Cheney’s City Council received an overview of what a revised water rate structure might look like should such a measure be implemented in the near future.
During an information-only presentation at the council’s June 25 meeting, representatives from FCS Group consulting firm gave four alternatives for making changes to the city’s water policies — two of which could be implemented almost immediately following council approval.
FCS project manager Andy Baker outlined details of the two alternatives – referred to as “Full Best Practices” and “Phased Tiers.” Both rate proposals would target residential water usage as the water study done by FCS indicated most of the city’s problems with supply and demand stem from this area.
Currently, Cheney single-family residential water users are charged a $10.50 base rate plus a usage fee calculated at $1.47 per 100 cubic feet of water. Multifamily residential users have the same base rate, multiplied by the number of units in the complex and the same usage fee per 100 cubic feet.
Neither of the two proposed alternatives would change the base rate. Under the “Full Best Practices,” users would be assessed different amounts in four tiers of water consumption. Those using less than 800 cubic feet would see their usage fee drop to $1.10 per 100 cubic feet, creating a lower rate for efficient water users and affordability or low-income residents.
“Having a lower rate for what is essential to human life is a sound practice,” Baker said.
Usage between 801 – 3,200 cubic feet would remain at $1.47. Under Tier 3, usage between 3,201 – 6,500 cubic feet would be charged at $2.94, the understanding being much of this use would result from inefficient irrigation practices, inefficient systems or a combination of both.
The targeted group of residential users would be those exceeding 6,501 cubic feet where a $5.88 per cubic foot fee would be assessed. The intention would be to encourage these users to bring their water usage — mainly summer irrigation — into more efficient ranges while also generating funding for new conservation programs or supply projects.
Under the “Phased Tiers” alternative, the usage fee of $1.47 per 100 cubic feet would be in place through 6,500 cubic feet, after which it would rise to $2.94. The difference would be that city officials would communicate to users in each tier where their water consumption falls: efficient water user, normal water user, inefficient water user and wasteful water user under Tier 4 in order to try and change water use practices.
Baker said their study showed water usage the past three years increases from June – September for all users, but is heaviest among single-family residential as these users try to keep green lawns from turning brown in the summer heat. Total water usage tends to peak in August, with an average consumption of 9.69 million cubic feet, or 72.5 million gallons.
Analysis of the usage showed the single-family residential users had a peaking factor (average use per month divided by the winter use average) of 4.5, while multifamily residences had a peaking factor of 1.8. Commercial users peaking factor came in at 5.8, but Baker said they chose not to include these customers in any rate restructuring because their variety made it difficult to define what efficient water usage would look like.
“We don’t want to set rates on commercial that would be punitive on successful businesses,” he said.
During questioning, Councilman Dan Hilton pointed out that some larger users simply had larger lot sizes, rather than inefficient irrigating practices and could be discriminated against under the new rates.
“Just because you have a bigger lot doesn’t mean you have all this money to spend on water,” he added.
Baker acknowledged this, and said there are rate strategies that could be implemented in the alternatives to calculate water based on lot sizes.
Councilman Vince Barthels pointed out that commercial water usage could be influenced by irrigation at city parks and Cheney School District sports fields, and asked how hard it would be to separate out this data. Baker agreed, but added that because such facilities have been under irrigation restrictions in the past, their contributions to the overall commercial usage wouldn’t change the data much.
“We’ve had restrictions for a long time,” City Administrator Mark Schuller said. “A decade.”
The following are hypothetical water bills comparing summer rates for the current Cheney water rate usage structure and the proposed “Full Best Practices” rates.
Low usage customer – 1,000 cubic feet
Existing Proposed
Base $ 10.50 $ 10.50
Tier 1 $ 14.71 $ 8.80
Tier 2 $ 0.00 $ 2.94
Tier 3 $ 0.00 $ 0.00
Tier 4 $ 0.00 $ 0.00
Total $ 25.20 $ 22.24
Medium usage customer – 2,200 cubic feet
Existing Proposed
Base $ 10.50 $ 10.50
Tier 1 $ 32.34 $ 8.80
Tier 2 $ 0.00 $ 20.58
Tier 3 $ 0.00 $ 0.00
Tier 4 $ 0.00 $ 0.00
Total $ 42.84 $ 39.88
High usage customer – 7,000 cubic feet
Existing Proposed
Base $ 10.50 $ 10.50
Tier 1 $102.90 $ 8.80
Tier 2 $ 0.00 $ 35.28
Tier 3 $ 0.00 $ 97.02
Tier 4 $ 0.00 $ 29.40
Total $113.40 $181.00
All customers under this proposed rate structure would see some savings for winter water consumption.
Figures courtesy of FCS Group
John McCallum can be reached at [email protected].
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