City sets public hearing to consider water rates
SEAL BEACH
The Seal Beach City Council will hold a public hearing to consider adjusting Seal Beach’s water and wastewater rates on Feb. 22 at 7 p.m. A Notice of Public Hearing explaining the proposed changes was mailed to all Leisure World residents earlier this month. The notice contained information on how to attend and participate remotely. The notice is available on the city’s website at www. sealbeachca.gov or by calling (562) 431 2527, ext. 1321. Seal Beach is considering increasing water rates for the first time since 2014. Rates are currently among the lowest in Orange County. Based on an independent financial consultant’s analysis of the overall financial health of the of city’s water system, it was determined that the water utility revenues are insufficient to meet ongoing operating and infrastructure improvement, creating an operating deficit in the city’s Water Enterprise Fund.
The financial consultant concluded that water rate increases would be needed over the next five years with the main cost drivers being the everincreasing cost associated with purchasing/ pumping water, chemicals, energy and personnel. Also the city must borrow approximately $11 million over the next five years to construct needed water infrastructure projects to ensure water system reliability. The consultant’s comprehensive rate study analysis can be viewed on the city’s website at www. sealbeachca.gov.
The city is also looking to revise the water rate structure to yield make it more fair and equitable to all, as well as to be more consistent with the industry standard, according to Public Works Director Steve Myrter.
The proposed rate structure would group customers by “class,” such as single family residential, multi-family residential, commercial, etc., because customers in the same class tend to use water similarly.
TheLeisureWorldcommunitywould be included within the multi-family residential (MFR) customer class, and the proposed MFR class water rate would be assessed to the community as a whole accordingly. Currently, Leisure World is billed based on the size of its meter as well as volumetric rate.
Based on Leisure World’s total average annual water usage last fiscal year, the proposed water rate increase for each of the 6,608 residential units is anticipated to be approximately $2.44 per month, becoming effective in May. Subsequent water rate increases are planned to take effect on Jan. 1 over the next four years.
Adjustments to the city’s wastewater rate structure will also be considered at the Feb. 22 public hearing. Leisure World owns and operates the wastewater collection system that serves the community; therefore, the city’s individual wastewater rates are not applicable. However, the city’s wastewater system does collect all of Leisure World’s wastewater flows at a single point on North Gate Road and conveys the flow to the Orange County Sanitation District.
To help offset the cost of owning and maintaining this wastewater pipeline, the city has established a new wastewater rate specific to Leisure World that equates to 17 cents per residential unit per month. In summary, the combined total for proposed water and wastewater increase per
