Rate Setting January and February - Hints?

[dgstangel]

Here's to the end of the rate setting period!  We were able to cut our usage in half from last year during Jan+Feb.  Looking forward to a significant reduction in our wastewater rates through next year :-)  Also I convinced myself that I'm not cheating the system whatsoever.  I'm still using Berthoud water, just paying for it in a different way (via the laundromat).

A big key for us was taking fewer, shorter showers.  It also helped to shift the laundry off-site.  Our poor old dishwasher is a piece of junk, so we almost never use it anyway, and it's easy to conserve water when washing dishes by hand.  I also found that one of our toilet tanks occasionally runs (slow leak in the flapper valve).

I noticed for the first time how vague the water readings seem to be.  The meters measure in increments of 1,000 gallons, and it's not clear how a partial-1,000 gallons is read.  If your meter is at, say, 2,501 gallons, will that be counted as 3,000 gallons, or 2,000 gallons?  Likewise what happens if you're at 2,499?  I'm sure there's a standard, but it seems imprecise to me.  I'd feel better if it were measured at 100's or even 10's of gallons.

[wiseyoungowl]

I am not actually for more rooftops.  I like the small town.  The problem is that the amount the town has to pay on the loans for the water and treatment pants goes up each year.  This seemed ok at the time because the town thought it would keep on growing, providing more and more customers to carry the burden.

Since I would prefer to see the town stay small, I would like to see the town make some effort to reduce the payments for the water and treatment plant, so that the town doesn't 1) go bankrupt or 2) raise our rates through the roof or 3) become a prostitute to developers.  I am afraid the third option is already starting to happen, as the town 'revised' fee schedules and the like last year to encourage more 'rooftops'.

It's a difficult problem and I doubt there are any easy answers.  Let's hope the town is wise enough to consider all options.

[DPD]

Let's take a look at the "more rooftops" approach for a second.  If we have 2000 households that pay $150 each right now, doubling the size of town would drop those payments to $75.  A $900 savings per year per household (assuming it's linear).  If we increase by 10% it would be $164 per household per year.  Can anyone honestly tell me that all of the issues that come with that scale of expansion are worth the $900, much less $164?  It just doesn't seem like this has been realistically thought out.  Besides the fact that it is highly unlikely that any developer is going to come in and plop down 2000 units in a small town with no industry...in a housing slump...in a recession.

I'm just sayin'.

[Dorian]

Welcome to the forum wiseyoungowl. Looking into loan modifications is a great idea. Our new Town Administrator Mike Hart has a strong financial background. Citizens First has a Public Water Forum planned for this April. There are citizens meeting with Mr. Hart is a couple of weeks to address their concerns and we will recap that meeting on the water thread of the forum. More rooftops will be helpful to share the burden, however even the most optimistic projections of the housing market put the possibility of new roof tops at least a few years out. The Utility Advisory Board will be working on water solutions this year also.

[wiseyoungowl]

It has been pointed out that back in the late '90's the town built new water and treatment sewer plants to replace old ones undersized and/or no longer meeting state/federal standard's.  About a year ago, the Reporter-Herald had an article showing percentage of capacity used of these facilities among Ft. Collins, Loveland, Longmont and the like.  Berthoud's use rate was about 25% for both, while the other cities was about 85%.  Clearly, there was a lack of foresight by the Berthoud Town Board at that time.  I also seriously doubt that that the EPA or state required such large plants be built.

Nevertheless, it can't be changed now.  It seems to me the thought by the Town is to get more 'rooftops' to help share the cost of these facilities.  I would like to see attempts made to somehow reduce the payments for the water and sewer plant via grants or 'loan modifications'.  Perhaps that way the rates could be brought down to a more reasonable area.  I don't enjoy paying the higher rates, but do enjoy the small town atmosphere.

Further, concerning water bills in the summer, I have heard people talk about $300 bills.  Mine has never been more than $160 (water and sewer) (Berthoud Commons subdivision). I do notice that some people water during the day and some nearly everyday.  I water 2x per week and lawn looks great (fertilizer is the key to a green lawn in Colorado).  Perhaps these suggestions will help people keep their water bills down.

[Tom Jones]

 Hey there dgstangel ,

Great post.

My favorite part is your quote "I think this is a productive discussion."
More discussion is a good thing.

My second favorite is "I have no shame about running an "end around" for the sewer rates".
In my opinion, you are not running an end around.
You are playing strictly by the rules.

In this economy, saving $20 to $50 or whatever, those are big bucks to all too many of the folks in this time of high unemployment.

[dgstangel]

I have no shame about running an "end around" for the sewer rates, and I think this is a productive discussion.  In my experience, our frugality during Jan-Feb will save us between $50 and $70 per month.  If I can remember sometime this weekend, I'll dig through the file cabinet and post my water/sewer rates here in the Forum for comparison.

Regarding "cheating the system," when I spoke to the town administration at one point, I was told, (paraphraising) "Yeah, most people cut their water usage dramatically to save money the rest of the year."  Conclusion:  The Town fully expects people to use this opportunity to lower their sewer rates, and if not encouraging it, certainly does nothing to discourage it.  The people who don't conserve end up paying the price.

Another thought:  I would not consider that I'm "living like a hobo."  Instead I find it is a useful way to take stock of our water usage and figure out whether that extra 5 minutes of showering is really worth it.  Or leaving the water running while hand-washing dishes, etc. 

