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

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Water and Sewer Rates March 17, 2026 Page 9 To minimize impacts to ratepayers and provide a gradual transition, the proposed rate plans would be implemented over a five-year period, increasing from $7 to $8 per month annually as shown in the table below. The monthly bill for a typical customer during the proposed rate period would be as follows- 2026 2027 2028 2029 2030 $60.42 $64.60 $70.39 $76.73 $83.67 $90.40 $7.62 $10.56 $11.98 $13.18 $14.50 $15.95 Combined $68.04 $75.16 $82.37 $89.91 $98.17 $106.35 In addition to the proposed rate adjustments, the City is planning to transition from the current bi-monthly billing cycle to monthly billing following implementation of the Smart Water Meter Program. Monthly billing is intended to provide customers with more timely and manageable billing information and offers several benefits compared to bi-monthly billing, including: Improved ability for customers to budget for and anticipate utility expenses Lower individual bill amounts (though billed more frequently), which may make bills easier to manage and pay on time Earlier notification of leaks or unusual water use, allowing customers to take corrective action within approximately 30 days rather than waiting up to 60 days under the current billing cycle When compared to neighboring cities, the typical Santa Ana customer will continue to pay a lower amount, on average, for water services as compared to other Orange County cities, such as Garden Grove, La Habra, Fullerton, Tustin, Newport Beach, and San Clemente (Exhibit 4). Similarly, customers will continue to pay a lower amount, on average, for sewer service as compared to other Orange County cities such as Huntington Beach, Orange, Newport Beach, Fullerton, and San Clemente (Exhibit 5). Public Hearina Notification and Communitv Outreach At the January 20, 2026 City Council Meeting, the City Council directed staff to proceed with a Proposition 218 compliant process for adjusting water, recycled water, and sewer rates. As required by the provisions of Proposition 218, notices of a public hearing for adjustments rates were mailed to property owners and customers of record on or before January 31, 2026 (Exhibits 6 and 7). Additionally, public documents, informational videos, a rate calculator, and other resources were made available to the public on the City's dedicated website,