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) |
Inside City |
Outside City |
|
|
Tier 0 |
0 to 2 ccf* per month (first 2 ccf per month, per ccf) |
$2.09 |
$2.61 |
|
Tier 1 |
3 to 6 ccf* per month (next 4 ccf per month, per ccf) |
$2.43 |
$3.03 |
|
Tier 2 |
7 to 12 ccf* per month (next 6 ccf per month, per ccf) |
$4.07 |
$5.08 |
|
Tier 3 |
13 to 21 ccf* per month (next 9 ccf per month, per ccf) |
$5.44 |
$6.80 |
|
Tier 4 |
Over 21 ccf* per month (in excess of 21 ccf per month, per ccf) |
$6.28 |
$7.85 |
|
* 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
|
Non-water shortage pricing |
Water shortage pricing |
|
|
Block 1 |
Up to 999 CF/$0.0311 per CF |
Up to 999 CF/$0.0311 per CF |
|
Block 2 |
1,000 to 2,499 CF/$0.0584 per CF |
1,000 to 2,499 CF/$0.0584 per CF |
|
Block 3 |
2,500 CF or more/$0.0885 per CF |
2,500 or more CF/$0.0885 per CF |
|
Water surcharge |
None |
$0.0221 per CF 2,500 CF or more |
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.