District Fees
Applewood Sanitation District Rate Increases
Applewood Sanitation District and its Board of Directors evaluates the District’s financials on an annual basis and takes rate increases very seriously. The District has prudently managed its finances to this point in time, however, aging infrastructure (nearly 70 years old in certain areas) is nearing the end or even beyond its useful life. Additionally, increased treatment costs from our treatment provider, Metro Water Recovery, and a limitation on revenues collected through property taxes (limited to a maximum of $200,000 in any given year) require the Board to consider increasing user fees to bridge the gap between annual budgeted shortfalls (i.e. expenditures exceeding revenues) to keep the District financially viable. Without future increases, the District will continue to draw down its cash reserve balances which are forecasted to become negative in 2028. The two figures below help illustrate this scenario:
Therefore, In December of 2023, the Applewood Sanitation Board adopted rate changes to help offset increased wastewater treatment charges and pay for vital capital expenditures to help prepare the system for future financial and regulatory challenges. Rate changes were effective January 1, 2024 and increased annual bills for single-family customers by $100 (a 25% increase from 2023) to $500 annually. The Board will continue to evaluate the need for future rate increases on an annual basis now and into the future to ensure the continued financial stability and operation of a successful sanitation district.
Metro Water Recovery
Applewood Sanitation District does not operate or maintain its own wastewater treatment plant. Rather the District conveys all wastewater flows to Metro Water Recovery for treatment and discharge. As such, they represent our single largest operational expenditure which leaves our rates heavily influenced by the rate increases they pass along to us and many other Districts in the state. Metro reviews and adopts its rate increases annually while also providing guidance on projected future rate increases. A comparison of Metro’s projected Annual Charges percentage increases this year, versus the projection done last year during the 2023 Budget process is included in the following table: