2012 Rate Increase Information
We understand that our customers may have questions regarding the How’s, When’s and Why’s of the recent rate increase. We have developed these “Frequently Asked Questions” to help you understand how the rate increase affects you, your family and/or your business. If you have further questions, please don’t hesitate to call the district office at 360-371-7100 or email us at info@bbwsd.com.
1. When will the rate increase take effect?
The rate increase will take effect on January 1, 2012. Rates are being increased by eight percent for both water and sewer. This includes an increase in the base rate and volume tiered rates for both water and sewer.
2. How will a typical customer’s bill be affected?
The average customer in BBWSD using 1600 cubic feet of water every two months will see their bill increase from $101.96 to $110.20. That equals $55.10 for one month (an increase of $4.12) for both water and sewer.
3. When did the District last increase its rates?
BBWSD made changes to the rate structures that took effect January 1, 2011. With that change, 42% of our customers saw a reduction in their water and sewer bill and 21% of our customers had an increase of less than 3%. Overall, District customers paid approximately the same amount on their water and sewer bills in 2011 as in 2010.
4. What is the District doing to keep costs down?
The District is committed to cost-efficient operations and it is doing many things to keep costs down. Every year, the District reviews its operating budget exploring opportunities to increase efficiency and reduce costs in every aspect of our operations. This includes exploring ways to optimize energy management and facility operations. It also includes controlling the size of its workforce by balancing staffing levels to provide the services needed to maintain, repair and replace its facilities. The District had 16 fulltime employees in 2008 and now only has 14 fulltime employees.
5. Why is the rate increase necessary?
Our existing rates were based on higher water demand and growth assumptions than the district is actually experiencing. The prolonged economic downturn, cooler than average summers and an increased conservation program have led to a decrease in water and sewer sales. The current rate structure is not adequately covering the increasing costs to maintain the operations of our water and sewer system and very little revenue is being generated from connection charges. Eighty-five percent of the district’s costs are fixed and do not change regardless of the amount of water being used.
6. Does the District annually review rates and revenue?
Yes, the District looks at revenue yearly and reviews the need to change rates.
7. How do the District’s rates compare to other Whatcom County Utilities?
|
(MONTHLY-BILLED AT 800 CF) |
||||
|
City |
Water |
Sewer |
Tax |
Total |
|
Blaine |
$ 19.75 |
$ 90.25 |
$ 9.90 |
$ 119.90 |
|
Lk Whatcom |
$ 43.73 |
$ 62.83 |
$ - |
$ 106.56 |
|
Average |
$ 27.54 |
$ 46.91 |
$ 5.74 |
$ 80.20 |
|
Lynden |
$ 30.69 |
$ 44.27 |
$ 4.50 |
$ 79.46 |
|
Ferndale |
$ 32.17 |
$ 41.86 |
$ 4.81 |
$ 78.84 |
|
Nooksack |
$ 29.25 |
$ 41.50 |
$ 4.25 |
$ 75.00 |
|
Bellingham (Flat) |
$ 32.72 |
$ 31.20 |
$ 7.35 |
$ 71.27 |
|
Everson |
$ 25.56 |
$ 39.00 |
$ 3.87 |
$ 68.43 |
|
Sumas |
$ 10.96 |
$ 43.41 |
$ 4.89 |
$ 59.26 |
|
Birch Bay |
$ 24.90 |
$ 30.20 |
$ - |
$ 55.10 |
|
BBWSD 2012 Rates vs. Other Utilities 2011 Rates) |
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8. How does practicing water conservation overall keep rate increases lower?
Practicing water conservation does help to lower the percentage rate increases at the District. Conservation frees up capacity within the current water supply. This defers expensive capital improvement projects by reducing the need to build infrastructure to meet increasing demand. The District has been able to defer over $1.7 million dollars in capital improvement projects as a result of conservation.