Following a public hearing on May 27, Signal Hill City Council voted unanimously to raise water rates annually for the next five years, beginning with a 15% increase that kicks in on July 1.
Signal Hill Public Works Director Thomas Bekele said the rate increase was deemed necessary so the department can conduct repairs and complete roughly 20 projects across the city. The department also hopes to increase their reserves from $1.5 million to $5.5 million to save for emergencies and unforeseen maintenance needs.
About 11,000 residents receive water from the three wells operated by Signal Hill, which is treated and transported across 50 miles of pipelines.
The water rate increase proposal selected, after multiple city council meetings and community meetings is as follows:
- 15% increase each year from 2025-27
- 14% increase each year from 2027-29
- 10% increase from 2029-2030
What Does This Mean For You?
Residents will see this increase impact both the service charge and usage charge on their water bill. Service charges are determined by the size of the water meter in a home, while usage charges are determined by the amount of water a home uses.
Most single-family residential homes have either 5/8-inch or 3/4-inch water meters. These meters will see an increase from $25.76 monthly to $29.62 monthly. For larger homes with multiple bathrooms, usually over 3,000 square feet, they might have 1 or 2-inch water meters.
A typical single-family residence in Signal Hill will see their service charges follow this rate schedule:
| 2025-26 | $29.62 |
| 2026-27 | $34.07 |
| 2027-28 | $38.84 |
| 2028-29 | $44.27 |
| 2029-30 | $48.70 |
Water usage charges depend on the amount of water a home uses. According to the City’s Water Rate Study, the average household in Signal Hill consumes about nine units of water per month. A unit of water is roughly 748 gallons. Once a household uses more than 15 units of water, the cost per unit rises.
Water usage rates per unit will follow this rate schedule:
| 2025-26 | $5.04 |
| 2026-27 | $5.80 |
| 2027-28 | $6.61 |
| 2028-29 | $7.54 |
| 2029-30 | $8.29 |
Why the Increase?
Signal Hill has not raised its water rates since 2020.
The City began working on a water rate study and Water Master Plan in December 2023 to examine Signal Hill’s water system, needed improvements and debt. Since then, the City has hosted multiple public meetings and city council sessions to receive feedback from residents. On March 25, the city council voted to move forward with the proposed rate increase and notified the public through mailed notices to households.
“We really go as long as we can without raising the rates, but it just comes to a point where it’s not sustainable anymore, where the maintenance needs to be done that hasn’t got done and where the general fund starts to subsidize the water,” said Councilmember Tina Hansen.
Signal Hill operates three groundwater wells, with some having been around since 1978. Some of these wells are functioning at a lower capacity than possible due to infrastructure needs, while the newest well completed in 2022 is undergoing a permit process and has been unable to operate yet.
There are 20 projects identified by Public Works in the Water Capital Improvement Plan that need funds. Key projects include new well construction, addressing deferred maintenance and compliance with unfunded state and federal mandates, State Water Board mandates, removal of vegetation at Temple Reservoir and replacement of 110,000 feet of AC pipes (roughly half of the City’s pipes) estimated between $550-900 per foot.
The need for increased rates was also fueled by an increase in fees from the Water Replenishment District and the Metropolitan Water District, according to the City’s Water Rate Study.
Additional factors affecting revenue for the water department are based on the following annual estimates. Bekele said these estimates are based on data from previous years:
- Estimated annual population growth of 0.2%, based on U.S. Census data
- Estimated water demand decrease of 1%, due to conservation laws
- Reserve interest rates expected to grow by 3%
- General operating expenses expected to increase by 3%
- Salaries expected to increase by 5%
- Benefits for employees expected to increase by 5%
- Utility costs expected to increase by 3%
- Capital costs expected to increase by 5%
- Cost of imported water purchase is expected to increase by 6%. They also expect to get 30% of water from the Metropolitan Water District and 70% of water from the City’s groundwater.
Public works is also proposing a “more formalized reserve policy” for the department. As of now, the department has $1.5 million in reserves. This money is unrestricted and can be used for any reason. Their proposal is to raise their reserves to $5.54 million for the following:
- $1.46 million for 90 days of reserves, covering operations and maintenance
- $2.48 million in capital project reserves
- $600,000 for rate stabilization reserves
What You Can Do:
Residents who need help paying their water bill can apply for a discount at this link. You will need to provide a proof of income so the City can verify that you qualify for a discount. If approved, the application will be reviewed annually.
Applications can be sent to WaterBilling@cityofsignalhill.org. For questions about how to apply call 562-989-7318.
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