Seal Beach council opens Prop 218 proceedings to consider major water and sewer rate hikes

Seal Beach — The City Council voted to initiate Proposition 218 proceedings on Tuesday to notify property owners and set a public hearing on proposed water and sewer rate increases that would pay for a multi‑million‑dollar program of capital improvements and loan repayments.

The action starts a statutorily required public process under Proposition 218 and sets a tentative public hearing for July 14, 2025, while also scheduling two community information sessions on June 4 and June 14 at Fire Station 48, staff said.

The move matters because city staff and the consultant, Raftelis, told the council the utilities are running short of revenues to meet operating costs, debt coverage requirements and needed capital repairs. Director of Public Works Iris Lee said the city is “out of time” for some projects and that delays are “putting our public health and safety at risk.” The council adopted resolutions to begin the Prop 218 notice and to use the revised public‑hearing and majority‑protest procedures staff presented.

Consultant Steve Gagnon of Raftelis presented two scenarios the council may consider. Under the more aggressive scenario (scenario 1), the study projects roughly a 96.5% increase in water revenues over five years and a 170‑dollar bimonthly…