ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FONTANA,
CALIFORNIA, AUTHORIZING ADOPTION OF NEW OR INCREASED
SEWER SERVICE FEES BY RESOLUTION, AND TAKING CERTAIN
OTHER ACTIONS RELATING THERETO
WHEREAS, the City of Fontana (the “City”) owns and operates a sewer collection and transmission system and partners with certain other public agencies for use of their sewer treatment plant to provide sewer service to City customers; and
WHEREAS, the City establishes and collects sewer service fees for providing such service and must periodically update the sewer service fees to recover the costs of providing sewer service to City customers; and
WHEREAS, California Health and Safety Code section 5471 et seq. (“Section 5471”) previously required public agencies that impose utility fees and charges, such as the City’s sewer service fees, to adopt new or increased fees by ordinance; and
WHEREAS, effective January 1, 2017, Section 5471 et seq. were amended to allow for adoption of new or increased sewer service fees for sewer service by resolution as well as by ordinance; and
WHEREAS, the City previously adopted its sewer service fees for sewer service by ordinance in compliance with Section 5471 prior to amendment, and now wishes to authorize future new or increased sewer service fees by resolution , and such authorization sought by this Ordinance shall be retroactive to January 1, 2017, the date Section 5471 was amended; and
WHEREAS, all other legal prerequisites to the adoption of this Ordinance have occurred.
THE CITY COUNCIL OF THE CITY OF FONTANA DOES ORDAIN AS FOLLOWS:
Section 1. Recitals. The above recitals are true, correct and incorporated herein by reference.
Section 2. Authorization. The City Council hereby authorizes fees or charges for sewer service to be adopted by resolution , effective January 1, 2017 and when so adopted, shall supersede any fee or charge previously adopted by resolution or ordinance.
Section 3. Effective Date/Publication. This Ordinance shall take effect thirty (30) days after the date of the adoption and prior to the expiration of fifteen (15) days from the passage thereof, shall be published by the City Clerk at least once in the Fontana Herald 1108
News, a local newspaper of the general circulation, published and circulated in the City of Fontana, and henceforth and thereafter the same shall be in full force and effect.
Section 4. Certification. The City Clerk of the City Council shall certify the adoption of this Ordinance.
Section 5. Severability. If any provision of this Ordinance or the application of any such provision to any person or circumstance is held invalid by a court of competent jurisdiction, such invalidity shall not affect other provisions or applications of this Ordinance that can be given effect without the invalid provision or application.
APPROVED AND ADOPTED this 14th day of July 2026.
READ AND APPROVED AS TO LEGAL FORM:
____________________________________
City Attorney
I, Germaine Key, City Clerk of the City of Fontana, and Ex-Officio Clerk of the City Council, do hereby certify that the foregoing Ordinance is the actual Ordinance adopted by the City Council and was introduced at a regular meeting on the 23rd day of June 2026, and was finally passed and adopted not less than five days thereafter on the 14th day of July 2026, by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
_____________________________________
City Clerk of the City of Fontana
_____________________________________
Mayor of the City of Fontana
ATTEST:
_____________________________________
City Clerk
1109
CITY OF FONTANA
Wastewater Rate Study
REPORT / April 16, 2026
1110
611 Wilshire Boulevard, Suite 900, Los Angeles, CA 90017
www.raftelis.com
April 16, 2026
Ms. Gia Kim
Public Works Director
City of Fontana
16860 Valencia Avenue
Fontana, CA 92335
Subject: Wastewater Rate Study Report
Dear Ms. Kim:
Raftelis is pleased to provide this Wastewater Rate Study Report (Report) for the City of Fontana (City) to develop a financial plan to help the City meet its annual expenses and provide fiscal stability, as well as to establish wastewater rates that are equitable and consistent with the cost of providing service.
The major objectives of the study include the following:
Develop a financial plan for the wastewater enterprise to ensure financial sufficiency, meet operation and maintenance (O&M) costs, ensure sufficient funding for capital improvement needs, and improve the financial health of the enterprise
Recommend sound and sufficient reserve funds
Review current rate structures for the wastewater enterprise Recommend a five-year schedule of wastewater rates consistent with regulatory standards
The report summarizes the key findings and recommendations for the financial plan of the wastewater utility and the development of the updated wastewater rates.
It has been a pleasure working with you, Ms. Kim, and the City staff, and we thank you for the support provided throughout this study.
Sincerely,
Angie Flores John Wright Nicholas Kennedy
Vice President Principal Consultant Consultant
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City of Fontana / Wastewater Rate Study Report
Contents
1. Executive Summary ..................................................................... 1
1.1. Background ...................................................................................................................1
1.2. Process ..........................................................................................................................1
1.3. Proposed Wastewater Financial Plan ..........................................................................1
1.4. Proposed Wastewater Rates ........................................................................................3
2. Rate Setting Methodology............................................................ 2
3. Key Inputs and Assumptions ....................................................... 3
3.1. Current Wastewater Rates ............................................................................................3
3.2. Projected Service Connections ...................................................................................5
3.2.1. Wastewater EDUs ........................................................................................................... 5
3.3. Wastewater Financial Plan Assumptions ....................................................................5
4. Wastewater Financial Plan .......................................................... 6
4.1. Current Rate Revenue ..................................................................................................6
4.1.1. Wastewater Rate Revenues at Current Rates ................................................................. 6
4.1.2. Other Revenues .............................................................................................................. 7
4.2. Annual Expenses – Wastewater ..................................................................................7
4.2.1. Total Operations and Maintenance Budget ..................................................................... 7
4.2.2. Transfers ......................................................................................................................... 8
4.2.3. Capital Improvement Plan ............................................................................................... 8
4.2.4. Existing and Proposed Debt Service ............................................................................... 8
4.3. Reserve Targets ............................................................................................................8
4.4. Proposed Financial Plan and Revenue Adjustments .................................................9
5. Wastewater Rate Derivation ...................................................... 13
5.1. Changes to Rate Structure ......................................................................................... 13
5.2. Revenue Requirement Determination ....................................................................... 13
5.3. Derivation of Units of Service .................................................................................... 13
5.3.1. Unit Costs of Service ..................................................................................................... 13
6. Wastewater Rates ...................................................................... 14
6.1. Wastewater Test Year Rate Derivation ...................................................................... 14
6.2. Proposed Five-Year Wastewater Rate Schedule ...................................................... 16 1112
City of Fontana / Wastewater Rate Study Report
7. Customer Impact Analysis & Neighboring Agency Comparison 18
7.1. Customer Bill Impacts ................................................................................................ 18
7.1.1. Wastewater ................................................................................................................... 18
7.2. Neighboring Agency Comparison ............................................................................. 18
7.2.1. Wastewater ................................................................................................................... 18
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City of Fontana / Wastewater Rate Study Report
Tables
Table 1-1: Proposed Wastewater Revenue Adjustments ......................................................................... 2 Table 1-2: Proposed Five-Year Wastewater Rate Schedule .................................................................... 1 Table 3-1: Current Wastewater Rate Structure ........................................................................................ 4 Table 3-2: Projected Wastewater Dwelling Units ...................................................................................... 5 Table 3-3: Expense Inflation Factors ........................................................................................................ 5 Table 4-1: Projected Rate Revenues Under Current Wastewater Rates .................................................. 6 Table 4-2: Projected Other Wastewater Enterprise Revenues, Status Quo .............................................. 7 Table 4-3: Summary of Projected Wastewater Operations and Maintenance Expenses .......................... 7 Table 4-4: Transfers ................................................................................................................................. 8 Table 4-5: Projected Wastewater Capital Improvement Projects .............................................................. 8 Table 4-6: Debt Service Schedule ............................................................................................................ 8 Table 4-7: Proposed Wastewater Revenue Adjustments ......................................................................... 9 Table 4-8: Wastewater Cashflow ........................................................................................................... 10 Table 5-1: Wastewater Revenue Requirement ....................................................................................... 13 Table 5-2: Units of Service, FY 2027 ...................................................................................................... 13 Table 6-1: Sewer Services Charge ($/EDU) ........................................................................................... 15 Table 6-2: Proposed 5-Year Wastewater Rate Schedule ....................................................................... 17
Figures
Figure 1-1: Proposed Wastewater Financial Plan..................................................................................... 2 Figure 1-2: Projected Wastewater Fund Ending Balance ......................................................................... 3 Figure 1-3: Wastewater Capital Financing Plan ....................................................................................... 3 Figure 1-4: Wastewater EDU Bill Impact .................................................................................................. 1 Figure 1-5: Neighboring Agency Rate Survey .......................................................................................... 1 Figure 4-1: Proposed Wastewater Financial Plan................................................................................... 11 Figure 4-2: Projected Wastewater Capital Plan and Funding Sources ................................................... 11 Figure 4-3: Projected Wastewater Fund Ending Balance ....................................................................... 12 Figure 7-1: Wastewater Monthly EDU Charge Bill Impact ...................................................................... 18 Figure 7-2: Neighboring Wastewater Comparison, Single Family ........................................................... 19
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City of Fontana / Wastewater Rate Study Report
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City of Fontana / Wastewater Rate Study Report 1
1. Executive Summary
1.1. Background
In 2026, the City of Fontana (City) engaged Raftelis to conduct a Wastewater Rate Study (Study) to develop a ten-year financial plan, and a five-year rate schedule for the wastewater utility that are equitable and in compliance with Proposition 218.
This executive summary describes the rate study process, methodology, and recommendations for the City’s wastewater rates. The City wishes to establish fair and equitable rates that:
Meet the City’s wastewater enterprise fiscal needs for operation and maintenance (O&M) costs, capital improvement costs, reserve goals, and ensure the financial health of each enterprise, and Prepare a five-year schedule of wastewater rates consistent with the cost of providing service.
The City of Fontana covers roughly 52 square miles in San Bernardino County and has a population of approximately 220,000. The City provides sewer collection services to a mixture of residential, commercial, and industrial sewer customers. The City also provides collection services to unincorporated and outside city customers. Collected sewage is conveyed to either the Inland Empire Utilities Agency (IEUA) regional wastewater reclamation facilities or the City of Rialto for wastewater treatment.
Existing sewer facilities include approximately 474 miles of sewer lines, 9 lift stations, 2 inverted siphons, roughly 45,000 service connections, and 5 regional discharge outlets. The collection pipes are mainly constructed of Vitrified Clay Pipe (VCP), with the remaining pipes constructed using Ductile Iron Pipe (DIP) and Polyvinyl Chloride (PVC).
1.2. Process
Raftelis developed a wastewater financial plan for the City. The financial plan considers the total revenue adjustments needed to meet capital improvement costs, operational expenses, debt service, and reserve policies during the five-year rate-setting period. After developing the financial plans, Raftelis conducted cost- of-service analyses to determine wastewater rates.
