Chico officials are backing away from a plan that would have raised sewer rates by 180% this summer.
After strong pushback from the business community, councilors are now asking staff to come back with alternative rate options aimed at softening the increase.
Vice Mayor Dale Bennett brought the issue back to the council after hearing from displeased constituents, including members of the Chamber of Commerce, who said the sharp rate hike would negatively affect operations and jobs.
"I’m greatly concerned about the problematic impact of rate increases on our citizens, our business partners, and especially the restaurants," Bennett said.
Councilmember Mike O’Brien echoed Bennett’s sentiment.
“There's no doubt that we have to do something. I get that, but starting off with a 180% increase to our community is not the way to do that. We need to soften the blow in some form or fashion,” O’Brien said.
According to city staff, Chico has maintained the lowest sewer rates in the region for years. Now, the price of long-term underfunding and delayed maintenance has left the city with urgent infrastructure needs. That’s what convinced a majority of councilors in March to approve the five-year sewer update with a steep increase in the first year followed by small increases.
Councilors are asking staff to return by June 16 with the alternative rate proposals.
“If there's a way that we can make that increase less steep while also balancing the long term impacts, then I am here for it,” Councilmember Bryce Goldstein said.
