Wastewater Rates & Info

For current rates please see the Current Rate Schedule (PDF). For future scheduled increases, please see the Adopted Rates (PDF).

The residential wastewater charge is based on the average measured volume of water consumption for the three consecutive low water usage months between the months of November and April. The three low water usage months are determined annually based on the total water consumption of all customers. The charge is adjusted during the month of July each year. For new customers without a winter average in the home, the single-family rate assumes a winter average of 8 HCF, and multi-family rate assumes a winter average of 4 HCF.

You may email Utility Billing Division for a review of the wastewater charge assessed on your account.

For non-residential customers the wastewater volume charge is based on actual monthly water consumption.

The City Council adopted new wastewater rates in 2024.

Rate Study

The City of Morgan Hill engaged NBS Government Finance Group to develop a sustainable wastewater utility financial plan and make recommendations on rate changes necessary to meet ongoing operational and maintenance needs of the City’s aging sewer infrastructure. For years, the City was able to effectively maintain the sewer infrastructure without significant rate increases. However, it is now necessary for the City to make the legally required upgrades to the existing system to prevent any significant malfunctions/failures in the future.

Resources

Process

The City conducts a thorough and transparent public process prior to implementing any rate adjustments. The rate study and the financial analysis has been prepared by the independent financial consultant (NBS) to determine true costs of service and what rate adjustments are needed. 

Background

In 2017, the City Council approved a Sewer System Master Plan for future repairs and improvements to the City’s wastewater system. The Master Plan identified $57 million in expansion and capacity related improvement projects (impact fee funded) and $52 million in improvements necessary to repair the City’s existing system (ratepayer funded). City staff have determined the impact fee funded projects can likely be funded through the projected impact fees and/or financed through bonding against future impact fees. However, staff have identified a significant shortage in funding to make the needed repairs and improvements to the existing system, which is the primary factor in moving forward with a rate study.  

Wastewater System

The City’s sewer system connects to the South County Regional Wastewater Authority facility in Gilroy. This facility is jointly owned by the cities of Gilroy and Morgan Hill.