NOTICE IS HEREBY GIVEN that the City of Fairfield will hold a Public Hearing on November 4, 2025, at 6:00 p.m. in the City Council Chamber, located at 1000 Webster Street, Fairfield, CA 94533 to consider the adoption of proposed water rate increases. The City last adjusted water rates on January 1, 2021 and has not adopted any rate increases for over 4 -1/2 years despite substantial increases in operating expenses over this period . The City is proposing to gradually increase its water rates over the next five years to provide adequate funding for operations, debt service and high-priority capital improvements needed to support safe and reliable service.
All interested persons are invited to attend the Public Hearing. The Fairfield City Council will hear and consider all written and oral comments regarding the proposed water rates at the Public Hearing . In the absence of a majority protest (described below), the City Council may adopt water rates up to the levels set forth in this Notice. If adopted, the proposed water rates would become effective starting January 1, 2026.
Llame al (707) 428-7465 para solicitar esta información en español https://www.fairfield.ca.gov/government/pump
History of Investment in Water System
The City has a long history of investing in its water system to ensure uninterrupted service and high-quality water for our community. The City has worked hard to secure a reliable supply of water and put into place the infrastructure and treatment capacity to serve our residents and businesses. The City’s water system includes over 375 miles of water transmission and distribution pipelines, 12 water storage tanks , 14 pump s tations, and two water treatment plants including the North Bay Regional Treatment Plant, which is jointly owned by the Cities of Fairfield and Vacaville.
Sources of supply include untreated water purchased from Solano County Water Agency and the Solano Irrigation District. Like many regional agencies, the City has a lot of aging water infrastructure that will require rehabilitation and replacement in upcoming years.
Why Water Rate Increases are Necessary
Fairfield’s water service charges for a typical single family home are currently among the lowest in the region. Since water rates were last adjusted in 2021, the City has faced significant water system operating cost increases without any corresponding rate adjustments. Additionally, the City recently completed an independent engineering evaluation of the water system that identifies substantial funding needs of the City’s aging water system infrastructure . The proposed rate increases are needed to:
Catch Up & Keep Up with Operating Cost Inflation – The City has experienced substantial increases in operating expenses over the past 4 -1/2 years. Costs have increased for staffing, electricity, insurance, professional services and other expenses. The proposed rates are designed to both catch up with cost inflation from recent years and address escalating costs of service which are expected to rise by 3-4% per year. Fund Capital Improvement Needs of Aging Facilities – Many of the City’s water pipelines have been in service from 50 to over 80 years and are approaching the end of their useful lives. Other infrastructure, including water storage tanks and treatment plants, are old and in need of substantial improvements to address existing deficiencies and support safe and reliable service. A recently-completed Public Utility Master Plan (PUMP) was developed by West Yost, an independent engineering firm that specializes in water resources and infrastructure.
The PUMP master plan identifies $340 million of capital improvements needed over the next 25 years including over $140 million of high-priority needs recommended for completion over the next 5-6 years. Near-term funding needs include almost $80 million of water system storage and distribution improvements, $15 million of Waterman Treatment Plant improvements, and $53 million for Fairfield’s share of capital needs for upgrading and expanding the aging North Bay Regional Water Treatment Plant. Information about the City’s PUMP water master plan is available on the City’s website at ___________________________. Support Compliance with Debt Service Legal Covenants – Rate increases are also needed to support compliance with legal covenants that secure the water utility’s outstanding debt.
City of Fairfield
Notice of Public Hearing
For Proposed Water Rate Increases
DRAFT
Proposed Water Rates
The City is proposing to phase in water rate increases over the next five years and adopt a new water rate schedule as shown below. The proposed rates account for both overall annual rate increases as well as a number of modifications to the City’s water rate structure designed to align rates with the cost of providing service and ensure rates are equitably applied to all customers. The proposed rates reflect approximately 8% annual increases, however the impacts in the first year will vary based on customer class and water use due to the proposed modifications to the rate structure. The City bills monthly for water service. Proposed water rates include the following components:
Fixed Service Charges: These charges are billed per day and help recover the City’s fixed costs of providing water service. Residential customers pay fixed service charges per dwelling unit. Non-Residential customers pay fixed charges based o n the size of each customer’s water meter. Large Industrial accounts pay fixed charges determined on a case-by-case basis according to each customer’s contract and/or water demand. Volume Charges: These charges are billed based on each customer’s metered water consumption. Residential Volume Charges vary based on elevation zone. Most residential customers are in Zones 1-2. As proposed, Non- Residential customers would pay a uniform rate for all water use consistent with the Residential rate for Zones 1-2. The City’s Volume Charges are billed in units of one hundred cubic feet (hcf). One hcf equals approximately 748 gallons. For example, the proposed rate of $2.79 per hcf effective January 1, 2026 (for Residential Zones 1- 2 and Non-Residential accounts) equates to $0.37 per hundred gallons, or a little less than 4/10ths of a cent per gallon.
Hydropneumatic Pump Surcharge: This charge recovers costs for pumping to a pressurized zone that serves a small number of Non-Residential customers and is billed based on metered water use.
