Asheville Water Rates to Increase
At its May 11 meeting, Asheville City Council adopted Water Resources fees and charges for the new fiscal year.
The City of Asheville did not raise water rates last year, but when the Fiscal Year 2021-2022 begins July 1, city water customers will see a slight increase. However, combined utility statements will still be lower than in previous years.
Water bills dropped on July 1, 2020, following discontinuation of a capital fee on customers’ combined utility statements as a result of the settlement of a class action lawsuit. With the new rates, the average residential customer will pay about $3 a month more than currently, or $6 per every two-month pay period.
As an example of the new costs, a customer who paid $65.38 in FY 2019-2020, then paid $56.86 in FY 2020-2021, will pay $63.29 in FY 2021-2022 under the new rate. While the new rate goes into effect July 1, it will not show up in bills until September.
“Asheville’s rate is still slightly below average compared to other utilities in the State surveyed with a median household income of between $45,000 and $50,000,” said Water Resources Director David Melton. “With our pristine and highly protected water source we think this is a great value and asset for our community.”
Water Resources is an enterprise fund: its services are supported by fees charged for the water used rather than with taxpayer money from the City’s General Fund.
However, the discontinuation of the capital fee in 2020 led to a decline in revenue, and the new rates are designed to minimize the financial burden on customers by spreading revenue recovery over time.
About 90% of Asheville’s water customers are residential, 8.5% are commercial, with manufacturing, irrigation, and wholesale customers making up the rest of the customer base. All customers pay based on usage.
