SUMMARY
The 2011-2012 Ventura Grand Jury (Grand Jury) opened an investigation in September 2011 of the City of Port Hueneme’s (City) water rates, triggered by a public complaint. The Grand Jury investigated whether the water utility billing rose unlawfully when the “Utility Users Tax” increased after the City went through the Proposition 218 process, by mail, for increasing water rates in 2009. The report is silent as to wastewater charges as these charges were not an issue. Neither the voter-approved water rate increase, nor the percentage (4%) of the “Utility Users Tax,” was investigated.

The sole issue of the investigation is the inclusion of a previously untaxed “water service charge” into the water service fixed rate. The “water service charge” is now being taxed, creating a new tax, intended or not, by the City.

The Grand Jury interviewed interested parties, as well as examined City water bills. The Grand Jury reviewed water rate information from the City, as well as from other cities and water districts in the County, for comparison. The Grand Jury consulted with Ventura County Counsel’s office and Ventura County Elections Division and researched newspapers and the Internet for comparative issues regarding water rates in and around the County.

The Grand Jury found a failure of the “Notice to Property Owners of Public Hearing on Proposed Water Rate Adjustments” to advise voters of the tax increase. The Grand Jury recommends that the City seek an immediate third party administrative hearing to adjudicate whether the tax increase on the City’s monthly utility billing is a new tax, and if the Proposition 218 election to raise water rates was valid.

Go to the Grand Jury website to review the entire report http://grandjury.countyofventura.org