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HomeMy WebLinkAbout2020 Rate Increase Notice - Residential Sewer Service Dear Customer, A rate increase of 8.9 percent was approved by the Otay Water District (District) as part of the annual budget adoption process completed in June 2019. With this rate increase the typical District residential sewer customer will see their bill decrease by $5.71 due to the reduction in winter average consumption (winter average) water usage (see the average bill calculation on the reverse side). The new sewer rates, fees, and charges will apply to service billed beginning January 1, 2020. Depending on your billing cycle, the new rates and charges will apply to sewer service as early as the beginning of December 2019. This letter serves as a 30-day notice of rate increases. On October 3, 2018, the District’s Board of Directors adopted a five-year schedule of 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 and the City of San Diego (City). This year, the increase is a direct result of higher treatment fees from the City, as well as, replacing the District’s aging sewer infrastructure. The increase in the City’s fee is due to its plan to develop a Pure Water treatment facility to satisfy state and federal law. 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 lowest 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 2020 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 109.49 82.33 72.91 71.76 71.32 71.09 71.05 69.92 67.12 58.71 56.86 56.17 55.97 55.25 52.74 51.90 51.59 50.88 48.75 48.20 48.13 47.90 40.47 38.68 38.58 37.80 28.92 28.64 $- $20 $40 $60 $80 $100 $120 Del Mar *Rancho Santa Fe Encinitas Olivenhain *Oceanside Fallbrook Rainbow Padre Dam Ramona *Valley Center - MG Solana Beach Vista Escondido Buena Imperial Beach *Poway Lemon Grove La Mesa Coronado, City Chula Vista *San Diego, City *El Cajon Vallecitos National City San Diego, County Otay Water District *Carlsbad Leucadia PROJECTED AVERAGE SEWER BILLS BY AGENCY EFFECTIVE FY 2020 Otay's estimated average bill * At the time of the survey in July 2019, the member agency's FY 2020 rate was unavailable. The estimated increase is based on the other agency's FY 2020 known rate increases. The maximum sewer bill is $104.27. This is calculated using the maximum winter average consumption of 35.29 HCF. Prior Current New Sewer Rate (per unit) $2.77 $2.67 $2.93 Fixed System Charges (monthly) $17.08 $14.91 $16.38 The District uses the customer’s winter average in determining the Sewer Service bill. The winter average is defined as the units1 of water billed from January through April of the previous year divided by four. New customers will have a winter average of 8.6 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 Winter Average2 x 85%3) + System Charges = Total Monthly Bill The monthly fixed sewer system charge for the average residential customer based on 85% of the applicable year’s winter average is in the table below. From the prior year, which represents the average monthly charge in 2018, to the new charge effective January 1, 2020. The overall average monthly sewer charge has decreased 4.2 percent. Sewer Rate Winter Average4 System Charges Total Prior $2.77 9.5 $17.08 $39.45 Current $2.67 12.6 $14.91 $43.51 New $2.93 8.6 $16.38 $37.80 The maximum sewer bill is $104.27. This is calculated using the maximum winter average consumption of 35.29 HCF. 1. One hundred cubic feet (HCF) equals 748 gallons or one “unit” of water. 2. The winter average is defined as the units of water billed from January through April of the previous year 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. 4. The winter average represents the actual monthly average for all residential users from January through April of the previous year. 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.