Item Number: 2
City Council / Board of Directors
Public Hearing(s)
Meeting of: July 21, 2026
Submitted By:
Doug Mathews, Director of Public Works and Water
Subject:
Consideration of Resolution No. VWD 26-012 - A Resolution of the Board of Directors of the Victorville Water District Adopting New Rates, Fees, and Charges for Water Services Recommendation:
That the Honorable Victorville Water District Board of Directors:
(1) Review and consider all valid written legal objections and District responses; (2) Determine that staff has adequately responded to all valid legal objections and direct that the Public Hearing proceed in accordance with AB 2257; (3) Open the Public Hearing;
(4) Receive testimony, public comment, and consider all protests against the Victorville Water District’s adoption of new rates, fees, and charges for water services;
(5) Determine if a majority protest exists;
(6) Close the public hearing;
(7) If no majority protest exists, approve Resolution No. VWD 26-012 to adopt the new Water Rates, Fees, and Charges for Water Services.
Fiscal Impact:
Proposed Resolution No. VWD 26-012 (Attachment A) authorizes the District to implement a new water rate structure, which is designed to meet the District’s cost for service and yield an annual average revenue rate increase of 4%. This annual increase is essential to cover the growing cost of capital improvement projects that are necessary to meet state regulatory guidelines and for the District to continue to provide reliable water services and quality drinking water to District customers.
Strategic Plan Goal:
This item aligns with Goal A, Financial Sustainability, and Goal E, Invest in Infrastructure.
Periodically reviewing, evaluating, and adjusting water service rates helps ensure the 4 8
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District has the financial resources necessary to support operations, fund capital improvements, maintain infrastructure, and meet regulatory requirements.
Background:
Water Rate Increase History
On July 20, 2021, the Board of Directors of the Victorville Water District (the “District”) adopted Resolution No. VWD-21-011, which established new Water Rates for a five-year period covering Fiscal Year (FY) 2021/2022 through FY 2025/2026. As the District is now in the final year of that rate cycle, a new water rate study was required to evaluate projected operational, capital, and financial needs for the next five-year period (FY 2026/2027 through FY 2030/2031).
Concurrent with the recently completed and adopted Water Rate Study, the District has also updated its Water Master Plan (WMP). The WMP serves as the District’s long-range planning document by evaluating existing system conditions, projecting future water demands, identifying infrastructure improvements needed to meet future service demands and regulatory requirements, and establishing a capital improvement program.
The capital improvements identified in the WMP were incorporated into the rate model to ensure adequate funding over the upcoming five years. The WMP update was completed with assistance from Water Systems Consulting (WSC) and is being presented to the District Board of Directors (the “District Board”) for adoption as a separate agenda item on the July 21, 2026 District Board meeting.
2026 Water Rate Study, Rate Workshop, and Intent Meeting In December 2025, Bartle Wells Associates was awarded the contract for the 2026 Water Rate Study (Rate Study) and began data collection, analysis, and bi-weekly coordination meetings with District staff soon thereafter.
On April 27, 2026, the District Board held a workshop to review the preliminary findings of the Rate Study, including a proposed five-year schedule of 4% annual rate increases beginning August 1, 2026. This cost-of-service analysis incorporates repayment of the remaining Baldy Mesa Water District bond debt and reallocates the revenues previously pledged for debt service to support ongoing District operations, helping minimize future rate increases while ensuring sufficient funding for operational and capital needs.
The District Board discussed the proposed rate structure during the workshop, including its greater effect on residential customers. Staff and the rate consultant explained that recent case law had prompted the replacement of the District’s existing tiered volumetric rate structure with a single volumetric rate that more closely aligned with current judicial interpretations of Proposition 218 cost-of-service and proportionality requirements.
Updated cost-of-service analyses also resulted in minor adjustments to the fixed charges for residential meter customers. Staff further explained that residential customers experienced comparatively greater changes in the first year only because the tiered rate 4 8
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structure was replaced with a single volumetric rate, thereby eliminating the rate design that had previously provided lower volumetric rates for qualifying residential water use.
Staff advised the District Board that the refined 2026 Water Rate Study would be returned for consideration and, if approved, authorization from the District Board to initiate the Proposition 218 rate-setting process, as set out in Article XIII D, Section 6 of the California Constitution, would be sought.
On June 2, 2026, the District Board adopted Resolution No. VWD 26-009, which accepted the Rate Study prepared by Bartle Wells, authorized the mailing of public hearing notices regarding the proposed changes in water service rates, and established that the Public Hearing on the rates would take place during the District Board’s July 21, 2026 regular meeting in the City Council Chambers at 6:00 pm. The Notices of Public Hearing, as further described below, were mailed to all affected property owners on June 4, 2026.
