Water Rates

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The City currently purchases approximately 90% of our necessary water supply from the State Water Project. The other 10% comes from the City Vallejo and/or the City of Napa. During the recent drought, the State Water Project was unable to provide enough water for our residents and business users, which meant the City had to purchase water on the open market. This severely impacted our City’s Water Fund. With the implementation of the drought surcharge, the City was able to maintain the current level of service.

The Water Division is currently working to decrease leaks and increase the reliability of our water sources in order to provide for our residents and businesses in the future. This requires significant capital improvement and participation in the Sites Reservoir Project for additional water supply reliability. This, along with community conservation has sustained the City thus far; however, this is not a long-term solution.

The City of American Canyon’s Water Division is an enterprise fund. The fund cannot show a profit, but it does need to maintain a reserve fund. The expenditures for operating capital (which includes the costs to buy, treat, and distribute the water) and debt service (paying back of prior loans) are covered by rates and fees paid by the customers. The primary factors which impact our water rates include the cost of water, the cost of daily operations, and the capital improvements necessary to repair aging infrastructure. Although the City may be only 25 years young, American Canyon’s water infrastructure is up to 60-years-old in some neighborhoods.  


After review of current expenses and future projections, the Water Rate Advisory Committee (WRAC) is preliminarily recommending a 9.5% per year rate adjustment phased in over 5 years.  They are also recommending an increase in fixed revenue from 7% (current) to 20% phased in over 5 years. A comparison chart is available to show what this means to users. Take a look at the number of units consumed on your past bills to compare with the proposed rates. 

WRAC 5-year cash flow


We will be working on the following important milestones over the next few months. 

  • March 26, 2018  -  Prop 218 ballots will be mailed
  • April 10, 2018      -  Community meeting from 6pm to 7pm at American Canyon Community Center
  • April 19, 2018      -  Community meeting from 7pm to 8pm at American Canyon High School Cafeteria
  • May 15, 2018      -  City Council will conduct Public Hearing at 6:30pm at City Hall
  • June 1, 2018       -  Rates effective pending successful Public Hearing 


Stay tuned to this web page for further updates and links. Please also sign up for the City Manager's Friday Update and like our Facebook page. For more information contact Public Works via phone at (707) 647-4558 or send an email.



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