The Watsonville City Council on Tuesday will consider a series of utility rate increases over the next five years to fund infrastructure upgrades they say will help meet new regulations and keep water, wastewater and solid waste systems financially stable.
A new rate study presented to the City Council recommends annual increases of 5% for water, 2% for solid waste, and a phased increase for wastewater—16% in 2027, 12% in 2028 and 6% annually through 2031.
City staff say the increases are driven by rising costs, aging infrastructure, and major capital projects, including water treatment upgrades to meet state chromium standards and improvements at the wastewater treatment plant.
Officials are also looking at roughly $57 million in upgrades and projects at the treatment plant.
In addition, state law Senate Bill 1383 mandates reducing organic waste, adding up to higher operating costs.
For a typical single-family household, monthly bills would increase by about $13 to $14 in the first year, depending on usage.
The council is being asked to begin the Proposition 218 process, which includes notifying ratepayers and holding a public hearing on May 26. If approved, the new rates would take effect July 1.
Because these utilities operate as enterprise funds, they rely almost entirely on customer rates—not taxes—for revenue.
Actual bill impacts will vary by usage, but typical single-family households are projected to see increases of about $13–$14 per month in the first year
•••
The City Council will meet at 4:30 on Tuesday in the council chambers on the 4th floor of the civic plaza building. Consideration of the above item begins at 6pm. For informatio, visit bit.ly/4uHfnjn
