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Wastewater Rates
CURRENT WASTEWATER RATES
Click here to view the Current Wastewater Rates
2025 WASTEWATER RATE STUDY AND PROPOSED INCREASE TO RATES
The City of Shasta Lake owns and operates the wastewater utility, serving approximately 3,800 residential and non-residential accounts. The system includes a 1.3-million-gallons-per-day (MGD) treatment plant, six lift stations, and approximately 58 miles of collection pipelines.
Consistent with California practice and Proposition 218’s cost-of-service requirements, the City retained Water Resources Economics, LLC (WRE) to complete a comprehensive wastewater rate study with the following objectives:
- Establish a five-year rate schedule for FY 2026–FY 2030;
- Perform a cost-of-service analysis using current data and customer characteristics; and
- Evaluate a five-year financial plan to meet the City’s financial targets for FY 2026–FY 2030.
Current wastewater rates are not sufficient to meet the utility’s needs. To remain financially sustainable, rates must fully fund operations and maintenance (O&M), capital improvement program (CIP) expenditures, and applicable financial policies, including reserve targets and required debt-service coverage.
The current and proposed wastewater rates are presented in the table below. If adopted, the first adjustment would take effect on or after January 1, 2026. Subsequent adjustments would be implemented on January 1 of each year through 2030.
PROPOSED WASTEWATER RATES | ||||||
| Customer Class | Prior | Effective 1/1/26 | Effective 1/1/27 | Effective 1/1/28 | Effective 1/1/29 | Effective 1/1/30 |
| Residential | $80.76 | $81.31 | $85.38 | $89.65 | $94.14 | $98.85 |
| Residential - Lifeline | $64.61 | $65.05 | $68.31 | $71.73 | $75.32 | $79.09 |
| Multi-Family Dwelling | $68.65 | $81.31 | $85.38 | $89.65 | $94.14 | $98.85 |
| Non-Residential (per SFEC) | $80.76 | $81.31 | $85.38 | $89.65 | $94.14 | $98.85 |
Industrial (per SFEC) | $80.76 | $81.31 | $85.38 | $89.65 | $94.14 | $98.85 |
PROPOSED FIRST YEAR CUSTOMER IMPACTS | ||||
Customer Class | Prior Bill | Proposed Bill | $ Difference | % Difference |
Residential | $80.76 | $81.31 | $0.55 | 1% |
Residential - Lifeline | $64.61 | $65.05 | $0.44 | 1% |
Multi-Family Dwelling | $68.65 | $81.31 | $12.66 | 18% |
Non-Residential | $80.76 | $81.31 | $0.55 | 1% |
Industrial | $80.76 | $81.31 | $0.55 | 1% |
Please note, this chart reflects the first-year customer impact; each following year includes an additional 5% increase.
BASIS FOR RATE INCREASES
The rate study’s primary objective is to conduct a comprehensive cost-of-service analysis while preserving, as much as feasible, the existing wastewater rate structure to minimize customer impacts; the current structure includes a fixed monthly service charge by customer class.
After reviewing classifications and usage patterns with staff, the City Council recommends the following changes:
- Eliminate the “Efficiency Unit” class, as there are no active customers in this category.
- Consolidate all residential customers—single-family, multi-family, mobile homes, and accessory dwelling units (ADUs)—into a single Residential class. All residential customers will be eligible for the City’s existing lifeline rate.
- Update non-residential and industrial billing from 90% to 100% of metered water use.
Key financial drivers.
- Capital program (FY 2026–FY 2030): Approximately $13.7 million in planned projects, including the Force Main ($7.35 million) and Summit City Septic and Zinc Mitigation projects (combined $3.68 million). The City is pursuing grant funding for 50% of the Force Main and 100% of the Summit City Septic and Zinc Mitigation projects. If awarded, these grants would materially reduce revenue requirements over the next five years.
- Reserves: The current reserve policy sets targets to maintain liquidity for short-term cash flow, unexpected repairs, and timely execution of CIP. The City proposes revising the policy to better reflect operations, risk profile, and industry standards.
Rate impact. Collectively, these changes support a phased rate adjustment averaging approximately 5% per year over FY 2026–2030, while extending lifeline eligibility to all residential households, including multi-family.
PUBLIC HEARING PROCESS
All property owners of record and tenants are invited to attend this public hearing. The City Council of the City of Shasta Lake will hear and consider all materials and testimony, as well as all written protests against the proposed rate increases. At the close of the public hearing, the City Council may adopt new rates if written protests against the proposed increases are not presented by a majority of identified parcels upon which the proposed rates are to be charged. A majority protest exists if written protests against the proposed service charges are presented by a majority of owners/tenants of the affected parcels.
See full Prop 218 Public Hearing Notice below.