By Michele Smith
The Times
Water/Sewer Rate Study Presented to Dayton Council
Study shows utility rate increases will be needed to cover needed capital improvements
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March 22, 2018
DAYTON— Angie Sanchez, Managing Principal with Financial Consulting Solutions Group in Seattle, has been working with the City of Dayton for the past year to complete a water and sewer rate study.
Speaking at last week’s city council meeting, Sanchez said, “The goal of the study is to provide counsel to help the community make informed decisions. Financial sustainability can be achieved over the long term.”
The rate study used data which included the city’s population growth, along with utilities revenue, expenses, reserves, contingencies and debt servicing. It also factors in inflation. Sanchez said it will provide the city with a management tool to help determine the true cost of providing residents and businesses with water and wastewater services, and to help maintain the long-term health of the utilities.
The study is “timely,” considering some significant capital needs have been identified in the city’s recently completed comprehensive Plan for water and sewer.
The city has identified the need for $5 million for Water and $14 million for Sewer in the years 2018-26. Plans are also in the works for a new $13 million Wastewater Treatment Plant, to be built in 2021-22.
The rate study is recommending water and sewer rate hikes beginning in January 2019.
Dayton currently bills the typical residence $96.55 per month for water and sewer. The rate study shows the monthly bill going up an additional $12.93 beginning on January 1, 2019, and increasing over time.
“No one ever likes to face rate increases,” said Sanchez. “There is a point in time where your capital costs are going to catch up with you. Users of the system need to be contributing a little bit every once in a while, to make sure we have enough to meet our capital needs.”
Sanchez said the study is a flexible tool to be used to monitor and update numbers. If costs, revenues, or expenses change, the city can make necessary changes, to it.
City Administrator Trina Cole said the information for the study came from existing plans adopted by the city council, as well as actual costs.
“If anybody is interested in coming in and looking at the tool we now have, it’s very impressive. People are going to be able to utilize it for a very long time,” she said.
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