10 May OWASA Board Holding Public Hearings on FY23 Budget and Rates
The OWASA Board of Directors will hold virtual public hearings on the proposed budget and rate adjustment for Fiscal Year 2023 (FY23) at 6 p.m. on Thursday, May 12, 2022.
The Board is considering a 16% rate increase for water and sewer services. This budget helps to ensure that we are investing in the community’s water and sewer infrastructure at a level that decreases risks of failure in our systems and processes that would negatively impact the environment and OWASA customers.
Details on proposed rate adjustment
Although a 7% increase was originally projected for FY23 rates, OWASA is facing many financial challenges impacting industries across our area and the country. Inflation has significantly increased the cost of supplies needed to safely treat the community’s water and wastewater, as well as the cost of construction for infrastructure. This coupled with a highly competitive labor market is applying pressure to OWASA’s budget in multiple ways.
Additionally, water sales remain below projections. OWASA is funded solely by the rates and fees charged for services and is not supported by tax revenue.
The proposed FY23 budget also covers the costs of deferred infrastructure investments and upgrades to technology critical to operations and billing. These deferments were made to ensure that rates were not increased in 2020 during the beginning of the pandemic. Some of these technology systems are now approaching the end of their useful lives and need to be upgraded before becoming security risks. These investments will also help streamline OWASA operations for years to come.
As OWASA is updating the community’s Long-Range Water Supply Plan, investments will also be needed to ensure we can continue providing essential water services to customers through 2070. These investments account for 1% of the proposed rate increase for FY23.
A 16% increase in rates, if approved, will raise the average residential bill for OWASA customers by $12.71 to $92.17. Any adjusted rates will go into effect in October 2022.
Roughly 50% of the bill customers pay for services goes toward funding critical capital improvement projects to upgrade pipes, pumps, and other important infrastructure. These investments will serve our community for many years to come. The other 50% supports the maintenance and operation of the system 24 hours a day, 7 days a week, 365 days a year.
The virtual public hearings on OWASA’s proposed budget and rate adjustment are scheduled for 6 p.m. Thursday, May 12, 2022. You can register to speak at the meeting by emailing Clerk to the Board Andrea Orbich by 3 p.m. the day of the meeting.