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Paying for a Cleaner Future

Did You Know?

The rates MSD customers pay depend on the number of people using the system. The more people paying for service, the more MSD can spread costs among its customers.

If the number of residents grows or major businesses move into our community, costs per customer could decrease. However, if people and companies leave our community, the costs per customer may increase.

A Glance Ahead at Monthly Bills

We expect annual rates to continue increasing over the life of the program, and are working to keep the increases at 10½ percent per year or less. Today, the typical residential user pays an average of $29 per month for service ($350 per year). Based on MSD’s currently anticipated revenue needs, the typical residential user’s bill would rise to approximately $58 per month by 2022 ($700 per year in 2006 dollars).

Note: The above estimates are based on information available as of April 2006.

Our local sewer system belongs to you, its customers. MSD does not receive tax money or appropriations to pay for the system’s operation or improvements. Instead, we are funded entirely by the rates paid by system users. MSD works very hard to provide the highest quality service at the lowest possible price.

The changes recommended in the Wet Weather Program are necessary … not only to improve efficiency, but also to improve our community’s quality of life. We have to do this, and we will have to pay for it together.

Sewer rate increases already have begun. Rates rose last year by 12 percent, and this year they rose four percent. This means the average residential customer is paying another $1.31 a month this year over last year, and we expect rates will continue to rise over the life of the program.

We don’t like that any more than you do. We know, however, it is absolutely necessary if we are to stop the flow of raw sewage into our waterways.

We will work to limit the annual rate increases at 10½ percent — or less — over the course of the project. But, keep in mind that predicting rates five years from now, much less 15 or 20 years from now, is difficult. There is a lot of uncertainty. The economy, construction costs, the size of our customer base and inflation all are question marks. We will constantly look for the best solutions at the fairest price, keeping your safety — as well as your pocketbook — in mind.

In fact, the community’s ability to pay has already been a key factor in our decision making. Keeping service rates affordable for customers was one of our primary goals when we negotiated the terms of our Consent Decrees. And, proposed solutions were evaluated based on anticipated costs to the community. Those costs helped us determine which projects we ultimately selected for the program.

We want a great system. But we want an affordable system too.

So we’ll continue to look for ways to minimize costs and streamline our operations. We will also seek other means to supplement program funding. In addition, we are actively supporting a growing movement to create a national trust fund for sewer improvements. This fund would help communities like ours subsidize the costs of implementing federally mandated sewer system improvements and programs like MSD’s Wet Weather Program.

Comparison of Local Utility and Service Fees

The chart below compares typical utility and service fees paid monthly by the average Hamilton County resident. (Click the graph for a larger view.)

* Costs are for the most common service packages as of February 2006.