Water Rates
Background
The City of Signal Hill operates a full-service water system that delivers safe, clean, and reliable water to more than 3,000 customers, including residents and businesses. The Water Division oversees all aspects of this system, ensuring efficient daily operations and meeting critical public health standards.
Maintaining a safe and sustainable water system requires a highly trained, certified staff and ongoing investment in infrastructure to comply with evolving state regulations. As the system ages and regulatory requirements become more stringent, periodic rate adjustments are necessary to support operations, fund essential capital improvements, and maintain financial stability.
To guide these efforts, the City conducts a comprehensive Water Rate Study to evaluate both the operational and capital needs of the Water Division. This study provides data-driven recommendations for rate adjustments that align with the City's long-term service and fiscal goals. The City’s 2023–2028 Strategic Plan identifies completion of the Water Rate Study and an update to the Water Master Plan as key initiatives for ensuring service reliability and financial resilience.
FY 2024-2025 Water Master Plan and Rate Study
On December 12, 2023, the City Council approved a consultant services agreement with Dudek to update the City’s Water Master Plan and Rate Study, last completed in 2018 and 2019, respectively. The Water Master Plan evaluates the City’s water infrastructure and identifies necessary capital improvements, while the Rate Study proposes a sustainable five-year rate structure to meet financial and regulatory requirements.
Following completion of the Water Master Plan evaluation assessment and recommendations, the City Council established a Water Rate Subcommittee on December 10, 2024, to review the findings and evaluate rate options. A City Council workshop was held on February 27, 2025, followed by a community workshop on March 10, 2025. On March 25, 2025, the City Council authorized staff to proceed with a self-funded rate adjustment and scheduled a Proposition 218 public hearing for May 27, 2025.
If approved, the new rates will take effect on July 1, 2025.
Stay Informed and Engaged
The City encourages community members to stay engaged in the rate-setting process. Learn how rates are determined, understand the legal requirements of Proposition 218, and see how rate revenues support the continued maintenance and improvement of our essential water infrastructure.