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HomeMy WebLinkAbout2023 Rate Increase Notice - Residential Sewer Service Dear Customer, As part of the annual budget adoption process completed in June 2022, the Otay Water District (District) approved an overall sewer-rate increase of 4.5 percent for calendar year 2023. With this rate increase, the typical District residential sewer customer will see their bill increase by $3.95 due to the increase in rates and 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, 2023. Depending on your billing cycle, the new rates and charges will apply to sewer service as early as the beginning of December 2022. This letter serves as a 30-day notice of rate increases. Pursuant to Government Code Section 53759, there is a 120-day statute of limitations for any legal action challenging any new, increased, or extended sewer fee or charge. 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 revenue-neutral public agency. Your sewer bill reflects only those charges sufficient to support your sewer service. To continue providing sewer service, the District must adjust its rates, fees, and charges for service, and pass-through costs from the District’s power, treatment, and disposal providers to its customers that reflect the full cost of providing the service. 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. This year, the increase is a direct result of ongoing shared operation, maintenance, and capital improvement cost increases by the County, and the District’s funding of a rate-stabilization reserve to strengthen its ability to meet its debt covenant requirements. 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 2023 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 $115.62. This is calculated using the maximum winter average consumption of 35.29 HCF. Current New Sewer Rate (per unit) $3.11 $3.25 Fixed System Charges (monthly) $17.37 $18.13 The District uses the customer’s three-year winter average in determining the sewer service bill. 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. New customers will have a winter average of 11.1 HCF1 until a winter average can be established. A 15 percent 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 Average2 x 85%3) + System Charges = Total Monthly Bill The monthly fixed sewer system charge for the average residential customer based on 85 percent of the applicable three-year winter average is shown in the table below. From the current year, which represents the average monthly charge in 2022, to the new charge effective January 1, 2023, the overall average monthly sewer charge has increased 8.8 percent. Sewer Rate 3-Year Winter Average2 System Charges Total Current $3.11 10.4 $17.37 $44.86 New $3.25 11.1 $18.13 $48.81 1. A typical single-family residential sewer customer’s bill is based on 9.44 HCF of water (11.1 HCF x 85%), where one HCF equals 748 gallons or one unit of water. The 15 percent discount is an acknowledgement that not all water purchased goes to the sewer system. 2. 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. 3. A 15 percent 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 Units1 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.