Understanding the New South Gate Sewer Billing Rates: Meet Maria

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Mother and two kids walking across intersection in South Gate representing Understanding City of South Gate water billing

Understanding the New Sewer Billing Rates: Meet Maria

Hello, community members! There's been a lot of discussion around the new South Gate sewer billing rates coming into effect from Fiscal Year 2023. We  understand that change can sometimes be confusing, so we decided to break the changes down with a simple example. Meet Maria, a single-family homeowner who will help us understand how the new system will impact typical households like yours.

The Old System

Under the previous rate structure, Maria paid $0.35 per hundred cubic feet (hcf) of water she used each month. With an average monthly usage of 10 hcf, her regular sewer bill was around $3.50. Simple enough, right?

The New System

The City is introducing a new billing approach starting in FY 2023 to increase revenue stability and cover a portion of fixed costs. The new billing structure will have two components:

  1. Fixed Rate: A steady monthly rate of $3.62 that covers ongoing maintenance and ensures stable revenue.
  2. Variable Rate: A charge based on water usage, which will be $0.32 per hcf (748 gallons of water).

How The New System Affects Maria

  • Fixed Rate: No matter how much or little water she uses, Maria will see a fixed charge of $3.62 on her monthly bill.
  • Variable Rate: In addition to the fixed rate, Maria's bill will include a variable charge. If she continues to use about 10 hcf per month, this would add another $3.20 to her bill.

So, her new monthly bill will be $3.62 (fixed) + $3.20 (variable) = $6.82. That's a moderate increase of approximately $3.32 compared to her previous rate.

You can check your rate at the South Gate Sewer Billing Rate Calculator here.

Why This Change?

The new system is aimed at maintaining the quality and reliability of our community’s sewer system. The fixed rate guarantees revenue that goes directly into maintenance, while the variable rate ensures that those who use more, pay more. It’s a balanced approach to ensure the system remains robust and sustainable for everyone.

Change can be challenging, but understanding the rationale behind it can make it easier to adapt. While Maria's bill will increase slightly, she appreciates that the new rate system is designed to benefit the community at large. We hope this example helps you understand how the new rates will affect you.

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