City manager says depleted water fund made rate increases unavoidable; officials outline average household impact

City Manager Dan Creighton told the City of Long Beach Council on Oct. 21 that the city's water fund balance fell steeply in recent years, leaving the department unable to cover operating and capital costs without raising rates. "The water fund balance was decimated from a high in 2021 of almost 1,900,000 to a paltry $355,000," Creighton said, adding the department had been operating on a roughly $1,200,000 deficit.

Creighton said water and sewer bills are combined and billed quarterly based on individual meter readings, and stressed that water and sewer funds may only be used for their respective operations. He described rising personnel and pension costs, chemical costs for treatment, and deferred capital needs such as filter replacements, water-main replacements (including East Bay Drive and WALKS), SCADA monitoring implementation and replacement of century-old pipes.

The manager presented an example of the expected bill-level change for an "average household" defined as households using about 12,000 gallons or less per quarter. He said the average combined water and sewer charge per quarter for fiscal years was $129.17 (FY24), $133 (FY25) and projected $142.51 (FY26), representing an average annual increase of roughly $53.36 per household and an annual percent increase near 10.33% over the years shown. Creighton invited residents to review their bills with city staff for verification and said staff would assist anyone who came forward.

Council members and the mayoral presiding officer addressed public concern about figures circulating on social media. One council member said the widely cited "41%" increase being circulated did not include sewer and urged residents to check the combined figures presented by staff; the figure the council discussed at the meeting translated to about an $18.95 median quarterly change in the councilmember's characterization.

Several residents spoke during public comment, saying the higher bills were a hardship for seniors and fixed-income households. City staff offered to meet with individual residents after the meeting; controller staff member John McNally was identified as available to pull up personal bill histories for verification.

Officials emphasized the distinction between regular operating costs and capital needs paid from dedicated water and sewer funds, and reiterated that legally those funds cannot be diverted to the general fund. Creighton also noted the general fund had grown while taxes were held flat this year, reflecting separate fiscal management of the city's tax-supported budget.

The council did not take a vote on rates during the meeting; the city manager's report was informational and intended to explain the rationale behind recent rate changes and why further capital investment is required.