LADWP SEWER SERVICE CHARGES WILL DOUBLE IN THE NEXT 4 YEARS!
On August 27th, 2024 the Los Angeles City Council approved 7 LADWP sewer service charge rate increases, effective fall, 2024. Click here for the details regarding these rate increases from 2024 to 2028.
Since 2020 LADWP sewer service charges have been $5.80 per unit of water and these sewer service charges are going to increase 7 times in the next 4 years!
In 2024 sewer service charges are $5.80 per unit of water and in 2028 sewer service charges will be $11.96 per unit of water – more than double the cost in just 4 years!!
What does that mean for association water and sewer budgets?
The average community is billed 5 – 10 units of water per living unit per month, depending upon the amount of common-area landscaping. Typically, high rise buildings or high density homes use 5 units of water per living unit per month, versus 10 units of water per living unit per month for communities with extensive slopes, landscaping, parks, etc. So for an average community with 100 living units and average common-area landscaping, that is approximately 700 HCF or units of water per month.
Prior to this first sewer service charge rate increase schedule for fall, 2024, the LADWP sewer service charges for this community would have been calculated at 700 HCF (units of water) x 93% (return-to-sewer factor) x $5.80 per HCF = $3,775.80 per month. After this fall, 2024 rate increase, the LADWP sewer service charges for this community will be calculated at 700 HCF (units of water ) x 93% (return-to-sewer factor) x $7.08 per HCF = $4,609.08 per month. This first sewer service charge rate increase represents a monthly increase of $833.25 for this average community!
The next sewer service charge increase is scheduled for March, 2025, then July, 2025, then January, 2026, then July, 2026, then July 2027 and finally July, 2028.
Using this same average community of 100 living units averaging a water consumption of 700 HCF per month, their annual sewer service charge in 2023 was $45,309,60. (700 HCF per month x 12 months = 8400 HCF per year x 93% = 7812 HCF billed per year x $5.80 per HCF = $45,309.60 annual total)
In 2025, their annual sewer service charges will be $66,245.76. (700 HCF per month x 12 months = 8400 HCF per year x 93% = 7812 HCFbilled per year x $8.48 per HCF) This represents an annual increase of $20,936.16 next year for this association!
In 2028, their annual sewer service charges will be $91,039.52 – DOUBLE what they paid for sewer service charges in 2024!!
When we conduct utility audits for our LADWP customers, we measure their property size, their landscape square footage, and then we inventory any equipment such as boilers, water features, pools, spas, cooling towers etc. that do not return water to the city sewer system, and any other site specific information pertaining to the city sewer system. We do this to determine if they qualify for any exemptions or reductions in sewer service charges. Many of these properties do indeed qualify, and we reduce their annual sewer service charges significantly!
What can you do about these sewer service charge rate increases?
1) Increase your 2025 water sewer budgets accordingly! (Take your community total annual water consumption (HCF) for 2024 and multiply it by 93%, and then multiply that number by $2.68, then add that dollar amount to the actual cost of sewer service charges for 2024 in order to determine the sewer service charge budget for 2025)
2) Discuss these sewer service charge rate increases with your boards, so they are aware of the reason for higher LADWP water/sewer utility bills during the next 4 years.
3) Contact us for a utility audit, whereby we can determine if your properties qualify for lower sewer service charges!