Proposition 218 is a California constitutional requirement that governs how a city or agency can propose changes to utility rates. It is intended to ensure fairness, transparency, and accountability in how rates are set.
Under Proposition 218, the City of Santa Ana may only charge what it actually costs to provide water, sewer, and recycled water service. Rates cannot be used to generate profit or fund unrelated programs. To meet this requirement, the City of Santa completed an independent cost-of-service study that confirms the proposed rates reflect the proportional cost of providing reliable service to customers.
Proposition 218 also requires the City of Santa Ana to notify customers and hold a public hearing before any new rates can be adopted. This gives customers the opportunity to review the proposed rates, ask questions, and provide input. Customers may also submit a written protest or legal objection to the proposed rate changes. If protests are received from a majority of affected parcels, the proposed rates cannot be adopted.
The City of Santa Ana is proposing several changes to how water, sewer, and recycled water services are billed.
First, the City of Santa Ana proposes adjusting tier widths to reflect current water supply ratios. The current tiered system would be adjusted to provide stable and predictable funding for system resilience, modernization, and planned capital improvements.
Second, the City of Santa Ana proposes moving from bi-monthly billing to monthly billing. Monthly bills would give customers more frequent information about their water use, make it easier to budget for utility costs, and help the City of Santa Ana monitor and manage system performance.
Finally, the proposed rates include changes to support system reliability and infrastructure needs. For a typical single-family residential customer, water rates would increase by an average of about $4.37 per month, and sewer rates would increase by an average of about $2.59 per month. These changes would help fund ongoing maintenance, regulatory compliance, and critical system improvements. To calculate the impact on your bill, use our online bill estimator tool.
Monthly bills give customers more timely information about how much water they are using, making it easier to understand usage patterns and manage household budgets. Instead of receiving a bill every two months, customers would see smaller, more regular charges that reflect their recent water use.
Monthly billing would also help the City of Santa Ana monitor the water system, quickly identify potential issues, and manage operations efficiently, which supports consistent service for the community.
A fixed charge is a set monthly amount that does not change based on how much water you use. Fixed charges recover the ongoing costs required to operate and maintain a safe and reliable system, such as maintenance, repair, and replacement of pipes and pumps; water quality testing; meters and meter reading; and customer service. These costs are incurred regardless of the amount of water a customer uses.
A variable charge is based on the amount of water that flows through your meter. Variable charges help cover costs that increase or decrease with water use, such as purchased water, electricity, and treatment chemicals.
Together, fixed and variable charges ensure that utility rates reflect the actual cost of providing dependable water, sewer, and recycled water service.
A typical single-family residential customer would see an average monthly increase of approximately $4.37 for water and $2.59 for sewer.
To estimate the impact on your bill, use our online bill estimator tool.
Yes. Both residential and non-residential customers would see changes to their rates. The updated rates are designed to help cover the rising costs of providing safe and reliable water, sewer, and recycled water services.
The City of Santa Ana engaged an independent consultant to evaluate the cost of providing service, review the rate structure, and assess long-term funding needs for the water, sewer, and recycled water systems. You can read the report below.
If implemented, the proposed rates will take effect on May 1, 2026, and subsequent increases would be scheduled each July in 2027, 2028, 2029, and 2030.
The Pass-Through Adjustment Policy is a mechanism by which the City of Santa Ana can adjust water rates if the cost it pays to purchase water increases.
Under the proposed policy, Tier 1 rates could be adjusted if Orange County Water District increases the price of groundwater the City of Santa Ana purchases. Tier 2 rates could be adjusted if Metropolitan Water District increases the price of imported water the City of Santa Ana purchases.
These adjustments would only occur if wholesale water costs rise more than projected and would be limited to a maximum increase of 15% each year. Customers would be notified by mail at least 30 days before any pass-through rate adjustment takes effect.
The proposed rate changes are necessary to keep the City of Santa Ana’s water and sewer systems reliable, safe, and prepared for the future.
Much of the City of Santa Ana’s water and sewer infrastructure is aging and requires ongoing maintenance, repair, and replacement to prevent leaks and service disruptions. The rate changes would help fund critical upgrades to pipes, pumps, wells, and treatment facilities, as well as support emergency preparedness for events like droughts, storms, or regulatory changes.
These projects include:
Water Capital Improvement Projects
- Garthe Pump Station
- Walnut Pump Station
- Washington Well Improvements
- Citywide Water Pipeline Improvements
Sewer Capital Improvement Projects
- Memorial Neighborhood Sewer Main Improvements
- Washington Square Neighborhood Sewer Main Improvements
- Wright Street Sewer Main Improvements
- Fairhaven Neighborhood Sewer Main Improvements
- Citywide Sewer Main Improvements
Investing in the system now helps control long-term costs and ensures the City of Santa Ana can continue providing high-quality water, sewer, and recycled water service to residents and businesses.
No. The City of Santa Ana is a public service provider, which means it can only charge customers for the actual costs of delivering water and sewer services. All money collected through water, sewer, and recycled water rates is used to operate, maintain, and improve these services for the community.
The public hearing is scheduled for Tuesday, March 17, 2026, at 5:30 p.m. in the City Council Chambers at 20 Civic Center Plaza, Santa Ana, CA 92701. After the public hearing and review of all written protests and legal objections, the City Council may vote to adopt the proposed rates. If approved, the new rates would take effect on May 1, 2026.
For more information on how to participate, review the City of Santa Ana’s Public Hearing Notice.
A legal objection is a formal, written challenge to the proposed water, sewer, or recycled water rate changes.
Property owners affected by the proposed rates, as well as tenants who directly pay the charges, may submit a legal objection. To be valid, the objection must be in writing and include the person’s name, service address or parcel number, signature, a statement that it is a legal objection, the specific rate or charge being challenged, and a clear explanation of why the City of Santa Ana is not complying with Proposition 218 or other legal requirements.
Legal objections must be mailed or delivered in person to the City of Santa Ana, Attention: City Clerk, P.O. Box 1988, M-30, Santa Ana, CA 92701, or delivered in person to City Hall at 20 Civic Center Plaza and received by 5 p.m. on March 10, 2026. Objections submitted by email or other electronic methods are not accepted.
Failure to submit an objection on time will bar any right to challenge the water and/or sewer charges through a legal proceeding. Additionally, there is a 120-day statute of limitations for challenging all water, recycled water, and sewer charges should the proposed rate changes be adopted, which commences the day the proposed rates are adopted.
The City Council may vote to adopt the proposed rates following the public hearing on Tuesday, March 17, 2026, at 5:30 p.m. If adopted, the rates will take effect on May 1, 2026.
If you have any questions or would like to speak with someone about the public hearing process, please contact the City of Santa Ana Public Works Agency.