The current wastewater rate structure consists of a City sewer collection charge per equivalent dwelling unit (EDU), and an Inland Empire Utilities Agency (IEUA) Sewer Treatment charge or Rialto Sewer treatment charge per EDU, depending on who provides wastewater treatment. For this rate study, Raftelis is making rate recommendations for the City collection charge only. The differential charges for areas outside the City boundaries have been removed, since staff does not forecast additional O&M activities outside the City limits.
The City also currently charges a capital deficit recovery charge, which is a component of the total City collection charge. Raftelis recommends restructuring this charge to be included in a single City collection charge. Raftelis is proposing a uniform City collection charge for all sewer customers.
1.3. Proposed Wastewater Financial Plan
Raftelis modeled a status quo financial plan to evaluate whether current wastewater rates can adequately fund the City’s collection system expenses over the study period (FY 2027 – FY 2036). Using city-provided revenues, O&M expenses, debt service, and capital improvement costs, Raftelis determined that, with no rate 1116
City of Fontana / Wastewater Rate Study Report 2
increases over the study period, the City will fail to meet its reserve target in each year of the study period and fully deplete its reserves by FY 2028. Under current rates, the City cannot fully fund its operating expenses, underscoring the need for revenue adjustments now to mitigate larger adjustments in the future and to ensure long-term sustainability for the wastewater enterprise.
Table 1-1 shows the proposed maximum possible revenue adjustments for the wastewater enterprise and the resulting monthly $/EDU bill change. These percentages reflect the increase from the current FY 2026 revenue generated by the total City collection charge of $12.63. The increases in Table 1-1: Proposed Wastewater Revenue Adjustments
Effective Date Revenue Adjustment Monthly Bill Change
July 1, 2026 15% $1.92
July 1, 2027 10% $1.46
July 1, 2028 10% $1.60
July 1, 2029 10% $1.76
July 1, 2030 10% $1.94
Figure 1-1 shows the proposed five-year wastewater enterprise financial plan graphically. Status quo revenue is shown by the solid line. Projected revenue is shown by the dashed line. Annual expenditures are shown in the columns. The green bars below the X-axis show reserves are drawn down year to year to fund capital and O&M costs. Revenue from current rates is not enough to cover annual O&M costs and capital improvement costs. Therefore, revenue adjustments are required to generate sufficient revenue to cover these costs over the study period. The transfers out columns in dark blue reflect transfers to the general fund, fund 702 (Sewer Capital Projects), and fund 703 (Sewer Replacement) to pay for existing debt service, O&M costs, and capital projects.
Figure 1-1: Proposed Wastewater Financial Plan
Figure 1-2 shows projected ending fund balances over the study period relative to the City’s reserve target of 60 days of O&M costs. As shown by the black line, the reserve target is met in each year of the rate setting 1117
City of Fontana / Wastewater Rate Study Report 3
period. While the reserves may exceed the reserve target in the first year, it is still necessary to have rate increases to ensure that the rate revenue will cover the operating and capital expenses in the following years.
Figure 1-2: Projected Wastewater Fund Ending Balance
Figure 1-3 shows the proposed capital financing plan for the wastewater utility over the rate-setting period.
The proposed financial plan assumes that all capital projects will be funded through rate revenue, with no plans to issue debt.
Figure 1-3: Wastewater Capital Financing Plan
1.4. Proposed Wastewater Rates
Table 1-2 shows the proposed five-year schedule of wastewater rates. Rates for FY 2027 are the result of the calculation shown in Table 5-2. Rates for all future years are equal to the prior year’s rates multiplied by the revenue adjustment. All numbers are rounded up to the nearest cent to ensure adequate revenue recovery. 1118
City of Fontana / Wastewater Rate Study Report 4
This rate study only proposes changes to the City collection charge. Wastewater customers are also charged a per-EDU rate based on IEUA or the City of Rialto’s wastewater rate schedule. This charge will be passed through to the City customers each year. The table below shows the City’s rate for FY 2027 through FY 2031, IEUA treatment rates for FY 2027, and the City of Rialto treatment rates for the duration of the rate-setting period. Subsequent year IEUA treatment rates will be passed through to customers when IEUA updates them.
The IEUA treatment charge is effective on July 1 of each fiscal year, and the Rialto treatment charge is effective on January 1 of each fiscal year. In the table below, the Rialto treatment charge shown for each year is the charge for the first half of the fiscal year, and the rate listed for the following year is what is in effect for the second half of the fiscal year. The Rialto treatment rates are only adopted through the first half of FY 2031. Once the second half of the fiscal year has a rate adopted by the City of Rialto, it will be passed through to customers. Extra Territorial customers receive an additional charge from IEUA. The rate for FY 2027 has yet to be adopted. Once adopted, this rate will be passed through to customers. All customer classes shown receive wastewater treatment from IEUA unless labeled as Rialto.
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City of Fontana / Wastewater Rate Study Report 1
Table 1-2: Proposed Five-Year Wastewater Rate Schedule
Wastewater Rate($/EDU) Current FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Regular
City Collection Charge $12.63 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge $27.02 $29.45 Pass-Through Pass-Through Pass-Through Pass-Through Total Charge $39.65 $44.00 Total Charge Dependent on the Pass-Through Apartments
City Collection Charge $12.63 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge $18.91 $20.62 Pass-Through Pass-Through Pass-Through Pass-Through Total Charge $31.54 $35.17 Total Charge Dependent on the Pass-Through Industrial*
City Collection Charge $12.63 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge $27.02 $29.45 Pass-Through Pass-Through Pass-Through Pass-Through Total Charge $39.65 $44.00 Total Charge Dependent on the Pass-Through Commercial*
City Collection Charge $12.63 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge $27.02 $29.45 Pass-Through Pass-Through Pass-Through Pass-Through Total Charge $39.65 $44.00 Total Charge Dependent on the Pass-Through Outside City
City Collection Charge $18.95 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge $40.53 $29.45 Pass-Through Pass-Through Pass-Through Pass-Through Total Charge $59.48 $44.00 Total Charge Dependent on the Pass-Through Apartments Outside City
City Collection Charge $18.95 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge $28.37 $20.62 Pass-Through Pass-Through Pass-Through Pass-Through Total Charge $47.32 $35.17 Total Charge Dependent on the Pass-Through Outside City Industrial*
City Collection Charge $18.95 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge $40.53 $29.45 Pass-Through Pass-Through Pass-Through Pass-Through Total Charge $59.48 $44.00 Total Charge Dependent on the Pass-Through Outside City Commercial*
City Collection Charge $18.95 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge $40.53 $29.45 Pass-Through Pass-Through Pass-Through Pass-Through Total Charge $59.48 $44.00 Total Charge Dependent on the Pass-Through Extra Territorial
City Collection Charge $12.63 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge $50.55 $52.98 Pass-Through Pass-Through Pass-Through Pass-Through Extra Territorial Charge $23.53 Pass-Through Pass-Through Pass-Through Pass-Through Pass-Through Total Charge $63.18 Total Charge Dependent on the Pass-Through Extra Territorial
Apartments
City Collection Charge $12.63 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge $42.44 $44.15 Pass-Through Pass-Through Pass-Through Pass-Through Extra Territorial Charge $23.53 Pass-Through Pass-Through Pass-Through Pass-Through Pass-Through Total Charge $55.07 Total Charge Dependent on the Pass-Through Rialto
City Collection Charge $12.63 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge** $89.90 $89.90 $92.61 $95.39 $98.26 $101.21 Total Charge $102.53 $104.45 $108.62 $113.00 $117.63 $122.52 Rialto Commercial*
City Collection Charge $12.63 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge** $89.90 $89.90 $92.61 $95.39 $98.26 $101.21 Total Charge $102.53 $104.45 $108.62 $113.00 $117.63 $122.52 *Commercial and Industrial customers that participate in the City’s pre-treatment program may receive additional charges. ** Rialto treatment charges are effective January 1st of each year. All other rates are effective July 1. 1120
City of Fontana / Wastewater Rate Study Report 1
Figure 1-4 shows a bill comparison for current and FY 2027 proposed City charges for a wastewater EDU.
Figure 1-4: Wastewater EDU Bill Impact
Figure 1-5 shows a rate survey comparing collection charges for the City’s current and proposed FY 2027 monthly bill to neighboring agencies for a single family residence. Treatment costs are not included in this figure.
Figure 1-5: Neighboring Agency Rate Survey
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City of Fontana / Wastewater Rate Study Report 2
2. Rate Setting Methodology
This study was conducted using industry-standard principles outlined by the Water Environment Federation (WEF) publication, Manual of Practice No. 27, Financing and Charges for Wastewater Systems. The process and approach Raftelis utilized in the study to determine wastewater rates are informed by the City’s policy objectives, the current wastewater system and rates, and the legal requirements in California (namely, Proposition 218). The resulting financial plans and rate design process follows the steps outlined below to determine proposed rates that fulfill the City’s objectives, meet industry standards, and align with relevant regulations.
1. Financial Plan - Projections: The first step is to develop a multi-year financial plan that projects the City’s revenues, expenses, capital project financing, annual debt service, and reserve funding. The financial plan is used to determine the revenue adjustment, enabling the City to recover sufficient revenues to fund expenses and reserves.
2. Financial Plan - Revenue Requirement Determination: After completing the financial plan, the rate-making process begins by determining the revenue requirement for the test year, also known as the rate-setting year. The test year for this study is FY 2027. The revenue requirement should sufficiently fund the City’s operating costs, annual debt service (including coverage requirements), capital improvement costs, and reserve funding as projected based on the annual budget estimates.
3. Rate Design: After determining the revenue requirement, the project team designs and calculates rates. Rates do more than simply recover costs; within the legal framework and industry standards, properly designed rates should support the City’s policy objectives. Rates also serve as a public information tool, communicating these policy objectives to customers.
This process also includes a rate impact analysis and sample customer bill impacts.
4. Administrative Record Preparation and Rate Adoption: The final step in a rate study is to develop the administrative record (report) in conjunction with the rate adoption process. This report serves as the administrative record for this study. The administrative record documents the study results and presents the methodologies, rationale, justifications, and calculations used to determine the proposed rates. A thorough and methodological administrative record serves two important functions: maintaining defensibility in a stringent legal environment and communicating the rationale for revenue adjustments and proposed rates to customers and key stakeholders.
Values shown in report tables and figures are rounded to the specified number of digits. Therefore, any manual reproduction of the calculations shown may not match the precise results displayed in the report.
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City of Fontana / Wastewater Rate Study Report 3
3. Key Inputs and Assumptions
The key assumptions outlined in this section of the report represent the global assumptions used in the Study to project the number of customer accounts, revenues, and expenses for future years. City staff provided data on customer accounts, usage, and actual revenues and expenses for FY 2025.
