Objection is known as an Exhaustion of Administrative Remedies requirement and serves a separate purpose (detailed herein) than a Written Protest. To exhaust your administrative remedies, your Written Objection must include the specific grounds for alleging noncompliance of the proposed rates with Proposition 218.

Written Objections may be emailed, mailed, or personally delivered to the City Clerk at a Submittal Location provided below and must be received by the City Clerk by 4 p.m. on Thursday, February 19, 2026. Note that this deadline for submitting a Written Objection is earlier than the deadline for submitting a Written Protest.

A failure to timely object to the proposed rate adjustments in writing bars any right to challenge the rate adjustments through a legal proceeding. The City will prepare written responses to all timely Written Objections for the City Council’s consideration. Although a Written Objection and a Written Protest serve different purposes, a Written Objection that also complies with the requirements for a Written Protest (see enclosed, “How to Protest Proposed Rate Adjustments”) will be counted as a Written Protest in determining whether there is a majority protest against the proposed rate adjustments.

Read the full Notice

Under Proposition 218, a written protest is how property owners or customers formally oppose the proposed rate increases. If more than 50% (a majority) of the property owners or customers protest, the City cannot adopt the new rates. While customers are welcome to provide oral comments for the Council’s consideration at the Public Hearing on March 18, 2026, oral comments will not be counted in determining the existence of a majority protest. 

A written objection, however, must be submitted in writing by February 19, 2026, and must state specific legal or factual reasons why they believe the rates may not comply with the law. The objection does not stop the rate increases by itself, but if someone does not submit a written objection on time, they lose the right to challenge the rate adjustments in court. A written objection can also count as a protest if it meets all protest requirements.