Water Rate Increase for 2010

Annually the Covington Water District embarks upon one of its major financial activities – the preparation, evaluation and adoption of the subsequent year operating and capital budget.  A key element of the budget process is the evaluation and setting of water rates.

Rate setting contemplates a number of broad expense classes.  The cost of service, or more simply put those outlays necessary to deliver safe, reliable water to our customers 24 hours a day, 7 days a week, 365 days a year, figure prominently in rate development.  Cost of service consists of operating, maintenance, water quality testing, treatment, and conservation program expenses.  Additional factors include maintenance of target reserve levels, debt service coverage requirements, and system reinvestment or capital needs.

In September and October, the proposed budget was presented to the Board of Commissioners for their review and deliberation.  The 2010 budget was adopted on October 21, 2009, and includes rate structure changes which will result in an overall revenue increase of 3.2%. Individual customer increases will vary based on customer class and consumption.  The rate increase is effective with the bi-monthly bills generated January and February, 2010 which reflects the prior 60 days water consumption.  Summer rates are effective from June 1 through September 30.

The 2010 residential rates for winter and summer usage are as follows:

Water is billed in increments of 100 cubic feet (1 ccf) which is equal to 748 gallons.  The total water bill is largely dependent upon consumption; conservation can play a significant role in keeping your water bill manageable.  Helpful conservation tips for indoor and outdoor water use are located here on our website.  Click here to view the full water rate table or call Customer Service at (253) 631-0565 if you have any questions.