Prop 218: Proposed Water Rate Increases

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Water Rate Increases Approved

On November 2025, City Council approved the proposed water rate adjustments following the Proposition 218 process (Resolution No. 2025-217). The updated rate structure will take effect on January 1, 2026.

To view the adopted 2026-2030 water rates table, click here.

Maintaining the Water System

The City invests in its water system to ensure it can provide uninterrupted service of high-quality water customers 24 hours a day, 7 days a week. The City has worked hard to secure a reliable supply of water and build the infrastructure and treatment capacity to serve our residents and businesses. However, the City’s water system, which includes over 375 miles of water pipelines, 12 storage tanks, 15 pump stations, and two water treatment plants, is aging and in need of upgrades and repairs in the coming years.

In 2022, the Fairfield City Council approved the development of the Public Utility Master Plan (PUMP) the City’s most comprehensive planning effort to date for its water system. Adopted in June 2025, the PUMP outlines systemwide improvements needed over the next 20 years to ensure Fairfield’s water infrastructure remains reliable, sustainable and financially sound.

To support this long-term plan, the City partnered with an independent rate consultant to conduct a financial model and water rate study. This study found that after more than four years without any rate adjustments, rising costs and aging infrastructure have created a funding gap that must now be addressed.

Proposed Rate Increases

As a public utility, the City of Fairfield is legally required to base its rates on the actual cost of providing service. The City is proposing to gradually increase its water rates over the next five years to provide adequate funding for operations, debt service and high-priority capital improvements needed to continue to ensure safe and reliable water service for customers now and into the future. The proposed rates account for both overall annual rate increases as well as modifications to the City’s water rate structure designed to align rates with the cost of providing service and ensure rates are equitably applied to all customers.

What Does This Mean for Customers?

Based on the 2025 Water Rate Study prepared by the City’s consultant, Bartle Wells Associates, the City is proposing an approximately 8 percent rate increase annually for customers over the next five years to implement critical infrastructure upgrades. If the new rates are approved, the average single-family residence will see their bill go up $5-7 dollars per month each year for the next five years, compared to what they paid the previous year.

The proposed bill impacts in the first year will vary based on customer class and water use due to the proposed modifications to the rate structure. Currently, Fairfield’s water service charges for a typical single-family home are among the lowest in the region, and this will remain the case even with these increases.

Why are Water Rate Increases Necessary?

The City last adjusted water rates on January 1, 2021 and has not adopted any rate increases for more than four and a half years despite significant increases in costs for the City to operate the water system during this period. It is time to re-invest in the City’s water system for current customers and future generations of Fairfield residents.

Proposed rate adjustments are necessary to continue to:

Operate and maintain Fairfield's water system
Fund critical infrastructure improvements
Cover rising costs of water, energy, materials, and labor
Meet legal and regulatory obligations
Maintain system reliability and debt service requirements

How Do the City's Water Rates Compare?

A typical single-family water bill in Fairfield is $54/month, which is 30% below the regional average of $76.65
Among 16 regional water agencies, our rates remain the lowest

We are Here to Help

The City understands that rising costs impact our community. The City offers a Low Income Senior/Disabled Water Refund for water service charges for customers who qualify. Applications are mailed out every January along with water bills and must be submitted by May 31.

To learn more about this refund and qualifications, click here.

Stay Informed & Engaged

The City is committed to clear communication and proactive outreach throughout the rate-setting process. Please see the milestones below and visit this page throughout the process for updates and additional information.

Milestone	Timeline
Prop 218 notices mailed	July 11, 2025
Public hearing and Council vote	November 4, 2025 at 6 p.m.
New rates take effect	January 1, 2026

For questions regarding Prop 218 Water Rates, please contact Public Works at (707) 428-7485.

Participate in the Process

Proposition 218 Notices
- Prop 218 Notice – English
- Aviso de la Proposición 218 - Español
Events with City Participation:
- 2025 Tomato and Vine Festival on Saturday, August 16 and Sunday, August 17
- 2025 Fairfield Farmers Market on Thursday July 17, July 31, August 21, and September 4
- Open House on Thursday, October 16, 2025, from 5:30 to 7:00 p.m. at the Fairfield Civic Center Library – Becker-Balmer Meeting Room

Community Outreach & Presentations

As part of our efforts to keep the public informed, City staff are conducting outreach to community groups regarding the proposed water rate adjustments.

