Wastewater Rates, Fees and Charges...

An Example from the "City of Thousand Oaks"...

The City of Thousand Oaks Public Works Department has developed a multi-year wastewater capital improvement program. A phased capital improvement program is planned to construct projects over a 12 year span starting in Fiscal Year 1997 / 98. Bartle Wells Associates was retained to prepare a financing plan for wastewater system improvements. Financing plan elements include a review and recommendation of financing alternatives, a multi-year projection of revenues and expenses, and a review of connection charges in accordance with Government Code 66000 (AB 1600).

The financing plan and the City's phased capital improvement program are intended to be flexible. Project phasing will continue to evolve over the planning period. The need for and timing of each project element will be examined in detail by Wastewater Division staff. Prior to construction of any project, City Council approval is required to initiate engineering design, call for construction bids, and award construction contracts. Financing and expenditure decisions also require City Council approval.

Thousand Oaks has well-established policies that serve as a guide for financing projects. These policies have been established over the years by City Council actions and also by considerable citizen input.

Key City financial policies are ; (1) Projects that serve future development will be funded entirely by future users. (2) To the extent possible, wastewater capital project costs will be funded on a pay-as-you-go basis thereby minimizing debt financing. (3) Annual ongoing costs for operation and maintenance will be funded from current revenues in the form of service charges to those receiving the service. (4) An operating reserve of at least equal to five percent of operating expenses will be maintained. (5) Service charges and connection charges will be developed on an equitable basis to insure that individual customer and customer category pay only their share of wastewater system costs.

Rates and fees of the City's Wastewater Treatment Division are set by ordinance. Monthly wastewater service charges and one-time connection charges are based on the estimated flow, biochemical oxygen demand (BOD), and suspended solids (SS) of the discharge to the wastewater system. An equivalent residential unit (ERU) is a number representing a discharge to the wastewater system equal to that of an average residential unit. One ERU is equal to 20 plumbing fixture units or a discharge of 285 gallons per day of average-strength wastewater.

Wastewater Service Charge...

System users will receive, starting in November 1997, Utility Bills that include an increase to their wastewater service charge. The service charge rate per ERU per month is $17.60. Unanimously approved by the City Council, this increase is needed to provide revenue for wastewater capital improvements planned over the next 12 years to meet health and safety needs as well as new Federal and State water quality requirements, and to replace certain wastewater treatment facilities. With this increase, Thousand Oaks residents will still pay a service charge that is below the average charged by other cities in Ventura County.