(September 28, 2010)—Charleston Water System's Board of Commissioners today approved the utility's 2011 Budget, Capital Improvements Program, and a three-year series of water and sewer rate increases, the first of which takes effect on December 1, 2010.
2011 Budget
Charleston Water System's 2011's overall expense budget nearly the same as the 2010 budget, but $1 million less than 2009's budget. In order to offset rising electricity and chemical costs, other expenses were reduced in the 2011 budget, notably manpower.
Charleston Water associates will not receive pay increases, and seven open positions were eliminated. Charleston Water has reduced its workforce by 30 positions over the last three years.
2011 - 2013 Capital Improvements Program
The $85 million Capital Improvements Program includes seven critical water and sewer infrastructure projects, which Charleston Water plans to fund with a bond issue, pending Charleston City Council's approval. Interest rates for borrowing are at historical lows, as are construction costs.
Charleston Water also plans to refinance approximately $45 million in existing debt, which will save an estimated $3.5 million in interest expense. The largest and most critical infrastructure project in the capital program is the West Ashley Sewer Tunnel Replacement Project, the fifth phase of the Sewer Tunnel Replacement Project that began in 1998. With an estimated cost of $51 million, it accounts for more than half the cost of the capital program.
The forty-year-old tunnel carries wastewater from more than 100,000 people west of the Ashley to the Plum Island Wastewater Treatment Plant. In addition to structural deterioration, the tunnel is no longer large enough to serve the area, so replacing it with a larger one is critical to protecting the environment from potential sewer overflows.
Rate Increases
Water rates will increase by an average of 4.5% and sewer rates will increase by an average of 5.5% each year for the next three years, starting December 1st. The national average for water and wastewater rate increases is 5.4%, according to a recent analysis of the 50 largest water and sewer utilities in the US.
The December 1st increase will add nine cents a day ($2.87/month) to the monthly water and sewer bill for the typical residential customer in the City of Charleston using 5,200 gallons of water a month. Typical residential water customers who live outside of the city limits will see an increase of about four cents a day ($1.30/month).
View 2011, 2012, and 2013 rate schedules (PDF)
About water and sewer rates
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