Citing a rise in costs to deliver gas and water to the public, the Long Beach Board of Utilities Commissioners on Tuesday approved higher rates, as part of their $397.4 million budget for the fiscal year that begins in October.
Under the plan, water and sewer rates will go up starting Oct. 1. Under the proposal, the monthly charge for the typical single-family home will increase by 12% for water and sewer rates. This translates to an average increase of $8.26 per month for a single-family water bill and $1.47 for a monthly sewer charge.
For gas services, the board approved a 15% increase starting in August, followed by a 12% hike next April. For a typical single-family home, this translates to an estimated monthly increase of $4.67.
Service from the Long Beach Gas Department would still be lower than most others in the region, officials say.
Stefanie Clavery, senior director of Long Beach Finance and Information Services, said city households will average $54 a month compared to $57 for SoCal Gas, San Diego Gas and Electric at $82, Palo Alto at $70, Southwest Gas at $74 and PG&E at $87.
The increase in rates, officials say, are meant to offset the rising costs of construction, imported water and other “inflationary pressures.”
“We understand that these are very difficult times for households and businesses and the decisions that we’ve come to, we don’t take lightly,” Clavery said.
It’s part of a budget that is 4.3% more expensive — about $8.8 million — than last year. Since the city’s Utility Department — along with agencies that govern the airport and harbor — manage their own accounts, the budget will skip citywide hearings that start next month and go before the City Council for final approval in mid-September.
For the city water system, the $187.5 million 2025-26 budget is 4.3% more than last year’s, officials say, covered by $193.7 million in revenue. Expenditures for the city sewer system will cost $36.7 million, while gas expenditures will cost $173 million. The city sewer system will cost 13% more and the city gas fund will appropriate 5% more.
According to Utility Department spokesperson Joy Contreras, the city has maintenance and emergency repairs planned for about 4,000 miles of city pipeline that feed water, gas and sewage to and from about 260,000 Long Beach homes and businesses.
“Long Beach ratepayers have entrusted us to supply them with the highest quality drinking water, safe delivery of natural gas, and well-functioning sewer systems,” Long Beach Board of Utilities Commission President Gina Maguire said. “Long Beach Utilities is committed to investing in a resilient future by building upon, maintaining, and repairing our critical underground infrastructure by employing a balanced budget approach and while keeping rates as affordable as possible for our customers.”
The budget also accounts for repairs to sewer lift stations ahead of the 2028 Olympics in Los Angeles. Long Beach is scheduled to host 11 disciplines citywide during a 17-day period.
“I know whenever we look at double-digit increases it’s really difficult, but I hope the public understands that we’re dealing with declining revenues and increasing costs and trying to maintain the integrity of the program,” said Gloria Cordero, the utility board secretary.
Utility rates were raised in 2024: an 11% bump for water rates and 8% rise in sewage costs. It comes as the Metropolitan Water District of Southern California, which sends water to six counties, including Los Angeles, announced it will raise rates by 8.5% in 2025 and 2026.
District leaders said the increases are needed to cover the cost of importing and treating water, regulatory compliance with the state and the climbing impacts of climate change.
If approved, notice letters of the rate change will be sent out to the residents in early July, 45 days prior to the required Proposition 218 protest hearing on August 27.
For more information on gas, water, or sewer services, income assistance programs, and helpful tools to estimate your bill, visit LBUtilities.org or call 562-570-5700.