Environmental Services
Water/Sewer Rate Study
 | Background |
| Why Conduct a Water/Sewer Rate Study? |
| Objectives of the Study |
| Rate and Fee Options |
| Public Process Summary |
| Citizen Group Recommendation |
Background
Arlington County is proposing to conduct a study of water and sewer rates, to provide a model for future rate structures for water and sewer charges. In Arlington County, the fund that supports water and sewer services is called the Utilities Fund. The Utilities Fund supports drinking water delivery, sanitary sewer removal, and wastewater treatment systems. Costs and revenues from operations, maintenance, and capital are included in this fund.
Currently, residential customers are billed on a quarterly basis, and commercial customers are billed on a monthly basis. There are approximately 36,000 accounts, including 34,000 residential customers and 2,000 commerical customers. The current rates are determined through a calculation of budgeted costs, fees, and debt service and applied equally to all customers.
Why Conduct a Water/Sewer Rate Study?
There are several reasons why the County has decided to conduct a water/sewer rate study. These reasons include:
- to accurately identify costs and address equity issues in allocating costs,
- to anticipate funding needs for major capital projects,
- to provide funding for unforeseen events and other potential emergencies,
- to stabilize the Utility Fund revenue and the water/sewer rate, and
- to help promote water conservation.
Objectives of the Study
There are several goals of the planned water/sewer rate study. These goals include:
- to create a computer model to test the effects of variations in inputs to the Utilities Fund,
- to design optimal fee structures to fund the Utilities Fund,
- to provide a fiscally sound plan that anticipates adequate funding for potential emergencies,
- to provide for level rate-growth with major capital projects,
- to research fee structures that equitably distribute costs to classes of water and wastewater customers,
- to maintain rates that are compeitive with surrounding jurisdictions, and
- to create a fee structure that is satisfactory to Arlington County businesses and residents.
Rate and Fee Options
There are many types of fee structures that might be considered in the study. There are different methods for calculating water/sewer rates based on consumption, and other types of fees that could be employed.
Consumption Methodology Options
- Inverted Block (conservation) - efficient use of water resources are rewarded.
- Declining Block - as consumption increases, the prices decreases.
Fee Options
- Flat fee - One flat fee per class, no matter the size or occupancy of the location.
- Seasonal Usage fee - Half year residents create an unpredictable demand and limited cost-recovery for system.
- Hook-up fees - Charge for access to water by meter size, occupancy, new construction, existing customer base, etc.
- Meter testing fees - Requests to check potentially faulty meters are costly, with a low margin of meters actually testing faulty.
- Peak usage fees - Peaks in usage during certain times of the day can stress the system.
- Fire protection fees - Cost to consumers for fire protection services.
- Irrigation fees - lawn and garden watering
- Shut off/turn on fees - Delinquent account shut-offs inhibit cash flow and impact operating budgets. Water that continues in this status creates fee increases throughout the system.
- Returned check fee
- Late payment fees
- Illegal water usage fees
- Emergency water turn-on/off fees
Public Process Summary
Below is a summary of the outreach that was done about the water/sewer rate study:
- Web site created in July, 2003;
- Citizen advisory group formed in July, 2003 (consisting of two members of Fiscal Affairs Advisory Commission, and two members of Energy and Environment Conservation Comission);
- “Introduction to Rate-Setting” workshops conducted in July, 2003 for staff and citizen advisory group;
- Conducted presentations at community group meetings (Environment and Energy Conservation Commission, Arlingtonians for a Clean Environment, Fiscal Affairs Advisory Commission, Chamber of Commerce (12/03), Civic Federation (1/06));
- A bill insert has been created that will be mailed to all 36,000 utility customers during the months of November, December and January about the study.
- Ran advertisements about the upcoming Water/Sewer Rate Study Public Information Meetings in The Connection (1 ad), The Washington Post (1 ad), and the Journal (3 ads), two weeks in advance of the meetings;
- Public Information Meeting announcement was posted on the County web page calendar, and was sent to community calendars at Civic Federation, Connection Newspapers, Washington Post, Sun Gazette, Parent Weekly, and Washington City Paper;
- Flyer about the Public Information Meetings was emailed to all Civic Association and Condo associations in October, 2003, and to the staff representative for the Economic Development Commission;
- Flyers about the Public Information Meetings were distributed at two events (Compost bin sale, 100 distributed; Environmental Extravaganza, 500 distributed);
- Announcement about the Public Information Meetings was also distributed via other email listservs.
- Held two public information meetings, on 11/5/03 and 11/10/03;
- A special session took place to present information about the study to the Northern Virginia Apartment Association (NVAA) and the Apartment and Office Building Association (AOBA);
- Citizens can submit comments online, via phone (leave a message), via email, or by mailing in comment forms.
Citizen Group Recommendation
On January 20th, the Citizen group delivered a recommendation to the County Manager regarding the Water/Sewer Rate Study. Read the citizen task force's recommendation on the Water/Sewer Rate Study.
If you would like more information on the water/sewer rate study, please email Bob Mace.
