The Lomita City Council held a public hearing on October 18, 2022 and approved a new 5-year rate structure for its water service.
REASONS FOR THE RATE INCREASE
The mission of the City’s water system is to continue to provide reliable, high quality and cost effective water service to its current and future customers.
- The cost to purchase imported water from West Basin Municipal Water District continues to rise.
- CIP funding is needed to rehabilitate/replace mains, water meters, fire hydrants, and associated facilities.
- With the construction of the Granular Activated Carbon (G.A.C.) upgrades at Cypress Water Production Facility (CWPF), the City has been forced to rely solely on more costly imported water to meet the needs of customers rather than producing local ground water using existing water rights.
- Minor increases in general costs to operate the water system related to materials and supplies increases, staffing and permitting were required for the system.
In 2019, the City began the process of updating its Water Master Plan, and with the onset of the COVID-19 pandemic, the City Council chose to delay consideration of the new rate structure until the update to the Water Master Plan was complete and identified necessary operations and capital needs of the City’s water system. As such, the water rates charged to customers for water service have remained unchanged since July 1, 2019, while the City’s expenses and capital project costs have continued to increase.
BASIS OF ADOPTED RATES
State law allows for the collection of additional revenues to cover the cost of providing water service subject to noticing and a majority protest hearing (commonly referred to as a Proposition 218 hearing). Costs included in the rates are electricity, equipment, personnel, supplies, etc. Without a rate increase, the City’s Water Fund will eventually run a deficit balance. The revised rates allow the City’s water utility to continue operation while providing essential services to its ratepayers. The adopted rates are proportional to the cost of providing the service and revenues from the rates do not exceed the City’s costs, as set forth in the City’s Final Report – Water Rate Analysis, available by at the link above or in the Lomita City Clerk’s office at 24300 Narbonne Avenue, Lomita, CA 90717.
APPROVED WATER RATE INCREASES
The rate structure approved in October 2022 is implemented over a five-year period beginning in January 2023 with the final rate increase occurring on July 1, 2027. The tables below display the increases in the bi-monthly meter charge (by meter size and use) and commodity rates per Hundred Cubic Foot (HCF) for Residential and Non-Residential customers over the five-year period:
Bi-Monthly Base Charge
Meter Size | Existing | 22-23 (A) | 23-24 (B) | 24-25 (B) | 25-26 (B) | 26-27 (B) |
---|---|---|---|---|---|---|
1 1/2" | 167.71 | 170.38 | 181.45 | 193.24 | 205.81 | 219.18 |
1" | 83.85 | 87.33 | 93.01 | 99.05 | 105.49 | 112.35 |
2" | 268.33 | 270.43 | 288.01 | 306.73 | 326.67 | 347.90 |
3" | 503.13 | 537.58 | 572.52 | 609.73 | 649.37 | 691.57 |
3/4" | 50.31 | 53.81 | 57.31 | 61.03 | 65.00 | 69.23 |
3/4 x 1" | 67.08 | 70.49 | 75.07 | 79.95 | 85.15 | 90.68 |
4" | 838.54 | 837.74 | 892.19 | 950.19 | 1,011.95 | 1,077.73 |
5/8" | $50.31 | $53.81 | $57.31 | $61.03 | $65.00 | $69.23 |
Volume Rate ($/CCF): Residential
Usage Range | Existing | 22-23 (A) | 23-24 (B) | 24-25 (B) | 25-26 (B) | 26-27 (B) |
---|---|---|---|---|---|---|
0-20 CCF | $4.79 | $5.03 | $5.35 | $5.70 | $6.07 | $6.47 |
20-35 CCF | 4.94 | 5.28 | 5.62 | 5.99 | 6.38 | 6.79 |
> 35 CCF | 5.61 | 6.68 | 7.11 | 7.57 | 8.06 | 8.59 |
Volume Rate ($/CCF): Commercial
Usage Range | Existing | 22-23 (A) | 23-24 (B) | 24-25 (B) | 25-26 (B) | 26-27 (B) |
---|---|---|---|---|---|---|
>0 CCF | $4.94 | $5.30 | $5.64 | $6.01 | $6.40 | $6.82 |
Fire Bi-Monthly Charge
Meter Size | Existing | 22-23 (A) | 23-24 (B) | 24-25 (B) | 25-26 (B) | 26-27 (B) |
---|---|---|---|---|---|---|
4" | $227.61 | $240.77 | $242.40 | $258.16 | $274.94 | $292.81 |
6" | 455.22 | 477.76 | 484.81 | 516.32 | 549.88 | 585.63 |
8" | 728.35 | 762.15 | 775.69 | 826.11 | 879.81 | 937.00 |
(A) Effective January 1
(B) Effective July 1
MORE INFORMATION
Final Report on the Water Rate Analysis (October 2022)
Resolution 2015-09 adopting new water rates (adopted October 18, 2022). The rate resolution can be found here.
Notice of Public Hearing on October 18, 2022 regarding water rate increases.
If you have questions, please contact the Public Works Department at (310) 325-7110.