Notice of Public Hearing on Proposed Inflationary Increases to Water and Sewer Rates in Accordance with a Previously Approved Schedule (Si le gustaria recibir este documento en Español, por favor llame a CCSD (805) 927-6223.) Cambria Community Services District (CCSD) is proposing inflationary increases to water and sewer rates, effective on or after July 1, 2026, pursuant to a previously approved schedule, in accordance with Government Code Section 53756. The rate increases are authorized by CCSD Resolution 32-2022, adopted on May 19, 2022, and Resolution 43-2022, adopted on June 23, 2022, in accordance with the requirements of Proposition 218. The Board of Directors will consider final approval for the proposed water and sewer rate increases at the regular meeting of May 14, 2026, at 10:00 a.m. at the Cambria Veterans Memorial Building, at 1000 Main Street, Cambria, CA 93428. Rate Increases Needed to Fund Normal Operating Costs of the Water & Sewer Utility Systems The rate increases are necessary because the CCSD’s water and sewer utilities rely primarily on revenues from service charges to fund the costs of providing service. As such, water and sewer rates must be set at levels adequate to fund the costs of operating and maintaining the District’s water and sewer utility systems to support safe and reliable service. The key factors driving the need for the previously approved rate increases include: a need to restore balanced budgets to bring revenues back in line with the costs of providing service and restore financial stability, to help fund critical improvements to aging infrastructure, to help fund the District’s highest-priority water and sewer system capital needs, to provide a minimal prudent level of funding for repairs, replacements, and rehabilitation of aging infrastructure. Water Rates CCSD’s water rates include both 1) fixed charges levied on each account regardless of water use, and 2) water quantity charges billed based on metered water use in each billing period. Residential customers pay a uniform fixed charge per account plus water quantity charges billed via three graduating rate tiers, with water purchased first in Tier 1 and then subsequently in higher tiers that are more expensive as water use increases. Commercial rates include fixed charges that vary by meter size – with higher charges for customers with larger meter sizes that place more demand on the water system – plus a uniform volumetric rate for all water use. Quantity charges are billed in units of one hundred cubic feet (ccf), with 1 ccf equal to approximately 748 gallons. The proposed water rates to be effective on or after July 1, 2026 are shown in the table below. Water Rates Current Rates Effective on or After Water Rates 1-Jul-26 FIXED WATER SERVICE CHARGES Residential Monthly Charge $22.46 $23.19 Bi-Monthly Charge $44.93 $46.39 Commercial Monthly Charge per Meter Size 5/8” or 3/4” $22.46 $23.19 1” $56.16 $57.99 1-1-1/2” $112.32 $115.97 2” & Larger $224.63 $231.93 WATER QUANTITY CHARGES Billed based on metered water use ($/ccf) Residential Charges Tier Bi-monthly Monthly Tier1 First 4 ccf First 2 ccf $11.43 $11.80 Tier 2 401 - 16 ccf 201 - 8 ccf $14.96 $15.45 Tier 3 > 16 ccf > 8 ccf $16.69 $17.23 Commercial Charges Rate for all water use $14.96 $15.45 1 ccf = 100 cubic feet, or approximately 748 gallons. Sewer Rates CCSD sewer rates include both 1) fixed charges levied on each account regardless of usage, and 2) sewer quantity charges billed based on metered water use in each billing period. Sewer quantity charges for commercial customers vary based on wastewater class and strength, with lower charges for customers with lower-strength wastewater and higher charges for customers with higher-strength wastewater, which costs more to process and treat in order to comply with CCSD’s wastewater discharge permit requirements. The proposed sewer rates to be effective on or after July 1, 2026 are shown in the table below. Sewer Rates Current Rates Effective on or After Sewer Rates 1-Jul-26 FIXED SEWER SERVICE CHARGES Residential Monthly Charge $58.84 $60.75 Bi-Monthly Charge $117.68 $121.50 Commercial Monthly Charge $58.84 $60.75 Bi-Monthly Charge $117.68 $121.50 SEWER QUANTITY CHARGES Billed based on metered water use ($/ccf) Residential $6.80 $7.02 Commercial Wastewater Class Class 1 (low strength) $5.96 $6.15 Class 2 (standard strength) $6.80 $7.02 Class 3 (higher strength) $10.46 $10.80 1 ccf = 100 cubic feet, or approximately 748 gallons. Class 1 includes lower strength accounts, including professional offices, retail stores, laundromats & schools. Class 2 includes all other commercial accounts (with standard/domestic strength wastewater) that are not classified Class 1 or Class 3. Class 3 includes accounts with moderate to high wastewater strength, including restaurants, hotels with restaurants, bakeries, mortuaries, markets, with meat/seafood/food prep/garbage grinder, and mixed-use accounts with an estimated 30% or more sewer discharge from higher-strength wastewater flow. The District reserves the right to assign customers to the class that best matches their wastewater strength.