We live in the West, where water is increasingly scarce.  I do not think the Town has properly managed its water supply and treatment, but I also think that as a whole people in Colorado waste a tremendous amount of water, and before too long it's going to catch up with us. Those of us "lucky" enough to be water users in Berthoud are just getting a little sneak preview of how costly water usage can be.

[Tom Jones]

Hi Dan,

I agree 100% with your sentiments here.

I guess my answer as to why people game the system for 2 months is that they are quite upset that they pay ~2X(or more) for water/wastewater than neighboring communities do.

I have lived in other towns where similar rate setting schemes for sewer fees are practiced.
I think it is the norm. However, since their rates are not onerous,  (as ours are), nobody sees the need to live like a hobo for 2 months.

[DPD]

I understand that we pay for all of the water that we use regardless of whether or not it goes down the drain.  My question is how people justify paying less for using the public sewage system by doing an end run for the first two months of the year.

[Tom Jones]

OK DPD. I will try to answer the devil's advocates questions.
1)"Why are people trying to get away with paying for less than they use?"

You ALWAYS pay for ALL the water you use. However, not ALL the water you use goes into the sewer system.
People are trying to save a buck where they can. They are playing by the rules established that say your sewer rate is based on Jan./Feb. usage,  which presumably all goes down the sewer. People who water their grass in the summer argue that they should only pay for the water they use and not pay for water not introduced into the wastewater system.

2)"I guess I'm just wondering what the actual benefit (if any) to living like a hobo for two months is."
You said it. $20-$30/month. Maybe not much to you or me, but i suspect it is substantial to some.

[DPD]

OK.  I'm going to play devil's advocate again.  Why are people trying to get away with paying for less than they use?  How did the town determine how to set these rates?  If they were set based on paying off debt for the construction of facilities and maintaining those facilities (without being a huge profit stream) then paying for less than you use of a public system is a detriment to the overall well-being of the town itself.  Suppose every household in town decided to hedge their numbers and end up only paying for half of what they use.  Essentially this means that only half of the maintenance of the facilities is being funded, conceivably those facilities will wear out twice as fast, maybe jobs will be underfunded.  Then the town will have to raise fees for everyone to compensate, people will complain, etc., etc.

Now, if these rates are high because of mismanagement, corruption, or some other monkey business, then stiffing them on the sewer bills may (but I seriously doubt) make them get their crap in a pile and straighten up.  But if this were a movement where civil disobedience is called for it should at least be somewhat organized and informed.  Right now it seems like neither. 

I don't know.  It just seems to me that trying to skirt the system here will add up to problems later.  I mean if you're able to cut your sewer rates by $20 or $30 per month you're only "saving" (quotes here because costs are eventually deferred to someone else) $360/year max.  I don't know about you guys, but I can wipe my arse without spending that much any more...literally.

I guess I'm just wondering what the actual benefit (if any) to living like a hobo for two months is.

[Tom Jones]

 Hi Dorian,

I'm all for sharing.
Mine is a household of two.
We were able to get our usage down to 3k gallons in each of Jan. and Feb.

Our "real" usage is about 6k/month for a total bill of about $112/month.
Of course this includes lift station fee, municipal fee, etc.
Careful monitoring has shown that the bulk of usage is showering/bathing.

The "yellow let it mellow" thing is unpleasant, but a big savings.

Watering your plants, washing your clothes, etc. is relatively inconsequential. (but every little bit helps)

A 10 minute shower using a 2.5 gal/min. shower head = 25 gal. X 2 people = 50 gal/day = 1500 gal./month.

The real tragedy here is you only save a few bucks from all your conservation efforts.

This is due to that substantial tap(?) fees.
As I said, you could not use a drop of water and still owe $60+.

[Dorian]

See the BTF thread on sewer rates. If more readers posted here with what they pay we could see the highs and the lows. With a family of four its hard to cut back sewer usage. In '09 ours was $57.97 per month. The Town has budgeted and approved a sewer fee increase for 2010 and a water rate decrease both were minimal but I can't find it in my notes. Does anyone remember what that is? The hearing was set for the Dec. 8 Board of Trustees meeting but the minutes are not up under documents at www.berthoud.org.

[Tom Jones]

 No Jen, not an urban myth. A cold, hard fact.

Your sewage usage rates for the entire year are based on the average number of gallons of water used in Jan./Feb.
The rationale here is that in summer months, you use more water, but it is used to water lawns, wash cars, etc. This water does not go to the sewage treatment plant, so you only pay a sewage charge on the "base rate" established in Jan./Feb.

It is important to note that this applies to sewage fees only.
You always pay for all the water you use, but do not pay a sewage fee for all the water you use.

In figuring your bill, there are a couple important points.
For your water bill, there is a tap(?) fee just to be connected to the water supply system. It is substantial. You then add the # of gallons used multiplied by the current rate to determine your water fee.

Sewage is slightly different.
Again, there is a substantial tap(?) fee just to be connected. You add the average of Jan./Feb usage to get your sewage fee.

So, you could be out of town for an entire month, not use any water, and you would still have a hefty water/sewer bill due to the tap fee .

I found this out the hard way a couple years ago. We happened to have houseguests for a couple weeks in January. That extra use cost me in inflated sewer fees for the entire year.

[dgstangel]

At least up until last year this was not a myth.  I spoke to (I think) Mary Cowdin at town hall, and she described it exactly in this way.  Also a couple of years ago there was a message printed on the water bill alerting us to this process.

But if you find out otherwise from the town please post here.  I'd sure feel like an idiot, but I'd rather be wrong and take showers at home this month & next :-)