Fairfield Lions Club Presentation – August 2025
Virtual Open House Recording from October 28, 2025

Embedded Video

Prop 218 Proposed Water Rate Increases Related Documents

The following documents provide information for the proposed water rate adjustments in accordance with Proposition 218 requirements.

How to Protest the Proposed Rate Increases: Submit a Written Protest

Written protests may be mailed to the City Clerk at 1000 Webster Street, Fairfield, CA 94533, emailed to the City Clerk at CityClerk@fairfield.ca.gov, hand delivered to the City Clerk’s Office on the 4th floor of City Hall or hand delivered to the City Clerk in the Council Chamber at the public hearing prior to the conclusion of the public hearing. Written protests that are emailed or mailed or hand delivered to the City Clerk’s Office must be received by the City Clerk by 5:00 p.m. on November 4, 2025.

To be counted in determining the existence of a majority protest, a written protest must include all of the following:

Clearly stated opposition to the proposed water rates;
Identification of the parcel(s) for which the Written Protest is made (by assessor’s parcel number or street address);
Legibly printed name of the record owner or customer of record submitting the Written Protest; and
Original signature of the record owner or customer of record submitting the Written Protest.

FAQs

I received a Prop 218 notice in the mail. What is it and why did you send it?

Through the Prop 218 process, the State of California requires us to evaluate our revenue needs and cost of service at least once every five years. The City of Fairfield has partnered with an independent rate consultant to conduct a financial model and water rate study. This study found that after more than four years without any rate adjustments, rising costs and aging infrastructure have created a funding gap that must now be addressed.
What are the proposed rate changes, and will I see an increase on my bill?

Based on the 2025 Water Rate Study prepared by the City’s consultant, Bartle Wells Associates, the City is proposing an approximately 8 percent rate increase annually for customers over the next five years to implement critical infrastructure upgrades. If the new rates are approved, the average single-family residence will see their bill go up $5-7 per month each year for the next five years, compared to what they paid the previous year. The proposed bill impacts in the first year will vary based on customer class and water use due to the proposed modifications to the rate structure. Currently, Fairfield’s water service charges for a typical single-family home are among the lowest in the region, and this will remain the case even with these increases.
Sewer charges are included in the water bill. Will the rate changes affect sewer charges on my bill?

No. The proposed rate changes apply only to water service charges. Sewer charges are separate and will not be affected by this proposal.
How do Fairfield rates compare to others in the region?

Fairfield’s water rates are currently among the lowest of 16 regional water agencies. In fact, for a typical single-family home (using about 250 gallons per day) the monthly water bill is $54.00, which is about 30% below the regional average of $76.65.
What is driving the rate increases?

Many components of the City’s water system that help produce, transport, store, and deliver water to your tap 24 hours a day, 7 days a week are aging and in need of upgrades and repair.

In addition, no rate increases have been implemented by the City in more than four years, so it is time to re-invest in the City’s water system for current customers and future generations of Fairfield residents.
Why are these rate adjustments being considered?

As a public utility, FMU can only charge customers for the true cost of providing water services. This means that rates must be assessed and adjusted accordingly to accurately reflect the costs associated with providing these essential services. FMU has historically provided strong financial management with small annual water rate adjustments to keep revenues in line with the cost of service and maintain healthy funding reserves. However, FMU has also experienced substantial increases in operating and maintenance expenses over the past four years with no corresponding rate increases to customers (the City last adjusted water rates on January 1, 2021). While in a good financial position with reserves, the City is proposing gradual water rate increases to ensure continued investment in safe, reliable water service for current and future residents.
What will the funds from these rate increases be used for if approved?
The proposed rate adjustments are necessary to continue to:
- Operate and maintain Fairfield's water system
- Fund critical infrastructure improvements
- Cover rising costs of water, energy, materials, and labor
- Meet legal and regulatory obligations
- Maintain system reliability and debt service requirements
What investments is the City making in its water infrastructure using these funds?
More specifically, these rate adjustments will allow FMU to focus on the following infrastructure priorities moving forward:
- Addressing water system limitations associated with moving water where Interstate 80 crosses the water system.
- Rehabilitating and restoring existing pump stations to return them to their intended capacities.
- Replacing infrastructure that has reached the end of its useful life, including:
- Modernizing and rehabilitating the City’s water treatment plants (Waterman and North Bay Regional), as both facilities are over thirty years old.
When will I see the rate changes on my bill?

