2025 Sewer Fee Update
July 15, 2025
City of Placentia
1 Agenda
1. Review of the City’s Sewer System
2. Status of Sewer System and Sewer Enterprise Fund
3. Overview of Proposed Update to City Sewer Service Rates 2 4.Next steps
Overview of
City’s Sewer
System
3 Overview of City’s
Sanitary Sewer System (continued)
4 •Approximately 20% of the City’s collection system was constructed prior to 1970.
•50% of the City’s collection system was constructed during the 1980’s and 1990’s with the remaining post year 2000
construction
•The City does not own or operate any sewer lift stations.
City’s Current Sewer Fee Structure
5 •Established in 2005 via O-2005-04
(Chapter 5.24 of Municipal Code)
•Operation and Maintenance of City’s
Sewer System
•Variable fee based upon domestic
water consumption
•Fees were updated in 2021
User Category Current Sanitary
Sewer Fee per CCF
(100 cubic ft.)
Single-Family
Residential $0.81
Multi-Family
Residential $0.92
Commercial
/Industrial $1.08
Institutional $0.59
Government &
Public $0.81
Status of the Current Sewer Funds
6 Item FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24
Source of Funds Actuals Actuals Actuals Actuals
Sewer Fee 783,174.19 790,964.96 1,447,929.53 1,511,212.39 Interest Revenue 2,985.92 1,444.49 13,768.67 35,136.02
Other Revenue ----
Total Source of Funds 786,160.11 792,409.45 1,461,698.20 1,546,348.41 Use of Funds
Salaries & Benefits 382,497.98 373,827.72 382,846.75 543,697.46 Materials, Supplies &
Services 350,758.40 248,334.05 356,128.40 287,852.75
Transfer Out to GF -176,700.00 182,049.00
Capital Improvements ---
Depreciation 527,316.31 527,315.82 527,315.82 635,310.50 Total Use of Funds 1,260,572.69 1,326,177.59 1,448,339.97 1,466,860.71 Surplus (Deficit)(474,412.58)(533,768.14)13,358.23 79,487.70
Current Needs
•Two emergency repairs took place in FY 23-24
Cost $148,500
•One emergency repair took place in FY 24-25
Cost $170,000
•These locations were identified as needed for
rehabilitation in the 2018 SMP
7 10
Sewer Capital Improvement Program (7-Year)
No.Fiscal Year Project Description Location Project Cost 1 25-26 Old Town Sewer
Rehab Project
(Project B3)
Various in southwestern portion of City
(Center St, alleys, Angelina Dr, Chapman Ave, Kraemer
Memorial Park, Anned Dr, Bradford Ave, Wilson Ave, Orchid Dr, Primrose Ave, Sunset Dr, Placentia Ave, Harmony Ln, Twilight St, Alta St, Backs Ln, Molokai Ln, Lanai Ln, Kauai Ln ) $1,396,710
2 26-27, 27-28 Manhole Wall and
Bench Repairs
Citywide $410,884
3 27-28, 28-29 Project B1 –
Pipeline
Rehabilitation
Project
Various in southwestern portion of City
(Orangethorpe Ave, Ohio Ave, Missouri Ave, Kansas Ave,
Arnold Dr, Cypress Ave, La Jolla St, Vista Ave, Ortega Way, Melrose St, Boysenberry Ln, Crowther Ave, Temple St)
$673,968
4 27-28, 28-29 Project A6 –
Pipeline Capacity
Project
Tuffree Blvd $937,052
5 27-28, 28-29 A2 - Pipeline
Capacity Project
Bradford Ave, Orange Grove Ave, Walnut Ave, Santa
Barbara St, Placentia Ave
$6,837,228
11 Sewer Capital Improvement Program (7-Year)
No.Fiscal Year Project Description Location Project Cost 6 28-29, 29-30 Project B2 – Pipeline
Rehabilitation Project
Various in southwestern portion of City
(Primrose Ave, Diamond Rd, Orange Grove Ave,
Kraemer Blvd, Sunrise St, Stardust Dr, Moonbeam St,
Twilight St, Ruby Drive Elementary, Diane Ave, Vicky
Ln, Sheree Ln, Lawanda Pl, Aquamarine St, Jade Circle,
Emerald Way, Madison Ave, Bradford Ave, Carlson Ln,
Pageantry Dr, Fairway Ln)
$829,158
7 28-29, 29-30 Project A3 – Pipeline Capacity
Project
Twilight St, Sunrise Way, Sunrise St, Melody Ln,
Chapman Ave, Placentia Ave
$2,478,606
8 28-29, 29-30 Project A7 – Pipeline Capacity
Project
Bastanchury Rd $580,854
7 29-30, 30-31 Project A4 – Pipeline Capacity
Project
Orangethorpe Ave $1,232,652
8 30-31, 31-32 Project A5 – Pipeline Capacity
Project
Orangethorpe Ave, Melrose St, Silverlake Dr,
Glenlake Dr
$3,533,898
Total $18,911,010
Map of CIP recommended
projects from 2018 SMP
10 2025 Sewer Rate Study
•Current Rate Structure not adequate to support needs
Assumptions of Previous Study
•Aging Infrastructure and Capital Improvements
Deferred capital cost of $19M
•Current fees approved through FY 25-26. There is an immediate need to update them for future fiscal year.
•Rate adjustments have been reviewed by the Sewer Ad-Hoc committee
11 Financial and Planning Assumptions
12 Assumption Description
CIP Fee Flat Rate for Residential and Non-Residential
Customers
Inflation Assumption for CIP 3%
Annual Increase in Water Usage 0%
Water Usage Rates and services Provided by GSWC and YLWD First Rate Increase November 2025
Base Fiscal Year FY 2025-26
Capital Improvement Plan FY 2025-26 – FY 31-32
2025 Proposed Rates
13 Rate Class Current (FY
2025-26)FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 Single Family $0.81 $0.55 $0.55 $0.55 $0.55 $0.55 $0.55 Multi Family $0.92 $0.89 $0.89 $0.89 $0.89 $0.89 $0.89
Commerical/Industrial $1.08 $1.05 $1.05 $1.05 $1.05 $1.05 $1.05 Institutional $1.08 $0.58 $0.58 $0.58 $0.58 $0.58 $0.58 Government and Public $0.59 $0.55 $0.55 $0.55 $0.55 $0.55 $0.55 CIP Residential Fee $10.00 $12.00 $12.00 $12.00 $12.00 $14.00 CIP Multi Family (per unit)$10.00/unit $12.00/unit $12.00/unit $12.00/unit $12.00/unit $14.00/unit CIP Non-Residential Fee $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 Example MFR Current (FY
2025-26)FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 CIP Multi-Family (5 units)$50.00 $60.00 $60.00 $60.00 $60.00 $70.00 CIP Multi-Family (10 units)$100.00 $120.00 $120.00 $120.00 $120.00 $140.00
Average Monthly Fee By Customer
16 Rate Class
Water Usage
(CCF)Current FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 Single Family 16 $12.96 $18.80 $20.72 $20.72 $20.72 $20.72 $22.72 Multi Family (per unit)8 $7.36 $17.12 $19.12 $19.12 $19.12 $19.12 $21.12 Commerical 66 $71.28 $99.30 $99.30 $99.30 $99.30 $99.30 $99.30 Industrial 63 $68.04 $96.15 $96.15 $96.15 $96.15 $96.15 $96.15 Institutional 430 $253.70 $279.40 $279.40 $279.40 $279.40 $279.40 $279.40 Government and Public 42 $34.02 $53.10 $53.10 $53.10 $53.10 $53.10 $53.10
Average Monthly Increase by Customer
17 Rate Class
Water Usage
(CCF)Current FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 Single Family 16 $5.84 $1.92 $-$-$-$2.00
Multi Family 8 $9.76 $2.00 $-$-$-$2.00
Commerical 66 $28.02 $-$-$-$-$-
Industrial 63 $28.11 $-$-$-$-$-
Institutional 430 $25.70 $-$-$-$-$-
Government and Public 42 $19.08 $-$-$-$-$-
Average Monthly Increase % by Customer
18 Rate Class
Water Usage
(CCF)FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 Single Family 16 45%10%0%0%0%10%
Multi Family 8 133%12%0%0%0%10%
Commerical 66 39%0%0%0%0%0%
Industrial 63 41%0%0%0%0%0%
Institutional 430 10%0%0%0%0%0%
Government and Public 42 56%0%0%0%0%0%
Sewer Fund Revenue Projections
17 User Class Current FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 Single Family $946,323.39 $642,565.27 $636,840.59 $636,840.59 $636,840.59 $636,840.59 $636,840.59 Multi Family 2-4 Units $322,267.42 $311,758.70 $311,758.70 $311,758.70 $311,758.70 $311,758.70 $311,758.70 Multi Family 5-19 Units $28,706.45 $27,770.37 $27,770.37 $27,770.37 $27,770.37 $27,770.37 $27,770.37 Multi Family 20+ Units $152,606.84 $147,630.53 $147,630.53 $147,630.53 $147,630.53 $147,630.53 $147,630.53 Commerical/Industrial $803,336.40 $781,021.50 $781,021.50 $781,021.50 $781,021.50 $781,021.50 $781,021.50 