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AN~~~+G <br /> <br />November ??, 2008 <br />Dear Efland Sewer Customer, <br />On "DATE" at "TIME" there will be a public hearing at "LOCATION" <br />to discuss raising the rate for the Efland Sewer System. <br />The current rate of $4.50 per 1000 gallons has been in place since the system was <br />established in 1987. In the twenty years since the start of the system, the cost to run the <br />system has increased steadily. The rate that the County charges today only pays for 25% of <br />the cost of running the sewer system. The County currently pays the remaining 75% of the <br />system's cost. <br />Most sewer systems set their rates so that 100% of the costs of the system are covered <br />by the rates. In other words, no subsidy from the County would be required. The rate <br />schedule that will be presented at the public hearing will raise the rate this year and also the <br />next two years. At the end of this three-year cycle, the rate should be high enough to cover the <br />costs of operating and maintaining the sewer system. The proposed rate schedule is shown on <br />the back of this letter. The effect on your monthly bill is also shown for this year and the next <br />two years. <br />As an example of the differences between the costs to run the system and the current <br />rate, the County pays the Town of Hillsborough about $140,000 per year to treat the <br />wastewater from the Efland System. The County only collects about $63,000 per year from <br />the rates. So, the treatment costs alone are more than double what is collected from our <br />customers. In addition to the treatment costs paid to the Town of Hillsborough, the County <br />must pay about $60,000 per year for routine maintenance, utilities, billing and permit fees. <br />Finally, the Efland Sewer System is required to have astate-issued operating permit. <br />One of the conditions of that permit is that we set aside money every year for future projects <br />that we know are coming up. This is called a Capital Improvement Plan. Over the next ten <br />years, it is estimated that the Efland Sewer System will need about $500,000 in major repairs <br />and rehabilitation. This means that we should be saving about $50,000 per year to cover these <br />projects when they need to be done. <br />If you have any questions regarding this rate increase before the public hearing, please <br />feel free to contact me at (919)245-2313. <br />Sincerely, <br />R. Kevin Lindley, PE, MCE <br />Efland Sewer System Operator <br />Orange County <br />