Sewer rates in Chico could jump significantly later this year.
The City Council on Tuesday approved a five-year plan that would increase rates by 55% as soon as this November. It would be followed by another 55% hike in year two, then 3% increases through 2031.
The council had approved a plan earlier this year that would have seen customer bills go up by 180% starting this summer. But the panel backtracked on that after outcry from residents and businesses.
City officials say rate increases have been put off for years, and the sewer system desperately needs upgrades.
Some sewer projects would be scaled back under the lower rate plan.
“The key to this whole effort here is to get the rates to a sustainable rate moving forward,” David Kehn, public works deputy director of engineering, said. “The problem now is they're just too low.”
According to city staff, Chico had historically maintained the lowest sewer rates in the region.
But not all councilors were on board with Tuesday’s decision.
Councilmember Mike O’Brien said the hike is still too high.
“The balance is our infrastructure needs and our economic needs,” O’Brien said. “If we completely disregard economic needs, guess what, we won't have a city, we won't have businesses.”
But Vice Mayor Dale Bennett thought it was the right move.
“I know this is what, the fourth time we've gone through this, trying to find that sweet spot for a number that both our businesses, as well as the public, would be putting their arms around,” Bennett said.
Customers will now be notified by mail of the change, and have the option to contest it.
A formal hearing will likely be scheduled for September.
