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La Palma Council unanimously adopts new water, fire‑flow and sewer rates after Prop 218 hearing
Summary
After a Proposition 218 public hearing, the La Palma City Council voted unanimously Nov. 4 to adopt new water, fire‑flow and sewer rates intended to rebuild reserves and fund long‑term projects including the Walker Well replacement.
The La Palma City Council unanimously adopted a resolution Nov. 4 approving new water, fire‑flow and sewer rates following a public hearing conducted under Proposition 218.
Chris Fisher, consultant with Willdan Financial Services, told the council the study evaluated the utilities' five‑year financial needs and capital projects and compared three funding scenarios for the Walker Well replacement. Fisher said the typical residential user (assumed 1,600 cubic feet of water bimonthly) would see the combined water and sewer bill rise from $123 to about $139 in the first year under the chosen scenario. "The typical residential user uses about 1,600 cubic feet of water per month," Fisher said, and later summarized the first‑year combined bill at roughly $139 on a bimonthly basis.
Fisher explained the rate structure change is intended to restore operating reserves (a 90‑day target) and to accumulate funds for the Walker Well project (estimated in the study at $10,000,000). He said the sewer utility's finances were comparatively stable but that water fund balances were depleted under a status‑quo projection.
Deputy City Manager Joe Cisneros reviewed the administrative steps the city took to comply with Proposition 218, including mailing notices and scheduling the public hearing. Staff reported three written protests had been received by the city clerk before the hearing closed; Fisher and staff clarified that only signed, written protests certified by the clerk count under Prop 218 and that emails do not qualify.
Mayor Pro Tem Nitesh Patel moved to adopt the resolution, seconded by Councilmember Debbie Baker. The council voted 5–0. The resolution directs implementation of the new rates in the first billing cycle after January 2026 and preserves the city’s process to tabulate written protests as required by Proposition 218.
The council will monitor fund balances and rate impacts as projects such as the Walker Well move closer to construction; staff noted the adopted scenario was chosen to avoid heavier debt issuance or abrupt rate increases later.
