Sewer Rate Notice

 

Sept 14, 2017

  Village of White City Sewer Users

Notice of User Rate Adjustments

 Effective October 1, 2017 sewer user rates have been adjusted to reflect the actual cost of operations of White City’s sewer system. On August 9, 2017, the Village Board of White City passed Ordinance 364 amending sewer user rates.

The last sewer rate adjustment was in 2010 by way of Ordinance 214. The rate increase at that time was in the form of a surcharge totaling $ 7.00 per user in addition to the $20.00 user minimum charge already in place. This made the effective minimum base user charge of $ 27.00/month. The minimum charge is based on the first 1000 gals. of metered water usage with an additional charge of $ 1.75/ 1000 gals thereafter.

Beginning with your next regular bill for October 1, 2017, the new basic user sewer charge will be $ 35.00/ month. You will no longer see a line item on your bill for the $ 7.00 surcharge and your new bills will only reflect the new minimum user charge. The actual effective rate increase per user will be $ 8.00 per month. The user charge for usage over 1000 gallons will remain at $ 1.75/ 1000 gal.

The Board understands that no one likes to see increases. For several years our sewer operations have been operating in the red and after months reviewing the cost associated with operating our sewer system and the environmental requirements we must meet in maintaining our sewer system, we had no other options. An explanation of the factors that went into this adjustment are attached.

 

Factors Considered for Sewer User Rate Adjustment

 White City’s sewer system is funded by user charges only. There are currently 85 users on our sewer system. By law, the basic fixed costs to operate the system must be spread equally among the total number of users. Each year, if the number of users increases or decreases, the fixed costs will be spread among all users. No tax monies can be used to fund the sewer operations only user charges.

The current increase in rates is only attributed to the fixed costs of operating the system as well as paying the debt via bonds and interest due each year. We are required to re-evaluate the cost of operating the sewer system every year. This process of evaluation has not been done consistently the past few years. Unfortunately, this has caused us to have to make a rather significant increase this year. To give some perspective, if rates had been adjusted at a minimal rate of 3% yearly since installation of the sewer system in 1997, we would already be at the basic level of charges we are at now. The current increase is only the third increase since 1997.

The current fixed costs for sewer operations are as follows:

REQUIRED FUNDS

 LOAN PRICIPAL FUND                $    6000.00

LOAN INTEREST FUND               $    8595.00

RESERVE FUND                            $    1600.00

DEPRECIATION FUND                $    5000.00

$ 21,195.00 

 OPERATING EXPENSES

 SEWER OPERATOR

SALARY                                           $    2100.00

NPDES PERMIT                              $      500.00

ELECTRIC UTILITIES                 $    7200.00

SAMPLE TESTING                        $    2100.00

INSURANCE                                    $    2700.00

OFFICE SUPPLIES                         $      500.00

$ 15,100.00

 

TOTAL FIXED COST                     $ 36.295.00

 

These costs will be re-evaluated yearly and each year all users will be notified with the actual costs associated with sewer operations.

 

 

 

 

 

 

 

 

 

 

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