News List

Print
Press Enter to show all options, press Tab go to next option

City Staff Requests Authorization for a Water Rate Study at July 8, 2019 Council Meeting

Post Date:07/02/2019 6:41 PM

 

FOR IMMEDIATE RELEASE

July 2, 2019

City Staff Requests Authorization for a Water Rate Study at July 8, 2019 Council Meeting

(Click here to get the flyer)

Bell Gardens, CA - Since 1994, the City of Bell Gardens has owned and operated a potable water system to distribute retail water service to approximately 1,640 metered customers, which is about 30% of the City area in the northerly part of the City.  The water rates and service charges of the City-Owned Water System have not been increased or adjusted over the past 25 years. During that time, the cost to operate the system has skyrocketed.  The Water Enterprise Fund is operating at a deficit and is presently losing money annually, requiring a subsidy from the City’s General Fund. 

The General Fund subsidy comes at the expense of the approximately 70% of the City area that is not serviced by the City-Owned Water System.  The subsidy is now greater than $500,000 per year and is paid for by general City revenues that would otherwise be utilized for public safety, streets and sidewalks, recreations programs, etc.  Over the past seven years, the cumulative subsidy has risen to over $2,300,000 and is projected to reach almost $3,000,000 by June 30, 2020 if no action is taken.

On July 8, 2019, staff will be requesting Council authorization to complete a water rate study and bring back its findings to City Council for further consideration of a self-sustaining Water Enterprise Fund that is based on fair and equitable water rates for all water customers of the City.  The City will be launching an outreach campaign in the form of water billing inserts, public meetings, and social media to inform the community and get feedback prior to actual water rate recommendations being presented to the Council.

PROPOSED WATER RATE STUDY TIMELINE:

Date

Action

July 8, 2019

Request City Council authorization to begin water rate study to address the current water rate subsidy and develop new fair and equitable water rates

July 2019 – September 2019

Public outreach including written notice, public meetings, and social media

October 2019

City Council authorizes the process of increasing water rates (Prop 218)

October 2019

Public outreach including written notices and holding public meeting on proposed rates for all property owners & users within the city-owned water system

November 2019

Public Hearing by City Council to adopt new fair and equitable water rates

January 2020

New fair and equitable water rates are implemented and included on water bills

 

 

 

Return to full list >>