Note: Propose rates for customers outside Fairfield’s boundaries in the Willotta Oaks Subdivision shall not exceed the costs of service based on charges levied by the City of Valle jo for providing water service to these customers. See Current
Water Jan-1 Jan-1 Jan-1 Jan-1 Jan-1
Rates 2026 2027 2028 2029 2030
RESIDENTIAL
Per Dwelling Unit $0.97 $1.04 $1.12 $1.21 $1.31 $1.41
NON-RESIDENTIAL
Includes commercial, institutional, irrigation and other non-residential accounts Meter Size
Up to 3/4" $1.46 $1.56 $1.68 $1.82 $1.97 $2.12
1" 2.55 2.60 2.80 3.03 3.28 3.53 1-1/2" 5.63 5.20 5.60 6.05 6.55 7.05 2" 9.91 8.32 8.96 9.68 10.48 11.28 3" 22.33 16.64 17.92 19.36 20.96 22.56 4" 39.59 26.00 28.00 30.25 32.75 35.25 6" 89.09 52.00 56.00 60.50 65.50 70.50 8" 158.76 83.20 89.60 96.80 104.80 112.80 LARGE INDUSTRIAL 1,699.94 1,825.68 1,971.73 2,129.47 2,299.83 2,483.82
RESIDENTIAL
Zones 1-2 $2.45 $2.79 $3.01 $3.25 $3.51 $3.79
Zones 3-5 3.04 - 3.63 3.82 4.13 4.46 4.82 5.21 NON-RESIDENTIAL 2.59 - 3.05 2.79 3.01 3.25 3.51 3.79 Includes commercial, institutional, irrigation and other non-residential accounts Hydropneumatic Pump Surcharge 0.40 0.68 0.73 0.79 0.85 0.92 LARGE INDUSTRIAL 1.84 1.99 2.15 2.32 2.51 2.71 Proposed Water Rates
Proposed Water Rates Effective
FIXED SERVICE CHARGES
Fixed service charges per day
VOLUME CHARGES
Billed based on metered water consumption ($ per hundred cubic feet) Proposed Water Rates & Pass-Through Adjustments for Customers in the Willotta Oaks Subdivision on the following page.
Sample Water Bill Calculation for a Typical Single Family Home (Effective January 1, 2026) Based on the proposed water rates effective January 1, 2026, the monthly water bill for a typical single family home in Residential Zones 1-2 using 10 hcf of water (about 250 gallons per day) in a 30-day month would be calculated as follows:
Economic Hardship Discount
The City provides an Economic Hardship discount to water service charges to customers that qualify based on income and apply to the City for the discount. Eligibility is currently based on US Dept . of Housing & Urban Development Very Low Income Limits for Solano County . The City is proposing to increase the discount corresponding with proposed water rate increases as follows:
Proposed Future Pass-Through Rate Adjustments for Wholesale Water Supply Charges The City purchases untreated wholesale water supply from the Solano County Water Agency and Solano Irrigation District. Wholesale water charges from these agencies may be subject to unanticipated increases that are outside the City’s control. [To provide financial protection for these unanticipated cost increases, ] the City is proposing to authorize the pass-through of increases to future wholesale water supply charges via corresponding increases to the City’s Water Volume Charges pursuant to California Government Code 53756. However the City is only proposing to pass-through future cost increases to wholesale water supply charges in excess of 4% per year . Future pass- throughs would be implemented by [increasing all of the City’s Water Volume Charges per hcf by the same amount (in cents per hcf) corresponding with the weighted average cost per hcf of water supply adopted by the City’s wholesale water suppliers ]. Prior to passing through any wholesale water rate increase, the City will notify all customers at least 30 days prior to implementation. These pass-throughs would only apply to customers connected to the City’s water system.
Proposed Water Rates & Pass-Through Adjustments for Customers in Willotta Oaks The City currently bills a small number of water customers located in the Willotta Oaks subdivision, which is outside the City’s [water system service area ]. These customers receive water service from the City of Vallejo’s Lake Area water system. The City of Vallejo charges Fairfield for providing water service to these customers. The City of Fairfield is proposing to pass through the cost of service to customers in Willotta Oaks by charging water rates that correspond with Vallejo’s charges to the City for providing water service , without markup. Fairfield’s proposed water rates for customers in the Willotta Oaks subdivision that [receive water supply from the City of Vallejo ] are based on current charges levied by the City of Vallejo onto the City of Fairfield are as follows:
Proposed Water Rates Effective January 1, 2026
Fixed Service Charge: $0.29 per day per residential dwelling unit or equivalent, plus Volume Charge: $16.21 per hcf billed based on metered water consumption.
The City is also proposing to authorize the pass-through of future increases to the charges for water billed to Fairfield by the City of Vallej o for water service to customers in the Willotta Oaks subdivision , pursuant to California Government Code 53756 . These pass -throughs would be applied by a) increasing Fixed Charges by the same percentage increase to applicable fixed charges adopted by the City of Vallejo for service customers in Willotta Oaks, and b) increasing Volume Charges by the same amount (in cents per hcf) corresponding with increases to usage charges adopted by the City of Vallejo for service to customers in Willotta Oaks.
