City Council Meeting: June 10, 2025 Santa Monica, California RESOLUTION NUMBER ____________(CCS)
(CITY COUNCIL SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA, CALIFORNIA, REVISING WATER RATES AND
WATER SERVICES CHARGES
WHEREAS, the City Council may establish, amend or revise from time to time by resolution the rates and service charges for supplying water service to any customer pursuant to Government Code Section 54344 and Santa Monica Municipal Code Section 7.12.010; and
WHEREAS, the City is implementing a comprehensive long-range water system improvement program with the goal of maintaining a modern, reliable water network and infrastructure; and
WHEREAS, water rate increases are needed to fund routine capital improvement projects, invest in rehabilitating and replacing aging infrastructure such as the City’s four potable water storage reservoirs, and adequately fund ongoing cost of providing water services; and
WHEREAS, the City of Santa Monica is proposing water rate increases (“Water Rate Increases”) to the City’s tiered water structure over a five-year period beginning July 1, 2025, and the proposed maximum percentage increases, on a systemwide basis, are:
FY2025/2026
July 1, 2025
FY2026/2027
July 1, 2026
FY2027/2028
July 1, 2027
FY2028/2029
July 1, 2028
FY2029/2030
July 1, 2029
20% 16% 9% 9% 6%
; and
WHEREAS, in accordance with Government Code Section 54354, delinquent charges and penalties for water services when recorded in accordance with Government Code Section 54355 shall constitute a lien upon the real property served; and
WHEREAS, the City Council held a public hearing (“Hearing”) to consider the proposed Water Rate Increases on June 10, 2025; and WHEREAS, the City Clerk gave notice of the proposed Water Rate Increases, which notice contained a copy of the proposed resolution to adopt the Water Rate Increases and a declaration that delinquent charges and penalties when recorded as provided in Government Code section 54355 shall constitute a lien upon the real property served, and which notice was published at least once each week for two weeks prior to the Hearing in the Santa Monica Daily Press, in accordance with Government Code section 54354.5; and
WHEREAS, a separate notice of the proposed Water Rate Increases was also given in accordance with Article XIII D Section 6 of the California Constitution, by mailing such notice to the owner of record of each parcel in Santa Monica’s service area and parcels in the City of Los Angeles who receive water service from the City of Santa Monica; and
WHEREAS, the City Council has considered all written and oral testimony presented at the Hearing and considered whether the proposed Water Rate Increases: are not discriminatory or excessive; will be sufficient under Government Code section 54515; will comply with the provisions of Chapter 6 of Title 5, Division 2, Part 1 of the Government Code; will be sufficient under the provisions or covenants of any outstanding revenue bonds of the City, if any, payable from the water rate revenues; and will be in compliance with law;
NOW, THEREFORE, THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS:
SECTION 1. The City Council hereby determines that the proposed Water Rate Increases are not discriminatory or excessive; will be sufficient under Government Code section 54515; will comply with the provisions of Chapter 6 of Title 5, Division 2, Part 1 of the Government Code; will be sufficient under the provisions or covenants of any outstanding revenue bonds of the City, if any, payable from the water rate revenues; and will be in compliance with law.
SECTION 2. As of July 1, 2025, or as soon thereafter as practical, all customers will be charged both a bi-monthly fixed water service rate (based on meter size as specified in Section 3 below) and a water commodity rate (based on usage as specified in Sections 4 through 8 below).
