Water Rate Increase
3rd March 2020
5% Inside Water rates increased by $1.48 per month or $2.96 bi-monthly on the minimum and $0.24 bi-monthly on 100 cubic feet. Yearly rate increase on the minimum- $17.76
5% Outside Water rates increased by $1.81 per month or $3.61 bi-monthly on the minimum and $0.32 bi-monthly on 100 cubic feet. Yearly rate increase on the minimum increase $21.66
In 2018 the Ohio EPA required all public water systems to create a water asset management plan by December 31, 2019. The cost for this new mandated regulations was $20,000 but the Village did get $10,000 taken off from a loan forgiveness program through the EPA. The Village hired Julie Ward from RCAP to establish this asset management plan. In her efforts it was required to increase the water rates by 5% instead of the standard of 3.5% established by Resolution 2008-31. The asset management plan was approved by Village Council in August 2019 and confirmed by council during the February 18, 2020 council meeting to enact the rate increase of 5%. The 5% rate increase will be in affect through 2025 unless the asset management plant yearly review changes the rate. Below is a piece of the Asset Management Plan Financial Capacity Need:
FINANCIAL CAPACITY - Revenue Sufficiency Needs: Completed rate model using above targets and recognizing the impact of inflation (3%). In order to have sufficient revenue to implement the plan, the Village needs to have a 5% rate adjustment to both minimums and usage charges from 2020 through 2025. In 2026, rate increases can go back to the 3.5% automatic annual adjustments. The above constitutes an increase of around $30.00 annually - $5.00 bi-monthly billing if using around 4,500 gallons per month (9,000 bi-monthly). Estimated usage per month per residential unit is around 2,500 gallons (5,000 bi-monthly). Current bill for these users is around $411 annually. Above recommendations increase costs around $20 a year ($3.33 bi-monthly billing). If using average (5,000 bi-monthly), combined rates would equal around 2.37% of MHI.
Attached is the full asset management plan for the public's review. This documents took nearly a year to complete and for the health and safety of the residents. This plan will assure the Village water services is sufficiency funded to take care of all replacement, repairs, and operational cost.
Roseville's Asset Management Plan