July 21, 2026
Abalone Cove Sewer
Service Charge
FY 2026-27
History - Charge
▪ Created in 2001
▪ Using Health and Safety Code 5471 and Government Code 54344
▪ Can increase with CPI but not exceed 7%
▪ Created to help fund costs associated with operating and maintaining the Abalone Cove Sewer System
History - Area
▪ Septic tanks replaced by sanitary sewer
▪ Charge only applies to residents within the District and connected to the sanitary sewer.
District Limits
Background - Charge
▪ To collect on tax rolls , a written report is required ▪ Historically has supplemented costs for the sewer
▪ Charge is regularly increased with CPI not to exceed 7% Rates and Zones
Service Charge - Rates
(continue)
Charge will increase/decrease based on occupied homes
The collected charge has been less than actual O&M costs ❑ FY 2001-02: $21,595 (Lowest)
❑ FY 2024-25: $65,280 (Highest)
❑ FY 2026-27: $61,917 (Current)
Proposed charge (~3%) < Expenditures
▪ Council can elect to:
▪ Eliminate the charge and subsidize the entire system
▪ Collect the charge without a CPI increase
▪ Collect the charge with increases that are less than or equal to CPI (3.4%) ▪ Not operate and maintain Abalone Cove Sewer – This will result in red tagging all homes in the District
Options
▪ Hold a public hearing to receive public opinion
▪ Increase Abalone Cove Sewer Charge by 3.4% CPI
▪ Adopt Resolution No. 2026-__ , increasing the rates by 3.4% Recommendations
Questions