Sacramento Utilities Rate Advisory Commission Meeting – June 24, 2026
Sacramento Utilities Rate Advisory Commission Meeting – June 24, 2026
The Utilities Rate Advisory Commission (URAC) met on Wednesday, June 24, 2026, from 5:31 PM to 7:44 PM to discuss proposed water and wastewater rate adjustments and the Proposition 218 process. The meeting included a detailed presentation from the Department of Utilities (DOU) staff and a consultant from Raftelis, followed by commissioner questions and public testimony. No formal vote was taken on the rate proposal; it was received for comment.
Consent Calendar
- Approval of March 25, 2026 Meeting Minutes – Unanimously approved (12-0, with Commissioner Srirama Tanikella absent).
Public Comments & Testimony
- Viet Long Nuen (late speaker slip) expressed concern about the impact of rate increases on the Utility Rate Assistance Program (SURA), asking about funding, eligibility, and potential cost increases. Staff responded that SURA is funded by Measure U (a general fund tax) and that eligibility remains unchanged, with an automated enrollment process for qualifying low-income customers. The benefit provides a 40% reduction on utility bills. No additional public comments were received.
Discussion Items
- Water/Wastewater Rate Adjustments and Proposition 218 Overview – DOU Director Dalia Fodd presented a five-year financial forecast showing significant deficits: the water fund faces a $36 million gap in FY 2026, and wastewater is similarly stressed. Deferred maintenance totals $875 million for water and $1.32 billion for wastewater. The last rate increase was in 2020, and the last council vote on rates was in 2017. A rate increase is needed to cover operational costs, capital projects, and reserve requirements (120 days working capital, one year minimum capital reserve). Staff highlighted that the city has taken prudent steps, including a third-party rate study by Raftelis, a city auditor review, and independent legal review. Consultant Brian Bass (Raftelis) explained the cost-of-service methodology, Proposition 218 process, and new legislation AB 2257, which adds transparency by requiring written objections with reasons. A prioritization process narrowed 426 projects to 255 critical priority one projects to mitigate rate increases. The proposed residential and commercial rates were shown over five years, with a shift in fixed-to-volumetric revenue recovery from 60% fixed/40% volumetric to 53% fixed/47% volumetric, aligning with cost of service. Examples of capital projects were provided: groundwater wells, reservoir repairs, a 24-inch transmission main replacement, treatment plant rehabilitation, pump station upgrades, SCADA improvements, and cyber security measures. Fleet replacement costs ($40 million for 277 vehicles to meet CARB regulations) were also included. Commissioners raised questions about project prioritization, the fixed vs. volumetric charge rationale, legal defensibility against litigation, bond credit rating (AA+ for water, AA stable for wastewater), the impact of possible regulatory changes on fleet costs, and the utility rate assistance program. Staff and the consultant addressed each question.
Key Outcomes
- No vote on the rate proposal – The item was presented for receive and comment only.
- Consent Calendar – Approved unanimously.
- Motion to Extend Meeting – Passed unanimously to continue beyond the two-hour mark.
- Next Steps: The rate study will be finalized in July 2026. Proposition 218 notices will be mailed to property owners in August 2026. A robust community outreach plan (including briefings, targeted meetings, bill inserts, and an online rate calculator) will be conducted. A public hearing is scheduled for December 2026 at URAC, followed by a city council vote in early 2027. New rates are expected to take effect July 1, 2027.
Commissioner Comments – Ideas and Questions
- Commissioner Olson expressed interest in future site visits to DOU facilities, and staff offered to arrange tours upon request.
- No other commissioner comments were made beyond those during the discussion item.
Meeting Transcript
There you go. Uh good evening and welcome to the Wednesday, June 24th, 2026 meeting of the Utilities Rate Advisory Commission. The meeting is now called to order. Will the clerk please call the role to establish a quorum? Yes, thank you, Chair. Commissioners, if you can please unmute your microphones. Commissioner Tanakela is absent. Commissioner Gasperd. Present. Commissioner Zito. Commissioner Burdock. Present. Commissioner Steinbaum. Here. Vice Chair Nelson. Here. Commissioner Rogers. Here. Commissioner Chambey. Present. Commissioner Cook. Present. Commissioner Olson. Here. Commissioner Eberly. Present. Commissioner Johnson. Here. And Chair Evans. Here. Thank you. We have a quorum. I'd like to remind members of the public in chambers that if you'd like to speak on an agenda item, please turn in a speaker slip before the item begins. After the item is called, we will no longer accept speaker slips. You will have two minutes to speak once you are called on. We'll now proceed with today's agenda. Okay. Well, my acknowledgement. Okay. We've got the land acknowledgment. So please rise if you're able for the opening acknowledgments in honor of Sacramento's indigenous people and tribal lands. See the original people of this land, the Nissanon people, the Southern Maidu Valley and Plains Mi Walk, Patlan Win Tun peoples, and the people of the Wilton Mancheria, Sacramento's only federally recognized tribe. May we acknowledge and honor the native people who came before us and still walk beside us today on these ancestral lands by choosing to gather today together today in the active practice of acknowledgement and appreciation for Sacramento's indigenous people's history, contributions, and lives. Thank you. Please remain standing for the Pledge of Allegiance. Okay. Next is approval of the consent calendar. Clerk, are there any members of the public who wish to speak on the consent calendar? Thank you, Chair. We do not have any speakers for the consent.
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