DEPARTMENT OF UTILITIES ANNOUNCES CHANGE TO PROPOSED RATE ADJUSTMENTS

POSTPONING PROPOSED STORM DRAINAGE RATE ADJUSTMENTS FOR ONE YEAR

Washington, D.C. – January 20, 2015 – (RealEstateRama) — The City of Sacramento Department of Utilities notified customers in December about proposed rate adjustments for water, wastewater and storm drainage services. The City is announcing the need to postpone proposed storm drainage rate adjustments until 2017 but continuing to move forward with water and wastewater rate proposals.

There are several other ballot measures that will be proposed over the next few months, including an expanded Sacramento Area Flood Control Agency assessment. SAFCA’s measure is also critical to increasing community flood protection. The City wants to avoid confusing citizens with two measures at the same time aimed at flood prevention.

“We want customers to understand the condition of our storm drainage system, challenges and budget realities,” said Bill Busath, director of the Department of Utilities. “Over the next year, we will conduct extensive outreach to help customers learn more and understand their critical role in improving the system.”

The City will mail a new notice to customers when storm drainage rate adjustments are proposed late this year or in early 2017.

Utilities will present the proposed water and wastewater rate adjustments, shared with customers in the December mailed notice, to the Sacramento Utilities Rate Advisory Commission during a public hearing. The hearing will take place Wednesday, January 27, at 5:30 p.m. at City Hall. Utilities plans to present the proposed rates to the City Council in March. If approved by City Council, rate adjustments for water and wastewater will be effective on July 1, 2016.

The proposed water and wastewater rate adjustments will help the City complete critical replacement and improvement projects to keep the water and wastewater systems safe, reliable and financially stable. If the proposed adjustments are adopted, the average residential customer’s monthly bill for water and wastewater services will increase by $6.59 in year one, $7.23 in year two, $7.93 in year three and $8.70 in year four. The increases are equivalent to the cost of an extra two gallons of gas per month. But the investment will be directed to the core of maintaining a modern, civilized society – a safe and reliable water and sewer system.

The proposed water rate adjustment will fund projects to complete the water metering program by 2020, four years ahead of the state-mandated deadline of January 2025. The City is fast-tracking the program due to the extraordinary drought, to improve water conservation and establish a more fair and equitable billing system for all city residents.

The proposed wastewater rate adjustment will meet regulatory requirements by funding critical improvements to the City’s separated and combined sewer system pipelines, a large underground combined wastewater storage facility in the McKinley Park area and significant upgrades to customer service and billing programs.

Customers, stakeholders and interested organizations are encouraged to contact Utilities at (916) 808-5454 and visit www.YourUtilitiesYourCommunity.com for more information.

Contact: Department of Utilities, (916) 808-5454

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