City staff also provided budgeted revenues and expenses for FY 2026 and FY 2027. The remaining years of the study were projected based on this information and the key assumptions shown in this section.
3.1. Current Wastewater Rates
Table 3-1 shows the current wastewater rate schedule. All customer accounts are charged a fixed charge per EDU. All customers receive city collection charges and receive treatment from either IEUA of the City of Rialto. The current City collection charge consists of two components. A $10.78 collection charge and a $1.85 capital deficit recovery charge. 1123
City of Fontana / Wastewater Rate Study Report 4
Table 3-1: Current Wastewater Rate Structure
Wastewater Rate($/EDU) Current
Regular
City Collection Charge $12.63
Treatment Charge $27.02
Total Charge $39.65
Apartments
City Collection Charge $12.63
Treatment Charge $18.91
Total Charge $31.54
Industrial*
City Collection Charge $12.63
Treatment Charge $27.02
Total Charge $39.65
Commercial*
City Collection Charge $12.63
Treatment Charge $27.02
Total Charge $39.65
Outside City
City Collection Charge $18.95
Treatment Charge $40.53
Total Charge $59.48
Apartments Outside City
City Collection Charge $18.95
Treatment Charge $28.37
Total Charge $47.32
Outside City Industrial*
City Collection Charge $18.95
Treatment Charge $40.53
Total Charge $59.48
Outside City Commercial*
City Collection Charge $18.95
Treatment Charge $40.53
Total Charge $59.48
Extra Territorial
City Collection Charge $12.63
Treatment Charge $27.02
Extra Territorial Charge $23.53
Total Charge $63.18
Extra Territorial Apartments
City Collection Charge $12.63
Treatment Charge $18.91
Extra Territorial Charge $23.53
Total Charge $55.07
Rialto
City Collection Charge $12.63
Treatment Charge** $89.90
Total Charge $102.53
Rialto Commercial*
City Collection Charge $12.63
Treatment Charge** $89.90
Total Charge $102.53
* Commercial and Industrial customers that participate in the City’s pre-treatment program may receive additional charges. ** Rialto treatment charges are effective January 1st of each year. All other rates are effective July 1. 1124
City of Fontana / Wastewater Rate Study Report 5
3.2. Projected Service Connections
3.2.1. Wastewater EDUs
Table 3-2 shows the current and projected wastewater equivalent dwelling units. The City provided Raftelis with the number of dwelling units for FY 2025. Raftelis is assuming 0% growth over the study period as shown below.
Table 3-2: Projected Wastewater Dwelling Units
Number of EDUs Current FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 City Customers 65,015 65,015 65,015 65,015 65,015 65,015
3.3. Wastewater Financial Plan Assumptions
Table 3-3 shows the expense inflation factors which are used to project future operating and capital project expenses for the study period. These factors were determined with input from City staff and reference industry-standard escalations under current market conditions. The inflation factors shown were applied in each year of the study period to project expenses in FY 2028 and beyond.
Table 3-3: Expense Inflation Factors
Detail FY 2028 FY 2029 FY 2030 FY 2031
General 3% 3% 3% 3%
Salary 4% 4% 4% 4%
Benefits 4% 4% 4% 4%
Utilities 3% 3% 3% 3%
Capital 4% 4% 4% 4%
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4. Wastewater Financial Plan
This section of the report details the wastewater enterprise’s long-term financial plan, based on the projected revenues, expenses, debt service, and capital improvement costs. Raftelis modeled the financial plan under the status quo (no revenue adjustments) and with proposed revenue adjustments to ensure the financial sustainability of the wastewater utility. The results of the wastewater financial plan are the proposed rates for five years based on the proposed revenue adjustments.
4.1. Current Rate Revenue
The City’s revenues consist of rate revenues, interest earnings on cash reserves, and other miscellaneous revenues. The rate revenue projection shown below assumes that current FY 2026 rates are in effect throughout the study period. This status quo scenario provides a baseline from which Raftelis evaluates the need for revenue adjustments.
4.1.1. Wastewater Rate Revenues at Current Rates
Raftelis projected wastewater rate revenues from the City’s monthly charge per EDU for the study period based on current wastewater rates and the projected number of equivalent dwelling units (EDUs).
The City collects monthly collection charges from its customers based on the number of EDUs.
Table 4-1 shows the projected rate revenues the City will collect under current rates for the rate- setting period.
Table 4-1: Projected Rate Revenues Under Current Wastewater Rates Wastewater Rate
Revenue
FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
City Collection Charges $9,851,120 $9,851,120 $9,851,120 $9,851,120 $9,851,120
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City of Fontana / Wastewater Rate Study Report 7
4.1.2. Other Revenues
Table 4-2 shows the projected miscellaneous revenues for the wastewater enterprise, assuming no revenue adjustments.
Table 4-2: Projected Other Wastewater Enterprise Revenues, Status Quo Miscellaneous Revenue FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 IEUA Revenue $24,257,468 $24,257,468 $24,257,468 $24,257,468 $24,257,468 Rialto Revenue $1,650,564 $1,700,320 $1,751,360 $1,804,054 $1,858,216 Penalty - General $37,640 $38,016 $38,397 $38,781 $39,168 City Pre-Treatment Prog $655,989 $655,989 $655,989 $655,989 $655,989 Penalties $60,000 $60,600 $61,206 $61,818 $62,436
Sewer Permits $20,000 $20,200 $20,402 $20,606 $20,812 Interest Earnings $124,023 $56,063 $0 $0 $0
Total Miscellaneous
Revenue $26,807,710 $26,790,683 $26,786,851 $26,840,745 $26,896,120
4.2. Annual Expenses – Wastewater
The City’s annual expenses include O&M expenses, and capital expenses. This section discusses the expenses in detail.
4.2.1. Total Operations and Maintenance Budget
The City provided Raftelis with its actual expenses for FY 2025 and the budget for FY 2026 and FY 2027. To project the City’s O&M expenses, Raftelis used the escalation factors shown in Table 3-3.
Table 4-3 shows a summary of the budgeted and projected O&M.
Table 4-3: Summary of Projected Wastewater Operations and Maintenance Expenses Detail FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
IT Enterprise Support $366,580 $381,243 $396,493 $412,353 $428,847 Sewer Billing $424,130 $440,640 $457,797 $475,626 $494,154 DS Admin Finance $182,290 $189,582 $197,165 $205,051 $213,254 DS Adm-Technology $10,480 $10,899 $11,335 $11,789 $12,260 DS Adm-PT & Sewer Pro
IEUA Expenses $24,257,468 $24,257,468 $24,257,468 $24,257,468 $24,257,468 Rialto Expenses $1,650,564 $1,700,320 $1,751,360 $1,804,054 $1,858,216 Other $755,370 $780,676 $806,847 $833,912 $861,905
Sewer Lift Station $817,370 $846,267 $876,205 $907,224 $939,362 Sewer Laterals $436,160 $452,319 $469,086 $486,483 $504,535 Sewer Maintenance $1,713,840 $1,775,518 $1,839,457 $1,905,741 $1,974,458 Total O&M Expenses $30,614,252 $30,834,932 $31,063,213 $31,299,702 $31,544,459
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City of Fontana / Wastewater Rate Study Report 8
4.2.2. Transfers
Aside from the O&M expenses shown above, the operating fund transfers money to the general fund, fund 703 (Sewer Replacement) and fund 702 (Sewer Capital Projects) to pay for sewer related O&M costs, capital projects, and debt service.
Table 4-4: Transfers
Detail FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Transfers Out General Fund $2,385,330 $2,456,890 $2,530,597 $2,606,514 $2,684,710 Transfers Out Fund 703 (CIP) $1,316,940 $2,121,445 $2,086,526 $2,397,256 $2,911,392 Transfers Out Fund 703
(Capital Reserve) $1,440,780 $1,440,780 $1,440,780 $1,440,780 $1,440,780 Transfers Out Fund 702
(Debt) $984,819 $984,818 $213,177 $0 $0
Transfers Out Fund 702 (CIP) $4,076,436 $3,768,439 $3,429,279 $4,075,944 $5,298,727 Total Transfers $10,204,305 $10,772,371 $9,700,359 $10,520,494 $12,335,608
4.2.3. Capital Improvement Plan
Table 4-5 shows the City’s capital improvement plan for wastewater capital projects through FY 2031. All projects are planned to be cash funded. The plan averages roughly $5.5 million a year over the rate-setting period.
Table 4-5: Projected Wastewater Capital Improvement Projects Detail FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Rate Funded CIP $5,492,891 $5,077,873 $4,620,864 $5,492,227 $7,139,895
4.2.4. Existing and Proposed Debt Service
The City currently has outstanding debt for the wastewater utility. The existing debt is from State Water Resource Control Board (SWRCB) loan agreements for sewer trunk, lift station, and force main capital projects. The last year of payments occurs in FY 2029. Raftelis is not proposing any new debt issuances in the financial plan.
Table 4-6: Debt Service Schedule
Detail FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Existing Debt Service $984,819 $984,818 $213,177 $0 $0
4.3. Reserve Targets
Raftelis is recommending that the City establish a wastewater enterprise reserve target. The recommended reserve policy is described below.
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City of Fontana / Wastewater Rate Study Report 9
Operating Reserve – The Operating Reserve is used primarily to meet ongoing cash flow requirements. Raftelis is recommending that the City’s reserve target be set at 60 days of O&M expenses.
4.4. Proposed Financial Plan and Revenue
Adjustments
The proposed revenue adjustments are necessary to ensure adequate revenue to fund the wastewater enterprises' operating expenses. The first revenue adjustment is effective on July 1, 2026, with each following year effective on July 1. The proposed revenue adjustments would allow the City to cover its O&M costs, debt service, and capital improvement costs. Table 4-7 shows the proposed maximum possible wastewater revenue adjustments for the five-year rate-setting period and the resulting monthly $/EDU bill change. In order for the City to cover its costs and meet the reserve target, revenue adjustments are needed to ensure that rate revenues cover operating expenses over the next five years.
