Manager Recommended Water Rates

Presented By: Ann Hardy, County Manager

Recommended Water Rate Changes in FY 2020 – Retail & Irrigation

• Recommendation for Retail Water Rates in FY 2020

• Encourage Customer Water Conservation
• Improve in the State Revolving Fund Ranking Criteria
• Revenue Neutral
• Retail Rate Changes - Reduce Rate Tier Block 1 Gallons from 6,000 to 5,000 &
Increase Tier Rate Differentials

Current Tiered Rates Recommended Tiered Rates

Retail Gallons Rate Differential Gallons Rate Differential
Block 1 0 - 6,000 3.05 - 0 - 5,000 2.85 -
Block 2 6,001 - 20,000 3.10 0.05 5,001 - 20,000 3.30 0.45
Block 3 > 20,000 3.15 0.05 > 20,000 3.85 0.55

Average Customer billed at 4,500 gallons decreases from $25.73 to $24.83

Customer billed at 6,000 gallons decreases from $30.30 to $29.55
Customer billed at 9,000 gallons increases from $39.30 to $39.45
Recommended Water Rate Changes in FY 2020 – Retail & Irrigation

• Irrigation rate changes - Reduce number of tiers from 5 to 3 with the Block 1
gallon reduction for residential retail customers from 6,000 gallons to 5,000
gallons and increase tiers rate differentials to encourage customer
conservation for all irrigation uses
Residential:
Current Tiered Rates Recommended Tiered Rates
Retail Gallons Rate Differential Gallons Rate Differential
Block 1 0 - 6,000 3.05 - 0 - 5,000 3.30 -
Block 2 6,001 - 12,000 3.25 0.20 5,001 - 20,000 4.30 1.00
Block 3 12,001 - 20,000 3.50 0.25 > 20,000 5.70 1.40
Block 4 20,001 - 50,000 4.00 0.50
Block 5 > 50,000 6.00 2.00

→ Residential customer billed at 6,000 gallons decreases from $18.30 to $20.80

Commercial (All Other Irrigation):

Current Tiered Rates Recommended Tiered Rates
Retail Gallons Rate Differential Gallons Rate Differential
Block 1 0 - 20,000 3.05 - 0 - 20,000 3.30 -
Block 2 20,001 - 50,000 3.25 0.20 20,001 - 100,000 4.30 1.00
Block 3 50,001 - 100,000 3.50 0.25 > 100,000 5.70 1.40
Block 4 100,001 - 200,000 4.00 0.50
Block 5 > 200,000 6.00 2.00
Recommended Water Rate Changes in FY 2022 – LPRO Complete
• Increase water base monthly service charge $3.00 per month for all retail
classes
• Increase water base monthly service charge $4.00 per month for 4" and 6"
meter (Wholesale/Industrial classes)
• Implement $5.00 monthly Irrigation base service charge to allocate additional
costs associated with billing, collection, and metering

• Recommend Resolution to Establish FY 2022 Retail Water Rates –

• Assists Citizens in Preparing
• Assists County in Planning
• Viewed Favorably by Local Government Commission & Bond Rating Agencies

• Comparison 2020 Recommended

includes 2022 - LPRO
Recommended Rate changes Complete
in 2020:
Retail Gallons Rate Differential Gallons Rate Differential
Block 1 0 - 5,000 2.85 - 0 - 5,000 3.10 -
Block 2 5,001 - 20,000 3.30 0.45 5,001 - 20,000 3.60 0.50
Block 3 > 20,000 3.85 0.55 > 20,000 4.20 0.60

Average Customer billed at 4,500 gallons increases $24.83 to $28.95

Recommended Water Rate Changes in FY 2022 – LPRO Complete

• Recommend Resolution to Establish Retail Irrigation Rates in FY 2022

• - Comparison includes Recommended Rate changes in 2020:
• Assists Citizens in Preparing
• Assists County in Planning
• Viewed Favorably by Local Government Commission & Bond Rating
Agencies

Residential:
2020 Recommended 2022 - LPRO Complete
Retail Gallons Rate Differential Gallons Rate Differential
Block 1 0 - 5,000 3.30 - 0 - 5,000 3.60 -
Block 2 5,001 - 20,000 4.30 1.00 5,001 - 20,000 4.65 1.05
Block 3 > 20,000 5.70 1.40 > 20,000 6.20 1.55

→ Residential customer billed at 6,000 gallons Increases from $20.80 to $27.65

Commercial (All Other Irrigation):

2020 Recommended 2022 - LPRO Complete
Retail Gallons Rate Differential Gallons Rate Differential
Block 1 0 - 20,000 3.30 - 0 - 20,000 3.60 -
Block 2 20,001 - 100,000 4.30 1.00 20,001 - 100,000 4.65 1.05
Block 3 > 100,000 5.70 1.40 > 100,000 6.20 1.55
 Recommended Water Rate Changes in FY 2022 – LPRO Complete

• Recommend Resolution to Establish Wholesale & Industrial Rates in FY 2022

• Assists Industries & Wholesale Customers in Preparing
• Assists County in Planning
• Viewed Favorably by Local Government Commission & Bond Rating Agencies

• Recommend to Increase Industrial Rate in FY 2022 from annual practice of PPI

determined rate and contracts to $3.30 per 1,000 gallons (change is $.37)

• Recommend to Increase Wholesale Rate in FY 2022 from annual practice of PPI

determined rates and contract negotiated rates to $3.95 (change is $1.02)

 If Wholesale Customers Directly Pass Along the Rate Increase, then the Average
Wholesale Retail Customer using 4,500 gallons per Month would Increase
Approximately $4.59 Per Month
 Provision for 2022 Water Rate Change per Ordinance

XI. WATER FUND

Be it ordained by the Brunswick County Board of Commissioners that the following water
service rates are hereby adopted to commence as of the billing month that the Northwest Water
Treatment Plant Low Pressure Reverse Osmosis Advanced Water Treatment System is operational in the
fiscal year beginning July 1, 2021 and ending June 30, 2022.

(a) Base Service Charge:

¾” Meter $15.00
1” Meter $19.00
1 ½” Meter $21.00
2” Meter $23.00
3” Meter $27.00
4” Meter $31.00
6” Meter $35.00
8” Meter $38.00
10” Meter $42.00
12” Meter $46.00
 Provision for 2022 Water Rate Change per Ordinance -
Continued
(b) Retail Water Monthly Usage ¾” – 1 ½” Meters:
Block 1 0 - 5,000 gallons $3.10 per thousand gallons
Block 2 5,001 - 20,000 gallons $3.60 per thousand gallons
Block 3 > 20,000 gallons $4.20 per thousand gallons

(c) Retail Water Irrigation Monthly Base Services Charge: $5.00

(d) Retail Residential Water Monthly Usage

Block 1 0 - 5,000 gallons $3.60 per thousand gallons
Block 2 5,001 - 20,000 gallons $4.65 per thousand gallons
Block 3 > 20,000 gallons $6.20 per thousand gallons
Retail Commercial Water Monthly Usage
Block 1 0 - 20,000 gallons $3.60 per thousand gallons
Block 2 20,000 – 100,000 gals $4.65 per thousand gallons
Block 3 > 100,000 gallons $6.20 per thousand gallons

(e) Wholesale Monthly Usage Rate $3.95 per thousand gallons

(f) Industrial Monthly Usage Rate $3.30 per thousand gallons