HomeMy WebLinkAbout2026-03-17 Finance Committee Action MinutesFINANCE COMMITTEE
ACTION MINUTES
Page 1 of 3
Regular Meeting
March 17, 2026
The Finance Committee of the City of Palo Alto met on this date in the Community Meeting
Room and by virtual teleconference at 4:00 PM.
Present In-Person: Lauing (Chair), Burt, Lu
Absent:
Call to Order
Public Comment – none
Agenda Items
1. Recommendation to the City Council to Adopt a Resolution Approving the Fiscal Year 2027
Wastewater Collection Utility Financial Forecast, and Amending Rate Schedules S-1
(Residential Wastewater Collection and Disposal), S-2 (Commercial Wastewater Collection
and Disposal), S-6 (Restaurant Wastewater Collection and Disposal), and S-7 (Commercial
Wastewater Collection and Disposal – Industrial Discharger); CEQA Status: Not a project
under CEQA Guidelines Section 15378(b)(5)
MOTION: Councilmember Burt moved, seconded by Councilmember Lauing, to recommend the
City Council adopt a resolution (Attachment A):
1. Approving the Fiscal Year 2027 Wastewater Collection Utility Financial Forecast shown
in this staff report and attachments; and
2. Amending Rate Schedules (Attachment A, Exhibit 1) effective July 1, 2026 (FY 2027):
a. S-1 (Residential Wastewater Collection and Disposal)
b. S-2 (Commercial Wastewater Collection and Disposal)
c. S-6 (Restaurant Wastewater Collection and Disposal); and
d. S-7 (Commercial Wastewater Collection and Disposal – Industrial Discharger)
ACTION MINUTES
Page 2 of 3
Finance Committee Meeting
Action Minutes: 3/17/2026
MOTION PASSED: 3-0
2. Recommendation to the City Council to Adopt a Resolution Approving the Fiscal Year 2027
Water Utility Financial Forecast and Reserve Transfers, and Amending Rate Schedules W-1
(General Residential Water Service), W-2 (Water Service From Fire Hydrants), W-3 (Fire
Service Connections), W-4 (Residential Master-Metered and General Non-Residential Water
Service), and W-7 (Non-Residential Irrigation Water Service). CEQA Status: Not a project.
MOTION: Councilmember Burt moved, seconded by Councilmember Lauing, to recommend the
City Council adopt a resolution (Attachment A):
1. Approving the Fiscal Year 2027 Water Utility Financial Forecast shown in this staff report
and attachments and approving a reserve transfer of up to $5,500,000 from the
Operations Reserve to the CIP Reserve in FY 2026; and
2. Increasing Water Utility rates for FY 2027 by 8 percent to reflect increases effective July
1, 2026 (FY 2027) by reducing the amount going to the operation reserves by
approximately 1.2 million from the proposed amount by amending rate schedules:
a. W-1 (General Residential Water service)
b. W-2 (Water Service from Fire Hydrants)
c. W-3 (Fire Service Connections)
d. W-4 (Residential Master-Metered and General Non-Residential Water Service),
and
e. W-7 (Non-Residential Irrigation Water Service)
MOTION PASSED: 3-0
3. Recommendation to the City Council to Adopt a Resolution Amending the Utility Rate
Schedule R-1 for Residential Refuse Collection and Utility Rate Schedule R-C for Commercial
Refuse Collection Reflecting a 3.0 Percent Rate Increase for Fiscal Year 2027; CEQA status –
Exempt under Public Resources Code Section 21080(b)(8) and CEQA Guidelines 15378(b)(4)
MOTION: Councilmember Burt moved, seconded by Councilmember Lu, to recommend the City
Council:
1. Approve and authorize a 3.0 percent rate increase to Refuse rates; and
2. Adopt the resolution amending current Utility Rate Schedule R-1 for Residential Refuse
Collection and Utility Rate Schedule R-C for Commercial Refuse Collection.
MOTION PASSED: 3-0
ACTION MINUTES
Page 3 of 3
Finance Committee Meeting
Action Minutes: 3/17/2026
Future Meetings and Agendas
Adjournment: The meeting was adjourned at 5:57 P.M.