NOTICE OF A PUBLIC HEARING

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1 NOTICE OF A PUBLIC HEARING This is a notice of the City s intent to raise water service fees. If you wish to protest this increase in fees, you must provide a written protest in accordance with instructions provided. NOTICE IS HEREBY GIVEN that the City Council of the City of Signal Hill, California, will hold a public hearing on Tuesday, May 10, 2016 at 7:00 p.m., or as soon thereafter as practicable, in the City Council Chambers located in City Hall at 2175 Cherry Avenue, Signal Hill, California, to consider any public protests of a proposed 8% annual increase to the City s water rates in FY The purpose of this notice is to provide you with information about the hearing and protest proceedings being conducted by the City of Signal Hill on real property that you own. This notice is being sent in accordance with Article XIIID, Section 6 of the California Constitution. How do I determine my increase? The City is proposing an 8% increase annually to your monthly water bill for the next five fiscal years. Your water bill may vary monthly based on your consumption of water and also based on the size of your individual water meter. In order to estimate your monthly increase, you will need to multiply the Pay this Amount line in your municipal water bill by a factor of Both the usage and fixed fees are increasing. The typical single-family home or condominium in Signal Hill will see a first year monthly increase of $2.54 per month based on monthly usage of 1,100 cubic feet (8228 gallons) of water. The proposed percentage increases and typical residential billing amounts for 1100 cubic feet (8228 gallons) of water per month are: Current FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Fixed Charge $ $ $ $ $ $ Volumetric $ $ $ $ $ $ Total $ $ $ $ $ $ Percent Change 7.987% 7.988% 7.989% 7.991% 7.988% The effective dates of the proposed rate adjustment are: FY June 24, 2016 FY January 1, 2017 FY January 1, 2018 FY January 1, 2019 FY January 1, 2020 City of Signal Hill Water Rate Public Hearing Notice Page 1 of 6

2 Calculation of new rate in first year of increase: Why are the water rates increasing? The City of Signal Water system is fully self-supported and funded utilizing revenue from water deliveries. No General Fund money is used by the Water Department. The City s water rates are based on the cost of fully covering the cost of water service to the community. This includes personnel expenses, water supply costs, operational costs, debt service, cost of capital improvements and maintaining reserves as shown in the Water Rate Financial Report (Report) on file with the Director of Public Works. Signal Hill last increased water rates in City of Signal Hill water service rates have increased by 13% since 2004, while the Los Angeles County CPI has risen 25.4% during that period. The primary factors prompting the proposed increase include an increase in overall operating costs since the last rate adjustment. Major cost factors include increasing Water Replenishment District replenishment assessment fees, insurance and distribution system maintenance. Page 2 of 6

3 How do our rates compare with surrounding cities? Signal Hill strives to maintain water rates as low as economically feasible. The City s last water rate increase was 5 percent in January 2009 and again in January Since then, other cities have raised and continue raising their water rates to accommodate the increased cost of purchasing and delivering water: The chart below shows a comparison of Signal Hill s single family residential monthly water bill to neighboring cities based on use of 8228 gallons per month. What s the procedure to protest? 1. Owners (or renters subject to the fee increase) of real property in Signal Hill who wish to protest the increase can either send in a written protest to the address below or attend the public hearing to register their protest at the hearing. Written protests must be received prior to and during the public hearing on Tuesday, May 10, Any written protests Page 3 of 6

