Item Number: 23
City Council / Board of Directors
Written Communications
Meeting of: June 16, 2026
Submitted By:
Doug Mathews, Director of Public Works and Water
Subject:
Consideration of Resolution Nos. VWD 26-003 and VWD 26-004 - Resolutions of the Board of Directors of the Victorville Water District making its determination to Fix, Levy, and Collect Standby Charges for Water Improvement District Number One and Water Improvement District Number Two for Fiscal Year 2026-2027 Recommendation:
That the Honorable Victorville Water District Board of Directors:
(1) Approve Resolution No. VWD 26-003 authorizing the Victorville Water District to initiate proceedings to fix, levy, and collect Standby Charges for Water Improvement District One for Fiscal Year 2026-2027; (2) Approve Resolution No. VWD 26-004 authorizing the Victorville Water District to initiate proceedings to fix, levy, and collect Standby Charges for Water Improvement District Two for Fiscal Year 2026-2027; and (3) Set July 21, 2026, as the date for the Public Hearing for the purpose of hearing arguments for and against determinations to fix, levy and collect water standby charges as set forth in the aforementioned resolutions.
Fiscal Impact:
The proposed resolutions authorize the Victorville Water District (District) to have Water Improvement District Number One (WID1) and Water District Improvement District Number Two (WID2) Standby Charges for Fiscal Year 2026-2027 (Tax Roll Year 2026) assessed by the County Assessor. These charges are currently estimated to be $103,200 for WID 1 and $337,787.70 for WID 2.
The District will incur a small expense for mailing the required public hearing notices, estimated at $9,500. This expense was budgeted in the current fiscal year under the following account code 4100030-52300.
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Strategic Plan Goal:
This item aligns with Goal A, “Financial Sustainability” of the City’s Strategic Plan. The revenue generated from the standby fees will be collected as a revenue stream within the District’s 410 operating budget. The collection of the standby fee assists with maintaining lower water rates.
Background:
Each year the District must take steps, in compliance with California Water Code Section 31031 et seq. and Government Code Section 6066, to levy and collect Standby Charges.
These steps include:
(1) initiating proceedings to fix, levy and collect water standby charges for the fiscal year (establishing a hearing date, etc.);
(2) notifying the general public of the public hearing with publications in the newspaper on two separate dates;
(3) mailing notices of the hearing to the affected parcel owners; and (4) conducting the public hearing.
A standby charge is an annual assessment that allows the District to recover a portion of the cost of maintaining water system facilities that are available to serve a property, regardless of whether that property is currently connected to or using water service.
These funds help support the continued operation, maintenance, and readiness of pipelines, storage tanks, wells, pumping facilities, and related infrastructure. By ensuring that all parcels benefiting from the availability of water service share in the cost of maintaining these facilities, the standby charge supports long-term financial stability, reduces the burden on active water customers, and helps keep water rates as low as possible.
Water Improvement District Number One (WID 1)
Since 1975, WID 1 (formerly known as the Victor Valley Water District) has assessed a Water Standby Charge. This charge is authorized under California Water Code Section 31031 and is limited to $10.00 per acre per year, or $10.00 per parcel for parcels less than one acre. The proposed Resolution No. VWD 26-003 initiates the process to levy this charge for Fiscal Year 2026–2027 at the same rate as the prior year. Parcels are subject to the charge when water facilities have been constructed within 660 feet of the property. Any parcels already connected to District water service, along with all governmental and public agency parcels, and easement-only parcels are exempt.
Assessment details are listed below.
Maximum allowable rate: $10.00 per acre, or $10.00 per parcel under one acre (statutory limit)
District-applied rate: $10.00 per acre, or $10.00 per parcel under one acre (unchanged from prior year)
Example assessments:
o0.2 acres = $10.00
o5.0 acres = $50.00
o5.2 acres = $60.00
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Exemptions: connected parcels; governmental/public agency parcels; easements Applies to parcels within 660 feet of District-constructed water facilities Water Improvement District Number Two (WID 2)
Since 1969, WID 2 (formerly known as the Baldy Mesa Water District) has assessed a Water Standby Charge. Authorized by California Water Code Section 31032.1, the charge may be up to $30.00 per acre per year, or $30.00 per parcel for parcels under one acre.
