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OWASA committee recommends reduced rate increase

Posted on June 26, 2008 by Staff

The OWASA board’s Budget and Financial Planning Committee last week agreed to recommend a combined water and sewer rate increase of 17 percent, instead of the previously proposed 24 percent increase.

In addition, the committee recommended that OWASA carefully monitor water and sewer revenues and defer some budgeted expenses until it is clear that demand and revenues will be sufficient.

The committee has three members, and two additional board members at the committee meeting indicated agreement with the 17 percent rate increase. The board has nine members.

The increase would raise the monthly bill for an individually metered residential customer using 5,000 gallons by $10.06, from $58.18 to $68.24.

The board previously recommended a 24 percent rate increase, citing a projected 13 percent reduction in demand due to conservation and a projected $1.3 million loss in connection fees due to a lagging construction economy. The 24 percent hike would have increased the monthly bill for an individually metered residential customer using 5,000 gallons by $14.51, from $58.18 to $72.69.

The rate increases are proposed to go into effect October 1. The OWASA board will receive the committee’s recommendations tonight (Thursday) in a meeting at 7:00 p.m. in the Chapel Hill Town Hall on Martin Luther King Boulevard. The meeting will be televised live on local cable channel 18.

—Staff Reports

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