Oakleigh City Council Approves 2027 Utility Rate Adjustments and Property Tax Levy Changes

On July 7 the Oakleigh City Council passed two budget resolutions that set utility rates and the municipal property tax levy for fiscal year 2027. The votes raised the base water and sewer charge by 4 percent while expanding the existing low-income discount to cover an additional 1,200 households. A separate measure lowered the assessment ratio on primary residences from 45 percent to 43 percent of market value.

The changes occur as the city prepares its operating budget amid higher wholesale electricity and treatment costs reported in the 2026 utility cost study. Council documents show that the prior rate schedule would have produced a $1.8 million shortfall in the water enterprise fund without adjustment.

Household Budget Calculations

A single-family home assessed at $320,000 will see its annual property tax bill drop by an average of $68 under the new ratio, according to the county assessor’s projection released with the council packet. For water and sewer, the typical quarterly bill for 12,000 gallons of usage rises from $142 to $148 after the base charge increase, though households already enrolled in the discount program will pay $12 less than the previous year.

The resolutions also direct $320,000 from the general fund to expand the utility assistance program administered through the Oakleigh Housing Authority. Eligibility now extends to residents whose income is at or below 80 percent of the area median, up from the prior 70 percent threshold.

Next Steps for Implementation

City staff will mail updated tax statements in October and begin applying the new utility rates on January 1. The council scheduled a public review of the discount program enrollment data for its December meeting. The 2027 budget document states that further rate reviews will occur after the next wholesale cost study due in March 2027.