Council expected to set date for public hearing in September
The City Council is expected to set a date for a public hearing on Seal Beach’s water and sewer rates in September.
According to Public Works Director Steve Myrter, more than 81% of single family residences will see their combined water and sewer rates go down or stay the same, due to a proposed decrease in the sewer bill. “Assuming they received both water and sewer services from the city,” Myrter said.
The city is expected to hold three community workshops on the rate changes in October.
In a recent presentation to the council, Public Works Director Steve Myrter said the council would hold a public hearing on the proposed water and sewer rates.
The rates will go into effect on Jan. 1, 2021.
The last water rate increase was in 2014. According to Myter’s Aug. 10, 2020, presentation to the council, the cost of providing water has continued to rise since then.
He said Seal Beach plans to invest $3.28 million a year for the next five years, starting in 2021.
Myter said many of the projects, which he described as “critical” had been placed on hold pending sufficient funding.
Myrter also said the city would need to issue $12 million in bonds for the water system. He said current water rates don’t generate enough revenue to meet the requirements.
According to Myter, the city’s water enterprise fund pays for the city’s water supply and infrastructure.
According to Myrter, without a rate increase, the water fund’s reserves would be expended by 2023 with the current improvement plan.
Proposed increases for Fiscal year 2021 are 14%, with increases of 12% in 2022, 8% in 2023, 2024, and 2025. As for the water rate changes, Seal Beach currently groups customers by meter size, which is no longer the industry standard, according to Myrter.
The proposed rate system would group customers by “class,” such as commercial and single family residential, etc., because customers in the same class tend to use water similarly.
According to Myrter, state law now requires water providers to have a water budget and the state will fine water providers that exceed their budget.
The bi-monthly rates will go down for most of the commercial accounts, according to Myrter.
Leisure World rates will be divided among 6,608 residential units with an average monthly increase per month of $2.33, per Myter.
The last local sewer rate increase was in 2005, according to Myrter. He told the council the primary reason for the sewer rate increase at that time was to raise money to fix the sewer infrastructure.
The sewer enterprise fund has enough reserve money to allow for a one-time 25% revenue decrease in Fiscal Year 2021, according to Myrter. There would be no changes in 2022 through 2025. As for the sewer bill impact, according to Myrter, almost all single family homes will see a lower rate for their sewer bill.
About half of multi-family residential sewer rates will decrease, according to Myrter.