Table 4-7: Proposed Wastewater Revenue Adjustments
Effective Date Revenue Adjustment Monthly Bill Change
July 1, 2026 15% $1.92
July 1, 2027 10% $1.46
July 1, 2028 10% $1.60
July 1, 2029 10% $1.76
July 1, 2030 10% $1.94
Table 4-8 shows the wastewater cashflow for the study period, taking into account the revenue adjustments shown above in Table 4-7. Line 1 shows the projected wastewater rate-revenue under existing City collection rate. Line 9 shows the total rate-revenue including the proposed revenue adjustments. Line 19 shows total wastewater fund revenue including miscellaneous revenues and interest. Line 35 shows total O&M expenses. Lines 38-42 detail transfers to pay O&M costs, debt service, and rate funded capital for each year. The transfer for debt service shown in line 41 is existing debt. The financial plan does not assume any future debt. Line 45 shows the net cash flow, which is the total revenue (Line 21) minus total O&M expenses and transfers (Lines 35 and 43). As shown, each year of the rate-setting period except FY 2030 results in a negative cashflow. This is the result of reserves being drawn upon to minimize customer bill impacts. 1129
City of Fontana / Wastewater Rate Study Report 10
Table 4-8: Wastewater Cashflow
Line Detail FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
1 Revenue Under Existing Rates (City
Charges) $9,851,120 $9,851,120 $9,851,120 $9,851,120 $9,851,120 2 Revenue Adjustments
3 Month Adjustment
4 FY 2027 July 15% $1,499,897 $1,499,897 $1,499,897 $1,499,897 $1,499,897 5 FY 2028 July 10% $1,135,102 $1,135,102 $1,135,102 $1,135,102 6 FY 2029 July 10% $1,248,612 $1,248,612 $1,248,612 7 FY 2030 July 10% $1,373,473 $1,373,473
8 FY 2031 July 10% $1,510,820
9 Total City Charges Rate Revenue $11,351,018 $12,486,120 $13,734,732 $15,108,205 $16,619,025 10 11 Other Miscellaneous Revenue
12 IEUA Revenue $24,257,468 $24,257,468 $24,257,468 $24,257,468 $24,257,468 13 Rialto Revenue $1,650,564 $1,700,320 $1,751,360 $1,804,054 $1,858,216 14 Penalty – General $37,640 $38,016 $38,397 $38,781 $39,168 15 City Pre-Treatment Prog $655,989 $655,989 $655,989 $655,989 $655,989 16 Penalties $60,000 $60,600 $61,206 $61,818 $62,436 17 Sewer Permits $20,000 $20,200 $20,402 $20,606 $20,812 18 Interest Earnings $135,272 $98,492 $80,225 $80,549 $79,955 19 Total Other Miscellaneous
Revenue $26,816,933 $26,831,085 $26,865,047 $26,919,264 $26,974,044 20 21 Total Revenue $38,167,950 $39,317,205 $40,599,778 $42,027,468 $43,593,070 22 23 O&M Expenses
24 IT Enterprise Support $366,580 $381,243 $396,493 $412,353 $428,847 25 Sewer Billing $424,130 $440,640 $457,797 $475,626 $494,154 26 DS Admin Finance $182,290 $189,582 $197,165 $205,051 $213,254 27 DS Adm-Technology $10,480 $10,899 $11,335 $11,789 $12,260 28 DS Adm-PT & Sewer Pro
29 IEUA Expenses $24,257,468 $24,257,468 $24,257,468 $24,257,468 $24,257,468 30 Rialto Expenses $1,650,564 $1,700,320 $1,751,360 $1,804,054 $1,858,216 31 Other $755,370 $780,676 $806,847 $833,912 $861,905 32 Sewer Lift Station $817,370 $846,267 $876,205 $907,224 $939,362 33 Sewer Laterals $436,160 $452,319 $469,086 $486,483 $504,535 34 Sewer Maintenance $1,713,840 $1,775,518 $1,839,457 $1,905,741 $1,974,458 35 Total O&M Expenses $30,614,252 $30,834,932 $31,063,213 $31,299,702 $31,544,459 36 37 Transfers
38 Transfers Out General Fund $2,385,330 $2,456,890 $2,530,597 $2,606,514 $2,684,710 39 Transfers Out Fund 703 (CIP) $1,316,940 $2,121,445 $2,086,526 $2,397,256 $2,911,392 40 Transfers Out Fund 703 (Capital
Reserve) $1,440,780 $1,440,780 $1,440,780 $1,440,780 $1,440,780 41 Transfers Out Fund 702 (Debt) $984,819 $984,818 $213,177 $0 $0 42 Transfers Out Fund 702 (CIP) $4,076,436 $3,768,439 $3,429,279 $4,075,944 $5,298,727 43 Total Transfers $10,204,305 $10,772,371 $9,700,359 $10,520,494 $12,335,608 44 45 Net Cash Flow ($2,650,607) ($2,290,098) ($163,793) $207,273 ($286,998)
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City of Fontana / Wastewater Rate Study Report 11
Figure 4-1 shows the proposed five-year financial plan for the wastewater enterprise. Status quo revenue is shown by the solid line. Projected revenue is shown by the dashed line. Annual expenditures are shown by the columns. The green bars below the X-axis show reserves are drawn down year to year to fund O&M and capital improvement costs. Revenue from current rates is not enough to cover annual costs. Therefore, revenue adjustments are required to generate sufficient revenue to cover these costs over the study period.
Figure 4-1: Proposed Wastewater Financial Plan
Figure 4-2 shows the projected wastewater capital improvement plan for the study period. The City does not plan to issue debt to pay for future capital projects.
Figure 4-2: Projected Wastewater Capital Plan and Funding Sources
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City of Fontana / Wastewater Rate Study Report 12
Figure 4-3 shows the projected wastewater enterprise ending balance for each year of the study period. The black line represents the operating reserve target of 60 days of operating expenses. The green bars represent the ending fund balance for each year of the study period. The balances are being drawn down to fund the capital projects.
Figure 4-3: Projected Wastewater Fund Ending Balance
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City of Fontana / Wastewater Rate Study Report 13
5. Wastewater Rate Derivation
5.1. Changes to Rate Structure
The City currently charges a rate differential to outside city customers for the collection services provided. Raftelis is recommending that this rate differential be eliminated. Under the proposed rates, the City collection charge will be uniform for all customers. The City also currently charges two rates for collection services, a City collection charge, and a capital deficit recovery charge.
Raftelis recommends restructuring the capital deficit recovery charge to be included in a single City collection charge.
5.2. Revenue Requirement Determination
The first step of designing rates is to determine the revenue requirement for the test year, or rate- setting year. The test year of this study is FY 2027. Since Raftelis is only recommending rates for the City Collection charge, the revenue requirement is simply the amount to be collected from City charges to cover O&M costs, capital improvement costs, debt service, and interfund transfers, while meeting the operating reserve target of 60 days of O&M costs. The amount shown is equal to the FY 2027 value in line 9 of Table 4-8.
Table 5-1: Wastewater Revenue Requirement
Revenue Requirement FY 2027
Total Revenue to be Recovered from Rates $11,351,018
5.3. Derivation of Units of Service
5.3.1. Unit Costs of Service
Raftelis calculated the cost per EDU for the City collection charge by taking the revenue requirement shown above and dividing by the number of EDUs receiving sewer collection services from the City (Table 3-2). By doing this, an annual rate is calculated for all customers receiving City collection services. This value is divided by 12 to arrive at a monthly rate.
Table 5-2: Units of Service, FY 2027
Detail FY 2027
Revenue Requirement $11,351,018
Number of EDUs 65,015
City Collection Annual Rate $174.59
City Collection Monthly Rate $14.55
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City of Fontana / Wastewater Rate Study Report 14
6. Wastewater Rates
6.1. Wastewater Test Year Rate Derivation
Raftelis calculated updated wastewater rates for FY 2027. The revenue requirement is divided by the number of EDUs receiving City collection charges to determine the monthly charge per EDU, as shown above in Table 5-2. The total rate is shown in the last line of the FY 2027 column. This is the proposed City collection charge that will be applied to all customers.
Table 6-1 shows the test year, FY 2027 service charges for wastewater customers on a per-EDU basis. The table shows the proposed City collection charge and the treatment charge for each customer class. Every class receives wastewater treatment from IEUA unless the class is labeled as a Rialto customer. The treatment charges are rates set by either IEUA or the City of Rialto and are passed through to customers. Extra Territorial customers receive an additional charge from IEUA.
The rate for FY 2027 has yet to be adopted. Once adopted, this rate will be passed through to extra territorial customers.
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City of Fontana / Wastewater Rate Study Report 15
Table 6-1: Sewer Services Charge ($/EDU)
Wastewater Rate ($/EDU) FY 2027
Regular
City Collection Charge $14.55
Treatment Charge $29.45
Total Charge $44.00
Apartments
City Collection Charge $14.55
Treatment Charge $20.62
Total Charge $35.17
Industrial*
City Collection Charge $14.55
Treatment Charge $29.45
Total Charge $44.00
Commercial*
City Collection Charge $14.55
Treatment Charge $29.45
Total Charge $44.00
Outside City
City Collection Charge $14.55
Treatment Charge $29.45
Total Charge $44.00
Apartments Outside City
City Collection Charge $14.55
Treatment Charge $20.62
Total Charge $35.17
Outside City Industrial*
City Collection Charge $14.55
Treatment Charge $29.45
Total Charge $44.00
Outside City Commercial*
City Collection Charge $14.55
Treatment Charge $29.45
Total Charge $44.00
Extra Territorial
City Collection Charge $14.55
Treatment Charge $29.45
Extra Territorial Charge Pass-Through
Total Charge Total Charge Dependent on the Pass-Through Extra Territorial Apartments
City Collection Charge $14.55
Treatment Charge $20.62
Extra Territorial Charge Pass-Through
Total Charge Total Charge Dependent on the Pass-Through Rialto
City Collection Charge $14.55
Treatment Charge** $89.90
Total Charge $104.45
Rialto Commercial*
City Collection Charge $14.55
Treatment Charge** $89.90
Total Charge $104.45
* Commercial and Industrial customers that participate in the City’s pre-treatment program may receive additional charges. **Rialto treatment charges are effective January 1st of each year. All other rates are effective July 1. 1135
City of Fontana / Wastewater Rate Study Report 16
6.2. Proposed Five-Year Wastewater Rate Schedule
Table 6-2 shows the proposed 5-year wastewater rate schedule. FY 2027 rates reflect the calculation shown in Table 5-2. Rates for future years equal the FY 2027 rates multiplied by the revenue adjustment for the given year. Rates are rounded up to the nearest cent. Wastewater customers also pay a monthly fee to either IEUA or the City of Rialto for treatment. This rate is passed through each year, based on the cost to treat the wastewater.
The IEUA FY 2027 charge is effective July 1, 2026. The City of Rialto implements its rates on a calendar year basis, meaning customers receiving wastewater treatment from them have a different rate for the first (July-Dec) and second half (Jan-June) of the fiscal year. In the table below, the Rialto treatment charge shown for each year is the charge for the first half of the fiscal year, and the rate listed for the following year is what is in effect for the second half of the fiscal year. The Rialto treatment rates are only adopted through the first half of FY 2031. Once the second half of the fiscal year has a rate adopted by the City of Rialto, it will be passed through to customers. Extra Territorial customers receive an additional charge from IEUA. The rate for FY 2027 has yet to be adopted.
