STAFF REPORT
Meeting Date:
July 21, 2026
NON APPEAL
16 SUBJECT: PUBLIC HEARING RELATIVE TO PLACING THE ANNUAL SEWER SERVICE
CHARGE FOR SEWER SERVICES ON THE PROPERTY TAX ROLL FOR
FISCAL YEAR 2026/27
RECOMMENDATION: It is recommended that the City Council:
1. City Council finds that this item is not subject to California Environmental Quality Act (“CEQA”) pursuant to Sections 15273 and Public Resources Code Section 21080(b)(8) because the sewer service fees are necessary and reasonable to fund the administration, operation, maintenance, and improvements of the City’s sewer system and will not result in the expansion of the sewer system;
2. Conduct a public hearing concerning the placement of the Annual Sewer Service Charge on the property tax roll for Fiscal Year 2026/27; and
3. Adopt the Resolution titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LAGUNA BEACH, CALIFORNIA, ESTABLISHING RATES FOR THE ANNUAL SEWER SERVICE CHARGE FOR SEWER SERVICES FOR FISCAL YEAR 2026/27”.
SUMMARY OF THE MATTER
On June 29, 2021, the City Council adopted Resolution No. 21.053 approving the annual sewer service charges for Fiscal Years 2020/21 through 2025/26. The approved rates included an annual increase of 6% for Fiscal Years 2021/22 through 2025/26 (Attachment 2). A new wastewater rate study is currently underway. Therefore, staff is recommending no change to the Annual Sewer Service Charge collected for Fiscal Year 2026/27. The purpose of this noticed public hearing is to confirm the report prepared by the City’s consultant, Koppel & Gruber Public Finance, and to seek City Council approval to request the Orange County Auditor-Controller place the Annual Service Charge on the property tax roll for Fiscal Year 2026/27. The Sewer Assessment Roll Report (“Report”) prepared by the Consultant identifies each parcel subject to the sewer service assessment for Fiscal Year 2026/27 (Exhibit A of Attachment 1). The Report includes total assessments of $11.7 million levied on 8,244 parcels.
DISCUSSION
In June 2026, the City entered into a three-year agreement with Koppel & Gruber Public Finance to compute and prepare the Sewer Assessment Roll Report (Exhibit A of Attachment 1) for the collection of the Annual Sewer Service Charge for Fiscal Year 2026/27. The rate schedule used to compute these assessments are the same as the rates used for the Annual Sewer Service Charge collected for Fiscal Year 2025/26:
Residential Rates
Annual Charge
per Unit
Single Family Units $1,022.94
Condominiums $1,006.08
Apartments (2 Units) $ 903.50
Apartments (3 or More Units) $ 829.03
PUBLIC HEARING RELATIVE TO PLACING THE ANNUAL SEWER SERVICE CHARGE FOR SEWER SERVICES ON THE PROPERTY TAX ROLL FOR FISCAL YEAR 2026/27 July 21, 2026
Commercial Rates
Charge per
100 cubic feet of
water consumption
Minimum
Annual Charge
Per Parcel
Commercial-Light $ 5.70 $1,005.01
Commercial-Medium $ 8.74 $1,005.01
Commercial-Heavy $12.61 $1,005.01
Notification of this public hearing was published in The Los Angeles Times on July 10, 2026, and July 17, 2026.
FINANCIAL ANALYSIS
The revenue for the Annual Sewer Service Charge is recorded in the City’s Wastewater Enterprise Fund (#137).
ENVIRONMENTAL ANALYSIS
This item is exempt from CEQA review under Public Resources Code Section 21080(b)(8) and State CEQA Guidelines Section 15273 because the sewer service fees are necessary and reasonable to fund the administration, operation, maintenance, and improvements of the City’s sewer system and will not result in the expansion of the sewer system.
ATTACHMENTS
1. Resolution Approving Sewer Assessments for Fiscal 2026/27 (Pgs. 3-6) Exhibit A - Modifications to the Fiscal Year 2026-27 Budget (Pgs. 7-118)
2. Resolution No. 21.053 Approving Sewer Rates for Fiscal Years 2021/22 through 2025/26 (Pgs. 119-121) Submitted By: .Michelle Bannigan Approved: .David A Kiff Michelle Bannigan, Director of
Finance
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Michelle Bannigan, Director of Finance Patrick Donegan, Assistant City Attorney