PROPOSITION 218 NOTIFICATION PUBLIC NOTICE OF PROPOSED INCREASE IN SEWER RATES AND CHARGES NOTICE IS HEREBY GIVEN that on Thursday, October 8, 2026, at 5:30 p.m., a public hearing will be conducted before the Franklin County Water District (the “District”) Board of Directors at the District office located at 2115 Drake Ave, Merced, CA 95348. This will be a Public Hearing before the District’s Board of Directors to allow public testimony and discussion of the proposed Sewer Rate increases described below. The District’s Board of Directors will take written and oral comments and will consider all written protests to the proposed charges, determine if a majority protest exists, and consider resolutions to adopt the new Sewer Rate charges. If adopted, the new Sewer Rates will become effective on July 1, 2027. The District will hold a public hearing in accordance with Article XIII D of the California Constitution (“Proposition 218”) to consider adoption of a proposed Sewer Rate to be levied on all properties that benefit from the District’s services. The proposed Sewer Rate amounts contained in this Notice represent the maximum amount the District may impose, if adopted. If the proposed Sewer Rate is adopted, the District may collect rates at or below the proposed maximum as needed to meet the District’s financial needs. This notice is intended to provide you with information on the services provided by the District, the reasons for the proposed Sewer Rate, and the methods by which a property owner can submit a written objection regarding the District’s compliance with Proposition 218, if desired, and the methods by which a property owner may protest this proposed Sewer Rate, if desired. Written Objection Process The District will be implementing Government Code section 56759.1 (Assembly Bill 2257) related to this proposed Sewer Rate. Property owners may submit a written objection to the proposed Sewer Rate that specifies the grounds for alleging noncompliance with Proposition 218. “Written Objection” must be clearly labeled on the outside of an envelope and written objections must contain the property owner’s full name and identify the parcel(s) by assessor’s parcel number(s). To be considered timely, all written objections must be mailed to the District at P.0. Box 2811, Merced, CA 95344 and received by Wednesday, September 30, 2026. Failure to timely object in writing bars any right to challenge the proposed Sewer Rate through a legal proceeding. District staff will review timely submitted written objections, prepare written responses, and present any timely received written objections and written responses to the District’s Board of Directors before the close of the protest hearing described herein on October 8, 2026. The written basis for the District’s Sewer Rate can be found online at: https://fcwd.myruralwater.com/. Protest Process The provisions of Proposition 218 provide that certain types of “Property Related Fees” such as water and sewer rates are subject to a “majority protest” process. Under the majority protest process, any property owner or customer of record may submit a written protest regarding the proposed Sewer Rate; provided, however, that only one protest will be counted per identified parcel. If protests are filed on behalf of a majority of the parcels subject to the Sewer Rate, the District cannot adopt the proposed Sewer Rate. Please note, a written protest is separate and distinct from a written objection, described above. A written protest cannot be combined with a written objection and must be submitted separately, if desired. Every written protest MUST include ALL of the following to be counted: 1. A statement against the proposed Sewer Rate that is the subject of the hearing; 2. Name of the record owner or customer of record who is submitting the protest; 3. Identification of assessor’s parcel number and/or street address of the parcel with respect to which the protest is made; and 4. Original signature and legibly printed name of the record owner or customer of record who is submitting the protest. Written protests must be received by or before the close of the public hearing on October 8, 2026, and may be submitted by: 1. Mail to the District at P.0. Box 2811, Merced, CA 95344. Please note mailed protests must be received before the hearing date and time; or 2. In person at the public hearing at the date and location above, prior to the conclusion of the protest hearing. Regardless of how the written protest is submitted, it must be received by the District prior to the conclusion of the public comment portion of the public hearing on October 8, 2026. (Postmark dates will not be accepted.) Any protest submitted via e-mail or other electronic means will not be accepted. Please identify on the front of the envelop for any written protest, whether mailed or submitted in person, that the enclosed document is a protest for the on the proposed Sewer Rate. The District will hold the Public Hearing on October 8, 2026, at 5:30 p.m. The Board will review the amount of the proposed Sewer Rate, as well as the methodology for calculating the sewer Rate. At the conclusion of the hearing, protests will be counted and validated. If a majority of the parcels subject to the Sewer Rate file protests before the end of the Public Hearing, the District cannot adopt the proposed Sewer Rate. If a majority of the parcels do not protest the proposed Sewer Rate, the District has the authority to adopt the proposed Sewer Rate. The Sewer Rate, if enacted, will be effective beginning July 1, 2027. Statute of Limitations Pursuant to Government Code section 53759, there is a 120-day statute of limitations for challenging any new, increased, or extended fee, adopted, modified, or amended after January 1, 2022. This statute of limitations applies to the Sewer Rate proposed in this notice. FRANKLIN COUNTY WATER DISTRICT The Franklin County Water District (the “District”) is writing to notify you of the public process regarding a proposed Sewer Rate (the “Sewer Rate”). This proposed Rate is intended to fund the costs associated with operating the District’s sewer systems. BACKGROUND On June 25, 2026, the Franklin Board of Directors adopted a Sewer Rate Study dated May 2026 (the “Rate Study”). The Rate Study analyzes the adequacy of revenues to meet projected expenditures of the sewer enterprises fund (the “Fund”) and to determine whether the Fund will be adequate to cover recurring operating and maintenance costs as well as needed capital costs while supporting debt service obligations through Fiscal Year 2031/32. The recommendation of the Rate Study is to implement new sewer rates for the next five years (i.e. through Fiscal Year 2031/32). The Rate Study provides explanation and justification for the recommended sewer rates. The Rate Study reviews the Fund’s historical revenues and expenses and projects future year revenue requirements to be collected through sewer sales. The Rate Study is available for review at the District office located at 2115 Drake Ave., Merced, CA 95348 between 8:00 a.m. and 5:00 p.m., Wednesday through Friday, or on the District’s website at https://fcwd.myruralwater.com/. District staff can assist you with answering any questions about your sewer bill or the proposed Sewer Rate. If you have questions or need additional information, please contact the General Manager, Melissa Van Bebber, at (209) 723-1353 or via e-mail melissa@franklincountywd.com. WHY IS A SEWER RATE INCREASE NEEDED? The District is required by State law to collect revenues sufficient to cover the costs of operating the sewer systems. These revenues allow the District to provide sewer services to the residents and businesses of Franklin. Costs that must be recovered through rate revenues include utilities, equipment and supplies, treatment chemicals, salaries and benefits of District staff assigned to the operation of both systems. In addition, revenue generated from service charges is used to pay for capital improvements such as the replacement of sewer pipes. Revenues are also used to pay off debt and to replace equipment. Under the current rates, future revenues will be insufficient to continue operating both systems. Therefore, a sewer rate increase is needed to generate revenues greater than operating expenses. PROPOSED SEWER RATES The proposed Sewer Rate maintains a rate structure based on Equivalent Units (EUs), with the District currently serving approximately 1,900 EUs. Under this methodology, customer charges are based on the number of EUs assigned to each customer class. For purposes of this analysis, the total number of EUs is projected to remain constant throughout the planning period. Sewer revenue projections were developed by applying the proposed monthly Sewer Rates to the projected total EUs. Presented below in Table 1 are the recommended Sewer Rates and rate adjustments through Fiscal Year 2031/32. Table 1 Summary of Recommended Monthly Sewer Rates Current FY 2027/28 FY 2028/29 FY 2029/30 FY 2030/31 FY 2031/32 Sewer Rate $51.07 $57.30 $59.22 $61.69 $63.77 $65.90