Item Number: 5
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 Nos. VWD 26-005 and VWD 26-006 of the Board of Directors of the Victorville Water District making its determination to Fix, Levy, and Collect Standby Charges for Fiscal Year 2026-2027
Recommendation:
That the Honorable Victorville Water District Board of Directors:
(1) Open and Conduct a Public Hearing, receive testimony for the adoption of proposed Resolution Nos. VWD 26-005 and VWD 26-006;
(2) Close the Public Hearing;
(3) Adopt Resolution No. VWD 26-005 entitled, “A Resolution of the Board of Directors of the Victorville Water District making its determinations to Fix, Levy, and Collect Standby Charges for Water Improvement District Number One for Fiscal Year 2026-2027”;
(4) Adopt Resolution No. VWD 26-006 entitled, “A Resolution of the Board of Directors of the Victorville Water District making its determinations to Fix, Levy, and Collect Standby Charges for Water Improvement District Number Two for Fiscal Year 2026-2027”; and
(5) Authorize the Director of Finance/City Treasurer to execute all documents related to the implementation and the levying of Standby Charge Fees for Water Improvement District One and Water Improvement District Two.
Fiscal Impact:
The Victorville Water District ("District") will receive revenue from Water Standby Charge assessments within both Water Improvement District No. 1 (WID 1) and Water Improvement District No. 2 (WID 2).
Proposed Resolution No. VWD 26-005 authorizes the District to submit the Fiscal Year 2026-2027 Water Standby Charge assessments for WID 1 to the San Bernardino County Auditor-Controller/Treasurer/Tax Collector for placement on the County tax roll. The 4 7
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proposed assessments include 4,878 parcels and are expected to generate approximately $103,200 in revenue, which will be recorded to account 4100010-44940 (WID 1- Standby Fees).
Proposed Resolution No. VWD 26-006 authorizes the District to submit the Fiscal Year 2026-2027 Water Standby Charge assessments for WID 2 to the San Bernardino County Auditor-Controller/Treasurer/Tax Collector for placement on the County tax roll. The proposed assessments include 12,546 parcels and are expected to generate approximately $337,787.70 in revenue, which will be recorded to account 4110010-44940 (WID 2- Standby Fees).
Strategic Plan Goal:
This item aligns with Goal A, “Financial Stability.” Standby fee revenues provide an important, stable funding source for the District. A significant portion of these revenues are pledged toward repayment of outstanding bond obligations, while the remainder supports the ongoing operating costs required to maintain the water system. By offsetting these essential expenses, standby fees help reduce the amount that must be recovered through water rates, contributing to keeping overall water rates as low as possible.
Background:
On June 16, 2026, the Board of Directors adopted Resolution Nos. VWD 26-003 and VWD 26-004, Initiating Proceedings to Fix, Levy, and Collect Standby Charges for WID1 and WID2 for Fiscal Year 2026-2027.
Water Improvement District Number One (WID 1)
Resolution No. VWD 26-003 established the District’s intent to initiate the levy process for standby fees within Water Improvement District No. 1 (WID 1) for Fiscal Year 2026- 2027 at the existing rate of $10.00 per acre per year, or $10.00 per parcel for parcels smaller than one acre. This methodology has been used continuously since 1975 in WID 1 (formerly known as the Victor Valley Water District) and is authorized under California Water Code Section 31031.
Standby fees apply to parcels where District water distribution mains have been constructed within 660 feet of the property and the parcel does not have a District water service connection. The standby fee does not apply to parcels with an existing District water service connection, governmental and public agency parcels, or easement-only parcels.
Assessment details are listed below:
•Maximum allowable rate: $10.00 per acre, or $10.00 per parcel less than acre (statutory limit)
•District-applied rate: $10.00 per acre per year (rounded up to the nearest acre), or $10.00 per parcel for parcels smaller than one acre (unchanged from the prior year).
