2023 Sewer Rate Increase
The Sanitary Board, which manages the Elkins sewer system, has recommended raising rates charged to customers in two steps during 2023. This recommendation will be considered by the Elkins Common Council, which is responsible for setting sewer rates, at the meetings of April 6 and April 20. Once approved, a first increase, of around 17.5 percent for most customers, would be reflected on bills mailed July 31. A second increase, of around 15 percent for most customers, would be reflected on bills mailed January 31, 2024.
After both increases, accounts using the average residential amount of water (3,400 gallons per month) would see an increase of $13.16 per month, or about 44 cents a day.
This follows on the heels of last fall’s water-rate increase, and City of Elkins recognizes it is not welcome news. However, as we stated then, Elkins is not the only city raising rates, and many area utilities are seeing increases of similar magnitudes.
Why and How?
Why is the Rate Needed?
The last rate increase was in 2020. The wastewater treatment plant was constructed in 1986. Although it received a partial upgrade in 2008, many antiquated fixtures and infrastructure components were left in service. The plant is in need of significant modernization as a result. Other factors contributing to the need for a rate increase include the post-pandemic cost increases affecting all sectors of the economy and the ongoing work to reduce sewer overflows to the Tygart Valley River under a consent decree with the U.S. EPA. All of these factors contribute to an increased cost of providing sewage and wastewater collection and treatment. Therefore, a rate increase is necessary.
Additional cost factors:
- Extreme inflationary effect on all categories of supplies and materials (as much as 500 percent)
- Technology upgrades to improve operations and security
- Wage increases needed to better retain system personnel
- Implementation of a mandatory statutory requirement to set aside approximately $200,000 a year to address future extraordinary expenses
Can’t we move money from elsewhere in the city budget to cover these payments?
Elkins is legally prohibited from transferring money from other city funds to cover the costs of its utilities, including its water utilities. As a result, increases in costs for the water system must be met by increased rates.
How Was the Proposed Rate Determined?
The Water Board worked with Michael Griffith, of Griffith & Associates, PLLC, to analyze the last three years of actual costs, the ongoing effects of inflation, the condition of rolling stock and other essential equipment, and vendor price projections. The board also worked with Robert Rodecker, an attorney with Kay, Casto & Chaney PLLC to advise on the legal process.
Can We Make Do With a Smaller Rate Increase?
The city’s sewer rates are based upon the actual cost of providing the service. To the Water Board last fall, Griffith made the following comments, which also pertain to this increase.
“In my entire career, I’ve never seen such extreme inflationary impacts on water utilities. We do work in 45 counties, and everyone is dealing with similar issues. Costs for many crucial supplies have at least doubled, and I don’t see that situation improving anytime soon.”
The analysis performed by Griffith & Associates found that the current and proposed new expenditures are “typical and necessary”; Mr. Griffith informed the Sanitary Board that there is no way for the utility to continue meeting its obligations without a rate increase of this size.
Monthly Bills & Rates
How would my monthly bill change?
The calculation of each customer’s monthly bill depends on number of gallons of water used. All customers are charged for either 1,500 gallons or actual usage, whichever is higher. This table shows how the increase would affect customers at usage levels typical of most residential customers. (See the larger table in the next section for a more comprehensive list.)
The row in bold blue font below shows how the proposed rate increase would affect a bill based on monthly usage of 3,400 gallons, the residential average in West Virginia. After the second increase, in December, an account using 3,400 gallons a month would see an increase of $13.16 per month, or about 44 cents a day. (Keep in mind that an Elkins utility bill includes charges not only for sewer but also water, garbage, and the Fire & Rescue Service Fee. Only the charge for sewer would be affected by this rate increase.)
