Explanation of Water and Sewer Rates

The following is an explanation and cost breakdown of the Town of North Beach FY 2024 Water and Sewer Rates from Town Treasurer, Joanne Hunt. For your convenience, attached to this email is a rate sheet that compares the current quarterly water bill rates to the new quarterly water bill rates. Please take note that the quarterly water bill amounts include the $15.00 Maryland Flush Tax fee (Bay Restoration Fund). The new rates will go into effect with the October 2023 billing cycle.

The water conservation plan was developed several years ago to help conserve our resources and promote less waste. The goal is to eventually have a rate structure where you are billed for what you use, instead of a flat usage then layers of steps for additional usage.

Over the last several years the town has taken a slow methodical approach to implementing this rate structure. In the past when the curve has been too severe, the Mayor and Council have protected the residents by supplementing the utilities from the reserve funds. The FY 24 water and sewer minimum is 3,000 gallons, see new rate structure for increases and details.

Of the two utilities, the Sewer fund is the most expensive to run and operate. A breakdown of the cost and operations for the proposed FY 24 budget shows the Wastewater Treatment cost to be 58% of the final sewer budget.

The debt service for the two utility funds is collected in benefit fees that are incorporated in your special assessment from the Town of North Beach. The Water Benefit Fee is $100, and Sewer Benefit Fee is $118 annually. There has been no change in the benefit fees for FY 24.

The Town of Chesapeake Beach (the Operator of the Waste Water Treatment Plant) WWTP has implemented a reserve fund (per the interjurisdictional agreement with Chesapeake Beach, Calvert, Anne Arundel and North Beach) that has impacted the Town of North Beach significantly. Incorporated in the FY24 WWTP Budget is an additional $133,000 to fund the reserve for the WWTP. The Mayor and Council have funded the FY 24 WWTP $133,000 reserve and insulated our residents from additional increases.

The community working together to conserve and protect this precious resource is a perfect example of how much we all care and how far we are prepared to go to do our part.

Thank you.

Joanne Hunt, Treasurer

FY 2024 Cost Breakdown Water / Sewer Bill

The quarterly Water and Sewer Billing covers the following cost:

Water (21% of the minimum fee is Water Fund $50.00)

1. Maintenance and Repairs to both Well 1 and Well 2, daily water testing, annual testing (MDE) and CCR reporting.
2. Repairs and maintenance to all water lines, quarterly readings, quarterly hydrant flushing and maintenance of hydrants.
3. Regular maintenance of the water tower and painting every five/six year and cleaning inside tower every three (3) years.
4. Customer inquiries, Final Readings, and five-point meter check occur on a regular and continual basis.
5. Water Shut offs in case of emergency and/or nonpayment.

Sewer (72.7% of the minimum fee is Sewer Fund $172.00)

1. Wastewater Treatment Plant Operations are fifty eight percent (58%) of the operation portion of Sewer Fund budget each year. The WWTP budget is compiled by the Town of Chesapeake Beach (the Operator). Some of the significant line item increases at the WWTP for FY 2024 are listed below:
   1. The large increase in Administration costs from $38K to $76K is a 100% increase for FY 2024.
   2. Engineering and Professional Fees increased from $30K to $52K, a 73% increase.
   3. Utilities for the WWTP went from $250K to $413K, a 65% increase over FY 2023.
   4. Implementation of “Reserve” for the WWTP $133,000.
2. Town of North Beach Maintenance and Repairs to all four (Sewer Pump Stations) are forty two percent (42%) of the operations portion of Sewer Fund Budget.
   1. Sewer Line Maintenance and Repairs (replace pipes, jet mains, daily cleaning of sewer traps and check of all sewer manholes).
   2. Monitoring systems and computer support for stations.
3. MDE Flush Tax (6.3% percent of the minimum charge of all sewer funds collected go to State of MD $15.00).