Summary and Current Status

In May of 2010, City Council approved a series of sewer service rates which resulted in a cumulative rate increase of 82% over five years. The last sewer rate increase was in March of 2014.

In January of 2016, City Council approved a series of water service rate increases designed to generate a 5.5% annual increase in revenues, along with a low income discount, that went into effect in February of 2016. The last water rate increase took place in January of 2020.

In May 2022, the City hired Willdan Financial Services, an independent consultant, to prepare a detailed Water and Sewer Rate Study for the Utilities Department. Willdan evaluated revenue sufficiency under existing rates, and revenue requirements based on a five year financial plan, to assess the need for rate adjustments that will allow the Department to continue providing reliable water and wastewater services to the Vacaville community that meet or exceed state and federal testing standards and maintain the critical infrastructure that ensures the health and safety of the community.

The Vacaville City Council received two presentations about the Water and Sewer Rate Study during the February 25 and March 11, 2025, regular Council meetings. Notices concerning proposed rate increases are scheduled to be mailed to City water and sewer customers and property owners in March.  A public hearing is scheduled for Tuesday, May 13, 2025, to consider the proposed rate adjustments for water and sewer service.

The purpose of a Water and Sewer Rate Study is to evaluate the costs incurred to provide utility service to customers and determine the level of funding required over the next five years.

The result is a recommended plan that ensures each fund meets projected financial obligations for operations and maintenance, debt service and capital infrastructure improvements to ensure continued safe and efficient operations, while maintaining sufficient reserves for cash flow management and emergencies, and satisfying debt service coverage requirements for existing debt.

The financial plan is also focused on enhancing the overall financial condition of the utilities, to support favorable credit ratings that would lower the cost of future borrowings the City may decide to undertake. Updating rates to keep up with the costs of providing reliable, safe, and high ­quality drinking water and wastewater services is a key component of maintaining financial viability of the utilities.

Rate structures for each utility were designed so that revenues from proposed rates do not exceed the amount of revenue required to provide the services, nor will revenue from rates be used for any purposes other than those for which they are imposed.

• Development of a 5-year financial plan
• Provide adequate funding for current and future operations, maintenance and capital projects for the water and wastewater systems
• Provide funding for debt repayment and compliance with bond covenants
• Build and maintain adequate operating and capital reserves
• Develop equitable, cost-based rate structure
• Compliance with Proposition 218 and other legal requirements

Rate adjustments were recommended as part of the Water and Sewer Rate Study and were deemed necessary to address a number of issues impacting the Water and Sewer funds, including:

• Rising operating costs (equipment, supplies, power, treatment, etc.)
• Rising personnel costs (labor, benefits, pensions, etc.)
• Debt service coverage required to maintain compliance with debt covenants
• Funding ongoing repair and rehabilitation, and regulatory capital projects to continue providing uninterrupted, quality service
• Last rate adjustment for water implemented over 5 years ago in January 2020
• Last rate adjustment for sewer implemented over 11 years ago in March 2014

Water charges are calculated by combining the fixed rate (based on water meter size) with the consumption rate (based on actual water use). Sewer or wastewater charges for the typical residential customer are calculated by combining the fixed rate (based on dwelling type and number of units) with the consumption rate (based on average winter water consumption that is recalculated annually).

A bill estimator is available to assist residential and non-residential customers with estimating the impact of the proposed rate adjustment on their bi-monthly bill. This bill estimator does not apply to industrial customers.

For any inquiries regarding the proposed rate adjustments, you may call (707) 469-6400 or you can email us at utilitiesdept@cityofvacaville.com. You can also call (707) 449-5128 to get help calculating or understanding your bill.

1. If you  know your meter size, select it in the first box. 
   • If you are unsure of your meter size, proceed to step 2.
2. Enter the number listed under "Consumption" in the second box in the bill estimator. 
3. Select the correct "Sewer Type".
4. Click Calculate.
5. Confirm the calculation in the "2025" box that appears very closely matches the totals on your utility bill.  If it does not:
   • Please confirm the information you entered is correct. Click "Calculate".
   • Adjust the "Water Meter Size" and click "Calculate" again. 
   • If you are unable to closely match the "2025" amount of your current billl, please contact us at (707) 449-5128 or UBAdmin@CityofVacaville.com.

