Water and Sewer Rate Changes

Click the link to the left to access the 2021 presentation from the Open House regarding the change in sanitary sewer rate structure and annual increases to water and sanitary sewer rates. The presentation slides can be found in the Supporting Documents at the bottom of this page.

Several years ago, the City of Millersburg embarked upon a study of water and sewer user fees (rates) and System Development Charges (SDCs).  Together, these two revenue sources provide the funding necessary to construct, operate, and maintain the facilities necessary to deliver clean drinking water and sewer services to our residents and customers.  The purpose of the study was to evaluate whether revenues in each utility are sufficient for the required expenditures over the next ten years. See below for FAQ regarding water and sewer revenues.

Through a series of public meetings (council work sessions, council meetings, public hearings) the recommendations of the study were reviewed and a path forward was charted.  Links to previous meeting minutes, recordings, and presentation materials may be found at the bottom of this page.

The outcome of the study included rate structure changes and rate adjustments for both water and sewer utilities.

What do you mean by rate structure and rate adjustment?  A rate structure is how you are charged; a rate adjustment is a change to the amount you are charged.

Why did we change the rate structures?  To address inequities in how sewer service is charged and to modernize the water rate structure. 

• Sewer:  For years, our customers expressed concerns with our flat rate sewer structure (meaning every customer pays the same rate for sewer service, regardless of actual usage).  The new rate structure includes a base service charge and a volume charge based on the average winter month water usage for residential customers. 
• Water:  Millersburg’s past water rate structure was based on an old model and didn't align with the City’s obligations to state and federal requirements for water conservation.  The revised rate structure changed to ‘uniform volume rates’ where every drop of water costs the same amount, regardless of the amount used.

Why are rate adjustments needed?  Regular rate adjustments are needed in any utility to cover the costs of running the utility, meet federal guidelines, improve infrastructure, perform regular maintenance, fix what’s broken, and respond to inflation.

• Water:  Regular increases are needed to keep up with inflation and continue to meet operating and capital costs. 
• Sewer:  Due to a deferral of rate increases in 2011 through 2014 and 2016 through 2019, an annual 7.5% increase for the next four years was adopted to address budget shortfalls in the utility.  Following this, regular smaller increases will be needed to keep up with inflation and continue to meet operating and capital costs. 

This strategy keeps revenues in line with expenditures and reduces the likelihood of needing large increases in the future.

How did my bill change with the rate structure change?  (For residential customers only. Commercial/Industrial customers contact City for information.)

With rate structure change, total water/sewer utility bill for a single-family residential home with average water use would decrease by $2.53 per month.   Combined residential bill impacts are most acute for large winter water users.

Schedule of rate adjustments: Rate adjustments started in February 2022. 

See below for additional water and sewer revenue and expenditure FAQs.

For previous City Council meeting and work session minutes and recordings, please CLICK HERE. Pertinent meetings: June 25, 2019, July 30, 2019, May 26, 2020 and November 10, 2020.