1994 Sewer & Water Rate Survey
Introduction
This report summarizes responses from the eleventh annual Sewer and Water Rate Survey, conducted by the Ohio Environmental Protection Agency. In addition, 1994 responses are consolidated with data from previous surveys conducted from 1983 to 1993.
The 1994 Sewer and Water Rate Survey generated responses from 390 municipalities and districts across the state. The survey gathered information concerning the following areas:
- 1994 sewer rate
- Cause of sewer rate increase
- 1994 water rate
- Cause of water rate increase
- Billing period
- Sewer and water system tap-in fees
- Number of sewer and water accounts
- Number of no-charge accounts
- Bulk water sales
A copy of the questionnaire is included in Appendix 1. Surveys were sent to 512 municipalities and districts, including 54 districts not previously surveyed; responses were received from 76% of these municipalities and districts. Respondents consisted of 353 systems offering sewer and water service, 15 "water-only" systems, and 21 "sewer-only" systems.
Appendix 2 and Appendix 3 report sewer and water rates, respectively, for responding communities as well as rates obtained outside of the survey. In a continuing effort to report accurate data, erroneous rates have been corrected in Appendices 2 and 3 and may differ from previous issues of this report. Corrections have caused slight changes in the tables and figures that include data from earlier years.
Sewer and Water Rate Calculations
Sewer and water systems often differ in the method of measurement (gallons or cubic feet) and billing period (monthly, bimonthly or quarterly), utilized to calculate rate charges for customers. To standardize sewer and water rates across Ohio and to allow for comparisons across municipalities, assumptions regarding consumption were made. The 1994 annual sewer and water rates were calculated assuming that 3-person households daily consumed 85 gallons of water per person. Also, annual sewer and water rates were calculated for users within municipal limits as opposed to those outside such limits. Calculation of the average annual rate per user assumed one of the following as the average water consumption per household:
- 7,756 gallons per month (1,037 cubic feet per month)
- 23,269 gallons per quarter (3,111 cubic feet per quarter)
Actual consumption will vary among households. Because most systems charge by the level of consumption, individual households may have sewer and water costs that are higher or lower than those listed in appendices 2 and 3. For example, a 1-person household would typically consume much less than 7,756 gallons per month.
Sewer Rates
The 1994 average annual residential sewer rate was $286, which is a 4.4% increase over 1993. This is the smallest percentage increase since 1984. Half of all sewer systems charged rates higher than $264. Eighty-one percent (300 systems) charged between $100 and $400 per year. Communities in which a rate increase became effective during the period of October 1, 1993 through December 31, 1994 paid an average of $47 more for sewer service than during the prior year.
Table 1 summarizes annual sewer rate data for 1983 through 1994. Figure 1 displays the average annual sewer rate data; figure 2 displays the distribution of sewer rates. Appendix 2 contains 1983 through 1994 annual residential sewer rates for communities and districts.
Table 1. Annual Residential Sewer Rate 1983-1994
Year Average Sewer Percentage Average Rate
Rate Increase Increase
1983 $138 N/A N/A
1984 $144 4.3% $33
1985 $153 6.3% $32
1986 $163 6.5% $37
1987 $180 10.4% $57
1988 $199 10.6% $69
1989 $217 9.0% $66
1990 $232 6.9% $51
1991 $246 6.0% $47
1992 $258 4.9% $38
1993 $274 6.2% $46
1994 $286 4.4% $47
Average Annual Sewer Rates 1983-1994
Sewer Rate Distribution
Sewer Rate Increases
An increase in sewer rates was reported by 92 communities (24% of respondents), with an average annual increase of $47. Major capital improvements were cited as a cause for higher sewer rates by 16.7% of those incurring a rate increase, which is a significant decrease from last year's 22.6%. Labor cost, which was the second most common answer in 1993, was the most frequently cited reason for a 1994 sewer rate increase. As can be seen in figure 3, other causes of sewer rate increases were evenly distributed among expenditure categories.
Causes of Sewer Rate Increases
Water Rates
The 1994 average annual residential water rate was $244, which is a 5.2% increase over 1993. Half of all water systems charged rates higher than $228. Eighty-seven percent (318 systems) charged between $100 and $400 per year. Communities in which a rate increase became effective during October 1, 1993 through December 31, 1994 paid an average $44 more for water service than during the prior year.
Table 2 summarizes annual water rate data for 1984 through 1994. Figure 4 displays the average annual water rate data; figure 5 displays the distribution of water rates. Appendix 3 contains 1984 through 1994 annual residential water rates for communities and districts.
