The Granville Village Council voted to increase water and sewer rates for 2012 and 2013 during their November 16th meeting. The 2012 rate increase will be effective with utility usage beginning January 1, 2012 and reflected on the February 1, 2012 bill. The second increase will go into effect for usage beginning December 1, 2012 and be reflected on the January 1, 2013 bill.
Increase and Impact on Average Village Customer
Currently, a Village residence or business is billed for water and wastewater services at the rate of $8.85 per 1000 gallons. (Customers within the Village who are only on water are billed at $3.55 per thousand gallons.)
The legislation would increase the combined water and wastewater rates in 2012 to $10.40 per 1000 gallons. (Customers within the Village who are only on water would be billed at $4.44 per thousand gallons.)
The legislation also authorizes an additional increase in 2013. Rates will increase by $0.65 to $11.05 per 1000 gallons, to be effective for water and wastewater usage during the month of December 2012 and reflected in the bills sent out on January 1, 2013. (A water only customer in the Village would pay an additional $0.44 or $4.88 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. 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: