Water and Sewer Rates
Bloomfield Township purchases water from the Southeast Oakland County
Water Authority (SOCWA) and is a community member of Oakland County's
Evergreen-Farmington Sewage Disposal System for sewage services.
Following are new rates, as approved by the Township Board of Trustees,
in effect as of April 1, 2016.
|Ready to Serve
||Down $2.50 per customer (REU),
|Sewer Ready to Serve
||Up $4.25 per customer (REU), Quarterly Sewer Only
Should you have any questions about these rates, please contact the
Department of Public Works at 248-594-2800.
The Township’s water and sewer system began with the construction of
the County’s sewer system in 1958 and water was extended later by DWSD
in 1964. The Township originally had 3,300 water customers in 1965. By
1995, there were over 14,000 customers and in 2015 there are now over
15,600 customers. In the early years, the system expanded rapidly with
new developments and was supported largely by connection fees for new
customers being added to the system. Development and system expansion
has greatly decreased in the past twenty years and the system now
largely is being funded by the customer usages. These usage charges have
historically relied heavily on the customers with high water usages to
generate the revenue needed for the system. In addition to a decline in
development, water volumes have also shown historic declines. Water
volumes are dependent on customer usage and seasonal precipitation.
Since 2008, Bloomfield Township’s consumption has dropped nearly 25% and
the volumes continued to drop in 2015. This decline mirrors the water
use trends of all the customers on the GLWA regional system.
The water and sewer usage rates are billed per 1000 gallons based on
the water volumes read on the customer’s water meters. These rates
consist of four components: 1) commodity charges, 2) operating expenses,
3) depreciation, and 4) capital projects.
Commodity Charges - The
commodity charges are the largest component, making up 63% of the rates.
These are the pass through costs from SOCWA for water and from the OCWRC
for the sewage treatment. Both agencies are wholesale customers of GLWA
and their costs consist largely on what GLWA charges them.
Operating Expenses - The Township DPW – Water Division is responsible
for operating and maintaining the water and sewer system which includes
a one million gallon storage reservoir, ten pumping facilities, over 500
miles of pipes along with the attached manholes, hydrants and valves. In
addition over 15,000 water meters are read, billed and serviced.
Township operating costs have been very consistent over the past several
years, making up approximately 20% of the charges.
The average age of the water and sewer pipes within the Township’s
system is 50 years old with some pipes nearly 90 years old. Much of the
system is nearing or is beyond half of their useful service life.
Depreciation makes up approximately 8% of the rates.
Projects - Since 2006, the Township has bonded for major repairs and
replacements needed for both systems. This adds additional cost to the
customer to pay the debt for the bond. Depreciation alone is not a
sufficient amount needed to continue the current and future capital
projects. Including a component in the rate for capital projects will
help the Township build the necessary reserve without selling bonds.
In addition to the usage rate components, there are flat
charges, billed per customer, per quarter. These are the
Ready To Serve (RTS) and Debt Charges.
Ready To Serve
- In 2009, GLWA (formerly DWSD) began applying a monthly
flat rate to their water and sewer charges regardless of
what water volumes were used. They had determined that 90%
of their overall costs do not vary with the water usage.
This is known as the “Ready To Serve” (RTS) charge which is
widely used in the utility industry for charging customers
for the stationary cost of being connected to the system.
This helps to cover some of the costs of the Township’s
operating expenses that do not vary with water usage. This
includes services such as service appointments, utility
staking, meter replacements, engineering, system repairs
(water main breaks) and after hour emergency calls. It is a
fair way to spread the costs to provide service to all of
our customers in an equitable manner.
Debt Charges -
Debt charges have been in place by Township Ordinances for
over 50 years and it is a mechanism for the Township to
collect sufficient revenue to cover the bond debt for the
water and sewer system.