Institutional $68,959.20 $67,790.40 $67,790.40 $67,790.40 $67,790.40 $67,790.40 $67,790.40 Government and Public $917.19 $622.78 $622.78 $622.78 $622.78 $622.78 $622.78 CIP Residential Fee $1,680,720.00 $2,016,864.00 $2,016,864.00 $2,016,864.00 $2,016,864.00 $2,353,008.00 CIP Multi Family 2-4 Units $80,160.00 $96,192.00 $96,192.00 $96,192.00 $96,192.00 $112,224.00 CIP Multi Family 5-20 Units $600.00 $720.00 $720.00 $720.00 $720.00 $840.00 CIP Multi Family 21+ Units $2,520.00 $3,024.00 $3,024.00 $3,024.00 $3,024.00 $3,528.00 CIP Commercial Fee $671,760.00 $671,760.00 $671,760.00 $671,760.00 $671,760.00 $671,760.00 Total $2,323,116.89 $4,414,919.55 $4,761,994.88 $4,761,994.88 $4,761,994.88 $4,761,994.88 $5,114,794.88
Expenses and Fund Balances
18 Expenses Current FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 Projects $-$1,396,710.00 $385,019.00 $8,474,113.00 $3,888,618.00 $1,232,652.00 $3,533,898.00 Yearly Maint $311,250.00 $326,812.50 $343,153.13 $360,310.78 $378,326.32 $397,242.64 $417,104.77 Yearly -PW $468,798.80 $492,238.74 $516,850.68 $542,693.21 $569,827.87 $598,319.26 $628,235.23 Total $780,048.80 $2,215,761.24 $1,245,022.81 $9,377,116.99 $4,836,772.19 $2,228,213.90 $4,579,238.00 7 Year Plan Balance Current FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30 FY 30-31 Projects $0.00 $1,039,050.00 $3,442,591.00 -$2,242,962.00 -$3,343,020.00 -$1,787,112.00 -$2,179,650.00 Yearly $1,543,068.09 $1,160,108.31 $2,273,539.38 $3,343,970.27 $4,369,250.95 $5,347,123.93 $6,275,218.81 Total Balance $1,543,068.09 $2,199,158.31 $5,716,130.38 $1,101,008.27 $1,026,230.95 $3,560,011.93 $4,095,568.81
21 Rates of Surrounding Cities
User
Category
Orange Brea Fullerton Yorba Linda
(administered
by YWLD)
City of La Habra Seal Beach
Single- Family
Residential
$27.36/month $13.31/month -
5/8”, 3/4”, 1”, 1-1/2”
meter
$28.41/
month - 2”, 3”
meter
$1.90/month per 1,000
gal ($1.42/month per
CCF)
Approximately
$23/month
$13.77/ month $5.78/month + $0.54/ccf =
$14.42/month
$24.02/month
Multi-Family
Residential
$14.80/month/unit $8.34/month per unit $1.90/month per 1,000 gal ($1.42/month per
CCF)
Approximately $15/mon
th
$13.25/month per unit $4.93/month/unit +
$0.63/ccf =
$10.60/month/unit
$0.61+$2/ccf=
$18.61/month
Commercial
/Industrial
$0.96/ccf/
month
$29.65/month –
5/8”, 1” meter
$106.01 - 1-1/2, 2”
meter
$189.05 -
$1884.93/month – 3”
& Larger Meter
$0.66-$96.16 fixed
fee/month (Varies by water
meter size)
+
$1.58/month per 1,000
gal ($1.18/month per
CCF)
$13.77/
month
+
Tier 1 (0-7 ccfs): $0.00
Tier 2 (8+ ccfs): $0.53
10.25/month + 1.27/ccf $0.61+$2/ccf
Institutional $0.96/ccf/month N/A N/A 10.25/month +1.27/ccf $0.61+$2/ccf Government &
Public
$0.96/ccf/month
N/A
$0.66-$96.16 fixed
fee/month (Varies by water
meter size)
+
$1.58/month per 1,000 gal
N/A 10.25/month +1.27/ccf $0.61+$2/ccf
Next Steps
•Adoption of Resolution to Set Public Hearing and Direct Staff to Initiate the Proposition 218 Process •Community Outreach
•Notice of Public Hearing - 45 Day Minimum Notice
•Public Hearing for Sewer Fee Increase (October 7, 2025) •Potential Effective Rate Date (November 7, 2025)
20 Questions & Comments
21