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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: May 6, 2010 <br /> Action Agenda <br /> Item No. g" Q <br /> SUBJECT: Efland Sewer Rates Report <br /> DEPARTMENT: Planning and Inspections PUBLIC HEARING: (Y/N) No <br /> ATTACHMENT(S): <br /> 1. Approved Efland Sewer Rate Increase INFORMATION CONTACT: <br /> Schedule Craig Benedict, Planning Director, <br /> 2. Rate Information Compiled and 245- 2592 <br /> Presented by Residents Kevin Lind(ey, Staff Engineer, 245-2583 <br /> 3. Historic Rate Structure <br /> PURPOSE: To receive a report on Efland sewer rates. <br /> BACKGROUND: Recently, County staff, including the Manager, Planning Director and Staff <br /> Engineer, met with residents concerned about the projected monthly sewer rate increases for <br /> the Efland sewer system. The group of residents included current Efland sewer customers and <br /> representatives from Justice United, a citizen empowerment group that deals with social justice <br /> issues in the County. <br /> The residents presented information comparing current sewer rates in other small municipal <br /> systems throughout the state researched by Triangle J Council of Governments to the projected <br /> sewer rates for the Efland sewer system in three years, which is the last of the approved series <br /> of rate increases designed to eliminate the General Fund subsidy of the sewer system. A study <br /> was done by Raftelis for the County approximately 1 % years ago. <br /> The comparisons showed the Efland rates would be higher than any other system of similar <br /> size in the state, assuming the rates do not change in the interim. Staff pointed out that all the <br /> systems used for comparison are being subsidized, based on their revenue to expense ratio. <br /> The residents agreed and said that in conversations with the various municipalities represented, <br /> the subsidies were maintained because their staff did not think residents could afford the full <br /> cost of the system. <br /> The residents offered several potential options for ways to reduce the eventual rates customers <br /> would be expected to pay. All present agreed that the existing rates, though higher than the <br /> rates of the last twenty years, were acceptable, but thought that the final expected rate in three <br /> years (July 2012) was too much of a burden on most households in the area. This is also <br /> compounded by an additiona! surcharge of $13 a month for the unique Richmond Hills <br /> subdivision lift station. <br />