Table 2. Annual Residential Water Rate 1984-1993
Year Average Water Percentage Average Rate
Rate Increase Increase
1984 $155 N/A N/A
1985 $162 5.8% $33
1986 $167 3.1% $30
1987 $175 4.2% $32
1988 $181 3.4% $36
1989 $188 3.9% $37
1990 $194 3.7% $33
1991 $208 7.2% $36
1992 $222 6.2% $35
1993 $232 5.0% $30
1994 $244 5.2% $44
Average Annual Water Rates 1984-1994
Water Rate Distribution
Water Rate Increases
An increase in water rates was reported by 107 communities, representing 22% of those responding. The average reported increase in annual water rates was $44. Major capital cost was the most frequently cited reason for a 1994 water rate increase; labor cost was the most frequent cause for a 1993 water rate increase. Other causes of 1994 water rate increases were evenly distributed, as illustrated by figure 6.
Causes of Water Rate Increases
Sewer and Water Rates: Ten-Year Comparison
Figure 7 displays average annual sewer and water rates since 1983 and 1984, respectively (the survey of water rates was started one year after sewer rates). The graph illustrates the faster rise in sewer rates relative to water rates during the period. The best explanation for this may be the 1988 Clean Water Act deadline which often required significant wastewater treatment plant upgrades. This is consistent with figure 8 and Table 1, which show average sewer rate increases building to a peak in 1988, and tapering off afterward. In contrast, average water rates have risen more slowly.
Average Sewer and Water Rates 1983-1994
Average Sewer and Water Rate Increases 1984-1994
Billing Period
Monthly billing periods are used by 70% (270) of survey respondents, while 20% (78) reported quarterly billing and about 9% (34) had bimonthly billing. One system reported semiannual billing. Mixed billing periods, consisting of monthly and quarterly or monthly and bimonthly billing, were reported by ten systems.
Sewer and Water Tap-In Fees
Tap-in fees for sewer and water service were surveyed for inside and outside customers. Half of all inside sewer and water tap-in fees were greater than $400. The average reported tap-in fee for sewer service was $603 for inside and $647 for outside customers. Sewer tap-in fees ranged from $1 to $5,922. Water tap-in fees averaged $531 for inside customers and $597 for outside customers. Water tap-in fees ranged from $25 to $3,400. Figures 9 and 10 show the distributions of inside and outside sewer and water tap-in fees.
The reported tap-in fees require some interpretation, because the use of tap-in fee revenue varies across sewer and water systems. The survey asked only for the fees charged by the system, which may not include additional private costs. For example, some systems require a customer to hire a plumber to tap into system lines, and charge nothing or a small inspection fee. Newer systems that use tap-in fees as an assessment to pay for the entire system may report higher tap-in fees.
Sewer Tap-In Fees
Water Tap-In Fees
Sewer and Water Accounts
Communities were asked to report the number of inside and outside sewer and water customers served and the number of water accounts that are metered. On average, 91% of inside and outside water customers are metered. Of the systems that reported the number of sewer and water accounts, 80% of all water customers are metered. Only 4% of systems report that none of their inside customers are metered and about 9% report that none of their outside customers are metered.
Outside customers make up an average of 3% of all sewer accounts and 7% of water accounts. These figures jump to 5% and 9% for sewer and water, respectively, when systems with no outside customers are eliminated. In general, water systems serve more outside customers than sewer systems, with 276 water systems versus only 228 sewer systems reporting outside customers. Only 81 water systems report no outside customers, while 143 sewer systems report no outside customers.
No-Charge Accounts
No-charge accounts, which are usually publicly-owned facilities such as administrative buildings and parks, are reported by 44% (162) of sewer systems and 47% (169) of water systems. In both cases no-charge accounts average less than 1% of total sewer or water accounts. Systems with these accounts average 11 sewer no-charge accounts and 13 water no-charge accounts. The number of no-charge accounts appears to be related to system size.
Bulk Water Sales
Seventy-two percent of all water systems sell bulk water. Although the survey did not provide a definition of bulk water sales, responses and attached documentation suggest that bulk sales include water sold through master meters to large water users and to water haulers. The average cost of bulk water is $4.92 per thousand gallons, which translates to $458 per year at a consumption rate of 7,756 gallons per month. This is nearly twice the average annual water rate of $244 for inside residential water customers.
The range of bulk water rates is surprising, with the highest rate ($35 per thousand gallons) 113 times the lowest rate ($0.31 per thousand gallons). In contrast, the highest annual residential water rate of $690 is 29 times greater than the lowest annual water rate of $24.
Appendices:
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