Once adopted, this rate will be passed through to extra territorial customers. 1136
City of Fontana / Wastewater Rate Study Report 17
Table 6-2: Proposed 5-Year Wastewater Rate Schedule
Wastewater Rate($/EDU) Current FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Regular
City Collection Charge $12.63 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge $27.02 $29.45 Pass-Through Pass-Through Pass-Through Pass-Through Total Charge $39.65 $44.00 Total Charge Dependent on the Pass-Through Apartments
City Collection Charge $12.63 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge $18.91 $20.62 Pass-Through Pass-Through Pass-Through Pass-Through Total Charge $31.54 $35.17 Total Charge Dependent on the Pass-Through Industrial*
City Collection Charge $12.63 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge $27.02 $29.45 Pass-Through Pass-Through Pass-Through Pass-Through Total Charge $39.65 $44.00 Total Charge Dependent on the Pass-Through Commercial*
City Collection Charge $12.63 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge $27.02 $29.45 Pass-Through Pass-Through Pass-Through Pass-Through Total Charge $39.65 $44.00 Total Charge Dependent on the Pass-Through Outside City
City Collection Charge $18.95 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge $40.53 $29.45 Pass-Through Pass-Through Pass-Through Pass-Through Total Charge $59.48 $44.00 Total Charge Dependent on the Pass-Through Apartments Outside City
City Collection Charge $18.95 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge $28.37 $20.62 Pass-Through Pass-Through Pass-Through Pass-Through Total Charge $47.32 $35.17 Total Charge Dependent on the Pass-Through Outside City Industrial*
City Collection Charge $18.95 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge $40.53 $29.45 Pass-Through Pass-Through Pass-Through Pass-Through Total Charge $59.48 $44.00 Total Charge Dependent on the Pass-Through Outside City Commercial*
City Collection Charge $18.95 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge $40.53 $29.45 Pass-Through Pass-Through Pass-Through Pass-Through Total Charge $59.48 $44.00 Total Charge Dependent on the Pass-Through Extra Territorial
City Collection Charge $12.63 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge $50.55 $52.98 Pass-Through Pass-Through Pass-Through Pass-Through Extra Territorial Charge $23.53 Pass-Through Pass-Through Pass-Through Pass-Through Pass-Through Total Charge $63.18 Total Charge Dependent on the Pass-Through Extra Territorial
Apartments
City Collection Charge $12.63 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge $42.44 $44.15 Pass-Through Pass-Through Pass-Through Pass-Through Extra Territorial Charge $23.53 Pass-Through Pass-Through Pass-Through Pass-Through Pass-Through Total Charge $55.07 Total Charge Dependent on the Pass-Through Rialto
City Collection Charge $12.63 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge** $89.90 $89.90 $92.61 $95.39 $98.26 $101.21 Total Charge $102.53 $104.45 $108.62 $113.00 $117.63 $122.52 Rialto Commercial*
City Collection Charge $12.63 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge** $89.90 $89.90 $92.61 $95.39 $98.26 $101.21 Total Charge $102.53 $104.45 $108.62 $113.00 $117.63 $122.52 * Commercial and Industrial customers that participate in the City’s pre-treatment program may receive additional charges. ** Rialto treatment charges are effective January 1st of each year. All other rates are effective July 1. 1137
City of Fontana / Wastewater Rate Study Report 18
7. Customer Impact Analysis &
Neighboring Agency
Comparison
7.1. Customer Bill Impacts
7.1.1. Wastewater
Figure 7-1: shows the monthly bill impact per EDU, comparing the City collection rate a customer is currently charged with the proposed FY 2027 City collection rate.
Figure 7-1: Wastewater Monthly EDU Charge Bill Impact
7.2. Neighboring Agency Comparison
7.2.1. Wastewater
Figure 7-2 shows a comparison to neighboring wastewater agencies for a single-family residential monthly bill. These comparisons are for one EDU.
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City of Fontana / Wastewater Rate Study Report 19
Figure 7-2: Neighboring Wastewater Comparison, Single Family
1139
Notice to property
owners and customers
Aviso a los propietarios
y clientes
This Notice is being furnished to you by the City of Fontana in accordance with Article XIII D, Section 6 of the California Constitution (Proposition 218), which requires the City to notify customers responsible for the utility bill and property owners of record of the proposed sewer service rate adjust - ments. This notice is being provided to inform property owners and customers of the proposed changes and their
right to protest.
This serves as notice that the Fontana City
Council will conduct a Public Hearing at 2:00
p.m., or as soon thereafter as the matter may
be heard, on Tuesday, June 23, 2026, at the
City of Fontana Council Chambers, 8437
Sierra Avenue, Fontana, CA 92335.
All those interested are invited to appear at the time and place of the Public Hearing on June 23, 2026, to give oral or written testimony or to submit written protests regarding the proposed sewer service rate adjustments. The City Council will hear and consider oral testimony and written materials submitted regarding the proposed rate adjustments at the Public Hearing.
The City Council has the authority to impose the proposed sewer service rate adjustments in the absence of a majority protest (described further below) provided the adjustments do not exceed the rates proposed in this Notice. If adopted, proposed sewer service rate adjustments would become effec - tive on July 1, 2026, with annual rate adjustments thereafter each July 1, through and including, July 1, 2030.
REASONS FOR PROPOSED SEWER SERVICE
RATE ADJUSTMENTS
The City hired an independent financial consultant to perform a utility rate study, which includes cost of service analyses. Think of this as a professional “financial check-up” that looks at the true cost of providing sewer services. The result of this study, which is available for your review in the City Clerk’s Office and the City website, is helpful because it ensures our rates are fair and our system stays reliable for years to come. The study determined the sewer service rates require increases to address the following:
La Ciudad de Fontana le proporciona este aviso de acuerdo con el Artí - culo XIII D, Sección 6 de la Constitución de California (Proposición 218), que exige que la Ciudad notifique a los clientes responsables de las facturas de servicios públicos y a los propietarios registrados sobre los ajustes propuestos en las tarifas del servicio de alcantarillado. Este aviso se proporciona para informar a los propietarios y clientes sobre los cambios propuestos y su derecho a protestar.
Por la presente se notifica que el Concejo de la Ciudad de Fontana llevará a cabo una audiencia pública a las
2:00 p. m., o tan pronto como el asunto pueda ser
tratado, el martes 23 de junio de 2026, en las Cámaras
del Concejo de la Ciudad de Fontana, 8437 Sierra
Avenue, Fontana, CA 92335.
Se invita a todos los interesados a presentarse a la hora y en el lugar de la Audiencia pública el 23 de junio de 2026 para prestar testimonio oral o escrito, o para presentar protestas por escrito con respecto a los ajustes propuestos en las tarifas del servicio de alcantarillado. El Concejo de la Ciudad escuchará y considerará los testimonios orales y los materi - ales escritos presentados con respecto a los ajustes de tarifas propuestos durante la Audiencia pública. El Concejo de la Ciudad tiene la autoridad para imponer los ajustes de tarifas propuestos en ausencia de una protesta mayoritaria (que se describe más adelante), siempre que los ajustes no excedan las tarifas propuestas en este aviso. De ser aprobados, los ajustes de las tarifas del servicio de alcantarillado entrarían en vigor el 1 de julio de 2026, con ajustes tarifarios anuales posteriores cada 1 de julio, hasta el 1 de julio de 2030 inclusive.
RAZONES PARA LOS AJUSTES PROPUESTOS EN
LAS TARIFAS DEL SERVICIO DE ALCANTARILLADO
La Ciudad contrató a un consultor financiero independiente para realizar un estudio de tarifas de servicios públicos, que incluye análisis de los costos del servicio. Piense en esto como un “chequeo financiero” profesional que analiza el costo real de proporcionar servicios de alcantarillado. El resul - tado de este estudio, que está disponible para su revisión en la Oficina de la Secretaría de la Ciudad y en el sitio web de la ciudad, es útil porque garan- tiza que nuestras tarifas sean justas y que nuestro sistema siga siendo confi- able en los años venideros. El estudio determinó que las tarifas del servicio de alcantarillado requieren aumentos para abordar lo siguiente:
1 FINAL AND APPROVED
04.28.20261140
• Managing Pass-through Costs: Accounting for the rising fees charged by regional partners, Inland Empire Utilities Agency (IEUA) and the City of Rialto, for sewage treatment.
Maximum pass-through cost shall not exceed 15%.
• Managing Reserves and Operating Expenses: Current
rates do not cover the full cost of running the system.
Without rate adjustments, the City will exhaust its sewer fund financial reserves by 2028. Acting now means smaller, more manageable increases — and a sewer system that stays reliable for years to come.
BASIS OF HOW THE SEWER SERVICE RATES
ARE CALCULATED
The financial consultant’s cost of service analyses (a review of what it costs to run and maintain the wastewater system) deter - mined the proposed rates in this notice.
HOW YOUR SEWER RATE IS STRUCTURED
Y our sewer bill includes two charges. The City of Fontana charges you for collecting and moving wastewater through its pipes. A separate agency, either IEUA or the City of Rialto, charges for treating that wastewater. This notice only addresses the proposed changes to the City of Fontana’s collection charge.
The rate study recommends simplifying how the City of Fontana charges for its role in providing sewer service. If approved:
• All customers will pay one uniform collection charge. • The separate charge for customers outside City limits will be eliminated.
HOW PROPOSED RATES WILL IMPACT
YOUR SEWER BILL
If approved, a typical residential customer* (shown as “Regular” class in Table 1) will see an increase of $1.92 per month for the City’s portion.
Rate adjustments would go into effect July 1, 2026, with future increases scheduled annually each July 1 thereafter, through and including, July 1, 2030, for the City and IEUA. All increases for the City of Rialto will take effect starting January 1, 2027. • Gestión de costos de transferencia (Pass-through): Contabilización del aumento en las tarifas cobradas por los socios regionales, la Agencia de Servicios de Inland Empire (IEUA) y la ciudad de Rialto, por el tratamiento de aguas residuales. El costo máximo de transfer - encia no deberá exceder el 15%.
• Gestión de reservas y gastos operativos: Las tarifas actuales no cubren el costo total de funcionamiento del sistema. Sin ajustes en las tarifas, la Ciudad agotará las reservas financieras de su fondo de alcantarillado para el año 2028. Actuar ahora significa aumentos más pequeños y manejables, y un sistema de alcantarillado que seguirá siendo confiable en los años venideros.
BASES DEL CÁLCULO DE LAS TARIFAS DEL
SERVICIO DE ALCANTARILLADO
Los análisis del costo del servicio realizados por el consultor financiero (una revisión de lo que cuesta operar y mantener el sistema de aguas resid- uales) determinaron las tarifas propuestas en este aviso.
