Signal Hill Council approves $199,996 purchase of water storage credits to bank 440 acre‑feet

The Signal Hill City Council on Monday approved a resolution authorizing the city manager to submit a carryover conversion request to the Water Replenishment District (WRD) and to amend the FY 26‑27 budget to appropriate $199,996.08 for the purchase.

Director of Public Works Kabina Luna told the council the city has an annual pumping allocation of 2,022 acre‑feet and that the recommendation would convert 440 acre‑feet of unused allocation into long‑term groundwater storage. "This funding will allow the city to convert 440 acre feet of unused pumping allocation into long term groundwater storage," Luna said, adding that securing credits now is expected to be cheaper than future rates.

Luna explained the city had maxed its one‑year carryover bucket (60% of the annual allocation, or about 1,213 acre‑feet) and that individual storage is capped at 50% (about 1,100 acre‑feet). She said the purchase aligns with the city's Urban Water Management Plan and supports future development by increasing available water supplies.

Vice Mayor Honeycutt moved the staff recommendation and Councilmember Jones seconded. The council approved the resolution on a roll‑call vote with all members present voting yes: Jones, Copeland, Vice Mayor Honeycutt and Mayor Tina L. Hansen. The staff report said the cost will be offset by approximately $200,000 in savings from reduced water use in FY 25‑26 and will not impact the general fund.

Next steps: staff will submit the carryover conversion request to the WRD and execute the budget amendment authorized by the resolution.