How to Protest the Proposed Water Rate Increases - Written Protests The proposed water rate increases are subject to a majority written protest process under Article XIII D, Section 6 of the California Constitution (Proposition 218). At the Public Hearing, the City Council will accept and consider all Written Protests and written comments and hear all oral comments on the water rates as proposed to be modified and increased. However, only Written Protests will be counted in determining the existence of a majority protest. Any record owner of a property that receives water service from the City or any tenant who is directly liable for payment of the City’s water service charg es (a customer of record) may submit a Written Protest against the proposed water Fixed Service Charge Volume Charge Total Charge
$1.04 x 30 days = $31.20 $2.79 x 10 hcf = $27.90 $59.10 Current Jan-1 Jan-1 Jan-1 Jan-1 Jan-1
Discount 2026 2027 2028 2029 2030
ECONOMIC HARDSHIP DISCOUNT
Annual Discount/Rebate $158.00 $171.00 $185.00 $200.00 $216.00 $233.00 rates. Owners of multiple parcels in the City may file a Written Protest for each parcel owned within the City by filing a separate Written Protest for each parcel or by filing a single Written Protest that identifies multiple parcels . Only one Written Protest per parcel against the proposed water rate s, submitted by the record owner of the parcel or a customer of record, will be counted in determining whether a majority protest exists.
Written Protests may be mailed to the City Clerk at 1000 Webster Street, Fairfield, CA 94533, emailed to the City Clerk at cityclerk.ca.gov, hand delivered to the City Clerk’s Office on the 4th floor of City Hall or hand delivered to the City Clerk in the Council Chamber at the Public Hearing prior to the conclusion of the Public Hearing. Written Protests that are emailed, mailed or hand delivered to the City Clerk’s Office must be received by the City Clerk by 5:00 p.m. on November 4, 2025.
To be counted in determining the existence of a majority protest, a Written Protest must include all of the following:
1. Clearly stated opposition to the proposed water rates;
2. Identification of the parcel(s) for which the Written Protest is made (by assessor’s parcel number or street address);
3. Legibly printed name of the record owner or customer of record submitting the Written Protest; and
4. Original signature of the record owner or customer of record submitting the Written Protest.
What is a Majority Protest?
A majority protest against the proposed water rate s will exist if, at the end of the Public Hearing, there are written protests submitted, and not withdrawn, that represent a majority of the parcels (50% +1) that receive water service from the City. The City Council cannot adopt the proposed water rates if a majority protest exists.
Exhaustion of Administrative Remedies - Written Objections How do I preserve my ability to judicially challenge the proposed water rates? Pursuant to California Government Code Sections 53759.1 and 53759.2, a person or entity will be prohibited from bringing a judicial action or proceeding alleging that the proposed water rates do not comply with Article XIII D of the California Constitution (adopted by Proposition 218 ) unless that person or entity has timely submitted a Written Objection to the proposed water rates. This is known as an Exhaustion of Administrative Remedies requirement and is separate from the Proposition 218 majority protest process described above.
To exhaust your administrative remedies, your Written Objection must include the specific grounds for alleging noncompliance of the proposed water rates with Article XIII D of the California Constitution .
Written Objections may be mailed to City Clerk at 1000 Webster Street, Fairfield, CA 94533, emailed to the City Clerk at [email protected], or hand delivered to the City Clerk’s Office on the 4 th floor of City Hall and the must be received by the City Clerk by 5:00 p.m. on August 27, 2025. Note that this deadline for submitting a Written Objection is earlier than the deadline for submitting a Written Protest to provide the City with time to respon d.
A failure to timely object to the proposed water rates in writing bars any right to challenge the proposed water rates through a legal proceeding. The City will respond in writing to all Written Objections received by the deadline . The City Council is tentatively scheduled to consider written responses to Written Objections at the October 21, 2025 Council meeting.
A Written Objection that also complies with the requirements for a Written Protest (see “How to Protest The Proposed Water Rate Increases” above) will be also be counted as a Written Protest in determining whether a majority protest exists against the proposed water rate increases.
Statute of Limitations for Challenging The Proposed Water Rates If the City Council adopts the proposed water rates, then p ursuant to California Government Code Section 53759, there is a 120 -day statute of limitations for judicially challenging the water rates that runs from the date the City Council adopts a resolution approving the water rates.
Further Information
Additional information regarding the proposed modifications and increases to the water rates, including frequently asked questions, the reasons for the proposed modifications and increases to the water rates, the basis upon which they were calculated, and the amount of the proposed rates are described in more detail in the Water Rate Study posted at www.fairfield.ca.gov/waterrates and available for review at the City Clerk’s office (707) 428-7402 or City Manager’s office (707) 428-7400, both located at 1000 Webster Street, Fairfield, California 94533. The written basis upon which the proposed rates were calculated will be mailed or emailed to a property owner upon request.