The low income discount is funded by revenues not collected through water rates in accordance with State of California regulations. In the event this funding runs out before the end of the fiscal year (June 30), the program will be suspended until the start of the following fiscal year (July 1) when funding is approved.

City of Vacaville customers may qualify for a discount on their water service charges. In order to qualify, customers must meet income requirements and be enrolled in the PG&E California Alternate Rates for Energy (CARE) program. You may complete the Low Income Discount Application and submit to the Finance Department located at 650 Merchant Street, Vacaville, CA along with a copy of your most current PG&E statement showing you are enrolled in the CARE program and are receiving the CARE discount. If you're not already enrolled in the CARE program and think you may qualify, find out more about the eligibility requirements and how to enroll.

Actions for Consideration:

1. Conduct a Public Hearing in consideration of the adjustment of water and sewer rates in the City of Vacaville; and
2. Receive public comments; and
3. By simple motion, adopt a subject resolution approving the adjustment of water and sewer rates, effective July 1, 2025.

• Staff Report  
• Presentation Document
• Res. 2025-070 Approval of the Bi-Monthly Water and Sewer Rate Adjustment
• Presentation Recording (and available below)

Actions for Consideration:

1. Conduct a Public Hearing in consideration of the adjustment of water and sewer rates in the City of Vacaville; and
2. Receive public comments, direct the City Clerk to tabulate all written protest votes received prior to and during the public hearing, and report the results to City Council; and
3. If a majority protest does not exist, then by simple motion, adopt the subject resolution approving the adjustment of water and sewer rates, effective July 1, 2025. 

• Staff Report  
• Presentation Document
• Public Comment Submitted with Protests
• Public Comment Submitted with Protest 2
• Presentation Recording (and available below)

Action for consideration:

Receive the Water and Sewer (Wastewater) Rate Study and proposed rate adjustment; and adopt a resolution directing staff to initiate the Proposition 218 process for a public hearing to be held on May 13, 2025 to consider implementation of rate adjustments on July 1, 2025. 

• Staff Report  
• Presentation Document
• Res. 2025-024 Wastewater Rate Study Recommendation and Prop 218 Initiation
• Presentation Recording (and available below)

Dear Vacaville Utility Customer,

The City of Vacaville Utilities Department (Utilities Department) presented two revenue adjustment options during the February 25, 2025, regular City Council meeting, and received direction from the City Council to proceed with the recommended option prepared by the City’s consultant, Willdan Financial Services, and finalize the Water and Wastewater Rate Study Report based on this option.

During the regular City Council meeting on March 11, 2025, 6:00 PM, it is anticipated that the City Council will take action to initiate a Proposition 218 process, which requires the City to notify property owners and system users (customers) of proposed changes to property-related fees, such as those for water or sewer (wastewater) service. This notice will describe proposed changes to the rates for these services.  Additional information is available in the staff report, CityofVacaville.gov/Agendas.

Should the City Council initiate the Proposition 218 process, the City will offer community information sessions and an Estimated Bill Impact Calculator with the proposed rate adjustments.

At the conclusion of the Proposition 218 process, a Public Hearing will be held on May 13, 2025, 6:00 PM, at the regular City Council meeting. If adopted, the proposed rates for water and sewer service will be in effect for the first full billing cycle following July 1, 2025, and increase annually thereafter through July 1, 2029.

Residents can attend the City Council meetings in person, watch online at CityofVacaville.gov/Agendas and YouTube @CityofVacaville, on Comcast channel 26 and AT&T 99, or view a recording within 48 hours. In addition, the City Council will take in-person comments from the public during the agenda item. 

The recording will be available at CityofVacaville.gov/Agendas.  Updates will be available online at CityofVacaville.gov/UtilitiesRateStudy. E-mail Utilities Utilities_Dept@cityofvacaville.com or call us at (707) 469-6400 for additional information.

Sincerely,
Your Utilities Department Team

View, print, and download this notice in English.

View, print, and download this notice in Spanish.

Action for Consideration:

No action is required as this item is informational only. 

• Staff Report  
• Presentation Document
• Presentation Recording (and available below)

February 20, 2025

Dear Vacaville Utility Customer,

The City of Vacaville Utilities Department (Utilities Department) will introduce a Water and Wastewater Rate Study and options for a proposed five-year rate increase during the City Council meeting on Tuesday, February 25, 6:00 PM at 650 Merchant St. Vacaville, CA 95688. It is anticipated that the City Council will receive a presentation and provide feedback.

