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HomeMy WebLinkAbout2024 Rate Increase Notice - Residential Sewer Service Dear Customer, As part of the annual budget adoption process completed in June 2023, the Otay Water District (District) approved a sewer-rate increase to proportionately recover the increasing costs of providing sewer service to the District’s customers. The District’s overall costs related to sewer service are increasing approximately 4.8% in 2024. With this rate increase, the typical District residential sewer customer will see their bill increase by $0.54 due to the increase in rates and a decrease in winter averages (see the average bill calculation on the reverse side). The new sewer rates, fees, and charges will apply to service billed beginning January 1, 2024. Depending on your billing cycle, the new rates and charges will apply to sewer service as early as the beginning of December 2023. This letter serves as a 30-day notice of rate increases. On October 7, 2020, the District’s Board of Directors adopted a five-year schedule of sewer rates in compliance with applicable provisions of law. This sewer-rate increase is within the limits of the approved five-year schedule of rates, fees, and charges. The District is a nonprofit public agency. As a nonprofit public agency, the District does not make a profit from providing sewer service, and it cannot operate at a loss. Sewer bills reflect only those rates, fees, and charges sufficient to support sewer service. To continue to provide reliable service, the District must implement and pass through to its customers the full cost of providing sewer service, including cost increases imposed by the District’s power, treatment, and disposal providers. Power is provided by San Diego Gas and Electric. Treatment and disposal providers include the County of San Diego (County) and the City of San Diego (City). This year, the increase is a direct result of ongoing District operation, maintenance, and capital improvement costs as well as increases in treatment costs charged by the City and the shared service costs for facilities operated by the County. The District’s costs include inspection and preventative maintenance of the public sewer system and replacement of aging sewer infrastructure. These actions protect the public’s investment in the public sewer system, minimize maintenance costs, reduce the possibility of pipeline breaks, blockages, or spills, and keep sewer rates affordable. The District works diligently to reduce internal costs and continues to be one of the lower cost sewer service providers in San Diego County. For more information about the District, please visit otaywater.gov, email info@otaywater.gov, or call 619-670-2222. Notice of Residential Sewer Rate Increase NOTICE OF SEWER RATES, FEES, AND CHARGES EFFECTIVE FOR SEWER SERVICE BILLED IN JANUARY 2024 Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. Otay Water District 2554 Sweetwater Springs Blvd. Spring Valley, CA 91978-2004 619-670-2222 otaywater.gov Dedicated to Community Service The maximum sewer bill is $120.99. This is calculated using the maximum winter average consumption of 35.29 HCF. Current New Sewer Rate (per unit) $3.25 $3.40 Fixed System Charges (monthly) $18.13 $18.99 The District uses the customer’s three-year winter average in determining the sewer service bill1. The three- year winter average is defined as the sum of the prior three years annual winter average divided by three. The annual winter average is defined as the units of water billed from January through April divided by four. New customers will have a winter average of 10.5 HCF2 (hundred cubic feet) until a winter average can be established. A 15% usage discount is applied to all sewer customers to acknowledge that not all water purchased goes to the sewer system. (Sewer Rate x 3-Year Winter Average3 x 85%4) + System Charges = Total Monthly Bill The monthly fixed sewer-system charge for the average residential customer based on 85% of the applicable three-year winter average is shown in the table below. From the current year, which represents the average monthly charge in 2023, to the new charge effective January 1, 2024, the overall average monthly sewer charge has increased 1.1%. Sewer Rate 3-Year Winter Average3 System Charges Total Current $3.25 11.1 $18.13 $48.81 New $3.40 10.5 $18.99 $49.35 1. The District’s total rate increase is 4.8%. Within this rate increase, 1.5% of the increase is increased charges passed through from the treatment providers and shared facilities. The remaining 3.3% of the rate increase is based upon increases to other District costs, including energy, labor, benefits, materials, sewer-system replacement, maintenance, operations, and supplies. This remaining amount is below the 10% for all other costs authorized at the Proposition 218 Hearing on October 7, 2020. 2. A typical single-family residential sewer customer’s bill is based on 8.93 HCF of water (10.5 HCF x 85%), where one HCF equals 748 gallons or one unit of water. The 15% discount is an acknowledgement that not all water purchased goes to the sewer system. 3. The three-year winter average is defined as the sum of prior three years annual winter average divided by three. The annual winter average is defined as the units of water billed from January through April divided by four. 4. A 15% usage discount is applied to all sewer customers to acknowledge that not all water purchased goes through the sewer system. This information reflects only changes to rates. For a comprehensive listing, please see the Otay Water District’s Code of Ordinances at otaywater.gov. Footnotes Average Monthly Bill using Winter Average Units2 Rates and Charges Residential Sewer Service Bill Calculation Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222.