Sewer system rates going up 4% in Oxford

OXFORD » Sewer system users will see a 4 percent increase in their rates, starting with their January bills.

Along with approving their 2017-18 operating budget in the amount of $1.6 million, the Sewer Authority Board approved a rate increase for the last three quarters of the year during their Sept. 20 meeting.

For the sewer user who does not exceed the base rate of 5,000 gal. per quarter, the 4 percent rate increase from $75 to $78. For each 1,000 gallons used above the base rate, the fee will go from $15 to $15.60. The average residential user typically is billed for 16,000 gallons per quarter for a current

bill of $240. For that user, the new rate translates to $249.60

Last year, sewer users faced a 30 percent rate increase as the authority tried to bridge the gap between revenues and expenses, including a $27 million USDA loan that they were unable to make payment on.

The authority has developed a workout plan with the USDA and this year is looking for a much more modest increase to keep up with rising costs. They are also making efforts to sell the authority office building and a parcel of unused land on Brick Street. In addition the potential sale of

the entire sewer system is being considered.

When deciding on the 4 percent rate increase, the board discussed other options that would raise the same amount of money from users, including a 3 percent increase that would be applied beginning with the October billing cycle. The board opted against this approach since the October sewer bills are calculated for the service that has already been received.

Another option could be setting a service charge plus a rate per gallon rather than a base rate that is a benefit for low volume users.

“Next year, there could be a different name on the bill. They may say ‘that billing structure is fine, but we

don’t like it’ and they’re going to move toward one of these other options,” Executive Director David Busch said.

At this point the authority is operating as usual, but with an eye toward better revenue collection practices. This summer, septage receiving at the sewer plant dropped when one septage hauler was turned away for non-payment of bills, and an outstanding balance of about $23,000.

The board discussed adding past due fees to septage hauler invoices, with charges similar to the 10 percent past due charge sewer line users face when they do not pay their bills.

“We struggle with collections as it is. There needs to be a big incentive to have bills paid,” Busch said.