This is a purely policy matter before the City Council, and this item is intended to provide an open-ended discussion on the matter. Should the City Council decide provide a drone show for Winter Fest, staff request direction to return with bids. If given this direction, staff will return with the bids and a contract for the City Council’s consideration.
RECOMMENDATION
That the City Council discuss this matter and direct staff as appropriate. 310 of 314
CITY OF BUELLTON
City Council Agenda Staff Report
City Manager Review: SW
Council Agenda Item No.: 12
To: The Honorable Mayor and City Council
From: Rose Hess, Public Works Director
Meeting Date: June 25, 2026
Subject: Review of the Fiscal Year 2026/27 Water and Wastewater Rate Increases
______________________________________________________________________________
BACKGROUND
On June 10, 2025, the City Council adopted Resolution No. 25-23, which approved the monthly water and wastewater fees for a period of 5 years (2025-2030). On September 25, 2025, the City Council adopted Resolution No. 25-27, which approved an amendment to the monthly wastewater fees and implemented a Low-income Program.
During the meeting, Council requested to review the status of the Enterprise Funds prior to implementation of the next year’s proposed increases become effective (programmed as July 1).
Attachment 1 shows the City’s Final Adopted Rate Schedule for Water and Wastewater Fees, showing the increases for each of the next 4 years.
Attachment 2 shows the Projected Operating results from the Adopted Final Study. The “Proposed 2026” column shows the rates anticipated for 2026 based on implementation of the 2025 rates. The inserted numbers highlighted in orange show the estimated 25-26 revenues and expenses for water and wastewater. These numbers were presented to you at the June 11, 2026, Council meeting by the Finance Director. These end of the year estimates are still lower than the “Proposed 2026” projected in the Adopted Final Study.
Note that the revenue for Sewer is still less than the expenses.
In order to continue toward the goal of building reserves that will ensure the long-term health of the Enterprise Funds, staff recommend that Council approve the scheduled rate increase for FY 26/27.
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Water/Wastewater Rates Page 2 June 25. 2026
RECOMMENDATION
Staff recommend that the City Council approve the second-year implementation for the water and wastewater rate increases, effective July 1, 2026.
ATTACHMENTS
Attachment 1 – Adopted Rates and Future Increases
Attachment 2 – Projection Comparisons
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Monthly Fixed Sewer Charge: Current Rates
Cargo Fijo Mensual de Alcantarillado: Tarifas
Actuales
