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HomeMy WebLinkAbout2024 Rate Increase Notice - Multi-Residential Sewer Service 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 619-670-2222 otaywater.gov Notice of Multi-Residential Sewer Rate Increase NOTICE OF SEWER RATES, FEES, AND CHARGES EFFECTIVE FOR SEWER SERVICE BILLED IN JANUARY 2024 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. 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. Dedicated to Community Service To estimate sewer use, the District averages metered water use for the winter months of January through April of the prior three years. The three-year winter average is the basis of the sewer charges for the following year. The winter months are the best time to average water use because less water is used outdoors and most of the water used flows to the sewer system. The District gives customers a 15% usage discount to acknowledge that not all water purchased goes to the sewer system. The following is the sewer bill formula for multi-residential customers: 1. 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. 2. A 15% discount is an acknowledgement that not all water purchased goes to the sewer system. 3. Based on the size of the water meter. 4. 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. his information reflects only rates, fees, and charges that are proposed to change. For a comprehensive listing of rates, System Charges (monthly) Meter Size Current New .75” $18.13 $18.99 1” $45.30 $47.45 1.5” $90.58 $94.88 2” $144.92 $151.80 3” $271.74 $284.65 4” $452.90 $474.41 6” $905.79 $948.82 8” $1,449.29 $1,518.13 10” $2,083.35 $2,182.31 Sewer Rate (per unit) Current New Sewer Rate $3.25 $3.40 Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222. Multi-Residential Sewer Service Bill Calculation (Sewer Rate x 3-Year Winter Average1 x 85%2) + System Charges3 = Total Monthly Bill4 Rates and Charges Footnotes This information reflects only changes to rates. For a comprehensive listing, please see the Otay Water District’s Code of Ordinances at otaywater.gov.