Wednesday, September 08, 2010
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Water/Sewer Rate Changes Explained

Water/Sewer Rate Methodology Changes effective July 1, 2009

The City of Grosse Pointe recently applied for participation in the State Revolving Fund Program ("SRF") and was granted a loan in the amount of $830,000 to pay for upgrades to the Neff Road Pump Station.  In addition, the funds qualify for federal stimulus dollars which will reduce the amount of the principal loan by 40% or $332,000 and the related interest that the City is required to pay back, making the actual principal repayment $498,000.

In order for the City to be eligible for the SRF program, the City was required to change the way water and sewage services are billed to its customers.  The billing change is effective for any bills issued on or after July 1, 2009.  Customers will no longer receive a minimum bill based on usage and instead will be billed for actual quarterly usage along with a Ready to Serve Charge based on meter size.  A separate Debt Service Charge has been established to cover interest payments on the SRF loan.  Commercial customers will continue to be billed a pass through charge from the Detroit Water & Sewer Dept. which funds an industrial waste monitoring system and industrial customers will be charged a new flat quarterly fee based on meter size for Industrial Damage Control to cover additional operations and maintenance costs associated with industrial accoutns.

Billing codes for all charges and fees appear on the back of your quarterly water and sewage bill.  A quick reference is listed below for your convenience.  For further explanation and information regarding the new water/sewer rate, please click here.

If you have any questions about your bill, please call the City Offices at 313-885-5800.

BILLING CODE QUICK REFERENCE
RS – Ready to Serve Charge is a flat quarterly fee for fixed charges related to the operation of the water and sewer system. Examples include meter reading, billing expenses, administrative, insurance costs and the fixed monthly charge that the City receives from DWSD for the storm and sanitary components.
 
DS – Debt Service Charge – The City of Grosse Pointe has received a State Revolving Fund Loan for upgrades to the Neff Road Pump Station. This charge is required to repay the annual principle and interest charges for the loan.
 
IW – Industrial Waste Charge – This is a pass through charge from the DWSD for all non-residential customers. DWSD adopts IWC charges to operate and maintain a monitoring program to protect its system.
 
ID – Industrial Damage Control Charge – All Industrial premises connected to the public water/sewer system are charged this flat quarterly fee based upon meter size. This item is intended to cover additional operations and maintenance costs associated with Industrial accounts.
 
Recycling – This charge reflects the cost of the weekly curbside recycling pickup and processing.
 
Carts – This is a temporary charge for the cost of purchasing and distributing large recycling bins.