Combined, a typical monthly bill would rise from $107.82 to $158.95 over five years, an increase of about 47 percent. Designed by Freepik

YUBA CITY, CA (MPG) – Residents could see sharply higher water and sewer bills as city officials work to address rising costs, aging infrastructure and long-term system needs.

The Yuba City Council on March 17 authorized the Proposition 218 process, beginning the required notification period for water and wastewater rate adjustments.

Utilities Director Phil Marler recommended the rate plan to address projected deficits, rising operating costs and long-term infrastructure needs.

If approved, increases would be phased in over five years beginning Nov. 1, 2026, affecting approximately 20,000 customers citywide.

“Much of our infrastructure is over 50 years old, and our current revenues do not fully cover operations, capital replacement and long-term needs,” Marler said.

For a typical single-family household, monthly water service for a standard 1-inch meter would increase from $42.59 to $50.67 in the first year, part of a roughly 54 percent increase over five years. Wastewater service would rise from $65.23 to $67.56 initially, reaching $93.36 by the end of the period, a total increase of about 43 percent.

Combined, a typical monthly bill would rise from $107.82 to $158.95 over five years, an increase of about 47 percent.

City officials said the increases are necessary because current revenues no longer cover the full cost of providing water and wastewater services around the clock.

“These systems operate 24/7 to protect public health and ensure regulatory compliance,” Marler said.

Under California law, water and wastewater utilities are structured as enterprise funds, meaning they must be self-supporting and funded by ratepayers rather than subsidized by other city revenues.

Maler said water and wastewater rates were last adjusted in 2016. Since then, inflation, energy costs, materials and labor have increased significantly while regulatory requirements have continued to become more stringent. The proposed rates are intended to close that gap between revenue and expenses while also funding major infrastructure improvements over the next five years.

Water system projects are expected to total about $39.4 million, including pipeline replacements and upgrades to treatment facilities. Wastewater improvements are projected at about $88.9 million, including a $61.8 million state-mandated project tied to the city’s discharge system into the Feather River.

“Rate adjustments stabilize the fund and protect long-term reliability,” Marler said.

Financial projections show the water system will require roughly $9 million more annually by the end of the study period, while wastewater operations will need an additional $15.2 million per year to remain sustainable.

Before any increases can take effect, state law requires a Proposition 218 protest process. Property owners will have 45 days to submit written protests, which must be received before the close of the public hearing. If a majority of affected ratepayers submit formal protests, the increases cannot be adopted.

The public hearing is scheduled for 6 p.m. May 19 at City Hall, 1201 Civic Center Blvd. 

If approved, the new rates would be implemented in annual steps beginning in November, appearing on customer bills starting the following January.