Wastewater Rate Adjustment Q & A

What exactly is wastewater?

Wastewater (or sewage) is just as it sounds; any water that has been adversely affected in quality by everyday human wastes. Used water from toilets, showers, baths, kitchen sinks, laundries, and industrial processes is known as wastewater.

Why do we need wastewater?

The ability to treat wastewater is critical to the health and safety of residents.

Wastewater treatments systems prohibit the release of raw sewage into the environment and prevent the spread of deadly bacteria.

Why is my wastewater bill going up?

The cost of providing wastewater service that complies with state and federal requirements has been steadily increasing over the past several years.

Rates are being adjusted strictly to keep up with the cost to operate and maintain the wastewater system. Costs for power, personnel and chemicals have increased dramatically in recent years and the result is a projected deficit of about 8-10 million dollars in the wastewater enterprise fund at the end of this fiscal year. An increase is needed for the wastewater system to continue to operate at a high level and have the ability to “break even.”

The table below shows what a typical homeowner will pay for wastewater service on a monthly basis, assuming they use an average of 6500 gallons per month. The table also shows the maximum bill a homeowner would pay, as the City caps its wastewater billing at 14,000 gallons per month.

Doesn’t the City already have a built-in rate adjustment to cover these types of rising costs?

Although the City currently has an annual rate adjustment of 2.5%to account for inflation, this adjustment has proven to be inadequate to cover system’s rising expenses.

What does this rate change mean for residents?

The average resident is going to see an increase of about three to four dollars per month. Over the course of the next 3 years their bill will increase about ten dollars per month.

When will these rates go up?

Beginning in August, OUC customers will receive a mailer in their bills notifying them of plans to adjust rates for wastewater services.

The Orlando City Council will hold a public hearing on the proposed rate changes -- 2:00 pm on September 21st in City council chambers.

The rate change is scheduled to take effect on October 1st.

How were these rate changes calculated?

The City conducted a rate study with the help of outside consultants. Raftelis Financial Consultants, Inc. determined an increase to the wastewater capacity and commodity charges would be necessary to ensure the financial health of the wastewater program.

The rate changes shown are for five years. Why is this?

The outside experts determined this plan of a long range series of rate adjustment was necessary, not only to keep up with rising costs, but also to ensure necessary rehabilitation work could take place on wastewater infrastructure.

Raftelis recommends the City adopt a series of supplemental increases over the next 3 years to correct the wastewater fund budget deficit and start building reserves. The current wastewater system was installed in the early 1980’s. It’s anticipated that rehabilitation work will be necessary within the next five years.

How much did the City pay the consultants to conduct this analysis?

The cost of the study was $79,800.

You used the term “Wastewater Enterprise Fund.” What does this mean?

The wastewater system is self-supporting based on fees charged to those who use the wastewater services. Simply put, only wastewater users pay to operate and maintain the system. No general fund tax dollars go to pay for the wastewater system.

Is this fee increase being done to recoup/offset money for the general fund that the City is not receiving because the tax rate is not being raised?

Absolutely not. Wastewater fees collected can only go to pay for the wastewater system.

When was the last time the City raised wastewater rates?

The last time the City raised rates was in 2004.

Are these rates high? How does my wastewater rate here in Orlando compare with other cities?

These rates fall at about the mid-point compared to other rates paid in our region.

* After the proposed October increase

Where can I go for more information on wastewater?

The City has a page dedicated to wastewater on its website: http://www.cityoforlando.net/public_works/wastewater/index.htm

The City’s website also has an interactive wastewater presentation designed for kids and teachers that can be found here:
http://www.cityoforlando.net/public_works/wastewater/kids/page1.htm
 

City of Orlando: Wastewater Rate Adjustment
Additional Information
 

RESIDENTIAL RATES AS OF OCTOBER 1, 2009

Single Family (Inside City Limits)

Capacity Charge: $13.62 Commodity Charge: $3.28 per thousand gallons (14,000 gallons cap).

Single Family (Outside City Limits)

Capacity Charge: $17.02 Commodity Charge: $4.10 per thousand gallons (14,000 gallons cap).

Multiple Family Unit Flat Rates:
(Not all properties qualify for a flat rate contact Wastewater)

Inside City Limits:

One bedroom or efficiency : *$27.40 per unit
Two or more bedrooms: *$33.30 per unit
Miles Royal Palms – three bedrooms: $41.54 per unit

Outside City Limits:

One bedroom or efficiency: *$34.24 per unit
Two or more bedrooms: *$41.62 per unit

*Must be certified by property owner. Rates become effective upon completion of Certification with no retroactive credits allowed.

COMMERCIAL RATES AS OF OCTOBER 1, 2009: (Includes Commercial, Industrial, and Master Metered multiple family living units).

Inside City Limits: Twelve month moving average of water usage divided by 7000 gallons (result rounded to nearest .10) times $13.62 is the capacity charge, plus $3.28 times each thousand gallons of water usage on current bill. Minimum: $13.62 capacity charge.

Outside City Limits: Twelve month moving average of water usage divided by 7000 gallons (result rounded to nearest .10) times $17.02 is the capacity charge, plus $4.10 times each thousand gallons of water usage on current bill. Minimum: $17.02 capacity charge.