Rates 09 - Utilities Master Plans

Just like you and your family, your utilities must plan and budget for expenses.  We also must look at Olympia's long-term and short-term needs.  Below is an outline of the three steps in the process. 
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The 1,2,3 of the Rate Process

Step 1: Each utility uses a rate calculation system that projects the dollars needed to run the utility.  It takes the following into effect:

  • Long and short term needs identified in the master plan.
  • Dollars needed to maintain current services, taking into account inflation and rising costs.
  • Dollars needed to support our growing community, and aging facility infrastructures (like water tanks).

Step 2: Next the Utility Advisory Committee (UAC) reveiw the rates. You are invited to attend the October UAC meeting where the commitee will reveiw the 2009 rate proposals. 

  • Date:  Thursday, October 2, 2008
  • Time: 5:30 p.m.
  • Location: Associates Building, 825 Legion Way, SE

Step 3:  Council reviews the UAC's recommendations in November, and finalizes the budget in December. Utilities

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Master Plans: Your utility works every day to ensure they can meet the needs of today and tomorrow.  We do this by developing "Master Plans" that outline our vision and what steps we must take to get there.  Our Master Plans include:  
  • Zero Waste Master Plan:  This plan outlines specific opportunities, that move us closer to our vision of a zero waste community.  It sets tangible targets by 2013 of reducing waste per capita by 5% and increasing our overall recycling rate to 65%.
  • Drinking Water Master Plan:  This plan ensures our water system's ability to provide safe and sustainable water for the next 50 years.  It presents ways to stretch our water resources and improve our system.
  • Storm & Surface Water Master Plan: This plan provides a path for the implementing of City goals for minimizing flooding, improving water quality, and protecting aquatic habitat.
  • Wastewater Master Plan:  This plan seeks to provide an efficient sewer infrastructure that protects public and environmental health.
  • Capital Facilities Plan:  This plan reflects the projects that need to be studied, designed, or constructed, within the next 6 years for each utility, as identified in each respective master plan.

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What is Driving Rates for 2009:  A variety of factors are driving rates for 2009.  Below is a brief overview of factors influencing rates by utility:

Garbage/Recycling/Organics:

  • Rising costs for equipment purchases/repairs, fuel and landfill disposal.
  • Declining disposal costs for recyclable materials, such as aluminum, plastic and paper.
  • Savings when organic waste can be taken to composting facilities instead of the landfill.

Drinking Water:

  • Capital projects to address aging infrastructure and improve system performance and reliability (examples include the new McAllister Wellfield, metering improvements and pipe upgrades).
  • Increasing costs of fuel, electricity and materials.
  • Increasing federal and state water quality and water use efficiency regulations.

Storm and Surface Water:

  • Aging stormwater pipes need timely upgrades and replacements.
  • Increasing environmental protection regulations from federal and state government.
  • Inflationary construction and maintenance costs.

Wastewater: 

  • Aging wastewater pipes need timely upgrades and replacements.
  • Need for sanitary sewer installation in conjunction with planned
  • road improvements.
  • Efforts to provide on-site septic system owners with sewer service.

Capital Facilities Plan (CFP):

  • Increasing cost of materials, right- of- way acquisition, and labor necessary to design and construct projects.
  • The rates are a reflection of the projects identified in the CFP that need to be constructed, as well as the cost of operating and maintaining that facility.