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NOTICE TO RATEPAYERS To implement the proposed rate increases and the changes in the rate structures, State law requires the City to publish and mail a 45-day notice of proposed changes to all water and sewer customers and hold a public hearing to adopt the proposed rates. In addition to the required notices, the City as part of its standard operating procedures is proposing to publish an additional notice of the public hearing regarding the rate changes 10 days in advance of the public hearing proposed to be scheduled on September 19, 2023, as outlined in the schedule shown below. Additionally, information regarding the proposed rate increases will be provided on the City's website and through other city platforms and materials. The following is the schedule: Date Action By August 5 Mail Notice to all water and sewer customers By August 5 Publish notice of the Public Hearing scheduled for September 19, 2023 September 19 Hold Public Hearing and consider proposed rate increases November 1 Implementation of water and sewer rate increases for three years (via Utility Billing if adopted by City Council) NEXT STEPS Concurrent with this first phase of the rate study the City is working on several near- and long-term water program activities to address PFAS and ensure the state of good repair of the water distribution system in the long-term: 1. Water Supply Alternatives Project: In September 2020, the City began development of the PFAS Treatment and Wells Rehabilitation Project to address PFAS contamination and extend the life of the existing groundwater supply. This project would rehabilitate/replace existing well facilities and construct a Centralized Treatment Facility for disinfection and PFAS treatment of groundwater before distribution. Given project costs and other considerations, in September 2022, the City Council authorized staff to perform a Water Supply Alternatives Study and put the PFAS Treatment and Wells Rehabilitation Project on hold. The selection of the preferred project is anticipated in September 2023. 2. Water System Management Plan: Staff recently completed a high-level assessment of its water program utilizing the EPA's Effective Utility Management guidance document. Staff intends to update the water program to address the findings and is currently developing a Water System Management Plan (WSMP) to manage the water program moving forward. The draft Water System Master Plan will be completed by the end of 2023. Page 16 of 17