If approved, the changes will impact customer bills starting on January 1, 2026.
What is the City doing to minimize rate increases?

While we must keep pace with important water system investments, FMU also understands the difficulties we all face from rising costs. FMU routinely works to identify opportunities to reduce costs and has implemented various cost-saving measures to keep rates as low as possible. The City offers a Low-Income Senior/Disabled Water Rebate for water service charges for customers who qualify. Applications are mailed out to customers every January along with water bills and must be submitted before March 31st. If you have questions about the rebate or how to apply, please contact Utility Billing at (707) 428-7346.
How is the City working to improve water affordability?

FMU is also actively working to reduce costs and ease the burden on customers, including by investing in energy-saving solutions, like a new 1.25 MW solar field that is projected to save $9.5 million over 20 years. FMU also optimizes operations by using energy during off-peak hours and negotiating lower chemical prices as much as possible.
What are the next steps in the process?
FMU is committed to robust communication and proactive engagement with customers to raise awareness about this effort and all the services provided by FMU, before, during and after the official Proposition 218 process. The key milestones are shown below:
- June 17, 2025: City Council initiated Prop 218 Process
- July 11, 2025: Proposition 218 notice mailed to customers
- Summer-Fall 2025: Communication and outreach to customers about these rate adjustments
- Nov. 4, 2025, at 6 p.m.: Public hearing on proposed rate adjustments for Council adoption
- January 1, 2026: New rates proposed to take effect
How can I learn more about the process and proposed rate increases?

To learn more and get involved: Visit www.fairfield.ca.gov/waterrates.
How can I participate in the public hearing?

Your input is important to us. The hearing will take place on November 4, 2025 at 6 p.m. At the public hearing, all members of the public will have an opportunity to speak, but verbal comments alone do not qualify as a formal protest. Visit www.fairfield.ca.gov/waterrates to learn the various ways we can hear from you during the public comment period.
How do I protest the new rate changes?
Written protests may be mailed to the City Clerk at 1000 Webster Street, Fairfield, CA 94533, emailed to the City Clerk at CityClerk@fairfield.ca.gov, hand delivered to the City Clerk’s Office on the 4th floor of City Hall or hand delivered to the City Clerk in the Council Chamber at the public hearing prior to the conclusion of the public hearing. Written protests that are emailed or mailed or hand delivered to the City Clerk’s Office must be received by the City Clerk by 5:00 p.m. on November 4, 2025.

To be counted in determining the existence of a majority protest, a written protest must include all of the following:
1. Clearly stated opposition to the proposed water rates;
2. Identification of the parcel(s) for which the Written Protest is made (by assessor’s parcel number or street address);
3. Legibly printed name of the record owner or customer of record submitting the Written Protest; and
4. Original signature of the record owner or customer of record submitting the Written Protest.
How do I find the residential water rate zone I belong to?
Each residential zone is assigned a specific volume charge based on where they are located. These charges are calculated per 1 Hundred Cubic Feet (HCF) of water used:

Find Your Water Rate Zone

Step 1: Look at Your Water Bill

To determine which water rate zone you're in, in your most recent water bill. Look for the following:
- Water Use Charge (under “New Charges”): $39.20
- Water Use HCF (under “Consumption History”): 16 HCF
Step 2: Calculate the Rate Per HCF

Use the formula below to calculate how much is being charged per HCF:

$2.45 is the volume rate for this customer.

Step 3: Match the Rate to a Zone

Using the Volume Charge table, match the rate of $2.45 to its corresponding zone. In this example, the water customer belongs to Zone 1-2

*The City of Fairfield is currently conducting an audit to confirm the proper zone assignments for all addresses. If your zone is found to be incorrect, you will receive a formal notice indicating the updated zone designation.

If you would like to download this guide, click here.