HomeMy WebLinkAboutR-11582 establishing the Water Service Rates for Financial Plan 2025-27R 11582
RESOLUTION NO. 11582 (2025 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, ESTABLISHING THE WATER SERVICE RATES
FOR FINANCIAL PLAN 2025-27
WHEREAS, it is the policy of the City of San Luis Obispo to review enterprise fund
rates on an ongoing basis and to adjust them as required to ensure that they remain
equitable and adequate to fully cover the cost of providing services; and
WHEREAS, a comprehensive water rate study was completed in March 2025 by
HDR Engineering, Inc. including analysis of Water Fund operating, capital, and debt
service needs for fiscal years 2025-26 and 2026-27; and
WHEREAS, on April 29, 2025, the City Council authorized the release of the City’s
Prop 218 notice outlining preliminary water rates based on updated revenue and
expenditure information necessary to meet system operating, capital, and debt service
requirements; and
WHEREAS, the City provided all required mailed notices in compliance with
Proposition 218 and the exhaustion of administrative remedies provisions of AB 2257;
and
WHEREAS, a public hearing was properly noticed and held on June 17, 2025; and
WHEREAS, a majority protest, as contemplated by Article XIII D of the California
Constitution, was not received by the conclusion of the public hearing.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Recitals. The City Council finds and determines that the recitals set
forth above as true and correct.
SECTION 2. Water Rates and Water System Access Charges. The water rates
and water system access charges set forth in Exhibit A are hereby adopted, establishing
water rates and water system access charges effective July 1, 2025 and July 1, 2026.
SECTION 3. California Environmental Quality Act. Modification of rates and
charges by public agencies is statutorily exempt from the California Environmental Quality
Act (CEQA) under Public Resources Code 21083 and 21080(b)(8) and State CEQA
Guidelines Section 15273 (Rates, Tolls, Fares, and Charges) because the change in
rates and charges is for the purpose of:
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a) Meeting operating expenses;
b) Purchasing or leasing supplies, equipment, or materials;
c) Meeting financial reserve needs and requirements;
d) Obtaining funds for capital projects necessary to maintain service within
existing service areas; and
e) Obtaining funds necessary to maintain such intra -city transfers as authorized
by City Charter.
The change in fees is not intended to fund expansion of capital projects not otherwise
evaluated under CEQA. Therefore, no environmental review is required for this item.
SECTION 4. Resolution Number 11427 (2023 Series) is hereby repealed and
superseded to the extent inconsistent herewith effective 11:59 p.m. June 30, 2025.
Upon motion of Council Member Marx, seconded by Vice Mayor Shoresman, and
on the following roll call vote:
AYES: Council Member Boswell, Francis, Marx, Vice Mayor Shoresman,
and Mayor Stewart
NOES: None
ABSENT: None
The foregoing resolution was adopted this 17th day of June 2025.
___________________________
Mayor Erica A. Stewart
ATTEST: APPROVED AS TO FORM:
______________________ ______________________
Teresa Purrington, City Clerk J. Christine Dietrick, City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington, City Clerk
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EXHIBIT A: 2025-27 WATER RATES
Usage
(Variable Per Unit Cost)
Proposed Rates
Effective July 1, 2025
Proposed Rates
Effective July 1, 2026
Single Family Residential
Tier 1: 0 to 5 units
$9.01 $9.51
Single Family Residential
Tier 2: 6 to 12 units
$10.38 $10.95
Single Family Residential
Tier 3: 13+ units
$17.90 $18.88
Multi-Family $10.11 $10.67
Non-Residential $10.70 $11.29
Landscape Irrigation $10.92 $11.52
Monthly Base Fees
(Fixed Cost)
Proposed Rates
Effective July 1, 2025
Proposed Rates
Effective July 1, 2026
Single Family Residential $31.91 $33.67
Multi-Family, Non-Residential, and Landscape Irrigation by Water Meter Size
0.75-inch or less meter $31.91 $33.67
1-inch meter $53.28 $56.21
1.5-inch meter $106.34 $112.19
2-inch meter $170.17 $179.53
3-inch meter $319.24 $336.80
4-inch meter $532.19 $561.46
6-inch meter $1,064.07 $1,122.59
8-inch meter $1,702.61 $1,796.25
Water System Access
Charge
$114.47 $120.76
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