23 Apr OWASA Proposes Fiscal Year 2025 Budget, Calls For Rate Increase
Public Hearing Announcement:
The OWASA Board of Directors invites community feedback on a proposed budget and rate increase for Fiscal Year 2025 at an upcoming public hearing. The public hearing will take place on Thursday, May 9 in the OWASA Community Room at 400 Jones Ferry Road in Carrboro at 6:00 p.m. You can register to speak at the meeting by emailing Clerk to the Board Andrea Orbich by 3 p.m. the day of the meeting.
About the proposed budget and rate increase:
The proposed rate increase is necessary to advance the investments in infrastructure, operations, and people needed to to ensure a resilient and sustainable future for our community’s utilities. The proposed budget includes several projects, including enhanced removal of PFAS from drinking water with a new treatment facility. The project is estimated to cost $75 million; accounting for nearly half of the proposed rate increase. We continue to pursue outside funding to relieve some project costs, including federal and state funding and participation in two class-action lawsuit against PFAS manufacturers.
Other critical investments included in the budget include:
- Water line replacements to improve resiliency and reliability of drinking water delivery
- Design of a new drinking water clearwell, an important part of our water treatment and distribution infrastructure
- Gravity sewer collection rehabilitation to ensure environmental protection and reduce sanitary sewer overflows
- Key infrastructure improvements at the Mason Farm Wastewater Treatment Plant, including the completion of critical infrastructure rehabilitation and safety improvements throughout the facility
- Instrumentation and control improvements throughout OWASA’s facilities to ensure secure and up-to-date technology
A proposed rate increase of 15 percent would increase the typical household OWASA bill by $12.32 per month (for 3,000 gallons of water and sewer service). Proposed rate increases would go into effect October 1, 2024. Regionally, OWASA’s rates for water and sewer combined are comparable to neighboring utilities, according to the University of North Carolina’s Environmental Finance Center’s NC Water and Wastewater Rates Dashboard.
To alleviate the pressure on water bills, the proposed budget does not include OWASA’s implementation of less time sensitive projects, including participation in the Western Intake Partnership. Delaying participation in the WIP would save our customers money without significant added water supply risk. If the budget is approved as proposed, OWASA will work with the Partnership to ensure that we can rejoin at a later date when the water is needed on a regular basis. This cost-saving option is available because of the community’s commitment to water conservation, which helps to delay costly additions in water supply and capacity.
Investment in the community’s water and wastewater system comes solely from the rates and fees charged for utility service, not tax revenue. Nearly 50% of the bill that customers pay for services goes toward funding critical capital improvement projects to upgrade pipes, pumps, and other important infrastructure. These investments will serve our community for many years to come. The other 50% supports the maintenance and operation of the system 24 hours a day, 7 days a week, 365 days a year.
The Care to Share Program is supported by donations and provides bill assistance to local families unable to pay their water bill. In order to increase access to bill assistance, OWASA customers will soon be able to apply for assistance directly from OWASA, and support will be increased to a maximum of $225 per family each year. OWASA customers can sign up to donate (or increase their existing donation) to Care to Share at owasa.org or by calling OWASA Customer Service at 919-537-4343.