DATE: June 17, 2025
TO: Mayor and City Council
FROM: Director of Public Works
SUBJECT
Title
Utility Rate Adjustments: Adopt a Resolution Amending the Master Fee Schedule, Approving the Proposed FY 2026 and FY 2027 Water and Recycled Rates and Facilities Fees, and Finding the Actions are Exempt from CEQA Review
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RECOMMENDATION
Recommendation
That the City Council adopts resolutions amending the Master Fee Schedule, approving the proposed water and recycled water rates (Attachment II) and facilities fees (Attachment III), and finding the actions exempt from CEQA review.
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SUMMARY
Staff prepared a cost-of-service analyses for providing water and recycled water service to Hayward residents and businesses to calculate appropriate water and recycled water rates and service charges for FY 2026 and FY 2027. This report provides an overview of cost-of-service issues, revenue requirements, and recommended FY 2026 and FY 2027 water and recycled water service rates. Staff presented the proposed rates to City Council to obtain comments during a work session on April 1, 2025, after which the appropriate and required public hearing notice procedures were implemented in accordance with state law prior to this evening's public hearing. If approved, the adopted rate adjustments would take effect on October 1, 2025, and October 1, 2026.
The City's water cost of service requirements for FYs 2026 and 2027, if approved, increases annually by 6% on October 1, 2025, and by another 6% on October 1, 2026. The recommended water rates for FY 2026 and FY 2027 include the same overall 6% increase to both bi-monthly fixed service fees and commodity rates in each of the two years for both residential and non-residential customers. If approved, the water rate increases will take effect on October 1 of each fiscal year, resulting in an annual fiscal year increase of approximately 4.5%. The proposed rate adjustments will allow the City to recoup some of t...
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