I have a new Facebook
friend. Her profile said that she lives in Newport, Oregon so I
looked up your water and sewer rates. These are unique in my
experience in that you charge people outside the city the same as inside the
city. You have only about 10,680 people in the city, so you apparently
are trying for as many customers as you can get to share the overhead. I
heard you have about 15,000 customers. You could probably attract
more if you make your minimum charges cover your overhead, lower unit rates to actual
unit costs, and drop the low-income discounts.
If
Newport uses its minimum charges to cover all overhead plus unit costs within
the minimums, low-income households won’t need discounts. It isn’t
base rates or monthly minimum charges that kill budgets; it’s high unit
rates. Low-income people who live many to a house can’t stay within
the minimum charge or even close to it when unit rates are high.
This goes double for sewer rates, units for which are generally
calculated from winter water use, which is presumed to all go down the sewer. Three
of the thirteen cities on our rate comparison chart still charge no unit rates
on sewer: Portland, Oregon; Medford, Oregon; and Redding, California.
Unit charges on sewage is a relatively new way to ration water and
is particularly unfair to low-income people who live many to a house. Your customers can’t cut the amount of waste
they put down the drain, but they can cut their use of the water needed to
carry their waste to the wastewater plant. Get rid of unit rates on sewer and make water units
cheap again. The poor and middle class
will be able to afford them again, and sewer pumps and pipes will be less
likely to clog.
Newport has only three water unit rates: Residential, including
Single Family and Multi-Family; Commercial, which includes governments;
and Single Family low income qualified, which has a 30% discount. You
have no such discount on water for Multi-Family, likely because apartment
landlords pay city utilities for their residents. Few unit rates are
a good thing. A single unit rate would
be better.
Newport's unit rates are otherwise flat (no tiers) and pretty high:
$4.24/1000 gallons for Residential; 4.77/1000 for Commercial; and $2.96/1000
for Single Family low income. These are water-rationing rates, but I
have yet to find a city without them.
They are remarkable in that residents have lower rates than non-residential
users.
Newport doesn’t have base rates, but rather minimum charges
according to service size, which are obviously not designed to cover all the
overhead, at $19.61 for Single Family Residential 5/8”-3/4” and $13.73 for
Single Family 5/8”-3/4” low income, which buys 4,625 gallons and 4,623 gallons
respectively. Multi-Family minimum charge starts at $37.42, which is
likely what your minimum charge for 5/8”-3/4” would be if your minimums covered
the overhead, as the city wants to get that covered whether an apartment is rented
or not.
Your
wastewater unit rates are also high.
They run $6.62 for Single Family and duplexes, with a minimum charge of
25.81, and $4.63/1000 for Single Family and duplexes low income, minimum
$18.07. Multi-family is $9.82/1000, minimum $29.76. This
is the same as paid by Commercial, which also has extra charges for Extra
Strength waste that needs more biochemical oxygen.
The biggest problem with water-rationing rates is that they cause
rates to rise far faster than inflation.
High unit rates are designed to cut use, but low minimums or base rates depend
on use to pay part of the overhead. When
they work as designed and people cut back on use to save money, rates must be
raised to cover the overhead. Raising
unit rates causes lower use, so they have to be raised again, which further lowers
use and rates are raised again.
This vicious pricing spiral continues until people can’t cut back
any further. Seattle may have gotten to
that point with water at $15.78/1000g on their highest tier inside the city and
over $18 outside it. Everybody ends up
paying more and more to use less and less water with water-rationing rates.
In any case, high unit rates are not justified by the
need to pay for water and sewer plants; they make it harder, not easier. Their impact on household and business
budgets hurts lower and middle-class households who use city water and sewer
plants and every sector of our economy except water and sewer rate consultants. They also reduce hygiene, fire safety, and
the beauty and livability of our cities.
Newport may regret these rates if Oregon has another katabatic
wind event like September 8, 2020 that blows wildfire right through your
town. Keeping property watered stores moisture in plants and soil
and keeps deciduous trees too wet to burn.
You should be encouraging irrigation, not discouraging it.
Coastal cities have problems with seawater infiltrating their fresh ground water. More irrigation can fill aquifers and keep the seawater out. Florida is probably having this problem because they are also rationing water by price and discouraging irrigation.
I
believe that Grants Pass also had minimum charges instead of base rates when I
lived here for two years in the ‘80s, because I recall my utility bills being
flat except in summer, when unit charges added only pennies to my bill.
Rycke
Brown, Natural Gardener 541-955-9040 rycke@gardener.com