The City of Salinas is facing a looming shortfall in its sewer system budget and has advanced a proposal to more than triple its rates.
The current sewer rate, which is about $5 a month per household, hasn’t changed in more than a decade and no longer covers rising maintenance and operating costs. A recent master plan update identified failing infrastructure and other needs.
Without the rate hike, staff members project about a $400,000 shortfall in the upcoming fiscal year and warn that the city could default on existing bond agreements.
During a city council meeting this week, some residents expressed concern about how the rates would be applied for people with accessory dwelling units or ADU’s.
“Now we have ADUs also that need to be taken into consideration,” said Salinas resident Liz Camacho. “I have neighbors building ADUs left and right. They're paying the same rate.”
The proposed hike would increase the monthly rate to about $16 per household, with a built-in 2% annual increase for the next 10 years.
The city said nearly $115 million in sewer system improvements are needed.
Notices about the proposed rate change are set to go out to residents on April 25.
A public hearing and final vote on the increase are scheduled for June.
