|
New Sewer Rate Established
On July 20th, after seeking citizen input regarding the sewer rate increase at three public hearings announced in the Township newsletter, the Board of Trustees voted to approve rate increase Option #2 in the tables below.
The new rates will become effective on August 1, 2010 and will be reflected on October sewer bills.
The Board of Trustees would like to thank the citizens who took the time to provide feedback to us with calls, emails, and by attending the public hearings.
Why Raise Sewer Rates?
There are several reasons for the need for a sewer rate increase. The most significant one is the doubling of costs to treat wastewater at Swansea’s newly improved treatment plant. Swansea had to enlarge their treatment plant due to population increases and EPA requirements. Other factors that require a rate increase are a decrease in interest earned on investments, a decrease in tap-in fees, a decrease in revenues from user fees, and a decrease in our reserve fund due to using it for several years to hold down sewer rates.
We have cut annual spending but we could not cut enough to offset the doubling of fees paid to Swansea and the loss of revenues from multiple sources.
We are in negotiations with Swansea regarding the new fee we will pay them to treat our wastewater. Since we do not know the exact fee we will be paying Swansea or the exact amount of back expense we will owe them, we had to estimate those amounts in our fee increase. Depending on the final outcome of the negotiations, our sewer rates may have to be increased or decreased at that time. We could not wait to increase the rates because new expenses are adding up daily.
The tables below show the rate options that the Board of Trustees considered. The Board voted to approve Option #2.
For a detailed look at the “Sewer Rate Evaluation” conducted by our engineer, please click on the link below the tables.
|
Table 1
|
|
Sewer Rate Increase Options
|
|
|
|
New Rate Options
|
|
Charge based on water usage
|
Current Rate
|
#1
|
#2
|
#3
|
|
Two month minimum charge for up to and including 4,000 gallons
|
$17.26
|
$28.68
|
$24.66
|
$20.14
|
|
***Cost per each 1,000 gallons over 4,000 gallons
|
$2.55
|
$4.27
|
$5.07
|
$5.96
|
|
|
|
|
|
|
|
Sample home using 12,000 gallons of water in two months
|
|
|
|
|
|
Cost for first 4,000 gal.
|
$17.26
|
$28.68
|
$24.66
|
$20.14
|
|
Cost for next 8,000 gal.
|
$20.40
|
$34.16
|
$40.56
|
$47.68
|
|
Total Cost
|
$37.66
|
$62.84
|
$65.22
|
$67.82
|
|
|
|
|
|
|
|
*** To obtain the cost per gallon, divide the rate by 1,000.
|
|
Example - The cost per gallon at a rate of $4.27 for 1,000 gallons would be $0.00427($4.27/1,000).
|
|
Table 2
|
|
Gallons Used Versus Cost (2 months)
|
|
Type
|
Gallons
|
Current
|
|
New Options
|
|
|
|
|
|
#1
|
#2
|
#3
|
***#4
|
|
Residential
|
0
|
$17.26
|
|
$28.68
|
$24.66
|
$20.14
|
$0.00
|
|
Residential
|
2,000
|
$17.26
|
|
$28.68
|
$24.66
|
$20.14
|
$11.82
|
|
Residential
|
4,000
|
$17.26
|
|
$28.68
|
$24.66
|
$20.14
|
$23.64
|
|
Residential
|
6,000
|
$22.36
|
|
$37.22
|
$34.80
|
$32.06
|
$35.46
|
|
Residential
|
9,000
|
$30.01
|
|
$50.03
|
$50.01
|
$49.94
|
$53.19
|
|
Residential
|
10,000
|
$32.56
|
|
$54.30
|
$55.08
|
$55.90
|
$59.10
|
|
Residential
|
12,000
|
$37.66
|
|
$62.84
|
$65.22
|
$67.82
|
$70.92
|
|
Residential
|
16,000
|
$47.86
|
|
$79.92
|
$85.50
|
$91.66
|
$94.56
|
|
Residential
|
20,000
|
$58.06
|
|
$97.00
|
$105.78
|
$115.50
|
$118.20
|
|
|
|
|
|
|
|
|
|
|
Small Commercial
|
250,000
|
$644.56
|
|
$1,079.10
|
$1,271.88
|
$1,486.30
|
$1,477.50
|
|
Large Commercial
|
1,000,000
|
$2,557.06
|
|
$4,281.60
|
$5,074.38
|
$5,956.30
|
$5,910.00
|
|
|
|
|
|
|
|
|
|
|
*** #4 charges $5.91 per 1,000 gallons with no minimum.
|
|
|
Table 3
|
|
Percent Increase Over Current (2 months)
|
|
Type
|
Gallons
|
New Options
|
|
|
|
#1
|
#2
|
#3
|
***#4
|
|
Residential
|
0
|
66%
|
43%
|
17%
|
-100%
|
|
Residential
|
2,000
|
66%
|
43%
|
17%
|
-32%
|
|
Residential
|
4,000
|
66%
|
43%
|
17%
|
37%
|
|
Residential
|
6,000
|
66%
|
56%
|
43%
|
59%
|
|
Residential
|
9,000
|
67%
|
67%
|
66%
|
77%
|
|
Residential
|
10,000
|
67%
|
69%
|
72%
|
82%
|
|
Residential
|
12,000
|
67%
|
73%
|
80%
|
88%
|
|
Residential
|
16,000
|
67%
|
79%
|
92%
|
98%
|
|
Residential
|
20,000
|
67%
|
82%
|
99%
|
104%
|
|
|
|
|
|
|
|
|
Small Commercial
|
250,000
|
67%
|
97%
|
131%
|
129%
|
|
Large Commercial
|
1,000,000
|
67%
|
98%
|
133%
|
131%
|
|
|
|
|
|
|
|
|
*** #4 charges $5.91 per 1,000 gallons with no minimum.
|
Sewer Rate Evaluation
|