n July 2019, the Board of Directors of the BVCSD directed the General Manager to have a rate study prepared for the District’s sewer utility. The BVCSD sewer system serves approximately 500 single family homes, as well as the golf course and related country club facilities. Based upon the projections for future expenses, the current revenue stream is inadequate and an increase is needed for the Sewer Operating fund to be solvent.
- funding of normal operations
- adequate reserve funds
- funding of normal operating capital replacements
- ensuring satisfaction of borrowing covenants
Sewer Rate Informational Meeting, Power Point & Study
A recording of the March informational meeting is available below. Attached in the files section on this page are the accompanying power point and the sewer rate study.
Proposition 218 Requirements
In California, utility rates charged by municipal agencies and special districts are governed by rules and procedures adopted and made part of the State Constitution by the passage of Proposition 218 (Prop. 218), known as the “Right to Vote on Taxes Act”in November 1996. Proposition 218 is codified as Articles XIIIC and XIIID of theCalifornia Constitution. Since its passage, numerous court decisions have clarified the process for considering the adoption of new fees and charges and increases to existing fees and charges for certain utility services, including water and sewer utilities.
Substantive Requirements of Prop. 218
Under Prop. 218, a property-related fee or charge must meet the following substantive requirements:
- Revenues derived from the fee or charge must not exceed the funds required to provide the service
- Revenues derived from the fee or charge must not be used for any purpose other than that for which the fee is imposed.
- The amount of a fee or charge imposed must not exceed the proportional cost of the service attributable to the parcel.
- The fee or charge may not be imposed for a service unless the service is used by, or immediately available to, the owner of the property subject to the fee.
Procedural Requirements of Prop. 218
Prop. 218 requires that a public agency proposing a new or increased property related fee or charge provide written notice by mail to the owner of each parcel upon which the fee or charge will be imposed. The notice must contain the following information:
- the proposed amount of the fees or charges.
- the basis upon which the fees or charges were calculated.
- an explanation of the need for the new or increased fees or charges
- the date, time, and location of the public hearing at which the agency will consider the new or increased fees or charges.
The final step in the Prop. 218 process is the public hearing and the determination of whether there is a majority protest against the property-related fee or charge. The public hearing cannot be held until at least 45 days after the notice is mailed. At the end of the public hearing, if written protests against the proposed new or increased fees or charges are not submitted by a majority of affected property owners, the agency may proceed with imposing the fees or charges.
The Board of Directors of the District will conduct a Public Hearing on November 12, 2020, at 6:00 p.m., in the Board Room of the District’s Offices at 28999 South Lower Valley Road, Tehachapi, CA 93561, or as soon thereafter as the matter may be heard, to consider adjusting the current rates for its sewer services over a five-year period. Pending the status of state and local health directives regarding limitations on large gatherings during the Covid-19 pandemic, the public hearing may be held remotely. Links for public participation will be provided in the meeting Agenda and posted on the District’s website: