NOTICE OF PUBLIC HEARING, January 7, 2026 CONSIDERATION OF PROPOSED ORDINANCE TO INCREASE WATER AND WASTEWATER RATES FOR SAN SIMEON COMMUNITY SERVICES DISTRICT Date & Time of Hearing: January 7, 2026 – 6:00 P.M., or as soon thereafter as the matter may be heard Hearing location: San Simeon Community Services District Coast Unified Board Room 1350 Main Street Cambria, CA 93428 On January 7, 2026, the San Simeon Community Services District ("SSCSD") will hold a public hearing to consider any protest votes against increasing rates for water and wastewater service to fund the costs of maintenance, operations, administration, capital improvements, and all other costs necessary to provide water and wastewater service to SSCSD customers. The proposed ordinance establishes two separate rate structures: one for water service and one for wastewater service. Water Service Currently, the water system has a funding deficit of 32%. The proposed water service rate structure consists of three components that make up each monthly bill: (1) a fixed fee per meter of $53.62 ("Service Fee"); (2) a variable charge for potable water of $20.17 per hundred cubic feet ("Potable Rate"); and (3) a variable charge for irrigation water of $33.88 per hundred cubic feet ("Irrigation Rate"). The service fee is calculated to cover fixed costs such as administrative costs, system maintenance, water quality testing, regulatory compliance, and debt service. The variable charges are calculated to fund the costs of providing additional units of water to customers such as water pumping, electricity, additional water treatment, and additional wear and tear. More information on the calculation of the proposed rates and charges for water service can be found in the SSCSD Proposition 218 Rate Study, available at: http://www.sansimeoncsd.org. Wastewater Service Currently, the wastewater system has a funding deficit of 88%. The proposed wastewater service rate structure consists of five different rates based on the type of customer: (1) the Motel Rate of $23.78 per month; (2) the Residential Rate of $21.09 per month; (3) the Restaurant Rate of $31.83 per month; (4) the Commercial Rate of $13.63 per month; and the State Parks Rate of $33.30 per month. The rates are calculated based on the total costs of wastewater collection, pumping, treatment, and administrative costs and weighted by the average annual discharge of each class of users. More information on the calculation of the proposed rates and charges for wastewater service can be found in the SSCSD Proposition 218 Rate Study, available at: http://www.sansimeoncsd.org. Under Proposition 218, customers may submit written protests. If more than 50% of the customers submit valid written protests, the SSCSD Board may not adopt the proposed rates and charges. Written protests must be mailed or personally delivered to the Clerk of the Board of the SSCSD at 111 Pico Avenue San Simeon, CA 93452. This notice and ordinance was introduced at the Board of Directors meeting on November 13, 2025 and will be available at the SSCSD Office. The ordinance can also be viewed as part of the November 13, 2025, agenda materials available at: http://www.sansimeoncsd.org. IPL0297579 Dec 14 2025