Agenda, regular meeting, second session — Bakersfield City Council, April 22, 2026 (part 3 of 4)

7/1/2026 Unit / 4/23/2025 Proposed Proposed
Proposed Additional Adopted $ Increase %Increase
Fees Fee Notes/Comments Fees (Decrease) (Decrease)
City of Bakersfield
Proposed Master Fee Schedule for 2026-27
For City Service Centers
Service
Center
Number
Fire Department Growth Fee 200 $ Each New Fee $ - $ New 200 3 General Plan Maintenance 211 $ Each 205 $ 6 $ 2.93%
A-2 Commercial Construction - New, Additions, Alterations, Remodel or Repair Fees in cost center are cumulative based on the
construction value of the proposed permitted work and
include related plan review and inspections
1 Commercial Construction - Permit Processing
and Inspection Fees
Valuation $1 to $40,000 450 $ Each 437 $ 13 $ 2.97%
Valuation $40,001 to $100,000,000 0.0060 $ x Valuation
To mitigate fee increases driven by higher Building
Valuation Data (BVD), the fee will be reduced. $ (0.0021) 0.0081 $ -25.93% Valuation $100,000,001 and $5,000,000 0.0054 $ x Valuation To mitigate fee increases driven by higher Building
Valuation Data (BVD), the fee will be reduced. $ (0.0027) 0.0081 $ -33.33% Valuation $5,000,001 and Greater 0.0049 $ x Valuation
To mitigate fee increases driven by higher Building
Valuation Data (BVD), the fee will be reduced. $ (0.0032) 0.0081 $ -39.51% Fire Department Growth Fee 200 $ Each New Fee $ 200 - $ New 2 Commercial Individual Trade Permit -
Electrical, Mechanical or Plumbing - Requiring
Multiple Inspections or Plan Check
Valuation $1 to $40,000 246 $ Each 239 $ 7 $ 2.93%
Valuation $40,001 and Greater 0.0059 $ x Valuation
To mitigate fee increases driven by higher Building
Valuation Data (BVD), the fee will be reduced. $ (0.0021) 0.0080 $ -26.25% A-3 Miscellaneous Commercial and Residential Construction Other than flat fee is calculated under service center A-1 or A-2
1 Residential or Commercial Individual Trade
Permit - Electrical, Mechanical or Plumbing -
Not Requiring Multiple Inspections or Plan
Check (complete list on file at Building
Division)
Permit Processing and Inspection Fees (each
permit) $ Each 136 140 $ 4 $ 2.94%
2 Residential or Commercial Common Flat Fee
Permit - Electrical Mechanical and/or
Plumbing - Requiring Multiple Inspections and
Plan Check. Applies Only to Types of Work
Below:

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7/1/2026 Unit / 4/23/2025 Proposed Proposed
Proposed Additional Adopted $ Increase %Increase
Fees Fee Notes/Comments Fees (Decrease) (Decrease)
City of Bakersfield
Proposed Master Fee Schedule for 2026-27
For City Service Centers
Service
Center
Number
Additional Plan Review (required by changes,
additions or revisions to approved plans) $ 135
x Hour
$ 132 $ 3 2.27%
2 Requested Plan Review Fees - Residential
Expedite Plan Review (8 hour minimum) 103 $ x Hour $ 100 $ 3 3.00% Additional Plan Review (required by changes,
additions or revisions to approved plans) $ 108
x Hour
$ 105 $ 3 2.86%
3 Special Inspections - Requested Building Inspection Fees Normal Business Hours (2 hour minimum) 99 $ x Hour $ 97 $ 2 2.06% Outside Normal Business Hours (2 hour
minimum) Actual Cost x Hour Based on salary schedule Actual Cost N/A N/A 4 Re-Inspections - Requested Building Inspection Fees
Normal Business Hours (2 hour minimum) 99 $ x Hour $ 97 $ 2 2.06% Outside Normal Business Hours (2 hour
minimum) Actual Cost x Hour Based on salary schedule Actual Cost N/A N/A 5 Temporary Sales Lots - Permit Processing and Inspection Fees Temporary Sales Lots (includes Christmas
tree & pumpkin lots, fireworks booths, parking
lot, tent sales, etc.) $ Each 140
The proposed increase is necessary to align with rising operational costs, including salary adjustments per the current salary schedule and increased expenditures for
program and service delivery. $ 4 136 $ 2.94%
6 Government Structures - Permit Processing and Inspection Fees Government Structures (includes structures
and property owned by a Federal, State,
County or City agency) $ Each Exempt - - $ N/A N/A
7 Request for Code Modification
Per Modification 302 $ Each $ 8 294 $ 2.72%
Additional Review and Analysis 193 $ Each $ 5 188 $ 2.66% 8 Request for Alternate Material & Method
Per Alternate Material / Method 302 $ Each $ 8 294 $ 2.72% Additional Review and Analysis (2 hour
minimum) $ 121 x Hour $ 118 $ 3 2.54%
9 Unreasonable Hardship Review (2 hour
minimum) $ 135 x Hour $ 3 132 $ 2.27%

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1.96% of
Valuation
1) Applicant will also be charged for the incremental costs of using outside consultants whenever applicant requests the use of outside consultants for inspection services
within normal working hours. Applicant will be charged full costs of using outside consultants when inspection
services are performed as overtime hours. Applicant will be charged full cost of using outside inspection services in cases where applicant requests expedited services
outside normal rotation.
2) Playground inspections will be charged to the applicant based upon actual costs incurred. This fee will only be charged in cases where an outside consultant inspects
the playground equipment for new parks.
$ 11 399 $ 2.76%
2 Overtime Rate Actual Cost Each
1) Actual overtime costs will be charged for inspection requests outside standard workday of 7AM - 4PM Monday
- Friday
Actual Cost N/A N/A
A-7 Street
1 Street Encroachment Permit $ 676 Each $ 657 $ 19 2.89% 2 Review of Easements $ 747 Each $ 726 $ 21 2.89%
A-8 State-Mandated Fire Inspection
1 Consultation Requests for in Home Care
Facilities
$ Each 279 Fee increase is required to cover salary/operating expenses within the Fire Prevention Services Division. $ 163 116 $ 140.52% 2 Fire Inspection
1-25 Units $ Each New Fee - 279 $ 279 $ New
26-50 Units $ Each New Fee - 367 $ 367 $ New
51-100 Units $ Each New Fee - 455 $ 455 $ New
A-9 Oil Well Inspection
1 Oil Well Inspection (annual) $ 279 Each
Fee increase is required to cover salary/operating
expenses within the Fire Prevention Services Division. $ 139 140 $ 99.29%

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7/1/2026 Unit / 4/23/2025 Proposed Proposed
Proposed Additional Adopted $ Increase %Increase
Fees Fee Notes/Comments Fees (Decrease) (Decrease)
City of Bakersfield
Proposed Master Fee Schedule for 2026-27
For City Service Centers
Service
Center
Number
2 Re-Inspection (if required) $ 279 Each
Fee increase is required to cover salary/operating
expenses within the Fire Prevention Services Division. $ 139 140 $ 99.29% 3 Oil Well Installation $ 144
Each Fee increase is required to cover salary/operating expenses within the Fire Prevention Services Division. $ 4 140 $ 2.86% A-10 Fire Safety Review / Inspection
1 Safety Inspections
Private Party / Insurance Requests 279 $
x Hour Fee increase is required to cover salary/ operating expenses within the Fire Prevention Services Division. $ 139 140 $ 99.29% Re-Inspection Fee 279 $
x Hour Fee increase is required to cover salary/ operating expenses within the Fire Prevention Services Division. $ 139 140 $ 99.29% 2 Tent Installation
Tent Installation 375 $
x Hour Fee increase is required to cover salary/ operating expenses within the Fire Prevention Services Division. $ 235 140 $ 167.86% Re-Inspection Fee
$ 144 x Hour Fee increase is required to cover salary/ operating expenses within the Fire Prevention Services Division. $ 4 140 $ 2.86% After Hours Tent Installation $ 151 x Hour 147 $ 4 $ 2.72% After Hours Re-Inspection Fee $ 151 x Hour 147 $ 4 $ 2.72% 3 Explosives Purchase, Sales & Storage
Inspection and Permit Fee
First Inspection $ 297 Each $ 8 289 $ 2.77%
Explosives Storage Permit $ 38 Each $ 1 37 $ 2.70%
Re-Inspection Fee $ 119 x Hour 116 $ 3 $ 2.59%
4 Pyrotechnics Inspection Permit
Pyrotechnics Inspection Permit $ 119 Each One-Time Fee per Event $ 3 116 $ 2.59% Normal Business Hours $ 119 x Hour 116 $ 3 $ 2.59%
After Hours Rate $ 151 x Hour 147 $ 4 $ 2.72%
5 Fireworks Booth Permit Fees
Application Fee - Fireworks Permit $ 48 Each Non-Refundable $ 1 47 $ 2.13% Administrative & Inspection Services $ 258 Each $ 7 251 $ 2.79%

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7/1/2026 Unit / 4/23/2025 Proposed Proposed
Proposed Additional Adopted $ Increase %Increase
Fees Fee Notes/Comments Fees (Decrease) (Decrease)
City of Bakersfield
Proposed Master Fee Schedule for 2026-27
For City Service Centers
Service
Center
Number
Other Than Minimum (if over 10,000 Square
Footage) $ 0.0183 x
Square
Footage $ 0.0005 0.0178 $ 2.81%
Re-Inspection Fee $ 119 x Hour 116 $ 3 $ 2.59%
7 Commercial Vent Hood Plan Review
Minimum Fee $ 297 Each $ 289 $ 8 2.77%
Inspection of Each Additional Vent Hood $ Each 69 71 $ 2 $ 2.90% Re-Inspection Fee $ 119 x Hour 116 $ 3 $ 2.59%
8 Standpipe System Plan Review
Inspection of Standpipes $ 119 x Hour 116 $ 3 $ 2.59%
Re-Inspection Fee $ 119 x Hour 116 $ 3 $ 2.59%
9 Portable LPG Storage / Distribution (one-time
Fee for businesses with portable propane) $ Each 116 119 $ 3 $ 2.59% 10 Mail Out Inspection $ Each 37 38 $ 1 $ 2.70%
11 Fire Prevention Oversight
$ Each 471
Fee increase necessary to recover costs associated with Fire Sprinkler and alarm permits throughout the City of Bakersfield. These inspections involve multiple inspection to the site to complete both the Fire Sprinkler and Fire Alarm permits
$ 334 137 $ 243.80%
B-25 Tentative Subdivision Map Review
1 Parcel Map Review
Tentative Parcel Map Review $ 4,765 Each $ 4,627 $ 138 2.98% Fire Department Growth Fee $ 200 Each New Fee $ - $ 200 New 2 Revised Parcel Map Review
Revised Tentative Parcel Map Review $ 3,944 Each $ 3,830 $ 114 2.98% Fire Department Growth Fee $ 200 Each New Fee $ - $ 200 New 3 Small Land Divisions Tentative Tract $ Each 4,066 4,187 $ $ 121 2.98% 4 Tract Map Review

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65.00 /
Lot $ 51 1,717 $ 2.97%
Additional Fee After Two Checks 10% of Original
Fee 10% N/A N/A
Fire Department Growth Fee $ 200 Each New Fee $ - $ 200 New

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Original Plan Submittal $ + 608 1.28% of
Valuation $ 17 591 $ 2.88%
Additional Plan Submittal After Second Check 10% of Original Fee 10% N/A N/A
Minor Revision to Plan After Plan Approved $ 608 Each $ 17 591 $ 2.88% Major Revision to Plan After Plan Approved $ + 608 1.28% of Valuation Based on current improvements 591 $ 17 $ 2.88% Major Revision to Plan During Checking
Process $ + 608 1.28% of Valuation Based on revised portion 591 $ 17 $ 2.88% 4 Maintenance District Formation and
Assessment District Apportionment Fees
Maintenance District Formation Fee $ 1,166 Each $ 1,133 $ 33 2.91% Apportionment Fee for Assessment Districts Actual Costs Each Name change only Actual Costs N/A N/A

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7/1/2026 Unit / 4/23/2025 Proposed Proposed
Proposed Additional Adopted $ Increase %Increase
Fees Fee Notes/Comments Fees (Decrease) (Decrease)
City of Bakersfield
Proposed Master Fee Schedule for 2026-27
For City Service Centers
Service
Center
Number
Material Type 17 Inspection Fee
$ 279 x Hour Fee increase is required to cover salary/ operating expenses within the Fire Prevention Services Division. $ 163 116 $ 140.52% Material Type 18 Small Quantity Generator $ Each 86 88 $ 2 $ 2.33% 2 Hazardous Waste Permits
Conditionally Exempt $ Each 143 147 $ 4 $ 2.80%
Permit by Rule $ Each 307 316 $ 9 $ 2.93%
Conditionally Authorized $ Each 230 236 $ 6 $ 2.61%
Large Quantity Generator (LQG) 367 $ Each
Fee increase is required to come in line with the actual time fire inspectors spend on site to do inspections of these large sites. $ 191 176 $ 108.52%
3 Oversight for Environmental Services
Follow-Up on Hazardous Waste Violation Fee $ 141 x Hour 137 $ 4 $ 2.92% Risk Management Prevention Plan Fee -
Lower Risk Sites $ Each 407 419 $ 12 $ 2.95%
Risk Management Prevention Plan Fee -
Moderate Risk Sites $ Each 562 578 $ 16 $ 2.85%
Risk Management Prevention Plan Fee -
Medium Risk Sites $ Each 814 838 $ 24 $ 2.95%
Risk Management Prevention Plan Fee - High
Risk Sites $ Each 1,286 1,324 $ 38 $ 2.95%
Risk Management Prevention Plan Fee -
Extreme Risk Sites $ Each 2,574 2,651 $ 77 $ 2.99%
Site Assessment & Cleanup Oversight $ 141 x Hour 137 $ 4 $ 2.92% Underground Storage Tank Oversight $ 141 x Hour 137 $ 4 $ 2.92% Spill Prevention Control & Countermeasure
Plan $ 141 x Hour 137 $ 4 $ 2.92%
4 Underground Storage Tank Permits
New Tank Installation $ Each 1,090 1,122 $ 32 $ 2.94%
Re-Inspection Fee $ 119 x Hour 116 $ 3 $ 2.59%
Annual Operating Permit $ Each 351 361 $ 10 $ 2.85%
Mandated Leak Detection Testing $ 144
x Hour Fee increase is required to cover salary/ operating expenses within the Fire Prevention Services Division. $ 4 140 $ 2.86% Tank Modification $ 1,122 Each $ 1,090 $ 32 2.94%

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7/1/2026 Unit / 4/23/2025 Proposed Proposed
Proposed Additional Adopted $ Increase %Increase
Fees Fee Notes/Comments Fees (Decrease) (Decrease)
City of Bakersfield
Proposed Master Fee Schedule for 2026-27
For City Service Centers
Service
Center
Number
Minor Tank Modification $ Each 220 226 $ 6 $ 2.73%
Tank Removal $ Each 739 761 $ 22 $ 2.98%
5 State Surcharge
Hazardous Materials Handler Set by State Each Fee is established by State of California Set by State N/A N/A Hazardous Waste Permits Set by State Each Fee is established by State of California Set by State N/A N/A Oversight for Risk Management Prevention
Plan Set by State Each Fee is established by State of California Set by State N/A N/A Underground Storage Tank Permits Set by State Each Fee is established by State of California Set by State N/A N/A Above Ground Petroleum Storage Tanks Set by State Each Fee is established by State of California Set by State N/A N/A 6 File Research Fee $ 59 x Hour 58 $ 1 $ 1.72%
7 Above Ground Flammable Liquid Storage
Tank Installation Inspection
Installation Inspection of One Tank $ Each 247 254 $ 7 $ 2.83% Charge for Each Additional Tank $ 119 x Hour 116 $ 3 $ 2.59% Tank Removal
$ Each 153 157 $ 4 $ 2.61%
Re-Inspection Fee $ 119 x Hour 116 $ 3 $ 2.59%
B-41 Cultural Resource Review

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7/1/2026 Unit / 4/23/2025 Proposed Proposed
Proposed Additional Adopted $ Increase %Increase
Fees Fee Notes/Comments Fees (Decrease) (Decrease)
City of Bakersfield
Proposed Master Fee Schedule for 2026-27
For City Service Centers
Service
Center
Number
C-52 Police Recording Duplication Service
1 Police Recording Duplication Service Fee $ 11.00 x QTR Hour 11.00 $ - $ 0.00% C-53 Police Photograph Copy
1 Digital Imaging Sale $ Each 11.00 11.00 $ - $ 0.00%
C-54 Document Printing and Copying
1 Photocopying Charges No charge for documents that are less than 250 pages - per copy charge is a minimum collection amount of $5.00 Standard & Legal Sized Documents $ 0.02 x Page 0.02 $ - $ 0.00% Copy of Microfilmed Documents $ 0.02 x Page 0.02 $ - $ 0.00% Special Maps & Oversized Documents Actual Cost Each Actual cost based on labor & materials Actual Cost N/A N/A 2 Printed Documents (IE budget) Actual Cost Each Actual cost based on labor & materials Actual Cost N/A N/A 3 Police Crime Reports $ 0.02 x Page
No charge to the filer; No charge for documents that are less than 250 pages - per copy charge is a minimum
collection amount of $5.00
$ - 0.02 $ 0.00%
C-55 Request for Public Records
1 Requests for Public Records
Photocopying Charges No charge for documents that are less than 250 pages - per copy charge is a minimum collection amount of $5.00 Standard & Legal Size $ 0.02 x Page 0.02 $ - $ 0.00%
Copies from Microfilm $ 0.02 x Page 0.02 $ - $ 0.00%
Other Direct & Indirect Charges Actual Cost Each Actual Cost N/A N/A 2 Requests by Subpoena
Copy Service Fee (to locate & compile
records) $ Each Fee set by legislation 15 15 $ - $ 0.00% Direct Labor Costs (to locate, compile & copy
records $ 24 x Hour Fee set by legislation 24 $ - $ 0.00% Photocopying Charges
Standard & Legal Size $ 0.10 Each Fee set by legislation $ - 0.10 $ 0.00% Copies from Microfilm $ 0.20 Each Fee set by legislation $ - 0.20 $ 0.00% Other Direct Charges Actual Cost Each Fee set by legislation Actual Cost N/A N/A

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7/1/2026 Unit / 4/23/2025 Proposed Proposed
Proposed Additional Adopted $ Increase %Increase
Fees Fee Notes/Comments Fees (Decrease) (Decrease)
City of Bakersfield
Proposed Master Fee Schedule for 2026-27
For City Service Centers
Service
Center
Number
Level 4 - Vehicle Fire Reinforced $ 709 Each
Incident involving train, semi or recreational vehicle requiring fire suppression, breathing air, hand tools, hose, foam, exposure protection, and clean up gasoline or other automotive fluids that are spilled.
$ 20 689 $ 2.90%
Add on Services: Rescue/Extraction $ 1,870 Each This charge will be added if the fire department must free/remove anyone from the vehicle(s) using any equipment. $ 54 1,816 $ 2.97% Create a landing zone $ 571 Each The department will bill at this level any time a helicopter landing zone is created and/or is utilized to transport the patient(s). $ 16 555 $ 2.88% 2 Hazmat Incident
Level 1 - 1 Engine and Haz-Mat team consult $ 1,004 Each Release or threatened release of harmful materials in limited or isolated amounts with no immediate danger to life or health. $ 29 975 $ 2.97% Level 2 - Inc. 2 Engines, Haz-Mat Team, PIO,
Prevention & Safety Officer. $ 3,587 Each Release or threatened release of harmful materials, in moderate amounts, that may be immediately dangerous to life or health. $ 104 3,483 $ 2.99% Level 3 - Inc. 2 Engines, 1 Truck, Haz-Mat
Team, PIO, Prevention, Safety Officer &
Deputy Chief.
$ 8,469 Each
Release or threatened release of hazardous materials in significant amounts and/or materials that may be immediately dangerous to life or health. Includes 3 hours of on-scene time
$ 246 8,223 $ 2.99%
- each additional hour @ $381.00 per
HAZMAT team. $ 404 Hour $ 11 393 $ 2.80%
3 Fires
Fire Engine Callouts $ 572 Each Includes: Scene Safety, investigation & Fire / Hazard Control $ 16 556 $ 2.88% Hourly charge per Engine $ 715 Hour Includes: Scene Safety, investigation & Fire / Hazard Control $ 20 695 $ 2.88% 4 Water Rescue Incidents
Rescue team (per person) $ 70 Hour $ 2 68 $ 2.94%
Haz Mat Team (per person) $ 142 Hour $ 4 138 $ 2.90%
Level 1 - Basic Response $ 572 Each
Include engine response, first responder assignment, perimeter establishment, evacuations, first responder set-up and command, scene safety, and investigation.
$ 16 556 $ 2.88%
Level 2 - Intermediate Response $ 1,146 Each
Includes Level 1 services as well as clean up and material used, minor hazardous clean up, and disposal. The department will bill at this level if the fire department must clean up small amounts of gasoline or other fluids that are spilled as a result of the incident $ 33 1,113 $ 2.96%
Level 3 - Advance Response $ 2,837 Each
Includes Level 1 and Level 2 services as well as USAR activation, donning of breathing apparatus, and the use of detection equipment.

Potential Haz Mat Response.
$ 82 2,755 $ 2.98%
Level 4- Itemized Response $ 572 Each
The City has the option to bill each incident as an independent event with custom mitigation rates for each incident using itemized rates deemed usual, customary, and reasonable (UCR). These incidents will be billed, itemized, per trained rescue person, plus rescue products used
$ 16 556 $ 2.88%

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1. Non-Profit Rate (Pre-approval required): 25% discount on the base reservation fee is available to qualifying nonprofit organizations. Eligibility must be verified with proof of 501(c) (3) status and a Tax ID number, along with
Recreation and Parks department approval. Field rentals, Program fees, Miscellaneous and Amenity Fees are
exempt from this rate.

E - Recreation / Cultural

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7/1/2026 Unit / 4/23/2025 Proposed Proposed
Proposed Additional Adopted $ Increase %Increase
Fees Fee Notes/Comments Fees (Decrease) (Decrease)
City of Bakersfield
Proposed Master Fee Schedule for 2026-27
For City Service Centers
Service
Center
Number
1 Non-Resident Fee $ 26 Each
Added to all resident fees below (excludes alcohol permit & rescheduling / cancellation fees). Rates have not been increased based on the CPI per Parks program needs.
$ - 26 $ 0.00%
2 Park Area Rental - One Area - Resident
(excludes the park at the riverwalk,
Bakersfield sports village park and mesa
marin park)
Half-Day Rental (7AM - 2PM or 3PM - 10PM) $ 101 Each Excludes alcohol permit. $ 2 99 $ 2.02% Full Day Rental $ 204 Each Excludes alcohol permit. $ 5 199 $ 2.51% Park Serving Shelter Rental - Half-Day $ 31 Each $ - 31 $ 0.00% $ 64 Each $ 1 63 $ 1.59%
3 The Park at River Walk - One Area - Resident
Half-Day Rental (7AM - 2PM or 3PM - 10PM) $ 176 Each Excludes alcohol permit. $ 5 171 $ 2.92% Full-Day Rental $ 353 Each Excludes alcohol permit. $ 10 343 $ 2.92% 4 Bakersfield Sports Village Park - One Area -
Resident
Half-Day Rental (7AM - 2PM or 3PM - 10PM) $ 176 Each Excludes alcohol permit. $ 5 171 $ 2.92% Full-Day Rental $ 353 Each Excludes alcohol permit. $ 10 343 $ 2.92% 5 Mesa Marin Park - One Area - Resident
Half-Day Rental (7AM - 2PM or 3PM - 10PM) $ 176 Each Excludes alcohol permit. $ 5 171 $ 2.92% Full-Day Rental $ 353 Each Excludes alcohol permit. . $ 10 343 $ 2.92% 6 Exclusive Use of Park Facilities
Half-Day Rental (excludes the park at the
riverwalk, Bakersfield sports village park and
mesa marin park)
$ 573 Each Excludes alcohol permit $ 16 557 $ 2.87%
Full-Day Rental (excludes the park at the
riverwalk, Bakersfield sports village park and
mesa marin park)
$ 1,150 Each Excludes alcohol permit $ 33 1,117 $ 2.95% Half-Day Rental - Park at Riverwalk $ 1,150 Each Excludes alcohol permit $ 33 1,117 $ 2.95% Full-Day Rental - Park at Riverwalk $ 2,305 Each Excludes alcohol permit $ 67 2,238 $ 2.99%

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7/1/2026 Unit / 4/23/2025 Proposed Proposed
Proposed Additional Adopted $ Increase %Increase
Fees Fee Notes/Comments Fees (Decrease) (Decrease)
City of Bakersfield
Proposed Master Fee Schedule for 2026-27
For City Service Centers
Service
Center
Number
Half-Day Rental - Bakersfield Sports Village
Park $ 1,150 Each Excludes alcohol permit $ 33 1,117 $ 2.95% Full-Day Rental - Bakersfield Sports Village
Park $ 2,305 Each Excludes alcohol permit $ 67 2,238 $ 2.99% Half-Day Rental - Mesa Marin Park $ 1,150 Each Excludes alcohol permit $ 33 1,117 $ 2.95% Full-Day Rental - Mesa Marin Park $ 2,305 Each Excludes alcohol permit $ 67 2,238 $ 2.99% City Staff Charges - Supervision Actual Costs x Hour 2 hour minimum Actual Costs N/A N/A City Staff Charges - Custodial Actual Costs x Hour 2 hour minimum Actual Costs N/A N/A 7 Sports Field Rental
Sports Field Rental $ 28 x Hour 2 hour minimum $ - 28 $ 0.00% Sports Field Lighting $ 38 x Hour 2 hour minimum $ 23 15 $ 153.33% Field Prep $ 48 Each $ 1 47 $ 2.13%
Field Prep - Partial with Chalk Only $ 23 Each $ - 23 $ 0.00% Field Prep - Partial with Chalk and Water Only $ 37 Each $ 1 36 $ 2.78% 8 Sports Field Rental - Tournament (per field
per day)
Sports Field Rental - Tournament $98 per Day
per Field +
10% of
Gross
Receipts
Non-profits excluded from 10% of gross receipts fee $98 per Day per Field $ 0.00% -
Field Prep $ 48 Each 1st game prep included in rental fee $ 1 47 $ 2.13% Field Prep - Partial with Chalk Only $ 23 Each $ - 23 $ 0.00% Field Prep - Partial with Chalk and Water Only $ 37 Each $ 1 36 $ 2.78% Sports Field Lighting $ 38 x Hour 2 hour minimum $ 23 15 $ 153.33% 9 Mesa Marin Sports Field Rental - Tournament
(per Field per Day)
Mesa Marin Sports Field Rental - Tournament $ 132 x
per Day
per Field Excludes alcohol permit $ 129 $ 2.33% 3
Sports Field Lighting $ 38 x Hour 2 hour minimum $ - $ New 38 10 Park Amenities - Tournaments (per day)
Horseshoe Pits $ 63 x Day $ 1 62 $ 1.61%
Tennis Courts $ 63 x Day $ 1 62 $ 1.61%
Basketball Courts (outdoor) $ 63 x Day $ 1 62 $ 1.61%
Sand Volleyball $ 63 x Day $ 1 62 $ 1.61%

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7/1/2026 Unit / 4/23/2025 Proposed Proposed
Proposed Additional Adopted $ Increase %Increase
Fees Fee Notes/Comments Fees (Decrease) (Decrease)
City of Bakersfield
Proposed Master Fee Schedule for 2026-27
For City Service Centers
Service
Center
Number
Kitchen (with room rental) $ 18 x Hour 2 hour minimum $ - 18 $ 0.00% Table and Chair Set-Up Actual Cost Each 98 $ N/A N/A
Surcharge After 10 PM $ 64 x Hour 63 $ 1 $ 1.59%
City Staff Charges - Supervision Actual Cost x Hour 2 hour minimum Actual Cost N/A N/A City Staff Charges - Custodial Actual Cost x Hour 2 hour minimum Actual Cost N/A N/A 2 Silver Creek Community Center
Room Rental $ 121 x Hour 2 hour minimum - combined 2 rooms $ 3 118 $ 2.54% Covered Pavilion $ 54 x Hour 2 hour minimum $ 1 53 $ 1.89% Kitchen (with room rental) $ 44 x Hour 2 hour minimum $ 1 43 $ 2.33% Table and Chair Set-Up Actual Cost Each 98 $ N/A N/A
Surcharge After 10 PM $ 64 x Hour 63 $ 1 $ 1.59%
City Staff Charges - Supervision Actual Cost x Hour 2 hour minimum Actual Cost N/A N/A City Staff Charges - Custodial Actual Cost x Hour 2 hour minimum Actual Cost N/A N/A 3 Saunder's Multi-Use Facility
Covered Pavilion $ 79 x Hour 2 hour minimum - includes lighting $ 2 77 $ 2.60% 4 Mill House
Facility Rental $ 121 x Hour 2 hour minimum $ 3 118 $ 2.54% 5 Community House
Room Rental $ 121 x Hour 2 hour minimum - combined 2 rooms $ 121 - $ N/A Kitchen (with room rental) $ 88 x Hour 2 hour minimum $ 88 - $ N/A Table and Chair Set-Up Actual Cost Each - $ Actual Cost N/A Surcharge After 10 PM $ 64 x Hour - $ 64 $ N/A
City Staff Charges - Supervision Actual Cost x Hour 2 hour minimum $ Actual Cost N/A - City Staff Charges - Custodial Actual Cost x Hour 2 hour minimum $ Actual Cost N/A - E-84 City Adult Programs and Activities
1 Non-Resident Fee $ 10 Each Added to all resident fees below $ - 10 $ 0.00% 2 City Adult Volleyball Program - Resident
With Officials - Indoors $ 371 Each $ 10 361 $ 2.77%
With Officials - Outdoors $ 309 Each $ 9 300 $ 3.00%
Without Officials $ 126 Each $ 3 123 $ 2.44%
Private Leagues Actual Cost Each Actual Cost N/A N/A
3 City Adult Softball Program - Resident
League Entry Fee per Team with Officials $ 504 Each $ 14 490 $ 2.86%

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2. Commercial Rate: Commercial or for-profit events are subject to a surcharge fee of 25% above the base rental fee, and an additional fee of up to 10% of gross event
revenue. An event is subject to the commercial rate when they meet one or more of the following criteria (qualifying non-profits exempt): the group is charging admission to the event or is selling a product or a service at the event. 1 Ticketed Events - Base Rent $ 2,662 Each $ 77 2,585 $ 2.98% 2 Non-Ticketed Events - Base Rent $ 1,597 Each $ 46 1,551 $ 2.97% F-90 Hearings and Appeals
1 Appeal (other than planning) $ 518 Each i.e., cabaret, taxi, fireworks, etc. $ 15 503 $ 2.98% 2 Appeal with Mailed Notice & Publication $ - Each $ - - $ N/A F-91 Water Resources Fees
1 Fire Hydrant Distribution and Installation
Inspection
Operating, Maintenance and Replacement
Fee
$ 3,099 Each
Fee has not had a full cost recalculation since 2017, the cost of labor and materials has drastically changed during this time.
$ 1,644 1,455 $ 112.99%
Hydrant Flow and Testing (CalWater service
area)
$ 151 Each
Fee has not had a full cost recalculation since 2017, the cost of labor and materials has drastically changed during this time.
$ 63 88 $ 71.59%
Hydrant Flow and Testing (Oustide CalWater
service area)
$ 386 Each
Fee has not had a full cost recalculation since 2017, the cost of labor and materials has drastically changed during this time.
$ 67 319 $ 21.00%
After Hours Testing (CalWater service area) $ 139 Each $ 4 135 $ 2.96% After Hours Testing (Oustide CalWater
service area) $ 428 Each $ 12 416 $ 2.88%
2 Fire Service Inspection $ 674 Each $ 19 655 $ 2.90%
3 Domestic Water System and Fire Service
Plan Check $ 872 Each $ 25 847 $ 2.95%
F - Miscellaneous Fees

Page 39 of 41 ends

Page 40 of 41 ends

Page 41 of 41 ends

ADMINISTRATIVE REPORT
MEETING DATE: April 22, 2026 AGENDA CATEGORY: Consent – Public Hearing TO: Honorable Mayor and City Council
FROM: Jennifer M. Byers, Economic and Community Development Director DATE: March 19, 2026
SUBJECT: Public Hearing to consider Fiscal Year (FY) 2026-27 HUD Action Plan Annual Action Plan for the Community Development Block Grant (CDBG - $4,054,795), HOME Investment Partnerships (HOME - $1,572,489), Housing Opportunities for Persons with HIV/AIDS (HOPWA - $1,147,842), and Emergency Solutions Grant (ESG – $344,660) (Total – $7,119,786).

RECOMMENDATION:

Staff recommends approval of the 2026-27 Annual Action Plan and authorization for the City Manager to execute all documents necessary for submission to the U.S. Department of Housing and Urban Development (HUD).

BACKGROUND:

The FY 2026–27 Annual Action Plan represents the second year of implementation under the City’s Consolidated Plan 2030. The Plan outlines the activities proposed for funding through the following HUD entitlement programs: Community Development Block Grant (CDBG), Home Investment Partnership Grant (HOME), Housing for Persons with HIV AIDS Program (HOPWA), and Emergency Solutions Grant (ESG).

For FY 2026–27, the City anticipates a total of $7,119,786 in federal resources, including:
 $4,054,795 in CDBG funds
 $1,572,489 in HOME funds, which includes $80,000 in program income  $1,147,842 in HOPWA funds
 $344,660 in ESG funds
On February 23, 2026, the Finance, Economic Development and Jobs Committee reviewed and recommend the following projects for FY 2026-27 funding:

CDBG
• Install curb, gutter and sidewalk as needed prior to street reconstruction in the Alta Vista, Oakdale, and San Dimas areas;
• Lighting upgrades in South King Street/E Potomac and P Street areas; • R Street Community House ADA Improvements;
• Public Service funds for Bakersfield Senior Center Services and Fair Housing Program Services; and
• Home accessibility improvement for low/mod income persons with disabilities.

HOME
• New Construction Assistance and CHDO Set-Aside (required by HUD); • Victory Family Services Acquisition of Transitional Foster Youth Housing; and  Mercy House Tenant Based Rental Assistance RRH and prevention.

HOPWA
• Tenant-based rental assistance, short term assistance, emergency assistance, supportive services and housing information services for persons with HIV/AIDS.

ESG
• Street outreach, homeless shelter operations and services, rapid rehousing assistance and homeless prevention.

A full list of recommended projects, including budgets, is included in the attached materials along with the Draft FY 2026–27 Annual Action Plan.

Public Review and Comment
In accordance with HUD requirements, public notices were published in Spanish in El Popular on March 13, 2026, and in English in The Bakersfield Californian on March 6, 2026, initiating a 30-day public review and comment period. A public meeting was held on March 18, 2026. To date, no public comments have been received.

All proposed activity budgets are based on the actual FY 2025–26 allocations provided by HUD. Project budgets will be revised once HUD releases the final FY 2026–27 award amounts.

FISCAL IMPACT:

The funds for the proposed projects are funded by HUD as a federal entitlement grant and there would be no fiscal impact to the General Fund.

COUNCIL GOAL:

Community Character & Quality of Life
ATTACHMENTS:

1. FY 26-27 Draft Annual Action Plan

2. Proposed Projects
City of Bakersfield Draft
FY 2026-2027 Action Plan
Economic & Community
Development Department
1600 Truxtun Avenue
Bakersfield, CA 93301
CDBG, HOME, HOPWA and ESG Programs
Second Year of 2025-2030 Consolidated Plan
Expected Resources
AP-15 Expected Resources – 91.220(c) (1, 2)
Introduction
The City of Bakersfield anticipates $7,119,787.76 available for projects through entitlement grant programs and program income. Specifically, the city anticipates the following breakdown by grant source:
x CDBG: $4,054,795
x HOME: $1,572,489.76 (includes $80,000 program income) x HOPWA: $1,147,842
x ESG: $344,660
Priority Table
Table 1 - Expected Resources – Priority Table
Program Source
of Funds
Uses of Funds Expected Amount Available Year 1 Expected Amount
Available
Reminder of
ConPlan $
Narrative
Annual Description
Allocation:
$
Program
Income:
$
Prior Year
Resources:
$
Total:
$
CDBG public -
federal
Acquisition
Admin and
Planning
Economic
Development
Housing
Public
Improvements
Public Services 4,054,795 0 0 4,054,795 11,631,577
Program Source
of Funds
Uses of Funds Expected Amount Available Year 1 Expected Amount
Available
Reminder of
ConPlan $
Narrative
Annual Description
Allocation:
$
Program
Income:
$
Prior Year
Resources:
$
Total:
$
HOME public -
federal
Acquisition
Homebuyer
assistance
Homeowner
rehab
Multifamily
rental new
construction
Multifamily
rental rehab
New
construction for
ownership
TBRA
1,492,489.7
6 80,000 0
1,572,489.
76 4,459,147
Assumes
$80,000
program
income for
the current
action plan
year. Prior
year
resources
used as
estimate for
FY 26-27.

HOPWA public -
federal
Permanent
housing in
facilities
Permanent
housing
placement
Short term or
transitional
housing
facilities
STRMU
Supportive
services
TBRA 1,147,842 0 0 1,147,842 $3,291,734
Prior year
resources
used as
estimate for
FY 26-27.

ESG public -
federal
Conversion
and rehab for
transitional
housing
Financial
Assistance
Overnight
shelter
Rapid rehousing (rental
assistance)
Rental
Assistance
Services
Transitional
housing 344,660 0 0 344,660 1,016,120
Prior year
resources
used as
estimate for
FY 26-27.

Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied Applicants for CDBG, HOME, and ESG funds are rated on the percentage of assistance they are requesting from the City of Bakersfield. The City of Bakersfield gives preference to applicants that have other funds available to complete the project; and preferably, federal funds comprise less than 50 percent of the total project budget. The lower the percentage required from federal funds, the more points the proposal receives.

The CDBG Program does not require matching funds, although, in most instances, additional funds are required to make a project feasible to implement. Both the HOME and ESG programs require a match.

There is no federal match requirement for HOPWA; however, project sponsors report leveraged funds. Due to the nature of the program, leveraged funds are typically nominal.

In the five-year period from 2020 to 2025 of the City’s ConPlan, the City reported leveraging approximately $2.55 for each dollar of HUD funding.

In addition, the City of Bakersfield anticipates funds to be leveraged from other nonentitlement resources that include, but are not limited to:
x Low Income Housing Tax Credits (LIHTC) – New housing construction or residential rehabilitation programs funded in part with City of Bakersfield entitlement funding may leverage LIHTC. Federal 4 percent and 9 percent LIHTC are a likely principal source of funding in the construction or rehabilitation of affordable rental housing units, and are a dollar-for-dollar credit against federal tax liability for the tax credit investor.
x Section 8 Housing Choice Vouchers – the Housing Authority of the County of Kern administers the Section 8 program within the City of Bakersfield. Section 8 funds provide rent subsidies to assist in housing affordability within the rental housing market.
x Continuum of Care Funding (CoC) – The Bakersfield Kern Regional Homeless Collaborative, acting as the Continuum of Care for Kern County, receives funding directly from HUD to support efforts to end homelessness by providing housing and support services to families and individuals experiencing homelessness. In Fiscal Year 2024 HUD awarded the CoC $6.821 million in funding.
x State of California Affordable Housing Programs – In response to the affordable housing crisis in California the State government has opened up multiple funding sources for affordable housing development. These sources provide leveraging opportunities to create more affordable housing units with our HOME funds.

Sources such as No Place Like Home (NPLH), Affordable Housing Sustainable Communities (AHSC), and Transformative Climate Communities (TCC) are a few examples of funding sources which the City intends to leverage with its HOME allocation in order to create more affordable housing units. x State of California Homeless Grant - The Homeless Housing, Assistance and Prevention is a one-time block grant in 2020 that provides local jurisdictions with funds to support regional coordination and expand or develop local capacity to address their immediate homelessness challenges.

If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan See next page.

As the housing crisis has worsened in California, utilizing publicly owned land for affordable housing development has become an increasingly popular policy solution.

In January 2019, Governor Gavin Newsom issued an Executive Order directing State agencies to inventory and assess surplus State properties for their development potential. Unfortunately, the State owns just two surplus properties in Bakersfield, resulting in 1.99 total acres. For its part, the City regularly reviews its real estate portfolio and assesses if properties are being put to best use. Below includes a list of City owned properties:

City of Bakersfield Owned Properties for Community Development Parcel Address APN Parcel Size Zoning
407 Martin Luther Ling Blvd 019-071-11 .15 acres C-2
417 Martin Luther King Blvd 019-071-14 .33 acres C-2
808/812 Baker Street 016-060-07 .17 acres C-2
800 Baker Street 016-060-10 .09 acres C-2
121 Milham 139-422-06 .23 acres R-2
29 Augusta 018-250-26 .14 acres R-2
16 Milham 139-431-07 .22 acres R-2
3412 Hale Street 172-042-08 0.25 acres R-2 -MH
3407 Horne St Bakersfield 172-092-08 0.16 acres R-2 -MH 333 Augusta 018-220-31 .07 acres R-2
220 South King 139-360-14 .12 acres R-2
1201 Niles Street 015-240-20 0.35 acres MX-1
3412 Hale Street 172-042-08 .19 acres R-2-MH
T1443 B L51 Carver & Cottonwood 172-043-30 0.15 acres R-2-MH 1023 Robinson Street 015-400-17 0.11 acres R-3
335 S King Street 018-140-23 0.16 acres R-2
115 S Owens Street 018-270-15 0.15 acres R-2
705 33rd Street 002-051-30 0.11 acres R-3
913 Watts Drive 170-132-10 0.19 acres R-2
324 S King Street 139-302-16 0.32 acres R-2
P/Q Site (NEC of California Avenue &
P Street)
006-480-11, 006-510-
11, 006-510-12, 006-
510-04, 006-360-23 5.88 acres C-C
Creekview Villas Pad - 1 & 2
006-590-22 - 006-590-
36 .14/.16
acres C-C
Source: City of Bakersfield, 2025
Streets, curb, gutter, sidewalks and drainage systems are part of the City’s infrastructure that require improvements for FY 2026/27. This Action Plan has identified the following right-of-way infrastructure improvement projects funded through the CDBG program:
x Alta Vista Area Curb, Gutter, Sidewalk and ADA Improvements x Oakdale Street Area Curb, Gutter, Sidewalk and ADA Improvements x San Dimas Area Curb, Gutter, Sidewalk and ADA Improvements In addition to public infrastructure improvements, the City will install solar lighting in the area near South King and East Potomac Avenue and along P Street.

Annual Goals and Objectives
AP-20 Annual Goals and Objectives - 91.420, 91.220(c)(3)&(e) Goals Summary Information
Table 1 – Goals Summary
Sort
Order
Goal Name Start Year End Year Category Geographic
Area
Needs Addressed Funding Goal Outcome
Indicator
1 Decent and
Affordable
Housing
2026 2027 Affordable
Housing
City of
Bakersfield
Affordable housing
and supportive
services for lowincome households.

HOME: VFS
$702,847.32
8 units
Affordable
Housing
HOME: CHDO:
$235,873.46
Set Aside for
CHDO
Housing
Services
CDBG:
$100,000 Fair
Housing
Services GBLA
150 persons
Special
Needs
Housing
CDBG:
$262,838.25
HAIP Program
10 persons

Special
Needs
Housing

Mercy House
RRH and
Homeless
Prevention:
$476,520
HOME and
$170,430
CDBG
34 Households
2 Services for
Homeless
2026 2027 Homeless City of
Bakersfield
Housing and Shelter
services and rent for
persons experiencing
and at-risk of
homelessness
ESG: $64,350
Rapid
Rehousing
10 persons
Homeless ESG:
$64,460.50
Homeless
Prevention
10 persons
Homeless ESG: $165,000
Shelter
Operations
600 persons
Homeless ESG Outreach:
$25,000
60 persons
Homeless HOPWA
STRMU
80 persons
Special
Needs HOPWA TBRA: 40 persons

Special
Needs
HOPWA
Facility Based
PSH:
5 persons
Special
Needs HOPWA Short Term Housing:
20 persons
3 Public
Infrastructure
and Facility
2026 2027 Non-Housing
Community
Development
City of
Bakersfield
Improve and create
public
infrastructure/facilities,
CDBG:
$600,000
Oakdale CGS
3,275 persons
Improvement Non-Housing
Community
Development
rehabilitation of aging
public facilities and
infrastructure to
support the
population
CDBG:
$600,000 San
DImas Area
CGS
4,045 persons
Non-Housing
Community
Development
CDBG:
$600,000 Alta
Vista Area
CGS
665 persons
Non-Housing
Community
Development
CDBG:
$282,106.75
Lighting along
So, King Street
and E.

Potomac.
1,630 persons
Non-Housing
Community
Development
CDBG:
$478,461
Lighting along
P Street
5,825 persons

Non-Housing
Community
Development
CDBG: $60,000
Community
House ADA
Repairs
28,215
5 Services for
Special Needs
Population
2026 2027 NonHomeless
Special
Needs
City of
Bakersfield
Housing and Support
for Special Needs
population
CDBG: $90,000
Bakersfield
Senior Center
200 persons
Housing and Support
for Special Needs
population
HOPWA
Supportive
Services
100 persons
Housing and Support
for Special Needs
population
HOPWA
Housing
Information
Services
100 persons
Goal Descriptions
Table 2 – Goal Descriptions
1 Goal Name Decent and Affordable Housing
Goal
Description
Invest in and preserve the supply of affordable housing for low-and-moderate income households, including homeownership opportunities.
2 Goal Name Prevent and Reduce Homeless
Goal
Description
Prevent and reduce homelessness, including increased support related to mental and behavioral health.
3 Goal Name Economic Development Opportunities
Goal
Description
Foster and improve the quality of life by increasing access to economic development opportunities.
4 Goal Name Community Infrastructure and Facility Improvements Goal
Description
Improve community infrastructure and facilities to promote safe and vibrant communities.
5 Goal Name Services for Special Needs Population
Goal
Description
Increase vital services for special needs populations, including children and youth, seniors, persons with disabilities, and persons living with HIV/AIDS Estimate the number of extremely low-income, low-income, and moderate-income families to whom the jurisdiction will provide affordable housing as defined by HOME

91.215(b):

In FY 2026-27, the City of Bakersfield will provide affordable housing, through acquisition of existing low-income (50-80% AMI) rental units, as defined by HOME 91.215(b) to a minimum of seven households.

The City will assist in providing an estimated:
x 50 new housing units to be occupied by extremely low-, low- and moderateincome households during this ConPlan period. x 10 Home Accessibility Homeowner and Renter Rehab to persons with disabilities x 20 people through Rapid Rehousing and Homeless Prevention x 100 persons through HOPWA STRMU
x 40 persons through HOPWA TBRA
x 5 persons through Facility Based PSH HOPWA
x 20 Persons through Short Term Housing HOPWA
AP-35 Projects – 91.220(d)
Introduction
The ConPlan identifies five goals to address the City’s housing and community development needs during the five-year period (2025-30). General priority categories of housing, homelessness, special needs, and community development needs and their associated goals are addressed in the various activities to be undertaken. The following Action Plan 2026-27 projects estimate the number and type of families that will benefit from the proposed activities, including special local objectives and priority needs.

The Action Plan also provides information related to the proposed geographic distribution of investment. It includes a general description of homeless and other community development needs, activities to be undertaken, and other actions to address the obstacles in meeting underserved needs and reducing poverty.

The budget for the City’s first year of the Action Plan is $7,119,786.76 in entitlement funds and program income which is distributed as follows:
• CDBG - 4,054,795
• HOME - $1,572,489.76
• ESG - $344,660
• HOPWA - $1,147,842
Within the resources detailed above, the City anticipated utilizing $994,057.48 for planning and administration related to program delivery of entitlement grant programs.

Specifically, the City anticipates the following breakdown of costs associated with administration:
• CDBG - $810,959
• HOME - $157,248.98
• ESG - $25,849
• HOPWA - $34,435.26
The City anticipates utilizing 20% of CDBG program funds, 10% of HOME program income for planning and administration; and allowing Kern County Public Health (HOPWA Project Sponsor) up to $77,938.47 in administration costs (not exceeding 7% of HOPWA program funds net City administrative costs).

Table 1 – Project Information
# Project Name
1 Bakersfield Senior Center Public Services
2 Fair Housing Program Services
3 Alta Vista Area Curb, Gutter, Sidewalk Reconstruction 4 Oakdale Area Curb, Gutter, Sidewalk Reconstruction
5 San Dimas Curb, Gutter, Sidewalk Reconstruction
6 Solar Powered Street Lights on S. King Street and East Potomac Avenue 7 Solar Powered Street Lights on P Street
8 Home Accessibility Improvement Program
9 R Street Community House ADA Improvements
10 Mercy House Homeless Prevention and Rapid Rehousing Program for BLNC 11 General Management and Oversight
12 Victory Family Services Acquisition of Transitional Housing 13 Mercy House Tenant Based Rental Assistance RRH and Prevention 14 CHDO Set Aside
15 Home Administration/Planning Costs
16 Flood Ministries – Street Outreach
17 The Open Door Network – Shelter
18 The Open Door Network – Rapid Rehousing
19 The Open Door Network – Homeless Prevention
20 The Open Door Network AAFV – Shelter
21 The Mission at Kern County – Shelter
# Project Name
22 Kern County Public Health HOPWA Services
23 HOPWA City Administration
Describe the reasons for allocation priorities and any obstacles to addressing underserved needs
The ConPlan identifies five goals to address the housing and community development needs during the five-year period (2025-30). General priority categories of housing, homelessness, special needs, and community development needs and their associated goals are addressed in the activities to be undertaken. These activities estimate the number and type of families that will benefit from the proposed activities, including special local objectives and priority needs. In addition, the City takes into account consultation made with organizations, agencies, and residents to further refine priorities.

In anticipation of the next year's funding cycle, a Notice of Funding Availability is published each October regarding the availability of grant information, and notice is sent to a list of known service providers, community-based organizations, individual City departments, and any other person or entity that has expressed interest in the program.

All applications, including those submitted by City departments, are reviewed, qualified, and scored by Community Development staff on an equal basis for consideration by the Budget and Finance Committee of the City Council for inclusion in the Annual Action Plan for project funding.

Projects
AP-38 Projects Summary
Project Summary Information
Table 1 – Project Summary
1 Project Name Bakersfield Senior Center Public Services Target Area City of Bakersfield
Goals Supported Services for Special Needs Population
Needs Addressed
Funding CDBG: $90,000
Description Funds for public services for low-income seniors at the Bakersfield Senior Center located at 530 4th Street.

Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed
activities
200 low-mod income seniors will benefit from this activity.

Location Description Bakersfield Senior Center - 530 4th Street Planned Activities Operation and Maintenance for Senior Center located at 530 4th Street. 2 Project Name Fair Housing Program Services
Target Area City of Bakersfield
Goals Supported Decent and Affordable Housing
Needs Addressed
Funding CDBG: $100,000
Description Fair Housing services include legal assistance, education, intake, screening, counselling, testing and mediation.

Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed
activities
180 low/moderate income people will be assisted with this activity; a portion of those served may be disabled.

Location Description Citywide
Planned Activities Fair Housing services provided by an outside organization include legal assistance, education, intake, screening, counselling, testing and mediation. 3 Project Name Alta Vista Curb, Gutter, Sidewalk Reconstruction Target Area City of Bakersfield
Goals Supported Community Infrastructure and Facility Improvements Needs Addressed
Funding CDBG: $600,000
Description Install sidewalk, curb and gutter, access ramps, and cross-gutters where needed to improve drainage prior to resurfacing/reconstruction from Union Avenue to Alta Vista Drive and Niles Street to Bernard Street Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed
activities
665 low/moderate income persons will be served out of a total population of 1,175 in the area.

Location Description Area bounded by Union Avenue to the West, Alta Vista Drive to the east, Niles Street to the south and Bernard Street to the north. (Ward 3).

Planned Activities Install sidewalk, curb and gutter, access ramps, and cross-gutters where needed to improve drainage prior to resurfacing/reconstruction from Union Avenue to Alta Vista Drive and Niles Street to Bernard Street 4 Project Name Oakdale Area Curb, Gutter, Sidewalk Reconstruction Target Area City of Bakersfield
Goals Supported Community Infrastructure and Facility Improvements Needs Addressed
Funding CDBG: $600,000
Description Install sidewalk, curb and gutter, access ramps, and cross-gutters where needed to improve drainage prior to resurfacing/reconstruction. From Garnsey Avenue to Oakdale Drive, bounded by Palm Street, to Brundage Lane.

Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed
activities
3,275 low/moderate income people will be served out of a total population of 4,065 in the area.

Location Description Area bounded by Garnsey Avenue to Oakdale Drive, bounded by Palm Street to Brundage Lane. (Ward 2)
Planned Activities Install sidewalk, curb and gutter, access ramps, and cross-gutters where needed to improve drainage prior to resurfacing/reconstruction. From Garnsey Avenue to Oakdale Drive, bounded by Palm Street to Brundage Lane. 5 Project Name San Dimas Area Curb, Gutter, Sidewalk Reconstruction Target Area City of Bakersfield
Goals Supported Community Infrastructure and Facility Improvements Needs Addressed
Funding CDBG: $600,000
Description Install sidewalk, curb and gutter, access ramps, and cross-gutters where needed to improve drainage prior to resurfacing/reconstruction. Area between 34th Street to Espee Steet and West Niles, from Chester to west of the canals on Union Avenue.

Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed
activities
4,045 low/moderate income people will be served out of a total population of 4,590 in the area.

Location Description Area bounded from 34th Street to Espee Street and West Niles Street, from Chester Avenue to west of the canals on Union Avenue. (Ward 3) Planned Activities Install sidewalk, curb and gutter, access ramps, and cross-gutters where needed to improve drainage prior to resurfacing/reconstruction. Between 34th Street to Espee Street and West Niles Street, from Chester Avenue to west of the canals on Union Avenue
6 Project Name Solar Powered Street Lights on S. King Street and East Potomac Avenue Target Area City of Bakersfield
Goals Supported Community Infrastructure and Facility Improvements Needs Addressed
Funding CDBG: $282,107
Description Upgrade an existing high-voltage series lighting system that is no longer reliable with 21 new solar powered streetlight poles.

Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed
activities
1630 low/moderate income people will be served, which is 80% of the population of the area.

Location Description Area bounded by South King Street from the north end of Owens Elementary School to Virginia Avenue and on East Potomac Avenue from South Owens Street to South Baker Street. (Ward 2)
Planned Activities Upgrade existing lighting with 21 new solar powered streetlight polls including Smart Light Assembly, 28 W LED fixtures 24V NiMH Battery, 310 W solar module with top of pole assembly, powder coating and 6-foot-long crosspiece. 7 Project Name Solar Powered Street Lights on P Street
Target Area City of Bakersfield
Goals Supported Community Infrastructure and Facility Improvements Needs Addressed
Funding CDBG: $478,461
Description Upgrade an existing high-voltage series lighting system that is no longer reliable with 38 new solar powered streetlight poles.

Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed
activities
5,825 low/moderate income people will be served, which is 89% of the population of the area.

Location Description Area along P Street from California Avenue to Brundage Lane. (Ward 2) Planned Activities Upgrade existing lighting with 38 new solar powered streetlight polls including Smart Light Assembly, 28 W LED fixtures 24V NiMH Battery, 310 W solar module with top of pole assembly, powder coating and 6-foot-long crosspiece. 8 Project Name Home Accessibility Improvement Program (HAIP) Target Area City of Bakersfield
Goals Supported Services for Special Needs Population
Needs Addressed
Funding CDBG: $262,838
Description Provides accessibility modifications to low- and moderate-income households with persons with disabilities to remove physical barriers and support safe, independent living.

Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed
activities
Approximately 13 households will be assisted.

Location Description Citywide
Planned Activities Grants up to $15,000 for handicapped accessibility improvements to privately or publicly owned residential structures in neighborhoods. 9 Project Name R Street Community House ADA Improvements Target Area City of Bakersfield
Goals Supported Community Infrastructure and Facility Improvements Needs Addressed
Funding CDBG: $60,000
Description Repairs and upgrades to improve accessibility at the R Street Community House Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed
activities
28,215 low/moderate income persons will be served, which is 82% of the population of the area.

Location Description 2020 R Street, on the corner of 21st Street and R Street, next to Central Park and the Bakersfield Museum of Art
Planned Activities Upgrades and repairs to existing items to meet ADA standards. 10 Project Name Mercy House Homeless Prevention and Rapid Rehousing Program for BLNC (Admin)
Target Area City of Bakersfield
Goals Supported Services for Special Needs Population
Needs Addressed
Funding CDBG: $170,430
Description Administration for the Housing Solutions Program Manager, CalAIM oversees staff, service delivery, compliance, and partnerships to manage and expand housing-related Medi-Cal services for homeless and at-risk individuals across Kern County.

Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed
activities
The proposed project will benefit approximately 34 low- and moderate-income households per year, primarily consisting of individuals and families experiencing homelessness or at risk of homelessness within the City of Bakersfield.

Location Description Citywide
Planned Activities Activities include providing rapid rehousing and homelessness prevention services, such as case management, housing navigation, rental assistance, housing deposits, move-in costs, and access to supportive resources to help low- and moderate-income households obtain and maintain stable housing. 11 Project Name General Management and Oversight
Target Area City of Bakersfield
Goals Supported All
Needs Addressed Preserve/Expand Decent, Accessible, Affordable Housing Create/Retain/Attract Community & Economic Develop
Improve Public Infrastructure & Facilities Improve
Improve/Expand Public Facility & Services Special Needs Public Facilities/Services for Homeless & HIV/AIDS
Funding CDBG: $810,959
Description Costs associated with overall program management, coordination, and monitoring of the CDBG program.

Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed
activities
N/A
Location Description N/A
Planned Activities Costs associated with overall program management, coordination, and monitoring of the CDBG program.
12 Project Name Victory Family Services Acquisition of Transitional Housing Target Area City of Bakersfield
Goals Supported Decent and Affordable Housing
Needs Addressed Preserve/Expand Decent, Accessible, Affordable Housing Funding HOME: $702,847.32
Description Acquisition of existing 8-unit complex to serve as transitional housing.

Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed
activities
Minimum of 40 low-income households.

Location Description 1709 F Street
Planned Activities Acquisition of the existing eight-unit apartment building at 1709 F Street to be used as transitional housing for former foster youth ages 18–21. After purchase, the property will be operated as 100% affordable rental housing under Victory Family Services’ Transitional Housing Placement Program (THPP). 13 Project Name Mercy House Tenant Based Rental Assistance RRH and Prevention Target Area City of Bakersfield
Goals Supported Decent and Affordable Housing
Needs Addressed
Funding HOME: $476,520
Description The project will expand homeless prevention and rapid rehousing services in the City of Bakersfield by providing case management, housing navigation, and financial assistance to help 34 low- and moderate-income households obtain and maintain stable housing.

Location Description Citywide
Planned Activities Activities include providing rapid rehousing and homelessness prevention services, such as case management, housing navigation, rental assistance, housing deposits, move-in costs, and access to supportive resources to help low- and moderate-income households obtain and maintain stable housing. 14 Project Name CHDO Set Aside
Target Area City of Bakersfield
Goals Supported Decent and Affordable Housing
Needs Addressed Preserve/Expand Decent, Accessible, Affordable Housing Funding HOME: $235,873
Description Loans and/or grants to develop, acquire, rehabilitate, and/or construct affordable single or multi-family housing. Project to be implemented by a qualified Community Housing Development Organization (CHDO).

Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed
activities
A minimum of 2 low-income households.

Location Description Citywide
Planned Activities Gap financing associated with the development of affordable housing. 15 Project Name HOME Administration/Planning Costs
Target Area City of Bakersfield
Goals Supported Decent and Affordable Housing
Needs Addressed Preserve/Expand Decent, Accessible, Affordable Housing Funding HOME: $157,248.98
Description Costs related to overall management & coordination of the HOME program.

Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed
activities
N/A
Location Description N/A
Planned Activities Administrative costs associated with the management and coordination of the HOME Investment Partnership Program.
16 Project Name Flood Ministries – Street Outreach
Target Area City of Bakersfield
Goals Supported Prevent and Reduce Homeless
Needs Addressed
Funding ESG: $25,000
Description Provide homeless outreach services to homeless community members in the City of Bakersfield
Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed
activities
N/A
Location Description 1600 Truxtun Avenue, Floor 3 Bakersfield, CA 93301 Planned Activities Provide homeless outreach services to homeless community members in the City of Bakersfield and connect them with shelter, affordable housing and mainstream services needed to re-integrate them into the community. 17 Project Name The Open Door Network – Shelter
Target Area City of Bakersfield
Goals Supported Prevent and Reduce Homeless
Needs Addressed
Funding ESG: $70,000
Description Operational costs for the Open Door Network Homeless Shelter.

Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed
activities
300
Location Description 1600 E Truxtun Ave
Planned Activities Operational costs for the Open Door Network Homeless Shelter. 18 Project Name The Open Door Network – Rapid Rehousing Target Area City of Bakersfield
Goals Supported Prevent and Reduce Homeless
Needs Addressed
Funding ESG: $64,350
Description Relocation and stabilization, stabilization and short- and medium-term, rental assistance, as well as utility security deposits, and application fees for those who are currently homeless.

Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed
activities
10 Location Description 1921 19th Street, 93301
Planned Activities Relocation and stabilization, stabilization and short- and medium-term, rental assistance, as well as utility security deposits, and application fees. 19 Project Name The Open Door Network – Homeless Prevention Target Area City of Bakersfield
Goals Supported Prevent and Reduce Homeless
Needs Addressed
Funding ESG: $64,460.50
Description Relocation and stabilization, stabilization and short- and medium-term, rental assistance, as well as utility security deposits, and application fees for those at risk of homelessness.

Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed
activities
10 Location Description 1921 19th Street, 93301
Planned Activities Relocation and stabilization, stabilization and short- and medium-term, rental assistance, as well as utility security deposits, and application fees for those at risk of homelessness.
20 Project Name The Open Door Network AAFV – Shelter
Target Area City of Bakersfield
Goals Supported Prevent and Reduce Homeless
Needs Addressed
Funding ESG: $25,000
Description Operational costs for the Open Door Network Homeless AAFV Shelter.

Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed
activities
15 Location Description 1921 19th Street, 93301
Planned Activities Operational costs for the Open Door Network Homeless AAFV Shelter. 21 Project Name The Mission at Kern County – Shelter
Target Area City of Bakersfield
Goals Supported Prevent and Reduce Homeless
Needs Addressed
Funding ESG: $70,000
Description Operational costs for the Mission at Kern County Shelter.

Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed
activities
N/A
Location Description 816 E. 21st St.

Planned Activities Operational costs for the Mission at Kern County Shelter. 22 Project Name Kern County Public Health HOPWA Services Target Area City of Bakersfield
Goals Supported Services for Special Needs Population
Needs Addressed
Funding HOPWA: $1,147,482
Description Rental assistance, emergency assistance, housing counseling and related services to ensure safe and stable housing for persons living with HIV/AIDS.

Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed
activities
Short-term Rent, Mortgage and/or Utility assistance (STRMU): 80 Tenant-Based Rental Assistance (TBRA): 40
Facility-Based Housing – 5
Short Term Housing: 20
HOPWA Supportive Services – 100
HOPWA Information Services- 100
Location Description Citywide
Planned Activities Activities include Short-term Rent (STRMU), Tenant-based Rental Assistance (TBRA), Facility-based Housing, Housing Information Services, and Supportive Services.
23 Project Name HOPWA City Administration
Target Area City of Bakersfield
Goals Supported Services for Special Needs Population
Needs Addressed
Funding HOPWA: $34,435.26
Description Administrative costs related to oversight of HOPWA Program activities Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed
activities
N/A
Location Description N/A
Planned Activities Administrative costs related to oversight of HOPWA Program activities AP-50 Geographic Distribution – 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed CDBG. There are no targeted areas for CDBG investments within the City. Priority is given to areas comprised of 51% or more low-moderate income residents. Housing programs funded with CDBG funds are available city-wide to low- and moderateincome residents. Fair housing program services are also provided citywide. Supportive services are available city-wide to low- and moderate-income residents and person with special needs. Debt service on Section 108 public improvement projects are located in low- and moderate-income areas. Public infrastructure and facility improvements are in predominately low- and moderateincome areas.

HOME. One HOME Project has been selected and is located within the City of Bakersfield. The project does not focus on a particular area when matching eligible persons served. Staff is expecting several applications for affordable housing during the fiscal year. At that time, projects will be evaluated on how best they can serve low and moderate income households in the City. Previous year HOME funds will also be used for Down payment assistance for homes purchased by low and moderate income buyers citywide.

ESG. Supportive services are available citywide to the homeless.

HOPWA. HOPWA assistance will be available county-wide.

Geographic Distribution
Table 1 - Geographic Distribution
Target Area Percentage of Funds
City of Bakersfield 94
Rationale for the priorities for allocating investments geographically There are no specific geographic target areas in Bakersfield; however all public service programs funded with CDBG funding will be available city-wide to eligible persons. The City will also allocate CDBG funds for public facility and public infrastructure projects located in eligible low- and moderate-income areas. HOME funds will be targeted within the City of Bakersfield. ESG funds are targeted within the City of Bakersfield corporate limits, and HOPWA funds are available City-wide.

Affordable Housing
AP-55 Affordable Housing – 91.220(g)
Introduction
The City’s 2025-30 Consolidated Plan (ConPlan) ranks preserve and provide affordable housing opportunities to low- to moderate-income households as a high priority for the community. Surveys from the community and market studies on affordable housing established the ranking. In addition, the Housing Authority of the County of Kern and other low-income housing providers have long waiting lists from potential tenants for available affordable housing units. These lists continue to grow as the State’s affordable housing crisis increases. Currently, the Housing Authority of the County of Kern’s reports 19,986 households on the waiting list for affordable housing.

Adopted in 2025, the City of Bakersfield’s Housing Element includes programs to:
x Conserve and preserve the existing housing opportunities, viable housing stock, and neighborhoods;
x Assist the development of housing affordable to extremely-low, very-low, low, and moderate-income levels and populations with special needs; x Increase housing production by providing adequate sites for a variety of housing types and removing constraints to residential development; x Advance fair housing, equity, and inclusion;
x Housing for individuals and families experiencing homelessness; The City of Bakersfield continues to actively pursue its goal of creating decent, accessible and affordable housing. The City’s previous ConPlan stated that the City will develop, construct, or rehabilitate 200 affordable housing units during the five-year period. During that period, the following progress was made towards that goal:

Projects Constructed During the ConPlan 2020-25:
x 6th Street Apartments (40 units)
x Brentwood Crossings (58 units)
x Sagewood (72 units)
x Residents at East Hills (81 units)
x 22nd Street Lofts (20 units)
The City of Bakersfield’s 2025-2030 Consolidated Plan sets the City of Bakersfield’s targets for new affordable housing units at 200 units for the 5-year cycle. Currently, the City of Bakersfield has the following projects identified in previous Action Plans for funding and development:

Prospective Projects for Construction During the ConPlan 2025-30:
x Letzring Senior Housing (150 units, seniors only)
x City View Homes (37 units, homeownership only)
x Niles Street Apartments (51 units)
x 1302 Eye St (16 units)
x Village Park Senior (59 units)
x Renaissance at Baker (85 units)
x 800 South Baker (8 Units)
x 4th Street Apartments (16 units)
x Auburn Street Apartments (60 units)
x M Street Apartments (4 units)
x CityServe (125 units)
x
Broken down into one-year goals, the City shall prioritize its funding to develop, construct, or rehabilitate 40 affordable housing units per year. In addition to the 40 affordable units per year, the City plans to provide home accessibility improvements for at least 10 households, and provide rental assistance (Rapid Rehousing and Homeless Prevention) to 20 households. Additionally, the acquisition of Eight (8) existing affordable housing units are currently proposed for funding with the City of Bakersfield’s 2026-27 HOME allocation.

Affordable Housing
Table 1 - One Year Goals for Affordable Housing by Support Requirement One Year Goals for the Number of Households to be Supported Homeless
10 Rapid Rehousing
10 Homeless Prevention
80 HOPWA STRMU
40 HOPWA TBRA
20 HOPWA Facility Based
PSH
Non-Homeless 8 Rental Units Acquired
Special-Needs 10 Home Access
Total 178

Table 2 - One Year Goals for Affordable Housing by Support Type One Year Goals for the Number of Households Supported Through Rental Assistance
10 Rapid Rehousing
10 Homeless Prevention
80 HOPWA STRMU
40 HOPWA TBRA
20 HOPWA Facility Based
PSH
The Production of New Units 0 New Construction
Rehab of Existing Units 10 Home Access
Acquisition of Existing Units 8
Total 178
AP-60 Public Housing – 91.220(h)
Introduction
The Housing Authority of the County of Kern (Housing Authority) administers Bakersfield’s Public Housing programs and the Section 8 Housing Choice Vouchers. Currently, the Housing Authority operates and maintains 4 low-income public housing complexes, totaling 231 units in Kern County. Bakersfield is home to two of these developments, with a total of 41 units. The Housing Authority offers many different programs within these complexes to ensure self-sufficiency and success by its tenants. In the past year, the Housing Authority of the County of Kern (HACK) has provided Permanent Supportive Housing (PSH) to 1,571 homeless households.

The Section 8 Housing Choice Vouchers program is overseen by the Housing Authority.

Currently, the Housing Authority through the Section 8 Housing Voucher Program (HCV) has 3,945 households within Kern County. The program provides rental subsidies to lowincome families who spend more than 30% of their gross income on housing costs. These recipients are able to choose any housing that meets the requirements of the program and are not limited to those units, which are provided in subsidized housing projects.

The Housing Authority for the County of Kern (HACK) reports that 231 public housing units are occupied or committed. Additionally, 3,433 households in Bakersfield receive Housing Choice Voucher assistance. Despite these efforts, the demand for affordable housing still exceeds the available inventory, with 19,986 households currently on the public housing and housing choice voucher waiting lists.

Last fiscal year, the Housing Authority assisted 12 families to become first time homebuyers.

Actions planned during the next year to address the needs to public housing The City and the Housing Authority will continue to look for funding to construct additional low-income housing and provide self-sufficiency programs for clients. Last fiscal year, the Bakersfield City Council approved HOME funds for the Niles Street Apartments affordable housing project which will include 51 units. This project was supported by the City of Bakersfield in its Fiscal Year 24/25 Action Plan via amendment.

The project began construction in May of 2025. Additionally, City of Bakersfield is collaborating with the Housing Authority’s Community Housing Development Organization (CHDO) arm to perform predevelopment activities for a 16-unit affordable housing project known as 1302 Eye Street. This project is scheduled to begin construction in late 2026. In addition to working with the Housing Authority and other service providers, the City will fund Fair Housing education, outreach, testing, and referral services, monitor unfair/predatory lending practices, ensure training for apartment owners/managers on fair housing laws, and host or partner with service providers to hold Fair Housing workshops to educate the public about fair housing rights and housing laws.

Actions to encourage public housing residents to become more involved in management and participate in homeownership
The Housing Authority operates under the accountability of a seven-member Board of Commissioners appointed by the Kern County Board of Supervisors. Two of the seven commissioners, referred to as “Tenant Commissioners,” must live in public housing or participate in the voucher program. The Housing Authority employs 230 employees under an administrative structure headed by an Executive Director who reports to the Board of Commissioners. The mission of the Housing Authority is to improve the quality of life for low-income residents of Kern County by providing safe, affordable housing and by assisting residents to become self-sufficient and to achieve home ownership. Last fiscal year, the Housing Authority assisted 12 families to become first-time homebuyers.

If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance
Not applicable. The Housing Authority of the County of Kern is Bakersfield’s PHA and is not designated as troubled.

AP-65 Homeless and Other Special Needs Activities – 91.220(i) Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including
The City of Bakersfield’s ConPlan shows a 5-year goal of serving 3,000 homeless persons with shelter assistance and 100 households with Rapid Re-housing or Homelessness Prevention assistance. This year, the City anticipates serving 600 of the 3,000 homeless persons with shelter assistance and 20 of the 100 households with Rapid Rehousing and/or Homeless Prevention assistance. In addition, 60 people are anticipated to be served through homeless outreach. These goals will be accomplished through the City’s Emergency Solutions Grants (ESG) which will fund the following agencies in FY 2026-27.
• The Open Door Network – Shelter ($70,000 ESG)
• The Open Door Network – Rapid Re-Housing ($64,350 ESG) • The Open Door Network – Homelessness Prevention ($64,460.50 ESG) • The Mission at Kern County – Shelter ($70,000 ESG)
• Flood Bakersfield Ministries – Street Outreach ($25,000 ESG) • Alliance Against Family Violence – Shelter ($25,000 ESG) Additionally, through FY 2026-27 HOPWA funding, the City of Bakersfield will work with Kern County Public Health to reach out to and address the needs of the homeless persons living with HIV/AIDS.

Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
Assessing the Needs of Homeless Persons
The Bakersfield Kern Regional Homeless Collaborative (BKRHC), which serves as the local Continuum of Care (CoC), is a valuable source of outreach to the homeless community. It is the policy of the City’s Economic and Community Development Department to regularly have staff representation at CoC meetings in order to gain input from the BKRHC on homeless needs, priorities, and ESG project performance. The homeless subgroups each have unique needs. The CoC Governing Board includes at least one representative from the Homeless or Formerly Homeless Population; one Veterans Affairs/Homeless Veterans Service Provider Representative; and one McKinney-Vento Liaison/Local Education Agency Representative/or Educational Services to Homeless Children & Youth Representative. The city also participates in the yearly Point in Time Count (or homeless census) conducted by the BKRHC and was part of the process in developing the current BKRHC Strategic Plan. The City of Bakersfield also holds a seat on the BKRHC’s Executive Board.

The City will work with BKRHC to gather input throughout the Action Plan process from the homeless community. The City works with the collaborative to distribute Notice of Funding Availability of City HUD funds, Action Plan and CAPER notices, community input surveys, and public outreach flyers. The City will work to include postings at homeless shelters, homeless outreach providers, public housing providers, and common areas within the City. Needs collected in collaboration with the BKRHC directly impact projects included in the 2026-27 Action Plan and the 2025-2030 Consolidated Plan.

In addition, the City will continue to support the ongoing funding of assessment and outreach activities. In 2026-27 Flood Bakersfield Ministries has been selected to receive $25,000 in ESG funds. Outreach from local and state programs have also been allocated for Homeless Outreach activities.

Supporting the Coordinated Entry and HMIS Systems of the Homeless Collaborative In serving the homeless community, the City supports the Bakersfield Kern Regional Homeless Collaborative (BKRHC) Coordinated Entry and Assessment approach. This approach is a standardized plan for the entire BKRHC which incorporates tools, processes, policies and HUD CoC and ESG requirements to maximize efficient and ethical intervention. Service providers share one point of entry for services, ensuring people who are homeless or who are at risk for homelessness are served and/or housed as quickly and efficiently as possible. This approach increases service provider connectivity, and the ability to properly assess the individual needs of homeless persons.

Data are collected through the HMIS System, and help providers assess the needs of participants more accurately. Participants in the City’s ESG grants participate in the BKRHC HMIS and Coordinated Entry System. The City has also used state funds to help support the BKRHC’s HMIS system.

Addressing the emergency shelter and transitional housing needs of homeless persons Through prioritizations established through collaboration with the Bakersfield Kern Regional Homeless Collaborative, the City will use its Emergency Solutions Grants (ESG), to fund the Open Door Network Shelter, the Mission at Kern County Shelter and the Alliance Against Family Violence and Sexual Assault Shelter. As detailed above, these funds will be used to improve the quality of emergency shelters for the homeless, operating cost of such shelters, provide essential social services, homeless prevention services, and other assistance to the homeless community.

The City of Bakersfield is also a recipient of the State’s Homeless Housing Assistance and Prevention Program (HHAP) and provides local grants for homeless shelters, PSH, outreach, case management, HMIS, CES, and other homeless programs.

Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again.

Using Entitlement Funds
During the Action Plan year, the City will use ESG, HOME, and HOPWA funds to help those experiencing homelessness make the transition to permanent housing and independent living. The City will use its ESG grant to provide funds to three homeless shelter providers. The City will also fund a Rapid Re-housing program (providing homeless persons with funds to pay for rent, and deposits), a Homelessness Prevention Program, and a Homeless Outreach program (providing outreach to smooth the transition from homelessness into independent living) during FY26-27. In addition, the City anticipates using HOME funds to support new construction and rehab of affordable housing projects within the City (See Sections AP-55, AP-90). Through FY 2026-27 HOPWA funding, the City of Bakersfield will also work with Kern County Public Health to address the needs of the homeless persons living with HIV/AIDS.

Supporting the Continuum of Care and Bakersfield-Kern Regional Homeless Collaborative The City of Bakersfield is an active member of the California Continuum of Care (CoC) – 604. The Bakersfield Kern Regional Homeless Collaborative (BKRHC) acts as the CoCs fiscal agent and supports its strategy to prevent homelessness in the County Region.

CoC members use a Coordinated Entry approach, collect data using a centralized Homeless Management Information System (HMIS), and consider the unique needs of homeless sub-groups (such as chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth).

The Coordinated Entry approach is a standardized plan for the CoC that incorporates tools, processes, policies, HUD-CoC and ESG requirements to maximize efficient and ethical intervention. Service providers share one point of entry for services, ensuring people who are experiencing homelessness or who are at risk of experiencing homelessness, are served and/or housed as quickly and efficiently as possible. This approach increases service provider connectivity, and the ability to properly assess the individual needs of the unhoused. Data collected by the CoC is entered into the HMIS (including the resources each participant has attained, the period of time a participant has experienced homelessness, and other important data that helps the service providers assess and deliver the proper services). This data collection approach has been set up with the goals of helping people experiencing homelessness make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for those individuals and families to affordable housing units, and preventing individuals and families who recently experienced homelessness from experiencing homelessness again. Participants in the City’s ESG grants participate in the CoC Coordinated Entry approach, and the HMIS.

Helping Specific Sub-Groups
The CoC maintains a by-name list and participates in prioritizing chronically homeless individuals and families to ensure beds are utilized. In addition, the CoC and Community Action Partnerhip of Kern participates in the Supportive Services for Veteran Families (SSVF) Community Plan responsible for planning and coordinating efforts to prevent and end homelessness among veterans. The SSVF group meets monthly through CoC By-Name List case conferencing and reviews the veterans awarded vouchers by HUD-VASH, the number of open vouchers in the community, and the numbers of veterans served. In addition, the CoC has designated a subcommittee to focus on youth experiencing homelessness to assess, and address the challenges and gaps in homeless youth services. The group works with Bakersfield College, Kern County Superintendent of Schools and the Kern High School District to partner in the work of assisting unaccompanied homeless youth.

Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs.

The CoC has included discharge coordination as a part of the regional Strategic Plan to address homelessness. This plan will be reviewed regularly at the sub-committee level who will oversee the collaboratives efforts around institutional discharge and systems of care. Additionally, the City of Bakersfield’s funded homeless shelter, Brundage Lane Navigations Center, has partnered with local hospitals to develop a respite care facility at the shelter.

Kern Behavioral Health and Recovery Services (KernBHRS) has developed and implemented policies for the discharge of people from publicly funded institutions or systems of care. KernBHRS works in conjunction with health care facilities, foster care or other youth facilities, and corrections programs and institutions to help prevent the discharge of individuals resulting in homelessness.

The Kern County Department of Human Services expedites discharged individuals’ applications for general-aid, Cal Fresh, and other entitlements so that they do not experience gaps in coverage that can contribute to or exacerbate medical, psychiatric, or financial crises and homelessness. In addition, Kern County will connect individuals who are experiencing homelessness or at risk of experiencing homelessness to permanent housing and a case manager prior to discharge. Finally, the County Department of Human Services will work with the California Department of Corrections and the Kern County Jail to facilitate recently released individuals’ transition from incarceration to community living.

AP-70 HOPWA Goals – 91.220 (l)(3)
One year goals for the number of households to be provided housing through the use of HOPWA for:

Short-term rent, mortgage, and utility assistance to prevent homelessness of the individual or family 80
Tenant-based rental assistance 40
Units provided in permanent housing facilities developed, leased, or operated with HOPWA funds 5
Units provided in transitional short-term housing facilities developed, leased, or operated with HOPWA funds 20
Total 165
City of Bakersfield’s HOPWA Program, administered by Kern County Health Department, provides critical emergency assistance to persons living with HIV/AIDS to prevent loss of housing and becoming homeless while addressing social, economic, health and mental health challenges. The program assists eligible clients throughout Kern County with case management services, food, and transportation assistance with the goal of achieving housing stability and access to care. Other partners in service delivery are Housing Authority of the County of Kern and Clinica Sierra Vista. Together these agencies work to minimize the effect that living with HIV/AIDS has on housing stability.

Additionally, the following HOPWA Services will be provided in FY26-27 One year goals for the number of households to be provided services through the use of HOPWA for:

HOPWA Supportive Services 100
HOPWA Housing Information Services 100
Total 200
AP-75 Barriers to affordable housing – 91.220(j)
Introduction
The City of Bakersfield has instituted actions aimed at reducing the impact of the public sector role in housing costs and affordability.

Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment To preserve affordability, the City allows and encourages developers to "piggyback" or file concurrent applications (i.e. rezones, tentative tract maps, conditional use permits, variance requests, etc.) if multiple approvals are required, and if consistent with applicable processing requirements. The City will continue to have staff available to assist low-income housing developers through permits, approvals, plan checks, inspections, etc. in order to make the approval process smoother and faster.

The City provides cost reductions to developers through the Density Bonus Ordinance when low and very-low income housing units are proposed. Further cost reductions occur in the form of increased densities and concessions such as flexibility in site development standards and zoning code requirements, reductions in development fees and dedication requirements, financial aid, and/or accelerated plan check.

Cost reductions occur through the more efficient use of land in the Commercial/Residential land use zone, SRO conversions, reduced parking requirements for the downtown area, Accessory Dwelling Unit (ADU) and the Planned Unit Development (PUD) program. For example, the PUD residential districts of the zoning code allow design flexibility through, but not limited to, small lots, zero lot line, cluster developments, mixed unit types and high-rise apartments.

These housing policies and programs are included in the City’s Housing Element, as required by State law. Further, the City of Bakersfield, in accordance with SB 35, began a procedure for streamlining the approval of affordable housing. This process allows for faster review and approval times for affordable housing projects in an effort to increase the City of Bakersfield’s affordable housing production. The now compliant 2023-2031 Housing Element includes policies and programs to accommodate the City’s fair share of the regional housing needs of extremely low, very low, low, moderate and above moderate-income households. The City of Bakersfield Economic and Community Development Department will ensure that HUD funds help meet goals outlined in the updated Housing Element.

In 2018, the citizens of Bakersfield passed a one percent sales tax measure to fund community enhancements. Since then, millions of dollars have been allocated to assist in the development of affordable housing. With this local leverage, the City aims to provide more financing to local housing developers to secure state or federal funding sources, which in turn will generate more affordable housing units. The budget process for allocating Public Safety & Vital Services (PSVS) funds is done on an annual basis, providing opportunity for the City to leverage general and grant funds for assisting affordable housing development. The City of Bakersfield will continue to seek partnerships to create or preserve affordable housing by providing financial assistance through the City’s entitlement programs.

AP-85 Other Actions – 91.220(k)
Introduction
Through the needs assessment and market analysis, as well as information derived from consultation with service providers and community input from the City’s outreach efforts, the five-year ConPlan establishes the following priority needs:
1 Goal Name Decent and Affordable Housing
Goal
Description
Invest in and preserve the supply of affordable housing for low-and-moderate income households, including homeownership opportunities.
2 Goal Name Prevent and Reduce Homeless
Goal
Description
Prevent and reduce homelessness, including increased support related to mental and behavioral health.
3 Goal Name Economic Development Opportunities
Goal
Description
Foster and improve the quality of life by increasing access to economic development opportunities.
4 Goal Name Community Infrastructure and Facility Improvements Goal
Description
Improve community infrastructure and facilities to promote safe and vibrant communities.
5 Goal Name Services for Special Needs Population
Goal
Description
Increase vital services for special needs populations, including children and youth, seniors, persons with disabilities, and persons living with HIV/AIDS Actions planned to address obstacles to meeting underserved needs The ability of the City to address underserved needs depend on the availability of resources. The City will continue to use CDBG, HOME, ESG and HOPWA funds to support projects that improve and expand the affordable housing stock, expand community and economic development, improve infrastructure and public facilities for nonhomeless special needs and for homeless persons and persons living with HIV/AIDS. This year’s CDBG funding will support several important community projects, including:
x Street repairs in low-to-moderate income neighborhoods x Improved street lighting in an underserved area
x Administration cost for Mercy House Homeless Prevention and Rapid Rehousing x Fair housing services for victims of housing discrimination x Home accessibility improvements for eligible residents x ADA repairs for the Community House
x Ongoing services for senior citizens
These projects aim to enhance safety, accessibility, and support for those in need throughout our community.

Likewise, HOME funds will be used to provide affordable housing options through the support of future new affordable housing projects, home rehab for accessibility improvements and transitional housing. ESG funds will be used to provide shelter, outreach, homeless prevention and rapid re-housing services, and HOPWA will provide services and housing to individuals with HIV/AIDS. Additionally, the City will seek other federal and state funding sources to better meet these underserved needs.

Actions planned to foster and maintain affordable housing Increasing and preserving the supply of affordable housing for low-and-moderate income households is a high priority and goal of the City. In FY 2026-27, the City will implement programs that directly help increase the availability and accessibility of affordable housing units. An additional $235,873.46 in HOME funds will be set aside for future affordable housing projects by a certified Community Housing Development Organization (CHDO), and finally $702,847.32 will be set aside for acquisition of transitional housing. In addition, $128,810.50 of ESG funds will be used to assist households who are recently or are at-risk-of homeless to re-establish permanent housing for the household, and HOPWA funds will be used to help foster and maintain affordable housing for persons with HIV/AIDS by sponsoring the efforts of Kern County Public Health with a sum of $1,113,406.74.

Actions planned to reduce lead-based paint hazards
The ConPlan discussed the City’s strategy for implementing lead-based paint mitigation in qualified residential units. Assessment of hazards can be better accomplished while housing is being inspected or evaluated. On a project-by-project basis, funds will be made available to test for and mitigate lead-based paint hazards occurring in housing units that receive HUD Program funds for rehabilitation.

Actions planned to reduce the number of poverty-level families To address the issue of poverty in FY 2026-27, the City plans to focus on efforts in the areas of affordable housing, homeless outreach, supportive services, infrastructure, rapid rehousing and homeless prevention. Implementation of Section 3 will encourage contractors and material suppliers working on HUD funded projects to seek low-income new hires to work on those projects. Additionally, staff will encourage economic development in our Economic Opportunity Zones, and seek developers to complete projects on City-owned property where a percentage of jobs produced will be earmarked for low-income citizens.

Actions planned to develop institutional structure
The City of Bakersfield continues to assess institutional structure to effectively implement the City’s entitlement programs and meet the goals of the Consolidated Plan. The City will continue to cross-train staff and take advantage of training and educational opportunities to improve capacity in administering HUD-funded programs. Additionally, the City will continue to explore opportunities to partner with other City departments and external organizations to fund vital community investments to improve the quality of life for our underserved residents.

City of Bakersfield staff will continue to pursue training opportunities and technical assistance where available. Where all staff cannot attend pertinent training opportunities, staff members who receive technical assistance will cross-train as appropriate. Staff members attended multiple HUD sponsored trainings in 2025, to improve their capacity and knowledge, while also taking advantage of current and past webinars to continue to improve their understanding of the CDBG, HOME, ESG, and HOPWA programs. Likewise, the City maintains a division "Desk Guide" which is updated regularly with departmental policies and procedures for HUD-funded programs. In addition to this Desk Guide, staff members are currently working on other internal materials to provide cross training and procedural protocols for co-workers for HOPWA, Home Access, and Davis-Bacon activities.

Actions planned to enhance coordination between public and private housing and social service agencies
The City will continue to collaborate with public and private housing and social service agencies to meet the goals and objectives of the Consolidated Plan. The City regularly collaborates with regional agencies and organization on housing, homeless, economic development and community development initiatives. Many of these initiatives include programs in which we apply for community projects collaboratively. Currently, the City is a participating member of the Bakersfield Kern Regional Homeless Collaborative.

Staff members are assigned to attend monthly board meetings to stay abreast of developing needs in the homeless and affordable housing communities and to be ready to render or ask for assistance when funding for special programs becomes available. Additionally, when requested, staff will meet with social service agencies as well as public and private housing entities to discuss HUD program funding guidelines, available resources, and program opportunities to serve our underserved residents.

Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.

1. The total amount of program income received before the start of the next program year and has not yet been reprogrammed. 0

2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. 0

3. The amount of surplus funds from urban renewal settlements 0

4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 0

5. The amount of income from float-funded activities 0
Total Program Income: 0
Other CDBG Requirements

1. The amount of urgent need activities 0

2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan. 80.00%
Emergency Solutions Grant (ESG)
Reference 91.220(l)(4)

1. Include written standards for providing ESG assistance (may include as attachment) Attachment, Grantee Unique Appendices, includes the Written Standards for Providing ESG Assistance.

In addition, selection of ESG recipients are outlined in the Funding Handbook and Notice of Funding Availability made available each October to potential applicants.

2. If the Continuum of Care has established centralized or coordinated assessment system that meets HUD requirements, describe that centralized or coordinated assessment system.

Bakersfield Kern Regional Homeless Collaborative’s Coordinated Entry System (CES) is administered by Community Action Partnership of Kern (CAPK). The CES is a system that assesses and prioritizes eligible individuals and families for housing and supportive services, with emphasis on placing them in housing as quickly as possible based on vulnerability and length of time experiencing homelessness. Assessment occurs in two phases:
1) Phase I: Access Points. This phase involves completion of the Quick Referral Tool (QRT) to screen applicants and quickly connect them to an Assessment Point. Access points include numerous public and private agencies and organizations throughout the county that have been trained by CAPK in the use of the QRT.
2) Phase II: Assessment Points. Phase II is conducted by designated Assessment Points that utilize the Vulnerability Index - Service Prioritization Decision Assistance Tool (VI-SPDAT) Version 2.0 to calculate vulnerability scores. The appropriate VI-SPDAT is used for the specific population being assessed, i.e. Family-VI-SPDAT for families, Youth-VI-SPDAT for youth, PR-VI-SPDAT for persons at-risk.

Once an individual has been scored, the information is entered into the Homeless Management Information System (HMIS) for
automatic prioritization and referral.

Designated assessment points for the homeless population within the CoC include:

CAPK/2-1-1 Program, The Open Door Network, Flood Bakersfield Ministries, and The Mission at Kern County. Assessment Points for at-risk persons include: CAPK, and the Housing Authority of the County of Kern. Assessment Points must confirm receipt of the QRT within two business days.

3. Identify the process for making sub-awards and describe how the ESG allocation available to private nonprofit organizations (including community and faith-based organizations).

The City of Bakersfield conducts an open Request for Proposal process. Eligibility requirements are described in the City of Bakersfield’s Funding Handbook which can be found in the Grantee Unique Appendices. In order to best determine the allocation of ESG funding, the City of Bakersfield assessed both the community needs expressed by the CoC, the City’s current ConPlan priorities, and the amount of ESG funding available to the City. As part of the development of the FY2025-26 Action Plan, surveys were distributed individually to the members of the CoC in the winter of 2024 to obtain input regarding the most effective use of ESG funds. Survey results indicated that responding CoC agencies felt Emergency Shelter and Homeless Prevention were the top needs under the Homeless Service category.

4. If the jurisdiction is unable to meet the homeless participation requirement in 24 CFR 576.405(a), the jurisdiction must specify its plan for reaching out to and consulting with homeless or formerly homeless individuals in considering policies and funding decisions regarding facilities and services funded under ESG.

To ensure proper representation in decision-making, the BKRHC Governing Board includes at least one representative with lived experience, one Veterans Affairs/Homeless Veterans Service Provider Representative; and one McKinney-Vento Liaison/Local Education Agency Representative/or Educational Services to Homeless Children & Youth Representative. The City will work with the BKRHC and partnering homeless service providers to ensure that information on ESG activities is distributed to homeless and formerly homeless individuals in order to provide the opportunity for involvement in decision/policy making. More specifically, the City works with the collaborative to distribute Notice of Funding Availability of City HUD funds, Action Plan and CAPER notices, community input surveys, and public outreach flyers including postings at homeless shelters and public/private housing providers. Additionally, the City of Bakersfield received several responses for the Consolidated Plan survey from local homeless shelters regarding homeless service priorities and needs.

5. Describe performance standards for evaluating ESG.

In determining programmatic performance indicators for ESG activities staff examined the recent performance of similar ESG-eligible activities. Specifically, staff examined the performance of previous years’ Shelter activities and made a determination regarding the approximate number of individuals that could reasonably be served by the program. The approximate amount of people expected to be served through ESG Shelter programs is 600. Likewise, staff examined the Rapid Re-Housing, Homeless Prevention and Outreach components of the ESG program, and projected that 10 households could be reasonably served through Rapid Rehousing, 10 households could be assisted through Homeless Prevention, and 60 persons could be served through Street Outreach using ESG funds. Funds were then allocated accordingly. City staff works regularly with the CoC Planning and Performance Committee to review outcomes and provide guidance and if needed refine performance standards. The City of Bakersfield is currently working with the committee to align performance measurements more closely with those of the CoC.

HOME Investment Partnership Program (HOME)
Reference 24 CFR 91.220(l)(2)

1. A description of other forms of investment being used beyond those identified in Section 92.205 is as follows:

HOME Investment Partnership Program (HOME) funds are not used by the City of Bakersfield beyond the forms of investment identified in Section 92.205.

2. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows:

The Hope to HOME program is a city-wide homebuyer program managed by a subrecipient- My Way Home formerly Ventura County Community Development Corporation (VCCDC), including the review and selection of qualified applicants, drafting, signing, and recording all documents. My Way Home provides deferred interest loans up to $40,000 for qualified homebuyers. To meet the affordability requirements the City intends to use the recapture provision consistent with 24 CFR

92.254(a)(5)(ii)(1), recapturing the entire HOME investment should the property be sold within the 10-year period of affordability. Loans through this project will be subject to 2% interest annually, due and payable in 30 years. The period of affordability requirements will be set consistent with the minimum requirements of 24 CFR 92.254(a)(4).

Pursuant to 24 CFR 92.254(a)(5)(ii), the City requires that HOME funds be recaptured if the property does not continue to be the principal residence of the buyer for the duration of the Affordability Period secured by an Affordable Housing Covenant.

The Recapture Provision shall apply to a HOME assisted property only when a Direct HOME Subsidy is provided to a homebuyer.

The Recapture provision will ensure that the City of Bakersfield recoups all or a portion of the HOME assistance to the homebuyers, if the housing does not continue to be the principal residence of the family for the duration of the affordability period.

Per, 24 CFR 92.254(a)(5)(ii)(A), In establishing recapture requirements, the City of Bakersfield is subject to the limitation that when the recapture requirement is triggered by a sale (voluntarily or involuntarily) of the housing unit, and there are no net proceeds or the net proceeds are insufficient to repay the HOME investment due, the City of Bakersfield will only recapture the net proceeds, if any. The net proceeds are the sales price minus superior loan repayment (other than HOME funds) and any closing costs.

3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds? See 24 CFR 92.254(a)(4) are as follows:

All HOME assisted activities are enforced by a deed of trust, promissory note, loan agreement, and affordability/primary residency covenant for the property. The period of affordability will be determined by the amount of HOME subsidy (and other potential funding sources) and shall be between 5 and 30 years. The City of Bakersfield permits the sale of HOME-assisted units to qualified households at the time of review and approval. In the event a HOME assisted unit is subsequently sold to another buyer, which is under the requirements of the recapture provision, those funds will be recaptured in accordance with 24 CFR 92.254(a)(5)(ii)(A)(1). These requirements will be enforced through a property covenant, which will be carried on the property through the period of affordability. The City of Bakersfield will also utilize a deed of trust, promissory note, and regulatory agreement to enforce these requirements. All HOME-assisted projects are monitored annually to determine compliance with affordability requirements.

4. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows:

The City does not anticipate using HOME funds to refinance existing debt secured by multifamily housing. The City monitors each HOME assisted project annually for compliance.

5. If applicable to a planned HOME TBRA activity, a description of the preference for persons with special needs or disabilities. (See 24 CFR 92.209(c)(2)(i) and CFR

91.220(l)(2)(vii)).

N/A.

6. If applicable to a planned HOME TBRA activity, a description of how the preference for a specific category of individuals with disabilities (e.g. persons with HIV/AIDS or chronic mental illness) will narrow the gap in benefits and the preference is needed to narrow the gap in benefits and services received by such persons. (See 24 CFR

92.209(c)(2)(ii) and 91.220(l)(2)(vii)).

N/A

7. If applicable, a description of any preference or limitation for rental housing projects. (See 24 CFR 92.253(d)(3) and CFR 91.220(l)(2)(vii)). Note: Preferences cannot be administered in a manner that limits the opportunities of persons on any basis prohibited by the laws listed under 24 CFR 5.105(a).

N/A
Housing Opportunities for People with HIV/AIDS (HOPWA)
The HOPWA program provides critical emergency assistance to persons living with HIV/AIDS prevent loss of housing and becoming homeless while addressing social, economic, health and mental health challenges. The program assists eligible clients throughout Kern County with case management services, food, and transportation assistance with the goal of achieving housing stability and access to care.

Agencies and personnel delivering HOPWA services to the citizens of Bakersfield and Kern County are:
x City of Bakersfield Community Development Department – HOPWA Contact:

Priscilla Martinez, Economic and Community Development Supervisor x Sponsor Agency - Kern County Health Department - HOPWA Contact: Patrick Salazar, Public Health Program Manager
x Sub-recipient – Clinica Sierra Vista – HOPWA Contact: Margarita Rossen, Program Director
x Housing Authority of the County of Kern – HOPWA Contact: Latrice Posey, Housing Administrator
One-year goals for the number of households to be provided housing through the use of HOPWA activities are as follows:
x Short-Term Rent, Mortgage, and Utility assistance payments (STRMU) to prevent homelessness of the individual or family - provide housing for 80 clients x Tenant-Based Rental Assistance (TBRA) - assist 40 households x Short Term Housing Facilities – assist 20 households
x Facility Based Permanent Supportive Housing – assist 5 persons x Supportive Services – provide supportive services for 100 clients x Housing Information Services – provide housing information services for 100 individuals
Kern County is the foremost provider of services to persons with HIV/AIDS in the Kern County area, partnering with various agencies and nonprofit/faith-based organizations.

City of Bakersfield Fiscal Year 2026-27 Draft Action Plan Project List Project Title Funding Source,
Amount
Bakersfield Senior Center Public Services CDBG - $90,000 Fair Housing Program Services CDBG - $100,000
Curbs, Gutters, and Sidewalks in the Alta Vista Area CDBG - $600,000 Curb, Gutter, Sidewalk and Rebuilding in the Oakdale Drive Area CDBG - $600,000 Curbs, Gutters, Sidewalks, and Rebuilding in the San Dimas Area CDBG - $600,000 Solar Powered Street Lights on S. King Street and E. Potomac Avenue CDBG - $282,107.75 Solar Powered Street Lights on P Street CDBG - $478,461 Home Accessibility Improvement Program CDBG - $262,838.25 R Street Community House ADA Improvements CDBG - $60,000 Mercy House Homeless Prevention/Rapid Rehousing Program (Admin) CDBG – $170,430 General Management and Oversight CDBG - $810,959
Victory Family Services Acquisition of Transitional Housing HOME- $702,847.32 Mercy House Homeless Prevention/Rapid Rehousing Program HOME - $476,520 CHDO Set Aside HOME - $235,873.49
HOME Administration/Planning Costs HOME - $157,248
Flood Ministries – Street Outreach ESG – $25,000
The Open Door Network – Shelter ESG – $70,000
The Open Door Network – Rapid Rehousing ESG - $64,351
The Open Door Network – Homeless Prevention ESG - $64,460 The Open Door Network AAFW – Shelter ESG - $25,000
The Mission at Kern County – Shelter ESG - $70,000
Kern County Public Health HOPWA Services HOPWA - $1,147,482 HOPWA City Administration HOPWA - $34,435.26
Total $7,119,786

ADMINISTRATIVE REPORT
MEETING DATE: April 22, 2026 AGENDA CATEGORY: Hearings
TO: Honorable Mayor and City Council
FROM: Kristina Budak, Water Director
DATE: April 7, 2026
SUBJECT: Public Hearing to Consider Adoption of Sewer User Rates for Fiscal Years 2026-27 through 2030-31.

RECOMMENDATION:

Staff recommends opening the public hearing, taking public testimony and continuing the public hearing to May 13, 2026.

BACKGROUND:

The Water Department – Wastewater Division provides services for the collection and treatment of the City’s wastewater. The Sewer Enterprise is self-sustaining, supported primarily by sewer user fees that provide for the daily operations of the sewer and stormwater collection systems and the two wastewater treatment plants. The fixed sewer service charge, often referred to as the flat rate, is collected on the property tax bill for all residential, commercial, and industrial customers. Commercial and industrial customers, in addition to the flat rate, are also subject to sewer surcharge fees based on their wastewater strength classification, and water consumption.

In 2025 the Water Department (Water) partnered with HF&H Consultants (HF&H) to conduct a revenue rate study to assess the revenue requirements needed to cover costs of operating and maintaining the existing systems and infrastructure. Water prepared 15-year infrastructure and financial plans, identifying capital improvement projects, operation and maintenance, and staffing requirements needed to maintain a proper level of service in the coming years. Using the 15-year plans, HF&H completed a full cost-ofservice-analysis (COSA) and provided recommendations for rates beginning FY 2026-27.

Results of the COSA were presented to City Council on October 22, 2025. Since then, City staff received direction regarding acceptable rate options, received feedback from community stakeholders, and engaged in multiple public outreach events.

In 2026, HF&H conducted a new COSA taking into consideration the feedback provided. With the results of the 2026 COSA, Water staff finalized the 2026-2030 Sewer Rates and Fees Report recommending a fiveyear rate increase from FY 2026-27 through FY 2030-31 as shown below:

Fiscal Year Proposed Rate
2026-27 $475
2027-28 $575
2028-29 $675
2029-30 $775
2030-31 $875
Annual sewer fees are viewed as property-related fees for utility service and are subject to Proposition 218. This requires that fees adopted by City for services rendered do not exceed the reasonable estimated cost for providing the services. Staff has determined that the proposed rates do not exceed the cost of services. Proposition 218 also requires a public hearing in which the public may support or protest the rate increase.

Proposition 218 Notices for the proposed increased rates were mailed to all affected property owners informing them of proposed changes to sewer user rates for FY 2026-27 through FY 2030-31. Notices were mailed out to residents on March 6, 2026 and March 20, 2026.

Tonight' s Council action will continue the hearing to May 13, 2026.

FISCAL IMPACT:

There is no impact to the General Fund with tonight’s Council action.

COUNCIL GOAL:

Reliable Infrastructure
ATTACHMENTS:

1. Exhibit A – Rate Schedule for FY 26.27 – 30.31

2. 2026-2030 Sewer Rates and Fees Report
Strength Classification FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 Single Family Residence $475.00 $575.00 $675.00 $775.00 $875.00 Multiple Dwelling $356.25 $431.25 $506.25 $581.25 $656.25 Commercial Low Strength $475.00 $575.00 $675.00 $775.00 $875.00 Commercial Medium Strength $475.00 $575.00 $675.00 $775.00 $875.00 Commercial Medium-High Strength $475.00 $575.00 $675.00 $775.00 $875.00 Commercial High Strength $475.00 $575.00 $675.00 $775.00 $875.00 Strength Classification FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 Commercial Low Strength $3.26 $3.95 $4.64 $5.33 $6.02
Commercial Medium Strength $3.80 $4.60 $5.40 $6.20 $7.00 Commercial Medium-High Strength $5.06 $6.13 $7.20 $8.27 $9.34 Commercial High Strength $6.19 $7.49 $8.79 $10.09 $11.39 Parameter FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31
Flow / Million Gallons $3,862.30 $4,675.42 $5,488.54 $6,301.66 $7,114.78 Biochemical Oxygen Demand (BOD)
/ 1,000 pounds $351.64 $425.67 $499.70 $573.73 $647.76
Total Suspended Solids (TSS) / 1,000
pounds $219.41 $265.60 $311.79 $357.98 $404.17

SEWER USER FEES AND CHARGES

RATE SCHEDULE
Note: Sewer fees for commercial users consist of 1) a flat rate component, collected on the property tax bill by the Kern County Tax Assessor, and 2) sewer surcharge, which recovers costs that exceed the amount of water consumption allowed for in the flat rate. The minimum sewer charge for all properties is equal to the single family residence rate.

FISCAL YEARS 2026-2027 THROUGH 2030-2031
Flat Rate - Collected on Property Tax Bill
Sewer Surcharge per Hundred Cubic Foot of Water Consumed Permitted Industrial User Sewer Fee
EXHIBIT A - PAGE 1

1. $900.00

2. $1,800.00 / Annual

3. $964.00 / As needed

4. Actual costs

5. $800.00

6. See below

1. $80.00

2. $175.00

3. $125.00

4. $10.00

5. $69.00

6. $0.078 / gallon
Industrial waste monitoring - Permit application fee

WASTEWATER SEWER FEES

MISCELLANEOUS SEWER FEES
FISCAL YEAR 2026-2027
Pretreatment Section Fees
Disposal rate
Septic / Grease Discharges
Permit application fee
Septage discharge permit fee - initial
Septage discharge permit fee - annual
Card replacement fee
Notice of Violation (NOV) basic fee
Users may be charged cost recovery fees when discharges are monitored for compliance to regulatory requirements. Costs may include, but are not limited to outside commercial laboratory fees, city staff hourly rates and fringe benefit costs, equipment costs, reimbursement for damages, administrative costs, overhead costs and other costs incurred by the City.

Industrial waste monitoring - Permit fee
Industrial waste monitoring - Noncompliance re-inspections Outside laboratory testing fees
Notice of violation (NOV) basic fee
Cost Recovery
EXHIBIT A - PAGE 2

WATER DEPARTMENT
Wastewater Division
2026-2030 SEWER RATES & FEES REPORT

INCLUDING
2026 RECOMMENDED SEWER RATE COST OF SERVICE ANALYSIS
2026-2035 SEWER CONNECTION REVENUE ANALYSIS

CITY OF BAKERSFIELD
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LIMITATIONS
This 2026-2030 SEWER RATES & FEES REPORT was prepared solely for the City of Bakersfield as a standalone report and is not intended for use by any other party or any other person. City staff prepared Chapters 1 through 4 which provide the Executive Summary, Background, Expenses, also known as Revenue Requirement, and the proposed Revenue generated. This data was used as the basis for the 2026 RECOMMENDED SEWER RATE COST OF SERVICE ANALYSIS, which HF&H Consultants developed on behalf of City and is included in this report as Exhibit A.

In April 2025, the 2025 Supplemental Report to the 2021-22 SEWER RATES AND CONNECTION FEES STUDY was prepared by City staff. Both the 2025 Supplemental Report and the original 2021-22 Sewer Rates and Connection Fees Study are available upon formal request.

In October 2025, the 2026 Sewer Rates & Fees Report was prepared by City staff, with support from HF&H Consultants. This report is a standalone report that includes a full evaluation of the Sewer Connection fee and 2026 Cost of Service Analysis [COSA], which calculates the true costs to provide service without considering bond options and defines what rates are to be paid by the various users. The 2026 Sewer Rates & Fees Report is available upon formal request.

When preparing this 2026-2030 SEWER RATES & FEES REPORT, City staff relied on information and support from hired consultants HF&H Consultants and AECOM and management, engineering, and fiscal administrative staff from the City of Bakersfield’s Water Department, Public Works Department, and Finance Department, which is considered to be reliable.

Rounding differences caused by stored values in electronic models may exist.

This document represents our understanding of relevant laws, regulations, and court decisions but should not be relied upon as legal advice. Questions concerning the interpretation of legal authorities referenced in this document should be referred to a qualified attorney.

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City of Bakersfield – Water Department 2026-2030 Sewer Rates & Fees Report Page i

TABLE OF CONTENTS

1. EXECUTIVE SUMMARY................................................................................. 1

1.1 Study Objectives ...........................................................................................1

1.2 Findings and Recommendations .....................................................................2

2. BACKGROUND.............................................................................................. 4

2.1 Revenue Sources...........................................................................................4

2.2 Sewer Revenue Increase History ....................................................................5

2.3 2025 Supplemental Report.............................................................................7

2.4 2025 Proposition 218 Process ........................................................................7

2.5 2026 Sewer Rates & Fees Report ...................................................................9

2.6 Public Outreach Effort....................................................................................9

2.6.1 Educational Community Meetings .................................................................9

2.6.2 Rate Development Community Meetings .....................................................10

2.6.3 Tours and Presentations ............................................................................11

2.6.4 User Agency Outreach ...............................................................................11

2.6.5 Social Media Outreach ...............................................................................14

2.7 2026 Proposition 218 Process ......................................................................14

2.7.1 2026 Proposition 218 Approval...................................................................14

2.7.2 2026 Proposition 218 Schedule...................................................................15

2.8 AECOM Wastewater System Evaluation.........................................................15

2.8.1 Major Infrastructure Technical Memo..........................................................16

3. REVENUE REQUIREMENT ........................................................................... 17

3.1 Summary of Expenses .................................................................................17

3.2 Wastewater Operations & Maintenance Expenses..........................................18

3.3 Existing Debt Service...................................................................................19

3.4 Capital Improvements .................................................................................19

3.5 Wastewater Fund Reserve Target.................................................................22

4. CURRENT REVENUE PROJECTIONS............................................................ 25

4.1 Sewer Service Charge Rate and Revenue [Effective July 1, 2026]...................25

4.2 Sewer Connection Fees and Revenue [Effective October 1, 2025] ..................27

4.3 Miscellaneous Fees and Revenue..................................................................29

4.4 Total Projected Annual Revenue [without recommended rate increase]..........30

4.5 Sewer Enterprise Fund Balance [without recommended rate increase] ...........31

5. RECOMMENDED RATE AND BOND.............................................................. 32

5.1 Sewer Service Charge Recommended Rate and Revenue...............................32

5.2 Enterprise Revenue .....................................................................................33

5.3 2031 Bond Revenue and Debt Service ..........................................................34

5.4 Total Projected Annual Revenue [with recommended rate increase]...............34

6. SEWER ENTERPRISE................................................................................... 36 City of Bakersfield – Water Department 2026-2030 Sewer Rates & Fees Report Page ii

TABLE OF EXHIBITS
Exhibit A. 2026 Recommended Sewer Rate Cost of Service Analysis Exhibit B. 2026-2035 Sewer Connection Revenue Analysis
Exhibit C. 10-year Wastewater Financial Plan
Exhibit D. Council – Sewer Enterprise
Exhibit E. Understanding the City’s Sewer System
Exhibit F. Rate Development and Scenarios
Exhibit G. Council – Sewer Recommendations
Exhibit H. Proposition 218 Notice
Exhibit I. AECOM Major Infrastructure Technical Memo
Exhibit J. Personnel Memo
Exhibit K. Capital Improvement Program Memo
City of Bakersfield – Water Department 2026-2030 Sewer Rates & Fees Report Page iii

TABLE OF FIGURES
Figure 3-1. Rate Modeling Assumptions.................................................................................................... 17 Figure 3-2. Total Projected Revenue Requirements.................................................................................. 17 Figure 3-3. Total Projected Revenue Requirements.................................................................................. 18 Figure 3-4. Additional Personnel................................................................................................................ 18 Figure 3-5. Projected Operations and Maintenance Expenses.................................................................. 19 Figure 3-6. Current Debt Service................................................................................................................ 19 Figure 3-7. WWTP 3 Capacity Evaluation................................................................................................... 20 Figure 3-8a. CIP Summary – Minor Infrastructure – Sewer and Storm ..................................................... 21 Figure 3-8b. CIP Summary – Minor Infrastructure – WWTPs.................................................................... 21 Figure 3-8c. CIP Summary - Major Infrastructure - WWTPs ...................................................................... 22 Figure 3-9. CIP Summary by Cost Category................................................................................................ 22 Figure 3-10. Annual Reserves - Minimum and Target [All Components] .................................................. 24 Figure 4-1. Projected Current Sewer User Revenue .................................................................................. 25 Figure 4-2. Projected Commercial and Industrial User Surcharge Revenue.............................................. 25 Figure 4-3. Current Sewer User and Surcharge Rates................................................................................ 26 Figure 4-4. Projected Agreement Revenue................................................................................................ 26 Figure 4-5. Projected Sewer Service Charge Revenue ............................................................................... 27 Figure 4-6. Residential and Commercial Connection Fee .......................................................................... 27 Figure 4-7. Industrial User Connection Fee................................................................................................ 28 Figure 4-8. Historical and Current Sewer Connection Fee.......................................................................... 29 Figure 4-9. Projected Sewer Connection Revenue ..................................................................................... 29 Figure 4-10. Non-Operating Commercial and Industrial User Fees........................................................... 30 Figure 4-11. Non-Operating Septage and Grease Fees.............................................................................. 30 Figure 4-12. Non-Operating Pretreatment Fees........................................................................................ 30 Figure 4-13. Non-Operating Revenue ........................................................................................................ 30 Figure 4-14. Total Wastewater Revenue [without increase]..................................................................... 31 Figure 4-15. Annual Fund Balance [without Increase]............................................................................... 31 Figure 5-1. Recommended Rate Service Charge Revenue......................................................................... 32 Figure 5-2. User Agencies Proportional WWTP 2 Costs............................................................................. 33 Figure 5-3. User Agencies Revenue............................................................................................................ 33 Figure 5-4. Enterprise Interest Earnings Revenue ..................................................................................... 34 Figure 5-5. Debt Service............................................................................................................................. 34 Figure 5-6. Total Wastewater Revenue [with increase]............................................................................. 35 Figure 6-1. Sewer Enterprise Fund Balance ............................................................................................... 36 City of Bakersfield – Water Department 2026-2030 Sewer Rates & Fees Report Page iv

ACRONYMS
ADA Average Daily Attendance, how schools are currently billed for sewer service BOD Biochemical Oxygen Demand
CCI Construction Cost Index
CCF or HCF Hundred cubic feet of metered water sold; 748 gallons CIP Capital Improvement Program
CMO City Management
COSA Cost-of-Service Analysis
CPI Consumer Price Index
CSA-71 Community Service Area 71
EDU Equivalent Dwelling Unit
ENCSD East Niles Community Service District
ENR Engineering News Record
Finance City Finance Department
FY Fiscal Year
GPD Gallons per Day
IU Industrial User
KC-HBA Kern County Home Builders Association
KSA Kern Sanitation Agency
LB or LBS Pound or Pounds
MG Million Gallons
O&M Operations and Maintenance
PAYGo Pay-As-You-Go, in reference to funding capital improvements from cash rather than from borrowed sources of revenue
Prop 218 California Proposition 218
PW Public Works Department
RFQ Request for Qualifications
RV Recreational Vehicle, as in the City’s commercial user group - RV Parks SFDE Single-Family Dwelling Equivalent
TSS Total Suspended Solids
Water City Water Department
WWTP Wastewater Treatment Plant
City of Bakersfield – Water Department 2026-2030 Sewer Rates & Fees Report

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1. EXECUTIVE SUMMARY
This 2026-2030 SEWER RATES & FEES REPORT, herein after referred to as 2026-2030 Report, was prepared by City of Bakersfield Water Department [Water]. The 2026-2030 Report is an update to the 2026 Sewer Rates and Fees Report prepared and finalized in October 2025.

The 2026-2030 Report is a standalone report which includes 2026 RECOMMENDED SEWER RATE COST OF SERVICE ANALYSIS prepared by HF&H Consultants [HF&H], that reflects the City of Bakersfield recommended 2026 sewer user rate, and the 2026-2035 SEWER CONNECTION REVENUE ANALYSIS prepared by Water staff. Both memorandums are attached as Exhibit A and Exhibit B, respectively.

The purpose of the 2026-2030 Report is to:
• Evaluate the recommended rates utilizing an appropriate wastewater rate model, financial plan, and cost-of-service analysis [COSA] to determine revenue requirements and revenue generation to ensure the financial sustainability of the Sewer Enterprise • Determine revenue requirement for wastewater collections, storm water collections and treatment, including operations, maintenance, personnel, and capital improvement • Determine the reserve target needed to ensure revenue is available to cover annual operations, maintenance, and capital improvement expenses • Utilize non-operating revenue based on FY 2024-25 adopted fees • Include the 2026-2035 SEWER CONNECTION REVENUE ANALYSIS that determined the sewer connection revenue based on FY 2025-26 adopted fees and implemented policies • Include the 2026 RECOMMENDED SEWER RATE COST OF SERVICE ANALYSIS that identifies the annual cost to provide the service to the various customer classes The Executive Summary presents the findings and recommendations in this report.

1.1 Study Objectives
The City’s key objectives are:

Provide revenue sufficiency, adequate reserves, and financial stability - Ensure revenue from future sewer rates and fees is able to cover costs, establish adequate reserves and maintain necessary debt service coverage requirements. Revenue requirement projections are increasing with expanded capital program expenses to upgrade infrastructure.

Evaluate and incorporate system needs and improvements – Evaluate the wastewater and storm drain systems, identifying deficiencies and required improvements to ensure the systems can meet current demands and future growth.

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Determine the cost of service for all customer classes - Revisit the allocation of the City’s Sewer Enterprise costs to verify each customer class pays their proportionate share of expenses. Each customer within each customer class must pay their proportionate share of expenses for the City’s collection and treatment services.

1.2 Findings and Recommendations
In preparing this 2026-2030 Report, the following findings and recommendations were made.

Wastewater Rate Model Period
The rate model period is a 5-year evaluation from Fiscal Year [FY] 2026-2027 through FY 2030- 2031, herein after defined as 2026-2030, which is the timeframe allowed for a Proposition 218 rate increase. During this period, Water staff will track revenue collection and advance the major infrastructure project costs and they do anticipate that additional rate increases will be needed beyond the five years. City Management and Water staff acknowledge that this will require another evaluation and Proposition 218 prior to any increases for the next 5-year period, FY 2031- 2032 through FY 2035-2036.

Wastewater Financial Plan Period
The financial plan period is 10 years, from FY 2026-27 through FY 2035-36, herein after defined as 2026-2035, which is the time frame needed to complete significant infrastructure improvements for the wastewater and storm drain systems to meet current demands and future growth, including the expansion of Wastewater Treatment Plant [WWTP] 3 and an upgrade of WWTP 2. In addition, with the support of AECOM, their evaluation of the existing systems identified the need for a new plant due to the aged technology at WWTP 2 and ensuring permit compliance for current and future growth. Funds for the new facility to replace WWTP 2 are included in the 10-year plan to begin environmental, engineering, and permitting work, however, construction will occur outside of this plan period between 2036-2041. The 10-year Financial Plan is attached as Exhibit C.

Cost of Service Analysis Period
The 2026-2030 RECOMMENDED SEWER RATE COST OF SERVICE ANALYSIS focuses on identifying and evaluating the costs that the various customer classes should pay for the services to collect and treat their wastewater and storm water during FY 2026-2027. The recommended rates are incorporated into the 5-year [2026-2030] rate model, which generates revenue required to fund the 10-year [2026-2035] financial plan.

Revenue Requirements
The annual revenue requirement, for the 10-year [2026-2035] period is determined to be as low as $80.5 million and as high as $278.6 million, as shown in the financial plan. The revenue requirement includes all costs to operate, maintain, repair, and improve the sewer collections system, storm drain system and wastewater treatment plants.

Non-Operating Fee Rate and Revenue
Effective July 1, 2024, the non-operating fees were increased. The revenue generated from these fees is separate from rate revenue generated by sewer service charges and connection fees. Non- City of Bakersfield – Water Department 2026-2030 Sewer Rates & Fees Report

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operating fees include industrial discharge permit fees, septage hauler disposal fees, pretreatment inspection fees, rents and royalties. Currently, Water staff has determined that the current fees are in line with actual costs. The non-operating fees will be reevaluated annually to ensure that the staff and equipment costs, required to provide these services, are covered in full by the customer.

Sewer Service Charge Rate and Revenue
On July 1, 2025, the fixed annual Sewer Service Charge was increased by the Consumer Price Index [CPI] to $247.13 for FY 2025-26. It has been one of the lowest fixed annual service charges in the State of California since 2006. This service charge has only been minimally increased over the past 20 years and does not generate sufficient revenue to ensure the wastewater and storm drain systems are properly operated, maintained and improved for the residents of Bakersfield.

Cost of Service Analysis Rate and Revenue
The 2026 RECOMMENDED SEWER RATE COST OF SERVICE ANALYSIS provides for the rebalancing of revenues between customer classes (i.e., single-family residents, multi-family residents, commercial office buildings, restaurants, bakeries, industrial accounts, etc.) to realign rates and reflects a scenario where the City saves for future capital infrastructure projects in advance to be able to “cash fund” future work. A COSA determines how much each class should pay based on its respective share of flow and wastewater strength (i.e., biochemical oxygen demand and total suspended solids, the standard measures of wastewater strength). Based on this analysis, which was performed by HF&H, the Sewer User rate is recommended to increase to $475.00 for FY 2026-27 Sewer Service Charge. The rate will then increase by $100 annually for the next 4 years to a maximum rate of $875.00 in FY 2030-31. The analysis also recommended increases to the City’s Commercial Surcharge rates and Industrial User rates.

This standalone analysis is included in 2026-2030 Report as Exhibit A.

Residential Connection Fee Rate and Revenue
Effective October 1, 2025, the residential connection fee was increased to $7,248 by escalating the FY 2024-25 rate of $6,947 by the Engineering News Record Construction Cost Index [ENR-CCI] rate of 4.33%.

Based on a request from the Kern County Home Builders Association [KC-HBA], it is anticipated that the connection fee will be increased annually by the ENR-CCI, which is assumed to be 3.5% for this analysis. Water staff prepared a 2026-2035 SEWER CONNECTION REVENUE ANALYSIS to determine connection fee revenue generated during the 10-year period by:
• Utilizing the current and escalated fee rate structure • Evaluating the impacts of active tentative tracts, also known as vested tracts • Considering growth rates based on guidance from the City’s Development Services Department
This standalone analysis is included in 2026-2030 Report as Exhibit B.

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2. BACKGROUND
In early 2024, there was a restructuring of the Water Resources Department to integrate the Wastewater Division, previously part of the Public Works Department, with the Water Resources Department. This resulted in the formation of the Water Department [Water], whose main purpose is to holistically manage the City of Bakersfield’s water portfolio. Despite the merger, City continues to account for water and wastewater program costs separately. Wastewater programs are funded via the Sewer Enterprise Fund.

2.1 Revenue Sources
The City’s current rate structure collectsrevenues in multiple waysfor the Sewer Enterprise Fund, including:
• Annually, via the Kern County tax roll
• Monthly, based on billings and non-operating fees
• Sporadically, when developers pull building permits
Residential customer rates are designed to generate revenue through collection of fixed sewer service charges solely via the tax roll.

Commercial customer rates are designed to generate sufficient revenues through the collection of fixed service charges via tax roll plus sewer surcharge for those commercial customers who discharge more than their allotted discharge volume. Surcharge revenues are collected monthly from commercial accounts whose water use exceeds the annual amount allowed under the fixed service charge per parcel. Excessive water use anticipates additional demands on the wastewater system to convey and treat excess flows that will occur.

Industrial user rates are designed to generate sufficient revenue through the collection of fixed service charges via tax roll plus sewer surcharge. The sewer surcharge for industrial users is calculated based on metered flow, BOD, and TSS and is billed monthly.

Wastewater systems provide wastewater collection and treatment services to commercial, residential, and industrial developments within and outside its City limits, approximately 125,000 connections. The City provides wastewater treatment services to three user agencies outside City limits: Community Service Area 71 [CSA-71], East Niles Community Service District [ENCSD] and Kern Sanitation Agency [KSA]. Wastewater from within the City and the three agencies outside the City, is treated by the City’s two wastewater treatment facilities: WWTP 2 and WWTP

3. The City maintains agreements with ENCSD, KSA, and CSA-71 and receives an annual lump sum payment from ENCSD and KSA for their proportionate share of WWTP 2 operations, maintenance and capital expenses. The City bills and receives payment from Kern County to account for services provided to CSA-71 customers.

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New customers, including single-family and multi-family homes, commercial business, and industrial users, connecting to the City of Bakersfield sewer system are charged a one-time fee at the time of connection.

Finally, the City receives additional sources of revenue separate from the rate revenues generated by sewer service charges and connection fees. These include industrial discharge permit fees, septage hauler disposal fees, pretreatment annual fees, and rental income for use of the City’s Wastewater Farm.

2.2 Sewer Revenue Increase History
In 2024, the City identified the need to evaluate and increase the various wastewater rates and fees. Water staff developed a 10-year wastewater financial plan and associated rate model to ensure the future financial health of the Sewer Enterprise was sustainable.

Water staff met with various City Departments, City Management [CMO] and City Council members to prepare the analysis for the various rate and fee adjustments. It was important to ensure that this analysis included all aspects associated with system expenses, revenue collections, and funding options to address the concerns with outdated technology, aging infrastructure and capacity needed for future growth.

Fees and Rates evaluated included:
• Non-Operating Fees – Miscellaneous fees collected
• Sewer Connection Fee – Developer fee
• Sewer Service Charge Rate – Proposition 218 required – collected via tax roll • Commercial Surcharge Rates – Proposition 218 required – collected via monthly billing • Industrial User Rates – Proposition 218 required – collected monthly billing

2.2.1 Non-Operating Fee Increases
Water receives additional sources of sewer revenue from non-operating fees, which is defined in Section 4.3.1Industrial discharge permit fees apply to permitted users, for the Water Department to recover the costs for lab work and additional services incurred by environmental compliance inspections. The City allows septage haulers to dispose of grease and septage waste at either City operated treatment plant and bills each hauler based on truck capacity. Rental income is collected from farmers that grow animal feed crops on the City’s Wastewater Farm.

In May 2024, Council approved a resolution to increase the Non-Operating Fees to properly recover operational costs associated with industrial waste, septage hauling, and environmental compliance inspections. The new approved fees were effective July 1, 2024.

2.2.2 Sewer Connection Fee Increases
Directly following the effort to increase non-operating fees, Water began meeting with CMO and Developers, including the KC-HBA, to discuss the need to increase the Sewer Connection Fee.

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Connection fees are a one-time fee assessed by City at the time of vesting and paid by the home builder prior to a customer connecting to the wastewater system. Connection fees vary by customer type, including single-family dwellings, muti-family dwellings, commercial and industrial.

In September 2024, after a formal public hearing, Council approved the increase to the Sewer Connection Fees, such that the connection fee per single-family unit increased to $6,947. This fee became effective as of October 1, 2024. Effective October 1, 2025, the residential connection fee was increased to $7,248 by escalating the FY 2024-25 rate of $6,947 by an ENR-CCI rate of

4.33%.

2.2.3 Sewer Service Charge Rates
Once Non-Operating Fees and Sewer Connection Fee increases were addressed, Water staff turned its focus to evaluating the Sewer Service Charge Rates.

Water prepared a 10-year wastewater budget for the operations, maintenance and capital improvements projects for the following systems:
• WWTP 2 and WWTP 3
• Sewer Collections and Storm Drain Systems
Water met with and collected data from the Public Works Department [PW] staff, who oversee the design and construction of the sewer collections and storm drain systems. Their input was vital to ensure that projects and costs for operations, maintenance, and Capital Improvement Programs [CIPs] of these systems were reflected accurately.

Water met with Finance Department [Finance]staff and CMO staff to discuss the 10-year budget, revenue deficiencies and the need to increase the Sewer Service Charge Rates.

Finance and CMO staff advised Water to analyze different service charge rate increase scenarios, evaluating “bond” and “no bond” rate options, as follows:
• Option 1 – One-time increase to cover all costs – No bond issuance Rate = Increase to $950 – one-time service charge
• Option 2 – Multi-year increase to cover all costs – No bond issuance Rate = Increase to $850 with an annual 4% increase for 5 years, final service charge $1,035 • Option 3 – One-time increase to cover half WWTP 2 construction costs and bond for half Rate = Increase to $705 – one-time service charge
• Option 4 – Multi-year increase to cover half WWTP 2 construction costs and bond for half Rate = FY 25 – Increase to $420, FY 26 – $630, FY 27 – $785, FY 28-30 – remain flat at $785 On March 3, 2025, Water, along with Finance, met with the City Manager to discuss the need for the Sewer Service Charge Rate increases and the evaluated options. Upon reviewing the City of Bakersfield – Water Department 2026-2030 Sewer Rates & Fees Report

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evaluation, which identified funding and infrastructure deficiencies, Water was advised to present the data and rate options to the Water Board to obtain guidance and direction.

The Water Board meeting was held on March 12, 2025, at 10:00 am, with Chairman Smith and Members Kaur and Gonzales in attendance. Water presented Options 1 - 4 to the Board and it was unanimously recommended for staff to move forward with Option 1. The Water Board directed staff to take Option 1 to the full Council and request approval to begin the Proposition 218 process.

On March 26, 2025, Water presented the need to increase the Sewer Service Charge Rate to the full Council and recommended Option 1 be selected and included in the Proposition 218 Notice.

There was an in-depth discussion of the various options that were analyzed and the Council voted to move forward with Option 1, which would entail an increase to a $950 fixed annual service charge for the sewer user and would provide the funds needed to offset expenses in the 10-year plan without requiring a bond.

2.3 2025 Supplemental Report
Once staff received direction from Council to move forward with the increase to $950 fixed annual sewer service charge, the 2025 Supplemental Report to the 2021-22 SEWER RATES AND CONNECTION FEES STUDY was finalized, herein after referred to as 2025 Supplemental Report. Both the 2025 report and the original study are available upon formal request.

The completed 2025 Supplemental Report thoroughly evaluated current and future operations, maintenance, and capital improvement expenses needed to ensure the operational efficiencies of sewer collections, storm drain, and wastewater treatment plant systems. It included the 8- year Financial Plan [2025-2033], which identified the total annual Revenue Requirement and the 5-year rate model, which determined revenue generation. This analysis verified that the onetime increase to $950 annually for the sewer service charge would generate sufficient revenue needed to cover the identified expenses, maintain adequate reserves, and ensure the health and safety services can continue to be provided to Bakersfield’s existing residents and growing community.

2.4 2025 Proposition 218 Process
Annual sewer fees are viewed as property-related fees for utility service and are subject to Proposition 218. This requires that fees adopted by the City for services rendered do not exceed the reasonable estimated cost for providing the services. Staff had determined that the proposed rates do not exceed the cost of services.

The Proposition 218 process also requires a public hearing in which the public may support or protest the rate increase. This includes notifying affected property owners of a proposed fee or fee increase, and providing a 45-day period for property owners to submit a written protest if desired. Notices were mailed out in April 2025. The public hearing to consider the proposed update was scheduled to take place during May 28, 2025 City Council meeting.

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2.4.1 2025 Proposition 218 Notice Approval
On March 26,2025, Council took action to authorize staff to mail out Proposition 218 notices to sewer customers notifying them of the proposed Sewer Service Charge Rates beginning FY 2025-

26. The Proposition 218 Notice was mailed on April 11, 2025, and read in part:

NOTICE OF PUBLIC HEARING ON PROPOSED INCREASES TO SEWER RATES NOTICE IS HEREBY GIVEN that a public hearing accepting testimony will be held before the Bakersfield City Council at 5:15 p.m., or as soon thereafter as the matter may be heard, on Wednesday May 28, 2025, in the Council Chambers of City Hall located at 1501 Truxtun Avenue, Bakersfield, California, for the purpose of considering increases to Sewer Rates. The new rates, if adopted, will go into effect on July 1, 2025. In compliance with Proposition 218, affected property owners within the City limits of Bakersfield are hereby informed of the proposed increases to Sewer Rates.

Sewer Rate Changes
Residential sewer rates are proposed to increase from $239.00 to $950.00 per year.

Residential customers pay a flat rate for sewer. The sewer fee is collected annually on the property tax bill.

The public response was immediate; on April 14, 2025, residents began to call the Water Department with concerns about and opposition to the proposed increase.

2.4.2 2025 Proposition 218 Notice Rescission
Based on the community’s response, Council opted to reconsider the rate increase and on April 23, 2025, advised the community that the Prop 218 Notice would be rescinded during May 14, 2025, Council meeting. A summary of the Rescission Notice is included below.

Rescinded Proposition 218 Notice Concerning a FY 25/26 Sewer Rate Increase:

Effective May 14th, 2025, the Bakersfield City Council has rescinded the Proposition 218 Notice Concerning a FY 25/26 Sewer Rate Increase that was mailed out on April 11th, 2025.

As a result, the proposed rates that were noticed are now null and void, and the previously scheduled hearing for May 28th, 2025, has been cancelled.

The Council and City Management understood that the Sewer Service Charge Rates needed to be raised; however, they requested Water staff to work with a consultant to have the internal report reviewed and to develop an outreach plan to ensure the community is informed about what the Sewer Service Charge Rates cover, what service the City provides, and why the rate increases are necessary.

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2.5 2026 Sewer Rates & Fees Report
At the direction of the Council, Water reached out to HF&H and requested they review and provide comments on the Water Department’s prepared 2025 Supplemental Report. Their findings were as follows:
• Overall, the 2025 Supplemental Report provided sufficient detail, and the City used the rate model as intended.
• Revenue projections seemed low and HF&H questioned the future growth rate. • Expenses, especially future CIP costs, should include an escalator to account for inflation to material and labor cost increases.
• HF&H recommended preparing an updated cost-of-service analysis based on the financial plan and the significant infrastructure projects planned.

Water staff and HF&H began collaborating in May 2025 to update the 10-year Financial Plan [2026-2035] and 5-year Rate Model [2026-2030], incorporating HF&H’s recommendations and preparing an updated standalone rates and fees report, sewer connection fee evaluation, and cost of service analysis. The 2026 plan and 2026 model were the foundational documents that were used by Water staff to prepare the 2026 Sewer Rates & Fees Report and for HF&H to prepare the 2026 Sewer Cost of Service Analysis, which identified the 2026 cost to provide service as $1,087 per sewer user.

The information and conclusions from the 2026 Sewer Rates & Fees Report were presented to City Council on October 22, 2025. In addition, Water staff provided six rate scenarios outlining various 5-year and 7-year rate structures that the Council could consider for the future 2026 Prop 218 process. The Sewer Enterprise – Cost of Service and Rate Scenarios presentation presented to the Council during the meeting is attached as Exhibit D.

2.6 Public Outreach Effort
City staff developed and implemented an Outreach Plan intended to inform and educate the community about the condition of the City’s sewer system, need to increase the sewer service charge rate and obtain feedback from the community as to rate options being proposed.

2.6.1 Educational Community Meetings
At the request of the City Council members, the Water Department and the City Manager’s Office – Communications and Marketing Division scheduled and prepared for community meetings that were hosted in every Council Ward during the month of October 2025.

The focus of these community meetings was to inform the residents about:
• Wastewater Basics
• City’s Wastewater system, facilities and deficiencies • How City growth impacts collection and treatment services • 2025 Sewer Service Charge increase attempt
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• 2026 Sewer Service Charge Rate next steps
Understanding the City’s Sewer System presentation that was shared during the community meetings is attached as Exhibit E.

The meeting dates and locations where the presentation was shared with the community members were as follows:
• 2025-October 6 Ward 5 Community Meeting
Southwest Library 8301 Ming Ave.

Councilman L. Koman
• 2025-October 13 Ward 1 Community Meeting
South High School
Councilman E. Arias
• 2025-October 15 Ward 7 Community Meeting
Ridgeview High School
Councilwoman M. Kaur
• 2025-October 16 Ward 2 Community Meeting
Mill Creek Park Community House
Councilman A. Gonzales
• 2025-October 20 Ward 3 Community Meeting
Chipman Jr. High School
Councilman K. Weir
• 2025-October 21 Ward 6 Community Meeting
Kern City Civic Association
Councilman Z. Bashirtash
• 2025-October 27 Ward 4 Community Meeting
NOR Recreation Center
Councilman B. Smith
To promote these meetings, flyers were prepared and handed out by Water staff at the Water Day at the Kern County Fair, hosted by Water Association of Kern County, and posted on the City of Bakersfield Facebook page. In addition, flyers were available at all Community Meetings, so attendees could share future dates with family and friends that may be interested in learning more.

2.6.2 Rate Development Community Meetings
During October 22, 2026, Council Meeting, various City Council members requested Water staff meet with the community again and educate the public as to the rate options and how they were developed. Council also wanted the public to be provided with an opportunity to have input on the rate options that they felt would be the most reasonable.

The focus of these community meetings was to inform the residents about:
• How the cost of service was developed
• Customer classes
• Fixed and surcharge rates
• Major infrastructure project schedules
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• Proposed rate scenarios and bond amounts
Rate Development and Scenarios presentation that was shared during the community meetings is attached as Exhibit F.

The meeting dates and locations where the presentation was shared with the community members were as follows:
• 2025-November 13
• 2025-December 3
Virtual Meeting
Ward 6 Community Meeting
Kern City Civic Association
Councilman Z. Bashirtash
• 2026-January 8 Ward 2 Community Meeting
Council Chambers
Councilman A. Gonzales
• 2026-January 13 Ward 5 Community Meeting
Southwest Library 8301 Ming Ave.

Councilman L. Koman
• 2026-January 14 Ward 7 Community
Meeting Ridgeview High School
Councilwoman M. Kaur
• 2026-January 15 Ward 1 Community Meeting
South High School
Councilman E. Arias

2.6.3 Tours and Presentations
In addition to the Community Meetings, Water staff also met with and present to various professional affiliations, key stakeholders and educational programs. The calendar below identifies the additional efforts undertook by Water staff to share the information:
• 2025-August 20 American Society of Civil Engineers
• 2025-October 8 Water Association Kern County
Wastewater Treatment Plant 3 Tour
• 2025-October 14 California Land Surveyors Association • 2025-November 4 Greater Bakersfield Chamber
• 2025-November 4 Do the Math [Live]– Wastewater focus
• 2025-December 3 Rotary Club
• 2025-December 18 Rotary Club
• 2026-January 12 Kern Tax

2.6.4 User Agency Outreach
As stated above in Section 2.1, City maintains agreements with ENCSD, KSA, and CSA-71. KSA and CSA-71 are both managed by County of Kern. ENCSD and KSA pay a share of the operations, City of Bakersfield – Water Department 2026-2030 Sewer Rates & Fees Report

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maintenance, and capital projects costs on an annual basis to compensate the City for treating the wastewater of the residents within the ENCSD and KSA districts. As far as CSA-71, the County collects revenue from their CSA-71 residents and per the agreement, each resident is to pay the same rate as a City resident for the City’s system to convey and treat their resident’s wastewater.

To ensure that the County and ENSCD are aware of the City’s efforts to increase the sewer user rate, Water staff ensured that the County and ENCSD were informed as to the need for the increase and the City’s schedule for the Prop 218 process.

Below is a timeline of meetings that occurred throughout this process in 2025 and 2026:
• 2025-January 22 Water staff called Kern County Public Works Senior Engineer, who is also the KSA representative, herein after referred to as PW Senior Engineer, to advise that the City was evaluating a sewer user rate increase above the typical CPI or CCI amount.
• 2025-Mid-February Water staff called PW Senior Engineer to advise that the City is considering a three digit precent increase but was still working with City Management and Finance staff to determine the exact amount. The PW Senior Engineer was informed that Water staff would be presenting rate increase options to the Water Board on March 12th, 2025.
• 2025 -March 13/14 Water staff called PW Senior Engineer to confirm that the City Water Board directed Water staff to present a proposed rate of $950 to Council during the March 26 meeting and request Council authorization to begin the Prop 218 process. • 2025-March 25 Kern County Assistant PW Director contacted the Water Department requesting additional information about the proposed $950 rate increase.

Water staff advised the Assistant PW Director that Water Staff had been coordinating with County staff and had been providing information and updates to the County. Water staff provided the Water Board presentation and additional information about the recommended rate of $950.
• 2025-April 9 Technical Advisory Committee Meeting
During the Technical Advisory Committee meeting, which was attended by Kern County Public Works Senior Engineer, who is the KSA representative, and ENCSD General Manager, the proposed rate increase to $950 was discussed and data was provided. • 2025-April 22 Meeting with Supervisor David Couch, District 4 Councilman Koman initiated and facilitated this meeting at the request of Supervisor Couch. Water staff were included in the meeting and provided information as to the need for a rate increase and advised that engineering and financial consultants had been hired and construction and rate alternatives were being analyzed. • 2025-July 14 Meeting with Kern County Public Works Director Water Director updated the PW Director as to the current status rate increase effort including working on an update the COSA and preparing a new report with support from hired consultants.

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• 2025-October 1 Meeting with Kern County Public Works Director Water Staff advised Kern County Public Works Director that Outreach Community meetings were beginning and provided a flyer as to the date and locations of all upcoming meetings.
• 2025-October 22 Findings from the 2026 Sewer Rates and Fees Report, COSA and Rate Scenarios were presented to City Council. The report and presentation were uploaded onto the Wastewater Website and made available to the public. • 2025-November 12 AECOM Workshop #1 – WWTP 2
Senior PW Engineer and GM ENCSD were invited and attended the full day workshop to learn about the deficiencies at WWTP 2 and suggestions to address these issues. • 2025-December 18 Water staff email PW Senior Engineer to advise that the sewer rate increase was going to be presented to Council on February 11, 2026. • 2026-January 2 PW Senior Engineer advised Water staff that the County was aware of the City’s work on the sewer rate increase.
• 2026-January 5 Water staff emailed PW Senior Engineer a link to the virtual presentation from November 13, 2026 and provided a timestamp as to the information concerning the rate scenarios.
• 2026-January 20 AECOM Workshop #2 – WWTP2
Senior PW Engineer and GM ENCSD were invited and attended the ½ day workshop to learn about alternatives evaluated to address the WWTP 2 deficiencies and the proposed costs.
2026-January 30 Meeting with Kern County Administrative Officer City Manager had monthly meeting with County Administrative Officer; one topic of discussion was the City’s proposed rate increase. During the discussion City Manager shared with County Administrative Officer the Recommended Rate Scenario that was later presented to City Council on February 11, 2026.
• 2026-February 11 County Counsel Public Comment Letter County Counsel Paralegal emailed, called, and sent the City a Public Records Request the day of the Council meeting requesting the 2026 Sewer Rates and Fees Report.

Water staff provided a copy of the report to the County Counsel within 1-hour of their request.

County Counsel submitted a letter to the City Clerk’s Office one hour prior to the Council Meeting.

Based on the information outlined above, County staff has been advised as to the City’s intent to increase the sewer user rate; informed as to the timing of the Prop 218 process; able to access information, including reports and presentations, as it is all available to the public via a public website; and included in the process by attending engineering workshops.

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2.6.5 Social Media Outreach
In addition to the community and stakeholder meetings, Water staff and the Communications and Marketing teams developed a social media campaign which included a number of additional options for reaching the community:
• 2025-September 15 - Podcast Episode 1
o Wastewater 101
o City’s Facilities
o Cost to Provide Service
• 2026-February 17 – Podcast Episode 2
o Recommended Sewer User Rate
o Council approval to begin Prop 218 process
o Prop 218 Process
• Wastewater Website
o Calendar of Events
o Educational Videos
o Final Reports
• Facebook Posts
o Providing dates and locations for upcoming meetings and events o Sharing links to the website, videos, and presentations o Podcast links

2.7 2026 Proposition 218 Process
This 2026-2030 Report, which includes the 2026 RECOMMENDED SEWER RATE COST OF SERVICE ANALYSIS, is the document required to justify a modification to the Sewer Service Charge Rates.

In order for the City to modify this rate, the rate [or rates] needs to be presented to Council, Council needs to approve the recommended rate and advise Water staff to move forward with the Proposition 218 process.

2.7.1 2026 Proposition 218 Approval
On February 11, 2026, Water staff updated the City Council during the regular scheduled meeting as to the efforts that had been completed since October 22, 2025, including:
• Public Outreach, as discussed in section 2.6 of this report • AECOM’s Evaluation, as discussed in section 2.8 of this report • Communication, meetings, and data sharing with ENCSD, KSA, and County of Kern City of Bakersfield – Water Department 2026-2030 Sewer Rates & Fees Report

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Water staff also presented to Council a Recommend Sewer User Rate and requested approval to move forward with the Proposition 218 for this recommended rate. The rate presented was as follows:
• Year 1 – 2026-27 $475 annual rate which equates to $39.58 monthly • Year 2 – 2027-28 $575 annual rate which equates to $47.92 monthly • Year 3 – 2028-29 $675 annual rate which equates to $56.25 monthly • Year 4 – 2029-30 $775 annual rate which equates to $64.58 monthly • Year 5 – 2030-31 $875 annual rate which equates to $72.92 monthly Sewer User Rate Increase Update and Recommendations presentation presented to the Council during the meeting is attached as Exhibit G.

2.7.2 2026 Proposition 218 Schedule
After Water staff’s presentation, Council took action to authorize staff to mail out Proposition 218 notices to sewer user customers. Proposition 218 Notice is included as Exhibit H.

Proposition 218 requires a review period and public hearing in which the public may support or protest the rate increase. This includes notifying affected property owners of a proposed fee or fee increase, and providing a 45-day period for property owners to submit a written protest if desired. Notices were mailed out in early March 2026. The public hearing to consider the proposed update is scheduled to take place during the April 22, 2026, City Council meeting. If the rate is approved by Council after the public hearing it would be effective July 1, 2026.

Below is the Proposition 218 schedule:
2026-March 2 through 6 Mail Proposition 218 Notice
2026-March 6 through April 22 45-day Public Review Period 2026-April 22 City of Bakersfield Council - 5:15pm Regular Meeting • City Council will hold a Public Hearing
• City Council will need to issue approval to adopt proposed rate • City Council will need to issue approval to provide notice to Kern County Assessors’ Office to include the adopted rates in the Kern County Property Tax. 2026-July 1 Approved Sewer Service Charge Rates would take effect

2.8 AECOM Wastewater System Evaluation
At the direction of City Management and Council, Water staff advertised a Request for Qualifications [RFQ] for a consultant to perform a full evaluation of the entire WWTP 2 and WWTP 3 treatment system, including condition of the infrastructure, capacity, and technology.

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After reviewing proposals and interviewing the top-ranked consultants, Water staff selected AECOM Technical Services, Inc. [AECOM] to perform this evaluation.

City contracted with AECOM in July 2025, field investigations were completed in September, and workshops with Water staff, ENCSD, and County of Kern - KSA were conducted in November 2025 and January 2026. The completed evaluation, assessment and recommendations report will be delivered by April 2026.

The AECOM evaluation has been utilized to determine what improvements are needed at each treatment facility to ensure the plants can provide the necessary services for the growing community. AECOM is currently preparing the draft wastewater system report, which will include their detailed evaluations of WWTP 2 and WWTP 3, the multiple alternatives analyzed, and the selected projects and costs that will meet the City’s requirement to treat 70 MGD by 2050. The final report is anticipated to be complete in April 2026.

2.8.1 Major Infrastructure Technical Memo
As stated above in Section 2.7.1, on February 11, 2026, Water staff provided an update to the City Council about the efforts that had been completed and the recommended sewer user rate.

During this presentation, Water staff identified the four major infrastructure projects that had been analyzed as part of the AECOM effort and were to be included in the 2026-2030 Report.

Staff shared project costs and schedules with the Council based on information obtained during the January AECOM workshop.

While discussing the development of the 2026-2030 Report with AECOM, it became clear that a technical memo providing additional detail about the major infrastructure projects themselves as well as more detailed project costs would be valuable for the 2026-2030 Report preparation effort.

As a result of this request, AECOM has prepared a Major Infrastructure Technical Memo, which includes project descriptions and more refined cost estimates for the major infrastructure improvements and expansions at WWTP 2 and WWTP 3, and the plan for a new WWTP 4. These updated cost estimates are incorporated in section 3.4 Capital Improvements and reflected throughout the 2026-2030 Report.

AECOM’s Major Infrastructure Technical Memo is included as Exhibit I.

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3. REVENUE REQUIREMENT
A wastewater financial plan was developed to derive the revenue requirements from FY 2026-27 through FY 2035-36. The financial plan is a 10-year budget that includes all expenses associated with operations, maintenance, capital improvements, and debt service for the entire wastewater and storm drain systems. This 10-year period includes the time frame needed to complete significant infrastructure improvements for the two systems to meet current demands and future growth, including the expansion of WWTP 3, the upgrades to WWTP 2 and the preliminary engineering and permitting for a new WWTP to replace WWTP 2.

3.1 Summary of Expenses
The revenue requirements represent the costs that must be covered by revenue from rates, fees and other sources. For this study, we used Water’s Wastewater Division Operations and Maintenance [O&M] budget for FY 2026-27 and applied the annual assumptions shown in Figure 3-1, the known remaining debt service, and the 10-year CIP for sewer collections, storm drain, and wastewater treatment systems.

The escalation factors in Figure 3-1 summarize effective annual percentage increases in various O&M cost categories.

Figure 3-1. Rate Modeling Assumptions
The annual O&M, current debt service, and capital expenses are listed in Figure 3-2, and summarized graphically in Figure 3-3, and are described in more detail below.

Figure 3-2. Total Projected Revenue Requirements
Assumptions Annual Escalation
a General Inflation 3.5%
b Utilities 5.0%
c Salaries 4.0%
d Benefits 4.0%
e Healthcare 4.0%
f Interest on Earnings 2.00%
g Non-rate Revenues 1.0%
h Growth of Accounts 1.45%
j Bad debt (% of revenue) 0.0%
k Construction Cost Inflation 3.50%
FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 FY 2035-36 TOTAL O&M $ 34,762,000 $ 38,212,016 $ 40,757,212 $ 42,924,433 $ 46,100,626 $ 49,760,006 $ 52,656,467 $ 58,062,978 $ 61,676,900 $ 66,347,942

TOTAL CIP
[w/escalation] $ 33,438,125 $ 36,988,488 $ 76,195,229 $ 37,204,570 $ 45,330,687 $ 150,463,724 $ 210,621,355 $ 139,404,729 $ 172,986,993 $ 171,224,941 TOTAL
DEBT SERVICE $ 12,265,625 $ 12,278,250 $ 12,359,250 $ 12,362,500 $ 12,363,625 $ 8,549,125 $ 6,631,750 $ - $ - $ -

REVENUE
REQUIREMENT $ 80,465,750 $ 87,478,754 $ 129,311,690 $ 92,491,503 $ 103,794,937 $ 208,772,854 $ 269,909,572 $ 197,467,707 $ 234,663,893 $ 237,572,884 City of Bakersfield – Water Department 2026-2030 Sewer Rates & Fees Report

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Figure 3-3. Total Projected Revenue Requirements

3.2 Wastewater Operations & Maintenance Expenses
Operations and Maintenance expenses are the costs incurred to ensure that the wastewater and storm drain systems are functioning efficiently to meet all health and safety requirements to collect, transport, and treat residential, commercial, and industrial sewage and storm water.

These costs can include personnel, supplies, services, and utilities.

To address the needs of the aging infrastructure and system growth due to City growth, additional staff, reclassification of certain staff positions, and additional equipment have been integrated into the 10-year plan and account for an increase to the personnel complement by 28 employees, shown in Figure 3-4. Additional personnel identified range from administrative staff to mechanics and operators. The justification for these additional staff members is provided in Exhibit J – Personnel Memo.

Figure 3-4. Additional Personnel
2026-2035
Additional Personnel
Adminstrative Personnel 3
Plant Operator IIIs 8
Plant Electrical-CoGen-Tertiary w/vehicle 4
Plant Maintenance 5
Sewer & Storm Drain Maintenance w/vehicles 4
Construction & Compliance Inspectors w/vehicle 3
Laboratory Technician 1
TOTAL 28
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The expense projectionsinclude an annual increase in salaries and benefit costs of approximately

4.0% due to increased health costs, anticipated step-raises, reclassifications, and potential cost of living increases. In addition, computer equipment and vehicles have been included in the personnel costs for those positions that require additional equipment. The projected cost and the year in which the additional position is planned to be hired is provided for in Exhibit C – 10- year Financial Plan. These personnel expenses have been factored into the revenue requirement projections.

As shown in Figure 3-5, the City’s O&M expenses are projected to increase by an annual average of 8.3% over the next 10 years due to increased capacity at the facilities associated with growth, repairs needed to ensure aging infrastructure is operational, and rising service costs during this planning period. O&M supplies and services are escalated at an annual rate of 3.5%, property insurance, liability insurance, and workers compensation are escalated by between 5% - 15% depending on the historical costs to the various division and utilities, including electricity and water, are projected to increase 5% annually.

Figure 3-5. Projected Operations and Maintenance Expenses

3.3 Existing Debt Service
The Sewer Enterprise had two wastewater revenue bonds: 2015A and 2020A. In June 2025, Finance began the process to refinance these two bonds. On August 6, 2025, Finance signed a Bond Purchase agreement and obtained 2025A Bonds in the amount of $55,290,000. Figure 3-6 summarizes the debt service payment schedule for the 2025A Bond. This bond is scheduled to be paid off by the end of FY 2032-33.

Figure 3-6. Current Debt Service
At the request of the Council, in an effort to reduce the overall annual sewer user rate, the financial plan developed for the 2026-2030 Report does consider issuing additional debt to fund wastewater capital improvements during this 10-year planning period. The proposed bond revenue and debt service is included and analyzed in Section 5.

3.4 Capital Improvements
The wastewater financial model includes a CIP that includes projects which have been identified by Engineering staff from the Water and Public Works Departments. These projects account for FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 FY 2035-36

SALARIES &
BENEFITS $ 10,598,037 $ 12,248,569 $ 14,237,586 $ 15,125,270 $ 15,517,461 $ 16,783,956 $ 18,411,729 $ 19,044,198 $ 19,805,966 $ 20,598,204 $ 22,222,132

O&M SUPPLY/

SERVICES/

UTILITIES
$ 19,516,854 $ 22,513,431 $ 23,974,430 $ 25,631,941 $ 27,406,972 $ 29,316,670 $ 31,348,277 $ 33,612,269 $ 38,257,012 $ 41,078,696 $ 44,125,810 TOTAL

OPERATING

EXPENSES
$ 30,114,891 $ 34,762,000 $ 38,212,016 $ 40,757,212 $ 42,924,433 $ 46,100,626 $ 49,760,006 $ 52,656,467 $ 58,062,978 $ 61,676,900 $ 66,347,942 Annual % Increase 15.4% 9.9% 6.7% 5.3% 7.4% 7.9% 5.8% 10.3% 6.2% 7.6% FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 FY 2035-36 2025A BOND
PAYMENTS $ 12,265,625 $ 12,278,250 $ 12,359,250 $ 12,362,500 $ 12,363,625 $ 8,549,125 $ 6,631,750 $ - $ - $ - City of Bakersfield – Water Department 2026-2030 Sewer Rates & Fees Report

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infrastructure improvements needed to ensure efficient operations of the WWTPs, sewer collections, and storm drain systems.

Through this effort, staff identified minor infrastructure projects, like rehabilitating pumps and motors at the WWTPs, updating lift stations, replacing manholes, or lining sewer lines, and major infrastructure projects that are associated with significant upgrades or expansion of the WWTP facilities. Both WWTP 2 and WWTP 3 will require an upgrade due to the facility exceeding its operation life for certain structures, mechanical and electrical equipment, and technology.

In addition, a WWTP 3 expansion is needed to address capacity and operational issues. The growth in southwest Bakersfield continues, and it is anticipated that the number of homes constructed annually will gradually increase from 1,500 homes per year to 2,400 homes per year over the next 10 years. With this growth and the build out of the California Dairies industrial plant, it is anticipated that WWTP 3 will be at capacity by FY 2030-31, but Water will continue to perform annual flow assessments to monitor and verify.

Figure 3-7. WWTP 3 Capacity Evaluation

3.4.2. Wastewater CIP Cost Overview
In addition to minor and major WWTP projects, there are infrastructure improvements identified for the sewer collections and storm drain systems. PW – Streets Operations Division maintains both these systems and PW Engineering works closely with Operations staff to identify lift stations and lines that need to be repaired, rehabilitated, upgraded, or replaced as part of the CIP. The entire CIP is summarized in Figures 3-8a, 3-8b, 3-8c. 10 15
20 25
30 35
40 45
50 2009 2012 2014 2017 2020 2023 2025 2028 2031
Flow (MGD)
Year
WWTP #3 Actual and Future Capacity
Influent at 1,500 houses/yr Influent at 2,400 houses/yr Influent at 4,700 houses/yr Plant Design
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Figure 3-8a. CIP Summary – Minor Infrastructure – Sewer and Storm Figure 3-8b. CIP Summary – Minor Infrastructure – WWTPs FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 FY 2035-36 WWTP2 Septage Processing Unit Replacement $2,000,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 WWTP2 Clam Shell - Grit System $250,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 WWTP2 Plant Lighting Upgrades $200,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 WWTP2 Clarifyer Rehabilitation $1,000,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 WWTP2 Site Infrastructure $750,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 WWTP2 Annual Capital Improvement Projects $1,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 WWTP3 Grit Classifier Replace Construction $0 $500,000 $0 $0 $0 $0 $0 $0 $0 $0 WWTP3 Digester Dome Rehab Construction $150,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 WWTP3 Secondary Clarifier Rehab Construction $25,000 $425,000 $0 $0 $0 $0 $0 $0 $0 $0 WWTP3 Septage Processing Unit Upgrade $1,150,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 WWTP3 Flare Replacement $150,000 $1,500,000 $0 $0 $0 $0 $0 $0 $0 $0 WWTP3 BioFilter Fans - Procure & Install $600,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 WWTP3 H2S Damage Repair $150,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 WWTP3 Cloth Media Filter Replacement $0 $60,000 $0 $0 $0 $0 $0 $0 $0 $0 WWTP3 Plant Lighting Upgrade $100,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 WWTP3 Primary Influent Gate $100,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 WWTP 3 EV Charging for Trucks $0 $0 $0 $1,000,000 $1,000,000 $0 $0 $0 $0 $0 WWTP3 Site Infrastructure $250,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 WWTP3 Annual Capital Improvement Projects $1,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 CIP Sub-total $9,875,000 $7,485,000 $5,000,000 $6,000,000 $6,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 Escalation Factor 1.035 1.071 1.109 1.148 1.188 1.229 1.272 1.317 1.363 1.411 MINOR INFRASTRUCTURE WWTPs $10,220,625 $8,018,119 $5,543,589 $6,885,138 $7,126,118 $6,146,277 $6,361,396 $6,584,045 $6,814,487 $7,052,994

CAPITAL IMPROVEMENT PROJECTS
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Figure 3-8c. CIP Summary - Major Infrastructure - WWTPs Note: The Major Infrastructure estimates shown above include the 3.5% annual escalation factor.

The justifications for the projects are provided in Exhibit K – Capital Improvement Program Memo.

Figure 3-9. CIP Summary by Cost Category
As part of the HF&H review of the 2025 Supplemental Report, it was recommended to add an annual escalator to the CIP to account for increases in material and labor costs. All CIP estimates have been escalated annually at a rate of 3.5%, as summarized above in Figure 3-9.

3.5 Wastewater Fund Reserve Target
In addition to covering annual expenses, sewer service charges need to generate revenue to maintain adequate operations, debt service, and capital reserves. To determine what constitutes adequate reserve amounts, the City’s Sewer Enterprise Fund balance is divided into Operating, Capital, and Debt Service Reserves. Recommended target balances are set to fund each reserve, and when combined, account for the Total Reserve Target.

FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 FY 2035-36 WWTP2 P0-Upgrade RFQ & PDR $1,000,000 $2,000,000 $0 $0 $0 $0 $0 $0 $0 $0 WWTP2 P0-Upgrade Design/Enviro $0 $0 $10,000,000 $9,000,000 $0 $0 $0 $0 $0 $0 WWTP2 P0-Upgrade Pre-Purchase [Elec-Mech Equip] $0 $0 $0 $0 $25,000,000 $0 $0 $0 $0 $0 WWTP2 P0-Upgrade-Construction $0 $0 $0 $0 $0 $80,000,000 $84,000,000 $0 $0 $0 WWTP2 P0-Upgrade-Construction Mgmt $0 $0 $0 $0 $0 $7,500,000 $7,500,000 $0 $0 $0 WWTP3 P0-32MGD RFQ & PDR & Design $1,000,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 WWTP3 P0-32MGD Pre-Purchase [Elec-Mech Equip] $0 $2,600,000 $0 $0 $0 $0 $0 $0 $0 $0 WWTP3 P0-32MGD-Construction $0 $0 $30,500,000 $0 $0 $0 $0 $0 $0 $0 WWTP3 P0-32MGD-Construction Mgmt $0 $0 $2,600,000 $0 $0 $0 $0 $0 $0 $0 WWTP3 EXP40 RFQ & PDR $0 $0 RFQ $2,000,000 $1,000,000 $0 $0 $0 $0 $0 WWTP3 EXP40 Design/ Enviro/ Permits $0 $0 $0 $0 $0 $25,000,000 $14,000,000 $0 $0 $0 WWTP3 EXP40 Purshase 160 Acres $0 $0 $0 $0 $0 $0 $2,500,000 $0 $0 $0 WWTP3 EXP40 Pre-Purchase [Elec-Mech Equip] $0 $0 $0 $0 $0 $0 $40,000,000 $0 $0 $0 WWTP3 EXP40-Construction $0 $0 $0 $0 $0 $0 $0 $103,000,000 $104,000,000 $80,000,000 WWTP3 EXP40-Construction Mgmt $0 $0 $0 $0 $0 $0 $0 $10,000,000 $10,000,000 $6,000,000 WWTP4 @P2 RFQ/ PDR/ Enviro/ Legal $0 $0 RFQ $4,000,000 $3,000,000 $0 $0 $0 $0 $0 WWTP4 @P2 Design & Permits $0 $0 $0 $0 $0 $21,000,000 $20,000,000 $13,500,000 $0 $0 WWTP4 @P2 Pre-Purchase [Elec-Mech Equip] $0 $0 $0 $0 $0 $0 $0 $0 $35,000,000 $30,000,000 MAJOR INFRASTRUCTURE WWTPs $2,000,000 $4,600,000 $43,100,000 $15,000,000 $29,000,000 $133,500,000 $168,000,000 $126,500,000 $149,000,000 $116,000,000

CAPITAL IMPROVEMENT PROJECTS
FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 FY 2035-36

SEWER &
STORM

SYSTEMS
$21,217,500 $24,370,369 $27,551,639 $15,319,432 $9,204,569 $10,817,447 $36,259,959 $6,320,683 $17,172,507 $48,171,948 WWTP 2
TREATMENT $6,899,500 $4,678,063 $12,771,795 $11,868,808 $27,969,216 $90,573,138 $94,680,698 $3,292,023 $3,407,243 $3,526,497 WWTP 3
TREATMENT $5,321,125 $7,940,057 $35,871,795 $6,016,331 $5,156,902 $28,073,138 $59,680,698 $116,292,023 $117,407,243 $89,526,497 WWTP 4
TREATMENT $0 $0 $0 $4,000,000 $3,000,000 $21,000,000 $20,000,000 $13,500,000 $35,000,000 $30,000,000 TOTAL
CIP COSTS $33,438,125 $36,988,488 $76,195,229 $37,204,570 $45,330,687 $150,463,724 $210,621,355 $139,404,729 $172,986,993 $171,224,941

CAPITAL IMPROVEMENT
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3.5.1. Operating Reserve Target
Operating Reserves serve multiple purposes ranging from monthly to annual cash flow management. On a monthly basis, the Operating Reserve provides working capital to cover the lag between when the City incurs operating expenses and when it receives revenue from sewer service charges. Providing adequate funding for Operating Reserves is the highest priority.

Because the City bills customers for base sewer service on the County tax roll, there is a ninemonth lag between when sewer service charges are billed, and payment is received from the County Assessor. The City does receive monthly revenues from commercial customers who pay sewer surcharges, but tax roll revenues comprise the largest portion of revenues received.

To provide working capital during the nine months between paymentsfrom the County Assessor, the City follows an Operating Reserve policy of nine months for its annual operating expenses.

This provides a greater financial buffer to the Sewer Enterprise Fund, decreasing the likelihood that temporary funding from the General Fund will be required to meet operating cash flow needs during the period between service billing and collection. This policy requires that between $26 to $50 million be held in reserves during the planning period.

3.5.2. Debt Reserve Target
The Debt Reserve Target accounts for the current debt service requirement City is obligated to meet. The City’s policy is to keep $12.5 million in reserve to make annual payments on the existing Wastewater Revenue Bonds. As shown in Figure 3-6 above, the 2025A bond is to be paid in full by FY 2032-33.

3.5.3. Capital Reserve Target
The Capital Reserve provides liquidity to fund construction for projects that are funded on a PAYGo basis (as opposed to those that are funded from debt). For this analysis, Water plans to fund the next ten years of capital improvement expenditures from the combination of a PAYGo approach and the issuance of a $150 million bond in FY 2031-32. Therefore, the capital expenses funded on a PAYGo basis take the form of even annual contributions of rate revenue for the Capital Reserve, which is equal to the 10-year average projected expenditure. In this way, rates can be modulated smoothly using the Capital Reserve and, in effect, are the capital expenses.

An annual CIP target reserve balance of $92.8 million is used ($928 million in total CIP over the 10‐year planning period ÷ 10 years = $92.8 million per year). Maintaining the target balance for the Capital Reserve is recommended after meeting the minimum balance for the Debt Service and Operating Reserves.

3.5.4. Total Sewer Enterprise Fund Reserve Target
The Total Sewer Enterprise Fund Reserve Target is determined by compiling the reserve minimum for operations and debt service, then incorporating capital improvements to obtain the reserve target on an annual basis. Figure 3-10 summarizes the components of the annual reserve and identifies the Total Sewer Enterprise Fund Reserve Minimum and Target.

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Figure 3-10. Annual Reserves - Minimum and Target [All Components] FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 FY 2035-36 O&M RESERVE $ 26,071,500 $ 28,659,012 $ 30,567,909 $ 32,193,325 $ 34,575,469 $ 37,320,004 $ 39,492,350 $ 43,547,234 $ 46,257,675 $ 49,760,957 DEBT RESERVE $ 12,265,625 $ 12,278,250 $ 12,359,250 $ 12,362,500 $ 12,363,625 $ 8,549,125 $ 6,631,750 $ - $ - $ -

TOTAL RESERVE
MINIMUM $ 38,337,125 $40,937,262 $42,927,159 $44,555,825 $46,939,094 $45,869,129 $46,124,100 $43,547,234 $46,257,675 $49,760,957 CIP RESERVE $ 92,385,884 $ 92,385,884 $ 92,385,884 $ 92,385,884 $ 92,385,884 $ 92,385,884 $ 92,385,884 $ 92,385,884 $ 92,385,884 $ 92,385,884

TOTAL RESERVE
TARGET $ 130,723,009 $133,323,146 $135,313,043 $136,941,709 $139,324,978 $138,255,014 $138,509,984 $135,933,118 $138,643,559 $142,146,841 City of Bakersfield – Water Department 2026-2030 Sewer Rates & Fees Report

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4. CURRENT REVENUE PROJECTIONS
The City’s analysis of revenues from current fees and rates, to support the Wastewater revenue requirement discussed in Section 3, includes:
• Sewer Service Charges and Surcharge Rates
• Sewer Connection Fees
• Miscellaneous Fees
All revenue sources were evaluated based on current fees and rates and the Total Revenue generated is discussed in this section.

4.1 Sewer Service Charge Rate and Revenue [Effective July 1, 2026]

4.1.1. Sewer User Rate and Revenue – Residential and Commercial Effective July 1, 2025, the fixed annual Sewer User Rate for residential and commercial service is $247.13.

Utilizing the current Sewer User Rate of $247.13, for approximately 106,000 residential and commercial connections, the rate model calculated the proposed annual revenue from FY 2026- 27 to FY 2035-36, which is shown in Figure 4-1. This annual revenue total assumes no increase to the current sewer user rate during the 10-year financial plan period.

Figure 4-1. Projected Sewer User Revenue at Current Rates The minor annual increase is a result of additional residential and commercial accounts as the city grows. The projected growth rate of 1.45% was determined by using data from County of Kern, Kern Council of Government, and tentative and active tract map data.

4.1.2. Commercial and Industrial User Surcharge Revenue Based on the current surcharge rate effective July 1, 2025, shown in Figure 4-3, the rate model calculated proposed annual revenue for FY 2026-27 to FY 2035-36 to be received from Commercial and Industrial Surcharge billings, which is shown in Figure 4-2. This annual revenue total assumes no increase to the current surcharge rate during the 10-year financial plan period.

The minor annual increase is a result of additional commercial accounts as the city grows.

Figure 4-2. Projected Commercial and Industrial User Surcharge Revenue FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 FY 2035-36

TOTAL SEWER
USER REVENUE $ 32,450,088 $ 33,248,259 $ 33,834,238 $ 34,288,960 $ 34,901,917 $ 35,453,136 $ 35,992,769 $ 36,560,705 $ 37,113,635 $ 37,667,134 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 FY 2035-36 TOTAL

SURCHARGE

REVENUE
$ 5,640,922 $ 5,515,294 $ 5,505,599 $ 5,553,939 $ 5,524,944 $ 5,528,161 $ 5,535,681 $ 5,529,595 $ 5,531,146 $ 5,532,141 City of Bakersfield – Water Department 2026-2030 Sewer Rates & Fees Report

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Figure 4-3. Current Sewer User and Surcharge Rates

4.1.3. Agreements Revenue – ENCSD, KSA, CSA71
Based on the current Sewer User and Surcharge Rates shown in Figure 4-3, the rate model calculated the projected annual revenue from user agency agreementsfor FY 2026-27 to FY 2035- 36, which is shown in Figure 4-4.

Figure 4-4. Projected Agreement Revenue

The revenue identified in Figure 4-4 for ENCSD and KSA is the typical revenue collected based on a percentage of operations, maintenance, and minor capital projects costs at WWTP2. The CSA71 revenue is the sewer user rate paid by those that send their wastewater to the City’s system.

FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 FY 2035-36 ENCSD & KSA $ 1,077,373 $ 1,078,167 $ 1,079,227 $ 1,078,256 $ 1,078,550 $ 1,078,678 $ 1,078,495 $ 1,078,574 $ 1,078,582 $ 1,078,550 CSA71 $ 160,442 $ 161,428 $ 160,765 $ 160,878 $ 161,023 $ 160,889 $ 160,930 $ 160,947 $ 160,922 $ 160,933 TOTAL

AGREEMENT

REVENUE
$ 1,237,814 $ 1,239,595 $ 1,239,992 $ 1,239,134 $ 1,239,574 $ 1,239,567 $ 1,239,425 $ 1,239,522 $ 1,239,504 $ 1,239,484 City of Bakersfield – Water Department 2026-2030 Sewer Rates & Fees Report

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4.1.4. Sewer Service Charge Revenue Summary
In summary, the revenue generated at the current sewer service charges and feesis not sufficient to cover each customer’sshare of the O&M, debt service, capital project expenses, and minimum reserve target, based on the revenue shown in Figure 4-5.

Figure 4-5. Projected Sewer Service Charge Revenue
Rate increases are recommended in order to generate the revenue needed over the next 5 years to cover the costs for continued operations of the wastewater and storm drain. This action will ensure City continues to provide critical health and safety services to residents.

4.2 Sewer Connection Fees and Revenue [Effective October 1, 2025] New customers connecting to the City of Bakersfield sewer system are charged a one‐time fee at the time of connection to reimburse current rate payers for costs they incurred to provide capacity for future growth. Connection fees are paid prior to a customer connecting to the wastewater systems.

Connection fees vary by customer type, including Residential, Commercial, and Industrial.

Residential customers pay a flat rate per dwelling unit. Commercial customers pay based on the number of fixture units per dwelling unit or business. Industrial customers pay based on the approximate demands their wastewater will place on the wastewater system according to the volume and strength of the wastewater assumed.

Effective October 1, 2025, the Sewer Connection Fee was increased by 4.33% using the one-year change from the July 2024 ENR-CCI to the July 2025 ENR-CCI.

4.2.1. Sewer Residential and Commercial Connection Fees Figure 4-6. Residential and Commercial Connection Fee
Effective Date
Single Family
Dwelling
Multiple
Family
Dwellings
Dwellings with
14 or less
Fixture Units
Per Fixture Unit
for Commercial
09/30/2024 $5,000 $3,600 $3,181 $227
10/1/2024 $6,947 $5,002 $4,420 $278
10/1/2025 $7,248 $5,218 $4,613 $329.50
FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 FY 2035-36

TOTAL SEWER
USER REVENUE $ 32,450,088 $ 33,248,259 $ 33,834,238 $ 34,288,960 $ 34,901,917 $ 35,453,136 $ 35,992,769 $ 36,560,705 $ 37,113,635 $ 37,667,134 TOTAL

SURCHARGE

REVENUE
$ 5,640,922 $ 5,515,294 $ 5,505,599 $ 5,553,939 $ 5,524,944 $ 5,528,161 $ 5,535,681 $ 5,529,595 $ 5,531,146 $ 5,532,141 TOTAL

AGREEMENT

REVENUE
$ 1,237,814 $ 1,239,595 $ 1,239,992 $ 1,239,134 $ 1,239,574 $ 1,239,567 $ 1,239,425 $ 1,239,522 $ 1,239,504 $ 1,239,484

TOTAL SERVICE
CHARGE

REVENUE
$ 39,328,825 $ 40,003,148 $ 40,579,829 $ 41,082,032 $ 41,666,434 $ 42,220,863 $ 42,767,874 $ 43,329,822 $ 43,884,284 $ 44,438,758 City of Bakersfield – Water Department 2026-2030 Sewer Rates & Fees Report

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Commercial connection fees rely on the number of fixture units per customer. The commercial sewer connection fees identified in Figure 4-6 were divided by the assumed number of fixture units per Equivalent Dwelling Unit [EDU], 22.

4.2.2. Industrial User Connection Fee
Industrial User [IU] connection fees are calculated according to the projected level of flow and wastewater loading a customer will discharge to the City’s sewer system. The City of Bakersfield currently only has 19 IU connections and the staff is not aware of any future IU planning to come into City. Therefore, revenue collected for the IU Connection Fee is not part of the revenue projections in the 10-year wastewater financial model. However, City does have set rates that are used to calculate the connection fee, based on flow, BOD, and TSS, for IUs. The current 2025 Industrial Connection fees are shown in Figure 4-7.

Figure 4-7. Industrial User Connection Fee
Flow $28/gallons per day
Biochemical Oxygen Demand [BOD] $1,500/ pounds per day
Total Suspended Solids [TSS] $769/ pounds per day

4.2.3. Sewer Connection Fee Revenue Analysis
Revenue generated by sewer connection fees is used to recover growth’s fair share of the costs of existing facilities that were funded by rate payers and that provide capacity for growth.

Connection fees can also be used to recover growth’s fair share of the costs of future capital improvements that are identified in a facilities master plan or similar capital improvement plan.

The combination of the existing and future facilities comprises the facilities that will be needed to serve existing and future customers within the foreseeable planning horizon.

To determine a reasonable projection of sewer connection revenue, during the 10-year financial plan period, staff prepared a thorough analysis, specifically associated with active tentative tracts and vested fees. Even though the current sewer connection fee is $7,248 per single-family dwelling, the previous 5-year average fee collected, based on historical data, is approximately $3,726. The future projected connection fee per single-family dwelling collected for FY 2026-27 through FY 2029-30 is projected to be $3,925. These lower connection fee values are due to the timing of when the connection fee was calculated. In some cases, there are active tentative tracts that have vested fees as far back as 2005 and 2006, when connection fees were much lower than current fees, as shown in Figure 4-8.

City of Bakersfield – Water Department 2026-2030 Sewer Rates & Fees Report

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Figure 4-8. Historical and Current Sewer Connection Fee In addition to the fee, the analysis also included a growth component to estimate how many single-family homes, multi-family communities, and commercial business are going to be constructed annually. Based on historical data and conversations with Development Services staff, and discussed above in section 4.1.1, this analysis determined the projected growth rate to be approximately 1.45%.

The historical and current conditions, approach, and assumptions are incorporated into the 2026- 2035 SEWER CONNECTION REVENUE ANALYSIS, which is attached as Exhibit B. There are a number of assumptions in this report and the revenue could be impacted drastically based on unknowns associated with vesting tract and phased development; City and County growth and annexations; and State Assembly Bills, State Senate Bills, City Council and Planning Commission policies, which all have the ability to extend vesting tract maps and fees. Ultimately, the analysis projected the annual connection revenue that is shown below in Figure 4.9.

Figure 4-9. Projected Sewer Connection Revenue

4.3 Miscellaneous Fees and Revenue

4.3.1. Non-Operating Fees
City receives additional sources of revenue separate from the revenue generated by sewer service charges, sewer surcharge and connection fees. These include industrial discharge permit fees, septage hauler disposal fees, pretreatment annual fees, and rental income for use of the City’s Wastewater Farm.

Commercial and industrial discharge permit fees apply to permitted users to recover the costs for lab work and additional services incurred by environmental compliance inspections. Industrial users will also be charged for violating or exceeding their allowable capacity.

Effective Date SFD Fee Effective Date SFD Fee
9/15/1997 $1,500 2011 No Increase
1998 No Increase 2012 No Increase
7/1/1999 $2,000 2013 No Increase
7/1/2000 $2,100 2014 No Increase
2001 No Increase 2015 No Increase
7/1/2002 $2,300 2016 No Increase
7/1/2003 $2,400 7/1/2017 $4,200
7/1/2004 $2,500 7/1/2018 $4,400
2005 No Increase 7/1/2019 $4,600
7/1/2006 $2,800 7/1/2020 $4,800
7/1/2007 $3,100 7/1/2021 $5,000
7/1/2008 $3,400 2022 No Increase
2009 No Increase 2023 No Increase
7/1/2010 $4,000 10/1/2024 $6,947
10/1/2025 $7,248
FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 FY 2035-36 SEWER

CONNECTION

REVENUE
$ 8,088,050 $ 8,512,458 $ 8,937,329 $ 9,362,669 $ 15,926,602 $ 23,030,145 $ 24,836,532 $ 26,742,328 $ 28,752,338 $ 30,871,583 City of Bakersfield – Water Department 2026-2030 Sewer Rates & Fees Report

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Figure 4-10. Non-Operating Commercial and Industrial User Fees The City allows septage haulers to dispose of grease and septage waste at either treatment plant and bill each hauler based on truck capacity.

Figure 4-11. Non-Operating Septage and Grease Fees
The Wastewater Pretreatment Unit works with Commercial and Industrial Users to ensure they are following their permit requirements and requirements set in the City’s Municipal Code.

Annual and inspection fees are collected along with violation fees to fund this unit.

Figure 4-12. Non-Operating Pretreatment Fees
The Wastewater enterprise has over 5,000 acres of land that are used to dispose of biosolids and effluent. The City has lease agreements with a local farmer that operates and maintains the farm fields in compliance with the City’s waste discharge permit and environmental regulations.

City anticipates collecting approximately $2.5 to $3.0 million annually in Non-Operating Revenues during this 10-year period, as shown in Figure 4-13.

Figure 4-13. Non-Operating Revenue

4.4 Total Projected Annual Revenue [without recommended rate increase] The annual revenue discussed above, based on the current rates for sewer service charges, connection fees, and non-operational fees, has been compiled and is shown in Figure 4-14.

FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 FY 2035-36 NONOPERATING

REVENUE
$ 2,670,729 $ 2,692,410 $ 2,714,308 $ 2,736,425 $ 2,758,763 $ 2,781,324 $ 2,804,111 $ 2,827,125 $ 2,850,370 $ 2,850,370 City of Bakersfield – Water Department 2026-2030 Sewer Rates & Fees Report

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Figure 4-14. Total Wastewater Revenue [without increase]

4.5 Sewer Enterprise Fund Balance [without recommended rate increase] Fund Balance as of June 30, 2026 is estimated to be $48 million. This fund balance total includes revenue from all revenue sources including sewer service charges, collection fees, and nonoperating fees. This fund balance will be added to as revenue is collected throughout the fiscal year. Any balance left at the end of FY 2026-27 will become the starting fund balance for FY 2027-28, and so on and so forth.

The total annual revenue requirement, also referred to as total expenses, that was identified and discussed in Section 3, is included in Figure 4-15 to determine if the current revenue collected based on the current rates and fees can maintain a balanced 10-year financial plan.

Figure 4-15. Annual Fund Balance [without Increase]
Based on the total expenses anticipated to ensure the wastewater systems continue to operate efficiently and to provide services to the residents of Bakersfield, without increases to the sewer services charges and fees, the City’s Sewer Enterprise Fund will generate a negative fund balance in FY 2027-28.

It must be noted that Figure 4-14 does not account for the Minimum Reserves, discussed in Section 3, that are needed to ensure funds are available to cover 9 months of O&M costs and the current debt service payments. Taking this into account, the Sewer Enterprise Fund would not be able to meet even the Minimum Reserves requirement at the end of FY 2026-27.

FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 FY 2035-36

TOTAL SERVICE
CHARGE

REVENUE
$ 39,328,825 $ 40,003,148 $ 40,579,829 $ 41,082,032 $ 41,666,434 $ 42,220,863 $ 42,767,874 $ 43,329,822 $ 43,884,284 $ 44,438,758 TOTAL

CONNECTION

REVENUE
$ 8,088,050 $ 8,512,458 $ 8,937,329 $ 9,362,669 $ 15,926,602 $ 23,030,145 $ 24,836,532 $ 26,742,328 $ 28,752,338 $ 30,871,583 TOTAL NONOPERATING

REVENUE
$ 2,670,729 $ 2,692,410 $ 2,714,308 $ 2,736,425 $ 2,758,763 $ 2,781,324 $ 2,804,111 $ 2,827,125 $ 2,850,370 $ 2,850,370 TOTAL
REVENUE $ 50,087,605 $ 51,208,016 $ 52,231,466 $ 53,181,125 $ 60,351,799 $ 68,032,332 $ 70,408,517 $ 72,899,276 $ 75,486,993 $ 78,160,712 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 FY 2035-36

STARTING FUND
BALANCE $48,686,111 $18,307,965 ($17,962,773) ($95,042,998) ($134,353,375) ($177,796,513) ($318,537,036) ($518,038,091) ($642,606,522) ($801,783,423) TOTAL REVENUE $50,087,605 $51,208,016 $52,231,466 $53,181,125 $60,351,799 $68,032,332 $70,408,517 $72,899,276 $75,486,993 $78,160,712 TOTAL EXPENSES ($80,465,750) ($87,478,754) ($129,311,690) ($92,491,503) ($103,794,937) ($208,772,854) ($269,909,572) ($197,467,707) ($234,663,893) ($237,572,884) TOTAL

AVAILABLE

FUND BALANCE
$18,307,965 ($17,962,773) ($95,042,998) ($134,353,375) ($177,796,513) ($318,537,036) ($518,038,091) ($642,606,522) ($801,783,423) ($961,195,595) City of Bakersfield – Water Department 2026-2030 Sewer Rates & Fees Report

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5. RECOMMENDED RATES AND BOND
As stated in Section 2 of this report, the City Council authorized Water staff to begin the Proposition 218 process for the recommended rates, including the sewer user rate, commercial surcharge rates, and industrial user rates, which were presented during the February 11, 2026, Council meeting. The recommended sewer user rate is summarized below:
• Year 1 – 2026-27 $475 annual rate which equates to $39.58 monthly • Year 2 – 2027-28 $575 annual rate which equates to $47.92 monthly • Year 3 – 2028-29 $675 annual rate which equates to $56.25 monthly • Year 4 – 2029-30 $775 annual rate which equates to $64.58 monthly • Year 5 – 2030-31 $875 annual rate which equates to $72.92 monthly Once the recommended rates were authorized by the Council, Water staff were able to finalize the 5-year rate model and 10-year financial plan because the sewer user rate revenue was able to be calculated. The financial plan and rate model were then provided to HF&H so that they would be able to prepare the 2026 RECOMMENDED SEWER RATE COST OF SERVICE ANALYSIS.

As part of the sewer user rate evaluation, Council requested Water staff include a Bond option to reduce the amount of sewer user rate increase. The bond amount proposed, to ensure the enterprise can meet the revenue requirement, is $150 million, which is included in the department revenue and debt service sections below.

5.1 Sewer Service Charge Recommended Rate and Revenue
Based on the cost of service rates determined as part of the 2026 RECOMMENDED SEWER RATE COST OF SERVICE ANALYSIS, additional revenue will be generated. To determine the additional service charge revenue amount starting FY 2026-27 through FY 2035-36, utilizing the 5-year rate model, the recommend rate of $475 increasing by $100 annually to $875 was inputted. The additional revenue generated and total revenue are shown in Figure 5-1.

Figure 5-1. Recommended Rate Service Charge Revenue

5.1.1. KSA and ENCSD Revenue
The revenue identified in Figure 4-4 is the typical revenue collected from KSA and ENCSD based on a percentage of the operations, maintenance, and CIP costs at WWTP2. The CIP projects, in this case, would be considered minor infrastructure improvements. With the major

SERVICE CHARGE
REVENUE @ $247 $39,328,825 $40,003,148 $40,579,829 $41,082,032 $41,666,434 $42,220,863 $42,767,874 $43,329,822 $43,884,284 $44,438,758

ADDITIONAL

SERVICE CHARGE
REVENUE @

RECOMMENDED
RATE
$32,192,390 $48,059,617 $64,288,486 $80,812,415 $97,914,048 $103,460,062 $109,227,535 $115,282,504 $121,560,869 $128,123,537

TOTAL SERVICE
CHARGE

REVENUE
$71,521,215 $88,062,764 $104,868,316 $121,894,447 $139,580,482 $145,680,925 $151,995,410 $158,612,326 $165,445,154 $172,562,295 City of Bakersfield – Water Department 2026-2030 Sewer Rates & Fees Report

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infrastructure upgrade project that is anticipated for WWTP 2, KSA and ENCSD will need to pay a percentage of those costs as well. KSA currently pays approximately 4% of the annual O&M and CIP costs, whereas ENCSD currently pays 18% of those costs.

Since ENCSD does have the option to send some of their flows to KSA, they may choose to do this to reduce the percentage of the O&M and major infrastructure costs they would have to pay.

Based on this option, Water staff has assumed that ENCSD would remove half of their flow from the City’s system so their percentage and ultimately their cost would be reduced by half. Based on this assumption, KSA would continue to pay 4% and ENCSD would pay 9% for a total of 13%.

The amount to be paid by each agency is shown in Figure 5-2.

Figure 5-2. User Agencies Proportional WWTP 2 Costs
Water staff acknowledge that the proportional share that the user agencies are to pay for the major infrastructure project in 2031 through 2033 is significant. To assist the user agencies, Water staff propose a more levelized payment plan and have spread those amounts over 10 years. The agencies and City will need to enter into some type of reimbursement agreement but for the sake of this report, revenue generated from the user agencies in FY 2030-2031 and FY 2032-2033 as shown in Figure 5-2 will be budgeted over 10 years as identified in Figure 5-3.

Figure 5-3. User Agencies Revenue

5.2 Enterprise Revenue
With the recommended sewer rate increases and the need to generate significant revenue to cover the costs of the upcoming major infrastructure projects, the enterprise fund balance will grow, which will ensure the fund is sustainable for the future. With the growth of the fund, it is assumed that the fund will earn 2% interest on the earnings. This amount would be accounted for as revenue and is shown in Figure 5-4.

FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 FY 2035-36 WWTP 2 MAJOR
UPGRADE COST $ 1,000,000 $ 2,000,000 $ 10,000,000 $ 9,000,000 $ 25,000,000 $ 87,500,000 $ 91,500,000 $ - $ - $ - KSA [4%]

PROPORTIONAL
COST
$ 40,000 $ 80,000 $ 400,000 $ 360,000 $ 1,000,000 $ 3,500,000 $ 3,660,000 $ - $ - $ - ENCSD [9%]

PROPORTIONAL
COST
$ 90,000 $ 180,000 $ 900,000 $ 810,000 $ 2,250,000 $ 7,875,000 $ 8,235,000 $ - $ - $ -

TOTAL USER
AGENCY COST $ 130,000 $ 260,000 $ 1,300,000 $ 1,170,000 $ 3,250,000 $ 11,375,000 $ 11,895,000 $ - $ - $ - FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 FY 2035-36

ENCSD & KSA

MAJOR CIP

REVENUE
$ 130,000 $ 260,000 $ 1,300,000 $ 1,170,000 $ 3,250,000 $ 2,327,000 $ 2,327,000 $ 2,327,000 $ 2,327,000 $ 2,327,000 City of Bakersfield – Water Department 2026-2030 Sewer Rates & Fees Report

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Figure 5-4. Enterprise Interest Earnings Revenue

5.3 2031 Bond Revenue and Debt Service
A bond is a loan made to an organization, such as a government, local agency, or a company.

Bonds may be used by local agencies (e.g., the City of Bakersfield) to distribute the cost of longterm infrastructure over time in place of cash funding. Cash funding the necessary wastewater treatment plant assets would place the burden of financing these assets, which benefit both current and future ratepayers, all on current ratepayers. Instead of a one-time payment, agencies choose to debt-finance the assets to spread the repayment over a scheduled payback period. For utilities, the debt service is incorporated into the cost of service which is paid for by sewer user rates. In effect, debt issuances spread the cost of an investment so that both current users and future users share in paying for this expense.

As part of this sewer rates evaluation, Council requested Water staff to include a bond option in order to reduce the amount that the sewer rates needed to be increased. Water staff analyzed a variety of scenarios, determining the revenue generated from increasing the sewer rates and identifying the additional bond revenue needed to cover the revenue requirements. These rate scenarios can be found in Exhibit D, Exhibit F, and Exhibit G. Ultimately, it was determined that the bond amount needed to provide the additional revenue above what the recommended rate can generate is $150 million.

Based on the schedule of the major infrastructure capital improvement projects, shown above in Figure 3-8c., Water staff anticipates that the bond will be needed in FY 2030-2031.

Once a bond is obtained, funds are lent to City, and in return, the City promises to pay back the principal amount by a specific date, along with regular interest payments over a scheduled period of time. Typically, interest payments are calculated according to a fixed interest rate. Investors serve as the lender of the bond while the organization acts as the borrower. Based on the City obtaining a $150 million bond, the payback period and amount is reflected in Figure 5-6.

Figure 5-5. Debt Service

5.4 Total Projected Annual Revenue [with recommended rate increase] The additional revenue discussed above generated by the recommended rates for sewer service charges, enterprise interest earnings, and bond revenue, plus the sewer connection fee and miscellaneous fee revenue, which are not impacted by the recommended rate increase, has been compiled and is shown in Figure 5-5.

FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 FY 2035-36

ENTERPRISE
REVENUE $ 1,411,822 $ 2,742,865 $ 3,681,451 $ 4,645,150 $ 5,840,415 $ 6,816,993 $ 7,168,867 $ 6,925,489 $ 6,342,746 $ 5,471,439 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 FY 2035-36 2031 BOND
PAYMENTS $ - $ - $ - $ - $ - $ - $ 8,674,515 $ 8,674,515 $ 8,674,515 $ 8,674,515 City of Bakersfield – Water Department 2026-2030 Sewer Rates & Fees Report

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Figure 5‐6. Total Wastewater Revenue [with increase]
City of Bakersfield – Water Department 2026-2030 Sewer Rates & Fees Report

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6. SEWER ENTERPRISE
In summary, with the additionalrevenue generated from the various sources discussed in Section 5, the revenue requirement, which now includes debt service for a 2031 Bond, has been met.

The 10-year financial plan is fully funded, which will allow the enterprise to meet minimum reserve requirements within the 10-year planning period as shown below in Figure 6-1.

It must be noted that the 10-year Financial Plan does include an assumed escalation factor of 3% annually in the rate model starting FY 2031-32 to FY 2035-36. This cost escalation ensures that as construction costs for labor and materials increase that enterprise revenues follow suit.

However, rate increases after FY 2030-31 will require another Proposition 218 process to implement the projected inflationary increases or any newly identified rate that is needed to ensure the financial health of the sewer enterprise.

Figure 6-1. Sewer Enterprise Fund Balance
EXHIBIT A. 2026 RECOMMENDED SEWER RATE COST OF

SERVICE ANALYSIS
HF&H Consultants
590 Ygnacio Valley Rd. Suite 105
Walnut Creek, CA 94596
Phone: (925) 977-6950
Web: hfh-consultants.com
1 March 4, 2026
Kristina Budak
Water Director
City of Bakersfield
6901 McCutchen Road
Bakersfield, CA 93313
Subject: Cost-of-Service Sewer Rates for 2026
Kristina Budak:

HF&H is pleased to submit this analysis as Exhibit A to the City of Bakersfield’s 2026 Sewer Rates & Fees Report concerning FY 2026-27 through FY 2030-31 sewer rates. The report summarizes the analysis that was conducted to develop the recommended rates through FY 2030-31. We recommend a re-balancing of revenues between customer classes to realign rates with the cost of service. In addition, as detailed in the 2026 Report, the City has significant capital infrastructure planned in the next 10-15 years. Revenue increases are recommended to fund these critical projects associated with the City’s existing treatment plants and the addition of a new treatment plant. As a result, increases to total revenue are recommended from FY 2026-27 through FY 2030-31.

Since our previous communication in October 2025, the cost-of-service analysis has been revised and now reflects the City’s plan to issue debt to reduce the amount of cash funding of future capital projects. The reduction of cash funding helps reduce initial increases to rate payers over the next five years that were previously contemplated.

Thank you for the opportunity to assist the City with this study. We express our appreciation to staff for their support of our analysis.

Sincerely,

HF&H CONSULTANTS, LLC
Rick Simonson
Senior Vice President
City of Bakersfield Exhibit A 2026 Report
Final Report 1. Cost-of-Service Analysis
1 1. COST-OF-SERVICE ANALYSIS
A cost-of-service analysis is a rate-making technique that is used to derive reasonable rates. Reasonable rates are defined by the courts as not being capricious, arbitrary, or discriminatory. Rates are not capricious if there is a clear rationale supporting the analysis. Rates are not arbitrary if there is a sound basis for choosing among alternatives. Rates are not discriminatory if they allocate costs proportionately to customers.

The City’s current rates determine how much of the total revenue requirement is paid by each customer class (i.e., single-family residents, multi-family residents, commercial office buildings, restaurants, bakeries, industrial accounts, etc.). A cost-of-service analysis determines how much each class should pay based on its respective share of flow and wastewater strength (i.e., biochemical oxygen demand and total suspended solids, the standard measures of wastewater strength).

A cost-of-service analysis should be conducted periodically to account for any material changes in the loadings from each class.

1.1 Allocation of Costs to Functions
The cost-of-service analysis is a process by which projected expenses (i.e., the City’s FY 2026-27 revenue requirement) are allocated to the four functions that represent the services the City provides to customers. Three of the functions are related to the “loading” on the collection system produced by the volume and strength of wastewater; the fourth function is related to customer accounts.

The $71.5 million revenue requirement for FY 2026-27 is allocated to functional categories that represent the functions performed by the City’s facilities: customer accounts (i.e., customer service activities, which include billing), flow, Biochemical Oxygen Demand (BOD), and Total Suspended Solids (TSS). This revenue requirement reflects the City’s plan to issue debt in conjunction with cash funding future capital infrastructure projects identified in the next ten years.

Figure 1-1 shows the allocation factors that were applied to each line item of the City’s direct expenses related to the maintenance, replacement, and repair of the City’s wastewater collection and treatment facilities, as well as stormwater collection facilities. With the exception of administrative expenses and labor expenses, allocations of each expense line item were developed according to the specific City account associated with the expense. This means that expenses budgeted for the City’s treatment plants are captured in the Treatment Plant cost category below. All administrative and labor expenses were assigned to the City Operating Expenses category so that all customer accounts would pay for these expenses, regardless of the use of the wastewater system. The total allocations for each of the four functional categories are summed up at the bottom of the figure. These amounts indicate how much of the City’s revenue requirements are associated with each of the four functions.

City of Bakersfield Exhibit A 2026 Report
Final Report 1. Cost-of-Service Analysis
2 Figure 1-1. Revenue Requirement Functional Cost Allocation Allocation Factors: 1. Sewer Conveyance, 2. Sewer Treatment, 3. Customer Accounts, 4. CIP Composite (see Figure 1-2), 5. Expense Composite (from Subtotal of O&M Expenses)
The composite allocation attributed to capital expenses was derived from a multi-step process. First, the ten-year inflated Capital Improvement Program (CIP) costs for FY 2026-27 through FY 2035-36 were summarized by the three cost category allocations shown in Figure 1-2. City staff provided input on how to allocate capital project costs among the three cost categories. A ten-year average was used to capture the significant treatment plant expenses that will begin in 2031.

Figure 1-2. CIP PAYGo Allocations (FY 2026-27 through FY 2035-36) Figure 1-2 derived the percentage attributable to each of the three CIP cost category allocations. As shown in Figure 1-3, these percentages were applied to the average annual CIP pay-as-you-go (PAYGo or “cash funded”) amount, $92,385,884. The resulting average annual PAYGo components were assigned to one of three allocation types used in Figure 1-1, based on the functions each group of costs provided.

This exercise determined the amount of average annual CIP PAYGo costs to be apportioned between the four functional allocations of accounts, flow, BOD, and TSS. The CIP composite allocation is the resulting percentage of each of the four functional allocations of average annual PAYGo costs.

FY 2026-27 Alloc.

Rev. Req. Type Accts Flow BOD TSS Total Accounts Flow BOD TSS Total Sewer Conveyance Costs $5,938,751 1 0.0% 100.0% 0.0% 0.0% 100% $0 $5,938,751 $0 $0 $5,938,751 Stormwater Conveyance Costs $406,238 3 100.0% 0.0% 0.0% 0.0% 100% $406,238 $0 $0 $0 $406,238 Treatment Plant Costs $11,394,426 2 0.0% 67.7% 20.3% 12.1% 100% $0 $7,711,747 $2,308,511 $1,374,168 $11,394,426 City Operating Expenses $17,022,586 3 100% 0.0% 0.0% 0.0% 100% $17,022,586 $0 $0 $0 $17,022,586 Subtotal O&M Expenses $34,762,000 $17,428,824 $13,650,498 $2,308,511 $1,374,168 $34,762,000 Expense Composite 50.1% 39.3% 6.6% 4.0% 100.0%
City Capital Expenses
Trans. to Capital Projects Fund $92,385,884 4 2.9% 71.3% 16.2% 9.6% 100% $2,692,309 $65,851,723 $14,945,418 $8,896,434 $92,385,884 Debt Service 12,265,625 4 2.9% 71.3% 16.2% 9.6% 100% $357,445 $8,742,813 $1,984,231 $1,181,136 $12,265,625 Total $104,651,509 $3,049,754 $74,594,536 $16,929,649 $10,077,570 $104,651,509 Non-Operating Exp/(Rev)
Transfer to/(from) Cap Reserves ($46,485,210) 4 2.9% 71.3% 16.2% 9.6% 100% ($1,354,672) ($33,134,187) ($7,519,990) ($4,476,361) ($46,485,210) Transfer to/(from) Op Reserves ($18,606,354) 5 50.1% 39.3% 6.6% 4.0% 100% ($9,328,775) ($7,306,427) ($1,235,630) ($735,523) ($18,606,354) Non-Operating Revenue (2,800,729) 5 50.1% 39.3% 6.6% 4.0% 100% ($1,404,218) ($1,099,803) ($185,994) ($110,715) ($2,800,729) Subtotal Non-O&M Expenses $36,759,215 ($9,037,911) $33,054,119 $7,988,036 $4,754,971 $36,759,215 Total Expenses $71,521,215 $8,390,913 $46,704,618 $10,296,546 $6,129,139 $71,521,215 Cost Categories Allocation Factors Allocated Costs
CIP Cost Category Allocations FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 Five-Year Total Sewer Conveyance $17,853,750 $20,085,469 $27,551,639 $15,003,863 $4,602,284 $85,097,006 Stormwater Conveyance $3,363,750 $4,284,900 $0 $315,569 $4,602,284 $12,566,503 Treatment Conveyance $12,220,625 $12,618,119 $48,643,589 $21,885,138 $36,126,118 $131,493,589 Total Inflated CIP PAYGo $33,438,125 $36,988,488 $76,195,229 $37,204,570 $45,330,687 $229,157,098 CIP Cost Category Allocations FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 FY 2035-36 10-Year Total % of Total Sewer Conveyance $6,945,293 $34,033,470 $3,160,342 $10,630,599 $45,244,955 $185,111,665 17.2% Stormwater Conveyance $3,872,154 $2,226,489 $3,160,342 $6,541,907 $2,926,992 $31,294,388 2.9% Treatment Conveyance $139,646,277 $174,361,396 $133,084,045 $155,814,487 $123,052,994 $857,452,788 79.8% Total Inflated CIP PAYGo $150,463,724 $210,621,355 $139,404,729 $172,986,993 $171,224,941 $1,073,858,840 100.0% City of Bakersfield Exhibit A 2026 Report
Final Report 1. Cost-of-Service Analysis
3 Figure 1-3. Average Annual PAYGo Composite
The Expense Composite allocation in Figure 1-1 is the fifth and final allocation type and was applied to non-operating revenue and expense entries during the process of the revenue requirement allocation.

1.2 Units of Service
The units of service provided by the City to its customers are the sum of the services provided to each of the City’s customer classes.

Estimates of residential and commercial customer flow, BOD, and TSS associated with each customer class are summarized in Figure 1-4. Estimates of industrial user flow, BOD, and TSS associated with each customer are summarized in Figure 1-5. Figure 1-6 provides a summary of all three customer classes.

