Residents in Orange County could see higher water and sewer bills.

OWASA's draft FY 2010 budget includes a 9.75 percent rate increase in monthly water and sewer rates. A 9.75 percent rate increase would increase a monthly bill by $6.68 (from $68.24 to $74.92) for a typical individually-metered residence using 5,000 gallons per month. (Please see additional examples below.) The normal effective date for changes in OWASA's rates is Oct. 1 following adoption of an annual budget in June.

OWASA officials said without the increase in chemical costs, the draft operating budget for FY 2010 would be 6 percent less than the budget for FY 2009. Officials said residents are using less water. In addition, OWASA has reduced revenue from new development connections due to the slow economy. Projected water demand in FY 2010 is 16 percent less than in FY 2001, while the number of customer accounts has increased by 3,100 since then.

So far, the budget includes $18.7 million for operations, $6.8 million for capital improvements and $9.7 million for bond debt payments. The operating budget includes:

• $1.7 million in cost reductions including elimination of 10 positions and freezing of eight vacant positions, deferral of a sewer maintenance program and postponement of water meter replacements;
• Reduced capital spending including a one-year delay in the next phase of odor elimination improvements at the Mason Farm Wastewater Treatment Plant;
• Reducing recreation days at University Lake from Friday through Monday to one day per week (Saturday), and continuing the current Saturday-only schedule at Cane Creek Reservoir; and
• Substantial increases in the cost of chemicals used in water and wastewater treatment.

Public hearings on the budget are schedule for Thursday, May 28.

The May 28 public hearings will be part of an OWASA business meeting at 7 p.m. in the Chapel Hill Town Hall, 405 Martin Luther King Jr. Boulevard.

The meeting will be televised live on local cable channel 18. All customers are invited to attend and speak at the public hearings and to provide comments for the OWASA Board by e-mail to webmaster@owasa.org, or by letter to 400 Jones Ferry Road, Carrboro, NC 27510, at any time. Additional notices of the public hearings, including a formal notice in a local newspaper, will be distributed in May.

The OWASA Board could take final action on the budget, CIP and proposed rate increases as soon as the Board's June 11 meeting.