Chico may defer sewer projects to reduce costs

CHICO - However the numbers are crunched, the Chico City Council must decide how to pay for $134.5 million in recommended improvements to the city's sewer system.

With regard to cost-sensitive residents, councilors in May voted against its previous decision in March to increase sewer rates by 180% in 2027 and 3% each year through 2031, totaling to a 215% increase.

This Tuesday, it will be looking at whether postponing some sewer improvement projects will be worth risking "significant future rate increases and the potential for infrastructure failure," according to a staff report.

Instead of paying $134.5 million to fix everything wrong with the sewers, the council will consider a moderate risk scenario paying for $105 million in improvements over a five-year period, or a significant risk scenario paying for just $81 million for even less improvements.

The new proposed options will give the council the choice of splitting the brunt of the cost across 2027 and 2028, rather than just one year; and the choice to borrow $30 million over 20 years, costing about $15.4 million total in interest.

The moderate and increased risk scenarios also pose at least a 25% to 30% increase in 2032, whereas the council's previously approved option would increase only 3%, according to the report.

In addition, the council may consider adopting a need-based sewer rate assistance program.

Other business on Tuesday's agenda includes an extension of funding to Butte County's sobering center program, and a consideration of allowing commercial cannabis cultivation within city limits.

In closed session, the council will be discussing employment of a new city manager to replace Mark Sorensen, whose retirement is scheduled July 10.

The Chico City Council regularly meets at 6 p.m. on the first and third Tuesday of the month at 421 Main St.; closed session starts at 5 p.m. Meetings are free and open to the public.

This story has been updated to reflect the date City Manager Mark Sorensen retires.

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This story was originally published June 15, 2026 at 6:05 AM.