At that same meeting, staff outlined and recommended the District Board adopt an additional “written objection” procedure pursuant to AB 2257 (Government Code Sections 53759.1 and 53759.2). Under this procedure, property owners must submit timely and valid written objections to the proposed water rates prior to the objection submission deadline date specified in the Notice of Public Hearing. Failure to submit a timely written objection constitutes a failure to exhaust administrative remedies and bars any subsequent legal action challenging the adopted rates. Utilizing this procedure also provides the District with an opportunity to address rate concerns prior to final adoption.
To ensure awareness of and compliance with AB 2257, the District Board adopted Resolution No. VWD 26-011 to establish AB 2257 procedures.
Discussion:
District staff, with the assistance of the Finance and IT departments, identified all Assessor Parcel Numbers (APNs) receiving water service from the District and therefore subject to the proposed rates (Proposed Rates) established in the Rate Study. In compliance with Proposition 218, Notices of Public Hearing describing the Proposed Rates, the basis for the rate adjustments, the calculation methodology, and written protest procedures were mailed to the record owners of each affected parcel at least 45 days prior to the Public Hearing.
In addition, to comply with the procedures in AB 2257 and Resolution No. VWD 26-011, the Notices of Public Hearing contained: a link to the City/District website where the Rate Study and related materials would be posted; a telephone number at which to call the District for additional information; detailed and conspicuous instructions on how to file a written objection (“Legal Objection”); a requirement that any valid objection explain the legal basis for the claim with specificity; and the deadline by which Legal Objections must be submitted. A copy of the Public Hearing Notice is in Attachment B.
As of the preparation of this Staff Report, one valid Legal Objection has been received.
This valid Legal Objection, and District staff’s responses thereto, are in Attachment C for the District Board’s review and consideration. As the deadline for submitting Legal Objections (July 20, 2026, at noon) occurs after the posting of this agenda, any additional 4 8
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valid Legal Objections received (and Staff’s responses), will be provided as a supplement to this Staff Report prior to the start of the July 21, 2026, meeting.
Based upon the Legal Objection currently attached, and as indicated in the District response thereto, District staff recommend that the District Board proceed with conducting the Public Hearing, as no clarifications, revisions, further review, or other actions regarding the proposed water rates appear to be warranted.
AB 2257 and the procedures in Resolution No. VWD 26-011 require the District Board to consider and review all valid Legal Objections received and District responses, and determine one of the following prior to conducting the Public Hearing:
(1) Whether the valid Legal Objections and the District’s responses warrant clarifications of the proposed water rates;
(2) Whether a reduction of the proposed water rates is warranted; (3) Whether to further review the proposed water rates before determining whether clarification or reduction is needed;
(4) Whether to proceed with the Public Hearing and protest tabulation.
Staff are confident that the District’s responses to all valid legal objections, provided in Attachment C and included as supplemental materials to this Staff Report if received after agenda posting, adequately address the issues raised. However, consistent with AB 2257 and Resolution No. VWD 26‑011, it is ultimately the District Board’s discretion to determine whether these responses are sufficient and whether to proceed with the Public Hearing and protest tabulation. Findings consistent with this course of action have been included in proposed Resolution No. VWD 26-012.
As outlined in the Public Hearing Notice, a majority protest exists only if written protests are submitted by the owners of a majority (50% plus one) of the identified parcels before the close of the Public Hearing. To be considered valid, each written protest must: (1) state opposition to the Proposed Rates; (2) identify the APN or service address; and (3) include the printed name and original signature of the property owner of record. Only one written protest per parcel may be counted.
The District Secretary has received and reviewed all written protests submitted to date.
As of the preparation of this Staff Report, the District has not received written protests from a majority of property owners. In accordance with Proposition 218, the Secretary will formally announce the final number of valid written protests upon closure of the Public Hearing. If a majority protest is received, the District Board is legally prohibited from adopting the Proposed Rates. If no majority protest exists, the District Board may proceed with consideration of Resolution No. VWD 26-012 adopting the Proposed Rates.
The Proposed Rates are based on the comprehensive Rate Study prepared by Bartle Wells Associates and accepted by the Board through Resolution VWD 26-009. The Rate Study includes detailed financial planning, cost-of-service analysis, and rate design that allocate costs proportionally to customers in accordance with Article XIII D, Section 6 of 4 8
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the California Constitution (Proposition 218). The Proposed Rates are necessary to meet increasing operating costs, implement planned capital improvement projects, address inflationary pressures, maintain prudent reserve levels, and ensure the financial stability of the District’s water utility.
Rate Table Summary
The Rate Study proposes adjustments to fixed service charges and volumetric rates over a five-year period beginning August 1, 2026. Monthly fixed service charges are based on meter size and hydraulic capacity.
The Study also recommends replacing the prior two-tier residential volumetric structure with a uniform volumetric rate for all domestic water customers, set at $2.28 per hundred cubic feet (HCF) in FY 2026/27 and increasing annually to $2.67 per HCF by FY 2030/31.
