The City of Whittier pumps water from six deep wells that draw water from the Main San Gabriel groundwater basin and the Central groundwater basin. The water is then treated and delivered to 10 reservoirs before being extracted and distributed to customers through 155 miles of pipes. The Wastewater Maintenance Division maintains 211 miles of wastewater lines within the city.

All sewer lines are cleaned annually with some on a more frequent basis. Sewer service charges are based on measured water usage and collected on the County property tax bill.

The City’s utilities are funded separately from the City’s General Fund, primarily by the rates customers pay. Customer payments ensure the City’s ability to deliver high-quality, reliable water and sewer services in a manner that values our environment and community, and sustains the resources entrusted to our care.

The City of Whittier is committed to good governance, fiscal accountability, and transparency, with systems and policies in place to earn the trust of our customers.  

The City is committed to using industry best practices to ensure we plan thoughtfully for the future. Revenues collected through water and sewer rates are invested in our infrastructure to secure system reliability now and well into the future. Revenues derived from utility rates ensure the continuity of operations and reliable service delivery. As an example, rates pay for:

• Purchase and pumping of local groundwater
• Replacing and repairing aging infrastructure.
• Maintenance and repair of critical infrastructure, such as water reservoirs, booster stations, and groundwater wells.
• Maintaining more than 155 miles of water pipelines and 211 miles of wastewater pipelines to ensure water delivery to homes and businesses, and wastewater collection to be treated and recycled by Los Angeles County.
• Maintaining, repairing, and replacing more than 1,064 fire hydrants.
• Hiring and retaining highly skilled, qualified, and licensed staff to operate the water and wastewater systems and conduct water quality monitoring.

Rate studies are conducted as an industry best practice to ensure that a utility’s financial health is maintained, and that the City is setting a course toward meeting future financial obligations. The industry standard is to perform comprehensive rate studies every three to five years.

Our last water and sewer rate study was in 2019 before the pandemic. Due to inflation-related cost increases to operate and maintain the systems, repairs and replacement, and meeting state and federal regulations, the utilities’ fund revenues have been impacted. The rate study is being conducted to adjust rates to address the deficit and balance operating budgets, while also planning for future capital improvement projects.

The most recent City of Whittier water and sewer rate study was completed in 2019, after which annual rate increases through 2024 were approved and implemented. Ideally, rate studies should be performed every 3-5 years. Regular rate studies are critical to the healthy operation of the City’s utilities. Utility systems must keep up with rising costs and be able to implement critical capital projects that are mandated or necessary for the health and safety of our community. 

Performed regularly, utility rate studies provide transparency into what the City can expect in the years ahead and ensure we have the financial resources to meet our budget, maintain our infrastructure, implement new technologies, address existing and new state and federal regulations, and implement our Capital Improvement Program (CIP). 

Other elements of rate studies include the development of a reserve policy that considers the different types of risks we face, including future drought conditions, emergency repairs, and increased water costs and ensures revenue stability while maintaining affordability.

Proposed rates are determined following evaluation and analysis of cost escalations related to operation and maintenance, water treatment and distribution, sewer collection, capital project costs, general inflation, and material cost increases.

California’s Proposition 218 requires the City to follow certain procedures when proposing rate adjustments to water and sewer services and follow a public process that provides property owners with an opportunity to protest proposed rate increases if they feel they are unwarranted. 

Under CA Prop 218, property owners and customers will receive a public notice detailing proposed rate adjustments, the protest process, and the City Council Public Hearing date. Property owners will have 45 days to petition the proposed rate adjustments through a simple written process.

In the Public Hearing, the City Council will review customer petitions and consider approving or denying rate adjustments. Should the City receive a majority protest from customers, rate adjustments will not be implemented.

The City hired consultants with expertise in water and sewer rate studies in California and across the country. The financial consultants’ scope of work includes developing long-range financial plans for utility services and assisting with the California Proposition 218 process and Public Hearing required for adopting new rates.

The rate study consists of a series of steps involving data evaluation, performing technical analyses, deriving customer rates, and understanding customer impacts of any modifications. Once rate proposals are determined, the complete study is documented in a Study Report to serve as part of the City’s administrative record.

In California, all parcels connected to a utility system must be given notice of any rate changes with the ability to protest the proposed rates. The notice details the proposed rates, the basis for calculating the proposed rates, the reason for the proposed rate increase, the details of the Public Hearing, and the property owner’s right to protest.

After a protest period of no less than 45 days, the City Council will conduct a Public Hearing. Absent a majority protest to the rate proposal, the City Council may choose to adopt the rates as noticed.

The anticipated schedule to complete the rate study and consider new rates is November 2024 for proposed implementation on January 1, 2025.

The public will have many opportunities to learn more and provide input. We encourage the community to stay informed about water supplies, sewer collection, and utility rates through the website at www.cityofwhittier.org/government/public-works.

Residents are also encouraged to submit questions or comments via email to pubwks@cityofwhittier.org or call (562) 567-9530.

Establishing rates is a collaborative effort with input from City staff, financial experts, community members, and the City Council.

Enterprise Funds must pay for themselves and meet minimum debt and reserves to maintain a healthy utility. The purpose of a five-year rate study is to reconcile these differences in projected expenses and revenues and factor actual expenses and surpluses or deficits into the projected revenue needs for the next five years. Rate revenues must also fund reserves to address unforeseen conditions such as emergency repairs, or drought, and to meet debt requirements.

Utility reserves are not used to fund other City expenditures and must only be utilized for the respective utility enterprise fund. 

The rate study will include projected expenses and forecasted cost increases over the next five to 10 years. If there is additional revenue or expenses, the funds will either be slightly in the positive or slightly in the negative, with the objective of a healthy utility fund to balance revenues with expenses over multiple years. 

No. Water funds can only be used on water projects and sewer funds can only be used on sewer projects. For example, water or sewer system revenues cannot be used to fund other City services, such as libraries, parks, or public safety.

The rate study and financial conditions take many months of calculations and review. As the rate study progresses, proposed rates may not be known until September or October 2024.

Proposition 218 requires the City to adopt rate structures that reflect the City’s actual costs of serving each customer class. Throughout the rates studies process, the community is encouraged to provide input.

Questions and comments can be submitted via email to pubwks@cityofwhittier.org or call (562) 567-9530.

If rates are not raised, the City would need to review the pressing needs of our aging systems and prioritize those that are most critical to ensure public and environmental health.

We would be forced to defer major infrastructure projects, which would, in turn, leave our existing systems vulnerable.

These investments are needed now. Deferring until later will only guarantee higher costs and possible increased regulatory oversight by permitting agencies.

The City is continually making necessary investments in utility capital improvements to meet current and future system needs, including the renewal, replacement, improvement, and expansion of capital facilities and infrastructure.

The five-year, $29.7 million Capital Improvement Plan (CIP) lays out the immediate infrastructure projects needed to continue delivering high-quality services to our community.

CIP projects include water and wastewater main replacements, water well replacements and upgrades, Murphy and Rideout Reservoir replacement, pump station replacement, booster station improvements, and the large valve replacement program.