The Sacramento City Commission proposed in its Monday meeting to implement a raise in water and sewer rates to account for the raise passed by McLean County Regional Water earlier this month. The commission also held first readings for real and personal property tax rates.
In accordance with a 54 cent raise to water rates from the McLean County Regional Water Commission, where the City of Sacramento purchases its water from, the Sacramento City Commission has proposed a $1.08 raise to its own water rates, which are currently set at $24.53 for the first 2,000 for inner-city residents. The new rate will be $25.61.
“It’s never an easy thing to have to do, but McLean County [Regional Water Commission], they were forced into it because their expenses are a lot more and they’re not making the money they anticipated,” Sacramento Mayor Betty Howard said.
The rate change from MCRWC will increase in two phases; phase one will go into effect on Oct. 1 with a 54 cent raise per 1,000 gallons, and phase two will be another 16 cent raise starting July, 2021, a 70 cent increase in total.
So far, Calhoun, Livermore, Island and Sacramento have also proposed rate changes to account for the increase.
Sacramento’s proposed increase is tentatively set to go into effect by Nov. 1, however the commission will have to hold a special-called meeting to do a second reading of the changes.
The proposed water rate increase for Sacramento will be implemented as a “pass-through rate,” which according to Howard will increase water rates by 2% each July to account for fluctuations in cost. By July 2021, rates will increase to $26.20.
“If we set it like this and do the pass-through, every time we have a rate increase … we don’t have to do this again,” Howard said.
The commission also proposed a $1 raise to sewer rates which are currently set at $22.60. The new rate will be $23.60.
Additionally, the city held a first reading to implement compensating tax rates for real and personal property. Real property tax rates, which are currently set at 18.9 cents will increase to 19.2 cents per $100 of assessed valuation.
As an example, an individual owning a home valued at $100,000 in the City of Sacramento will pay $192 in real property taxes.
Personal property tax rates will decrease from 73.46 cents to 65.9 cents per $100 of assessed valuation.
The city will hold a second reading at its next meeting to pass the proposed real and personal property tax rates.
Christie Netherton, firstname.lastname@example.org, 270-691-7360