An Easy-to-Understand Guide for Southbridge, MA Residents Robert Reed Interim Town Manager

 Formula determined by a rate structure study, based on sound research

 Debt Service  Capital Improvements  Indirect Costs ◦ Billing and administration of accounts since the services are contracted out ◦ No in-house infrastructure=another town department must perform duties  Contracts ◦ Any prior contracted amount with these companies must be honored

 Any cost that is subject to change o Utilities o Treatment Chemicals and Supplies  Consumption Rate o Overall consumption impacts rate o Budget /Consumption o Greater the consumption moderates the rate o Lesser the consumption greater the rate o Individual households use different amounts of water/sewer services

 Rate changes are based on the changes in consumption and increases in costs  Fixed Costs that have increased o Contracted increases with service providers o State mandates/increased regulations that cost extra money o Debt payments on facilities or capital improvements

 Water  Sewer * Comparison of Fiscal Years 2014 to 2013 through 4 quarters ConsumptionYTD Billed Revenue -2.4%+1.07% ConsumptionYTD Billed Revenue -.03%+3.86%

 Water Rates +3%  Sewer Rates+15%  Combined Change +9% With Both Services

Usage per Quarter Median single family consumption amount 1,400 CF in cubic feet with a 5/8 meter per Quarter per Month Current Water Charge$109.99$36.66 Current Sewer Charge$ $33.35 Total Charge if Both$210.05$70.01 With New Rates Water Charge +3% $113.29$37.76 Sewer Charge +15%$115.07$38.36 Total Charge if Both $228.36$76.12 Combined Change if Both Increase per Quarter $18.31 Increase per Month $6.10 Increase per Day $0.20 Source: Wil Cournoyer, Chairman, Southbridge Board of Assessors (05/15/2014)

2015 Water Budget Change $40,779  Capital Budget ($11,500)  Operations $24,709  Debt $16,602  Indirect Costs $10,968

2015 Sewer Budget Change $407,492  Capital Budget $100,000  Operations $91,820  Debt $204,833  Indirect Costs $10,839