Item 23 - Public Hearing to Consider Proposed Water and Sewer Rate Adjustments

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WHEREAS, the proposed rate structures are for a period of five years, and are proposed to take effect May 1, 2026, and to increase each July 1 thereafter commencing July 1, 2027, through and including July 1, 2030; and WHEREAS, the proposed water and sewer service fees (collectively, the "Fees") are property -related fees within the meaning of Article XIII D of the California Constitution; and WHEREAS, the revenues derived from the Fees will not exceed the funds required to provide the services for which the Fees are imposed, and will be used exclusively for the operation and maintenance of the City's water and sewer systems; and WHEREAS, the Fees are equitable to all customer classes; and WHEREAS, the amount of the Fees will not exceed the proportional cost of the service attributable to each parcel upon which they are proposed for imposition; and WHEREAS, the Fees will not be imposed on a parcel unless the service for which such Fees are imposed, is actually used by, or immediately available to, the owner of the parcel; and WHEREAS, the Fees will not be imposed for general governmental purposes, but only for the costs of operation and maintenance of the City's water and sewer systems; and WHEREAS, Article XIII D, section 6 of the California Constitution ("Article XIII D") requires that prior to imposing any increase to the Fees, the City shall provide written notice (the "Notice") by mail of the new or increased Fees to the record owner of each parcel upon which the Fees are proposed for imposition and any tenant directly liable for payment of the Fees, the amount of the Fees proposed to be imposed on each parcel, the basis upon which the Fees were calculated, the reason for the Fees, and the date time and location of a public hearing (the "Hearing") on the proposed Fees; and WHEREAS, on January 31, 2026, the City distributed notices as required by Article XIII D regarding the City Council's consideration of the proposed rate adjustments to the Fees at the March 17, 2026, public hearing to all owners of record and utility customers in accordance with Article XIII D, Section 6(a)(1) of the California Constitution and Government Code Section 53755; and WHEREAS, on March 17, 2026, the City Council held a duly noticed public hearing on the proposed Fees contained in this Resolution, and at that time invited oral and written comments from the public; and WHEREAS, upon close of said public hearing, the City did receive written protests to the proposed Fees and therefore there has been no majority protest; and Resolution No. 2026-XXX Page 2 of 5