DSPUD rate increases, SLCWD assessment district
SLCWD has applied for funding for its portion of the sewer expansion project from the US Department of Agriculture. Ballots for the formation of an assessment district have been counted, with 85% voting to pass the assessment district.
The DSPUD held a Prop 218 hearing on December 6 to consider an increase in the District’s sewer rates for rate payers outside of the recently formed community Facilities District (CFD). A CFD is a financing mechanism which allows project costs to be collected through property taxes instead of rates. The Prop 218 vote passed with two rate payers opposed; rate increases will begin January 2012. DSPUD is working to secure financing through the State Revolving Fund while rates are low.
The Reason for the DSPUD Rate Increase:
In 2009, the State of California issued a new waste discharge permit to the District with more stringent requirements which required significant plant upgrades. The State mandated that the District come into compliance by April, 2014.
For the past two and a half years, the District has worked with engineers on a wastewater upgrade and expansion project that will assure that the wastewater treatment plant meets the 2014 compliance deadline.
Rates Inside and Outside of the CFD
Earlier this year the District established Community Facilities District (CFD) No. 1 in order to fund its State mandated Wastewater Treatment Plant Upgrade and Espansion Project. Three Improvement Areas were created inside CFD No. 1. Property owners, rate payers and registered votes were asked to vote on the CFD. Areas #1 and #3 voted in favor of the CFD, (a 2/3 yes vote of ballots returned is necessary for approval) and will have their share of the Project collected through their property tax bill, making the special tax eligible for a tax write-off. These voters are considered inside CFD No. 1. However, voters inside Improvement Area #2 voted against the CFD and will have to pay for their share of the Project through sewer rates. They are considered outside CFD No. 1.
| CALCULATED DSPUD WASTEWATER RATES AND CONNECTION FEES THROUGH 2016 | ||||||
| Calculated Rates | ||||||
| Rates by Customer | Current | 2012 | 2013 | 2014 | 2015 | 2016 |
| Effective Date: | 1/1/2012 | 7/1/2012 | 7/1/2013 | 7/1/2014 | 7/1/2015 | |
| Existing Customers | Charge per EDU per Month | |||||
| Inside CFD No. 1 | $110.32 | $110.32 | $110.32 | $114.83 | $116.24 | $117.58 |
| Outside CFD No. 1 | $110.32 | $127.03 | $143.06 | $164.28 | $165.69 | $167.02 |
| Future Customers | ||||||
| Inside CFD No. 1 | $45.72 | $45.72 | $46.12 | $47.99 | $48.58 | $49.13 |
| Outside CFD No. 1 | $45.72 | $62.43 | $78.86 | $97.44 | $98.02 | $98.58 |
| Connection Fee: | $1,070 | prior to 4/1/2012 | ||||
| Outside CFD No. 1 Only | $1,772 | 4/2012 – 6/2012 | ||||
| $2,362 | 7/2012 – 6/2013 | |||||
| $3,542 | 7/2013 – 6/2014 | |||||
| $5,312 | 7/2014 – 6/2015 | |||||
| $7,672 | 7/2015 – 6/2016 | |||||
