REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF BOARD GOVERNED COUNTY SERVICE AREAS
AND RECORD OF ACTION
March 24, 2026
FROM
NOEL CASTILLO, Director, Department of Public Works - Special Districts
SUBJECT
Title
Introduction of Proposed Fee Ordinance for Various Board Governed County Service Areas and Zones for Fiscal Years 2026-27, 2027-28, and 2028-29
End
RECOMMENDATION(S)
Recommendation
Acting as the governing body of the County Service Areas and their Zones:
1. Conduct a public hearing on proposed ordinance repealing Ordinance Nos. SD 25-03 and 25-05.
2. Make alterations, if necessary, to the proposed ordinance.
3. Approve introduction of proposed ordinance.
• An ordinance of the San Bernardino County, State of California, acting as the governing body of all Board-Governed County Service Areas and their Zones to repeal Ordinance Nos. SD 25-03 and 25-05 and to adopt fees and charges for Fiscal Years 2026-27, 2027-28 and 2028-29.
4. SCHEDULE ORDINANCE FOR FINAL ADOPTION ON TUESDAY, APRIL 7, 2026, on the Consent Calendar.
(Presenter: Noel Castillo, Director, 387-7906)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). Fees and charges from the proposed ordinance are projected to generate approximately $18.2 million in revenue for 2026-27 for various Board-Governed County Service Areas (CSAs) and their Zones (Districts), including the Water and Sanitation Districts. This revenue will continue to be used to offset the costs of providing services. Appropriation and revenue related to the fees will be included in the Districts’ 2026-27 recommended budget and future recommended budgets for the applicable Districts.
BACKGROUND INFORMATION
The Department of Public Works - Special Districts (Department) annually introduces a proposed fee ordinance to the Board of Supervisors (Board) for all Districts. The ordinance includes recommended fee revisions, the deletions of certain fees, and/or addition of new fees for a variety of services, including refuse, road maintenance, parks and recreation, detention basin maintenance, landscaping, and streetlighting.
Beginning this year, the Department proposes implementing a multi-year Board approval cycle to establish fees for 2026-27 and apply 3% annual inflationary adjustments to eligible fees for the subsequent two fiscal years, balancing oversight with administrative efficiency. The Department will retain flexibility to return to the Board for off-cycle adjustments as needed and will continue prioritizing annual review of high-volume and high-impact fees to ensure service costs are appropriately recovered.
The Department is also recommending several other fee changes summarized below:
Productive Hourly Rates: The Productive Hourly Rates (PHRs) are recommended to be revised to include adjustments for negotiated employee Memoranda of Understanding (MOU), salary step changes, retirement rates, and other employee benefit costs. These revisions are needed to recover the full cost of services. Although the Department uses the average cost per classification when calculating the PHRs, the amount can fluctuate annually depending on budgeted employees within each classification. As a result, the PHRs can include significant variances in percentage changes among the various classifications. The PHRs are used in the calculation of certain fee amounts.
Voter-Approved Services Charges: Many of the CSAs contain service charges that generate revenue for various costs including, but not limited to, road maintenance, snow removal, streetlights, park operations/improvements, and maintenance of detention basins. The per parcel service charge for a number of these CSAs includes the option for an annual inflationary adjustment, as approved by the Board upon formation of the CSA. The Department is recommending implementation of these minor inflationary adjustments, ranging from 1.5% to 4.0%, for some CSAs.
Water and Sanitation: The Department will utilize the standard fee inflator of 3% as previously mentioned except for the Meter and Fire Protection Service installation fees and the Recycled Water fee, which are recommended to be revised for 2026-27 and then increased by 3% for the subsequent two years.
Equipment/Vehicle Rates: The Department will utilize the standard fee inflator of 3% as previously mentioned with the exception of the Boom Truck, Hydro Cleaner/Combo and Street Sweeper - Large fees, which are recommended to be revised for 2026-27 and then increased by 3% for the subsequent two years.
The Department is not proposing the deletion of any fees for 2026-27, 2027-28, and 2028-29.
The Department assures the recommended fee amounts comply with Proposition 26. Proposition 26 generally requires fees not to be higher than the cost of the activity and/or service provided, unless an exception applies as provided in the proposition. The Districts’ fees do not provide full cost recovery, as the District receives property tax revenue for recreation and park services.
On March 10, 2026 (Item No. 62), a fee workshop with the Board was conducted to discuss the 2026-27, 2027-28, and 2028-29 proposed fees. This workshop resulted in no change to the Districts’ recommended fee proposal.
The proposed fee ordinance will go into effect 30 days after adoption but the effective date of any new fees is July 1, 2026, following final adoption by the Board on Tuesday, April 7, 2026.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Aaron Gest, Deputy County Counsel, 387-5455) on March 3, 2026; and County Finance and Administration (Matthew Dalton, Administrative Analyst, 387-5505) on March 5, 2026.