CÓMO SE ESTRUCTURA SU TARIFA DE
ALCANTARILLADO
Su factura de alcantarillado incluye dos cargos: La Ciudad de Fontana le cobra por la recolección y el traslado de las aguas residuales a través de sus tuberías. Una agencia independiente, ya sea la IEUA o la ciudad de Rialto, cobra por el tratamiento de dichas aguas residuales. Este aviso solo se refiere a los cambios propuestos al cargo de recolección de la Ciudad de Fontana.
El estudio de tarifas recomienda simplificar la forma en que la Ciudad de Fontana cobra por su función en la prestación del servicio de alcantaril - lado. De ser aprobado:
• Todos los clientes pagarán un cargo de recolección uniforme. • Se eliminará el cargo separado para los clientes fuera de los límites de la Ciudad.
CÓMO AFECTARÁN LAS TARIFAS PROPUESTAS A
SU FACTURA DE ALCANTARILLADO
De aprobarse, un cliente residencial típico* (identificado como clase “Regular” en la Tabla 1) experimentará un aumento de $1.92 mensuales en la porción correspondiente a la Ciudad.
Los ajustes de las tarifas entrarían en vigor el 1 de julio de 2026, con aumentos futuros programados anualmente cada 1 de julio a partir de entonces, hasta el 1 de julio de 2030 inclusive, para la Ciudad y la IEUA. Todos los aumentos para la Ciudad de Rialto entrarán en vigor a partir del 1 de enero de 2027. 2 1141
PROPOSED SEWER SERVICE
RATE INCREASES
The City is proposing five years of rate adjustments shown in the following table.
AUMENTOS PROPUESTOS EN LAS TARIFAS
DEL SERVICIO DE ALCANTARILLADO
La Ciudad propone cinco años de ajustes tarifarios, los cuales se muestran en la siguiente tabla:
Class | Clase Current
Actual
7/1/2026
Proposed
Propuesta
7/1/2027
Proposed
Propuesta
7/1/2028
Proposed
Propuesta
7/1/2029
Proposed
Propuesta
7/1/2030
Proposed
Propuesta
Regular | Regular
City Collection Charge
Cargo de recolección de la Ciudad $12.63 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge
Cargo de tratamiento $27.02 $29.45 Pass-Through
Costo de transferencia (Pass-Through)
Total Charge
Cargo total $39.65 $44.00 Total Charge Dependent on the Pass-Through Cargo total dependiente del costo de transferencia (Pass-Through) Apartments | Apartamentos
City Collection Charge
Cargo de recolección de la Ciudad $12.63 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge
Cargo de tratamiento $18.91 $20.62 Pass-Through
Costo de transferencia (Pass-Through)
Total Charge
Cargo total $31.54 $35.17 Total Charge Dependent on the Pass-Through Cargo total dependiente del costo de transferencia (Pass-Through) Industrial* | Industrial*
City Collection Charge
Cargo de recolección de la Ciudad $12.63 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge
Cargo de tratamiento $27.02 $29.45 Pass-Through
Costo de transferencia (Pass-Through)
Total Charge
Cargo total $39.65 $44.00 Total Charge Dependent on the Pass-Through Cargo total dependiente del costo de transferencia (Pass-Through) Commercial* | Comercial*
City Collection Charge
Cargo de recolección de la Ciudad $12.63 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge
Cargo de tratamiento $27.02 $29.45 Pass-Through
Costo de transferencia (Pass-Through)
Total Charge
Cargo total $39.65 $44.00 Total Charge Dependent on the Pass-Through Cargo total dependiente del costo de transferencia (Pass-Through) Outside City | Fuera de la ciudad
City Collection Charge
Cargo de recolección de la Ciudad $18.95 $14.55 $16.01 $17.61 $19.37 $21.31 TABLE 1: PROPOSED MONTHLY
SEWER SERVICE RATES
TABLA 1: TARIFAS MENSUALES PROPUESTAS
PARA EL SERVICIO DE ALCANTARILLADO
31142
TABLE 1: Continued... | TABLA 1: Continuado...
Class | Clase Current
Actual
7/1/2026
Proposed
Propuesta
7/1/2027
Proposed
Propuesta
7/1/2028
Proposed
Propuesta
7/1/2029
Proposed
Propuesta
7/1/2030
Proposed
Propuesta
Treatment Charge
Cargo de tratamiento $40.53 $29.45 Pass-Through
Costo de transferencia (Pass-Through)
Total Charge
Cargo total $59.48 $44.00 Total Charge Dependent on the Pass-Through Cargo total dependiente del costo de transferencia (Pass-Through) Apartments Outside City | Apartamentos fuera de la ciudad City Collection Charge
Cargo de recolección de la Ciudad $18.95 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge
Cargo de tratamiento $28.37 $20.62 Pass-Through
Costo de transferencia (Pass-Through)
Total Charge
Cargo total $47.32 $35.17 Total Charge Dependent on the Pass-Through Cargo total dependiente del costo de transferencia (Pass-Through) Outside City Industrial* | Industrial fuera de la ciudad* City Collection Charge
Cargo de recolección de la Ciudad $18.95 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge
Cargo de tratamiento $40.53 $29.45 Pass-Through
Costo de transferencia (Pass-Through)
Total Charge
Cargo total $59.48 $44.00 Total Charge Dependent on the Pass-Through Cargo total dependiente del costo de transferencia (Pass-Through) Outside City Commercial* | Comercial fuera de la ciudad* City Collection Charge
Cargo de recolección de la Ciudad $18.95 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge
Cargo de tratamiento $40.53 $29.45 Pass-Through
Costo de transferencia (Pass-Through)
Total Charge
Cargo total $59.48 $44.00 Total Charge Dependent on the Pass-Through Cargo total dependiente del costo de transferencia (Pass-Through) Extra Territorial | Extraterritorial
City Collection Charge
Cargo de recolección de la Ciudad $12.63 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge
Cargo de tratamiento $27.02 $29.45 Pass-Through
Costo de transferencia (Pass-Through)
Extra Territorial Charge
Cargo de extraterritorial $23.53 Pass-Through
Costo de transferencia (Pass-Through)
Total Charge
Cargo total $63.18 Total Charge Dependent on the Pass-Through Cargo total dependiente del costo de transferencia (Pass-Through) 4 1143
Class | Clase Current
Actual
7/1/2026
Proposed
Propuesta
7/1/2027
Proposed
Propuesta
7/1/2028
Proposed
Propuesta
7/1/2029
Proposed
Propuesta
7/1/2030
Proposed
Propuesta
Extra Territorial Apartments | Apartamentos extraterritoriales City Collection Charge
Cargo de recolección de la Ciudad $12.63 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge
Cargo de tratamiento $18.91 $20.62 Pass-Through
Costo de transferencia (Pass-Through)
Extra Territorial Charge
Cargo de extraterritorial $23.53 Pass-Through
Costo de transferencia (Pass-Through)
Total Charge
Cargo total $55.07 Total Charge Dependent on the Pass-Through Cargo total dependiente del costo de transferencia (Pass-Through) Rialto | Rialto
City Collection Charge
Cargo de recolección de la Ciudad $12.63 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge**
Cargo de tratamiento $89.90 $89.90 $92.61 $95.39 $98.26 $101.21 Total Charge
Cargo total $102.53 $104.45 $108.62 $113.00 $117.63 $122.52 Rialto Commercial* | Rialto Comerical*
City Collection Charge
Cargo de recolección de la Ciudad $12.63 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge
Cargo de tratamiento $89.90 $89.90 $92.61 $95.39 $98.26 $101.21 Total Charge
Cargo total $102.53 $104.45 $108.62 $113.00 $117.63 $122.52 *Commercial and Industrial customers will continuously
receive pre-treatment service charges, with the rate adjusted by Consumer Price Index (CPI), not to exceed 5%.
** Rialto treatment charges are effective January 1st of each year.
All other rates are effective July 1.
The Rialto treatment charge shown for each year is the charge for the first half of the fiscal year, and the rate listed for the following year is what is in effect for the second half of the fiscal year. The Rialto treatment rates are only adopted through the first half of FY 2031. Once the second half of the fiscal year has a rate adopted by the City of Rialto, it will be passed through to customers. *Los clientes comerciales e industriales recibirán de manera continua cargos por servicio de pretratamiento, con la tarifa ajustada según el Índice de Precios al Consumidor (IPC), sin exceder el 5%.
** Los cargos de tratamiento de Rialto entran en vigor el 1 de enero de cada año. Todas las demás tarifas entran en vigor el 1 de julio.
El cargo de tratamiento de Rialto que se muestra para cada año es el cargo correspondiente a la primera mitad del año fiscal, y la tarifa indicada para el año siguiente es la que está en vigor para la segunda mitad del año fiscal. Las tarifas de tratamiento de Rialto solo se han adoptado hasta la primera mitad del año fiscal 2031. Una vez que la Ciudad de Rialto adopte una tarifa para la segunda mitad del año fiscal, esta se trasladará a los clientes.
TABLE 1: Continued... | TABLA 1: Continuado...
Rate Amount
Commercial Within City $5.15
Industrial Within City $19.00
Commercial Outside City $7.73
Industrial Outside City $28.50
Tarifa Monto
Comercial dentro de la ciudad $5.15
Industrial dentro de la ciudad $19.00
Comercial fuera de la ciudad $7.73
Industrial fuera de la ciudad $28.50
51144
HOW TO PROTEST PROPOSED RATES
The proposed increases in sewer service rates are governed by section 6 of Article XIII D of the California Constitution and Government Code section 53750 et seq. that together are commonly referred to as “Proposition 218. ” There are multiple ways that property owners and customers of record subject to the proposed sewer service rates can participate in the Proposition 218 process.
Submit a Written Protest
Y ou have the right to protest the proposed sewer service rate adjustments. The protest must be in writing, and it must be submitted by either the property owner or a current rate-paying tenant. It must include the property service address and/or the assessor’s parcel number, the eligible individual’s name (prop- erty owner or tenant), a statement to the effect of “I protest the proposed sewer rate adjustments, ” and an original signature.
Written protests may be submitted by mail or in person to the Fontana City Clerk at 16860 Valencia Avenue, Fontana, CA 92335, provided they must be received by City staff by 2:00 p.m. Tuesday, June 23, 2026. Written protests may also be delivered to the City during the public hearing. All protests must be received by the City Council before the conclusion of the Public Hearing. Any protests received after the conclusion of the Public Hearing will not be accepted or considered.
Only one written protest per affected property will be counted.
Telephone, e-mail, and fax protests will not be accepted. At the Public Hearing on Tuesday, June 23, 2026, the City Council will accept and consider all written protests, written objections, and hear all oral comments on the proposed sewer service rate adjust- ments. Oral comments will not be counted as protests unless accompanied by a written protest as outlined within this Notice.
At the conclusion of the Public Hearing, the City Council will consider adopting the proposed sewer service rate adjustments as follows:
(1) If fewer than a majority (50% + 1) of property owners or customer ratepayers file a protest, the City Council will consider adjusting the sewer service rates as proposed.
