Council adopts FY26‑27 sewer assessments and authorizes Prop 218/AB2257 rate study process

The 0.5 Moon Bay City Council adopted a resolution July 21 approving the city’s fiscal‑year 2026–27 sewer service assessments and charges and directed staff to file the assessment roll with San Mateo County.

Staff reported that the city provides sewer collection services to roughly 3,400 customers and estimated assessment revenue of about $7.5 million for the coming fiscal year. The rates themselves were unchanged this year, reflecting the city’s last rate study (completed in 2020) that set rates through 2025; staff recommended conducting a new multi‑year rate study to model upcoming cost pressures, including the sewer authority (SAM) capital needs.

Council also authorized staff to begin a Prop 218/AB 2257 compliant rate‑setting process: release a request for proposals for a professional rate study (budgeted estimate ~$50,000), authorize a project management agreement with Kirsch and Associates not to exceed $30,000, and adopt the proposed procedures for notice, protest/objection handling and a public hearing per state law.

Councilmembers noted that SAM’s capital needs and recent near‑term cost increases make an updated study prudent; the city intends to notify parcel owners, provide a public protest period and return to council for any rate decisions following the Prop 218/AB 2257 process.

What’s next: staff will issue the RFP, select a consultant, conduct the study and bring recommendations and formal notices to council for any proposed rate changes later in the fiscal year.