Budget Planning Sessions - Fiscal Year 2027
The Long Beach Utilities Commission will host three budget planning sessions to determine the Department's Fiscal Year 2027 budget. All sessions were held during the Board of Public Utilities Commissioners meeting on the following dates:
-
Thursday, May 14, 2026
-
Thursday, May 28, 2026
-
Thursday, June 4, 2026
The department’s FY 27 budget encompasses a $198.5 million Water Fund, $178.2 million Gas Fund, and $62.4 million Sewer Fund that supports critical infrastructure investment, maintenance and emergency repairs, and daily customer services from October 1, 2026, through September 30, 2027. The approved FY 27 budget includes rate increases for residential and business customers across all three utilities. The combined impact of all three utility rate adjustments is estimated to increase the average residential bill by $6.33 per month.
Proposed Natural Gas Rates
The Board has additionally recommended, pending City Council approval, a 2% increase in residential volumetric natural gas rates effective October 1, 2026. For the average residential bill, this translates to an estimated monthly increase of $0.59.
For non-residential gas customers including, small, standard, and large commercial and industrial customers, transportation and exchange of natural gas service, rate increases for specific commercial and industrial rate classes are proposed and will be up for City Council consideration in fall 2026.
For proposed non-residential gas rates, please click here.
Proposed Water and Sewer Rates
The Board approved for City Council consideration, a 6% increase for water rates and an 8% increase for sewer rates effective October 1, 2026. The average monthly water bill for a single-family residence will increase by approximately $4.64 per month. The average sewer bill for a single-family residence will increase by approximately $1.10 per month. Pursuant to Proposition 218, water and sewer account holders may protest the proposed rate increases via e-mail, mail, and in-person at or before the Proposition 218 hearing on August 27, 2026.
For proposed water rates, please click here.
For proposed sewer rates, please click here.
Proposition 218
In November 1996, California voters approved Proposition 218, amending the California Constitution as it relates to local governments, fees and charges, including for water and sewer. Pursuant to Proposition 218, the Long Beach Utilities Department will host a public hearing to consider public protest on proposed increases to the City’s water and sewer rates. Hearing information will be mailed to all water and sewer account owners and posted online at least 45 days prior to the hearing date.
The Proposition 218 public hearing is scheduled for Thursday, August 27, 2026 at 7:00 PM.
The hearing will take place at the Long Beach Utilities Administration Building located at:
1800 East Wardlow Road
Long Beach, CA 90807
Cost of Service Study
The Long Beach Utilities Department (formerly known as the Long Beach Water Department) contracted with Raftelis to complete a Cost-of-Service Update for its water, reclaimed water, and sewer rates in 2022. The study outlines the associated costs incurred to provide water and sewer services to each customer type. The study also showcases how utility rates are determined based on current revenue, costs, and utility demand.
|