SECTION 3. As of July 1, 2025, or as soon thereafter as practical, the fixed water service rate structure for all customers shall be as follows for the following years:
Water Rate
Schedule
Bi-Monthly Fixed Water Service Rates
FY2025/2026
July 1, 2025
FY2026/2027
July 1, 2026
FY2027/2028
July 1, 2027
FY2028/2029
July 1, 2028
FY2029/2030
July 1, 2029
Single Family Residential (meter size)
3/4 inch $50.06 $58.07 $63.30 $69.00 $73.14
1 inch $50.06 $58.07 $63.30 $69.00 $73.14
1.5 inch $84.00 $97.45 $106.22 $115.78 $122.72
2 inch $124.74 $144.69 $157.72 $171.91 $182.22
Multi-family Residential and Non-Residential (meter size) 3/4 inch $70.58 $81.88 $89.25 $97.28 $103.12
1 inch $70.58 $81.88 $89.25 $97.28 $103.12
1.5 inch $125.05 $145.06 $158.11 $172.34 $182.68
2 inch $190.41 $220.87 $240.75 $262.42 $278.16
3 inch $364.69 $423.04 $461.12 $502.62 $532.78
4 inch $560.76 $650.49 $709.03 $772.84 $819.21
6 inch $1,105.41 $1,282.27 $1,397.68 $1,523.47 $1,614.88 8 inch $3,066.13 $3,556.71 $3,876.81 $4,225.73 $4,479.27 Fire Service Lines (meter size)
1.5 inch $80.32 $93.18 $101.56 $110.70 $117.35
2 inch $118.85 $137.86 $150.27 $163.80 $173.62
3 inch $240.84 $279.37 $304.51 $331.92 $351.83
4 inch $465.55 $540.04 $588.64 $641.62 $680.12
6 inch $1,043.39 $1,210.33 $1,319.27 $1,438.00 $1,524.28 8 inch $1,813.85 $2,104.06 $2,293.43 $2,499.84 $2,649.83 10 inch $2,712.71 $3,146.74 $3,429.95 $3,738.64 $3,962.96 Any unauthorized metered water usage for fire service lines shall result in doubling of the fixed service charge for those fire service lines.
SECTION 4. As of July 1, 2025, or as soon thereafter as practical, the three-tier water commodity rate structure for all customers (subject to adjustment to a drought rate structure pursuant to Section 6 below as directed by the City Council when water conservation is mandated and subject to adjustment pursuant to Section 7 below for residential low income customers with individual water meters) shall be as follows for the following years:
Water Rate
Schedule
Commodity Charges – Bi-Monthly Volumetric Charges ($/HCF) (All Customers)
FY2025/2026
July 1, 2025
FY2026/2027
July 1, 2026
FY2027/2028
July 1, 2027
FY2028/2029
July 1, 2028
FY2029/2030
July 1, 2029
Tier 1 $6.78 $7.86 $8.57 $9.34 $9.90
Tier 2 $7.89 $9.15 $9.98 $10.87 $11.53
Tier 3 $12.36 $14.34 $15.63 $17.03 $18.06
Note: HCF = hundred cubic feet
SECTION 5. As of July 1, 2025, or as soon thereafter as practical, the bimonthly tier breakpoint for water usage shall be as follows:
Bi-Monthly Tier Breakpoint Table in HCF
Customer Class and
Meter Size Tier 1 Breakpoint Tier 2 Breakpoint Tier 3 Breakpoint Single Family
Residential Per Unit
(all meter sizes) 0 - 10 HCF 11 - 18 HCF 19+ HCF
Multi-Family Residential
Per Unit
(all meter sizes) 0 - 7 HCF 8 - 13 HCF 14+ HCF
Non-Residential
Per Meter Size:
3/4 inch 0 - 10 HCF 11 - 18 HCF 19+ HCF
1 inch 0 - 10 HCF 11 - 18 HCF 19+ HCF
1.5 inch 0 - 20 HCF 21 - 36 HCF 37+ HCF
2 inch 0 - 32 HCF 33 - 58 HCF 59+ HCF
3 inch 0 - 64 HCF 65 - 115 HCF 116+ HCF
4 inch 0 - 100 HCF 101 - 180 HCF 181+ HCF
6 inch 0 - 200 HCF 201 - 360 HCF 361+ HCF
8 inch 0 - 560 HCF 561 - 1,008 HCF 1,009+ HCF