(2) If a majority of affected property owners or customer rate- payers protest the proposed sewer service rate adjustments, and are not withdrawn in writing to reduce the number to less than a majority before the conclusion of the Public Hearing, the City Council is prohibited by law from changing its sewer service rates at this time.
If adopted, the proposed sewer service rates will take effect beginning July 1, 2026. The reasons for the rate adjustments, the basis upon which they were calculated, and the amount of the proposed sewer service rates are described in more detail in the Rate Study Report, which is available for review by appointment at the City Clerk’s office and on the City’s website at www.fontanaca.gov/3745/Sewer-Rate-Study-Documents. To
schedule an appointment, please call 909-350-7602 or send email to [email protected].
Exhaustion of Administrative Remedies –
Written Legal Objection Procedures
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 sewer CÓMO PROTESTAR CONTRA LAS TARIFAS
PROPUESTAS
Los aumentos propuestos en las tarifas del servicio de alcantarillado se rigen por la sección 6 del Artículo XIII D de la Constitución de California y la sección 53750 y siguientes del Código de Gobierno, que en conjunto se conocen comúnmente como la “Proposición 218” . Existen múltiples formas en las que los propietarios y clientes registrados sujetos a las tarifas propuestas para el servicio de alcantarillado pueden participar en el proceso de la Proposición 218.
Presentar Una Protesta Por Escrito
Usted tiene el derecho de protestar contra los ajustes propuestos en las tarifas del servicio de alcantarillado. La protesta debe realizarse por escrito y debe ser presentada por el propietario o por un inquilino que pague actualmente la tarifa. Debe incluir la dirección de servicio de la propiedad y/o el número de parcela del tasador (APN), el nombre de la persona elegible (propietario o inquilino), una declaración en el sentido de: “Protesto contra los ajustes propuestos a las tarifas de alcantarillado” y una firma original.
Las protestas por escrito pueden enviarse por correo o entregarse en persona a la Secretaría de la Ciudad de Fontana (Fontana City Clerk) a 16860 Valencia Avenue, Fontana, CA 92335, siempre que el personal de la Ciudad las reciba antes de las 2:00 p. m. del martes 23 de junio de 2026.
Las protestas por escrito también podrán entregarse a la Ciudad durante la audiencia pública. Todas las protestas deben ser recibidas por el Concejo de la Ciudad antes de la conclusión de la Audiencia pública. Cualquier protesta recibida después de finalizada la Audiencia pública no será aceptada ni considerada.
Solo se contará una protesta por escrito por cada propiedad afectada. No se aceptarán protestas por teléfono, correo electrónico ni fax. En la audiencia pública del martes 23 de junio de 2026, el Concejo de la Ciudad aceptará y considerará todas las protestas por escrito, objeciones por escrito y escuchará todos los comentarios orales sobre los ajustes propuestos a las tarifas del servicio de alcantarillado. Los comentarios orales no se contabilizarán como protestas a menos que vayan acompañados de una protesta por escrito, tal como se describe en este aviso.
Al concluir la Audiencia pública, el Concejo de la Ciudad considerará la adopción de los ajustes propuestos a las tarifas del servicio de alcantarillado de la siguiente manera:
(1) Si menos de una mayoría (50% + 1) de los propietarios o clientes contribuyentes presentan una protesta, el Concejo de la Ciudad considerará ajustar las tarifas del servicio de alcantarillado según lo propuesto. (2) Si una mayoría de los propietarios o clientes contribuyentes afectados protesta contra los ajustes propuestos y dichas protestas no son retiradas por escrito para reducir el número a menos de una mayoría antes de que concluya la Audiencia pública, la ley prohíbe al Concejo de la Ciudad cambiar sus tarifas de servicio de alcantarillado en este momento.
Si se aprueban, las tarifas propuestas para el servicio de alcantarillado entrarán en vigor a partir del 1 de julio de 2026. Los motivos de los ajustes tarifarios, la base sobre la cual se calcularon y el monto de las tarifas propuestas se describen con más detalle en el Informe del Estudio de Tarifas, el cual está disponible para su revisión mediante cita previa en la oficina de la Secretaría de la Ciudad y en el sitio web de la Ciudad en www.fontanaca. gov/3745/Sewer-Rate-Study-Documents. Para programar una cita, llame al 909-350-7602 o envíe un correo electrónico a [email protected].
Agotamiento de recursos administrativos – Proced-
imientos de objeción legal por escrito
De conformidad con las Secciones 53759.1 y 53759.2 del Código de Gobi- erno de California, se prohibirá a una persona o entidad iniciar una acción 6 1145
service rates do not comply with Proposition 218 unless that person or entity has submitted a written legal objection to the proposed rates. This is known as an Exhaustion of Administrative Remedies requirement and is separate from the Proposition 218 Majority Protest process described above.
Any person or entity that wishes to challenge the proposed sewer service rates must first file a written legal objection that specifies the grounds for alleging the City’s noncompliance with the law as described below. Written legal objections must be received by the City no later than 2:00 p.m., Tuesday, June 23, 2026.
Information related to the written basis for the proposed sewer service rate adjustments can be found on the City’s website at www.fontanaca.gov/3745/Sewer-Rate-Study-Documents. Y ou have the right to request that the City mail the written basis for the proposed sewer service rate adjustments directly to you.
To request that the written basis be mailed, please call the City Clerk’s Office at 909-350-7602.
Legal objections will only be considered valid if they meet the following procedural and substantive requirements:
• Legal objections must be in writing.
• The Fontana City Clerk must receive your written legal objections no later than 2:00 p.m., Tuesday, June 23, 2026. • Written legal objections must be mailed or hand delivered to the Fontana City Clerk’s office at 16860 Valencia Avenue, Fontana, CA 92335.
• Legal objections must include the following information:
• Objectors name, parcel number and/or service address, including a return mailing or email address for City
responses to your written objection.
• A statement that your communication constitutes a
legal objection.
• A description of the nature of the legal objection which specifies the grounds for alleging the City’s noncompli- ance with the law, with sufficient specificity to allow the City to determine whether any changes to the proposed
sewer service rates are required. A statement that the
proposed sewer service rates are too high, or that the
proposed sewer service rates violate Proposition 218,
without an explanation as to the basis of your claim,
will be insufficient to constitute a legal objection.
A written protest will not constitute a valid legal objection unless it meets the requirements set forth above. Failure to submit a written legal objection prior to 2:00 p.m. on June 23, 2026, or to meet the requirements set forth above, will bar any right to challenge the proposed sewer service rates through a legal proceeding.
Statute of Limitations for Challenging Proposed Sewer Service Rates - Please note that pursuant to California Government Code section 53759, there is a 120-day statute of limitations for judicially challenging all rates set forth in this Notice that runs from the date the resolution approving the proposed rates is adopted.
QUESTIONS?
Phone: 909-350-7600
Email: [email protected]
o procedimiento judicial alegando que las tarifas por servicio de alcantaril- lado propuestas no cumplen con la Proposición 218, a menos que dicha persona o entidad haya presentado una objeción legal por escrito a las tarifas propuestas. Esto se conoce como el requisito de Agotamiento de recursos administrativos y es independiente del proceso de protesta por mayoría de la Proposición 218 descrito anteriormente.
Cualquier persona o entidad que desee impugnar las tarifas propuestas para el servicio de alcantarillado debe presentar primero una objeción legal por escrito que especifique los motivos por los cuales se alega el incumplimiento de la ley por parte de la Ciudad, tal como se describe a continuación. Las objeciones legales por escrito deben ser recibidas por la Ciudad a más tardar a las 2:00 p. m. del martes 23 de junio de 2026.
La información relacionada con la base escrita para los ajustes propuestos en las tarifas del servicio de alcantarillado se puede encontrar en el sitio web de la Ciudad en www.fontanaca.gov/3745/Sewer-Rate-Study-Documents. Usted tiene derecho a solicitar que la Ciudad le envíe por correo directamente la base escrita para los ajustes propuestos en las tarifas del servicio de alcan- tarillado. Para solicitar que se le envíe la base escrita por correo, llame a la Oficina del Secretario Municipal al 909-350-7602.
Las objeciones legales solo se considerarán válidas si cumplen con los siguientes requisitos procesales y sustantivos:
• Las objeciones legales deben ser por escrito.
• La Secretaría de la Ciudad de Fontana debe recibir sus objeciones legales por escrito a más tardar a las 2:00 p. m. del martes 23 de junio de 2026.
• Las objeciones legales por escrito deben enviarse por correo o entre- garse personalmente en la oficina de la Secretaría de la Ciudad de Fontana en 16860 Valencia Avenue, Fontana, CA 92335.
• Las objeciones legales deben incluir la siguiente información:
• Nombre del objetor, número de parcela y/o dirección de servicio, incluyendo una dirección de correo postal o electrónico para que la Ciudad responda a su objeción escrita.
• Una declaración de que su comunicación constituye una objeción legal.
• Una descripción de la naturaleza de la objeción legal que espe- cifique los motivos por los cuales se alega el incumplimiento de la ley por parte de la Ciudad, con la especificidad suficiente para permitir que la Ciudad determine si se requiere algún cambio en las tarifas propuestas para el servicio de alcantarillado. Una declaración de que las tarifas propuestas para el servicio de alcantarillado son demasiado altas, o que violan la Proposición 218, sin una explicación de la base de su reclamo, será insufici- ente para constituir una objeción legal.
Una protesta por escrito no constituirá una objeción legal válida a menos que cumpla con los requisitos establecidos anteriormente. No presentar una objeción legal por escrito antes de las 2:00 p. m. del 23 de junio de 2026, o no cumplir con los requisitos establecidos anteriormente, anulará cualquier derecho a impugnar las tarifas propuestas para el servicio de alcantarillado a través de un procedimiento legal.
Plazo de prescripción para impugnar las tarifas propuestas del servicio de alcantarillado - Tenga en cuenta que, de conformidad con la sección 53759 del Código de Gobierno de California, existe un plazo de prescrip- ción de 120 días para impugnar judicialmente todas las tarifas estable- cidas en este Aviso, el cual comienza a contar a partir de la fecha en que se adopte la resolución que aprueba las tarifas propuestas. ¿PREGUNTAS?
