Sewer Rates Calculation and Budget Breakdown
Sewer rates in Vernon are calculated based on property type, with options for metered usage or Equivalent Dwelling Units (EDU). The allocation of EDUs is done using Tax Assessment records. The budget breakdown includes various expense categories such as admin salaries, professional fees, treatment costs, and more.
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Presentation Transcript
VTMUA VTMUA SEWER RATE SEWER RATE BREAKDOWN BREAKDOWN
SEWER RATES SEWER RATES How are Sewer Rates calculated? Choice: Metered or EDU? How are properties estimated?
3 SEWER SEWER RATES RATES Sewer rates are calculated for each user based on the type of property (commercial or residential). Utilities can use metered units to charge by gallon (usually in water utilities because water lines are pressured) or via an Equivalent Dwelling Unit (EDU) The sewer system in Vernon is not a pressurized system at the site of each property for sewer flow. Water systems typically use a meter for pressurized usage, not sewer systems. The properties on the sewer system did not have meters specifically for sewer usage and in accordance with law prohibiting charging different users differently, the EDU system was chosen. The VTMUA, in order to allocate EDUs consistently, opted to use the Tax Assessment records with the Township. However, these were not used consistently across the board.
EDU BREAKDOWN EDU BREAKDOWN EDUs calculation and Gallonage Equivalents
5 BEDROOM COUNT BEDROOM COUNT AND ASSESSMENT AND ASSESSMENT The at any given property of a number of bedrooms does not affect overall assessment property. The total assessment of a property is based on usable square footage and the room count is for informational purposes only. Assessment is based on highest and best use of a property. The assessment record has to represent what is happening in the market. The highest and best use for a loft or rec room is a bedroom, which is reflective of the market (going back to the 1990 s) AND the highest and best use of these rooms if the property was sold or rented would reflect usage as a bedroom.
6 TOTAL TOTAL EDUS EDUS 2023 EDU Rate (1443.30/EDU) 704,980 EDU Count Gallons (250gpd) Gallonage Rate Commercial Residential (250gpd) 488.45 44,571,245 1262.40 1,822,022 115,194,000 159,765,245 gallons per year $0.0161/gallon with a standard min charge Total 1750.85 2,527,002
BUDGETBREAKDOWN 7 Admin Salaries & Wages - 1.17% Admin Fringe Benefits - 0.21% BUDGET BREAKDOWN BUDGET BREAKDOWN Admin Professional & Legal Fees - 5.36% Office Expenses - 0.38% Insurance - 0.73% Engineering - 0.88% Cost of Providing Services-Personnel - 2.29% Cost of Providing Services-fringe - 0.40% Treatment and Disposal - 81.40% Pumping Expenses - 4.23% Capital - 2.94%
COST PER COST PER EDU Admin. Salaries & Wages FICA/Medicare/DCRP Admin Professional & Legal Fees Office Expenses Insurance Engineering Personnel for Providing Services Personnel FICA/Medicare/DCRP Treatment & Disposal (SCMUA & debt service) Pumping Expenses Capital TOTAL ANNUAL COST PER EDU EDU $16.90 $3.04 $77.38 $5.50 $10.55 $12.71 $33.05 $5.78 $1,174.87 $61.07 $42.45 $1,443.30
9 HOW WE CAN REDUCE RATES HOW WE CAN REDUCE RATES INCREASE INCREASE CONNECTIONS / CONNECTIONS / DEVELOPMENT DEVELOPMENT Working with developers to develop town center/SSA Planning expansion into existing SSA where properties are unable to connect Decreased VTMUA connection fee by 50% Discussions with SCMUA to adjust how connection fees are collected and put into rate stabilization funds vs developer rebates EXPANDING SEWER EXPANDING SEWER SERVICE AREA SERVICE AREA PUBLIC/PRIVATE PUBLIC/PRIVATE PARTNERSHIP PARTNERSHIP TRANSFER STATION TRANSFER STATION Transfer station to accept grease trap waste for treatment to increase existing flows and charge on a per gallon basis SCMUA seemed favorable to reviewing details from the vendor interested in this partnership This would create a new revenue source, which would offset the budgeted rates to traditional users. Final stages of planning expansion to areas across the Town Center Included areas of Township not previously in the existing SSA Next step- County application for SSA once we have the preapproval of the NJDEP
10 SUMMARY SUMMARY There is a bottom line budget that needs to be met to pay for all SCMUA fees, debt service, capital expenses, and operational costs. If the number of EDUs increases and the budget stays the same, the rate decreases per EDU. If the number of EDUs decreases, the rate per EDU would increase. Metering would not change the ultimate issue with the high rates, as the per gallon fee would be high in comparison to other municipalities AND there would need to be a minimum charge per year. Metering is unlikely due to the connection types to the sewer system. Estimated costs for metering (if this was a water/sewer utility) would be approximately $1200 per unit plus the cost of installation, monitoring, reading, increase in billing, additional debt service expense, etc plus, adding a water meter to a closed private water system is not desirous.
