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File Number: 24-107 3% in any year. However, for the years that the CPI-U exceeds 3%, the amount over 3% will be “banked” as unused CPI and used to offset occasions when the annual CPI-U increase is below 3%. Every year, the actual fee amount must go through a public process and can only be changed by the City Council.  Public Outreach - A Stormwater Fee | San Leandro, CA <https://www.sanleandro.org/1296/Stormwater-Fee> webpage is available to provide information on the proposed Stormwater Fee Amendment. The webpage includes an overview of the proposed amendment, FAQs, an informational flyer as well as links to public meetings and documents. The Stormwater Fee Amendment flyer was updated and is included as Attachment D for your information. City representatives have been meeting with large property owners, community groups and other public agencies to discuss the proposed Stormwater Fee Amendment. Compliance with Proposition 218 In 1996, California voters passed Proposition 218, also known as the “Right to Vote on Taxes” Act. Proposition 218 requires that the City mail a written notice of any proposed stormwater fee increases to affected property owners at least 45 days prior to a scheduled public hearing, during which time property owners may submit written protests opposing proposed rate increases. At the public hearing, currently scheduled for May 20, 2024, Council will consider all protests related to the proposed rates. If a majority of parcel owners protest the rate increases, the new fee cannot be approved. Additionally, Proposition 218 requires that jurisdictions obtain voter approval (by a majority vote) for new or increased property related fees, unless those fees are for sewer, water or refuse collection services. Fees associated with sewer, water, and refuse collection services can be enacted through a majority protest process. However, stormwater system fees continue to be treated differently than sewer, water, and refuse fees, requiring a majority approval vote from property owners prior to the implementation of the fees. Next Steps After receiving approval from Council, the Proposition 218 Notice will be distributed, initiating the rate setting process for the coming fiscal years. In order to provide a minimum 45-day review period, the required Proposition 218 public hearing is scheduled for the May 20, 2024 regular Council meeting, at which time the Council will determine whether a majority of parcel owners protest the proposed fee increases. A summary of the next steps follows: 1.Mail Notice of Public Hearing to all property owners by April 5, 2024. 2.Hold a Public Hearing on May 20, 2024 and if a majority protest is not received, the next step would be a potential authorization to initiate a mail balloting process pursuant to Proposition 218. 3.Mail ballots and ballot guide sent to all property owners by May 24, 2024 4.Ballots due to City Clerk by 5:00 pm on July 8, 2024. 5.Ballots tabulated on July 9, 2024 6.At the July 15, 2024 regular Council meeting, Council to accept tabulation of ballot results. If the mailed ballot proceeding is successful, Council to consider approval of the Stormwater Fee Amendment. Page 3 City of San Leandro Printed on 3/28/2024