Between the four-year property revaluation cycle and the annual discussion around the local governments’ tax rates, Orange County residents are bracing for higher costs for the upcoming fiscal year. But for Chapel Hill and Carrboro residents, an added cost is expected to come from their water and sewer bill.
The Orange Water and Sewer Authority is working on its budget – and, with that, another round of rate increases for customers to help cover some major projects. This upcoming fiscal year marks the second of planned increases by the service agency, following a steep 15% increase for OWASA’s ratepayers last fall. The pair of major infrastructure projects in the service agency’s five-year plan are a new clearwell for drinking water storage and a facility to remove PFAS compounds. As of this summer, the estimated cost of the projects is a combined $167 million – one of OWASA’s largest capital projects in its history.
Coming up with that money is not easy, according to Deputy Executive Director Stephen Winters. He said OWASA has sought third-party funding sources, but its options are limited. And since the agency is not under any local government and receives no tax subsidies, the burden of fundraising falls to the ratepayers.
“Our sole source of financial support comes from customers when they pay their monthly water and sewer bills,” Winters told 97.9 The Hill in May. “So, essentially, OWASA customers pay for everything: the expenses for operating our treatment plants – we have two of those, one for drinking water and one for wastewater – the network of 800 miles of pipes that run throughout the service area, and [capital improvement projects].”
Winters said the habits of Chapel Hill and Carrboro customers also do not help. The community does well with water conservation, changing its practices to limit water use and be more sustainable. That is great news for the area’s environmental footprint, Winters said, with ratepayers using roughly the same amount of water as they were 35 years ago. But, he added, it is bad news when OWASA has to cover regular cost increases and major projects, like the PFAS treatment facility and clearwell.
“Everyone knows that costs have increased a lot over the last 35 years,” said Winters, “so without more water being sold, the only way we can bring in enough money to pay for increasing costs is to raise the rates we charge for our services.”
An aerial of OWASA’s Jones Ferry Road treatment site, with an overlay of where the future PFAS treatment facility will be located. (Photo via the Orange Water and Sewer Authority.)
For this upcoming proposed budget, OWASA is looking at a 7% increase for its rates, which is below the recommended 9% initially estimated last year. The change stems from sequentially constructing the projects instead of building them in tandem, which the service agency said should lessen the short-term financial impact for ratepayers and the operational impact for the treatment plant staff. The clearwell will be built first, with OWASA continuing its current PFAS treatment approach and meeting the updated EPA regulations for the compounds.
But, as Winters said, the service agency is well aware it’s a noticeable increase for ratepayers if approved, especially for lower-income customers who already may be facing challenges with their payments.
“A 7% rate increase would increase the median residential bill by $6.66 per month,” the deputy executive director described. “So, if the budget is improved in its current form, the customers would see higher bill starting in October.”
Before finalizing the proposed fiscal year budget and rates, OWASA is holding a public hearing on Thursday night to take comments and feedback from customers. The agency’s board of directors will begin its meeting at 6 p.m., with the public hearing following shortly.
Winters said customer feedback on the rate increase and OWASA’s spending priorities are a key element of how the service agency tackles projects and increases like these, meaning participating on Thursday could be impactful for all.
“We do value the input from the community – so if folks could take the time to either come to the public hearing or send us an email, any comments are welcomed and taken into account,” said Winters.
For those looking to watch Thursday’s meeting online, a livestream will be shown on OWASA’s YouTube channel. Written comments for the public hearing can be submitted by email to the Clerk to the Board at mjohnson@owasa.org, or by mailing letters to 400 Jones Ferry Road, Carrboro, NC 27510.
Featured photo via the Orange Water and Sewer Authority.
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