Figure 1-4. Summary of Customer Class Wastewater Units of Service – Residential & Commercial Avg. Annual Alloc. Allocation Factors
CIP PAYGo Allocations % of Total PAYGo Type Accts Flow BOD TSS Total Sewer Conveyance 17.2% $15,925,468 1 0% 100% 0% 0% 100% Treatment Plants 79.8% $73,768,107 2 0% 68% 20% 12% 100% Stormwater Conveyance 2.9% $2,692,309 3 100% 0% 0% 0% 100% Average Annual CIP PAYGo 100.0% $92,385,884 % of CIP Composite Expenses Allocation Factors
Accts Flow BOD TSS Total
Sewer Conveyance 17.2% $15,925,468 $0 $15,925,468 $0 $0 $15,925,468 Treatment Plants 79.8% $73,768,107 $0 $49,926,255 $14,945,418 $8,896,434 $73,768,107 Stormwater Conveyance 2.9% $2,692,309 $2,692,309 $0 $0 $0 $2,692,309 Average Annual CIP PAYGo 100.0% $92,385,884 $2,692,309 $65,851,723 $14,945,418 $8,896,434 $92,385,884 CIP Composite Allocation (to Figure 1-1) 2.9% 71.3% 16.2% 9.6% 100.0% Rate Discharge Characteristics per Acct/DU Total System-wide Units of Service Code Avg Flow BOD TSS Annual Flow Annual BOD Annual TSS Customer Class (gpd) (mg/l) (mg/l) (hcf) (lbs) (lbs) A B C D = sum E = F = G = A*D*365÷748.052 E*748.052÷1M*B*8.345 E*748.052÷1M*C*8.345 Single Family Dwelling 1 220 240 280 91,524 9,824,688 14,719,333 17,172,555 Multiple Dwelling (unit) 2 165 240 280 34,818 2,803,166 4,199,699 4,899,649 Mobile Home Park (unit) 29 165 240 280 2,328 187,425 280,800 327,600 Subtotal - Residential 12,815,279 19,199,832 22,399,804 Schools on tax roll 4 45,097 130 100 21 462,093 374,999 288,461 Hospital 5 9,611 250 100 31 145,374 226,874 90,749
Churches 6 810 150 150 216 85,391 79,957 79,957
Rest Home 7 6,992 210 100 56 191,047 250,449 119,261
Small Store or Office 11 205 150 150 1,229 123,104 115,271 115,271 Combination Store & Res 12 238 180 150 129 14,963 16,813 14,011 Large Store 13 837 150 150 226 92,275 86,404 86,404
Markets 14 2,793 800 800 59 80,413 401,583 401,583
Shopping Center w/ Dining 15 808 600 400 664 261,854 980,774 653,850 Office Bldg. 16 843 130 80 891 366,417 297,356 182,988
Mortuary 17 684 800 800 7 2,336 11,663 11,663
Food or Beverage 18 1,374 1,000 600 412 276,287 1,724,719 1,034,832 Recreational 19 775 200 250 131 49,558 61,873 77,342
Medical Lab 20 904 200 100 62 27,340 34,134 17,067
Car Wash 21 4,651 20 150 31 69,210 8,641 64,806
Service Shop 22 443 180 280 518 111,932 125,773 195,646 Petroleum 23 720 180 280 112 39,173 44,016 68,470
Sales 24 542 150 150 110 29,075 27,225 27,225 Nurseries 26 80 150 180 7 272 255 306 Hotel-Motels, RV Parks 27 2,544 310 120 167 207,338 401,235 155,317 Light & Heavy Industry 31 1,597 180 150 70 54,552 61,297 51,081 Timber & Produce Plant 33 823 180 150 1 401 451 376
Food Processing 35 21,864 180 150 5 53,340 59,935 49,946 Storage-Warehouse 36 548 180 280 392 104,894 117,864 183,345 Hotel-Motels, RV Parks w/ Rest. 37 6,193 500 600 18 54,395 169,780 203,736 Big Box Store 39 4,248 500 600 13 26,947 84,108 100,930 Subtotal - Commercial 2,929,981 5,763,452 4,274,623
Total Current Accts/Units
City of Bakersfield Exhibit A 2026 Report
Final Report 1. Cost-of-Service Analysis
4 Residential flow estimates were calculated by applying the 2022 cost-of-service study discharge characteristics per account to the current number of dwelling units. For example, Single family dwelling flow and loading estimates reflect the assumptions that each single family dwelling account discharges 220 gallons per day (gpd) of wastewater flow with a BOD concentration of 240 g/mL and a TSS concentration of 280 g/mL.

Loading characteristics used in the previous 2022 rate study were used whenever possible for nonresidential customer classes. However, flow data for non-residential customers were based on 2023 water meter readings that were used to calculate FY 2023-24 sewer charges. The 2022 cost-of-service study simplified several types of non-residential user groups such that these groups are charged on a per account basis rather than a smaller unit (e.g. students for schools, rooms for hotels, and beds for hospitals). In turn, the number of accounts/units per non-residential user group changed significantly from the previous 2022 study.

The flow (in million gallons per year) and strength concentrations (in milligrams per liter) for industrial customers were based on actual measurements for each Monitored Industrial User customer taken in 2023 and billed accordingly. The product of these concentrations multiplied by each class’s estimated flow yielded the class’s pounds of BOD and TSS.

Figure 1-5. Summary of Customer Class Wastewater Units of Service – Industrial Discharge Characteristics per Acct/DU Total System-wide Units of Service Rate Code Avg Flow BOD TSS Annual Flow Annual BOD Annual TSS Customer Class (gpd) (mg/l) (mg/l) (hcf) (lbs) (lbs) A B C D = sum E = F = G = A*D*365÷748.052 E*748.052÷1M*B*8.345 E*748.052÷1M*C*8.345 Industrial Users
Alfred Louie Inc (domestic) 271 130 80 1 132 107 66
Alfred Louie Inc (industrial) 20,333 12 7 9,921 743 434 American Yeast 4,922 886 384 1 2,402 13,284 5,757
Aramark Uniform (domestic) 784 130 80 1 383 310 191
Aramark Uniform (industrial) 20,223 1,104 442 9,867 68,003 27,226 ENSCD - Bolthouse 16,446 281 290 1 8,024 14,076 14,527
CA Water 19,868 58 8 1 9,694 3,510 484
Cintas (domestic) 1,568 130 80 1 765 621 382
Cintas (industrial) 65,430 676 295 31,925 134,722 58,792 Crystal Geyser (domestic) 628 130 80 1 306 249 153
Crystal Geyser (industrial) 79,596 117 39 38,837 28,366 9,455 Culligan 20,378 2 15 1 9,943 93 931
Dreyers Ice Cream (domestic) 26,588 130 80 1 12,973 10,528 6,479 Dreyers Ice Cream (industrial) 369,848 3,194 909 180,461 3,598,131 1,024,014 Ennis Paint (domestic) 657 130 80 1 321 260 160
Ennis Paint (industrial) 1,499 768 27 731 3,507 123
Great Change Brew 103 3,680 275 1 50 1,152 86
Heritage-Crystal Clean 969 293 79 1 473 865 233
Jimmy Ash (domestic) 184 130 80 1 90 73 45
Jimmy Ash (industrial) 2,912 770 610 1,421 6,830 5,411
Kern Oil 122,746 555 30 1 59,892 207,501 11,216
Lengthwise Brewing (domestic) 1,983 1,000 600 1 968 6,040 3,624 Lengthwise Brewing (industrial) 984 1,002 392 480 3,004 1,175 Mission Linen (domestic) 760 130 80 1 371 301 185
Mission Linen (industrial) 30,601 448 134 14,931 41,758 12,490 Sparkle Cleaners (industrial) 19,420 1,912 935 9,476 113,099 55,307 Tailored Brands (domestic) 2,325 130 80 1 1,134 921 566 Tailored Brands (industrial) 3,923 1,160 558 1,914 13,862 6,668 Temblor Brewing (domestic) 5,967 130 80 1 2,912 2,363 1,454 Temblor Brewing (industrial) 486 137 146 237 203 216
Tree Nuts LLC (domestic) 77 1,000 600 1 37 234 140
Tree Nuts LLC (industrial) 6,955 1,668 151 3,394 35,338 3,199 Backwash 3,713 240 280 0 1,812 2,714 3,167
Bulkwater Sellers 7,603 240 280 0 3,710 5,558 6,484
Subtotal - Industrial 19 419,989 4,318,325 1,260,842
Total Current
Accts/Units
City of Bakersfield Exhibit A 2026 Report
Final Report 1. Cost-of-Service Analysis
5 Figure 1-6. Summary of Customer Class Wastewater Units of Service Source: Figures 1-4 and 1-5
The number of customer accounts/dwelling units is based on the City’s most-recent billing data provided. Figure 1-7 provides a summary of users that determines how costs allocated to account functions in Figure 1-1 were allocated in the cost-of-service analysis. For each customer class, the City bills the specific unit per account according to a specified Single Family Dwelling Equivalent (SFDE) ratio.

As discussed previously, the SFDE ratio for all non-residential user groups was simplified to one SFDE per account during the 2022 study.

Figure 1-7. Current Customer Accounts Units of Service
Figure 1-8 summarizes the total number of SFDEs by customer class. One SFDE per business was assigned to each Industrial User customer. The Residential customer class includes Single Family Dwellings, Multiple Dwelling Units, and Mobil Home Park dwellings (classified per City billing records as rate codes 1, 2, and 29, respectively).

Flow BOD TSS
Customer Class Rate Codes (hcf) (lbs) (lbs)
Residential 1, 2, 29 12,815,279 19,199,832 22,399,804
Commercial 4-27, 31-57 2,929,981 5,763,452 4,274,623
Industrial N/A 419,989 4,318,325 1,260,842
Total 16,165,248 29,281,609 27,935,270
Proposed
Rate per Total
Units SFDE SFDE/Unit SFDE
Single Family Dwelling 91,524 $475.00 1.00 91,524 Multiple Dwelling 34,818 $475.00 0.75 26,114 Mobile Home Park 2,328 $475.00 0.75 1,746 Subtotal Residential 128,670 119,384 Schools 21 $475.00 1.00 21 Hospital 31 $475.00 1.00 31 Churches 216 $475.00 1.00 216 Rest Home 56 $475.00 1.00 56 Small Store or Office 1,229 $475.00 1.00 1,229 Combination Store & Res 129 $475.00 1.00 129 Large Store 226 $475.00 1.00 226 Markets 59 $475.00 1.00 59 Shopping Center w/ Dining 664 $475.00 1.00 664 Office Bldg. 891 $475.00 1.00 891 Mortuary 7 $475.00 1.00 7 Food or Beverage (Restaurant) 412 $475.00 1.00 412 Recreational 131 $475.00 1.00 131 Medical Lab 62 $475.00 1.00 62 Car Wash 31 $475.00 1.00 31 Service Shop 518 $475.00 1.00 518 Petroleum 112 $475.00 1.00 112 Sales 110 $475.00 1.00 110
Nurseries 7 $475.00 1.00 7 Hotel-Motels, RV Parks 185 $475.00 1.00 185 Light & Heavy Industry 70 $475.00 1.00 70 Timber & Produce Plant 1 $475.00 1.00 1 Food Processing 5 $475.00 1.00 5 Storage-Warehouse 392 $475.00 1.00 392 Big Box Store 13 $475.00 1.00 13 Subtotal Commercial 5,577 5,577 Total Commercial and Residential 134,247 124,960 User Group
City of Bakersfield Exhibit A 2026 Report
Final Report 1. Cost-of-Service Analysis
6 Figure 1-8. Customer Accounts Units of Service by Customer Class

1.3 Unit Costs of Service
The units of service for customer SFDE, flow, BOD, and TSS for each customer class in Figure 1-6 and Figure 1-8 are combined with the functionalized costs in Figure 1-1 to determine the unit costs in Figure 1-9. These unit costs are the costs of providing the units of service to all customer classes without exception, thereby ensuring that all customer classes pay their share in proportion to their respective units of service.

Figure 1-9. Unit Costs of Service

1.4 Revenue Requirement by Customer Class
In cost-of-service analyses, all customer classes are treated equally through the application of the same unit costs to all customers, which is the fundamental purpose of cost-of-service analysis. In this way, the cost-of-service analysis proportionally distributes the revenue requirement to each customer class without discrimination, after which rates can be designed to generate the revenue required to provide the necessary level of service to each class. Figure 1-10 shows the result of applying the unit costs from Figure 1-9 to the units of service for each customer class in Figure 1-6 and Figure 1-8 to distribute the respective shares of the revenue requirement.

Customer Class SFDE
Residential 119,384
Commercial 5,577
Industrial 19
Total SFDE 124,979
SFDEs Flow BOD TSS Total
Allocated Functional Costs a $8,390,913 $46,704,618 $10,296,546 $6,129,139 $71,521,215 (from Figure 1-1)
Units of Service b 124,979 16,165,248 29,281,609 27,935,270 (from Figures 1-6, 1-8) SFDE hcf lbs lbs
Unit Costs a/b $67.14 $2.89 $0.35 $0.22
per SFDE per hcf per lb per lb
City of Bakersfield Exhibit A 2026 Report
Final Report 1. Cost-of-Service Analysis
7 Figure 1-10. Revenue Requirement Allocations
¹Refer to Figure 1-6 for Units of Service by Customer Class for Flow, BOD, and TSS. ²Refer to Figure 1-8 for Units of Service by Customer Class for SFDEs.

The revenue requirement allocations are compared with the current revenue at current rates in Figure 1-11. A difference greater than or less than 0% indicates whether current rates of each customer class would result in paying more or less, respectively, than its share of the FY 2026-27 cost of service.

Figure 1-11. Current Revenue Compared with Cost-of-Service (by Customer Class) Functional Allocations
SFDEs Flow BOD TSS Total
a b c d e
1 Unit Cost of Service $67.14 $2.89 $0.35 $0.22
2 per SFDE per hcf per lb per lb
3 Units of Service by Customer Class 1, 2
4 Residential 119,384 12,815,279 19,199,832 22,399,804
5 Commercial 5,577 2,929,981 5,763,452 4,274,623
6 Industrial 19 419,989 4,318,325 1,260,842
7 124,979 16,165,248 29,281,609 27,935,270
8 9 Cost of Service by Customer Class
10 Residential $8,015,239 $37,025,890 $6,751,404 $4,914,630 $56,707,163 11 Commercial $374,398 $8,465,297 $2,026,653 $937,874 $11,804,221 12 Industrial $1,276 $1,213,431 $1,518,490 $276,635 $3,009,832 13 $8,390,913 $46,704,618 $10,296,546 $6,129,139 $71,521,215 Cost Current
Customer Classes of Service Revenue $ Change % Change
a b c=a-b d=c/b
1 Residential $56,707,163 $29,913,347 $26,793,816 90%
2 Commercial $11,804,221 $6,478,731 $5,325,490 82%
3 Industrial $3,009,832 $1,558,984 $1,450,847 93%
4 Total $71,521,215 $37,951,062 $33,570,153 88%
City of Bakersfield Exhibit A 2026 Report
Final Report 2. Rate Design
8 2. RATE DESIGN

2.1 Rate Design
After the share of the revenue requirement for each customer class is determined in the cost-of-service analysis, rates are designed to ensure that rates for each customer class generate its respective share of the cost of service.

The City’s present rate structures collect rate revenues via the tax roll and/or on a monthly basis.

Residential customer rates are designed to generate their respective share of the cost of service through collection of fixed sewer service charges solely via the tax roll. Commercial customers rates are designed to generate sufficient revenues to cover their respective share of the cost of service through annual tax roll collection, to cover fixed sewer service charges and a minimum level of wastewater discharge, and through monthly billing for those commercial customers who discharge more than the minimum level of discharge. The commercial tax roll charge covers the fixed sewer service charge based on a ratio that reflects their theoretical discharge versus that of a typical single-family residence. Again, commercial customers who discharge more than their allotted discharge volume pay an additional sewer surcharge.

Comparison of actual water use to annualized winter water use serves as a proxy; commercial wastewater discharge is not metered, and their flows are not sampled for BOD and TSS concentrations.

Industrial user charges are structured similarly to commercial customers. Customers pay a fixed annual sewer service charge via the tax roll and all surcharge revenues are collected monthly according to metered flow, BOD, and TSS.

The following analysis and proposed rates maintain the overarching structure of current rates.

2.1.1. Calculation of FY 2026-27 Fixed Sewer Service Charge Rate As shown in Figure 2-1, The fixed annual service charge is the result of applying the unit costs from Figure 1-9 to the residential units of service in Figure 1-6 and Figure 1-8. The FY 2026-27 fixed sewer service charge, per SFDE, would increase from $247.13 to $475.00 per year to meet the cost of service.

Figure 2-1. FY 2026-27 Calculation of Fixed Service Charge Rate per SFDE 1Unit Costs derived in Figure 1-9.

Totals may vary slightly due to rounding.

SFDE Flow BOD TSS
Single Family 1 220 240 280
Characteristics
Annualize 1 107 161 188
hcf/yr lbs/yr lbs/yr
Unit Costs¹ $67.14 $2.89 $0.35 $0.22
Annual Cost per SFDE $67.14 $310.14 $56.55 $41.17
Fixed Service Charge per SFDE $475.00
City of Bakersfield Exhibit A 2026 Report
Final Report 2. Rate Design
9 2.1.2. Calculation of FY 2026-27 Commercial Sewer Surcharge Rates The Commercial cost of service shown in Figure 1-10 is $11,804,221. After collection of the fixed service charge revenues, revenues from commercial surcharges comprise the remainder of the commercial cost of service, identified in Figure 1-10. Figure 2-2 calculates the remainder of the cost of service ($9,155,384, see line 8) to be made up by the commercial surcharge rate revenues once the revised fixed service revenues are accounted for. The unit rates specific to the commercial surcharge are calculated from the cost of service attributable to each of the flow functions.

Figure 2-2. Commercial Surcharge Cost of Service
¹Flat rate revenue of $2,648,838 collected from the SFDE charge assessed to commercial parcels reduces the surcharge cost of service. This flat rate revenue is allocated based on line 4 percentages to calculate the surcharge cost of service on line 8.

Totals may vary slightly due to rounding.

Commercial customers are classified into user groups which reflect the BOD and TSS concentrations expected from such activities of that customer class (i.e., retail, restaurants, hospitals, etc.). The BOD and TSS concentrations for the City’s commercial customer classes are based on State guidelines1. The City charges each user group a specific surcharge rate based on one of four user group designations.

Each user group is classified according to low, medium, medium-high, or high strength according to the wastewater characteristics defined. The definitions between each user group are based on the combined BOD and TSS concentrations. Figure 2-3 lays out how each user group is classified. There are no proposed changes to the existing surcharge user group designations.

Figure 2-4 calculates the unit surcharge rates. All calculated wastewater discharge2 exceeding 107 HCF in a given year would be billed according to the surcharge rate assigned to a customer’s assigned user group. The cost to collect and treat a commercial customer’s initial wastewater volume of 107 HCF and treat 161 pounds of BOD and 188 pounds of TSS is accounted for by the fixed service charge. Any additional wastewater discharged beyond this allotted volume will be billed at the surcharge rate corresponding to the wastewater effluent strength user group. 1 State Water Resources Control Board. Revenue Program Guidelines. Appendix G. 2 Each commercial customer is assigned a returned flow percentage that modifies the amount of metered water consumption counted as wastewater discharge.

Functional Allocations
Accounts Flow BOD TSS Total
1 Commercial Costs of Service $374,398 $8,465,297 $2,026,653 $937,874 $11,804,221 2 ($374,398) ($374,398)
3 Flow-Related Expenses Only $0 $8,465,297 $2,026,653 $937,874 $11,429,823 4 Proportionate Share of Flow-Related Expenses 74.1% 17.7% 8.2% 5 Reallocated Account Component ($374,398) $277,292 $66,386 $30,721 $0 6 Adjusted Cost of Service $8,742,588 $2,093,038 $968,595 $11,804,221 7 (less Other Flat Rate Revenue)¹ ($1,961,815) ($469,672) ($217,350) ($2,648,838) 8 Surcharge Cost of Service a $6,780,773 $1,623,366 $751,245 $9,155,384 9 Units of Service by Customer Class Flow (HCF) BOD (lbs) TSS (lbs) 10 Commercial Surcharge - Total b 2,368,943 4,784,019 3,151,100 11 Surcharge Unit Rates c=a/b $2.86 $0.34 $0.24
12 per HCF per lb per lb
City of Bakersfield Exhibit A 2026 Report
Final Report 2. Rate Design
10 Figure 2-3. Strength Classification of Commercial User Groups BOD TSS Combined Strength
User Group (mg/L) (mg/L) Loading Classification
Schools 130 100 230 low
Churches 150 150 300 low
Small Store 150 150 300 low
Combination Store & Residence 180 150 330 low
Large Store 150 150 300 low
Office Bldg. 130 80 210 low
Car Wash 20 150 170 low
Sales 150 150 300 low
Nurseries 150 180 330 low
Laundromat 180 150 330 low
Hospital 250 100 350 low
Nursing Home 210 100 310 low
Medical Lab 200 100 300 low
Service Shop 180 280 460 low
Light & Heavy Industry 180 150 330 low
Timber & Produce Plant 180 150 330 low
Food Processing 180 150 330 low
OS - Commercial/Industrial 180 150 330 low
Recreational 200 250 450 medium
Storage-Warehouse 180 280 460 medium
Petroleum 180 280 460 medium
Hotel-Motels, RV Parks without restaurant 310 120 430 medium Big Box Store 500 600 1,100 medium-high
Shopping Center w/ Dining 600 400 1,000 medium-high
Hotel-Motels, RV Parks (w/ restaurant) 500 600 1,100 medium-high Mortuary 800 800 1,600 high
Food or Beverage 1,000 600 1,600 high
Markets (Grocery Store) 800 800 1,600 high
City of Bakersfield Exhibit A 2026 Report
Final Report 2. Rate Design
11 Figure 2-4. Surcharge Rate Calculations
¹Accounts for units of service for additional wastewater discharged beyond the allotted volume per account. Thus units of service are less than those shown in Figure 1-5.

Totals may vary slightly due to rounding.

Figure 2-5 summarizes the changes for each of the commercial user groups, comparing current surcharge rates to proposed surcharge rates.

Surcharge Functional Allocations
Flow BOD TSS Total
Surcharge Costs of Service
(Figure 2-2, row 8) $6,780,773 $1,623,366 $751,245 $9,155,384 Units of Service by Strength¹
Low Strength 1,583,650 1,273,730 834,243
Medium Strength 261,440 493,194 330,711
Medium High Strength 216,128 956,004 627,754
High Strength 307,724 2,061,092 1,358,391
Total Commercial 2,368,943 4,784,019 3,151,100
Surcharge Unit Costs $2.86 $0.34 $0.24
(Figure 2-2, row 11) per HCF per lb per lb
Cost of Service - Commercial Surcharge
Low Strength $4,532,981 $432,216 $198,889 $5,164,087
Medium Strength $748,335 $167,356 $78,844 $994,535
Medium High Strength $618,638 $324,402 $149,661 $1,092,700 High Strength $880,819 $699,392 $323,850 $1,904,061
Total Commercial $6,780,773 $1,623,366 $751,245 $9,155,384 COS Surcharge Surcharge
Surcharge Flow Rate
Low Strength $5,164,087 1,583,650 $3.26 per HCF
Medium Strength $994,535 261,440 $3.80 per HCF
Medium High Strength $1,092,700 216,128 $5.06 per HCF
High Strength $1,904,061 307,724 $6.19 per HCF
City of Bakersfield Exhibit A 2026 Report
Final Report 2. Rate Design
12 Figure 2-5. Current and Proposed FY 2026-27 Commercial Surcharge Rates

2.1.3. Calculation of FY 2026-27 Industrial User Sewer Charges Industrial customers are billed based on BOD and TSS concentration sampling data for each customer.

With this data, it is possible to bill each industrial customer using the cost-of-service per-unit costs for flow, BOD and TSS from Figure 1-9, instead of developing aggregate rates per HCF, as is done for the commercial customers. Figure 2-6 summarizes the proposed rates for Industrial customers. As a customer class, revenues from proposed rates, designed to meet the cost of service, would be required to increase 93% more than existing revenues collected. This percentage change is cited in Figure 1-11.

Current Proposed Change Strength
User Group Surcharge Surcharge in Rate % Difference Classification Schools $1.89 $3.26 $1.37 72.1% low
Churches $1.89 $3.26 $1.37 72.1% low
Small Store $1.89 $3.26 $1.37 72.1% low
Combination Store & Residence $1.89 $3.26 $1.37 72.1% low Large Store $1.89 $3.26 $1.37 72.1% low
Office Bldg. $1.89 $3.26 $1.37 72.1% low
Car Wash $1.89 $3.26 $1.37 72.1% low
Sales $1.89 $3.26 $1.37 72.1% low
Nurseries $1.89 $3.26 $1.37 72.1% low
Laundromat $1.89 $3.26 $1.37 72.1% low
Hospital $1.89 $3.26 $1.37 72.1% low
Nursing Home $1.89 $3.26 $1.37 72.1% low
Medical Lab $1.89 $3.26 $1.37 72.1% low
Service Shop $1.89 $3.26 $1.37 72.1% low
Light & Heavy Industry $1.89 $3.26 $1.37 72.1% low
Timber & Produce Plant $1.89 $3.26 $1.37 72.1% low
Food Processing $1.89 $3.26 $1.37 72.1% low
OS - Commercial/Industrial $1.89 $3.26 $1.37 72.1% low
Recreational $2.08 $3.80 $1.72 83.0% medium
Storage-Warehouse $2.08 $3.80 $1.72 83.0% medium
Petroleum $2.08 $3.80 $1.72 83.0% medium
Hotel-Motels, RV Parks without restaurant $2.08 $3.80 $1.72 83.0% medium Big Box Store $2.68 $5.06 $2.38 89.1% medium high
Shopping Center w/ Dining $2.68 $5.06 $2.38 89.1% medium high Hotel-Motels, RV Parks (w/ restaurant) $2.68 $5.06 $2.38 89.1% medium high Mortuary $3.47 $6.19 $2.72 78.5% high
Food or Beverage $3.47 $6.19 $2.72 78.5% high
Markets (Grocery Store) $3.47 $6.19 $2.72 78.5% high
City of Bakersfield Exhibit A 2026 Report
Final Report 2. Rate Design
13 Figure 2-6. Current and FY 2026-27 Industrial User Sewer Rates Totals may vary slightly due to rounding.

2.2. Neighboring Agency Comparison
Based on available sources, Figure 2-7 shows the recent charges for sewer service among various Central California agencies. Figure 2-7 indicates that the City’s current sewer rates are currently the lowest single family residential rates in this comparison. The proposed rates account for the capital investment the City plans to make into its treatment plants to continue to serve a growing population.

Figure 2-7. Comparison of Annual Residential Bills
Flow BOD TSS
Unit Cost of Service $2.89 $0.35 $0.22
per hcf per lb per lb
Proposed Rates $3,862.30 $351.64 $219.41
$/MG $/1,000 lbs $/1,000 lbs
Current $2,150.60 $169.92 $102.25
$ Difference $1,711.69 $181.72 $117.15
EXHIBIT B. SEWER CONNECTION REVENUE ANALYSIS

WATER DEPARTMENT
Wastewater Division
2026-2035 SEWER CONNECTION

REVENUE ANALYSIS

CITY OF BAKERSFIELD

SEWER CONNECTION REVENUE ANALYSIS
The sewer connection fee is the one-time cost for a developer to connect a single-family dwelling [SFD], apartment complex, commercial or industrial building to the City’s sewer and storm drain systems, which includes:
• storm drain collections,
• sump maintenance,
• sewer collections, and
• wastewater treatment.

The revenue generated from this connection is to pay for growth related projects, like expansion of the treatment plants or sewer and storm collection systems. It is not used to support the operations and maintenance of the sewer and storm drain systems.

SEWER CONNECTION FEE DEVELOPMENT
The sewer connection fee must be reasonable and related to facilities that benefit growth.

Industry standard practices to determine the fee include:
• Deriving the cost of City facilities [assets, debt service, future growth CIP] • Determine capacity of facilities
• Identify existing connections
• Calculate unit cost of capacity
The City has always taken actions to ensure they remain developer friendly. The benefit to this approach is to encourage development and facilitate growth within City; however, at times, decisions were made that resulted in the fees not generating enough revenue to cover the cost of services for this growth.

In 2010, the City completed a $238 million expansion of Wastewater Treatment Plant 3 [WWTP3], to expand the plant from 16 MGD to 32 MGD. This expansion was needed to be able to provide capacity for future connections to the sewer collection and treatment systems. Upon completion of the plant expansion, the sewer connection fee was set at $4000 per connection from July 2010 through June 2016. This fee only generated approximately half of the revenue needed to pay the $12.5 million annual debt service fee associated with the bond that was obtained for the WWTP3 Expansion.

In 2017, staff evaluated the sewer connection fee and recommended that based on their assessment of cost to provide service for growth, the fee should be increased to $5,377 per connection. City opted to phase the increase over five-years by increasing the fee by $200/year with the 5th year being capped at $5,000, shown in Exhibit B. Again, the revenue generated would not cover the cost for growth based on the evaluation.

In 2022, Public Works – Wastewater hired HF&H to evaluate the wastewater collections and treatment systems to determine the reasonable sewer connection fee based on:
• Identify facilities that benefit growth
• Value of current facilities
• Capacity of facilities
HF&H determined the sewer connection fee should be $6,399.

In 2024, Water Department escalated the $6,399 fee, that was calculated in 2022, by 2-years of Construction Cost Index [CCI], using the Engineering News-Record [ENR]. This resulted in a 2024 fee of $6,947. In September 2024, staff met with Kern County Home Builders Association [KC-HBA] to advise them of the proposed increase to the sewer connection fee.

KC-HBA requested that moving forward, the fee should be increased annually by a CCI instead of large increases spaced out over years. The proposed fee was approved by City Council through a public hearing process and took effect October 1, 2024.

In September 2025, staff once again met with KC-HBA to advise them of the proposed annual increase to the sewer connection fee. The sewer connection fee was increased by CCI, which was determined to be 4.33% based on the July 2024 to June 2025 ENR range. This resulted in the proposed sewer connection fee being $7,248. The proposed fee was approved by City Council through a public hearing process and took effect October 1, 2025.

Per direction and guidance from KC-HBA in 2024, Water staff plan to continue increasing the sewer connection fee by CCI annually to ensure that the fee continues to generate the revenue needed to pay for the growth of the system.

Previous and Current Residential Sewer Connection Fees
To estimate sewer connection revenue, that could be collected over the next 10 years, historical and current development tract data needs to be analyzed and assumptions have to be made.

Effective Date SFD Fee
9/15/1997 $1,500
7/1/1999 $2,000
7/1/2000 $2,100
7/1/2002 $2,300
7/1/2003 $2,400
7/1/2004 $2,500
7/1/2005 $2,500
7/1/2006 $2,800
7/1/2007 $3,100
7/1/2008 $3,400
7/1/2009 $3,400
7/1/2010 - 6/31/2016 $4,000
7/1/2016 $4,000
7/1/2017 $4,200
7/1/2018 $4,200
7/1/2019 $4,600
7/1/2020 $4,800
7/1/2021 $5,000
7/1/2022 $5,000
7/1/2023 $5,000
10/1/2024 $6,947
10/1/2025 $7,248
The focus of this exercise is to determine the projected sewer connection revenue based on development tracts that are currently Active tentative and Active/Recorded and the fee that the developer will pay at the time of connection.

ACTIVE TENTATIVE TRACTS AND RATES OVERVIEW
The sewer connection fee is set on the date that a developer application is deemed complete and accepted by the Development Services [DS] - Planning [aka. Accepted tentative tract] but is not paid until the time the developer applies for a building permit to begin construction. Accepted tentative tracts are considered vested tracts, which means the developer is assured that the rights granted will not be affected by future changes in laws or regulations, provided the development proceeds within a specified time frame. Vesting fees are one of these granted rights, which includes the sewer connection fee.

When the Accepted tentative tract is conditionally approved by the Planning Commission it becomes an Active tentative tract and an Active date is set. For clarity, the Accepted tentative tract date sets the date for the vesting rights and the Active tentative tract date sets the date for extensions and expirations.

As explained in the Active Tentative Tract Memo FINAL [attached as Exhibit A], Active tentative tracts are to remain active for 3 years to allow the developer time to prepare their plans and record the tract so construction can begin. The maximum total years that an Active tentative tract is to remain active is 10 years, which includes two 3-year extensions by the City Planning Commission. However, in addition to the Planning Commission extensions, the State can pass an Assembly or Senate Bill at any time to extend Active tentative tracts, which typically allows for additional 1- or 2-year extension.

There are approximately 70 Active tentative tracts, which encompass 11,000 lots at an average vested fee of $3,036, that have remained active for more than 10 years and the majority of the tracts are more than 18 years. In addition, there are approximately 20 Active tentative tracts, which encompass 2,500 lots at an average vested fee of $5,841, that have been active for 10 years or less.

For this sewer connection revenue evaluation, Water Dept. staff is going to assume that 60% of the Active tentative tracts that have been active for more than 10 years and are supposed to expire in 2026 and 2027, will expire. Forty-three [43] of the seventy [70] Active tentative tracts have already received their allowable two extensions from the Planning Commission. The State may opt to generate another Extension Bill or the developer may request an extension, but with the anticipated support of CMO and Council, staff anticipate 60% will expire. As far as the Active tentative tracts that have been active for 10 years or less, Water Dept. will assume that 100% of these will be included in this revenue evaluation.

These assumptions result in the incorporation of 4,370 Active tentative tracts [10+ years] with a weighted average vesting fee of $3,035 and 2,500 Active tentative tracts [10- years] with a weighted average vesting fee of $5,840 into the sewer connection revenue projections.

ACTIVE/RECORDED TRACTS AND RATES OVERVIEW
Once a developer has an Active tentative tract, they have 10 years to decide on when they want to prepare the plans and move forward with recording the tract. That decision could be based on when the Active tentative tract would expire, the housing market, how close utilities are to the tract and if financing can be obtained.

Once the decision is made to move forward with recordation, the developer will submit their construction plans to DS – Land Development Engineering [LDE] [previously PWSubdivisions] for review and approval. The developer is required to meet all the conditions outlined by DS - Planning in the Accepted tentative tract and Planning Commission in the conditionally approved Active tentative tract. LDE staff will work with the various City departments to obtain input on the plans during the Plan Review process. Once the developer has addressed all the various City department’s comments and mark-ups and met all requirements, LDE will record the final map.

On the day the map is recorded, a Map Recordation date is set. In order for the developer to pay the vesting fee, that was set by DS - Planning, the developer has to pull building permits prior to the Vesting Expiration date. The Vesting Expiration date, for maps that are recorded after September 14, 2019, is set for two [2] years after the Map Recordation date.

DS - LDE

DS - LDE
Basically, developers have 2 years to apply for a building permit in order to pay the vesting fee. If they do not pull permits within those two [2] years, then they lose the vesting fee and have to pay today’s sewer connection fee, which is $7,248.

To encourage development and be developer friendly, City allows developers to record their Active tentative tract in phases. This is referred to as an Active/Recorded tract. Instead of a developer recording their entire Active tentative tract, which could be in excess of 200 lots, the City allows for phases with only a portion of the lots to be recorded at a time. Every recorded phase will allow the developer two [2] years to pull building permits for that phase, so some tracts will have 8 – 10 phases and will be built over 5 – 7 years. This ensures that the developer can protect and pay the vesting fee for all those phases instead of the current fee.

Currently, there are approximately 2,100 Active/Recorded tracts. It should be noted that this is a point in time number as building permits are being pulled at the same time certificates of occupancy are being approved, so the number will always be in flux. Water staff is assuming that the developer will apply for the building permit prior to the Vesting Expiration date and pay the vesting fee; therefor, the weighted average vesting fee for these 2,100 lots is approximately $3,500.

SEWER CONNECTION FEE REVENUE
All Active tentative tracts and Active/Recorded tracts are going to be compiled and one weighted average vesting fee calculated. It is assumed that all 8,970 homes will be constructed at this vested rate prior to the current sewer connection fee taking effect.

Weighted Vested Connection Fee
In addition to the vesting rate, sewer connection revenue is dependent on the number of homes built per year. Over the past 5 years, on average, approximately 1,400 homes were constructed annually. Since this is a key component needed to calculate revenue, staff consulted the Development Services Department about the proposed future annual construction rate. Development Services staff advised that the number of homes constructed per year was to increase to 2,400 homes.

Due to current growth rates, this evaluation assumes that the number of homes per year would increase to 2,400 homes annually and gradually between FY2026-27 and FY 2035-36.

It is anticipated that during 2030-31, the Active tentative tracts and Active/Recorded tracts with the Weighted Vested Connection Fee [shown in the table above] will have all been constructed and the current sewer connection fee will be collected on all SFDs moving forward.

Type of Tract # of Lots Wt. Average
Vesting Fee
Active Tentative [10+ yrs] 4,370 $3,035
Active Tentative [10- yrs] 2,500 $5,840
Active/Recorded 2,100 $3,500
8,970 $3,925
In addition to SFD sewer connection fees, there are also connection fees for accessory dwelling units (ADUs), commercial properties, and multi-family dwellings (MFD). It is difficult to project how many of each category will be built annually so historical data was used to determine the average annual revenue collected and the average annual number of permits pulled. Utilizing this data, the average annual sewer connection fee was calculated for each category. The numbers in the table below were used to project the additional sewer connection revenue for these categories.

Based on the assumptions discussed in this section, the total Sewer Connection Revenue for FY 2026-27 through 2035-36 is $185 million.
2026-27 to 2035-36 Sewer Connection Revenue
Row Labels Average Revenue Average Permit Count Average Cost per Connection
Building ADU $195,457.67 36 $5,480.12
Building Commercial Application $979,256.38 131 $7,452.48 Building MFD Application [per connection] $910,174.40 29 $30,958.31 2020-21 to 2024-25 [5-year Annual Average]
FUND 4190 - Sewer Connection Revenue FY 2025-2026 FY 2026-2027 FY 2027-2028 FY 2028-2029 FY 2029-2030 FY 2030-31 Residential SFD(homes/year) 1,400 1,500 1,600 1,700 1,800 1,900 Estimated Fee per SFD $3,726 $3,925 $3,925 $3,925 $3,925 $6,417 2024 Connection Fee (w/ Annual CCI) $7,248 $7,501 $7,764 $8,036 $8,317 $8,608 SFD Revenue $5,216,155 $5,887,500 $6,280,000 $6,672,500 $7,065,000 $12,192,683 Estimated Cost per ADU [w/ new home] $5,480 $5,758 $5,758 $5,758 $5,758 $7,334 Estimates ADUs / year 36 35 36 36 37 37
ADU Revenue $195,458 $201,537 $204,460 $207,424 $210,432 $271,898 2024 Avg Rate [inc. by Res. Incremental inc.] $30,958 $32,613 $32,613 $32,613 $32,613 $53,321 increase by growth rate with rounding 29 30 30 31 31 32 Multi-Family Revenue $910,174 $978,399 $992,585 $1,006,978 $1,021,579 $1,694,455 2024 Avg Rate $7,452 $7,851 $7,851 $7,851 $7,851 $12,836 increase by growth rate with rounding 131 130 132 134 136 138 Commercial Connection Revenue $979,256 $1,020,614 $1,035,413 $1,050,427 $1,065,658 $1,767,567 TOTAL SEWER CONNECTION REVENUE $7,301,043 $8,088,050 $8,512,458 $8,937,329 $9,362,669 $15,926,602 FUND 4190 - Sewer Connection Revenue FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 FY 2035-2036 Residential SFD(homes/year) 2,000 2,100 2,200 2,300 2,400 Estimated Fee per SFD
2024 Connection Fee (w/ Annual CCI) $8,909 $9,221 $9,544 $9,878 $10,224 SFD Revenue $17,818,806 $19,364,587 $20,996,746 $22,719,433 $24,536,988 Estimated Cost per ADU [w/ new home] $8,909 $9,221 $9,544 $9,878 $10,224 Estimates ADUs / year 38 38 39 39 40
ADU Revenue $335,102 $351,860 $369,455 $387,931 $407,330 2024 Avg Rate [inc. by Res. Incremental inc.] $74,029 $76,620 $79,302 $82,078 $84,950 increase by growth rate with rounding 32 33 33 34 34
Multi-Family Revenue $2,386,629 $2,505,979 $2,631,296 $2,762,881 $2,901,046 2024 Avg Rate $17,821 $18,445 $19,090 $19,758 $20,450
increase by growth rate with rounding 140 142 144 146 148 Commercial Connection Revenue $2,489,607 $2,614,106 $2,744,831 $2,882,093 $3,026,220 TOTAL SEWER CONNECTION REVENUE $23,030,145 $24,836,532 $26,742,328 $28,752,338 $30,871,583

IMPACTS ON SEWER CONNECTION REVENUE
It should be noted that the above assumptions and analysis are based on growth trends, historical data and future assumptions. If the City’s growth rate changes or the City’s growth patterns change from growing out to growing up and/or the tracts that have vested fees do not expire it will impact the revenue.

Recent changes to the development process that should be studied and monitored are the push to construct more Accessory Dwelling Units (ADUs) and the reduction of the allowable lot size for a SFD to as low as 2,800 sqft. Both of these options have been approved to address the affordable housing crisis in California. Both options will impact the sewer connection revenue. With the construction of high-density housing, 10+ homes per acre, there will be more connections which results in more revenue. Whereas, ADUs constructed with new builds will be required to pay the sewer connection fee but ADUs constructed in an existing home or on the property of an existing home may not have to pay the sewer connection fee if they can connect into the existing sewer line from the home to the main.

Over time, these changes could have an impact on the estimated Sewer Service Charge fee that is paid by the user because the single-family dwelling flow and loading estimates reflect the assumptions that each single-family dwelling account discharges 220 gallons per day (gpd) of wastewater flow with a BOD concentration of 240 mg/L and a TSS concentration of 280 mg/L. If there are more fixtures and more flow from a single-family dwelling with an ADU, this may result in SFD+ADU having a different SFDE ratio as defined in Chapter 5 of the 2026 SEWER RATES/FEES STUDY AND COST OF SERVICE ANALYSIS REPORT. The other option would be to recalculate the typical flow and loading for an SFD+ADU.

Ultimately, sewer connection revenue can be impacted by so many variables that it is important to monitor and revisit the revenue annually and adjust projects and plans accordingly.

