Agenda Report
Fullerton City Council
MEETING DATE: MAY 16, 2023
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: RAUL GODINEZ, INTERIM PUBLIC WORKS DIRECTOR PREPARED BY: STEPHEN BISE, CITY ENGINEER \ ASSISTANT DIRECTOR OF PUBLIC WORKS
JEROME JOAQUIN, ADMINISTRATIVE MANAGER
SUBJECT: SANITATION CHARGE ADJUSTMENT
SUMMARY
This action would adjust the Sanitation Charge (street sweeping, storm drain maintenance and improvements, tree trimming, concrete curb and gutter repair, etc.) calculation from 16% to 15.25%, effective Fiscal Year (FY) 2023-24.
RECOMMENDATION
Adopt Resolution No. 2023-XXX.
RESOLUTION NO. 2023-XXX – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FULLERTON, CALIFORNIA, ADOPTING A REVISED SANITATION CHARGE REDUCING THE PERCENTAGE USED TO CALCULATE THE CHARGE FROM 16% TO 15.25% EFFECTIVE FISCAL YEAR 2023-24
CITY MANAGER REMARKS
None.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statements:
Fiscal and Organizational Stability
Infrastructure and City Assets.
FISCAL IMPACT
The City determines the Sanitation Charge as a percentage of total water charges. Sanitation Charge revenues would increase when water rates increase on July 1, 2023 to fund necessary water infrastructure improvements based on the Water Rate Study.
The proposed resolution would lower the Sanitation Charge percentage for FY 2023-24 to maintain the 2018-19 revenue stream at approximately $8 million. Staff proposes lowering the Sanitation Charge from the current 16% of water charges (meter and consumption) to 15.25% effective July 1, 2023 to maintain this $8 million funding level.
DISCUSSION
Programs and Services Supported by the Sanitation Charge City Council established the Sanitation Charge in 1969 to maintain, improve and construct sewer and drainage facilities.
The City allocates the largest share (approximately 75 to 80%) of Sanitation Charge revenues in Sanitation Fund (Fund 23) to stormwater-related operations, maintenance and regulatory compliance. The City utilizes the remaining 20 to 25% for drainage capital improvements. This revenue provides programs and services, including, but not limited to:
Storm drain cleaning and maintenance
Underpass maintenance
Concrete curb and gutter repairs
Drainage system and channel maintenance
Street sweeping
Sidewalk cleaning and median maintenance
Tree trimming near gutters and storm drains.
The following chart shows the two-year average for actual expenditures from Fiscal Year 2020 to 2022.
Previous Reductions
City Council adopted several resolutions since 2019 reducing the sanitation charge to maintain Fiscal Year 2018-19 revenue levels:
Resolution No.
1978 through June 30, 2019
25% multiplied by Water Charges
6347
July 1, 2019 – June 30, 2020
22% multiplied by Water Charges
2019-31
July 1, 2020 – June 30, 2021
19% multiplied by Water Charges
2020-57
July 1, 2021 – June 30, 2022
17% multiplied by Water Charges
2021-37
July 1, 2022 – June 30, 2023
16% multiplied by Water Charges
2021-37
Sanitation Charge Reduction Notification
The City Attorney’s Office has opined that this item requires no formal noticing other than posting the agenda and agenda report because this action does not propose a fee increase nor establishes a new charge. The change would become effective July 1, 2023 if City Council approves this action.
Attachments:
Attachment 1 – Draft Resolution No. 2023-XXX
cc: City Manager Eric J. Levitt
Sanitation Charge Adjustment
May 16, 2023 - Page PAGE \* MERGEFORMAT 2