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Avalon council accepts rate study, sets maximum sewer, saltwater and solid‑waste fees after Prop 218 hearing
Summary
After a Prop 218 public hearing with 23 written protests (majority threshold 630 parcels), the Avalon City Council adopted a resolution establishing the maximum sewer, saltwater and solid‑waste rates recommended by the city's five‑year rate study and directed staff to return with final rates for FY 2026–27.
The Avalon City Council on May 19 adopted a resolution establishing the maximum proposed sewer, saltwater and solid‑waste rates identified in a five‑year rate study and cleared the way to set final rates for fiscal 2026–27.
HDR consultant Josiah Close told the council the study uses the city’s 2025–26 budget as a baseline, escalates operating costs, and layers in a capital program intended to restore reserves to about 180 days of O&M. He said the approach uses short‑term reserves to smooth increases and aims to fund necessary projects including landfill and wastewater plant work. "We're trying to lessen the impact to rates, right off the bat, we're trying to make it a smooth transition," Close said during his presentation. The city clerk tabulated 23 written protests before the hearing closed; the clerk said the majority threshold was 630 parcels, so "majority protest does not exist."
Council members emphasized the need to fund aging infrastructure while acknowledging the burden on residents. Finance Director Matt Baker summarized trade‑offs: self‑funding a landfill wall over five years would require larger near‑term increases, whereas borrowing from the general fund and repaying over 20 years would lower immediate rate pressure. Baker described the decision before council as setting the maximum allowable rates under the study; at a subsequent meeting the council must pick the actual FY 2026–27 increases, which cannot exceed the adopted maximums. "We can absolutely go lower," a council member said during the vote.
The action does not immediately change bills for property owners; staff said an additional council hearing will set the precise rates to appear on the 2026–27 property tax roll if council chooses to proceed and if a majority protest is not later determined to exist. The resolution also found the establishment of maximum service fees exempt from CEQA. Provenance: topic introduced SEG 3440, discussion and hearing continued through SEG 4210.
