Ada Oklahoma News | Water, Sewer, & Garbage Rate Increase

Water, Sewer, & Garbage Rate Increase

Posted:12/1/2015 at 12:30:15 PM

The city council has approved a 5 year rate plan for the city's water, sewer, and garbage rates. Here are some frequently asked questions and answers so we can understand why and how these changes are going to happen.

Q: Why is there going to be a rate increase?
A: The City of Ada is beginning a comprehensive overhaul of its water supply system. With an estimated 1 million gallons of water lost between Byrds Mill Spring and the treatment plant in Ada each day (at peak times), the city and its residents cannot afford to rely on dilapidated infrastructure any longer. An old leaking pipeline is responsible for the water loss. Our newest transmission line from Byrds Mill Spring is approaching 40 years old. The other one was built in the 1930s. The oldest line will be replaced.

Q: How much is this project going to cost?
A: The total cost for the entire water system improvement project is estimated at $29 million. This will pay for a larger, new transmission line between Byrds Mill Spring and the city's water treatment plant, and an additional water well, along with upgrades to the three existing water wells, Byrds Mill Spring, and the water treatment plant.

Q: When will work begin?
A: The project is scheduled to begin by the end of 2015, and should be completed by the spring of 2017.

Q: How will this affect my utility rates?
A: Ada water, sewer and garbage rates will rise. The first 5 year rate plan has been adopted and will be effective beginning with October 1st "water usage" which will appear on your December, 2015 bill. The five year plan is as follows:

Water Rates

	Water Usage Beginning:
Customers Inside City Limits	Current	Oct 1, 2015	Jan 1, 2017	Jan 1, 2018	Jan 1, 2019	Jan 1, 2020
Minimum Charge* (for first 200 cubic feet) *A portion is allocated to the Water Development Fund	13.00	16.90	20.30	20.30	20.30	20.70
Usage Over the Minimum (per additional 100 cubic feet)	2.51	3.27	3.92	3.92	3.92	4.00

Customers outside city limits will be charged at 1 1/2 times the rates shown above.

The rates will be reviewed as needed; but, not less than every five years to assure there is funding to pay the debt obligations and to cover the cost of providing the service.

Q: Why will sewer and garbage rates increase?
A: Consultants also determined that other city utility rates needed to be adjusted in order to maintain and cover the actual cost of services being provided. As a result, sewer and garbage rates will also adjust. The five year plan is as follows:

Sewage Rates

	Sewer Usage Beginning:
Customers Inside City Limits	Current	Oct 1, 2015	Jan 1, 2017	Jan 1, 2018	Jan 1, 2019	Jan 1, 2020
Minimum Charge* (for first 200 cubic feet) *A portion is allocated to both the Sewer System Fund and Environmental Projects Fund	12.85	16.70	18.35	20.20	22.20	24.40
Usage Over the Minimum (per additional 100 cubic feet)	0.74	0.96	1.06	1.16	1.28	1.40
Residential Charge Cap	22.95	29.81	32.82	36.04	39.68	43.52

Customers outside city limits will be charged at 1 1/2 times the rates shown above.

Residential Garbage Collection Rates

	Current	Jan 1, 2016	Jan 1, 2017	Jan 1, 2018	Jan 1, 2019	Jan 1, 2020
95 gallon polycart w/ recycling	16.55	18.20	20.00	22.00	24.20	26.60
65 gallon polycart w/ recycling	13.20	14.50	15.95	17.55	19.30	21.25

Unlike the water rates increase schedule, sewer and garbage inside and outside city limits reflect incremental annual adjustments for the next five years. As with water, the rates will be reviewed as needed; but, not less than every five years to assure the City is covering the cost of providing the services.

Q: Why isn't the water development fund being used to pay for the new water transmission line?
A: The water development fund was established to purchase property, water rights, and protect our water source.

Q: Why isn't Proposition 1 being used to pay for the new water transmission line?

A: Proposition 1 is earmarked for infrastructure, such as streets, and water and sewer distribution systems. In fiscal year 2014-2015. $2.8 million was collected. The majority was spent on street repairs, the new south side water tower, and replacing aging sewer lines.