OWASA customers are invited to participate in public hearings Thursday night about a proposed 24 percent water rate increase.  

The hearing will take place at 7 p.m. in the Community Room on the lower floor of the OWASA Administration Building, 400 Jones Ferry Road, Carrboro.

The public may also comment on the 2008-09 proposed budget and capital program. 

The proposed OWASA budget for FY 2009, which will begin on July 1, includes $18.4 million for operations, $9.5 million for bond debt payments, $13.9 million for capital projects and equipment, and an average 24% increase in monthly water and sewer rates.

The primary reasons for the proposed rate increases are:

• A projected 13 percent reduction in water demand compared to last year's estimate. The demand projection reflects OWASA customers' significant conservation due to 2007-08 drought conditions, and it is expected that demand will remain low in the next year.
• A projected 39 percent ($1.3 million) drop in connection fees from new development, due to the slow construction economy.

For a typical residential customer using 5,000 gallons per month, the proposed rates would increase the monthly bill by $14.51, from $58.18 to $72.69.

OWASA officials said despite high increases in employee health insurance and plant energy costs, the operating budget proposed is only 2 percent higher than this year's budget. OWASA is also planning to reduce current FY 2008 costs by $1.3 million through actions including a freeze on at least seven vacant positions, officials said.

The proposed capital budget includes $5.7 million for the reclaimed water system to be funded by the University and with grants, and $8.2 million of projects that would be funded with normal water and sewer revenues.

Customers are invited to contact OWASA by calling 968-4421, sending e-mail to webmaster@owasa.org, by fax to 968-4464 and to visit or write to OWASA at 400 Jones Ferry Road, Carrboro, NC 27510.

OWASA is the community-owned, public non-profit water and sewer agency that serves the Chapel Hill-Carrboro community. OWASA does not receive tax funds other than grants for some special projects, and its services and projects are funded with customer revenues with rates and fees based on the costs of services. OWASA's nine-member Board of Directors is appointed by the Town of Chapel Hill, Town of Carrboro and Orange County governments.

Related Links

1. OWASA