Exhibit A
Active Tentative Tract Memo_FINAL
Active Tentative Tract Memo
Planning process for Tentative Tracts that set Vested Rates:
• APPLICATION – Developer submits tentative tract map application to Planning Dept. o Planning Dept. determines connection fee, ordinances, conditions, etc • ACCEPTED DATE – Date Planning Dept. deems the APPLICATION is complete o The Accepted tentative tract date sets the rates
o Staff refers to the tentative tract at this stage as a Vested Tract • ACTIVE DATE – Date Planning Commission (PC) conditionally approves tentative tract map

ACTIVE TENTATIVE TRACT
• Conditionally approved tentative tract maps are valid or Active for 3 years per the Subdivision Map Act (SMA)
• Planning Commission can approve two 3-year extensions • Tentative tract maps can be Active for a maximum of 10 years • Connection fee rates are set for as long as the tentative tract map remains Active

STATE IMPACTS ON EXTENDING ACTIVE TENTATIVE TRACTS
• State of California has approved several Assembly Bills/Senate Bills to provide automatic extensions, to all Statewide Active tentative tract maps, based on certain criteria • State automatic extensions occur for various reasons, some include:
o 2008 downturn of the housing market
o 2020 during Covid
o Lobbyist impacts/influences on Politicians
• As a result, there are Active tentative tracts that are vested as far back as 2005 and 2006 at a rate of $2,500 and $2,800 respectively per sewer connection ACTIVE TENTATIVE TRACTS TO EXPIRE IN 2025
• In January 2025 there were 37 Active tentative tracts that were scheduled to expire • The majority of these tentative tracts have been Active for more than 17-years • Active tentative tracts less than 10 years are notincluded in this evaluation because per SMA they are still allowed to extend.
• These 37 Active tentative tracts account for 5,945 lots or Single-Family Homes • The connection fee vested rate ranges from 2005 – 2016 • The weighted average sewer connection fee for these homes is $3,125/home as shown in the revised chart below
• Per AB2729, ALL 2025 Active tentative tract maps automatically extended 18-months • 2025 Active tentative tracts are now scheduled to expire in 2026 or 2027 Tent. Tract Tent. Tract Tent. Tract Lots Vested Tract # Years Legislative Number Active Date 2025 Expiration [#] Sewer Rate Extended Extentions 6571 2005-11-03 2025-05-01 138 $2,500 21.01 5
6515 2006-01-05 2025-07-03 240 $2,500 21.01 5
6645 2006-02-16 2025-08-14 128 $2,500 21.01 5
6730 2006-03-02 2025-07-31 73 $2,500 21.02 5
6433 2006-03-08 2025-09-07 22 $2,500 21.01 5
6780 2007-02-01 2025-01-31 73 $2,800 19.51 4
6766 2007-02-15 2025-02-13 320 $2,800 19.50 4
6866 2007-03-28 2025-03-27 310 $2,800 19.52 4
6858 2007-06-06 2025-06-05 86 $2,800 19.51 4
6861 2007-07-06 2025-07-05 78 $2,800 19.52 4
7056 2007-08-16 2025-08-15 166 $3,100 19.52 4
6807 2007-09-06 2025-09-05 315 $3,100 19.51 4
6755 2007-10-01 2025-09-30 91 $2,800 19.51 4
6860 2007-11-06 2025-11-05 268 $2,800 19.51 4
6465 2007-11-15 2025-11-14 174 $3,100 19.51 4
6939 2008-05-28 2025-05-27 172 $2,800 18.51 4
6969 2008-08-19 2025-08-18 92 $2,800 18.51 3
7153 2008-09-12 2025-09-11 180 $3,100 18.50 3
7152 2008-09-12 2025-09-11 171 $3,100 18.50 3
6736 2008-11-06 2025-11-05 17 $3,100 18.50 3
7190 2009-04-16 2025-12-14 88 $3,400 18.17 3
7192 2009-04-16 2025-12-14 82 $3,400 18.17 3
7142 2009-06-30 2025-12-29 214 $3,100 18.01 4
6745 2010-01-06 2025-01-05 205 $2,800 17.50 2
6750 2010-01-06 2025-01-05 273 $2,800 17.01 2
6749 2010-01-06 2025-01-05 194 $2,800 17.01 2
6747 2010-01-06 2025-01-05 192 $2,800 17.01 2
6746 2010-01-06 2025-01-05 154 $3,100 17.01 2
6748 2010-01-06 2025-01-05 132 $3,100 17.01 2
6616 2010-10-07 2025-10-06 347 $4,000 16.51 2
7167 2015-04-02 2025-10-01 186 $4,000 12.01 1
7168 2015-04-02 2025-10-01 165 $4,000 12.01 1
7169 2015-04-02 2025-10-01 151 $4,000 12.01 1
7170 2015-04-02 2025-10-01 31 $4,000 12.01 1
7251 2016-02-05 2025-02-05 308 $4,000 10.59 0
7252 2016-11-10 2025-11-10 50 $4,000 10.50 0
6617 2016-12-01 2025-11-30 59 $4,000 10.50 0
5,945 $3,125
ACTIVE TRACTS that have been EXTENDED more than 10 Years that were to EXPIRE in 2025 but were EXTENDED

EXTENSION LIFE OF ONE ACTIVE TENTATIVE TRACT
• Planning Dept. staff provided the following breakdown of how one tract has been extended 9 times for a total of 21 years.
o Accepted Date: 2005-07-25 [Vesting Tract Date]
o Active Date: 2005-11-03
o Expiration Date: 2008-11-03
o 1st Ext Date: Extended to 2009-11-01
Reason: SB 1185 Automatic 1 yr extension
o 2nd Ext Date: Extended to 2011-10-31
Reason: AB 333 Automatic 2 yr extension
o 3rd Ext Date: Extended to 2013-11-02
Reason: AB 208 Automatic 2 yr extension
o 4th Ext Date: Extended to 2015-11-02
Reason: AB 116 Automatic 2 yr extension
o 5th Ext Date: Extended to 2018-11-02
Reason: First 3 yr interval EOT allowed by SMA & BMC
o 6th Ext Date: Extended to 2020-11-02
Reason: AB 1303 Automatic 2 yr extension
o 7th Ext Date: Extended to 2022-0501
Reason: AB 1561 Automatic 18-month extension
o 8th Ext Date: Extended to 2025-0501
Reason: Second 3 yr interval EOT allowed by SMA & BMC
o 9th Ext Date: Extended to 2026-1101
Reason: State AB2729 – 18-month extension
This Active tentative tract from 2005 could have expired in 2015 or 2022 if the Planning Commission did not automatically extend the Active tentative tract. The 2005 Active tentative tract would have met the maximum 10-year criteria in both cases.

ACTIVE TENTATIVE TRACTS NOW SCHEDULED TO EXPIRE IN 2026 • 21 Active tentative tracts are scheduled to expire in 2026 • The majority of these tentative tracts have been Active for more than 19-years • Active tentative tracts less than 10 years are notincluded in this evaluation because per SMA they are still allowed to extend
• Of the 21 identified below, 7 of these were extended from 2025 [highlighted gray] • These 21 Active tentative tracts account for 4,127 lots or Single-Family Homes • The connection fee vested rate ranges from 2005 – 2016 • The weighted average sewer connection fee for these homes is $2,904/home as shown in the revised chart below
• By expiring these 2026 Active tentative tract maps, the 2005-2016 average sewer rate of $2,904 could be replaced with the current sewer rate of $6,947 if new applications for these tentative tracts were submitted to Planning Dept. and deemed complete • Potentially an additional $16.7 million in sewer connection revenue could be generated by removing the lots that would pay a vested rate instead of the new current rate ACTIVE TENTATIVE TRACTS NOW SCHEDULED TO EXPIRE IN 2027 • 32 Active tentative tracts are scheduled to expire in 2027 • The majority of these tentative tracts have been Active for more than 18-years • Active tentative tracts less than 10 years are not included in this evaluation because per SMA they are still allowed to extend
• Of the 32 identified below, 30 of these were extended from 2025 [highlighted gray] • The 32 Active tentative tracts account for 4,685 lots or Single-Family Homes • The connection fee vested rate ranges from 2005 – 2016 • The weighted average sewer connection fee for these homes is $3,138/home as shown in the revised chart below
Tent. Tract Tent. Tract Tent. Tract Lots Vested Tract Current Tract Potential # Years Legislative Number Active Date Expiration [#] Sewer Rate Sewer Rate ++ Revenue Extended Extentions 6571 2005-11-03 2026-11-01 138 $2,500 $6,947 $613,686 21.01 6 6839 2006-08-03 2026-02-02 108 $2,500 $6,947 $480,276 19.52 5 6840 2006-08-03 2026-02-02 101 $2,500 $6,947 $449,147 19.52 5 6843 2006-08-03 2026-02-02 89 $2,500 $6,947 $395,783 19.52 5 6842 2006-08-03 2026-02-02 82 $2,500 $6,947 $364,654 19.52 5 6841 2006-08-03 2026-02-02 80 $2,500 $6,947 $355,760 19.52 5 6844 2006-08-17 2026-02-16 104 $2,500 $6,947 $462,488 19.52 5 6182 2006-09-07 2026-03-06 366 $2,800 $6,947 $1,517,802 19.51 5 6521 2006-09-07 2026-03-06 425 $2,800 $6,947 $1,762,475 19.51 5 6876 2006-11-16 2026-05-14 373 $2,800 $6,947 $1,546,831 19.50 5 6567 2006-12-07 2026-06-06 298 $2,800 $6,947 $1,235,806 19.51 5 6568 2006-12-07 2026-06-06 95 $2,800 $6,947 $393,965 19.51 5 6871 2006-12-07 2026-06-06 223 $2,800 $6,947 $924,781 19.51 5 6397 2006-12-28 2026-06-26 122 $2,500 $6,947 $542,534 19.51 5 6780 2007-02-01 2026-07-31 73 $2,800 $6,947 $302,731 19.51 5 6766 2007-02-15 2026-08-13 320 $2,800 $6,947 $1,327,040 19.50 5 6866 2007-03-28 2026-09-27 310 $2,800 $6,947 $1,285,570 19.52 4 6858 2007-06-06 2026-12-05 86 $2,800 $6,947 $356,642 19.51 5 6939 2008-05-28 2026-11-27 172 $2,800 $6,947 $713,284 18.51 6 7235 2014-01-16 2026-06-15 254 $4,000 $6,947 $748,538 12.42 1 7251 2016-02-05 2026-09-05 308 $4,000 $6,947 $907,676 10.59 0 4,127 $2,904 $16,687,469
ACTIVE TRACTS that have been EXTENDED more than 10 Years that are scheduled to EXPIRE in 2026
• By expiring these Active tentative tract maps, the 2005-2016 average sewer rate of $3,138 could be replaced with the current sewer rate of $6,947 if new applications for these tentative tracts are submitted to Planning Dept. and deemed complete • Potentially an additional $17.8 million in sewer connection revenue could be generated by removing the lots that would pay a vested rate instead of the new current rate

ACTIVE TENTATIVE TRACTS THAT DO NOT EXPIRE
• 17 Active tentative tracts are scheduled to expire in 2999 [990 years] • According to Planning Dept. staff these are Development Agreements (DAs) which are managed by the City Manager’s Office
• These DAs have special rates incorporated for Police, Fire and Rec&Parks • However, the sewer connection fee was not included as having a special rate • This is for information only as unsure how to address these tracts • The 2,106 lots are not included in the 2026 and 2027 Active tentative tract totals • However, these lots are incorporated in the TOTAL ACTIVE TENTATIVE TRACTS below Tent. Tract Tent. Tract Tent. Tract Lots Vested Tract Current Tract Potential # Years Legislative Number Active Date Expiration [#] Sewer Rate Sewer Rate ++ Revenue Extended Extentions 6515 2006-01-05 2027-01-03 240 $2,500 $6,947 $1,067,280 21.01 6 6645 2006-02-16 2027-02-14 128 $2,500 $6,947 $569,216 21.01 6 6730 2006-03-02 2027-03-03 73 $2,500 $6,947 $324,631 21.02 6 6433 2006-03-08 2027-03-07 22 $2,500 $6,947 $97,834 21.01 6 6861 2007-07-06 2027-01-05 78 $2,800 $6,947 $323,466 19.52 5 7056 2007-08-16 2027-02-15 166 $3,100 $6,947 $638,602 19.52 5 6807 2007-09-06 2027-03-05 315 $2,800 $6,947 $1,306,305 19.51 5 6755 2007-10-01 2027-03-30 91 $2,800 $6,947 $377,377 19.51 5 6860 2007-11-06 2027-05-05 268 $2,800 $6,947 $1,111,396 19.51 5 6465 2007-11-15 2027-05-14 174 $3,100 $6,947 $669,378 19.51 5 6950 2008-02-07 2029-12-31 63 $3,100 $6,947 $242,361 21.91 4 6969 2008-08-19 2027-02-18 92 $2,800 $6,947 $381,524 18.51 5 7153 2008-09-12 2027-03-11 180 $3,100 $6,947 $692,460 18.50 5 7152 2008-09-12 2027-03-11 171 $3,100 $6,947 $657,837 18.50 4 6736 2008-11-06 2027-05-05 17 $3,100 $6,947 $65,399 18.50 4 7190 2009-04-16 2027-06-14 88 $3,400 $6,947 $312,136 18.17 4 7192 2009-04-16 2027-06-14 82 $3,400 $6,947 $290,854 18.17 4 7196 2009-05-21 2027-06-14 84 $3,400 $6,947 $297,948 18.08 4 7142 2009-06-30 2027-06-29 214 $3,100 $6,947 $823,258 18.01 5 6745 2010-01-06 2027-07-05 205 $2,800 $6,947 $850,135 17.50 4 6750 2010-01-06 2027-01-05 273 $2,800 $6,947 $1,132,131 17.01 4 6749 2010-01-06 2027-01-05 194 $2,800 $6,947 $804,518 17.01 4 6747 2010-01-06 2027-01-05 192 $2,800 $6,947 $796,224 17.01 4 6746 2010-01-06 2027-01-05 154 $3,100 $6,947 $592,438 17.01 4 6748 2010-01-06 2027-01-05 132 $3,100 $6,947 $507,804 17.01 4 6616 2010-10-07 2027-04-06 347 $4,000 $6,947 $1,022,609 16.51 4 7167 2015-04-02 2027-04-01 186 $4,000 $6,947 $548,142 12.01 2 7168 2015-04-02 2027-04-01 165 $4,000 $6,947 $486,255 12.01 2 7169 2015-04-02 2027-04-01 151 $4,000 $6,947 $444,997 12.01 2 7170 2015-04-02 2027-04-01 31 $4,000 $6,947 $91,357 12.01 2 7252 2016-11-10 2027-05-10 50 $4,000 $6,947 $147,350 10.50 1 6617 2016-12-01 2027-05-30 59 $4,000 $6,947 $173,873 10.50 2 4,685 $3,138 $17,847,095
ACTIVE TRACTS that have been EXTENDED more than 10 Years that are scheduled to EXPIRE in 2027
TOTAL ACTIVE TENTATIVE TRACTS 2005 - 2025
It needs to be noted that the Total Number of Active tentative tract maps, including those that have been active for more than and less than 10 years totals:

More than 10-years 2005 – 2016 10,918 lots [homes]
Less than 10-years 2017 – 2025 2,493 lots [homes]
Total Active Tentative Tract Maps 2005 – 2025 13,411 lots [homes] Using this data and the known rate for each year, a weighted sewer connection fee rate will be calculated and used in the evaluation when determining future Sewer Connection Revenue.

SUMMARY
Water Staff has requested that the Planning Dept. provide any information about future State authorized bills that will continue to extend these Active tentative tracts.

It would be beneficial if Planning Commission did not take any further action to automatically extend these Active tentative tracts that are:
• scheduled to expire in 2026 and 2027
• exceed the Active 10-year maximum
Tent. Tract Tent. Tract Tent. Tract Lots Vested Tract Current Tract Potential # Years Number Active Date Expiration [#] Sewer Rate Sewer Rate ++ Revenue Extended 6719 2006-12-28 2999-12-31 19 $2,800 $6,947 $78,793 993.67 6792 2006-12-28 2999-12-31 13 $2,800 $6,947 $53,911 993.67 6827 2006-12-28 2999-12-31 174 $2,800 $6,947 $721,578 993.67 6815 2007-01-18 2999-12-31 170 $2,800 $6,947 $704,990 993.61 6826 2007-01-18 2999-12-31 135 $2,800 $6,947 $559,845 993.61 7020 2007-02-15 2999-12-31 209 $2,800 $6,947 $866,723 993.53 6816 2007-04-19 2999-12-31 183 $2,800 $6,947 $758,901 993.36 7041 2007-05-17 2999-12-31 142 $2,800 $6,947 $588,874 993.28 7019 2007-07-19 2999-12-31 122 $2,800 $6,947 $505,934 993.11 7191 2009-04-16 2999-12-31 133 $3,400 $6,947 $471,751 991.37 7195 2009-05-21 2999-12-31 152 $3,400 $6,947 $539,144 991.27 7193 2009-05-21 2999-12-31 150 $3,400 $6,947 $532,050 991.27 7194 2009-05-21 2999-12-31 89 $3,400 $6,947 $315,683 991.27 7017 2009-06-04 2999-12-31 119 $3,400 $6,947 $422,093 991.23 7018 2009-06-04 2999-12-31 104 $3,400 $6,947 $368,888 991.23 7015 2009-06-04 2999-12-31 103 $3,400 $6,947 $365,341 991.23 7016 2009-06-04 2999-12-31 89 $3,400 $6,947 $315,683 991.23 2,106 $3,068 $8,170,182
Active tentative tracts that were approved 10++ years ago, when they were further away from City services, become more viable, valuable and profitable to develop as the City grows towards them.

If these active tentative tracts opt to Record, there will be a significant impact on the sewer connection fee revenue.

It is vital that fees paid to connect to the City’s sewer system pay the cost for such service at the time of connection, which is now $7,248 per connection.

The information in this memo will be used to evaluate potential sewer connection fee revenue along with Recorded Map Data.

Using the Recorded Map data and the known rate for each year, a weighted sewer connection fee rate will be calculated and used in the evaluation when determining future Sewer Connection Revenue.

Next Memo: Estimated Sewer Connection Revenue Analysis [2026-2035] Exhibit B
Public Works Memo

PUBLIC WORKS DEPARTMENT

MEMORANDUM
TO: Alan Tandy, City Manager
FROM: Nick Fidler, Public Works Director
DATE: April 18, 2017
SUBJECT: Proposed Residential and Commercial Sewer Connection Fee Increase (Excludes Industrial Users)
Resolution No. 159-06, which was adopted by Council on June 7, 2006, approved a fiveyear phased approach for the sewer connection fee. This five-year phased approach coincided with Plant 3’s expansion project. Per this Resolution, the last update to the residential and commercial sewer connection fees was effective July 1, 2010, which set the current $4,000 residential connection fee.

Staff has recently evaluated both residential and commercial connection fees. Public Works staff met with both the Assistant City Manager and the Finance Director to discuss the proposed methodology used to establish proposed connection fees. Staff proposes to set connection fees based upon the “buy-in” cost to connect to the City’s treatment system. Both the Assistant City Manager and the Finance Director concur with the proposed “buy-in” approach. Although this methodology yielded a residential connection fee of $5,377, staff proposes phasing the increase over five years with a cap of $5,000. Therefore, the annual increase would be limited to $200. As with the current fee structure, commercial connection fees would be set proportional to the residential connection fee. Proposed increases are listed in the following table.

Staff surveyed other agencies to determine how the proposed residential connection fee compared with other agencies. Attached are the results of this survey. If the $200 increase was approved for FY 17/18, the City of Bakersfield would still remain one of the lowest of the surveyed agencies. Over a five-year period, it can be expected that many of the surveyed cities would also have increases to their connection fees.

Existing vested maps would vest under the current rate structure. The proposed connection fee would apply only to non-vested developments or developments with expired vesting rights.

Staff proposes no changes to the connection fees for Industrial Users (IU’s) at this time.

IU connection fees will require considerable more research and will be the next fee reviewed by staff.

Please advise if you would like a meeting set up to discuss.

Current July 1, 2017 July 1, 2018 July 1, 2019 July 1, 2020 July 1, 2021 $4,000 $4,200 $4,400 $4,600 $4,800 $5,000
Proposed Increases to Sewer Connection Fee - Single Family Home EXHIBIT C. 10-YEAR FINANCIAL PLAN

1.45% 1.45% 1.45% 1.45% 1.45% 1.45% 1.45% 1.45% 1.45% 1.45%

4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% Sewer Service Charge Rate $ 475.00 $ 575.00 $ 675.00 $ 775.00 $ 875.00 $ 901.25 $ 928.29 $ 956.14 $ 984.82 $ 1,014.36 FY 2026-2027 FY 2027-2028 FY 2028-2029 FY 2029-2030 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 FY 2035-2036 Sewer Service Charge [Total System] $71,521,215 $88,062,764 $104,868,316 $121,894,447 $139,580,482 $145,680,925 $151,995,410 $158,612,326 $165,445,154 $172,562,295 Miscellaneous Fees [Total System] $2,800,729 $2,952,410 $4,014,308 $3,906,425 $6,008,763 $5,108,324 $5,131,111 $5,154,125 $5,177,370 $5,177,370 Bond Revenue - Plant 2 $0 $0 $0 $0 $0 $150,000,000 $0 $0 $0 $0 Bond Revenue - Plant 4 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Connection Fee $8,088,050 $8,512,458 $8,937,329 $9,362,669 $15,926,602 $23,030,145 $24,836,532 $26,742,328 $28,752,338 $30,871,583 Enterprise [Loan repayment-Interest Earnings] $1,411,822 $2,742,865 $3,681,451 $4,645,150 $5,840,415 $6,816,993 $7,168,867 $6,925,489 $6,342,746 $5,471,439 Fund 4110 - Plant 2 ($23,947,481) ($21,722,054) ($29,922,673) ($33,486,741) ($43,552,138) ($102,709,404) ($120,117,374) ($30,172,121) ($26,166,781) ($32,776,501) Fund 4120 - Plant 3 ($56,518,269) ($65,756,700) ($99,389,017) ($55,004,762) ($57,242,800) ($85,063,450) ($138,466,713) ($162,470,100) ($182,171,627) ($183,470,898)Fund 4140 - Plant 4 $0 $0 $0 ($4,000,000) ($3,000,000) ($21,000,000) ($20,000,000) ($13,500,000) ($35,000,000) ($30,000,000) $52,042,177 $66,833,920 $59,023,633 $106,340,821 $169,902,145 $291,765,676 $202,313,508 $193,605,556 $155,984,756 $123,820,045 MINIMUM RESERVES - O&M [9 mo.] + DS $38,337,125 $40,937,262 $42,927,159 $44,555,825 $46,939,094 $45,869,129 $54,798,615 $52,221,748 $54,932,190 $58,435,472 $13,705,052 $25,896,658 $16,096,474 $61,784,996 $122,963,050 $245,896,547 $147,514,893 $141,383,808 $101,052,566 $65,384,574 FY 2026-2027 FY 2027-2028 FY 2028-2029 FY 2029-2030 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 FY 2035-2036 Non-Operating Revenue [incl. KSA+ENCSD 13%] $990,249 $1,124,989 $2,169,776 $2,044,611 $4,129,495 $3,211,427 $3,216,409 $3,221,440 $3,226,522 $3,226,522 2031/32 Bond Revenue $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
2031/32 Bond - pay off 30-yrs $0 $0 $0 $0 $0 $0 $8,674,515 $8,674,515 $8,674,515 $8,674,515 WWTP2 Personnel [Current] $2,540,003 $2,641,604 $2,747,268 $2,857,158 $2,971,445 $3,090,303 $3,213,915 $3,342,471 $3,476,170 $3,615,217 CAO - Deputy City Attorney II $46,488 $48,347 $50,281 $52,292 $54,384 $56,559 $58,822 $61,174 $63,621 $66,166 Additional - Civil Eng. IV [ 25% RAW/W/WW] $69,523 $72,304 $75,196 $78,204 $81,332 $84,586 $87,969 $91,488 $95,147 $98,953 Additional Engineer III [50%] $0 $0 $119,000 $123,760 $128,710 $133,859 $139,213 $144,782 $150,573 $156,596 Reclass FASO II to Fiscal Manager [50% of increase] $7,344 $7,638 $7,943 $8,261 $8,591 $8,935 $9,293 $9,664 $10,051 $10,453 Additional - Fiscal Supervisor [50%] $79,560 $82,742 $86,052 $89,494 $93,074 $96,797 $100,669 $104,696 $108,883 $113,239 Additional - Admin Fiscal Services Specialist [50%] $0 $0 $0 $0 $0 $60,909 $63,345 $65,879 $68,514 $71,254 Additional - Plant Operator III $146,227 $152,076 $158,159 $164,486 $171,065 $177,908 $185,024 $192,425 $200,122 $208,127

TOTAL AVAILABLE FUND BALANCE
PLANT 2 - DEBT SERVICES
PLANT 2 - OPERATIONS AND MAINTENANCE
10-YEAR WASTEWATER FINANCIAL PLAN

TOTAL BUDGET
Growth of Accounts [Connections] %
Personnel % Increase
PLANT 2 - REVENUE

TOTAL FUND BALANCE
CCI % Increase
FUND 4110 - SEWER SERVICE - PLANT 2

REVENUE

EXPENSES
Additional - Plant Operator III $146,227 $152,076 $158,159 $164,486 $171,065 $177,908 $185,024 $192,425 $200,122 $208,127 Additional - Plant Operator III $0 $0 $0 $0 $0 $177,908 $185,024 $192,425 $200,122 $208,127 Additional - Senior E&I Tech $0 $156,489 $162,749 $169,259 $176,029 $183,070 $190,393 $198,009 $205,929 $214,166 Additional - Senior Plant Mechanic $150,470 $156,489 $162,749 $169,259 $176,029 $183,070 $190,393 $198,009 $205,929 $214,166 Additional - Service Maintenance Worker $93,860 $97,614 $101,519 $105,579 $109,802 $114,195 $118,762 $123,513 $128,453 Additional - Maintenance Supervisor [50%] $0 $0 $0 $0 $97,370 $101,265 $105,315 $109,528 $113,909 $118,465 Additional - Senior Lab Tech [50%] $0 $0 $72,436 $75,334 $78,347 $81,481 $84,740 $88,130 $91,655 $95,321 Additional - COGEN/Tertiary Technician w/ vehicle $0 $0 $0 $0 $0 $214,008 $170,569 $177,391 $184,487 $191,867 Additional - Construct Inspector [50%] w/ vehicle $0 $107,057 $80,139 $83,344 $86,678 $90,145 $93,751 $97,501 $101,401 $105,457 Additional - Construct Inspector [50%] w/ vehicle $0 $0 $0 $0 $146,678 $90,145 $93,751 $97,501 $101,401 $105,457 Additional Personnel Years 2036-2041 $0 $0 $0 $0 $0 $0 $0 $0 $0 $400,000 WWTP2 Operations $4,789,638 $5,064,122 $5,358,851 $5,673,472 $6,010,799 $6,373,832 $6,762,780 $7,181,087 $7,631,459 $8,116,892 WWTP2 Vehicles OVER Expenditures $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 WWTP2 Capital Outlay $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 WWTP2 Septage Processing Unit Replacement $2,000,000 WWTP2 Clam Shell - Grit System $250,000 WWTP2 Plant Lighting Upgrades $200,000 WWTP2 Clarifyer Rehabilitation $1,000,000 WWTP2 Site Infrastructure $750,000 WWTP2 Annual Capital Improvement Projects $1,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 Engineering Sewer Lift Station Rehab Rio Mirada $250,000 $3,000,000 Engineering Storm Lift Station Rehab Chester Ave $1,000,000 Engineering Storm Lift Station Rehab Sandra/Meredith $250,000 $2,800,000 Engineering Sewer Line Improvements Panama St $5,000,000 Engineering Storm Drain Improvements D St. [23rd south] $500,000 $6,000,000Engineering Sewer Line Improvements Alley $250,000 $3,000,000Engineering Sewer Line Improvements K Street/34th Street $300,000 $4,000,000Engineering Storm Drain Improvements Q St/20th St. $250,000 $4,000,000Engineering Storm Drain Improvements L St-O/Trux-24 $2,000,000 Engineering Sewer/Storm Lift Station Rehab $300,000 $3,250,000 $350,000 $3,750,000 Engineering Sewer/Storm Line Improvements $250,000 $4,000,000 $250,000 $4,000,000 $400,000 CIP Sub-total $14,200,000 $10,000,000 $9,300,000 $12,550,000 $6,500,000 $2,800,000 $6,000,000 $6,500,000 $2,850,000 $6,650,000 Escalation Factor 1.035 1.071 1.109 1.148 1.188 1.229 1.272 1.317 1.363 1.411 MINOR INFRASTRUCTURE PLANT 2 CIP $14,697,000 $10,712,250 $10,311,076 $14,401,414 $7,719,961 $3,441,915 $7,633,676 $8,559,259 $3,884,257 $9,380,482 WWTP2 Upgrade RFQ & Project Design Report [PDR] $1,000,000 $2,000,000 WWTP2 Upgrade Design/Enviro $10,000,000 $9,000,000 WWTP2 Upgrade Pre-Purchase [Elec-Mech Equip] $25,000,000 WWTP2 Upgrade-Construction $80,000,000 $84,000,000 WWTP2 Upgrade-Construction Mgmt $7,500,000 $7,500,000 MAJOR INFRASTRUCTURE PLANT 2 CIP $1,000,000 $2,000,000 $10,000,000 $9,000,000 $25,000,000 $87,500,000 $91,500,000 $0 $0 $0 TOTAL PLANT 2 EXPENSES $23,947,481 $21,722,054 $29,922,673 $33,486,741 $43,552,138 $102,709,404 $120,117,374 $30,172,121 $26,166,781 $32,776,501 ASSUME 3.5% ANNUAL ESCALATION ON CAPITAL IMPROVEMENTS
PLANT 2 - CAPITAL IMPROVEMENT PROJECTS
FY 2026-2027 FY 2027-2028 FY 2028-2029 FY 2029-2030 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 FY 2035-2036 Non-Operating Revenue [incl. KSA+ENCSD 13%] $1,810,480 $1,827,421 $1,844,532 $1,861,813 $1,879,268 $1,896,897 $1,914,702 $1,932,685 $1,950,848 $1,950,848 Plant 3 Bond Revenue $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Fund Transfer from 4190 (+/-) $8,088,050 $8,512,458 $8,937,329 $9,362,669 $15,926,602 $23,030,145 $24,836,532 $26,742,328 $28,752,338 $30,871,583 2025 Bond - paid off FY 32/33 $12,265,625 $12,278,250 $12,359,250 $12,362,500 $12,363,625 $8,549,125 $6,631,750 $0 $0 $0 WWTP3 Personnel [Current] $3,732,941 $3,882,258 $4,037,549 $4,199,051 $4,367,013 $4,541,693 $4,723,361 $4,912,295 $5,108,787 $5,313,139 Assistant Director/Director Compaction [actual 6.2%] $29,438 $30,615 $31,840 $33,113 $34,438 $35,815 $37,248 $38,738 $40,287 $41,899 Additional- Civil Eng. IV [ 25% RAW/W/WW] $69,523 $72,304 $75,196 $78,204 $81,332 $84,586 $87,969 $91,488 $95,147 $98,953 Additional Engineer III [50%] $0 $0 $119,000 $123,760 $128,710 $133,859 $139,213 $144,782 $150,573 $156,596 Assistant Director/ Director Compaction [actual 6.2%] $34,100 $35,464 $36,883 $38,358 $39,892 $41,488 $43,147 $44,873 $46,668 $48,535 Reclass FASO II to Fiscal Manager [50% of increase] $7,344 $7,638 $7,943 $8,261 $8,591 $8,935 $9,293 $9,664 $10,051 $10,453 Additional - Fiscal Supervisor [50%] $79,560 $82,742 $86,052 $89,494 $93,074 $96,797 $100,669 $104,696 $108,883 $113,239 Additional- Admin Fiscal Services Specialist [50%] $0 $0 $0 $0 $0 $58,566 $60,909 $63,345 $65,879 $68,514 Additional - Plant Operator III $146,227 $152,076 $158,159 $164,486 $171,065 $177,908 $185,024 $192,425 $200,122 $208,127 Additional - Plant Operator III $146,227 $152,076 $158,159 $164,486 $171,065 $177,908 $185,024 $192,425 $200,122 $208,127 Additional - Plant Operator III $146,227 $152,076 $158,159 $164,486 $171,065 $177,908 $185,024 $192,425 $200,122 $208,127 Additional - Plant Operator III $0 $0 $0 $0 $0 $177,908 $185,024 $192,425 $200,122 $208,127 Additional - Plant Operator III $0 $0 $0 $0 $0 $177,908 $185,024 $192,425 $200,122 $208,127 Additional - Senior E&I Tech $0 $156,489 $162,749 $169,259 $176,029 $183,070 $190,393 $198,009 $205,929 $214,166 Additional - Plant Mechanic $0 $140,195 $145,803 $151,635 $157,700 $164,008 $170,569 $177,391 $184,487 $191,867 Additional - Plant Mechanic $0 $0 $0 $0 $157,700 $164,008 $170,569 $177,391 $184,487 $191,867 Additional - Maintenance Supervisor [50%] $0 $0 $0 $0 $97,370 $101,265 $105,315 $109,528 $113,909 $118,465 Additional - Senior Lab Tech [50%] $0 $0 $72,436 $75,334 $78,347 $81,481 $84,740 $88,130 $91,655 $95,321 Additional - COGEN/Tertiary Technician w/ vehicle $0 $0 $0 $0 $0 $214,008 $170,569 $177,391 $184,487 $191,867 Additional - Construct Inspector [50%] w/ vehicle $0 $107,057 $80,139 $83,344 $86,678 $90,145 $93,751 $97,501 $101,401 $105,457 Additional - Construct Inspector [50%] w/ vehicle $0 $0 $0 $0 $146,678 $90,145 $93,751 $97,501 $101,401 $105,457 Additional Personnel Years 2036-2041 $0 $0 $0 $0 $0 $0 $0 $0 $0 $400,000 Finance Direct Charge - AR $18,791 $19,542 $20,324 $21,137 $21,982 $22,862 $23,776 $24,727 $25,716 $26,745 WWTP3 Operations $10,635,557 $11,317,208 $12,072,434 $12,904,194 $13,744,392 $14,650,808 $15,629,739 $18,911,757 $20,177,416 $21,542,271 WWTP3 Vehicles OVER Expenditures $325,000 $325,000 $325,000 $325,000 $325,000 $325,000 $325,000 $325,000 $325,000 $338,000 WWTP3 Capital Outlay $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $26,000 WWTP3 Pretreatment Personnel $1,052,130 $1,094,215 $1,137,983 $1,183,503 $1,230,843 $1,280,076 $1,331,279 $1,384,531 $1,439,912 $1,497,508 Additional - Enviro Compliance Inspector $133,746 $139,095 $144,659 $150,446 $156,464 $162,722 $169,231 $176,000 $183,040 WWTP3 Pretreatment Operations $443,170 $479,545 $525,687 $578,322 $619,812 $666,256 $716,102 $770,851 $831,068 $897,388 WWTP3 Pretreatment Capital Outlay $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,400 WR Sump Maintenance $400,000 $400,000 $450,000 $450,000 $500,000 $500,000 $550,000 $550,000 $600,000 $600,000 PLANT 3 - OPERATIONS AND MAINTENANCE
PLANT 3 - REVENUE
FUND 4120 - SEWER SERVICE PLANT 3
PLANT 3 - DEBT SERVICES
Streets - Sewer Maintenance Personnel $2,274,349 $2,365,323 $2,459,936 $2,558,333 $2,660,667 $2,767,093 $2,877,777 $2,992,888 $3,112,604 $3,237,108 Additional - Sewer Maintainer II + Combo Truck $0 $510,323 $110,323 $114,736 $119,326 $124,099 $129,063 $134,225 $139,594 $145,178 Additional - SMW $0 $93,860 $97,614 $101,519 $105,579 $109,802 $114,195 $118,762 $123,513 $128,453 Additional - Sewer Maintainer III + Camera Truck $0 $0 $320,507 $120,507 $125,327 $130,340 $135,554 $140,976 $146,615 $152,480 Additional - SMW $0 $0 $97,614 $101,519 $105,579 $109,802 $114,195 $118,762 $123,513 $128,453 Additional Personnel Years 2036-2041 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Streets - Sewer Maintenance Operations $4,571,743 $4,960,714 $5,393,819 $5,873,208 $6,406,776 $7,002,565 $7,666,591 $8,408,996 $9,240,202 $10,172,099 Streets - Sewer Maintenance Capital $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,800 Streets - Storm Drain Personnel $1,325,870 $1,378,905 $1,434,061 $1,491,423 $1,551,080 $1,613,124 $1,677,649 $1,744,754 $1,814,545 $1,887,126 Additional Personnel Years 2036-2041 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Streets - Storm Drain Operations $1,018,322 $1,097,841 $1,176,150 $1,272,776 $1,379,891 $1,499,816 $1,632,056 $1,779,320 $1,943,551 $2,126,959 Streets - Storm Drain Capital $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 WWTP3 Grit Classifier Replace Construction $500,000 WWTP3 Digester Dome Rehab Construction $150,000 WWTP3 Secondary Clarifier Rehab Construction $25,000 $425,000 WWTP3 Septage Processing Unit Upgrade $1,150,000 WWTP3 Flare Replacement - SJVAPCD Requirement $150,000 $1,500,000 WWTP3 BioFilter Fans - Procurement & Installation $600,000 WWTP3 H2S Damage Repair $150,000 WWTP3 Cloth Media Filter Replacement $60,000 WWTP3 Plant Lighting Upgrade $100,000 WWTP3 Primary Influent Gate $100,000 WWTP 3 EV Charging for Trucks $1,000,000 $1,000,000
WWTP3 Site Infrastructure $250,000 WWTP3 Annual Capital Improvement Projects $1,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 Engineering Sewer Lift Station Rehab (McCutchen/Gosford) $7,000,000 Engineering Sewer Lift Station Rehab (Taft/South H) $250,000 $3,000,000 Engineering Sewer Lift Station Rehab (Mt.Vista/Grand Lks) $250,000 $2,800,000 Engineering BV Trunk Line Capacity Improvements $15,000,000 $15,000,000 Engineering Downtown Manhole Rehabilitation $2,400,000 Engineering Storm Drain CIPP Liner - Auburn $1,100,000 Engineering Lift Station Rehab $1,500,000 Engineering Sewer Line Downtown Rehabilitation $2,500,000 $25,000,000 Engineering Sewer/Storm Lift Station Rehab $300,000 $3,250,000 $300,000 $3,250,000 Engineering Sewer/Storm Line Improvements $500,000 $6,000,000 $500,000 $6,000,000 Engineering Sewer Trunk Line Improvements $3,000,000 $30,000,000 CIP Sub-total $16,175,000 $20,235,000 $20,550,000 $6,800,000 $7,250,000 $11,000,000 $27,500,000 $3,300,000 $14,750,000 $32,500,000 Escalation Factor 1.035 1.071 1.109 1.148 1.188 1.229 1.272 1.317 1.363 1.411 MINOR INFRASTRUCTURE PLANT 3 CIP $16,741,125 $21,676,238 $22,784,152 $7,803,156 $8,610,726 $13,521,809 $34,987,680 $4,345,470 $20,102,736 $45,844,460 WWTP3 P0-32MGD RFQ & PDR & Design $1,000,000 WWTP3 P0-32MGD Pre-Purchase [Elec-Mech Equip] $2,600,000 WWTP3 P0-32MGD-Construction $30,500,000 WWTP3 P0-32MGD-Construction Mgmt $2,600,000 PLANT 3 - CAPITAL IMPROVEMENT PROJECTS
ASSUME 3.5% ANNUAL ESCALATION ON CAPITAL IMPROVEMENTS
WWTP3 EXP40 RFQ & Project Design Report [PDR] RFQ $2,000,000 $1,000,000 WWTP3 EXP40 Design/ Envir/ Permits $25,000,000 $14,000,000 WWTP3 EXP40 Purshase 160 Acres $2,500,000 WWTP3 EXP40 Pre-Purchase [Elec-Mech Equip] $40,000,000 WWTP3 EXP40-Construction $103,000,000 $104,000,000 $80,000,000 WWTP3 EXP40-Construction Mgmt $10,000,000 $10,000,000 $6,000,000 MAJOR INFRASTRUCTURE PLANT 3 CIP $1,000,000 $2,600,000 $33,100,000 $2,000,000 $1,000,000 $25,000,000 $56,500,000 $113,000,000 $114,000,000 $86,000,000 TOTAL PLANT 3 EXPENSES [O&M+CIP] $56,518,269 $65,756,700 $99,389,017 $55,004,762 $57,242,800 $85,063,450 $138,466,713 $162,470,100 $182,171,627 $183,470,898 FY 2026-2027 FY 2027-2028 FY 2028-2029 FY 2029-2030 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 FY 2035-2036 Non-Operating Revenue [1% esc]
2037/38 Bond Revenue
Fund Transfer from 4190 (+/-)
2037/38 Bond - pay off 30-yrs
WWTP4 PersonnelWWTP4 OperationsWWTP4 Operations OVER ExpendituresWWTP4 Capital Outlay WWTP4 @P2-Move/Rebuild Effluent PondsWWTP4 Annual CIP Budget - Projects TBD CIP Sub-total $0 $0 $0 $0 $0 $0 $0 $0
Escalation Factor 1.109 1.148 1.188 1.229 1.272 1.317 1.363 1.411 MINOR INFRASTRUCTURE PLANT 4 CIP $0 $0 $0 $0 $0 $0 $0 $0 WWTP4 @P2 RFQ/ Design Rpt/ Enviro/ Legal RFQ $4,000,000 $3,000,000 WWTP4 @P2 Design & Permits $21,000,000 $20,000,000 $13,500,000 WWTP4 @P2 Pre-Purchase [Elec-Mech Equip] $35,000,000 $30,000,000 WWTP4 @P2-ConstructionWWTP4 @P2-Construction Mgmt.

