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Capacity Rental Charge Program Begins January 1, 2010

In order to ensure that District customers pay their fair share of the costs of components of the water and sewer system infrastructure that provide general benefit to the respective systems, the District has established a program that will allocate a capacity rental charge to commercial customers (i.e. non-single family residential property owners) who use more capacity in the water or sewer system than was purchased for the property.  The use of excess capacity will be determined by comparing records that reflect the level of water and sewer system capacity owned by a property, typically acquired at the time of connection, against water meter readings that show the quantity of water consumed at the property during a bimonthly billing period.   

 Under the rental program, the District will collect 1% of the cost of the Capital Facilities Charge for each Equivalent Residential Unit (“ERU”) of water and/or sewer service of excess capacity used during the two month billing period.  An ERU is the amount of sewer or water system capacity used by the average single family residence.  The District will use a “rolling” twelve month period to determine the level of excess use.  The rolling average will level demand and, by reducing the impact of peak consumption periods on the excess capacity calculation, will have the effect of reducing the amount of rent burden on customers.  With an ERU costing approximately three to four thousand dollars for each system, the rent for an ERU will be fifteen to twenty dollars per month. 

The capacity rental program was originally set to begin in 2009.  To make certain that the data that supported the determination of paid capacity was accurate, as well as to fine tune some of the considerations for multi-use parcels, the Board delayed the program until 2010.  It is not expected to create a significant burden on most commercial customers, however, customers are free to come in to Development Services and purchase additional capacity in the system to avoid, or limit, future system rent obligations.  Water conservation will also lower, or eliminate, rent burden on both the water and sewer side of the bill and is encouraged.  If you have questions, please call Morgan Dennis, at 253-945-1615.