Note: HCF = hundred cubic feet
SECTION 6. As of July 1, 2025, or as soon thereafter as practical, a drought rate structure will be in place and be in effect as directed by City Council when water conservation is mandated. The level of conservation mandated will determine the adjusted three-tier water commodity rate structure, which for all customers shall be as follows for the following years:
Mandated
Level of
Conservation
Drought Commodity Charges – Bi-Monthly Volumetric Charges ($/HCF) (All Customers)
FY2025/2026
July 1, 2025
FY2026/2027
July 1, 2026
FY2027/2028
July 1, 2027
FY2028/2029
July 1, 2028
FY2029/2030
July 1, 2029
Tier 1 $6.81 $7.90 $8.62 $9.39 $9.96
10% Tier 2 $9.17 $10.64 $11.59 $12.64 $13.40
Tier 3 $13.78 $15.98 $17.42 $18.99 $20.13
Tier 1 $7.65 $8.87 $9.67 $10.54 $11.17
20% Tier 2 $10.29 $11.94 $13.01 $14.18 $15.03
Tier 3 $15.46 $17.94 $19.55 $21.31 $22.59
Tier 1 $8.72 $10.11 $11.02 $12.02 $12.74
30% Tier 2 $11.73 $13.61 $14.83 $16.17 $17.14
Tier 3 $17.63 $20.45 $22.29 $24.30 $25.75
Tier 1 $10.15 $11.77 $12.83 $13.98 $14.82
40% Tier 2 $13.65 $15.84 $17.26 $18.82 $19.95
Tier 3 $20.52 $23.80 $25.94 $28.28 $29.97
Tier 1 $12.15 $14.09 $15.36 $16.74 $17.74
50% Tier 2 $16.35 $18.96 $20.67 $22.53 $23.88
Tier 3 $24.56 $28.49 $31.05 $33.85 $35.88
Tier 1 $15.15 $17.57 $19.15 $20.87 $22.13
60% Tier 2 $20.38 $23.64 $25.77 $28.09 $29.78
Tier 3 $30.62 $35.52 $38.72 $42.21 $44.74
Note: HCF = hundred cubic feet
SECTION 7. A low-income allowance for the Tier 1 commodity charge will be offered to residential water customers with individual water meters who qualify for the City’s Utilities User Tax Exemption Program or the Southern California Gas Co. or Southern California Edison low-income assistance programs. As of July 1, 2025, or as soon thereafter as practical, the residential low-income water commodity charge for residential customers with individual water meters shall be as follows for the following years:
Low-Income Commodity Charges – Bi-Monthly Volumetric Charges ($/HCF) (Residential Customers with Individual Water Meters Only) FY2025/2026
July 1, 2025
FY2026/2027
July 1, 2026
FY2027/2028
July 1, 2027
FY2028/2029
July 1, 2028
FY2029/2030
July 1, 2029
Tier 1 $5.78 $6.86 $7.57 $8.34 $8.90
Tier 2 $7.89 $9.15 $9.98 $10.87 $11.53
Tier 3 $12.36 $14.34 $15.63 $17.03 $18.06
Note: HCF = hundred cubic feet
SECTION 8. As of July 1, 2025, or soon thereafter as practical, the uniform recycled water rate shall be as follows:
Recycled Water Volumetric Charges ($/HCF)
FY2025/2026
July 1, 2025
FY2026/2027
July 1, 2026
FY2027/2028
July 1, 2027
FY2028/2029
July 1, 2028
FY2029/2030
July 1, 2029
Uniform
Rate $5.21 $6.04 $6.59 $7.18 $7.61
SECTION 9. In accordance with Government Code section 54354, delinquent charges and penalties for water services recorded in accordance with Government Code section 54355 shall constitute a lien upon the real property served.
SECTION 10. Resolution Number 11225 (CCS) is hereby repealed in its entirety, effective July 1, 2025.
SECTION 11. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
_______________________
DOUGLAS SLOAN
CITY ATTORNEY