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 THE CITY COUNCIL OF THE CITY OF FULLERTON HEREBY RESOLVES AS FOLLOWS:
WHEREAS, Fullerton developed a Sanitation Fund over many years for activities such as sewer cleaning, storm drain cleaning, street sweeping, system repairs, underpass, drainage system and channel maintenance, concrete curb and gutter repairs, tree trimming, sidewalk cleaning, necessary equipment and other related charges.
WHEREAS, the City calculates the Sanitation Charge utilizing a percentage multiplied by water charges (fixed meter and water usage) on a customer utility bill.
WHEREAS, City Council approved a series of water rate increases on June 4, 2019 to fund necessary operational and capital costs of the water system.
WHEREAS, City Council expressed a desire to maintain the then-current approximately $8 million Sanitation Charge revenue rather than increase the charge to customers by collecting revenue as percentage of Sanitation Charge as water rates increase.
WHEREAS, the City set the rate at 25% multiplied by water charges (fixed meter and water usage) prior to Fiscal Year (FY) 2020.
WHEREAS, City Council adopted Resolution No. 2019-31 on June 18, 2019, lowering the percentage to calculate the Sanitation Charge from 25% to 22%, effective July 1, 2019.
WHEREAS, City Council adopted Resolution No. 2020-57 on June 16, 2020, lowering the percentage to calculate the Sanitation Charge from 22% to 19%, effective July 1, 2020.
WHEREAS, City Council adopted Resolution No. 2021-37 on June 1, 2021, lowering the percentage to calculate the Sanitation Charge from 19% to 17% effective July 1, 2021. Resolution No. 2021-37 also lowered the percentage to calculate the Sanitation Charge from 17% to 16%, effective July 1, 2022.
WHEREAS, the next water rate adjustment becomes effective July 1, 2023 and the City must further reduce the Sanitation Charge percentage from the FY 2022-23 rate of 16% to 15.25% effective July 1, 2023.
WHEREAS, the City plans to review the Sanitation Charge and related programs as the Fund does not have adequate funding for the needs of each program and legislative changes and court rulings over time have affected the structure of these types of fees.
WHEREAS, the City will commission a cost-of-service study to review these programs and provide recommendations and any appropriate public process.
WHEREAS, The City Attorney’s Office opined that this action required no additional formal noticing other than posting the agenda and agenda report related to adoption of this resolution as this action does not increase the current charge and does not establish a new charge.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF FULLERTON RESOLVES AS FOLLOWS:
Reduce the percentage for the Sanitation Charge calculation from 16% multiplied by water charges (fixed meter and water usage) to 15.25% effective July 1, 2023.
ADOPTED BY THE FULLERTON CITY COUNCIL ON MAY 16, 2023.
__________________________
Fred Jung
Mayor
ATTEST:
__________________________
Lucinda Williams, MMC
City Clerk
__________________________
Date
Resolution No. 2023-XXX