WQD FEES – FY 2012

The cost of protecting public health and the environment

Why Increase Fees?

• General Revenue (GR) has been cut in recent years and WQD’s share is projected to be reduced to zero by 2016.

Why Increase Fees?

• Cost of employee benefits mandated by legislature (health insurance, retirement, etc.) continues to increase which adds to overall expenditures

The Numbers• General Revenue has been reduced and WQD’s allocation

will be reduced to zero by 2016• DWSRF ARRA funding will be exhausted after 2012• Employee benefit costs continue to rise• Federal mandates continue to increase with minimal

increase in funding

Basis for Increasing Wastewater Workload

• Clean Water Act Action Plan

• Data Rule• Electronic Report

Rule• SSO/Wet Weather

Rule

• 316(b) Cooling Water Rule

• ELGs for Storm Water• WET Testing

Basis for Increasing Drinking Water Workload

• Administered by EPA today but transferring to DEQ by 2012:– Stage 2 Disinfection By-Products– Long Term 2 Enhanced Surface Water Treatment Rule– Groundwater Rule

• Administered by DEQ– Radiological Contaminant Rule– Revised Total Coliform Rule

What’s to Come…

FEES

Eliminating the Funding Gap

• Wastewater– Added application fees– Revised the pollutant loading portion of the rating sheet– Increased $/point– Pay based on “units” not one highest fee

• Drinking Water– Fees will be based not only on complexity but population

• Plan Review– Increases for all permits

• Operator Certification– Increase certification costs across the board

“Leveling the Playing Field”

• Existing PWS Fee Structure

System System Type Population 2011 PWS Fee Cost per Capita

Town A Ground Water 17112 $1,286.57 $0.08

Town B Surface Water 17783$5,319.70

$0.30

Town C Surface Water 598000 60911.04 $0.10

“Leveling the Playing Field”

• Proposed Fee Structure

System System Type Population 2012 PWS Fee Cost per Capita

Town A Ground Water 17112 $7,758.60 $0.45

Town B Surface Water 17783 $10,209.90 $0.57

Town C Surface Water 598000 $159,375.00 $0.27

Fee Structure

• Previous fees based on type of system and source of raw water.

• Proposed fees are based on type of system, type of treatment and population served.

• A declining block rate is proposed as follows:

Population 0-500 500-2000 2000-10000 10000-100000 >100,000

Cost per Capita $0.75 0. 60 0.45 0.30 0.25

Fee Structure

Industrial NPDES Fee Increases

• Currently the Industrial Permitting Program is subsidized by GR and other revenue. Over time we will reduce the subsidy and therefore a fee increase will be needed to make up the deficit.

Industrial NPDES Fee IncreasesIndustryName

FY11 FY12 FY13 FY14 FY15 FY16

Large Paper Industry 12,374.00 15,843.00 22,215.00 28,233.00 28,966.00 29,700.00

Power Plant 6,130.00 7,660.00 10,468.00 13,120.00 13,443.00 13,766.00

Agriculture Related Activity

1,465.00 1,596.00 2,388.32 3,136.32 3,227.00 3,318.00

Municipal NPDES Fee IncreasesExample

CityName

FY11 FY12 FY13 FY14 FY15 FY16

Population > 100,000

39,209.00 48,955.00 57,228.00 60,515.00 83,066.00 106,207.00

Population > 10,000

5,608.00 6,320.00 7,384.00 7,777.00 10,704.00 13,678.00

Population < 10,000

1,203.00 1,450.00 1,752.00 1,845.00 2,540.00 3,246.00

• GR along with other revenue was directed towards keeping fees down

• However, by 2016 the fee will have to cover all costs due to zero GR

Questions