STAFF REPORT
City of Lancaster
CPH 1
8/11/2026
TN
Date:August 11, 2026
To: Mayor Parris and City Council Members
From:Patti Garibay, Director - Community Development
Nicole Jones, Manager – Community Development
Subject:Lancaster Sewer System Service Charges for Fiscal Year 2026/27 and Proposed Sewer Service Charge Increases
Recommendation:
Conduct the continued public hearings on:
1. The Fiscal Year 2026/27 Lancaster Sewer System Service Charges and Annual Engineer's Report filed pursuant to Health and Safety Code section 5473; and
2. The proposed increases to the maximum authorized Sewer Service Charges pursuant to Article XIII D of the California Constitution (Proposition 218).
Receive public testimony, close both public hearings, receive the report regarding the tabulation of written protests, and:
If no majority protest exists, adopt Resolution No. 26-___ approving the proposed maximum sewer service charge increases and directing their placement on the County tax roll.
If a majority protest exists, adopt Resolution No. 26-___ approving the Fiscal Year 2026/27 annual sewer service charges at the existing rate and directing their placement on the County tax roll.
G.C. Section 84308: No
Fiscal Impact:
The existing sewer service charge is $78.00 per Sewage Unit, generating approximately $4.54 million annually through the County tax roll. If approved, the Proposition 218 proceedings would establish a new maximum authorized sewer service charge schedule, with the Fiscal Year 2026/27 charge set at $164.70 per Sewage Unit. Future annual charges would continue to be adopted by the City Council through the annual levy process and may not exceed the voter- approved maximum without additional Proposition 218 proceedings. The proposed increase will 2 4
8 6
provide funding necessary to support the continued operation, maintenance, repair, rehabilitation, and replacement of the City's sewer collection system while reducing reliance on one-time funding sources and deferred maintenance.
Background:
The City of Lancaster assumed responsibility for operation and maintenance of the Lancaster Sewer Collection System on July 1, 2008, following withdrawal from the Consolidated Sewer Maintenance District and adoption of Chapter 13.09 of the Lancaster Municipal Code.
Each year, the City Council conducts a public hearing to establish the annual sewer service charge based upon the Engineer's Report prepared pursuant to Health and Safety Code section 5473.
In addition to the annual levy, the City Council adopted Resolution No. 26-25 on May 26, 2026, initiating Proposition 218 proceedings to consider increasing the maximum authorized sewer service charges.
All required mailed notices were provided to affected property owners on May 30, 2026, not less than 45 days before the public hearing, in accordance with Article XIII D of the California Constitution and Government Code section 53755.
On July 14, 2026, the City Council opened both public hearings, received public testimony, and continued the hearings to August 11, 2026, to allow completion of the required newspaper publication before the hearings could be concluded.
Since that time:
The required publication has been completed.
Written protests continued to be accepted throughout the continuation period. The protest tabulation will be completed in accordance with Proposition 218 requirements and presented to the City Council at the continued hearing. The Engineer's Report remains on file with the City Clerk and available for public inspection.
At this continued hearing, the City Council will receive the final protest tabulation and determine whether a majority protest exists.
If a majority protest is not found, the Council may approve the proposed maximum sewer service charge schedule and establish the Fiscal Year 2026/27 annual sewer service charge.
If a majority protest is found, the proposed increase may not be imposed, and staff recommends adoption of the annual sewer service charge at the existing approved rate for Fiscal Year 2026/27.
Attachment:
Resolution 26- Approving Proposed Sewer Service Charge Increases (if applicable) Resolution 26- Approving Fiscal Year 2026/27 Sewer Service Charges Engineer's Report
Protest Tabulation Report