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7.A. - Page 30 <br /> and garbage rates. Article XIII D, Section 6 establishes both a) procedural requirements for imposing <br /> or increasing property-related charges, and b) substantive requirements for those charges. Article <br /> 13D requires voter approval for new or increased property-related charges but exempts rates for <br /> water, sewer, and garbage service from this voting requirement if rates are adopted by the <br /> appropriate procedure and meet the substantive requirements. A purpose of this report is to <br /> recommend rates that comply with the substantive requirements of Proposition 218. <br /> Substantive Requirements <br /> The substantive requirements of Article 13D, Section 6 require property-related charges, such as the <br /> City's water and sewer rates, to meet the following conditions: <br /> 1) Revenues derived from the fee or charge shall not exceed the funds required to provide the <br /> property related service. <br /> 2) Revenues derived from the fee or charge shall not be used for any purpose other than that <br /> for which the fee or charge was imposed. <br /> 3) The amount of a fee or charge imposed upon any parcel or person as an incident of property <br /> ownership shall not exceed the proportional cost of the service attributable to the parcel. <br /> 4) No fee or charge may be imposed for a service unless that service is actually used by, or <br /> immediately available to, the owner of the property in question. <br /> 5) No fee or charge may be imposed for general governmental services, such as police or fire <br /> services, where the service is available to the public at large in substantially the same <br /> manner as it is to property owners. <br /> 1.5.2 Article 10, Section 2 <br /> Article 10, Section 2 of the California Constitution provides that: <br /> It is hereby declared that because of the conditions prevailing in this State the general <br /> welfare requires that the water resources of the State be put to beneficial use to the fullest <br /> extent of which they are capable, and that the waste or unreasonable use or unreasonable <br /> method of use of water be prevented, and that the conservation of such waters is to be <br /> exercised with a view to the reasonable and beneficial use thereof in the interest of the <br /> people and for the public welfare. <br /> B Background, Objectives& Legal Requirements 3 <br /> IA' Water&Sewer Financial Plans&Rate Studies <br />