South Gate : 15% Water Rate Hike OKd
The South Gate City Council has approved a 15% increase in water rates effective Jan. 1. The increase will add about $1.24 a month to the average water bill, which is now about $8.13.
It is estimated that the increase will raise about $480,000 annually in additional revenue for maintenance and operation of the city’s water system.
A portion of the money will be saved in reserve to help finance a proposed 5-year, $20-million project that would improve the 60-year-old system.
The council has been wrestling for more than 2 years with ways to cleanse and upgrade the system. It is studying some type of long-term financing, which could include the sale of certificates of participation, a municipal financing tool much like bonds, for capital improvement projects.
Since 1985, chemical contamination has forced the closure of 5 of 11 wells that supply most of the city’s water. Pipes in the system also are rusted and are too small to carry an adequate supply, according to engineering studies.
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