Ocracoke Sanitary District Announces Rate Increase Effective January 2016

Saturday, September 12, 2015 - 22:57 Press Release

The Ocracoke Sanitary District [OSD] will be adapting the Water Rate Schedule to reflect increased operating expenses and future capital needs to continue providing safe dependable drinking water on Ocracoke.

Effective with the January 2016 meter reading and billing, rates will increase 8%.

• The minimum rate for users under 5,000 gallons per month [Step A] will increase from $16 to $17. There are currently 883 meters in this category.

• The minimum rate for users over 5,000 but less than 10,000 gallons per month [Step B] will increase from $42.87 to $46.04. There are currently 293 meters in this category.

• The minimum rate for the highest usage of more than 10,000 gallons per month [Step C] will increase from $94.37 to $101.64. There are currently 70 meters in this category.

• A copy of the rate schedule is available from the OSD office at the Water Plant.

The last rate increase was 10% in January 2013. Rates are periodically adjusted by the Ocracoke Sanitary District Board of Commissioners to reflect increasing operating costs, which include the OSD staff of 6, electricity, insurance, and USDA Bond payments for the $3.1M Plant expansion in 2010. The other major consideration is planning for future capital improvements. The current 250,000 gallon water tower, built in 1976 when the water system was initiated, will need to be replaced within 5-8 years, at a projected cost of over $1.2M.

OSD Rate structures are designed using guidelines from the UNC School of Government Environmental Finance Center for “full cost recovery” to provide revenue stability to maintain, repair and operate the water system, pay principal and interest on USDA loans, and build reserves for future capital improvements. Other key factors are maintaining affordability and encouraging conservation.

OSD audits and finances are reviewed annually by the State and Local Government Finance Division and Local Government Commission within the NC Department of State Treasurer.