Why do I have to pay a base rate?

Why is a base rate charged for Water & Wastewater Services?

 resident recently asked about the $46.90 base rate and why it was charged for what was perceived as no value returned.  Here is the answer to that question.

The monthly base rate is billed to maintain the infrastructure, support equipment and services which include:

·        Water distribution piping (88,000 feet),

·        Wastewater collection piping (100,000 feet),

·        Thousands of valves,

·        Over 380 manholes,

·        Three sewer lift stations,

·        1400+ water meters,

·        Wells (including well motors, sanitation equipment & supplies, and pumps)

·        Booster stations (including piping, pumps, valves, control instrumentation, hydro-tanks, reservoirs, buildings, etc.)

·        Wastewater treatment facilities (including treatment ponds, pumps, blowers, influent and effluent pumps and equipment, blower, buildings, etc.)

·        Emergency electrical generation facilities (diesel engines, generators and enclosures),

·        AC power switch gear,

·        Service equipment including pumps, trucks, earth moving equipment,

·        Central office, maintenance garage, service area, fill & bedding material, and

·        Employee wages, benefits, SS taxes, unemployment insurance, etc.

In 2005 - 2006 a federally mandated Governmental Accounting Standards Board (GASB-34) audit was performed and the replacement value of the utilities infrastructure was set at just below 14 million dollars.  This infrastructure is present on a year round basis and requires ongoing maintenance and unfortunately does not take a hiatus in the winter when many of the residents are not in the village.

A substantial number of residents occupy their Kachina Village homes only in the summer months.  I think it’s clear that the infrastructure to support all of the residents must be in place year round whether or not the residents are here part or full time.  If the utility did not charge the monthly base rate to all residents then winter water rates would rise dramatically.  Those residents that live in the village year round would have to foot the entire bill for the infrastructure during the winter months.  I don't believe the full time residents would feel this is fair to them.

As you can see your $49.60 per month base rate pays for the support of a large amount of infrastructure maintenance and the cost is year round.

George Sereno

Manager

Kachina Village Improvement District

540 Jadito Trail

Flagstaff, AZ 86001

(928) 525 1775