In order to encourage water conservation, most water utilities have adopted a tiered billing structure for all types of property classes – including multifamily. As water consumption per apartment unit reaches higher levels, the rate per unit increases for set intervals – the definition of tiered water bill. For examples, below are tier structures in Tampa, Colorado Springs and Miami-Dade.
Tampa’s multifamily water and sewer bill structure:
Apartment Customer Class: Multi-family (a)
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Inside City
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Outside City
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Tier 0
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0 to 2 ccf* per month (first 2 ccf per month, per ccf)
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$2.09
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$2.61
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Tier 1
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3 to 6 ccf* per month (next 4 ccf per month, per ccf)
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$2.43
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$3.03
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Tier 2
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7 to 12 ccf* per month (next 6 ccf per month, per ccf)
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$4.07
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$5.08
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Tier 3
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13 to 21 ccf* per month (next 9 ccf per month, per ccf)
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$5.44
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$6.80
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Tier 4
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Over 21 ccf* per month (in excess of 21 ccf per month, per ccf)
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$6.28
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$7.85
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* ccf = 100 cubic feet or 748 gallons.
(a) Calculation is based on the number of dwelling units X the tier range.
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Due to drought conditions, Colorado Springs announced what amounts to an additional 25% surcharge rate for its “Block 3” water bill tier:
Tiered water rates as of Aug. 1, 2013
Monthly use
CF = cubic feet
Note: One CF = 7.48 gallons
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Non-water shortage pricing
(Inside city)
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Water shortage pricing
(Inside city)
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Block 1
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Up to 999 CF/$0.0311 per CF
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Up to 999 CF/$0.0311 per CF
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Block 2
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1,000 to 2,499 CF/$0.0584 per CF
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1,000 to 2,499 CF/$0.0584 per CF
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Block 3
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2,500 CF or more/$0.0885 per CF
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2,500 or more CF/$0.0885 per CF
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Water surcharge
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None
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$0.0221 per CF 2,500 CF or more
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In Miami-Dade, the multifamily tier structure for water and sewer is even more dramatic. Effective Oct. 1, 2013:
- For 0 to 4 CCF per unit – $.03740 per CCF
- For 5 to 7 CCF per unit – $2.5254 per CCF
- For 8 to 14 CCF per unit – $3.154 per CCF
- For 15 CCF per unit and over – $4.1705 per CCF
CCF = 100 cubic feet or 748 gallons
As water and sewer costs are already expensive and becoming more so, submetering and charging tenants for water has become a necessity. Varioius studies sponsored by utilities, the EPA and National Multi-Housing Council show that submetering lowers consumption 15% to 39%. Are you paying double the rate for that last 15% to 39%?
For a free analysis of you water and sewer bill, contact the water bill expert.