Politics
Long Beach Council Caps Utility Rate Increases Through 2027
The ordinance limits annual increases in city-managed utility rates to the local inflation measure, holding projected costs for the average Long Beach household at current levels into fiscal year 2027.
How we reported this
Long Beach City Council approved an ordinance on July 7 that caps increases in water and sewer rates at the regional consumer price index for the 2026-27 fiscal year. The measure applies to all residential accounts served by the Long Beach Water Department and affects roughly 175,000 metered households across the city.
National supply chain pressures and energy costs have pushed several California utilities to file double-digit rate requests this spring. Long Beach officials reviewed the city's own 2025-26 budget documents, which showed a 4.8 percent rise in imported water purchase costs from the Metropolitan Water District, before drafting the local cap.
Under the ordinance, a typical single-family home using 12,000 gallons monthly will see its combined water and sewer bill remain at the current $52 average rather than climbing to the previously modeled $55. Multi-unit buildings will receive the same percentage limit on pass-through charges, which property managers must itemize on rent statements starting in September.
Local Budget Data and Next Steps
City budget papers released in May list total residential utility revenue at $118 million for the current year. Staff analysis attached to the ordinance projects that the cap will reduce that revenue by $2.1 million, offset by a one-time transfer from the city's general fund reserve. The transfer is drawn from unspent port lease payments received in 2025.
Implementation begins August 1, when the Water Department will update its online bill calculator and mail revised rate sheets to all accounts. Residents can request a one-time payment plan adjustment through the city's customer service portal if their July bill already reflected a higher interim rate. The ordinance sunsets after 24 months unless the council votes to extend it.