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FAQs, and bill comparison charts online, allowing <br />each customer to review their specific impact. <br />Over the past three years, several court cases in <br />California have addressed the legality of tiered rates, <br />primarily focusing on Proposition 218 requirements, <br />which include: <br />• Rates must be proportional to the cost of service. <br />• Revenue cannot exceed the funds required to <br />provide the service. <br />• No user should pay more than their proportional <br />share. <br />• Agencies must demonstrate the cost basis for the <br />rates. <br />Proposition 218 is a voter-approved California law <br />requiringwater rates to be proportional to the actual <br />cost of service. Fixed charges are established fees <br />that apply to all customers, regardless of their water <br />usage. These charges cover the costs of operating, <br />upgrading, and maintaining the water system, <br />including pipelines, tanks, hydrants, and pump <br />stations, which are necessary regardless of <br />individual consumption. The City's Water System <br />Management Plan and financial plan identified over <br />$73 million in critical improvements needed in the <br />next five years to ensure the safety and reliability of <br />Pleasanton's water system. <br />Additionally, the City currently recovers only 32 <br />percent of Zone 7's fixed costs, with the remaining <br />