By a 7-1 vote, the Sacramento City Council voted to increase monthly water rates by 10 percent and wastewater rates by 9 percent each year for the next four years.
The increases would total $98.8 million for the water fund and $29.8 million for the wastewater fund over the four year period.
The city's utilities department says the money will not be enough to allow the city to overcome decades of inadequately-funded water and wastewater programs.
Council member Rick Jennings said, "The buck has to stop somewhere and I think it has to stop here today with us moving forward to supporting this proposal from the staff."
The city says the monthly rates would increase by $6.59 in year one, $7.23 in year two, $7.93 in year three and $8.70 in year four.
People who make less than 200-percent over the poverty level may apply for an exemption from the rate hike.