Effect of Proposed Increase on Sample Billing Levels
| Gallons | Current | Step 1 rate | $ inc. | % inc. | Step 2 rate | $ inc. | % inc. |
| 1,000 | $17.53 | $20.61 | $3.08 | 17.57% | $23.67 | $3.06 | 15% |
| 1500 (min.) | $17.53 | $20.61 | $3.08 | 17.57% | $23.67 | $3.06 | 15% |
| 2,000 | $22.83 | $26.83 | $4.00 | 17.52% | $30.81 | $3.99 | 15% |
| 3,000 | $33.41 | $39.26 | $5.85 | 17.51% | $45.09 | $5.83 | 15% |
| 3400 (res. avg.) | $37.64 | $44.23 | $6.59 | 17.51% | $50.80 | $6.58 | 15% |
| 4,000 | $43.99 | $51.69 | $7.70 | 17.51% | $59.37 | $7.68 | 15% |
| 5,000 | $54.57 | $64.12 | $9.55 | 17.50% | $73.65 | $9.54 | 15% |
| 6,000 | $65.15 | $76.55 | $11.40 | 17.50% | $87.93 | $11.39 | 15% |
When would this rate increase be reflected on my bill?
The Step 1 increase would apply to the billing period June 15-July 15. This increase would be reflected on bills mailed July 31, 2023.
The Step 2 increase would apply to the billing period December 15-January 15. The second increase would be reflected on bills mailed January 31, 2024.
Effect of Proposed Increase on Sample Billing Levels
You can also download the below table as a PDF.
| Gallons | Current | Step 1 rate | $ inc. | % inc. | Step 2 rate | $ inc. | % inc. |
| 1,000 [1] | $17.53 | $20.61 | $3.08 | 17.57% | $23.67 | $3.06 | 15% |
| 1500 (min.) | $17.53 | $20.61 | $3.08 | 17.57% | $23.67 | $3.06 | 15% |
| 2,000 | $22.83 | $26.83 | $4.00 | 17.52% | $30.81 | $3.99 | 15% |
| 3,000 | $33.41 | $39.26 | $5.85 | 17.51% | $45.09 | $5.83 | 15% |
| 3400 (res. avg.) | $37.64 | $44.23 | $6.59 | 17.51% | $50.80 | $6.58 | 15% |
| 4,000 | $43.99 | $51.69 | $7.70 | 17.51% | $59.37 | $7.68 | 15% |
| 5,000 | $54.57 | $64.12 | $9.55 | 17.50% | $73.65 | $9.54 | 15% |
| 6,000 | $65.15 | $76.55 | $11.40 | 17.50% | $87.93 | $11.39 | 15% |
| 7,000 | $75.73 | $88.98 | $13.25 | 17.50% | $102.21 | $13.24 | 15% |
| 8,000 | $86.31 | $101.41 | $15.10 | 17.50% | $116.49 | $15.09 | 15% |
| 9,000 | $96.89 | $113.84 | $16.95 | 17.49% | $130.77 | $16.94 | 15% |
| 10,000 | $107.47 | $126.27 | $18.80 | 17.49% | $145.05 | $18.79 | 15% |
| 15,000 | $160.37 | $188.42 | $28.05 | 17.49% | $216.45 | $28.04 | 15% |
| 20,000 | $213.27 | $250.57 | $37.30 | 17.49% | $287.85 | $37.29 | 15% |
| 25,000 | $266.17 | $312.72 | $46.55 | 17.49% | $359.25 | $46.54 | 15% |
| 50,000 | $530.67 | $623.47 | $92.80 | 17.49% | $716.25 | $92.78 | 15% |
| 100,000 | $1,059.67 | $1,244.97 | $185.30 | 17.49% | $1,430.25 | $185.29 | 15% |
| 250,000 | $2,646.67 | $3,109.47 | $462.80 | 17.49% | $3,565.11 | $455.65 | 15% |
| 500,000 | $3,701.67 | $4,349.47 | $647.80 | 17.50% | $4,990.11 | $640.65 | 15% |
| 4431917 (resale Midland avg.) |
$16,265.14 | $18,215.18 | $1,950.04 | 11.99% | $20,165.22 | $1,950.04 | 11% |
| 3712833 (resale Leadsville avg.) |
$13,774.61 | $15,445.39 | $1,670.77 | 12.13% | $17,079.03 | $1,633.65 | 11% |
[1] Customers are charged for a minimum of 1,500 gallons or actual usage, whichever is higher. A customer using only 1,000 gallons would pay the same amount as a customer using 1,500 gallons.
Required Separation of Government Funds
The below diagram shows the restrictions requiring City of Elkins to separate revenues from (1) taxes and fees, (2) sewer customer rates, and (3) water customer rates. State law prohibits us from intermingling any of these funds. Read more here.
