Pico Rivera sues water district over 110% rate hike

LOS ANGELES – The city of Pico Rivera has filed a lawsuit to challenge a projected 110% increase in water rates for residents and businesses, arguing the hikes aren’t justified.

At a Feb. 15 meeting of its board of directors, the Pico Water District voted to raise water rates by double digits each year over the next five years.

District officials said the hike was needed for infrastructure and capital improvements, including treating “forever chemicals” in the system’s potable water, the Whittier Daily News reported.

“As Mayor of Pico Rivera, I am deeply concerned about the significant financial burden that the outrageous 110% hike in water rates imposed by the Pico Water District will place on our residents and businesses,” Pico Rivera Mayor Andrew Lara told KTLA.

The PWD covers about 30% of the city’s nearly 59,000 residents, about 90.5% of which identify as Latino.

Lara called the increase “unjustifiable,” arguing that they were approved based on the result of a 2023 study when one wasn’t expected until 2025.

Despite the study coming two years earlier than normal, the study’s authors, Water Resources Economics, suggested a 25% increase in the first year, followed by a 20% increase and three years of 12% annual increases. Over five years, water rates would increase by 110%.

“We believe that the District has failed to meet its burden of demonstrating that the rate increase is necessary and justified, as required by the California Constitution,” Pico Rivera City Manager Steve Carmona said.

The city has asked the courts to stop the implementation of the rate hikes, urging the water district to reconsider.

“Our lawsuit seeks to protect the rights of our residents and hold the Pico Water District accountable for its actions. We are committed to fighting for fair and reasonable water rates that reflect the true cost of service provision and ensure the financial sustainability of our community.”

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