The City’s Wastewater Enterprise is funded in large part by the wastewater (sewer) rates you pay on your monthly utility bill. Your payment ensures the City’s ability to deliver high-quality, reliable wastewater (sewer) service in a manner that values our environment and community, and sustains the resources entrusted to our care. The City of Tracy is committed to good governance, fiscal accountability, and transparency, with systems and policies in place to earn the trust of our customers. 

No. By law, the City cannot charge customers more than what it costs to provide the service. Our wastewater system is owned by our customers and governed by the City Council; the City does not have shareholders or pay dividends.

Rate studies are conducted as an industry best practice to ensure that a City’s financial health is maintained, and that the City is setting a course toward meeting future financial obligations. The industry standard is to perform comprehensive rate studies every three to five years. A rate study was planned several years ago but was postponed during which time the pandemic happened.

The Wastewater Enterprise is self-funded, so its revenues must equal its expenditures. Wastewater rates must cover the cost of service and maintain prudent reserves in case of an emergency, such as an earthquake or wildfire, that could damage major critical infrastructure like the collection pipes that transport the wastewater to the treatment plant. With wastewater (sewer) rate adjustments, the City will be able to substantially increase the annual level of capital reinvestment needed to upgrade aged-out infrastructure and provide financially and operationally sustainable wastewater (sewer) and future recycled water services.

The City has not raised wastewater rates since 2013 and revenues from the current rate structure are not fiscally sustainable. Water and wastewater services are experiencing the same global impacts of inflation. The cost for chemicals necessary to treat the wastewater are rising as well as parts to repair equipment.  Rates must keep up with costs to operate the system. Many parts of our wastewater (sewer) system are about 70 years old and beyond their useful life. The system needs continual repair, replacement, and upgrades to minimize the risk of overflows, blockages, and other problems. Further investment ensures our wastewater (sewer) system continues to protect public health.

Our rates are based upon the actual costs of providing wastewater (sewer) service to you, nothing more. Rates increase when necessary to cover operating and capital costs to maintain the City’s wastewater system.

Proposed rates are determined following evaluation and analysis of cost escalations related to operation and maintenance, wastewater treatment, capital project costs, general inflation, and material cost increases. California’s Proposition 218 requires local municipalities to follow certain procedures when proposing a rate adjustment to services such as wastewater (sewer) services. A property owner has an opportunity to protest the proposed rate increases if they feel they are unwarranted. Under Proposition 218, ratepayers will receive a public notice detailing the proposed rate adjustment, petition process, and the City Council Public Hearing date. Customers have 45 days to petition rate adjustments through a written process. In the Public Hearing, the City Council will review customer petitions and consider approving or denying rate adjustments. Should the City receive a majority protest from water customers, rate adjustments will not be implemented.

No, Wastewater Enterprise Funds can only be used on wastewater projects.

If rates are not raised, the City would need to review the pressing needs of our aging systems and prioritize those that are most critical to ensure public and environmental health. We would be forced to defer major infrastructure projects, which would, in turn, leave our existing systems vulnerable. These investments are needed now. Deferring until later will only guarantee higher costs and possible increased regulatory oversight by permitting agencies.

The City is partnering with Raftelis Inc., a consulting firm with expertise in water and wastewater rate studies in California and across the country. Their scope of work includes developing long-range financial plans for wastewater service and assisting with the California Proposition 218 process and public hearings for rate adoption. The rate study consists of a series of steps involving data evaluation, performing technical analyses, deriving customer rates, and understanding customer impacts of any modifications. Once a rate proposal is determined, the complete study is documented in a Study Report to serve as part of the City’s administrative record.

In California, all parcels connected to a wastewater (sewer) system must be given notice of any rate changes with the ability to protest the proposed rates. The notice details the proposed rates, the basis for calculating the proposed rates, the reason for the proposed rate increase, the details of the public hearing, and the ratepayers’ or property owners’ right to protest. After a protest period of no less than 45 days, the City Council can conduct a Public Hearing. Absent a majority protest to the rate proposal, the City Council may choose to adopt the rates as noticed.

The City is committed to using industry best practices to ensure we thoughtfully plan for the future. Wastewater (sewer) rates are an investment in our infrastructure today to secure our system’s future. Revenues derived from wastewater (sewer) rates ensure the continuity of operations and reliable service delivery to nearly 100,000 people who live, work, and visit Tracy. As an example, wastewater rates pay for:

• Maintenance and repair of critical infrastructure, such as pipelines and wastewater treatment facilities
• Maintaining 465 miles of sewer pipelines to ensure reliability
• Maintaining more than 23,000 service connections
• Replacing and repairing aging infrastructure (some pipes are over 70 years old)
• Hiring and retaining highly skilled, qualified, and licensed staff to operate the wastewater system

We recognize that affordability is an issue for our communities. For our customers with low incomes, the City of Tracy offers a customer assistance program that waives the monthly meter charge of $18.50, discounts the monthly sewer fee by $2.55, and discounts basic monthly garbage fee by $5.00.  Learn more at https://www.cityoftracy.org/our-city/departments/finance-department/resdiential-utilities/utility-rates.

 The City of Tracy historically has one of the lowest rates in San Joaquin County.

Each month water charges are calculated based on a flat rate water meter fee plus the actual water consumption fee.  The meter fee charge depends on the meter size.  Water consumption charges are based on a meter reading and user class.  See rates below:

Water Service

5/8” and ¾" Meters                      $18.50 per month

1” Meter                                         $30.90 per month

Residential Sewage Fees

Single Family Homes                   $34.00 per month

Multi-Family Attached Units      $28.75 per month

Storm Drain

Maintenance Fee                           $1.20 per month (multi-family units may be higher)