(Classification/Clasificación ) 2025 2026 2027 2028 2029 2030 Single Family Dwelling-Vivienda Unifamiliar $ 30.45 $ 58.96 $ 82.54 $ 94.93 $ 99.67 $ 103.66 Multiple Dwelling - Vivenda Múltiple $ 30.45 $ 42.54 $ 59.56 $ 68.49 $ 71.92 $ 74.80 Multi Family - Townhomes & Condos $ 30.45 $ 42.54 $ 59.56 $ 68.49 $ 71.92 $ 74.80 Multi Family - Apts $ 30.45 $ 42.54 $ 59.56 $ 68.49 $ 71.92 $ 74.80 Multi Family - Per Additional Unit $ 21.31 $ 42.54 $ 59.56 $ 68.49 $ 71.92 $ 74.80 Mobile Home Park- Parques de casas móviles $ 30.45 $ 46.62 $ 65.27 $ 75.06 $ 78.81 $ 81.96 Mobile Home Parks - Per Add'l Unit $ 15.22 $ 23.31 $ 32.64 $ 37.53 $ 39.41 $ 40.98 Motels - Service $ 60.72 $ 33.80 $ 47.31 $ 54.41 $ 57.13 $ 59.42 Restaurant - Service $ 60.72 $ 33.80 $ 47.31 $ 54.41 $ 57.13 $ 59.42 Fast Food/Bar - Service $ 60.72 $ 33.80 $ 47.31 $ 54.41 $ 57.13 $ 59.42 Theaters/Banquet - Service $ 60.72 $ 33.80 $ 47.31 $ 54.41 $ 57.13 $ 59.42 Camper/Trailer Parks (Unmetered) $ 60.72 $ 33.80 $ 47.31 $ 54.41 $ 57.13 $ 59.42 Camper/Trailer Parks - Per Add'l Space $ 15.22 $ 33.80 $ 47.31 $ 54.41 $ 57.13 $ 59.42 Camper/Trailer Parks (Metered) $ 60.72 $ 33.80 $ 47.31 $ 54.41 $ 57.13 $ 59.42 Schools $ 29.98 $ 33.80 $ 47.31 $ 54.41 $ 57.13 $ 59.42 Churches (w/o School) $ 29.98 $ 33.80 $ 47.31 $ 54.41 $ 57.13 $ 59.42 Other Commercial - Retail $ 68.44 $ 33.80 $ 47.31 $ 54.41 $ 57.13 $ 59.42 Industrial Accounts - Normal $ 46.76 $ 33.80 $ 47.31 $ 54.41 $ 57.13 $ 59.42 Industrial Accounts - High $ 46.76 $ 33.80 $ 47.31 $ 54.41 $ 57.13 $ 59.42 (meter size) 2025 2026 2027 2028 2029 2030 City Accounts $ 60.72 $ 33.80 $ 47.31 $ 54.41 $ 57.13 $ 59.42 5/8" & 3/4" $ 35.51 $ 37.83 $ 40.30 $ 45.13 $ 49.65 $ 54.61
1.0" $ 96.89 $ 94.57 $ 100.74 $ 112.83 $ 124.12 $ 136.53 Sewer Volumetric Rate Current Rates
1.5" $ 191.90 $ 189.14 $ 201.49 $ 225.67 $ 248.23 $ 273.06 Tasa Volumetrica - Alcantarillado
2.0" $ 301.60 $ 302.62 $ 322.38 $ 361.07 $ 397.17 $ 436.89 per 100 cu.ft. (HCF)
3.0" $ 646.19 $ 567.41 $ 604.47 $ 677.00 $ 744.70 $ 819.17 (Classification, per HCF of water used) 2025 2026 2027 2028 2029 2030
4.0" $ 1,176.31 $ 945.69 $ 1,007.44 $ 1,128.34 $ 1,241.17 $ 1,365.29 Residential - included in Monthly Fixed Charge $ - $ - $ - $ - $ - $ -
6.0" $ 2,511.90 $ 1,891.38 $ 2,014.89 $ 2,256.67 $ 2,482.34 $ 2,730.58 Residencial - incluido en el Cargo Fijo Mensual $ - $ - $ - $ - $ - $ -
8.0" $ 3,364.78 $ 3,026.21 $ 3,223.82 $ 3,610.68 $ 3,971.75 $ 4,368.92 Motels - Service $ 6.05 $ 4.36 $ 6.10 $ 7.01 $ 7.37 $ 7.66 Restaurant - Service $ 6.05 $ 4.36 $ 6.10 $ 7.01 $ 7.37 $ 7.66 Add'l Dwelling Unit / Fast Food/Bar - Service $ 6.05 $ 4.36 $ 6.10 $ 7.01 $ 7.37 $ 7.66 Vivienda Adicional Theaters/Banquet - Service $ 6.05 $ 4.36 $ 6.10 $ 7.01 $ 7.37 $ 7.66 Camper/Trailer Parks (Unmetered) $ - $ - $ - $ - $ - $ - Volumetric Rate - Water / Camper/Trailer Parks (Metered) $ 6.05 $ 4.36 $ 6.10 $ 7.01 $ 7.37 $ 7.66 Tasa Volumetrica - Agua Schools $ 0.56 $ 1.66 $ 2.33 $ 2.68 $ 2.81 $ 2.92 per 100 cu.ft. (HCF) Churches (w/o School) $ 6.05 $ 1.66 $ 2.33 $ 2.68 $ 2.81 $ 2.92 Other Commercial - Retail $ 6.05 $ 4.36 $ 6.10 $ 7.01 $ 7.37 $ 7.66 Industrial Accounts - Normal $ 7.26 $ 1.54 $ 2.15 $ 2.47 $ 2.60 $ 2.70 Industrial Accounts - High $ 7.26 $ 6.95 $ 9.73 $ 11.19 $ 11.75 $ 12.22 City Accounts $ - $ 1.66 $ 2.33 $ 2.68 $ 2.81 $ 2.92
