Belmont is upping its sewer collection and treatment rates for property owners, citing projected funding gaps for maintenance and critical capital improvement projects.
The roughly 4% residential rate increase next fiscal year — which commences next month — follows a lengthy study conducted by the city on how to continue funding the city’s utility systems and treatment services, the latter provided by Silicon Valley Clean Water.
Currently, residential homes pay about $656 in base charges for sewer collection and treatment, in addition to a combined flow charge rate of around $9 per hundred cubic feet of water. Those will likely increase to $682 in base charges next fiscal year and then a little over $700 in 2025-26. There will be an approximately $150 total base rate increase for residential homes over the next five years.
“Our overarching goal in this is to provide for the operating and maintenance expenses for the collection system,” said Josiah Close, senior financial analyst and project manager at HDR Engineering, the consulting firm hired to calculate proposed increases. “Included in our overall expenses at a significant level is our treatment costs, almost 50%, and that’s basically a pass-through to the customers from Silicon Valley Clean Water to treat the wastewater that we convey to them.”
The sewer rates are only allowed to be used for operations and debt service obligations and must adhere to Proposition 218, which stipulates that notices of the proposed rate increases must be sent to all affected property owners. If more than half object, the increase cannot move forward. Out of the 8,970 notices mailed, about eight written protests were received.
“No one likes to increase rates, and this is something that may be a little bit beyond our control. But Belmont has always been very conservative in our planning and making sure that we have our needs and more,” Councilmember Davina Hurt said. “But we are going to have to really use a scalpel on the money we have set aside and reserve and then also what we have for the ratepayers to lean in on.”
The rates are part of a broader effort by cities to stem the impact of cost pressures for a variety of services. Other cities in the county, including San Carlos, have recently discussed such increases, and others, including Foster City, San Bruno and Redwood City, are also discussing — or have already passed — rate hikes to water and garbage services.
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