The District continues to levy a reduced rate of $15.00 per acre, prorated for parcels larger than one acre. The proposed Resolution No. VWD 26-004 initiates the process to levy this charge for Fiscal Year 2026–2027 at the same rate as the prior year. Governmental and public agency parcels and easement-only parcels are exempt from the assessment.
Assessment details are listed below.
Maximum allowable rate: $30.00 per acre (statutory limit) District-applied rate: $15.00 per acre (unchanged from prior year) Example assessments:
o0.2 acres = $15.00
o5.0 acres = $75.00
o5.2 acres = $78.00
Exemptions: governmental/public agency parcels; easements Applies to parcels for which water facilities have been financed and constructed Discussion:
Standby Charges must be assessed each year, without interruption, in order for the District to maintain the previously established assessment rate. The proposed resolutions do not modify the existing rate or the methodology used to calculate these charges. If the District were to discontinue the Standby Charge for any year, it could not be reinstated in the future except under the procedures outlined in California Government Code Section 53753, which include additional notice, protest, and hearing requirements applicable to increased assessments under Proposition 218.
Revenues collected through the Water Standby Charge support the costs associated with infrastructure available to serve properties within each Improvement District, including the ongoing costs of operating, maintaining, repairing, and replacing system facilities, as well as debt service incurred for the financing of such infrastructure. For both Improvement Districts, these revenues offset the actual cost of maintaining water system facilities, including water mains, that provide immediate service availability to parcels. Although WID 1 and WID 2 remain separate Improvement Districts, the District operates and maintains them as a single integrated water system, with facilities and operations that benefit customers throughout both service areas.
For WID 2, annual tax revenues were previously allocated to service bond debt incurred for improvements benefiting the WID 2 service area. Because the remaining bond obligation will be paid off using existing Fund 411 resources, tax revenues collected from WID 2 beginning in FY 2026/27 will instead be used to offset system operation and maintenance costs, consistent with the treatment of tax revenues collected from WID 1. 4 7
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This change does not affect the purpose of the Water Standby Charge, which continues to support water system infrastructure and service availability within each Improvement District.
The list of all parcels proposed to be levied the Standby Charge will be made available for public review both online and in person with the District Secretary. Notices will be mailed to all property owners affected by the levy in accordance with statutory requirements. A Public Hearing notice will also be published in a newspaper of general circulation to ensure broad public awareness and to provide all interested parties with the opportunity to review the proposed assessments and participate in the hearing process.
Resolution No. VWD 26-003 authorizes the District to initiate proceedings to fix, levy, and collect the Water Standby Charge for WID 1 for Fiscal Year 2026–2027, continuing the assessment at the same rate previously established. Resolution No. VWD 26-004 authorizes the same actions for WID 2 for Fiscal Year 2026–2027, likewise maintaining the existing assessment rate.
Both resolutions also establish July 21, 2026, as the date of the Public Hearing, during which the Board will receive any testimony for or against levying the standby charges before making its final determination. This hearing is required under applicable provisions of the California Water Code and Government Code to ensure transparency and provide property owners the opportunity to participate in the annual assessment process.
Prepared By:
Anne Darroch, Senior Administrative Analyst
Mel Krejckant, Public Works and Water Administrative Manager Attachments: A. Resolution No. VWD 26-003
B. Resolution No. VWD 26-004
C. Water Code Sections 31031 through 31032.9
D. Notice of Public Hearing on Water Standby Charges- WID 1 E. Notice of Public Hearing on Water Standby Charges- WID 2