Arcata 2025 Water and Wastewater Rate Study

INFORMATION

The City of Arcata has completed a rate study and has released the proposed rate schedule for the next 5 fiscal years.  This proposed rate schedule reflects a significant increase to water rates and delayed more moderate increases to the wastewater rates over the 5-year period.  By law, the City may not collect more revenue than is necessary to cover the annual costs to provide these services, including all costs and revenues related to operational programs and the capital improvement program (CIP).

Increasing water and sewer rates is necessary to for a few key reasons:

Aging Infrastructure - Much of the City's water infrastructure was built decades ago and has long past its expected useful life.  To keep the system operating safely and efficiently, significant investments are necessary to replace the underground water distribution system and add additional water storage to ensure that if water supply is disrupted, there is sufficient storage to continue to provide water to City residents and businesses. 

While the City's $67 million Wastewater Treatment Plant upgrade, funded primarily from grants received from FEMA, Community Development Block Grants (CDBG), and California Clean Water State Revolving Fund, is nearing completion, much of the City's other wastewater infrastructure, including the collection systems is in need of repair and replacement.   

Environmental Regulations and Water Quality Standards– Stricter environmental regulations such as those regarding water quality, nutrient limits, etc. requires utilities to invest in treatment systems and technology to meet these new standards.

Ongoing Cost Inflation - The City’s water and wastewater enterprises face ongoing operating cost inflation due to annual increases in a range of expenses including staffing, utilities, insurance, supplies, etc. 

UPCOMING MEETINGS

The City is tentatively scheduled to hold a Public Hearing on the Proposed Water and Wastewater (Sewer) Rate Increases on April 15, 2026, Arcata City Hall, 736 F Street, Arcata, CA 95521, Meeting starts at 6:00pm. 

An Open House Informational Meeting on water and wastewater proposed rate increases is scheduled for February 25, 2026, at 5:30pm at the D Street Neighborhood Center, 1301 D Street, Arcata CA 95521.