Planned Sewer Rate Increase Takes Effect July 1, 2024

Published on January 24, 2024

Customers on City sewer service will see a planned rate increase beginning July 1, 2024, in order to continue improving the City’s aging sewer system and to remain in compliance with federal Clean Water Act regulations.

The City of South Gate held a Public Hearing as part of the Proposition 218 requirements and approved a 5-year sewer rate adjustment.  The annual rate increases are (July 1st of each year beginning in 2024 of 100%, 10%, 10%, 5%, and 2%).

The new rates are required to cover the actual cost to maintain the City’s aging sewer system. The City had not increased rates since 2010 but even with the full 5 year increase completed South Gate will still have the 3^rd lowest sewer rates in the South LA Region.

The City is required to provide sewer system service and maintain its continued operation throughout the city. The Sewer Fund obtains its revenue based on a $0.35 charge per 100 cubic feet of water or 748 gallons used by residents, businesses, and industry.

Approved Rates

The approved rate structure includes a Fixed Rate plus Variable Rate. The Fixed Rate provides revenue needed for the City’s fixed operating costs which remain the same regardless of water usage. The Variable Rate allows for residents to control their bill based on actual usage.

The new billing structure allows for the variable rate charged to be less for single family residential units while still securing an equitable contribution to the Sewer Fund to fully fund the City’s needs.  The rate increase is proposed to meet the needs of the sewer program over the next five years.  The rates would provide sufficient revenue to eliminate the current and future projected Sewer Fund deficits.

An average residential customer uses 10 HCF and currently receives a bill for $3.50 per month. Following the July 1, 2024 effective date, a residential user with 10 HCF use will receive a bill for $6.49.

The City’s current sewer rate is currently the lowest of all the cities included in a rate comparison. The proposed sewer rate increase will result in the City’s rates still being the lowest at the beginning of implementation. At the end of five years of rate increases, the City’s sewer rate would be the third lowest of the cities surveyed; presuming the surveyed cities do not raise their rates over the next five years, which is unlikely.

South Gate's rates are competitive and reflect the City's commitment to providing a safe and efficient sewer system without overburdening its residents.

For more information, visit civicmic.com/southgate, call (800) 676-7516 or email contact@civicmic.com.