Apple Valley Foothill County Water District

Proposition 218 Notification

Notice of Public Hearing

Water Rate Adjustments

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Hearing Date and Time: February 23, 2026

Hearing Location:  22545 Del Oro Road, Apple Valley, CA 92308

This letter is to advise you that the Apple Valley Foothill County Water District is proposing a rate adjustment for all residential customers. The proposal will be considered by the Apple Valley Foothill County Water District Board of Directors at a Public Hearing on February 23, 2026. You are receiving this notice in compliance with California Proposition 218 requirements, which require that all impacted property owners be mailed notice of proposed rate changes at least 45 days prior to a public hearing.

BASIS OF PROPOSED RATES

The Apple Valley Foothill County Water District is required by State law to collect revenues sufficient to fund the current and future costs of operating, maintaining, and administering the existing water facilities, as well as the capital improvements and infrastructure replacement program. These revenues allow the Apple Valley Foothill County Water District to protect public health and safety and deliver clean, safe drinking water to all connections. By State law, the Apple Valley Foothill County Water District may not collect more revenue than is necessary to recover the costs of providing services. The proposed rate restructures were developed to meet all legal requirements and fairly and equitably recover the required revenue. A detailed explanation of the projected inflationary impact on operating costs is available for public review at the district office, 22545 Del Oro Road, Apple Valley, CA 92308.

Why Apple Valley Foothill County Water District Water Rates Must Be Adjusted

Customer water rates are the primary source of revenue to operate the Apple Valley Foothill County Water District water system. These rates generate the revenue to operate the system and invest in necessary upgrades. To maintain the Apple Valley Foothill County Water District’s ability to provide reliable water services to our customers, rate increases are necessary to recover rising operational costs. While the Apple Valley Foothill County Water District Board of Directors works diligently to contain costs. Financial planning and appropriate rate-setting based on the cost of service is AVFCWD’s responsibility, to ensure we deliver the service you deserve and water of the quality and reliability you expect.

The rate proposal will be used to:

•  Fund replacing our underground infrastructure

•  Construct and modernize capital infrastructure to meet increasing water maintenance and sufficient emergency reserves

•  Address current and anticipated cost increases

• Ensure AVFCWD can withstand financial pressures that could result from increased regulation of water supply sources and mitigation of contaminants of emerging concern, the level of existing and needed investment in water supply, water treatment, and distribution infrastructure, and geographic location.

What Steps Did The Apple Valley County Water District Take To Reduce Cost Before Considering Increasing Customer Rates?

The Apple Valley Foothill County Water District conducted a comprehensive line-by-line review of budgetary expenditures to maximize available resources and minimize operational costs. An increase to the recommended annual replacement reserves was necessary to match existing capital improvement costs and performed a comprehensive evaluation of general overhead expenses.

PROPOSITION 218 PUBLIC HEARING PROCEDURE

All property owners and other interested parties are invited to attend the hearing and present written and/or oral comments. As an owner or customer of record of a parcel subject to the imposition of the proposed rate adjustments, you may submit a written protest against the proposed rate changes. Only ONE written protest will be counted per identified parcel. If written protests are presented by a majority of the owners of property that is subject to the rate change prior to the end of the hearing, the Board of Directors cannot approve the change.

Written protests must include:

·         Your original signature and date

·         Your name typed or printed under the signature

·         The address of the property

·         An affirmation that you are the owner or customer of record of the property; and

·         Your reasons for protest

Written protests will not be accepted by e-mail or fax. Verbal protests will not be counted. Protests must be received (not postmarked) prior to the close of the public hearing. Written protests may be submitted to:

22545 Del Oro Road, Apple Valley, CA 92308

The Board of Directors will, after the close of the public hearing, adopt the rates. The rates will not exceed the increases set forth herein. The adoption of the new rate schedule will take effect beginning March 1, 2026.

PROPOSED MONTHLY RATE SCHEDULE

The proposed rate schedule is set forth below. Water rates will be adjusted beginning March 1, 2026. and will be adjusted by the greater of 2.5% or the current year’s Consumer Price Index annually for the subsequent 3 years. The final adjustment under this resolution will be on March 1, 2029. Any subsequent adjustments will be subject to a Proposition 218 hearing.

PROPOSED MONTHLY RATE SCHEDULES TO BE ADOPTED IN RESOLUTION NO. 001-2026