Council approves 2011 wastewater rates
Municipal wastewater charges to rise 3.2%
The Metropolitan Council has approved an overall increase of 3.2% in municipal wastewater charges for 2011.
The Council operates seven wastewater treatment plants, which treat the sewage for 90% of the region’s population. Pictured here are interns at the Metro Plant, measuring gases rising from the aeration tanks.
Most of the increase was needed to offset a drastic decline in revenues from the sewer availability charge (SAC), a one-time fee imposed by MCES to local governments for each new connection to the metropolitan disposal system. The Council’s SAC reserve fund balance has dropped from $72 million at the end of 2007 to an estimated $16 million at the end of 2010, due to the economic recession and decline in housing starts.
A new law allows the Council to shift, temporarily, funds from municipal wastewater charges to the SAC reserve fund. See June newsletter story on SAC and the new law. The Council action on July 28 included approval of a full schedule of wastewater rates and charges for 2011, including a hike in the 2011 SAC rate of $130 to $2,230 per residence or equivalent.
Jason Willett, finance director for Metropolitan Council Environmental Services (MCES), said the 2011 municipal wastewater charge increase will translate into an additional $2.78 for the average household in the region, or 23 cents per month in 2011.
"We’ve increased SAC far more than the wastewater rates, even with the SAC shift,” said Council Member Wendy Wulff. “I don’t think anyone can say we haven’t made an effort to share the pain."
Rates still 40% lower than national average
The 3.2% increase compares with an average projected increase in municipal wastewater rates nationwide of 8.1% in 2011, according to the National Association of Clean Water Agencies. MCES rates are about 40% lower than the national average.
The housing market decline has allowed MCES to delay a number of growth-related projects, which will reduce its capital improvement program for the next several years. See larger graph, with data through 2015 (pdf).
The housing decline has allowed the Council to delay a number of growth-related projects, which is projected to reduce capital expenditures by approximately 25% over the next five years. The 2011 budget will be finalized and adopted later this year.
The regional wastewater collection and treatment system is supported entirely by user fees. The total MCES budget for 2010, including operations and debt service, is $213 million.
"The environmental performance of the wastewater treatment plants continues to be exceptional,” said Bill Moore, MCES general manager. “As of June 2010, we are on an unprecedented run of 41 consecutive months without a single discharge violation. We’re achieving great results for our customers at a very good value.”