2011 Cost of Service Study

The entire presentation package is available beneath this group of selected slides. Explanations of the slides are noted where needed.

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Debt Service is on leases associated with Wastewater equipment, upgrades and State Revolving Fund Loans.

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Rate class (residential-inside the city, residential-outside the city, commercial-inside the city, commercial-outside the city).

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This slide illustrates the additional revenue realized by collection of the surcharge by rate class (residential-inside the city, residential-outside the city, commercial-inside the city, commercial-outside the city). While the surcharge significantly improved our ability to cover costs residentially, it didn't do enough to impact the commercial rate class.

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(Click this slide to see a larger view.) Note: The usage numbers refer to thousands of gallons.

To calculate individual water/sewer charges under the proposed rate schedule above, refer to your current water bill to see your actual gallons used. Currently, there is a minimum usage amount of 2000 gallons, which is included in the base rate. Under the proposed rate schedule, the first 2,000 gallons will no longer be included in the base rate. Each household will pay for the exact amount of water/sewage used. The chart above shows the average water/sewage usage as 5,617 gallons. Your average may be different depending on the size of your family, if you water the lawn, etc. Refer to your current bill to see what your average is and you will be able to determine what your new rate will be.

Examples:

If you only use 2,000 gallons of water a month, you would pay the cost of service (or base rate) of $11.00 and $2.55 for each 1,000 gallons = $5.10 for a total of $16.10 (a savings of $2.40 over the current rates). The daily rate for this level of usage is $0.54.

If you use 4,000 gallons of water a month, you would pay the cost of service (or base rate) of $11.00 and $2.55 per each 1,000 gallons = 10.20 for a total of $21.20 (a savings of $1.30 over the current rates). The daily rate for this level of usage is $0.71.

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(Click this slide to see a larger view.) Note: The usage numbers refer to thousands of gallons.

The cost of service (or base rate) for the commercial-inside (the city limits) class rate is $18.00. Usage is charged at $3.20 per 1,000 gallons. Average usage was determined to be 21,071 gallons.

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This slide shows base rate (cost of service) and the charge for 1,000 gallons for each class rate.

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Compare this slide to slide 7 to see that the proposed rate schedule has each class rate paying their fair share (based on actual usage).

 

Complete Presentation Package



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