Funding of sewer systems is far more complicated than most people assume. I think the common belief is that we charge a user fee and that covers all the costs. The user fee approach generally only covers operations. Operations include running the system with man power, electricity, and repair and maintenance. There are two other generally accepted charges that are used by cities to pay for sewer systems but first we’ll talk about how the system operates.
As you know there are pipes that run in the ground for the collection system. These pipes are sloped to allow gravity to run wastewater to lift stations. They pump the wastewater to a higher level in the collection system to again run by gravity to the next lift or to the wastewater treatment facility. Lift stations have force mains associated with them as well.
These collection systems are funded, in part, by assessments for the pipe that runs along properties and a portion of the lift stations needed to serve an area. The other portion of the lift stations not assessed is paid by trunk fees. Trunk fees also pay for force mains, over sizing of sewer lines and for future improvements to the wastewater treatment plant.
The collections of trunk fees occur with every new or expanded building that uses the sewer system. The theory here is you are using the collection and treatment system and you should pay your associated costs in that system. Much like expanding a home with additional bedrooms you are required to have additional capacity in your septic system and drain field. The city installed and prepaid for this equipment and wants the users of the system to pay their fair share of the costs.
The method of determining the impact is through an “Equivalent Residential Unit” or ERU. There are established standards in use to determine what constitutes a residential unit for other types of uses. So uses such as gas stations, restaurants or any other non-residential use requires the calculation of equivalents to determine the number of ERU’s and trunk charge. Trunk charges are generally paid at the time a building permit is issued or when a use is connected to the sewer. Almost all cities use a form of this to address costs for sewer. In Breezy Point the present trunk charge per unit is $4,838.20.
Occasionally cities will use a tax levy to pay for wastewater given the high costs of treatment facilities. This is not the preferred method of payment as users of the system should pay the costs of the system. In Breezy Point there are no tax dollars supporting the sewer system. Only sewer users pay for sewer through the charges of line assessments, trunk charges and user fees.
