The current budget for the plant upgrade is sizable at approximately 75 million, including 56.6 million in a guaranteed construction contract. While historical system financial performance has been healthy, adequate coverage on the 2006 bonds will require a significant increase in net revenues. The city council and sanitary district boards have already approved rate increases of 32 in fiscal 2006 and an additional 59 over the next three years, to 65.68 in fiscal 2009. While high, these rates would not be the highest for comparable sanitary districts in northern California, and the rate increases have gone through the required public hearing process.
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