•Example assessments:
o0.2 acres = $10.00
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o5.0 acres = $50.00
o5.2 acres = $60.00
•Exemptions: connected parcels; governmental/public agency parcels; easements •Applies to parcels within 660 feet of District water distribution mains Water Improvement District Number Two (WID 2)
Resolution No. VWD 26-004 established the District’s intent to initiate the levy process for standby fees within Water Improvement District No. 2 (WID 2) (formerly known as the Baldy Mesa Water District) for Fiscal Year 2026-2027 at the existing rate of $15.00 per acre per year, prorated for parcels larger than one acre. California Water Code Section 31032.1 authorizes the District to levy standby fees of up to $30.00 per acre per year.
However, the District has elected to continue levying the reduced rate of $15.00 per acre per year, prorated for parcels larger than one acre.
Governmental and public agency parcels and easement-only parcels are exempt from the standby fee.
Assessment details are listed below:
•Maximum allowable rate: $30.00 per acre (statutory limit) •District-applied rate: $15.00 per acre per year (prorated for parcels larger than one acre), or $15.00 per parcel for parcels smaller than one acre (unchanged from the 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 As directed by Resolution Nos. VWD 26-003 and VWD 26-004, all required actions have been completed. Notices of the Public Hearing advising affected property owners of the availability of the written report, as well as the date, time, and location of the Public Hearing, were mailed on June 26, 2026. Notice of the Public Hearing was also posted on the City’s website and published in the newspaper on July 3, 2026, and July 17, 2026, in accordance with the applicable notice requirements.
After June 26, 2026, staff noticed that the Notice of Public Hearing had been published on July 3, 2026, with the correct resolution titles and public meeting information; however, there was a typographical error in the resolution numbers. Staff took immediate corrective action, publishing a Notice of Correction that reflected the correct resolution numbers in the newspaper and website for the July 3, 2026, publication and ensured that the July 17, 2026, publication had the correct resolution numbers, along with the information posted on the City’s website.
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Discussion:
Proposed Resolution Nos. VWD 26-005 and VWD 26-006 finalize the standby fee levy proceedings by authorizing the District Board of Directors, following the close of the Public Hearing, to Fix, Levy, and Collect Standby Charges for WID 1 and WID 2.
Standby fees must be levied annually, without interruption, to preserve the District’s authority to continue imposing the existing standby fee. The proposed resolutions do not modify the assessment rates or the methodology used to calculate the standby fees. If the standby fees are discontinued, they may not be reinstated in a subsequent year except as provided in California Government Code Section 53753 and in compliance with the notice, protest, and public hearing requirements applicable to new or increased assessments under Proposition 218.
Beginning in Fiscal Year 2026-2027, the remaining WID 2 bond obligation will be paid in full using available resources within Fund 411. As a result, Water Standby Fee revenues collected within WID 2 will no longer be pledged toward debt service and will instead be used to offset water system operation and maintenance costs, consistent with the use of Water Standby Fee revenues collected within WID 1. This change affects only the allocation of Water Standby Fee revenues and does not change the amount assessed to property owners or the methodology used to calculate the standby fee. The purpose of the Water Standby Fee remains unchanged and continues to support the operation, maintenance, and long-term availability of water system infrastructure and services within each respective Improvement District.
Staff recommend that the Board of Directors conduct the Public Hearing, receive public testimony, close the Public Hearing, and adopt Resolution Nos. VWD 26-005 and VWD 26-006 to Fix, Levy, and Collect Standby Charges for WID 1 and WID 2 for Fiscal Year 2026-2027. Staff further recommend authorizing the Director of Finance/City Treasurer to execute all documents necessary to implement and levy the standby fees for both Water Improvement Districts.
Staff remain available to answer any questions the Board of Directors may have.
Prepared By:
Anne Darroch, Sr. Administrative Analyst
Mel Krejckant, Public Works & Water Administrative Manager Attachments: A. Resolution No. VWD 26-005
B. Resolution No. VWD 26-006
C. California Water Code §31031 through 31032.9