Subject:
Title
Intent to Adopt FY 2020-21 Water and Sewer Rates
Body
EXPLANATION AND SUMMARY:
Town water and sewer rates for consumption and service charges are modeled on results of a rate study conducted in FY 2017-18, which laid out a plan for five years to ensure the fund had adequate operating reserves and through which Council committed to increase investment in infrastructure for the good of the Town and its customers.
During the past fiscal year, we reviewed actual water and sewer consumption patterns by rate tier to ensure that budgeted rates for the third year of the study period were adequate; as a result, we made slight adjustments to both water and sewer rates. Water rates are proposed to increase 6.6 percent, and sewer rates are proposed to increase by 8.2 percent, based on actual billed experience by rate tier and lower sewer treatment costs than modeled. Fixed service charges are proposed to increase from $23 to $30, or by 30.4 percent, per quarter for residential customers. This increase is necessary to the Town's efforts to bring the total percent of fixed charges in line with industry standards. Commercial customer fixed charges also are proposed to increase by 30.4 percent based on meter size.
Overall, the average residential customer's bill is proposed to increase by $16.20 per quarter, or $64.80 annually, an increase of 10.0 percent.
Water availability and meter purchase fees are proposed to increase by 2.5 and 3.5 percent, respectively, to match fees charged by Fairfax County. Increase percentages are minimal and will have a small positive impact on revenue.
Consumption charges proposed for FY 2019-20 are as follows:
Residential Block Structure (Quarterly Basis)
Water Consumption Charge 0 - 9,000 gallons $5.65 per 1000 gals
9,001 - 18,000 gal $6.10 per 1000 gals
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