The Utilities Department intends to return to City Council during the next regular meeting, Tuesday, March 11, 6:00 PM, with a recommendation that the City Council select one of the proposed rate options and initiate a Proposition 218 noticing process. At its conclusion, a Public Hearing will be held.  Further information will be provided at this time. If approved, the new rates would take effect July 1, 2025, and increase annually thereafter, through July 1, 2029. Should the City Council give the direction to proceed with a Proposition 218 process, the City will offer community information sessions. 

Water rates cover the cost of providing a reliable supply of high-quality drinking water to City of Vacaville (City) residents, business owners, and visitors. Wastewater rates cover the cost of safely collecting and treating sewage and discharging tertiary-treated effluent. Rates also include maintenance, repair, and rehabilitation of the water distribution and sewer collection systems and related infrastructure. Rate changes are needed due to increasing costs, including higher construction and maintenance costs for critical infrastructure, stricter water quality and environmental regulations, and water supply initiatives. Rate adjustments also ensure the Utilities Department has adequate debt coverage; a fiscally responsible practice that helps maintain a strong credit rating which lowers borrowing costs.     

The Utilities Department strives for operational efficiencies and processes that reduce upward rate pressure. Securing grants, maximizing the use of lowest cost water, increasing energy efficiencies, and reducing long-term costs by installing improved infrastructure, and partnering with other agencies to execute joint projects, reduce overall operational costs. Cost controls have helped keep rates consistently in the lower range compared to neighboring agencies.

The Utilities Department periodically conducts an in-depth financial analysis to ensure water and wastewater rates accurately reflect the cost of service. The City uses outside expert consultants to ensure that rates are properly determined. As a public agency, the City of Vacaville makes no profit and cannot request rate increases beyond the projected cost of providing service.

Residents can attend the City Council meetings in person, watch online at CityofVacaville.gov/Agendas and YouTube @CityofVacaville, on Comcast channel 26 and AT&T 99, or view a recording within 48 hours. In addition, the City Council will take in-person comments from the public during the agenda item. 

The recording will be available at CityofVacaville.gov/Agendas.  Updates will be available on this webpage (accessible with via CityofVacaville.gov/UtilitiesRateStudy). 

Sincerely,

Your Utilities Department Team

View, print, and download this notice in English.
View, print, and download this notice in Spanish.

Reasons for the Increases

The rates were recommended as part of a water rate study completed by the independent consulting firm of Bartle Wells Associates and were deemed necessary to address a number of issues impacting the Water fund, including the need to:

• convert the current multiple consumption rate structure into a single consumption rate to comply with state laws and regulations;
• adjust the fixed (service) and variable (consumption) rate structure to more accurately recover actual costs incurred and mitigate the impact of fluctuations in future water consumption;
• recover lost revenue as a result of state mandated water conservation;
• recover the costs of complying with the state's mandated chromium 6 requirements; and
• replace the previous age based discount due to legal counsel with an income based discount to assist low and fixed-income water customers.

The 2015 Water Rate Study is found here.

Reasons for the Increases

In 2008 the State of California issued a new operating permit for the Easterly Wastewater Treatment Plant requiring nitrate reduction and filtration (tertiary treatment). These advanced treatment mandates required major improvements to the Easterly Plant budgeted at $150 million, which was financed by a low interest State Revolving Fund loan. In order to secure the loan the City was required to increase sewer rates to both qualify for the financing and to provide the upfront costs of designing the plant improvements. The increased annual operations and maintenance expenses resulting from the project include the following:

• repayment of the State Revolving Fund loan;
• a utility users tax applied to the City’s general fund; and
• additional staffing and plant operations expenses to meet the state mandates.

The rates were recommended as part of a sewer rate study completed by the independent consulting firm of Bartle Wells Associates and were deemed necessary to meet the requirements of the 2008 National Pollutant Discharge Elimination System (NPDES) permit.

The 2010 Sewer Rate Study is found here.

For any inquiries regarding the approved rates you may call (707) 469-6400 or you can email us at utilitiesdept@cityofvacaville.com. You can also call (707) 449-5128 to get help in calculating or understanding your bill.