NOTICE OF
PUBLIC HEARING
ON
SETTING THE SEWER SERVICE CHARGE FOR 2013-14
Tuesday,
June 4, 2013 at 7:00 p.m.
Ironhouse
Sanitary District Office, 450 Walnut Meadows Drive, Oakley
On Tuesday, June 4, 2013, the Ironhouse
Sanitary District (ISD) Board of Directors will hold a public hearing at its
offices to consider setting the rate for the district’s sewer service charge
for fiscal year 2013-14. The new sewer service charge will take effect on July
1, 2013, and appear as a special assessment on the property tax bill for each
property ISD serves.
The board has worked diligently during
this extended economic downturn to remain below the established maximum rate of
$680 per ESU, a figure that was adopted by the ISD board on June 5, 2007.
KEY CONSIDERATIONS FOR
RATE SETTING
Over the past 6 years, the district has
slowly raised the annual sewer service charge to support its operating costs,
costs to build the new Water Recycling Facility (WRF), and to meet anticipated
loan payments for the new WRF. At the same time, the continued slowdown of new
development has resulted in fewer new ratepayers to help share the cost of the
district’s annual budget. Additionally, the district must provide adequate
reserve funds to pay for future infrastructure maintenance and replacement
costs.
WHAT THE DISTRICT IS
DOING TO KEEP RATES BELOW THE $680 MAXIMUM (IN FY 2013-14 AND BEYOND)
§
Reduced costs by $95,000 in FY 2013-14
(more each year after that for the next 25 years) by contracting with a solar
company to install solar panels (at no cost to the ratepayer) to offset power
demands.
§
Eliminated $100,000 annually in
regulatory monitoring costs on the district’s Oakley property, and to irrigate
farm fields on Jersey Island (achieved through good planning and reliable high
quality recycled water).
§
Realized staffing efficiencies through
automation at the WRF and downsizing through attrition as warranted.
§
Generating $300,000 in annual profit
from cattle ranching operations on Jersey Island.
§
Generating $90,000 annually by using
treated water to grow and sell hay.
§
Saving $190,000 by using grant funds to
pay for Recycled Water Feasibility Study. (The grant will ultimately fund the
entire study cost of $240,000 over two years.)
§
Implemented a 20% reduction in Director
benefit costs.
WHY MIGHT THE RATE
INCREASE FROM ITS CURRENT ANNUAL RATE OF $618?
The cost efficiencies mentioned above
are critical in maintaining the rate near $618. However, increasing costs for
items such as materials, supplies, insurance, professional services and fuel
could cause the rate to rise. These actions will continue to provide funding
that can be used for offsetting Capital Replacement Reserves.
