HomeMy WebLinkAbout2017 Rate Increase Notice - Residential Sewer ServiceNOTICE OF SEWER RATES AND CHARGES EFFECTIVE
FOR SEWER SERVICE BILLED IN JANUARY 2017
Dear Customer,
An overall average rate increase of 3.0 percent was approved by the Otay Water District (the
“District”) as part of the annual budget adoption process completed in May, 2016. The District also
authorized the discontinuance of the monthly system fee recapture, which was part of a 2013 Cost of
Service study. With implementation of the rate increase, and the discontinuance of the system fee
recapture, the average customer using 11 units of water will have a decrease of 18 cents per month
effective January 1, 2017. The new sewer rates and charges will apply to service billed beginning
January 1, 2017 and, depending on your billing cycle, will apply to service as early as the
beginning of December, 2016. This letter provides a 30-day notice of rate increases.
The implementation of the 2013 Cost of Service study was phased-in over a three-year period. The
phase-in resulted in an initial shortfall in overall Monthly System Fees collected. That shortfall was
recaptured in calendar years 2014, 2015, and 2016. Recapture of the monthly system fees ends this
year.
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 for service, implement certain rate increases, and pass-through costs from the District’s
treatment and disposal providers (including but not limited to the County of San Diego and the City of
San Diego) to its customers that reflect the full cost of providing the service. Such 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.
On September 4, 2013, the District
adopted a five-year schedule of rates in
compliance with applicable provisions of
law. This sewer rate increase is within
the limits approved in the five-year
schedule of rates.
For its part, 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
Otay Water District, please visit
www.otaywater.gov or contact us via
email at info@otaywater.gov.
Otay Water District
2554 Sweetwater Springs Blvd.
Spring Valley, CA 91978-2004
619-670-2222
www.otaywater.gov Notice of Residential
Sewer Rate Increase
Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222.
Dedicated to Community Service
PROJECTED AVERAGE SEWER BILLS BY
AGENCY EFFECTIVE FY 2017
*Otay’s estimate using
average rate increase
The District uses the customer’s winter average consumption in determining the Sewer Service bill (“Winter Average”). The winter average is defined as the units2 of water billed from
January through April of the previous year divided by four. New customers will have a winter average of 11 HCF2 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.
Residential Sewer Service Bill Calculation
The monthly sewer service charge for the average residential customer based on water
meter and 9.35 HCF of water (11 HCF - 1.65 HCF), which is 85% of the winter average is as
follows:
The maximum sewer bill is $81.68. This is calculated using the maximum consumption of
30 HCF, which has already been reduced by the 15 percent discount.
Usage Fee Winter Average System Fee Total
Current $2.46 9.35 $17.19 $40.19
New $2.58 9.35 $15.891 $40.01
(Winter Average x 85% x Usage Fee) + System Fee = Sewer Service bill
This information reflects only changes to rates. For a comprehensive listing of rates, please
see the Otay Water District’s Code of Ordinances at www.otaywater.gov.
Si requiere asistencia en español con referencia a esta notificación, favor de llamar al 619-670-2222.
1 In September 2013, the District approved a three-year phase-in of the Monthly System Fee.
The phase-in resulted in a shortfall in 2014 to be recaptured through calendar years 2014, 2015, and 2016. The recapture fee will be discontinued beginning January 1, 2017. 2 One hundred cubic feet (HFC) equals 748 gallons or one “unit” of water.
Rates and Fees
Current New
Usage Fee 2.46 2.58
System Fee 17.19 15.89 (1)
Footnotes
Average Bill using 11 HCF (or Units)2 of Water per Month