Laserfiche WebLink
Page 3 of 9 <br />service and the rates charged to customers. The report was accepted by City Council <br />and included proposed potable and recycled water rate schedules for calendar years <br />2026 through 2029, a drought rate schedule for calendar years 2026 through 2029, and <br />water connection fees for 2026 that will be annually increased by the Consumer Price <br />Index (CPI). <br />6. Proposition 218 Public Hearing Notice – Proposition 218 requires that the City notify all <br />customers of record of proposed changes to the water rates no fewer than 45 days prior <br />to holding a public hearing to adopt the rates. The Proposition 218 Public Hearing <br />Notice, which was approved by the City Council, (see Attachment 2) was mailed on <br />August 1, 2025, with the public hearing set for October 7, 2025. Included in the notice is <br />an annual CPI increase for sewer rates, effective January 1, 2026. Later this year, the <br />City will conduct a sewer rate study to determine any necessary rate adjustments <br />moving forward to meet the City’s sewer collection system needs. Although the <br />proposed changes to the water connection fees are not subject to Proposition 218 <br />public notification and hearing requirements, they have been included for informational <br />purposes. <br /> <br /> <br />DISCUSSION <br />Customer Bill Impacts <br />The proposed four-year potable water, recycled water, and drought rate schedules and <br />connection fee schedule can be viewed in both the 2025 Water Rate Study report and the <br />Proposition 218 Public Hearing Notice. Impacts of these new schedules on overall customer <br />bills are summarized below. <br /> <br />Potable Water Rates - The potable water rates are made up of two components: (1) City fixed <br />and variable charges for delivery of water to customers and (2) Zone 7 fixed and variable <br />charges, which are passthrough costs collected by the City to cover the costs for water supply <br />purchases. The Zone 7 proposed rates assume a 5 percent increase each year; however, the <br />rates are subject to change based on actual costs set by Zone 7. Table 1 below shows the <br />impacts of the proposed combined potable water rates on bills for single-family customers with <br />a 5/8-inch meter (the most common customer) at various levels of bi-monthly usage. Figures <br />1, 2, and 3 below compare the proposed bi-monthly bills for low, average, and high usage <br />versus the current bills for nearby agencies that also rely on imported water from Zone 7. <br /> <br /> <br /> <br />Page 210 of 376