Posts Tagged ‘water rates’
October 23, 2012Des Moines Water Works Announces 2013 Budget and Zero Rate Increase for Most Customers
DES MOINES, Iowa (October 23, 2012) – The Board of Water Works Trustees has proposed Des Moines Water Works’ 2013 calendar year budget, which includes a zero rate increase for Des Moines and wholesale water customers. In some communities served by Des Moines Water Works – such as unincorporated Polk County, Pleasant Hill, Cumming, Alleman and Runnells – who have more significant infrastructure needs, Des Moines Water Works has increased rates for residential customers by five percent.
The proposed budget includes $50.4 million of operating revenue. Operating expenses are budgeted at $33.3 million, while capital infrastructure costs are budgeted at $19.4 million. The Board of Water Works Trustees will hold a public hearing for the proposed 2013 budget on Tuesday, November 27, 2012, at 3:30 p.m.
“The Board’s actions are the result of significant efforts by staff to reduce costs during a period of difficult economic challenges for our customers,” said Bill Stowe, CEO and General Manger, Des Moines Water Works. “However, a zero rate increase will not likely be repeated as the Board moves toward greater investment in the water utilities’ infrastructure and rate increases more consistent with the challenges of producing and delivering water.”
For a complete listing of Des Moines Water Works’ 2013 water rate structure, visit www.dmww.com. New water rates will go into effect April 1, 2013, for those customers with rate increases.
Water Rate Increase Effective April 1, 2012
Last October, Des Moines Water Works Board of Trustees approved water rate increases that will be effective on water bills beginning April 1. Volume charges for water will increase $0.06 per thousand gallons for residential customers in the City of Des Moines. Water charges for a typical four-person household will increase approximately $0.45 per month. On average, a two-person household will see an increase of approximately $0.22 per month. Water availability charges are not changing.
For more information on your water rates, visit www.dmww.com. If you have any questions, please contact Des Moines Water Works at 283-8700.
A Breakdown of Capital Improvements
Water Utilities are in a high infrastructure intensive industry. Des Moines Water Works (DMWW) maintains over 1,360 miles of buried water mains which have 9,800 valves and 8,900 fire hydrants. We have over 80,000 water meters and automated reading devices serving our customers. We soon will be adding a third water treatment plant that adds capacity and reliability in water delivery to our customers. Each of these treatment plants have multiple mechanical, electrical, and controls systems that require a high degree of maintenance to insure these systems work at peak efficiency to allow us to produce the highest level of quality water at the least possible cost.
The Board of Water Works Trustees have recognized the utility can most cost effectively maintain our infrastructure assets by generating the necessary capital through water rate revenue. This allows us to pay for the maintenance and replacements on “pay as you go basis.” The 2011 utility budget included an upcoming rate increase will allow a limited operating budget growth to 4.4% which will produce an estimated $12.8 million for new capital improvement projects after debt service obligations are met. We will be investing $4.6 million in building and facility maintenance, $5.5 million in the water main distribution system, and $1.4 million in treatment plant improvements as the major areas of focus for 2011.
We will continue to maintain the infrastructure to maximize its life so we can continue to deliver Water You Can Trust for Life.
Water Rate Increase Effective April 1
Last October, the Des Moines Water Works Board of Trustees approved water rate increases that will be effective on water bills beginning April 1. Water availability charges for most residential customers will increase $1 per month. Volume charges for water will increase $0.27 for residential customers in the City of Des Moines. Total water charges for a typical four-person household will increase approximately $3.00 per month. On average, a two-person household will see a total increase of approximately $2.00 per month.
For more information on the rate increase, please refer to an October 2010 blog article.
If you have any questions regarding your bill, please contact a Customer Service Representative at (515) 283-8700.
What is DMWW Doing to Control Costs?
DMWW sets water rates to adequately fund operation and infrastructure investments to ensure high quality water to our customers. Even though water consumption has declined, the utility has experienced rising costs. DMWW pays all of its operating expenses but is not collecting sufficient revenue to pay for the needed infrastructure improvements. Instead of taking on debt to invest in improvements, a water rate increase has been approved to help bring revenues in line with costs.
Costs increased 8% in 2009 due to treatment chemicals, system maintenance labor and materials, lime softening residuals disposal and employee benefits. Staffing levels vary little in periods of reduced consumption. Our treatment facilities and distribution system must be maintained regardless of the amount of water consumed.
DMWW has a constant focus on containing costs. Recent efforts to reduce costs include:
- The addition of two treatment plants, one in 2000 and one later this year, resulted in only one staff addition
- Customer pre-termination calls that have reduced field service collection cuts by 25%, thereby allowing field service staff to focus on other areas like more frequent testing of large meters
- E-Statements to reduce the cost of billing
- Automated processing of bills, thereby eliminating a nightly IT operator position
- A work-from-home program for customer service resulting in handling more calls/account activity per customer representative
- Coordinated with Polk County on a joint asphalt project that saved us $150,000
- Reduction of senior management by 20%
- A 0% salary increase to DMWW management team and professionals in 2010
- Successful application for over $5 million in FEMA funding for riverbank repairs to protect our treatment plant collector well system
Des Moines Water Works Using Social Media
You may wonder why a water utility would need more online presence than a website. Des Moines Water Works’ (DMWW) social media endeavor is in alignment with our 2010-2014 Strategic Plan. We realize the way the world communicates has changed, and we want to be where our customers are. If that means participating in blogging, Facebook, Twitter and YouTube, we’re ready to be there.
Our management team is very much on board with this new initiative, and on this blog you’ll be hearing from many employees from every corner of our organization. From the treatment plants to the Botanical Center, to Water Works Park, we’re bringing the best insights from our people directly to you. We hope you enjoy this blog, and comment frequently. We’re listening.
What do we hope to accomplish?
- Increase public awareness of the value of water
- Promote stewardship of our natural resources
- Post current DMWW news
- Promote events at the Botanical Center and in the parks
- Educate water consumers
- Inform the public of our involvement and initiatives with various associations
- Share pertinent information about the Utility (Did you know DMWW was recognized by Forbes in 2008 for having the highest quality drinking water in the USA?)
- Attract qualified applicants, and
- Interact with the community, residential and business customers, industry and government partners
We’re on Facebook as Des Moines Water Works, and Twitter at DSMH2O. Please join the conversation!
We welcome your feedback. Are there topics of particular interest to you? Let us know how we can improve service to you, our customers.