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1993 Sewer and Water Rate Survey
(The following text and graphics are taken as-is from the survey; with the exception that some formatting has been changed to fit the Web format, and the Table of Contents has been omitted.)
Introduction
This is the tenth Sewer and Water Rate Survey, covering the time span of 1983-1993, conducted by the Ohio Environmental Protection Agency. The 1993 Sewer and Water Rate Survey included responses from 377 municipalities and districts across the state. The Survey gathered information concerning the following areas:
- 1993 sewer rate
- Cause of sewer rate increases
- 1993 water rate
- Cause of water rate increases
- The year the community began operating a centralized sewer/water system
- Whether sewer or water system receives funds from sources other than user fees
- Whether sewer or water system provides funds to other programs
- Type, cost and implementation dates of sewer/water capital improvement plans
In a continuing effort to produce an accurate Sewer and Water Rate Survey, erroneous rates have been corrected in Appendices 2 and 3. Corrections have resulted in slight changes in the tables and figures related to previous years.
A copy of the survey form is included in Appendix 1. Surveys were sent to 457 municipalities and districts, including 100 municipalities not previously surveyed; responses were received from 82% of these municipalities.
Sewer and Water Rate Calculations
Sewer and water system rates vary in the method of measurement (gallons or cubic feet) and billing period (monthly, bi-monthly or quarterly). To standardize sewer and water rates across Ohio and to allow for comparisons among municipalities, assumptions regarding consumption were made. The 1993 annual sewer and water rates were calculated assuming that 3-person households daily consumed 85 gallons of water per person. Also, annual sewer and waterrates were calculated for users within municipal limits as opposed to those outside such limits. Therefore, calculation of the average annual rate per user assumed one of the following as the average water consumption per household:
- 7,756 gallons/month (1,037 cubic feet/month)
- 23,269 gallons/quarter (3,111 cubic feet/quarter)
Actual consumption will vary among households. Because most communities charge by level of consumption, individual households will have sewer and water costs that are higher or lower than those listed in the appendices. For example, a single person household would typically consume much less than 7,756 gallons/month.
Sewer Rates
The 1993 average annual sewer rate was $274, which is a 7.0% increase over 1992. Table 1 summarizes the 1983-1993 average annual sewer rate data. During this time the average rate has increased approximately 100% from $137 to $274. Assuming an average inflation rate during the period of 3.5%, the average sewer rate has increased by about 40%, in real terms, from 1983 to 1993. Figure 1 displays the average annual sewer rate data; figure 2 displays the distribution of sewer rates for all respondents. Appendix 2 lists the average sewer rates for all communities, 1983-1993.
Table 1. Average Annual Residential Sewer Rate 1983-1993
Year Avg. Annual Percentage Average
Sewer Rate Increase Increase
1983 $137 N/A N/A
1984 $144 5.1% $33
1985 $153 6.3% $32
1986 $162 5.9% $37
1987 $180 11.1% $59
1988 $200 11.1% $70
1989 $216 8.0% $63
1990 $231 6.9% $51
1991 $246 6.5% $47
1992 $256 4.1% $38
1993 $274 7.0% $48
Average Annual Sewer Rates
Sewer Rate Distribution
Sewer Rate Increases
An increase in sewer rates was reported by 102 communities (27% of respondents), with an average annual increase of $48. Major capital improvements were cited 22.6% of the time as the primary cause for sewer rate increases. This year laboratory, chemical and energy costs, which were a combined category in 1992, were responsible for 38.1% of sewer rate increases in 1993 as opposed to 8.8% in 1992. Figure 3 displays all causes of sewer rate increases.
Causes of Sewer Rate Increases
Water Rates
Appendix 3 contains the average annual water rates for 1984-1993. The 1993 average annual residential water rate was $232, representing a 5.0% increase over 1992's average water rate of $222. Table 2 summarizes the average annual water rate data for the period 1984-1993. During that time, rates increased approximately 51.0%. Adjusted for inflation, water rates increased much slower than sewer rates, showing only a 9.2% real increase for the 1984-1993 period. Figure 4 displays the average annual water rate data; figure 5 displays the distribution of water rates.
Table 2. Average Annual Residential Water Rate 1984-1993
Year Avg. Annual Percentage Average
Water Rate Increase Increase
1984 $154 N/A N/A
1985 $163 5.8% $33
1986 $168 3.1% $30
1987 $175 4.2% $32
1988 $181 3.4% $35
1989 $188 3.9% $41
1990 $195 3.7% $33
1991 $209 7.2% $39
1992 $222 6.2% $35
1993 $232 5.0% $34
Average Annual Water Rates
Water Rate Distribution
Water Rate Increases
An increase in water rates was reported by 116 communities, representing 30.8% of those surveyed. The average reported increase in annual water rates was $34. Responses for the cause of water rate increases were evenly distributed as illustrated in figure 6. Labor cost was the most frequently cited reason for rate increases at 17.3%, while spending on major capital items was cited for 16.4% of the increases.
Causes of Water Rate Increases
Centralized Sewer/Water System Age
The third question on the survey asked what year the community began operating a centralized sewer/water system. The average age of sewer systems was 45 years, while water systems averaged 68 years. This question was asked to provide information that might link the age of a sewer/water system to a corresponding rate level. The information returned from the municipalities did not indicate a strong relationship between the age of the system and rates.
Further analysis examined the correlation between a municipality's size (population) and sewer/water rate. Utilizing census data and current sewer/water rates, it was found that smaller municipalities on average have higher sewer/water rates than the average municipal rate and higher rates in comparison to larger municipalities.
Sewer/Water System Receive or Provide Funds
Respondents were asked if the sewer or water system received funds from sources other than user charges. 15.9% of sewer systems and 12.7% of water systems received additional funds. The most common source of non-operating funds were income taxes (51.9%) and the General Fund (19.4%). Other funding sources varied greatly, with the only other common source being property taxes (6.5% of responses).
The survey also asked if the sewer or water system provided funds to other programs. 8.2% of sewer systems and 7.2% of water systems provided funding to other programs. The programs that received the greatest number of responses were the General Fund (31.0%), General Operations (1.7%) and General Administration (1.6%).
Planned Capital Improvements
The final question on the survey pertained to planned capital improvements for the sewer or water system. The question asked the type of improvement, approximate cost and implementation dates if known. Table 3 displays the number of responses in each category for municipal sewer systems. 68.7% of those surveyed reported planned capital improvements, with most of these projects set to begin in 1994.
Table 3. Planned Capital Improvements for Sewer Systems *
Type of Planned Sewer Improvement
Sewer (157)
Treatment Plant (162)
Small Equipment (64)
Approximate Cost of Planned Sewer Improvement
Under $100,000 (64)
$100,000 to $500,000 (91)
$500,000 to $1 million (33)
Over $1 million (78)
Implementation Date for Planned Sewer Improvement
1994 (178)
1995 (95)
1996 (35)
1997 or after (25)
*Number of responses is shown in parentheses
Table 4 illustrates planned capital projects for water system. 67.6% of the respondents planned capital improvements, of which 1994 was the most likely implementation date.
Table 4. Planned Capital Improvements for Water System *
Type of Planned Water Improvement
Lines (157)
Treatment Plant (126)
Small Equipment (69)
Approximate Cost of Planned Water Improvement
Under $100,000 (61)
$100,000 to $500,000 (92)
$500,000 to $1 million (33)
Over $1 million (74)
Implementation Date for Planned Water Improvement
1994 (171)
1995 (91)
1996 (33)
1997 or after (30)
*Number of responses is shown in parentheses
Appendices:
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