San Francisco proposes major water, sewer rate increases by summer to upgrade infrastructure

SAN FRANCISCO (KGO) — San Francisco residents could soon see a rate increase in their water and sewer bills.

The San Francisco Public Utilities Commission is proposing an average combined bill increase of 23% by next July, saying the money is needed to maintain and upgrade the city’s aging water and sewer systems. Officials say the longer the city waits, the more expensive upgrades will become.

We love our clean water here. It is phenomenal,” said San Francisco resident Kathy Mark said.

Some residents told ABC7 News their utility bills have consistently gone up through the decades.

“They’ve definitely increased,” said resident Craig Matthew. “And it’s interesting because we’ve tried really hard to reduce our consumption. But the rates still keep going up.”

Under the proposal, the first increase would begin July 1, 2026. Water rates would rise 7%, and sewer rates would rise 15%, for an estimated average combined bill increase of 10.5%.

A second increase would take effect July 1, 2027. Water rates would rise another 7% and sewer rates 14.5%, resulting in an average combined bill increase of 12.5%.

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Right now, the average single-family household spends about $171 a year on water and sewage. SFPUC estimates that under the proposal, that number would rise to $189 come July 1, 2026, and $212 by July 1, 2027.

Some residents say they can manage the increase but worry about those who can’t.

“I’m fortunate that we could pay it. So many couldn’t. And so I think that there’s got to be some other options,” said Mark

Longtime renter Jennifer Plog said her landlord currently covers utilities, but she expects that to change.

“I’m dumbfounded. That’s that’s a huge number to be I know it’s going to be passed on,” added Plog.

SFPUC says the increases are driven by the need to upgrade aging infrastructure, higher construction costs, regulatory requirements, and declining federal support. During a virtual webinar on Monday, residents asked what would happen if the proposal doesm’t move forward.

“Put simply, we would not have enough money to run the water and sewer systems,” responded Laura Bush, SFPUC’s Deputy Chief Financial Officer.

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Residents say they understand the urgency but are struggling with rising costs across the board.

“Gas is $6 a gallon. It’s tough. It’s tough to be here,” Matthews said.

Others questioned how much more people can absorb.

“It’s really, really hard. I wish that my reasons that work could keep up with the cost of living,” Plog said. “It’s absurd. Everything is going up. Everything, your health care. I can’t even believe how much health care went up. How much gas is, how much you know, they’re trying to raise rents. Again, food is obnoxiously high.”

“So that seems a bit high to me,” Mark said. “And I think we’re going to probably lose even more residents.”

The commission says that even with the proposed increases, San Francisco’s water and sewer rates would still be lower than those in cities such as Los Angeles and Santa Clara.

A public hearing on the proposal is scheduled for April 28 at City Hall. If approved, the first increase would take effect in July.