City of West Sacramento officials and their rate‑study consultant told residents on Oct. 28 that updated water and sewer master plans identify roughly $143.6 million in capital needs over the next five years and that current utility rate revenues do not cover projected operating and capital costs.

"By state law, rates can only be set for up to 5 years at a time," Rebecca Scott, Director of Public Works Operations and Maintenance, said at the start of the webinar. Scott said the city last adjusted water, sewer and refuse rates on July 1, 2021, and that staff intend to return to a formal adoption process in spring 2026 following public workshops and required Proposition 218 notifications.

The master‑plan recommendations presented by city staff include a five‑year water capital improvement program (CIP) of about $89.5 million, prepared with Zanjero, and a five‑year sewer CIP of about $54.1 million, prepared with Black & Veatch. Amber Wallace, senior civil engineer in the capital projects department, walked through recent projects and shovel‑ready needs, including a high‑service manifold that is design‑complete but needs approximately $7.2 million for construction and a South Sewer Lift Station project that has $2.0 million in design spending to date and an estimated $6.0 million construction need.

Gabe Sasser, project manager with HF&H Consultants, summarized the cost‑of‑service process the city is using to set rates: a revenue requirement projection, allocation of costs among customer classes, rate design and bill‑impact evaluation. Sasser said the city’s expense projections—operations and maintenance, existing and potential future debt service, and pay‑as‑you‑go capital—exceed projected revenues at current rates and that using reserves alone is not a long‑term solution.

Sasser also described current rate structures: residential sewer collection is billed as a fixed monthly charge per dwelling unit, multi‑family residential rates are lower to reflect lower per‑unit sewer flows, and commercial accounts face a fixed account charge plus a variable usage component. He noted that Sacramento Area Sewer District treatment charges are billed separately by that district and are not under the city’s control.

City staff and the consultant showed regional bill comparisons indicating West Sacramento’s combined water and sewer bills remain relatively low among nearby agencies, but they emphasized that rates have not been raised since 2021 and will likely need adjustment to fund the identified capital work and meet regulatory requirements such as anticipated additional Title 22 sampling related to PFAS and atrazine.

Staff described recent and ongoing maintenance and capital work that underpins the CIP estimates: replacement of roughly 65 water services, numerous water mains and meters, about 168,000 feet of sewer cleaning, SCADA monitoring upgrades, raw water intake work ($1.25 million), and earlier cured‑in‑place sewer rehabilitation ($4.7 million) and Linden Acres water main replacement and meter retrofits ($4.0 million). Amber Wallace said some projects include meter retrofits and lateral replacements to improve long‑term reliability and reduce emergency repairs.

City sustainability staff outlined customer options to limit bill increases: Ryan Burnett, the city’s sustainability manager, described a free online water portal that provides leak alerts, a $150 smart‑controller rebate for irrigation controllers, a $300 'Lawn B Gone' mulch/compost rebate, and free house calls to inspect meters and irrigation schedules. Burnett encouraged residents to check sprinkler run times, test for leaking toilets and sign up for the portal, citing an example where a single leaking toilet used about 65,000 gallons while a house was vacant.

Next steps and public process: Scott said the Environmental & Utilities Commission will hold a workshop on Nov. 12 and the City Council will review proposed rate scenarios on Dec. 3. If the council authorizes proposed rates, the city plans to mail the legally required Proposition 218 notices in early January and hold community meetings in late January or February. A tentative public protest hearing is scheduled for March 18, 2026; staff said rates would take effect after that hearing, tentatively April 1.

Questions from attendees covered timing, the relationship between property taxes and utility rates, low‑income discounts and whether development pays for capacity. On assistance, staff said a low‑income discount program application is available on the utility billing page and by contacting the utility billing office. On developer contributions, staff explained that capacity or connection fees require development to pay for the incremental capacity it creates and that new customers then join the rate base.

The city posted a rate study web page with background materials, a rates‑101 video, outreach dates and a forthcoming bill calculator; staff said the webinar recording will be posted by the end of the week. The city encouraged residents to attend the Nov. 12 and Dec. 3 workshops and to watch for mailed Proposition 218 notices if council authorizes proposed rates.