4 . received following the close of the public hearing will not be counted. All protests must (at a minimum) meet the following requirements to be counted: (i) must be written, (ii) have a clear statement of protest, (iii) identify the legal interest of the person protesting, and (iv) identify the address or assessor parcel number of the property. In order to be valid, a protest must bear the original signature of the party with an interest in the property identified on the protest. Protests not bearing the original signature shall not be counted. Written protests should be addressed to: Signal Hill City Clerk 2175 Cherry Avenue Signal Hill, CA All interested persons are invited to attend the public hearing to present written information, express their opinions, or otherwise present evidence on the above matter. However, State law limits the protest to owners (or in some areas, renters responsible for the fee) of real property, with one protest per identified parcel to be counted. Only written protests received prior to and at the public hearing will be counted. Oral protests will be heard, but may not necessarily affect the outcome of the protests as showing in the final sentence of this paragraph. The City Council will receive a report from the Director of Public Works, who will report the number of protests received prior to the public hearing. The City Council will receive a report from the Director of Public Works and City Clerk, who will report the number of protests received prior to the public hearing. At the conclusion of the public hearing, the City Clerk shall complete the tabulation of all protests received, including those received during the public hearing and shall report the results of the tabulation to the City Council upon completion. If review of the protests received demonstrates that the number received is manifestly less than one-half of the parcels served by the City with respect to the fee which is the subject of the protest, then the Clerk may advise the City Council of the absence of a majority protest without determining the validity of all protests. A majority protest exists if written protests are timely submitted and not withdrawn by the record owners of a majority of the properties subject to the proposed fee. The City Council will not be permitted to adopt the rate increase should a majority written protest be received (50% plus 1) on all identified parcels subject to the increase. If you wish to legally challenge any action taken by the City on the water rate increase, you may be limited to raising only those issues you or someone else raised at the public hearing as described in this notice or in written correspondence delivered to the City prior to or at the public hearing. If you own property and your tenants are responsible for the payment of the water bill, please forward this notice to your tenants, too. Where can I get more information? The City has completed a Water Rate Financial Report on the proposed rate increase. This file may be inspected by the public at the City of Signal Hill Public Works Department, 2175 Cherry Avenue, Signal Hill. The office hours are 7:30 a.m. to 5:30p.m. Monday through Thursday and City Hall is open on Fridays until 4:30 p.m. Copies of the Report can also be found at the Signal Hill Library at 1770 East Hill Street. The Report can also be downloaded from the City of Signal Hill s website at You may also contract Travis Brooks at Page 4 of 6

5 Proposed Residential & Commercial Rates The current water rate and the proposed 8% rate adjustments are shown below based on water consumption and water meter size. The current water meter fixed charge and the proposed 8% rate adjustments are shown in the tables below. This fixed charge is added to the cost of your monthly water usage. Most single-family homes have a 5/8 or 3/4 water meter. To find out the size of your water meter, you may call the City s Finance Department at (562) Water Usage Rates Residential FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Billing Units Current 0-15 units $1.880 $2.030 $2.192 $2.367 $2.556 $ units $3.000 $3.240 $3.499 $3.779 $4.081 $4.407 Commercial Billing Units Current FY 2016 FY 2017 FY 2018 FY 2019 FY units $1.880 $2.030 $2.192 $2.367 $2.556 $ units $3.000 $3.240 $3.499 $3.779 $4.081 $ units $4.420 $4.774 $5.156 $5.568 $6.013 $6.494 Irrigation FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Billing Units Current 0-15 units $1.880 $2.030 $2.192 $2.367 $2.556 $ units $2.860 $3.089 $3.336 $3.603 $3.891 $4.202 Residential and Commercial Fixed Monthly Service Charges Residential/ Commercial Current FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Meters 5/8'' $ $ $ $ $ $ /4 $ $ $ $ $ $ '' $ $ $ $ $ $ '' $ $ $ $ $ $ '' $ $ $ $ $ $ '' $ $ $ $ $ $ '' $ $ $ $ $ $ '' $ $ $ $ $ $ '' $ $ $ $ $ $ '' $ $ $ $ $1, $1, Page 5 of 6

6 Fire Service Fixed Monthly Service Charges Residential Fire Service Current FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Meters 2'' $ $ $ $ $ $ '' $ $ $ $ $ $ '' $ $ $ $ $ $ '' $ $ $ $ $ $ '' $ $ $ $ $ $ Business Fire Service Current FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Meters 2'' $ $ $ $ $ $ '' $ $ $ $ $ $ '' $ $ $ $ $ $ '' $ $ $ $ $ $ '' $ $ $ $ $ $ Page 6 of 6

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