Seal Beach outlines $34M–$44M water and sewer capital plans and proposed rate increases at study session

Seal Beach city staff and consultants told the City Council at a study session that the city must raise water and sewer revenue to pay for aging pipes, several near-term pump‑station and well projects, and to restore the utilities’ financial reserves and debt covenants.

The study session, an informational meeting with no formal council vote, centered on a Raftelis financial analysis that modeled two capital- and debt‑funding scenarios: a more aggressive scenario that programs about $44 million in water capital and $19.2 million in sewer capital and a lower-cost scenario that delays some projects and programs about $34 million in water capital and $15.5 million in sewer capital. Raftelis told the council the study period for rate-setting is five years and that staff expects to return with proposed rate schedules and public hearings under Proposition 218 if the council decides to proceed.

The details: why it matters

Public Works Director Iris Lee introduced the evening as “the first of a series of public outreach meetings and study sessions related to the city's sewer and water financial analysis and rate study.” Raftelis project manager Steve Gagnon summarized drivers for the study: inflation and higher construction costs, two wet years that reduced water sales, higher wholesale water costs from regional suppliers, and aging infrastructure dating in places to the early 1900s. Gagnon said the city already implemented a water rate increase effective Jan. 1, 2025.

Raftelis showed two financing approaches. The more comprehensive (recommended) water scenario programs about $44 million…