Note: The Village Council will continue this public hearing at its meeting on Wednesday, September 1. That meeting will begin at 7:30 pm in the Village Council Chambers, 141 East Broadway.

The Granville Village Council has scheduled a public hearing at 7:30 pm on Wednesday, August 18 for two ordinances that would adjust the current water and wastewater rates. The purpose of this article is to provide information about the proposed adjustments – the impact on the average customer, why the revenue is needed, how the revenue will be used, and even a comparison with the rates for other communities.

Proposed Increase and Impact on Average Village Customer

Currently, a Village residence or business is billed for water and wastewater services at the rate of $7.30 per 1000 gallons. (Customers within the Village who are only on water are billed at $3.40 per thousand gallons.)

The proposed legislation would increase the combined water and wastewater rates to $9.85 per 1000 gallons. (Customers within the Village who are only on water would be billed at $3.85 per thousand gallons.)

If the proposed legislation is adopted, the new rates would be effective for water usage during the month of October, 2010. That usage would be reflected in the meter readings beginning November 1 and the monthly bills that will be sent out on December 1.

The draft legislation would authorize another $0.95 increase per 1000 gallons to be effective for water and wastewater usage during the month of November 2011, which would be reflected in the bills to be sent out on January 1, 2012. (A water only customer in the Village would pay an additional $0.40 per 1000 gallons.)

Customers Outside the Village

Customers outside the Village typically pay a surcharge for water and wastewater usage. That surcharge (or multiplier) would be applied to the proposed rates listed above.

Need for Additional Revenue

The water and wastewater funds are enterprise funds, which means that they are self supporting and must produce sufficient revenue to cover their expenses. The Village has not had a utility rate increase since 2005. Over that time, the costs of operating the utility plants have increased because of changes in the prices of fuel, chemicals, electricity, supplies, personnel, and insurance.

Capital improvements to the water and wastewater plants, the water distribution system, or the wastewater collection system are typically funded from capacity fees, which are assessed to new customers when they connect to the water or wastewater systems. However, because new construction has virtually stopped as a result of the downturn in the economy, there has been very little new revenue available for capital improvements. A portion of the new revenue generated from the proposed water and wastewater increases will be used to fund capital improvements such as a new ultraviolet disinfection treatment system at the wastewater plant, pump replacements, and waterline replacements.

The proposed utility rate increases are needed to ensure that the water and wastewater funds remain self supporting. The increases are necessary to replenish cash balances and to help fund future capital projects.

Comparison of Rates

Even with the proposed increases, the Village’s water and wastewater rates will remain significantly lower than most rates charged by other Licking County communities. The following chart, which is based on a survey of rates published on the internet, provides a quick comparison of rates based on 1000 to 5000 gallons of consumption: