Council to hold March 20 study session on potential water and sewer rates

The city government of Seal Beach is considering adjustments to water and sewer collection service rates over the next five years. According to a press release issued Monday night, March 11, the reason is to keep pace with inflation and rising operational costs. As part of the ongoing rate study process, the City Council will conduct a Special Study Session at 4 p.m. Wednesday, March 20, in the Council Chambers at 211 Eighth St. The purpose of this meeting is to specifically review the critical water/sewer CIP projects that must be financed through the updated rates.

During the Study Session, the City Council will receive information and consider public input. City staff also is announcing two additional community meetings for the public to learn more about potential water and wastewater rate adjustments. These dates are tentatively set for:

• 6 p.m. Thursday, April 11, City Council Chambers, 211 Eighth St.

  • 10:30 a.m. Saturday, April 13, City Council Chambers, 211 Eighth St.

The city’s last water and sewer rate study was conducted in 2019 and implemented in early 2021. Rising costs of maintaining and operating the water and wastewater systems necessitate rate adjustments. These systems serve a population of roughly 25,000 residents and require ongoing infrastructure projects and maintenance.

This Study Session ensures residents have a chance to learn about the process and voice their opinion before the council considers any formal action. Two ways to participate in the City Council Study Session on March 20 are:

• Attend the Study Session: Public opinion can be voiced directly to the City Council during the public comment period. (The public will be asked to fill out speaker cards. According to city officials, you don’t have to fill them out.)

• Submit written comments: For those who cannot attend, written comments may be sent to the City Clerk’s Office.

The city of Seal Beach owns and operates water and sewer systems that serve a population of about 25,000 people. About 85% of our water use is drawn from local groundwater supplies, while the rest is imported from Northern California and the Colorado River. The city’s water system consists of four wells, two reservoirs, two booster stations, nearly 75 miles of water mains, and approximately 5,350 service connections. The city’s wastewater collection system consists of 34 miles of sewer lines, six pump stations, and 800 manholes. The city does not own or operate wastewater treatment facilities but transports the wastewater to Orange County Sanitation District to be treated.

By state law, revenues generated from water and sewer service rates and charges may only be used to fund the actual costs to operate and maintain the utility including infrastructure projects and the cost of debt to finance capital improvement projects. These revenues may not be used to augment the city’s General Fund. Through the Water and Wastewater Utility Enterprise Funds, customer rates fund the water and wastewater systems. Also, per Proposition 218, property owners have the right to protest prosed increases for a “property-related service,” such as water and sewer rates and charges.

With help from independent financial consultants, a rate study was initiated in mid-2023 to assess the revenue needs for each utility to fund operations and maintenance expenses, large capital projects to repair/replace pipes and pump stations, debt service to pay back loans, and reserve funding. The Rate Study Report is available on the city’s website (www.2023utilityratestudy.sealbeachca.gov) and available at the City Clerk’s office. Once a date has been set for the public hearing to continue, a new Prop. 218 Notice of Public Hearing to Consider Proposed Water and Wastewater Rates will be mailed to recorded property owners, water and wastewater customers of record, and Leisure World shareholders 45 days before the new hearing.