Teléfono: 909-350-7600 | Correo electrónico: [email protected] 71146
2:00 p.m. Tuesday, June 23, 2026
City of Fontana Council Chambers, 8437 Sierra Avenue, Fontana, CA 92335 2:00 p. m. Martes, 23 de junio de 2026
Cámaras del Concejo de la Ciudad de Fontana, 8437 Sierra Avenue, Fontana, CA 92335 Proposed Adjustments to
Sewer Service Rates
Ajustes propuestos a las tarifas del
servicio de alcantarillado
City of Fontana
Office of the City Clerk
16860 Valencia Avenue
Fontana, CA 92335
Notice of Public Hearing
to Consider Proposed Adjustments to Sewer Service Rates Aviso de Audiencia Pública
para considerar los ajustes propuestos a las tarifas del servicio de alcantarillado 1147
City of Fontana
Sewer Rate Study
Authorization of Proposition 218 Notice
April 28, 2026
1 1148
Agenda
2 • Sewer rate study project scope
• Overview of the rate study process
• Recommended sewer utility financial plan
• Proposed sewer rates
• Comparison to adjacent utilities
1149
3 Project Scope
1150
Project Scope
4 • Sewer utility financial plan for FY 2027 - FY 2031
• Proposed rates for FY 2027 - FY 2031
• Rate benchmarking to adjacent utilities
• Proposition 218 notice assistance
• Assistance at public meetings
• Financial modeling tool
1151
5 Rate Study Process
1152
Rate
Study
Process
Study
Framework
Financial Planning
and Revenue
Requirement
Forecasting
Cost of Service
and Rate Design
Rate
Adoption
Process
New Rates
Effective on
July 1st
Public Outreach
Proposition 218 Compliance
6 1153
Rate Study Process
7 Financial Planning: Long-Term Utility Revenue Sufficiency • How much rate revenue is required each year?
Cost-of-Service: Equitable Allocation of Costs
• What costs should be allocated to each customer class? Rate Design: Equitable Recovery of Costs
• What rates should each customer class pay?
1154
Proposition 218 (Non-Legal)
• Rate revenues cannot exceed costs
• Rate revenues must be used for utility service
• Rates must be proportional to the costs incurred to provide utility service
• Utility service must be available
• 45-day notice period before formal rate adoption
8 1155
9 Financial Planning
1156
Bridging the Funding Gap
10 Revenues at Current Rates
Less: Projected Costs
• Operating Costs
• PAYGO CIP
• Debt Service
• Cash Reserve Target
• Debt Service Coverage Target
Funding Gap
Optimal Financing
Strategy
Annual Revenue
Requirement
1157
Recommended Rate Revenue
Adjustments
11 Effective Date % Increase $ Increase
July 1, 2026 15% $1.92
July 1, 2027 10% $1.46
July 1, 2028 10% $1.60
July 1, 2029 10% $1.76
July 1, 2030 10% $1.94
1158
Key Financial Plan Elements
12 • Capital Improvement Expenditures
➢ No External Debt Financing – All CIP paid by cash from rate revenues
Projected Capital Improvement Program Expenditures
FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Total
$5,492,891 $5,077,873 $4,620,864 $5,492,227 $7,139,895 $27,823,751 1159
Key Financial Plan Elements
13 • Operations and Maintenance Expenses
➢ 85% of O&M is for IEUA and Rialto treatment services
Projected O&M
Description FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Wholesale Treatment $25.9 $26.0 $26.0 $26.1 $26.1
Total O&M $30.6 $30.8 $31.1 $31.3 $31.5
% Wholesale Treatment 85% 84% 84% 83% 83%
1160
14 Description FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Annual Rate Revenue % Increase 15% 10% 10% 10% 10%
Revenue from Existing Rates $9.9 $9.9 $9.9 $9.9 $9.9
Revenue from Rate Increases $1.5 $2.6 $3.9 $5.3 $6.8
Total Rate Revenues $11.4 $12.5 $13.7 $15.1 $16.6
Non-Rate Revenues $26.8 $26.8 $26.9 $26.9 $27.0
Total Revenues $38.2 $39.3 $40.6 $42.0 $43.6
O&M Expenses $30.6 $30.8 $31.1 $31.3 $31.5
Transfers to Other Funds $10.2 $10.8 $9.7 $10.5 $12.3
Total Expenditures $40.8 $41.6 $40.8 $41.8 $43.9
Net Cash Flow ($2.7) ($2.3) ($0.2) $0.2 ($0.3)
Ending Operating Reserves $7.8 $5.5 $5.3 $5.5 $5.2
Target Reserves (60 Days of O&M) $5.0 $5.1 $5.1 $5.1 $5.2 Variance from Target $2.7 $0.4 $0.2 $0.4 $0.0
Operating Fund Financial Plan
1161
15 -$10
$0
$10
$20
$30
$40
$50
FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Millions
Operating Fund Financial Plan
O&M Expenses Reserve Funding Transfers Out
Current Revenues Proposed Revenues 1162
16 $5.5
$5.1
$4.6
$5.5
$7.1
$4
$5
$6
$7
$8
FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Millions
Rate Funded Capital Improvements
Rate Funded 1163
17 1164
18 Cost-of-Service
and
Rate Design
1165
19 Sewer Collection vs. Sewer Treatment
Sewer Collection
(City of Fontana)
➢ The City operates a sewer
collection and conveyance
system
➢ The City does not provide
wastewater treatment service
➢ City customers pay a monthly
$/EDU rate
Sewer Treatment
(IEUA and Rialto)
➢ Wastewater treatment is
provided by IEUA and Rialto
➢ IEUA and Rialto treatment
rates vary by customer type
➢ Fontana has no control over
IEUA or Rialto treatment rates
1166
Cost-of-Service Concepts
20 • Customers should pay rates proportional to costs incurred to meet their unique demand characteristics
• Differences in sewer rates are defined by the strength of customer sanitary discharges which increase wastewater treatment costs Fontana and Cost-of-Service
• Fontana does not provide wastewater treatment services – it merely transports sanitary sewer flows to IEUA or Rialto
➢ Regardless of their strength loadings, there is no difference in the costs incurred by the City to transport the sanitary flows from different types of customers ➢ There is no need for unique rates
1167
Calculation of the Proposed FY 2027
Sewer Rate (Applies to All Customers)
21 Line Description Amount
1 Required Revenue from Rates from Financial Plan $11,351,018 2 Number of EDUs on Served by the City 65,015
3 Annual Collection and Conveyance $/EDU (Line 1/Line 2) $174.59 4 Monthly Collection and Conveyance $/EDU $14.55
5 6 Current Monthly Collection and Conveyance $/EDU $12.63 7 $ Difference $1.92
8 % Difference 15%
1168
Proposed FY 2027 – FY 2031 Sewer Rates
(Applies to All Customers)
22 Current FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Monthly Collection
and Conveyance
$/EDU
$12.63 $14.55 $16.01 $17.61 $19.37 $21.31
1169
Presentation of Rates on the Proposition
218 Notice
23 • The City includes IEUA and Rialto wastewater treatment services on customer bills
• The amounts collected from customers for the wastewater treatment charges are passed-through to IEUA and Rialto
• IEUA and Rialto wastewater treatment rates must be included in the City’s Proposition 218 notice
1170
Summary of Rates for Proposition 218
Notice (1 of 2)
24 Wastewater Rate($/EDU) Current FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Regular
City Collection Charge $12.63 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge $27.02 $29.45 Pass-Through Pass-Through Pass-Through Pass-Through Total Charge $39.65 $44.00
Apartments
City Collection Charge $12.63 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge $18.91 $20.62 Pass-Through Pass-Through Pass-Through Pass-Through Total Charge $31.54 $35.17
Commercial and Industrial*
City Collection Charge $12.63 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge $27.02 $29.45 Pass-Through Pass-Through Pass-Through Pass-Through Total Charge $39.65 $44.00
Outside City
City Collection Charge $18.95 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge $40.53 $29.45 Pass-Through Pass-Through Pass-Through Pass-Through Total Charge $59.48 $44.00
Apartments Outside City
City Collection Charge $18.95 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge $28.37 $20.62 Pass-Through Pass-Through Pass-Through Pass-Through Total Charge $47.32 $35.17
Total Charge Dependent on the Pass-Through
Total Charge Dependent on the Pass-Through
Total Charge Dependent on the Pass-Through
Total Charge Dependent on the Pass-Through
Total Charge Dependent on the Pass-Through 1171
Summary of Rates for Proposition 218
Notice (2 of 2)
25 Wastewater Rate($/EDU) Current FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Outside City Commercial and Industrial*
City Collection Charge $18.95 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge $40.53 $29.45 Pass-Through Pass-Through Pass-Through Pass-Through Total Charge $59.48 $44.00
Extra Territorial
City Collection Charge $12.63 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge $27.02 $29.45 Pass-Through Pass-Through Pass-Through Pass-Through Extra Territorial Charge $23.53 Pass-Through Pass-Through Pass-Through Pass-Through Pass-Through Total Charge $63.18
Extra Territorial Apartments
City Collection Charge $12.63 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge $18.91 $20.62 Pass-Through Pass-Through Pass-Through Pass-Through Extra Territorial Charge $23.53 Pass-Through Pass-Through Pass-Through Pass-Through Pass-Through Total Charge $55.07
Rialto
City Collection Charge $12.63 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge** $89.90 $89.90 $92.61 $95.39 $98.26 $101.21 Total Charge $102.53 $104.45 $108.62 $113.00 $117.63 $122.52 Rialto Commercial*
City Collection Charge $12.63 $14.55 $16.01 $17.61 $19.37 $21.31 Treatment Charge** $89.90 $89.90 $92.61 $95.39 $98.26 $101.21 Total Charge $102.53 $104.45 $108.62 $113.00 $117.63 $122.52 Total Charge Dependent on the Pass-Through
Total Charge Dependent on the Pass-Through
Total Charge Dependent on the Pass-Through 1172
26 Comparison to Adjacent
Communities
1173
27 1174
28 1175
29 1176
Thank you!
Contacts:
Angie Flores – 512-790-2108 / [email protected]
John Wright – 951-395-1674 / [email protected]
Nick Kennedy – 213-262-9301 / [email protected]
30 1177
AFFIDAVIT OF PUBLICATION
Fontana Herald News
16981 Foothill Blvd., Suite F, Fontana, CA 92335
Proof of Publication
(2015.5 C.C.P.)
CNS-4047160
___________________________________________
State of California )
County of San Bernardino ) SS.
I am a citizen of the United States and a resident of
the State of California; I am over the age of eighteen
years, and not a party to or interested in the above
matter. I am the principal clerk of the printer and
publisher of Fontana Herald News, a newspaper
published in the English language in the City of
Fontana, County of San Bernardino, and adjudicated
a newspaper of general circulation as defined by the
laws of the state of California by the Superior Court
of the County of San Bernardino, under the date
March 15, 1955, Case No. 73171.That the notice, of
which the annexed is a copy, has been published in
each regular and entire issue of said newspaper and
not in any supplement thereof on the following dates,
to-wit:
Jun 12, 2026
Executed on: ____________________
At Yucaipa, California
I ceritfy (or declare) under penalty of perjury that the foregoing is true and correct.
___________________________________________
Signature
CNS-4047160 | Page 1 of 1
June 12, 2026
1178