WATER RATE INFORMATION

The Lomita City Council held a public hearing on February 11, 2015 and approved a new 5 year rate structure for its water service.

The rate resolution can be found here.
The public notice can be found here.

FINAL REPORT – WATER RATE ANALYSIS
The Final Report on the Water Rate Analysis (December 2014) can be found here.

REASONS FOR THE PROPOSED RATE INCREASE

The mission of the City's water system is to continue to provide reliable, high quality and cost effective water service to its current and future customers.

The current water master plan includes recommendations for improvements to the operation and maintenance (O & M) program, capital improvement program (CIP) and development of a financing mechanism to implement the improvements.

BASIS OF PROPOSED RATES

State law allows for the collection of additional revenues to cover the cost of providing water service subject to noticing and a majority protest hearing (commonly referred to as a Proposition 218 hearing).  Costs included in the rates are electricity, equipment, personnel, supplies, etc.  Without a rate increase, the City's Water Fund will eventually run a deficit balance.  The proposed rates will allow the City's water utility to continue operation while providing essential services to its ratepayers.  The proposed rates are proportional to the cost of providing the service and revenues from the rates do not exceed the City's costs, as set forth in the City's Final Report – Water Rate Analysis, available at www.lomita.com/cityhall or in the Lomita City Clerk's office at 24300 Narbonne Avenue, Lomita, CA 90717. 

PROPOSED WATER RATE INCREASES

The rate adjustment would be implemented over the next five years.  The structure for residential accounts consists of: 1) a fixed bi-monthly water meter charge and 2) a variable bi-monthly water usage charge based on metered water use.  The structure for non-residential accounts consists of: 1) a fixed bi-monthly water meter charge (Table 1) and 2) a single tier bi-monthly water usage charge based on metered water use (Table 2).    

Table 1 - Proposed Fixed Bi-Monthly Meter Charge

Effective Date

n/a

3/1/15

7/1/16

7/1/17

7/1/18

7/1/19


Table 2 – Proposed Residential and Non-Residential Variable Bi-Monthly Commodity Charge per HCF

Effective Date

n/a

3/1/15

7/1/16

7/1/17

7/1/18

7/1/19

1 HCF = 748 gallons of water

The FY 16 rate would take effect on March 1, 2015.  Subsequent rate increases would take effect on July 1 of each year.

The meter charge is a fixed charge established on the basis of the size of the water meter serving a property. The purpose is to recover a portion of the City's fixed costs, such as the costs of billing and collections and customer service. The proposed commodity water charge has a uniform rate per hundred cubic feet (hcf) of water usage individualized for each class of customer and is based on customer consumption for a billing period. The commodity charge is structured to include a portion of the utility's fixed cost of the utility, pumping water, a portion of the water rights, cost to purchase imported water, managing the City's water resources and encouraging efficient water use. The commodity water charge recovers revenue intended to cover costs not recovered in the meter charge. Together, the two components of the City's water service fees are structured to recover the proportionate costs of providing water service to each customer class.

HOW TO CALCULATE YOUR BILL

Typical Single Family Residential Water User (Bi-Monthly Bill)

Meter Charge (3/4") Commodity Charge* (20 HCF) Total – Bi-Monthly Bill
Current $41.93 + $64.40 = $106.33
Proposed (3/1/15) $36.90 + $70.60 = $107.50
Bill Difference = $1.17

* Typical user at 20 HCF consumption for the two month period.

The new rates are scheduled to take effect for billing periods beginning on March 1, 2015 (will be reflected in the May 2015 bill).

If you have questions, please contact Alicia Velasco, Community Development Department at (310) 325-7110, x122 or via email at a.velasco@lomitacity.com.