Sunnyvale’s City Council adopted FY 2026/27 rate changes that the City says will raise a typical single-family household’s monthly utility cost by about $12.43, or roughly 6.2%. The City estimates that increase breaks out to $5.89 for water, $5.09 for wastewater, and $1.45 for garbage and recycling.

Because individual bills depend on water use and your garbage cart size, the $12.43 figure is a baseline for planning—not a guarantee of what any one household will pay next.

The numbers: the FY 2026/27 changes

For the fiscal year beginning July 1, 2026, the City adopted these percentage increases:

• Water rates: +7.5%
• Wastewater (sewer) rates: +7%
• Solid waste/garbage and recycling rates: +3%

City materials estimate a typical single-family monthly bill change of about:

• Water: +$5.89 per month
• Wastewater (sewer): +$5.09 per month
• Solid waste/garbage and recycling: +$1.45 per month
• Total: +$12.43 per month (about +6.2%)

When the increases take effect (and why billing timing can look different)

The adopted rates become effective July 1, 2026. That’s the start of the City’s FY 2026/27 utility rate period.

Sunnyvale bills water based on your meter reading. Residential water bills include a service fee plus a variable charge based on consumption measured in CCF (1 CCF equals 100 cubic feet, or 748 gallons). The City notes that what you pay for water depends on both meter size/service fees and how much water you use.

For wastewater and solid waste/garbage and recycling, Sunnyvale lists common residential sewer and garbage/recycling charges for a two-month billing cycle. That means your statement may not line up perfectly with a “per month” planning number.

What the City says the money is for

City staff says Sunnyvale’s utility rates are set based on the cost of operating and maintaining each utility—not general tax revenues.

For water, the City points to rising costs of purchased water and infrastructure improvements.

For wastewater, the City’s key driver is the Sunnyvale Cleanwater Program, which the City describes as a long-term project to replace the aging Water Pollution Control Plant. The City’s public-hearing notice says the facility now requires upgrades to meet environmental and regulatory requirements, incorporate new technology, and repair infrastructure from decades of wear and tear.

For solid waste/garbage and recycling, the City says increases are tied to state requirements and environmental mandates that require additional services aimed at boosting organics recycling and reducing landfill disposal.

Possible mid-year movement: wholesale water pass-through

In addition to the July 1 rate change, Sunnyvale’s rate documents include a wholesale water pass-through provision. The idea is that if wholesale water providers adopt mid-year rate increases, Sunnyvale could recover those higher costs through a surcharge formula applied to utility bills based on the amount of water used for the remainder of the fiscal year ending June 30, 2027.

In practical terms: treat the $12.43-per-month estimate as a starting point for FY 2026/27 budgeting, and expect that additional movement is possible if wholesale costs change later in the year.

Need help budgeting? Payment options are available

San José Spotlight reported that the City encourages customers experiencing financial hardship to contact the City. The outlet also reports that Sunnyvale offers payment extensions, no-interest payment plans, and partnerships with Sunnyvale Community Services to help eligible residents pay utility bills.

Sources

• City of Sunnyvale Legistar (File #26-0149): Staff Report/Agenda packet (PDF) for FY 2026/27 utility rate increases
• City of Sunnyvale: Notice of Public Hearing for Proposed FY 2026/27 Utility Rates (PDF)
• San José Spotlight: Water, garbage, sewage rates going up in Sunnyvale

Why July 1 changes your bill

The city’s Proposition 218 rate noticing packet ties the changes to the July 1, 2026 effective date. For residents, the clearest day-to-day increases are expected in trash and recycling collection, sanitary sewer service, and potable water (drinking water).

Garbage and recycling: single-family vs. multi-family

The city’s noticing packet says the administration is recommending a residential garbage and recycling rate increase of up to 7% for single-family properties and up to 4% for multi-family properties, with the effective date tied to July 1, 2026.

Single-family examples (garbage cart size)

• 64-gallon cart: $109.02/month → $116.65/month (increase of $7.63)
• 96-gallon cart: $163.53/month → $174.97/month (increase of $11.44)

Multi-family examples (1x/week collection)

• Bin size 1: $155.50/month → $161.72/month (increase of $6.22)
• Bin size 2: $236.22/month → $245.66/month (increase of $9.44)

The city also notes that, for multi-family properties, garbage and recycling services are billed to the utility account holder (which may be a homeowners association).

In the notice, the city says the changes are intended to cover increased costs tied to garbage collection/processing, plus unlimited recycling and yard trimmings collection and unlimited junk pickup.

Sewer charges: flat monthly amounts

Sanitary sewer is billed differently than water. The city’s residential sewer-rate notification letter lists flat monthly charges by property type, with “current” and “proposed” amounts tied to July 1, 2026.

• Single-family residence: $50.42/month → $51.73/month (increase of $1.31)
• Multiple-family residence (per unit): $33.78/month → $34.66/month (increase of $0.88)

The city’s packet describes the sewer change as a maximum single-family increase of about 2.6% (or $1.31 per month).

Water: rates plus a 5% utility tax

For drinking water, the city’s published rate materials explain how your bill is structured. Per the city’s drinking water rates page, all water bills include a quantity charge, a service charge, and a 5% utility tax.

The city’s Proposition 218 water notice packet also provides service-area-specific examples for the July 1, 2026 effective date:

• North San Jose/Alviso: about a $10 (about 6.5%) increase to an average residential monthly bill
• Evergreen/Edenvale: about a $10 (about 6.6%) increase to an average residential monthly bill

What residents should do now

Before your first statement reflects the July 1 changes, the most practical step is to confirm which rate lines apply to your account:

• Garbage/recycling: match your home to the correct single-family cart size or the correct multi-family bin size and collection frequency used in the city’s schedule.
• Sewer: confirm whether your account is billed as single-family or multi-family (per unit).
• Water: remember the city’s bills include a 5% utility tax in addition to quantity and service charges.

Then, when your next San Jose utility statement arrives, compare the changed line items against the “current” and “maximum proposed” figures in your notice packet. Exact impacts will vary by account type, service area, and usage.

Sources

• City Proposition 218 rate noticing memo (Garbage/Water/Sewer; July 1, 2026 effective date)