MWRD has announced the 2016 User Charge rates for its Large Commercial-Industrial Users and Tax-Exempt Users. It is generally good news for these communities. Due to the rate smoothing mechanism worked out between MWRD, industry representatives, Gabriel, and other consultants at the Blue Ribbon Panel, the 2016 rate changes are proportional to last year’s changes, with the exception of the OM&R factor which was not part of the rate smoothing agreement. As with the 2015 rates, the 2016 rates for industrial users and tax-exempt users are the same.
Volume rates will increase, while BOD and SS rates will be reduced. The OM&R factor will decrease by 12% – however, the decreased OM&R factor is actually an increase in the amount a User owes to MWRD since it is a decrease in the tax credit going towards User Charge.
Volume = $255.02/MG (+1.8% change from 2015)
BOD = $234.95/Klbs (-2.3% change from 2015)
SS = $148.33/Klbs (-3.7% change from 2015)
OM&R factor = $0.344 (-12% change from 2015)
- MG = million gallons
- Klbs = thousand pounds
- OM&R factor: Operations, Maintenance & Replacement Factor; tax credit applied to User Charge fees
We appreciate that MWRD has listened to the concerns of Gabriel and the User community to keep the User Charge rates steady, as well as decrease the burden of the User Charge fees in terms of the total MWRD budget. Overall, Users are responsible for a smaller percentage of MWRD’s Inflow & Infiltration (I&I) fees in 2015/16 than they had been prior to the Blue Ribbon Panel changes.
If you have any questions about how these rate changes will affect your total User Charge fees next year, contact Antonio Tabacchi or Brigid McHale at waterdept[at]gabenv.com or 773-486-2123.