South San Francisco is all set to increase its sewer rates by 3% this upcoming fiscal year, which begins next month.
The changes are part of a five-year plan, which started in fiscal year 2022-23, to gradually increase the rates between 2% to 3% each year. Currently, single-unit residential homes pay $791 annually, which will soon increase to $815 and eventually $864 by 2026-27. Multiunit residential buildings will soon pay $734 per unit, up to $778 by 2026-27.
The funds go toward the operation and maintenance of its 165 miles of sewer lines, 13 major pumping stations and 72-year-old wastewater treatment plan, which is also shared with San Bruno.
The city’s rate falls toward the bottom of the list compared to other jurisdictions in the county. Only a few, including Burlingame, East Palo Alto and Daly City, have lower costs. Brian Schumacker, water quality control plant superintendent, said there are a few reasons why South City is able to prevent sharper increases.
“Some of the things that we’re working hard to do to keep rates low has to do with our current state revolving fund … [which] has a very low interest rate, and in addition to that low-interest rate, we are also to get a $4 million offset of loan principal forgiveness because of some of the technologies that we put in at the plant that staff studied and recommended,” Schumacker said, citing several green technology and energy efficiency improvements.
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A little over $16 million in developer impact fees has also helped offset the costs, he added.
While there had been previous discussions of pausing the rate increases for at least a year, Schumacker noted the new rates would be necessary to fund much-needed infrastructure improvements and projects in the future.
“Many of the pipes that are underground are getting up to be 80 to 100 years old. Some of those were identified as needing replacement, so as we look forward to the next five to 10 years, some additional infrastructure investments will need to be made in underground piping, continuing the upkeep of our current plan [and] sea-level rise protection,” Schumacker said.
Additional regulations from the Environmental Protection Agency are also mandating upgrades to all 42 of the area’s wastewater treatment plants, specifically nutrient removal to help with harmful algae blooms in the San Francisco Bay.
City staff also noted they are looking to increase participation in the city’s sewer rebate program, which helps qualified households that may be cost-burdened. Several other cities, including Belmont and San Carlos, have recently discussed — or passed — such increases.
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