ADMINISTRATIVE REPORT
MEETING DATE: June 25, 2025 AGENDA CATEGORY: Consent Resolutions TO: Honorable Mayor and City Council
FROM: Kristina Budak, Water Department Director
DATE: June 13, 2025
SUBJECT: Resolution establishing the Fiscal Year 2025 -26 sewer user rates and authorizing collection by the Kern County Auditor-Controller’s Office
(CPI Adjustments Only)
RECOMMENDATION:
Staff recommends adoption of resolution.
BACKGROUND:
Annual fees for residential and commercial sewer user rates are billed on the Kern County property tax roll each fiscal year. Also, new accounts added throughout the year are billed pro -rata by the City until the start of the next fiscal year.
The current rates are based on a rate study and Proposition 218 (“Prop 218”) process approved by the City Council in 2022. Specifically, on March 16, 2022, City Council approved proposed sewer user rate increases over a five-year period and authorized City staff to mail the requisite Prop 218 notices to rate payers. At the June 1, 2022 City Council meeting, following a public hearing, Council adopted Resolution No. 093-2022 that adopted increases sewer user rates for FY22/23 through FY 26/27, including increases effective each July 1 based on the Consumer Price Index (CPI) , as allowed by Prop 218. Accordingly, current rates for FY 25/26 are increasing by CPI Only per the prior Prop 218 process and Council Resolution No. 093-2022.
In order for the County to continue collecting the updated annual rates effective July 1, the County requires annual resolutions from the City Council affirming the applicable rates and authorizing placement on the tax roll.
This resolution authorizes the collection of the updated FY 25/26 sewer user rates by the Kern County Auditor-Controller’s Office on the property tax bill. This method is the most efficient mea ns of collecting said fees, as it combines mailing and payment functions into one.
These rate increases reflect CPI adjustments ONLY for the new fiscal year, as set forth and approved by City Council as part of its 5-year Prop 218 process referenced above. Bakersfield’s rates will remain among the lowest of comparable cities.
FISCAL IMPACT:
These charges are for services already rendered at fee levels previously set by City Council; therefore, there is no impact on the General Fund. Applicable rates do not exceed the estimated costs for service.
COUNCIL GOAL:
Reliable Infrastructure
ATTACHMENTS:
1. Resolution
2. Exhibit A