MAJOR INFRASTRUCTURE PLANT 4 CIP $0 $4,000,000 $3,000,000 $21,000,000 $20,000,000 $13,500,000 $35,000,000 $30,000,000 TOTAL PLANT 4 EXPENSES $0 $4,000,000 $3,000,000 $21,000,000 $20,000,000 $13,500,000 $35,000,000 $30,000,000 FY 2026-2027 FY 2027-2028 FY 2028-2029 FY 2029-2030 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 FY 2035-2036 $8,088,050 $8,512,458 $8,937,329 $9,362,669 $15,926,602 $23,030,145 $24,836,532 $26,742,328 $28,752,338 $30,871,583 Fund Transfer 4120 (+/-) ($8,088,050) ($8,512,458) ($8,937,329) ($9,362,669) ($15,926,602) ($23,030,145) ($24,836,532) ($26,742,328) ($28,752,338) ($30,871,583)Fund Transfer 4140 (+/-) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ($8,088,050) ($8,512,458) ($8,937,329) ($9,362,669) ($15,926,602) ($23,030,145) ($24,836,532) ($26,742,328) ($28,752,338) ($30,871,583) ASSUME 3.5% ANNUAL ESCALATION ON CAPITAL IMPROVEMENTS
PLANT 4 - OPERATIONS AND MAINTENANCE
PLANT 4 - DEBT SERVICES
PLANT 4 - CAPITAL IMPROVEMENT PROJECTS

TOTAL REVENUE

FUND TRANSFERS TOTAL
FUND 4190 - Sewer Connection Fees [Developer]
FUND 4140 - SEWER SERVICE - PLANT 4
PLANT 4 - REVENUE
EXHIBIT D. COUNCIL – SEWER ENTERPRISE

SEWER ENTERPRISE

COST OF SERVICE AND RATE SCENARIOS
Presentation Outline
• Update on Water Department and HF&H Consultants coordination.• 2026 Cost of Service Analysis [COSA]• 5-year Rate Scenarios [FY2026-27 to FY2030-31]• 7-year Rate Scenarios [FY2026-27 to FY2032-33]• Outreach Plan• Next Steps WATER DEPARTMENT 2
Water and HF&H Coordination
• HF&H reviewed the Water Department
2025 Report and provided somerevisions
• Water utilized HF&H recommendations
to update FY2026-27 to FY2035-36Financial Plan [10-years] • HF&H prepared 2026 COSA using the
Rate Model with Financial Planexpenses
• HF&H staff to present 2026 COSA
findings
3 WATER DEPARTMENT
Wastewater Rates Background
Wastewater customer classes:

HF&H CONSULTANTS 4
Residential Commercial Industrial
Wastewater Rates Background
Current Rate Structure:• Annual Fixed Charge via the Kern County tax roll • Fixed service charge rate x Single-Family Dwelling Equivalent (SFDE) Ratio • Commercial Surcharge via monthly bills for excessive discharge • Flow in excess x flow surcharge rate
• Industrial Surcharge via monthly bills for excessive discharge • Flow in excess x flow surcharge rate• Loading in excess x loading surcharge rates (BOD and TSS) • BOD – Biochemical Oxygen Demand – waste, pollution use up more oxygen, leaving less for aquatic life when discharged
• TSS – total suspended solids – debris floating in the water requiring filtration/removal HF&H CONSULTANTS 5
Wastewater Rates Background
HF&H CONSULTANTS 6
Rate Structure Residential Commercial Industrial
Each account = 1 SFDE Each account = 1 SFDE(Schools, shops, restaurants, hotels, businesses, hospitals) Single Family = 1 SFDEMulti-Family, mobile Home Park units = 0.75 SFDE each Fixed Service Charge
1 customer class, 3 surcharge rates:• Flow ($/MG)• BOD ($/1,000 lbs)• TSS ($/1,000 lbs) 1 surcharge rate for each of 4 customer classes for WW strength ($/HCF):• Low• Medium• Medium-high• High Monthly Surcharge Not charged
Wastewater Rates Background
HF&H CONSULTANTS 7
Commercial user groups:

Strength
User Group Classification
Schools lowChurches lowSmall Store lowCombination Store & Residence lowLarge Store lowOffice Bldg. lowCar Wash lowSales lowNurseries lowLaundromat lowHospital lowNursing Home lowMedical Lab lowService Shop lowLight & Heavy Industry lowTimber & Produce Plant lowFood Processing lowOS - Commercial/Industrial lowRecreational mediumStorage-Warehouse mediumPetroleum mediumHotel-Motels, RV Parks without restaurant mediumBig Box Store medium highShopping Center w/ Dining medium highHotel-Motels, RV Parks (w/ restaurant) medium highMortuary highFood or Beverage highMarkets (Grocery Store) high Rate Study Process
Comprehensive rate study comprises three steps:

HF&H CONSULTANTS 8
Revenue Requirement Projections
• How much
revenue is needed from sewer rates?
Cost-of-Service Analysis
• How much
revenue is each customer class responsible for?
Rate Design
• How are rates
structured among the customer classes?
Revenue Requirement Projections
HF&H CONSULTANTS 9

3.54%, Sewer Conveyance O&M Costs

0.25%, Stormwater
Conveyance O&M Costs

6.75%, Treatment Plant O&M Costs

8.21%, City Op Expenses¹

81.25%, Net Capital
Expenditures²
$165 Million Revenue Requirement
• 1City Operating Expenses are net of non-operating revenues • 2City Capital Expenditures are net of connection fee revenues and use of reserves What is Cost-of-Service Analysis?
• Fees and charges must be proportional to the cost of providing service• COSA apportions costs to fees and charges in proportion to the service provided
• COSA should be performed periodically
• Any time rate structures are modified
• Fixed service charges or variable surcharges
• When proportions among rate structure components shift • Changes in make-up of the revenue requirement – treatment vs collection vs general/administrative functions
• When proportions among customer categories shift
• Changes in accounts, flows, wastewater loading
HF&H CONSULTANTS 10
Current Revenue Compared with Cost of Service
11 • The Revenue Requirement
is allocated amongfunctions of the wastewatersystem. These figures aredivided by the units ofservice to generate unitcosts • Cost of service is calculated
by multiplying the unit costsby the units of service foreach customer class

HF&H CONSULTANTS
Rate Design: Fixed Service Charge Rate
12 • Rate design utilizes unit costs from
cost-of-service analysis.
• SFDE = Single Family Dwelling
Equivalent
• SFDE fixed charge accounts for
units of service specific to a SingleFamily Dwelling
• Multiple Dwelling Unit Charge is
based on 75% of that of a SingleFamily Dwelling to reflect reducedwastewater discharge patterns formulti-family units.

HF&H CONSULTANTS
Rate Design: Commercial Surcharge Rates
HF&H CONSULANTS 13
• There are no proposed changes to the
existing commercial surchargestructure which has four strengthclassifications. • Customers with higher wastewater
strength concentrations place greaterdemands on the wastewater system.

Current Proposed Change Strength
User Group Surcharge Surcharge in Rate % Difference Classification Schools $3.72 $7.83 $4.11 110.5% lowChurches $3.72 $7.83 $4.11 110.5% lowSmall Store $3.72 $7.83 $4.11 110.5% lowCombination Store & Residence $3.72 $7.83 $4.11 110.5% lowLarge Store $3.72 $7.83 $4.11 110.5% lowOffice Bldg. $3.72 $7.83 $4.11 110.5% lowCar Wash $3.72 $7.83 $4.11 110.5% lowSales $3.72 $7.83 $4.11 110.5% lowNurseries $3.72 $7.83 $4.11 110.5% lowLaundromat $3.72 $7.83 $4.11 110.5% lowHospital $3.72 $7.83 $4.11 110.5% lowNursing Home $3.72 $7.83 $4.11 110.5% lowMedical Lab $3.72 $7.83 $4.11 110.5% lowService Shop $3.72 $7.83 $4.11 110.5% lowLight & Heavy Industry $3.72 $7.83 $4.11 110.5% lowTimber & Produce Plant $3.72 $7.83 $4.11 110.5% lowFood Processing $3.72 $7.83 $4.11 110.5% lowOS - Commercial/Industrial $3.72 $7.83 $4.11 110.5% lowRecreational $4.09 $9.23 $5.14 125.7% mediumStorage-Warehouse $4.09 $9.23 $5.14 125.7% mediumPetroleum $4.09 $9.23 $5.14 125.7% mediumHotel-Motels, RV Parks without restaurant $4.09 $9.23 $5.14 125.7% mediumBig Box Store $5.27 $12.46 $7.19 136.4% medium highShopping Center w/ Dining $5.27 $12.46 $7.19 136.4% medium highHotel-Motels, RV Parks (w/ restaurant) $5.27 $12.46 $7.19 136.4% medium highMortuary $6.82 $15.39 $8.57 125.7% highFood or Beverage $6.82 $15.39 $8.57 125.7% highMarkets (Grocery Store) $6.82 $15.39 $8.57 125.7% high Rate Design: Industrial User Sewer Rates
14 • Industrial Users rates are calculated
using the unit rates determined inthe cost-of-service analysis.

HF&H CONSULTANTS
Flow BOD TSS
Unit Cost of Service $6.86 $0.91 $0.57
per hcf per lb per lb
Proposed Rates $9,166.28 $908.16 $566.65
$/MG $/1,000 lbs $/1,000 lbs
Current $4,232.02 $334.00 $99.92$ Difference $4,934.26 $574.16 $466.73 Rate Scenario Analysis
• Water Department prepared a 15-year operations, maintenance, and infrastructure plan• The proposed [2027-2031] rate model only considers costs associated with a 10-year plan• Revenue generated from the 5-year Sewer User rate increase, sewer connection, and nonoperating are included in the rate model• Rate Scenarios include:
• All enterprise revenue for a 10-year period• All O&M + CIP expenses for a 10-year period• Bond funding and debt service payments • Rate Scenarios assume:
• Plant 3 Expansion from 32 MGD to 40 MGD by 2031• Plant 2 Upgrade/Replacement complete by 2033• Plant 4 Site, Design, and Permitting costs included in 2034-36 WATER DEPARTMENT 15
Rate Scenario 1
Rate at $950 YR1 + 3% Inflation• Year 1 – 2026-27 $950 284%• Year 2 – 2027-28 $979 3%• Year 3 – 2028-29 $1008 3%• Year 4 – 2029-30 $1038 3%• Year 5 – 2030-31 $1069 3%• Bonding Amount Needed:
• $180,000,000
• Monthly “Equivalent”
• $79 in year 1 to $89 in year 5
16 WATER DEPARTMENT
Rate Scenario 2
17 Rate at $700 to $1087 over 5 years • Year 1 – 2026-27 $700 183%• Year 2 – 2027-28 $800 14%• Year 3 – 2028-29 $900 12%• Year 4 – 2029-30 $1000 11%• Year 5 – 2030-31 $1087 9%• Bonding Amount Needed:
• $250,000,000
• Monthly “Equivalent”
• $58 in year 1 to $91 in year 5

WATER DEPARTMENT
Rate Scenario 3
18 Rate at $600 YR1 then increase $100/yr • Year 1 – 2026-27 $600 143%• Year 2 – 2027-28 $700 17%• Year 3 – 2028-29 $800 14%• Year 4 – 2029-30 $900 13%• Year 5 – 2030-31 $1000 11%• Bonding Amount Needed:
• $360,000,000
• Monthly “Equivalent”
• $50 in year 1 to $83 in year 5

WATER DEPARTMENT
Rate Scenario 4
Rate at $475 YR1 then increase $125/yr • Year 1 – 2026-27 $475 92%• Year 2 – 2027-28 $600 26%• Year 3 – 2028-29 $725 21%• Year 4 – 2029-30 $850 17%• Year 5 – 2030-31 $975 15%• Bonding Amount Needed:
• $410,000,000
• Monthly “Equivalent”
• $40 in year 1 to $81 in year 5
19 WATER DEPARTMENT
7-yr Rate Model + Infrastructure Delay
20 • Rate Model assumes 5-years + additional 2-years [2027-2031 + 2032 + 2033]• Infrastructure must be delayed or significant Plant 2 Bond still required.• Plant 2 – Delay Construction - Upgrade/Replacement • Maintain Planning schedule - Prepare Design – Obtain Permits – Shovel Ready• Initial Schedule 2031-2033 Construction Estimate $653 million [escalated]• Delayed Schedule 2033-2035 Construction Estimate $700 million [escalated] • Plant 4 – Delay Project
• Budget for Site/Design/Permits = $190 million [escalated dollars]• Move Planning costs in years 11 – 15 • Construction will beyond limit of the 15-year plan• Plant 3 Expansion capacity will increase to account for 4 additional years of growth Rate Scenario 5
Rate at $475 YR1 then increase $110/yr • Year 1 – 2026-27 $475 92%• Year 2 – 2027-28 $585 23%• Year 3 – 2028-29 $695 19%• Year 4 – 2029-30 $805 16%• Year 5 – 2030-31 $915 14%• Year 6 – 2031-32 $1025 12%• Year 7 – 2032-33 $1135 11%• No Bonding in 10-year Plan• Monthly “Equivalent” • $40 in year 1 to $95 in year 7
21 WATER DEPARTMENT
Rate Scenario 6
Rate at $475 to $1087 over 7 yrs• Year 1 – 2026-27 $475 92%• Year 2 – 2027-28 $575 21%• Year 3 – 2028-29 $675 17%• Year 4 – 2029-30 $775 15%• Year 5 – 2030-31 $875 13%• Year 6 – 2031-32 $975 11%• Year 7 – 2032-33 $1087 11%• Bonding Amount Needed:
• $90,000,000
• Monthly “Equivalent” $40 in year 1 to $91 in year 7
22 WATER DEPARTMENT
Outreach Plan
Community Meetings – Wards 1 - 7• October 6th – Ward 5 - Koman • October 13th – Ward 1 - Arias
• October 15th – Ward 7 - Kaur• October 16th – Ward 2 - Gonzales• October 20th – Ward 3 - Weir• October 21st – Ward 6 - Bashirtash • October 27th – Ward 4 - Smith
• November 13th - Virtual
WATER DEPARTMENT 23
Informational Meetings • August 20th – American Society of Civil Engineers
• October 8th – Water Association of Kern
County
• October 14th – CA Land Surveyors Association
• November 4th – Greater Bakersfield Chamber
• November 4th - Do the Math • To Be Determined – Rotary Club Wastewater Website – Online by October 31
Proposition [Prop] 218 Process
24 Present proposed rate to Council. Obtain approval to begin Prop 218January Mail Prop 218 Notice to usersFebruary
45-day Public Review PeriodFebruary-March
Public Hearing during Regular Council MeetingUpon Council approval, adopt rateMarch-April 2026 Rate incorporated within Kern County Property TaxJuly 1

WATER DEPARTMENT
• Sewer user fees are subject to
Prop 218
• Council is to approve rate and
direct staff to start Prop 218
• Notices are mailed to notify a
user of a proposed fee increase
• Prop 218 allows for a 45-day
review and comment period
• A public hearing is held after the
protest period
• Council will decide on whether
to approve or deny the fee
25 EXHIBIT E. UNDERSTANDING CITY’S SEWER SYSTEM

UNDERSTANDING OUR

SEWER SYSTEM AND RATES
Wastewater Basics
• What is wastewater?
• Everything that goes down the drain.
• What happens to the wastewater after it
leaves my home?
• It goes through the City’s sewer system from your
home to one of the wastewater treatment plants.
• At the plant, wastewater is treated and discharged
for beneficial use.
• City’s Infrastructure
• ~1,100 miles of sewer pipe• 56 sewer lift stations• 2 wastewater treatment plants 2 Lift station
Wastewater Basics
3 Land disposal
Discharge to percolation ponds and farm fields
Wastewater Treatment Plant No. 1
• Where is Plant No. 1?
Decommissioned and no longer in service.
4 HWY 58
Mt. Vernon
Wastewater Treatment Plant No. 2
5 Wastewater Treatment Plant No. 2
6 Wastewater Treatment Plant No. 2
• Initially built in 1939• Has had three significant expansions • 1950• 1977• 1997
• Trickling filter treatment process
7 Design Criteria
Flow [MGD] 25Total Suspended Solids [mg/L] 327Biochemical Oxygen Demand [mg/L] 251 Actuals

11.6 407
433
Wastewater Treatment Plant No. 2
8 Wastewater Treatment Plant No. 2
9 Wastewater Treatment Plant No. 2
10 Wastewater Treatment Plant No. 2
11 Wastewater Treatment Plant No. 3
12 Wastewater Treatment Plant No. 3
City Sewer Rates 13
Wastewater Treatment Plant No. 3
14 Wastewater Treatment Plant No. 3
• Initially built in 1970• Expansions:
• 1984• 1988• 1997• 2007
• Activated sludge treatment process
15 Design Criteria
Flow [MGD] 32Total Suspended Solids [mg/L] 333Biochemical Oxygen Demand [mg/L] 500 Actuals

21.2 306
378
Wastewater Treatment Plant No. 3
16 10203040506070
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Flow (MGD)
Year
WWTP #3 Actual and Future Capacity
Influent at 1,500 houses/yr Influent at 2,400 houses/yr Influent at 4,700 houses/yr Plant Design Development of Sewer User Rate
• Developed a 10-year Infrastructure Master Plan
• Identified maintenance, regulatory and growth projects• Included staffing needed to operate expanded facilities and manage projects
• Developed a 10-year Budget
• Evaluated and analyzed O&M line-item expenses
• Prepared rate studies
• Incorporated costs identified in the master plan• Determined revenue needed to meet O&M and CIP expenses
17 Development of Sewer User Rate
18 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 FY 31-32 FY 32-33 FY 33-34 FY 34-35 O&M $32.2 M $34.0 M $36.4 M $38.4 M $39.8 M $42.2 M $47.3 M $49.3 M $51.4 M $53.7 M CIP $16.0 M $33.0 M $41.3 M $39.9 M $113.6 M $262.0 M $182.4 M $214.5 M $79.1 M $105.5 M Debt Reserve $13.1 M $13.1 M $13.1 M $13.1 M $13.1 M $13.1 M $8.9 M $6.6 M $0 $0 $61.3 M $80.1 M $90.8 M $91.3 M $166.4 M $317.3 M $238.5 M $270.4 M $130.5 M $159.2 M Total Annual Cost Total Revenue $48.9 M $49.0 M $50.0 M $51.3 M $52.3 M $64.8 M $66.0 M $68.9 M $70.9 M $72.2 M Shortfall ($12.4 M) ($31.1 M) ($40.8 M) ($40.0 M) ($114.1 M) ($252.4 M) ($172.5 M) ($201.5 M) ($59.6 M) ($87.0 M) Projected Costs and Revenue
* Amounts shown are from the 2025 Supplemental Report
Sewer User Rate Comparisons
19 Current and Proposed Rates Compared to other Cities/Districts *Rates shown are as of October 1, 2025 $0.00
$200.00$400.00$600.00$800.00
$1,000.00$1,200.00$1,400.00$1,600.00$1,800.00$2,000.00
City / District Monthly RateCity of Bakersfield $20.59City of Fresno $25.75Kern County – KSA $25.75City of Shafter $34.41NORSD $35.08City of Arvin $60.55City of Sacramento $69.35 Early 2025 Prop 218 Efforts
• March 12th – Presented rates options to City Water Board • March 26th – City Council authorized staff to mail out Prop 218 notices• April 11th – Notices mailed out to affected sewer users • April 18th – Plant 2 tour for Councilmembers and Mayor• April 23rd – City Council made referral to staff to rescind notice • April 25th – Media Day at Plant 2
• May 6th – Presented to Greater Bakersfield Chamber of Commerce • May 14th – City Council rescinded notice
20 Lessons Learned
21 Next Steps
• May 2025 – Began working with HF&H Consultants to complete a full cost-of-service analysis• September 2025 – Began community outreach efforts• October 2025 - Community Meetings• October 22nd – Present to Council the cost-of-service analysis results and provide rate options • November 4th – Present to Greater Bakersfield Chamber of Commerce • January 2026 – Council to authorize Prop 218 notice• March 2026 - Council to adopt proposed rate• July 1, 2026 – New rate to go into effect 22 Community Meetings
Meetings begin at 6:00 p.m.• October 6th – Southwest Library • October 13th – South High School Performing Arts Center • October 15th – Ridgeview High School Library• October 16th – Mill Creek Park Community House• October 20th – Chipman Jr. High• October 21st – Kern City Civic Association • October 27th – NOR Recreation Center
• November 13th – Virtual
23 Thank You
24 EXHIBIT F. RATE DEVELOPMENT AND SCENARIOS

RATE DEVELOPMENT

AND SCENARIOS
1 Water and HF&H Coordination
2 • HF&H reviewed the Water Department
2025 Report and provided somerevisions
• Water utilized HF&H recommendations
to update FY2026-27 to FY2035-36Financial Plan [15-years] • HF&H prepared 2026 COSA using the
Rate Model with Financial Plan expenses
• HF&H staff to present 2026 COSA
findings
Wastewater Rates Background
3 Residential Commercial Industrial
Wastewater customer classes:

Wastewater Rates Background
4 Rate Study Process
5 Comprehensive rate study comprises three steps:

Estimates for Major Infrastructure Projects
6 PLANT 3 ExpansionConstructed by 2031
PLANT 2 UpgradeConstructed by 2033• Planning, Design, & Permits • $53 Million
• Construction
• $563 million
• Construction Management
• $90 million
• TOTAL
• $706 Million [escalated $]
• Planning, Design, & Permits
• $14 Million
• Construction
• $152 million
• Construction Management
• $16 million
• TOTAL
• $182 Million [escalated $]
• Site Acquisition:
• $20 million
• Planning, Design, & Permits
• $169.5 Million
• Construction
• $830 million
• Construction Management
• $133 million
• TOTAL
• $1.15 Billion [escalated $]
PLANT 4 New FacilityConstructed by 2039
Current Revenue Compared with Cost of Service
7 • Revenue Requirement
is allocated amongfunctions of thewastewater system.These figures aredivided by the units ofservice to generate unitcosts • Cost of service is
calculated bymultiplying the unitcosts by the units ofservice for eachcustomer class Rate Design: Fixed Service Charge Rate
8 • Rate design utilizes unit costs from
cost-of-service analysis.
• SFDE = Single Family Dwelling
Equivalent
• SFDE fixed charge accounts for
units of service specific to a SingleFamily Dwelling
• Multiple Dwelling Unit Charge is
based on 75% of that of a SingleFamily Dwelling to reflect reducedwastewater discharge patterns formulti-family units.

SFDE Flow BOD TSS
Single Family 1 220 240 280CharacteristicsAnnualize 1 107 161 188 hcf/yr lbs/yr lbs/yr
Unit Costs $98.49 $6.86 $0.91 $0.57
Annual Cost per SFDE $98.49 $736.05 $146.06 $106.32
Fixed Service Charge per SFDE $1,086.92
Fixed Service Charge per Multiple Dwelling Unit $815.19 Rate Model Variables and Considerations
• There are certain triggers that will impact the annual rate and the bonding amount required, these include:
• Modifying the timing of Major Infrastructure Projects• Increase the annual rate to collect more revenue• Plan for rate increases to go beyond the initial 5-year Prop 218, knowing a second 5- year Prop 218 effort will need to occur in 2031
• Supplement the rate revenue with bond funding
• Items to consider that could impact costs and service:
• Delaying infrastructure will increase cost due to escalation and could result in service impacts
• Bonding will place costs on current and future users – share in the costs 9 Original Rate Scenario
10 ASSUMPTIONS:• Plant 3 Expansion - 32 to 40 MGD by 2031• Plant 2 Upgrade/Replacement by 2033• Plant 4 Site/PSE/Permits in 2034 - 2036 Rate at $950 YR1 + 3% Inflation • Year 1 – 2026-27 $950 284%• Year 2 – 2027-28 $979 3%• Year 3 – 2028-29 $1008 3%• Year 4 – 2029-30 $1038 3%• Year 5 – 2030-31 $1069 3%• Bonding Amount Needed:
• $180,000,000
• Monthly “Equivalent”
• $79 in year 1 to $89 in year 5
Rate Scenario – Large Bond
11 ASSUMPTIONS:• Plant 3 Expansion - 32 to 40 MGD by 2031• Plant 2 Upgrade/Replacement by 2033• Plant 4 Site/PSE/Permits in 2034 - 2036 Rate at $475 YR1 then increase $125/yr • Year 1 – 2026-27 $475 92%• Year 2 – 2027-28 $600 26%• Year 3 – 2028-29 $725 21%• Year 4 – 2029-30 $850 17%• Year 5 – 2030-31 $975 15%• Bonding Amount Needed:
• $410,000,000
• Monthly “Equivalent”
• $40 in year 1 to $81 in year 5
Rate Scenario – No Bond
12 ASSUMPTIONS:• Plant 3 Expansion - 32 to 40 MGD by 2031• Plant 2 Upgrade/Replacement by 2035• Plant 4 Site/PSE/Permits in 2037 - 2039 Rate at $475 YR1 then increase $110/yr • Year 1 – 2026-27 $475 92%• Year 2 – 2027-28 $585 23%• Year 3 – 2028-29 $695 19%• Year 4 – 2029-30 $805 16%• Year 5 – 2030-31 $915 14%• Year 6 – 2031-32 $1025 12%• Year 7 – 2032-33 $1135 11%• No Bonding in 10-year Plan• Monthly “Equivalent” • $40 in year 1 to $95 in year 7
Rate Scenario – Moderate Bond
13 ASSUMPTIONS:• Plant 3 Expansion - 32 to 40 MGD by 2031• Plant 2 Upgrade/Replacement by 2034 Rate at $475 to $1087 over 7 yrs
• Plant 4 Site/PSE in 2035-2036
• Year 1 – 2026-27 $475 92%• Year 2 – 2027-28 $575 21%• Year 3 – 2028-29 $675 17%• Year 4 – 2029-30 $775 15%• Year 5 – 2030-31 $875 13%• Year 6 – 2031-32 $975 11%• Year 7 – 2032-33 $1087 11%• Year 8 – 2033-34 $1120 3%• Year 9 – 2034-35 $1153 3%• Year 10 – 2035-26 $1188 3%• Bonding Amount Needed:
• $270,000,000
• Monthly “Equivalent” $40 in yr1 to $99 in yr10
Proposition [Prop] 218 Process
14 Present proposed rate to Council. Obtain approval to begin Prop 218February 11 Mail Prop 218 Notice to usersFebruary 27
45-day Public Review PeriodMarch - April
Public Hearing during Regular Council MeetingUpon Council approval, adopt rateApril 22 2026 Rate incorporated within Kern County Property TaxJuly 1 • Sewer user fees are subject to
Prop 218
• Council is to approve rate and
direct staff to start Prop 218
• Notices are mailed to notify a
user of a proposed fee increase
• Prop 218 allows for a 45-day
review and comment period
• A public hearing is held after the
protest period
• Council will decide on whether
to approve or deny the fee
15 THANK YOU
EXHIBIT G. COUNCIL – SEWER RECOMMENDATIONS

SEWER USER RATE

INCREASE UPDATE AND RECOMMENDATIONS
1 February 11, 2026
Presentation Outline
• 2025 Sewer User Rate Timeline• Rate Scenarios presented during Community meetings• AECOM Alternatives Evaluated• Recommended Sewer User Rate for Proposition 218 process• Next Steps WATER DEPARTMENT 2
2025 Sewer User Rate Timeline
• March: Staff proposed Sewer User rate
increase to $950 [no bond]
• May: HF&H was hired to support staff• July: AECOM began Plant Evaluations• October:
• 1st round of Community Meetings began
• Staff prepared 2026 Sewer Rate & Fees Report• HF&H proposed $1087 COS [no bond]• Water staff presented 6 rate scenario • November: AECOM provided initial plant
evaluation findings to Water staff
• December: 2nd round of Community
meetings began
3 Community Meeting - Rate Development & Scenarios
• Original Rate Scenario Increase rate to $950 + 3%/yr for 5-yrs + $180 mil Bond [October 22 - Rate Scenario 1]
• Large Bond Scenario Increase rate to $475 + $125/yr for 5-yrs + $410 mil Bond [October 22 - Rate Scenario 4]
• No Bond Scenario Increase rate to $475 + $110/year for 7-years [October 22 - Rate Scenario 5]
• Moderate Bond Scenario Increase rate to $475 + $100/yr for 7-yrs + $270 mil Bond [October 22 - Rate Scenario 6]
WATER DEPARTMENT 4
Upgrade Plant 2 + Expand Plant 3
Eliminate Plant 2 + Centralize at Plant 3Eliminate Plant 2 + Build Plant 4 Centralize Treatment at new Plant 4
1 2
3 4
AECOM Alternatives Evaluated

MAJOR INFRASTRUCTURE
2050 PLAN
6 Replace aged equipment,
flare system and headworks to improve safety, efficiencies, and odor control.

Upgrade Plant 2 - replace
trickling filter media, electrical and mechanical equipment, admin/shop/warehouse facilities Expand plant from 32 to 40
MGD - Maintain MLE process
Construct New 25 MGD Plant -
Plant 4 @ Plant 2 [S. Planz] - Utilize MLE Process
PLANT 4
Major Infrastructure Cost Comparisons
TOTAL $40,300,000
TOTAL $158,500,000 TOTAL $381,000,000TOTAL $569,000,000 TOTAL $241,000,000TOTAL $796,400,000 TOTAL $528,000,000TOTAL $1,523,900,000 TOTAL $1,190,300,000 WWTP2 Replace WWTP2 Phase 0WWTP4 New Plant WWTP4 New Plant @2 ORIGINAL 2026 Cost Estimates RECOMMENDED 2026 Cost Estimates WWTP3 Phase 0
WWTP3 Expand-40 WWTP3 Expand-40
7 PLEASE NOTE: The RECOMMENDED 2026 Cost Estimates, shown above and provided during the February 11, 2026, Council meeting, were developed during the AECOM workshops in January 2026. In late February, AECOM provided updated analysis and estimates that are analyzed in the 2026-2030 Report and are included in Exhibit I.

Updated Major Infrastructure Schedule
FY 2028-29 WWTP3 Phase 0 Construction + CMFY 2031-33 WWTP2 Phase 0 Construction + CMFY 2033-36 WWTP3 Expand-40 Construction + CMFY 2036-39 WWTP4 New Plant @2 Construction + CMFY 2039-40 WWTP4 New Plant @2 Start-up operations with WWTP2 8 RECOMMENDED RATE
Based on Revised AECOM Estimates
9 • Year 1 – 2026-27 $475 92%
• Year 2 – 2027-28 $575 21%• Year 3 – 2028-29 $675 17%• Year 4 – 2029-30 $775 15%• Year 5 – 2030-31 $875 13%• Year 6 – 2031-32 $975 11%• Year 7 – 2032-33 $1005 3%• Year 8 – 2033-34 $1035 3%• Year 9 – 2034-35 $1065 3%• Year 10 – 2035-26 $1095 3%• Bonding Amount anticipated:
• $150,000,000
PROP 218 REQUIRED
Recommended Rate
10 Based on AECOM Estimates & Schedule
for Major Infrastructure
11 Recommended Rate - Revenue and Expenses
Original Rate [$950] verses Recommended Rate

YEAR YEAR
FY 2026-27 950 $ 284% FY 2026-27 475 $ 92%
FY 2027-28 979 $ 3% FY 2027-28 575 $ 21%
FY 2028-29 1,008 $ 3% FY 2028-29 675 $ 17%
FY 2029-30 1,038 $ 3% FY 2029-30 775 $ 15%
FY 2030-31 1,069 $ 3% FY 2030-31 875 $ 13%
FY 2031-32 $ 3% 1,072 BOND $180 Million FY 2031-32 $ 11% 975 BOND $150 MillionFY 2032-33 1,104 $ 3% FY 2032-33 1,005 $ 3% FY 2033-34 1,137 $ 3% FY 2033-34 1,035 $ 3%
FY 2034-35 1,171 $ 3% FY 2034-35 1,065 $ 3%
FY 2035-36 1,206 $ 3% FY 2035-36 1,095 $ 3%

ORIGINAL RATE RECOMMENDED RATE
2026 Proposition 2182031 Proposition 218
2026 Proposition 2182031 Proposition 218
12 Rate Comparison to other Cities
13 Next Steps
14 Present proposed rate to Council. Obtain approval to begin Prop 218February 11 Mail Prop 218 Notice to usersFebruary 27
45-day Public Review PeriodMarch - April
Public Hearing during Regular Council MeetingUpon Council approval, adopt rateApril 22 2026 Rate incorporated within Kern County Property TaxJuly 1 • Council to direct staff to start
Prop 218 using RecommendedRate
• Staff and HF&H to finalize 2026
Sewer Rate and Fees Report andCost of Service Analysis
• Notices mailed to notify a user
of Recommended Rate increase
• Prop 218 allows for a 45-day
review and comment period
• Public hearing to be held April
22 during regular Council
• Council will decide on whether
to approve or deny the fee
15 THANK YOU
EXHIBIT H. PROPOSITION 218 NOTICE
PROPOSITION 218 NOTIFICATION:

PROPOSED ANNUAL RATE INCREASE FOR SEWER SERVICES

WHY BAKERSFIELD NEEDS RATE INCREASES
Bakersfield provides comprehensive wastewater (sewer) service to protect and enhance the environment and to safeguard the health, safety, and welfare of the community. This service is financially self-sufficient and is not supported by General Fund revenues. The City’s rate structure ensures that the cost of service is fairly and equitably recovered from all customer groups. The proposed rate increases are necessary to fund operational and capital costs and to ensure sufficient reserves to meet long-term needs.

HOW TO FILE A WRITTEN PROTEST
Property owners or tenants of the affected parcels may submit a written protest against the proposed sewer rate increase. Only one protest per parcel is allowed.

WRITTEN PROTESTS MUST:
• State that the identified property owner opposes the proposed sewer rates
• Provide the property address and assessor’s parcel number • Include an original signature from the property owner or tenant submitting the protest – an electronic signature CANNOT be counted
Under California Government Code section 53759, there
is a 120-day statute of limitations for challenging any new, increased, or extended fee or charge. This statute of limitations applies to the sewer service rates proposed in this notice. For reasonable ADA and Title VI accommodations, interpreting services, and materials in other languages, please contact the City Clerks Office at 661-326-3767. This service is free.

To view the report,
you can go to
BakersfieldCity.us or
scan the QR code
WEDNESDAY, APRIL 22, 2026
at 5:15 P.M.

City Hall South - Council Chambers
1501 Truxtun Avenue

MAIL WRITTEN PROTESTS
City of Bakersfield
City Clerk
RE: Protest – Proposed Sewer Rates
1600 Truxtun Avenue
Bakersfield, California 93301
Protests must be received by the City
before the public hearing concludes.

PUBLIC HEARING ON PROPOSED SEWER RATE INCREASE
LEARN MORE!
SEWER USER RATE is included in the property tax bill
PROPOSITION 218

HOW WERE ANNUAL RATES
CALCULATED?

COMPREHENSIVE RATE STUDY
In 2025, the City had AECOM, a local consultant with experience in wastewater, conduct a comprehensive evaluation of the City’s sewer system, identifying deficiencies due to aging infrastructure and technology. In 2026, the city utilized information from this engineering evaluation and prepared a 2026-2030 Sewer Rates and Fees Report, with support from HF&H consultants, an independent third-party firm. The study provides a detailed review of costs and the rate structure needed to meet those costs and continue providing safe and reliable sewer maintenance services.

The proposed service fee increase was calculated by evaluating the overall cost of providing sewer services to city residents and identifies future bonding needs and payments. These costs are divided proportionally among properties receiving sewer services, as required by Proposition 218. Customers will be charged only for the cost of providing sewer services to their property.

THE REASONS FOR THE RATE INCREASE INCLUDE:
• Covering the cost of operating and maintaining the sewer system • Complying with new regulations
• Funding essential projects to repair, maintain, and properly operate the sewer system infrastructure to keep the system running smoothly The City of Bakersfield provides sewer service to more
than 400,000 people, 106,000 parcels within the
City, including 8,200 businesses, as well as an additional 13,600 parcels outside City boundaries.

CITY’S SEWER INFRASTRUCTURE
~1,100 miles
of sewer pipe
56 sewer
lift stations
2 wastewater
treatment plants
~1,000 miles
of storm drainpipes 387 basins
36 storm
lift stations

ABOUT SEWER TREATMENT PLANTS
• Plant 2 Upgrade: Initially built in 1939, last updated in 1997 to a trickling filter system • Plant 3: Constructed in 1972, last updated in
2010 to convert to activated sludge treatment

MAJOR INFRASTRUCTURE

PROJECTS INCLUDE
• Plant 2 Upgrade
• Plant 3 Expansion
Service Rate Changes - Effective July 1, 2026

PROPOSED CHANGES TO

COMMERCIAL RATES
The City of Bakersfield will implement new software for sewer surcharge billing. Once the system is live, sewer surcharges will no longer be calculated based on prior-year water consumption.

Instead, billing will be based on current monthly water usage.

CURRENT COMMERCIAL RATE
Commercial sewer rates vary by customer class or business type.

Sewer fees for commercial customers include a flat rate and surcharges. Commercial customers are charged surcharges only when actual water flow exceeds the amount covered by their flat rate charges. Sewer surcharges for commercial customers is currently based on prior calendar-year water consumption.

CHANGES TO RESIDENTIAL RATES
Residential sewer rates are proposed to increase from $247.13 to $475.00 fiscal year 2026-27, and then increase by $100 for the following four years. Residential customers pay a flat sewer rate. The sewer fee is collected annually on the property tax bill.

In the first year, the rate goes up by less than $20 per month (less than $5 weekly).

Plant 2
Plant 3
WHAT DO SEWER RATES PAY FOR?
$ $
Operations & Preventive
Maintenance: 60%
Condition Assessment
& Repair/Rehabilitation: 34%
24-hour
Emergency
Response: 3%
Administration
Costs: 3%

PROPOSED INCREASES TO SEWER
RATES FOR FISCAL YEARS 2026-27
THROUGH 2030-31
Flat Rate - Collected on Property Tax Bill
Strength
Classification
Current FY 26/27 FY 27/28 FY 28/29 FY
29/30
FY 30/31
Single Family
Residence $247.13 $475.00 $575.00 $675.00 $775.00 $875.00 Multiple
Dwelling $185.35 $356.25 $431.25 $506.25 $581.25 $656.25 Commercial
Low Strength $247.13 $475.00 $575.00 $675.00 $775.00 $875.00 Commercial
Medium
Strength
$247.13 $475.00 $575.00 $675.00 $775.00 $875.00
Commercial
Medium-High
Strength
$247.13 $475.00 $575.00 $675.00 $775.00 $875.00
Commercial
High Strength $247.13 $475.00 $575.00 $675.00 $775.00 $875.00 Surcharge per Hundred Cubic Foot of Water Consumed
Strength
Classification Current FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 Commercial
Low Strength $1.89 $3.26 $3.95 $4.64 $5.33 $6.02
Commercial
Medium
Strength
$2.08 $3.80 $4.60 $5.40 $6.20 $7.00
Commercial
Medium-High
Strength
$2.68 $5.06 $6.13 $7.20 $8.27 $9.34
Commercial
High Strength $3.46 $6.19 $7.49 $8.79 $10.09 $11.39
Permitted Industrial User Sewer Fee
Parameter Current FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 Flow / Million
Gallons $2,150.81 $3,862.30 $4,675.42 $5,488.54 $6,301.66 $7,114.78 Biochemical
Oxygen
Demand
(BOD) /
1,000 pounds
$169.94 $351.64 $425.67 $499.70 $573.73 $647.76
Total
Suspended
Solids (TSS) /
1,000 pounds
$102.25 $219.41 $265.60 $311.79 $357.98 $404.17
EXHIBIT I. AECOM MAJOR INFRASTRUCTURE

TECHNICAL MEMO
AECOM
5001 E. Commercenter Dr., Suite 100
Bakersfield, CA 93309
Technical Memorandum

Page 1 of 14 ends

Bakersfield City CouncilApril 22, 2026

Bakersfield City Council
April 22, 2026