LIMA — It is the one utility most essential to preserving not just quality of life, but life itself. However, while water may flow free in streams and rivers, water flowing through faucets comes with a price.
Water and sewer utility bills are a way of life for people living within municipal water districts, but how deep of an impact those bills have on budgets is up to the municipality or region overseeing that utility. For some, that impact is quite low, while water and sewer rates are more keenly felt in other areas. No matter how expensive those rates may be, they are, overall, still the cheapest utility any consumer will have, according to city of Lima Utilities Director Michael Caprella.
“Water is by far the cheapest utility you will have,” he said. “I tell people I would look at my phone bill for a home phone, and the taxes on that bill were more expensive than the water.”
Despite that trend, water and sewer customers in many municipalities continue to see rates rise on an annual basis. For example, the village of Cridersville enacted a 5 percent increase on both water and sewer rates as of Jan. 1, while the city of Van Wert saw a 5 percent increase in its water rate and a 7 percent increase in its sewer rate the beginning of the year.
How do rates compare?
Care is required when comparing water and sewer rates for different communities, as rates can be measured by either cubic feet or gallons. In addition, rates per gallon or cubic foot can vary depending on the amount used in a billing cycle, which can either be monthly or quarterly. According to the U.S. Geological Survey, it is estimated that the average American uses between 80 and 100 gallons of water a day. Using an average of 90 gallons of water a day, a family of four can use 11,040 gallons, or 1,427.8 cubic feet, of water in a month. That would translate to 33,120 gallons of water over a quarter of a year.
Using the usage total of that fictional family of four as a benchmark, the average cost for water and sewer rates for Lima, Bluffton, Spencerville, Ottawa, Columbus Grove, Kalida, Wapakoneta, Minster and Van Wert is $4.85 per 1,000 gallons for water and $8.04 per 1,000 gallons for sewer. Rates vary from lows of $2 and $1.93 per 1,000 gallons for water and sewer to highs of $9 and $13.39, respectively. The Allen County Sanitary Engineer’s Office charges a flat sewer rate of $148.50 per quarter.
According to the Ohio Environmental Protection Agency, the most recently calculated statewide average rate for residential water sewer in the state was $592 and $655 per year respectively in 2015, assuming an average use of 7,756 gallons used per month. That would equate to $6.36 and $7.03 per 1,000 gallons per month for water and sewer.
What contributes to utility rates?
Caprella pointed to three main areas that help determine water and sewer rates for customers: personnel, operation and maintenance and capital costs.
“You have salaries, which is a large part,” he said. “It takes a lot of people, and they have to be certified, along with fringes on top of that. Operation and maintenance includes chemicals, and probably the biggest ticket item is electrical, because it costs to pump water. Next to labor, that’s our second-highest cost.”
Tighter regulations from the U.S. Environmental Protection Agency can also increase operational costs, according to Caprella.
“Capital costs are improvements in the system or at the treatment plant,” he said. “It also includes replacing vehicles.”
The city of Wapakoneta is working to pay down a significant capital expense with the building of its new water treatment plant. With the initial funding received from a 30-year loan from the Ohio Water Development Authority, the city is continuing to pay it back, now with a current balance of just more than $6.5 million.
“We pay a yearly amount on the loan,” Safety Services Director Chad Scott said. “That’s a huge dollar amount.”
While expenses can be an issue, another contributing factor can be a dwindling pool of customers in communities where population is stagnant or declining.
“What you hope to do is sell more water or have more customers,” Caprella said. “But the housing market has been stagnant over the past six or seven years, so we haven’t seen our rate base expand a lot.”
Technology can also play a role, both positive and negative, in affecting water rates.
“We charge based on usage, and everyone is going to more water-efficient faucets and toilets,” Scott said. “That reduces what goes out.”
How do utility providers balance meeting expenses and keeping costs down?
Keeping low utility rates is essential for attracting both residential and industrial interest in a community. For Caprella, trying to keep costs reasonable takes careful planning.
“We’ve learned how to work smarter instead of harder,” he said. “We’ve had consolidation of departments and a lot of internal work to keep costs down.”
At the same time, utility providers throughout the region continue to be prepared at all times to ensure that water continues to flow to area homes.
“We have workers available 24/7,” he said. “Water line breaks do not always happen between 7:30 a.m. and 3 p.m. Monday to Friday.”
Attempts to obtain the water and sewer rates from Delphos and St. Marys were unsuccessful.
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