(meter size) 2025 2026 2027 2028 2029 2030
4.0" $ 19.29 $ 13.77 $ 14.67 $ 16.43 $ 18.08 $ 19.88 Temporary Connection/Fire Hydrant Permit Current Rates
6.0" $ 28.93 $ 27.55 $ 29.34 $ 32.87 $ 36.15 $ 39.77 Monthly Rental Fee (fully earned) $ 50.00 $ 302.62 $ 322.38 $ 361.07 $ 397.17 $ 436.89
8.0" $ 38.58 $ 44.07 $ 46.95 $ 52.59 $ 57.84 $ 63.63 Volumetric Rate per 100 cu.ft. $ 12.69 $ 4.86 $ 5.18 $ 5.80 $ 6.38 $ 7.01 Montly Fixed Charge -
Sprinklers (Fire):
Current Rates Projected FY Ending June 30 per Res. No. 25-23 Attachment 6 Cargo Fijo MensualRociadoresTarifas
Actuales
Año fiscal concluido el 30 de junio según la Resolución numero 25-23, Anexo 6
$ 2.98 3.24 3.45 3.86 4.25
$ 24.86 37.83$ 40.30$ 45.13$ 49.65$
Monthly Fixed Water
Charge:
Current Rates Projected FY Ending June 30 per Res. No. 25-23 Attachment 6 Cargo Fijo Mensual (por
metro cuadrado)
Tarifas
Actuales
Año fiscal concluido el 30 de junio según la Res. No. 25-23, Anexo 6
Projected FY Ending June 30 per Res. No. 25-23 Attachment 6 Año fiscal concluido el 30 de junio segun la Res. No. 25-27, Anexo A
Projected FY Ending June 30 per Res. No. 25-27 Exhibit A Projected FY Ending June 30 per Res. No. 25-23 Exhibit A Pg 6
54.61$
4.67 Tarifas
Actuales
Año fiscal concluido el 30 de junio según la Res. No. 25-23, Anexo A
Important Notice: City of Buellton
Water & Sewer Rate Increases
Effective November 1, 2025, the City will implement
the first of five scheduled rate increases for water and sewer services, approved during the Public Hearing
July 10, 2025, with a sewer rate adjustment approved
on September 25, 2025.
Low-Income Discount Program
The City Council has approved a 20% discount on water and sewer charges for qualifying low-income households enrolled in the CARE program through
PG&E or SoCal Gas.
How to Apply for Low-Income Discount: Visit our City
website, use the Online Billing Portal, submit the
paper application mailed to residential accounts
mid-October, or Pick up an application at City Hall.
Questions? Call 805-686-0137
Aviso Importante: Ciudad de Buellton
Cambios en Tarifa de Agua y Alcantarillado
A partir del 1 de noviembre de 2025, la Ciudad
implementará el primero de cinco aumentos programados en las tarifas de agua y alcantarillado, aprobados en la audiencia pública del 10 de julio de 2025, con un ajuste adicional a las tarifas de alcantarillado el 25 de septiembre de 2025. Estás nuevas tarifas se aplicarán a todas las facturas emitidas a partir del 1 de noviembre de 2025.
Programa de Descuento para Ingresos Limitados
El Concejo Municipal ha aprobado un descuento del 20% en los cargos de agua y alcantarillado para los hogares de bajos ingresos que estén inscritos en el programa CARE de PG&E o SoCal Gas.
Cómo Solicitarlo para la Programa de Descuento para
Ingresos Limitados: Visite nuestro sitio web, use el Portal de Facturación, envíe la solicitud en papel enviada a cuentas residenciales a mediados de Octubre, también puede recoger una solicitud en nuestra oficina.
¿Preguntas? Llame al 805-686-0137
Scan QR Code to view online: ATTACHMENT 1
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l!I
2,878,651
1,585,910
1,920,081
2,342,245
ATTACHMENT 2
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Navigation
CITY OF BUELLTON, CA
WATER & WASTEWATER SYSTEM
PROJECTED OPERATING RESULTS· COMBINED SYSTEM
Ill 0escnption
REVENUES
0 1
2 Other O12:eroti~ Revenues
3 Water Connection Fees
4 Sewer Connection Fees
5 Miscellaneous Revenues
Other Non-O~oting Revenues
6 Interest
7 Total Revenues
Current Exp_enses
8 005 • Sewer Fund
9 006 • Wastewater Ca 'fal
10 020 • Water Fund
11 021 • Water CaeJal
12 Total CtKrent Exe;enses
13 Income AvoiJable for Debt Service
DEBT SERVICE
Subordinate Indebtedness
14 General O atioo Bond
15 Total Subordinate Indebtedness
New Debt
16 Water S~ tem lme;ovements - Rural Dev. Loan
17 Water S~ tem lme;ovements - SRF Loa n
18 Water S~ tem lme;ovements - lnstoDment Debt
19 Water S~ tem lme;ovements - Revenue Bond
20 Sewer S~tem lme;ovements - Rural Dev. Loan
2 1 Sewer S~tem lme;ovements - SRF Loa n
22 Sewer S~tem lme;ovements - lnstoDment Debt
23 Sewer S~ tem lme;ovements - Revenue Bond
24 Total New Debt
25 Total Indebtedness
26 Net Results of O~ otions
27 caeitol OUtlal
28 Transfers out
29 Transfers In
30 Net Results
- - t. - " · · - ····- --- · · ··· -·· '""- - · · · ~- - --- ·· - - --- 1 I , I ,
Fiscal Year Encfin June 30
4,287.834
3,289,065
I I I I I I I
51,420 5 1,420 5 1,420 5 1,420 5 1,420 51.420 51.420
125,000 125.000 125.000 125.000 125.000 125,000 125,000 ~ 3,998,609 $ 4,026,0 16 ~ 4,899,483 ~ 5,96 1.319 ~ 6,720,802 ~ 7,249,395 ~ 7,753.319 i 1,436,182 i 1,497,0 19 i 1,497,0 19 i 1,552,335 I 1,609,8 11 I 1.669,540 I 1,731.615 2,087,936 2,076.54 1 2,076.54 1 2,188.848 2.272154 2,338,329 2,436.930 ~ 3,524. 118 $ 3,573,560 ~1 ~ 3,741.183 ~ 3,881.965 ~ 4,007,869 ~ 4,168.545 ~ 474,491 $ 452,456 ~ 1,325,923 ~ 2,220.136 ~ 2,838.837 ~ 3,241.526 ~ 3,584,774 201.463
201.463
I I I I I I I
~ $ ~ ~ ~ ~ ~
~ 158,962 $ 166,801 ~ 166,801 ~ 174,957 ~ 156,243 ~ 192,274 ~ 201.463 ~ 315,529 $ 285,655 ~ 1.159, 122 ~ 2,045.179 ~ 2,682.594 ~ 3,049.252 ~ 3,383.311 I (208.000! I (49.440! I (49.440! I {105.969! I {107.65 1! I {54.024! I {55,645! ~ 107,529 $ 236,2 15 ~ 1.109,682 ~ 1,939,2 10 ~ 2,574,943 ~ 2,995,228 ~ 3,327.666 k~~~~ .,_,