Long Beach Utilities Adopts FY 26 Budget

Published on June 18, 2025

Long Beach Utilities Commission Approves FY 26 Budget  

Picture Description: Long Beach Board of Utilities Commissioners discuss the FY26 budget at the final budget workshop

Long Beach, CA – On June 17, 2025, the Long Beach Board of Utilities Commissioners adopted the Long Beach Utilities Department budget for Fiscal Year 2026 (FY 26). The $397.4 million budget funds capital improvement projects, investments for groundwater supply augmentation, and covers expenses for scheduled maintenance and emergency repairs for 4,000 miles of main and lateral water, sewer, and natural gas pipelines. The budget also accounts for advancing maintenance of sewer lift stations in preparation for the LA28 Olympics. The Department's FY 26 budget encompasses a $187.5 million Water Fund, $173.2 million Gas Fund, and $36.7 million Sewer Fund that supports infrastructure, maintenance, and customer services from October 1, 2025, through September 30, 2026.

“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,” says Long Beach Board of Utilities Commission President Gina Maguire. “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 approved FY 26 budget includes utility rate increases. These increases are needed to address inflationary pressures impacting infrastructure improvements necessary to maintain a safe, reliable and climate resilient water, sewer, and gas system that serves nearly 500,000 residential users, commercial businesses and local small businesses. The Board approved for City Council consideration, a 12% increase for water rates and a 12% increase for sewer rates effective October 1, 2025. The typical monthly water bill for a single-family residence will increase by approximately $8.26 per month. The typical sewer bill for a single-family residence will increase by approximately $1.47 per month.

To maintain fair and competitive pricing aligned with regional market trends, a phased increase to natural gas rates has been proposed. The Board has recommended, pending City Council approval, a 15% increase in volumetric rates effective August 2025, followed by an additional 12% increase in April 2026. These adjustments reflect market-based transmission costs while ensuring that Long Beach customers pay only the actual cost of natural gas. For a typical single-family home, this translates to an estimated monthly increase of $4.67. Thanks to proactive measures implemented by the Board in October 2023, Long Beach natural gas customers continue to benefit from the most significant ratepayer protections in California.

Long Beach Utilities held three separate budget workshops in-person on May 1, May 15, and June 17. The Department will host the required Proposition 218 hearing to consider protests to its proposed water and sewer rate increases on Wednesday, August 27, 2025. Proposition 218 hearing information will be mailed to all water and sewer account owners and posted online at least 45 days prior to the hearing date. To view more information on Long Beach Utilities’ Proposition 218 hearing, please visit LBUtilities.org/budget.

Bill assistance is available for qualified account holders, based on income level. Utility bill assistance in California is based on federal poverty levels. The U.S. Department of Health and Human Services updates poverty thresholds annually: 

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