Homes and businesses in James City County will be paying more for water starting in July if James City Service Authority implements tweaks to water and sewer rates and a pair of proposed service fees.
JCSA estimates show the average water and sewer bill for a residential customer who uses 5,000 gallons of water per month climbing by $0.95 to $31.30 per month if the proposed changes go into effect.
The utility has not raised its water rates since 2008.
The proposed changes would lower the monthly rates for water and sewer services for most residential customers, however the new fees — one each for water and sewer services — would make up the difference and account for the estimated $0.95 per month increase.
Should the current proposal go into effect, most residential customers would pay a fixed quarterly fee of $5.66 for sewer and $7.22 for water. JCSA is one of the few utilities in the area that does not currently charge fixed fees.
The water rate would decrease by 38 cents to $2.47 per 1,000 gallons for most residential customers, though it would increase from $3.45 to $3.65 per 1,000 gallons for higher density residential users like apartments and for all non-residential users. A full breakdown of rate changes is available by clicking here.
By charging the fees, customers who do not use any water or sewer services would still be billed, thereby ensuring a steadier stream of revenue for the utility, according to a memorandum from JCSA General Manager Doug Powell. JCSA’s revenue is currently generated by billing for usage, which fluctuates over time.
“The idea of the fixed charge is that JCSA has significant costs to maintain the infrastructure regardless of usage and that the utility should not be completely reliant on variable revenue,” Powell wrote in the memorandum.
Powell said an increase in revenue for water services is necessary to keep the water program solvent. Current rates charge most residential customers $2.85 per 1,000 gallons, good for $14.25 per month for the first 5,000 gallons. About two thirds of JCSA’s residential customers use 5,000 gallons of water or less per month.
The City of Williamsburg, which has the next lowest rate in the region, charges $24.75 for the first 5,000 gallons of water.
A firm hired by JCSA to study its rate structure recently completed its work, determining the utility needs to raise rates over the next decade. Were the utility to follow the firm’s recommendations, the monthly bill for the average residential customer would double by 2025.
The extra money is needed to address looming problems facing the utility.
JCSA currently withdraws its water from aquifers beneath the ground. The withdrawal is contingent upon a permit from the Virginia Department of Environmental Quality, which is currently considering lessening the amount of water JCSA can pump from the ground from 8.8 million gallons per day to 3.8 to 4 million gallons per day.
Should that change go into effect, the county would immediately need another source of water. Newport News Waterworks has extra water to sell. Building the infrastructure to access that water and securing a perpetual agreement for service from that utility would likely require JCSA to spend more than $50 million on top of what it actually pays for water from Newport News.
The utility must also confront costs associated with participation in a regional sewer plan. The Hampton Roads Sanitation Division, which operates wastewater treatment plants throughout the region, must perform repairs to the region’s sewers to bring them into compliance with DEQ and the U.S. Environmental Protection Agency. That work is projected to cost about $2 billion in the coming years.
A public hearing will be held April 14 for JCSA customers to share their thoughts on the proposed changes to billing. JCSA staff continues to work on the utility’s budget for the upcoming fiscal year — which runs from July 1 through June 2016 — and proposed rates and fees could change.
The decision is ultimately in the hands of the JCSA Board of Directors, which is comprised of the James City County Board of Supervisors. The board cannot take any action to change rates prior to the April 14 public hearing.
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