Updated volumetric rates apply similarly to recycled water, untreated well (non-potable) water, construction flow meters, and intertie customers, all of which reflect the proportional cost of service per the Rate Study.
These rates balance revenue stability with fairness and transparency and provide the necessary funding for system operations, reinvestment in infrastructure, and compliance with regulatory requirements.
Water Consumption Rates
New Water Rates and Effective DatesConsumption Rates (per hcf) All Customers: 08/01/2026 07/01/2027 07/01/2028 07/01/2029 07/01/2030 Single Family Residence (SFR) $2.28 $2.37 $2.47 $2.56 $2.67 Standard Domestic Water $2.28 $2.37 $2.47 $2.56 $2.67
Construction Flow Meter /
Intertie / Fire $3.89 $4.04 $4.21 $4.37 $4.55
Untreated (Well) Water * $1.65 $1.71 $1.78 $1.85 $1.93
Recycled / Reclaimed Water ** $1.86 $1.93 $2.01 $2.09 $2.18 Monthly Fixed Water Service Charges
New Water Rates and Effective DatesMonthly Fixed Water
Service (Meter Charge) 08/01/2026 07/01/2027 07/01/2028 07/01/2029 07/01/2030 ¾ inch $24.58 $25.56 $26.59 $27.65 $28.76
1 inch $35.74 $37.17 $38.66 $40.20 $41.81
1.5 inch $63.64 $66.19 $68.83 $71.59 $74.45
2 inch $97.12 $101.00 $105.04 $109.25 $113.62
3 inch $286.84 $298.31 $310.25 $322.66 $335.56
4 inch $498.88 $518.84 $539.59 $561.17 $583.62
6 inch $789.04 $820.60 $853.43 $887.56 $923.07
8 inch $1,570.24 $1,633.05 $1,698.37 $1,766.31 $1,836.96 10 inch $2,518.84 $2,619.59 $2,724.38 $2,833.35 $2,946.69 12 inch $3,076.84 $3,199.91 $3,327.91 $3,461.03 $3,599.47 Monthly Fire Fixed Water New Water Rates and Effective Dates 4 8
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Service (Meter Charge) 08/01/2026 07/01/2027 07/01/2028 07/01/2029 07/01/2030 1 inch $8.49 $8.83 $9.18 $9.55 $9.93
1.5 inch $9.14 $9.51 $9.89 $10.28 $10.69
2 inch $9.92 $10.32 $10.73 $11.16 $11.60
3 inch $14.34 $14.91 $15.51 $16.13 $16.78
4 inch $19.28 $20.05 $20.85 $21.69 $22.55
6 inch $26.04 $27.08 $28.16 $29.29 $30.46
8 inch $44.24 $46.01 $47.85 $49.76 $51.75
10 inch $66.34 $68.99 $71.75 $74.62 $77.61
12 inch $79.34 $82.51 $85.81 $89.25 $92.82
Comparison to Other Jurisdictions
The Rate Study includes a comparative regional review of single-family residential water bills based on an average monthly usage of 12 HCF. As illustrated in Figure 9 of the Rate Study and listed below, the District’s proposed FY 2026/27 charges remain among the lowest in the region, with only one surveyed agency presenting lower monthly costs. Even with the proposed rate adjustments, Victorville Water District customers will continue to pay below-average monthly water bills compared to peer agencies, demonstrating that the District remains competitively and affordably positioned within the regional water market.
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These comparative findings support the Study’s conclusion that the District’s Proposed Rates are reasonable, cost-justified, and consistent with maintaining a reliable and financially sustainable water system.
Environmental Exemption
As set forth in the Recitals thereof, the District Board finds that Resolution No. VWD 26- 012 is exempt from environmental review under the California Environmental Quality Act (“CEQA”), pursuant to CEQA Guidelines Section 15061(b)(3) (No Possibility that the Activity may have a Significant Effect on the Environment) and Section 15273 (Adoption of Rates, Tolls, Fares, and Charges).
If adopted, the new Water Rates will take effect for all billings issued on or after August 1, 2026, with subsequent annual adjustments effective each July 1 through FY 2030/31.
These rates will ensure the District’s ability to fund operations, implement capital improvements, maintain financial stability, and provide safe and reliable water service to its customers.
District staff respectfully recommend that the District Board review and consider all valid written Legal Objections received and the District’s written responses; make one of the listed determinations with respect to the proposed New Rates; open the Public Hearing; receive testimony, public comment, and consider all valid protests against the proposed new rates; determine if a majority protest exists; close the Public Hearing; and if no majority protest exists, adopt Resolution No. VWD 26-012.
District staff are available to answer any questions the Board may have.
Prepared By:
Mel Krejckant, Public Works & Water Administrative Manager Attachments: A. Resolution No. VWD 26-012
B. Copy of Mailed Public Hearing Notice
C. Valid Objections and District Responses