Trunk and Treatment New Account Fees
The new account fee is a one-time charge implemented to cover the costs related to wastewater system capacity needs. This fee helps lessen the need for existing customers to pay for system expansions through increased user rates.
ReWa's new account fee for residential and commercial users is based on the installed water meter size (excluding irrigation and fire flow meters). Since wastewater flow is generally a direct function of water usage, the wastewater new account fee is correlated to the size of the water meter. We believe this process is equitable and administratively efficient.
Retail Collection New Account Fees
Retail sewer collection lines connect the customer's service lateral to ReWa's trunk lines. If ReWa owns and maintains the retail sewer collection lines, then new retail connections or meter upsizes will be subject to the following retail new account fees.
Frequently Asked Questions Involving New Account Fees
How are ReWa’s usage fees used?
-ReWa does not receive any money from state or federal taxes. This means ReWa depends on customer payments to cover the operation and maintenance costs of the wastewater system.
What are the major sources of ReWa’s income?
-There are two types of fees paid to ReWa. One is paid by customers to cover the costs of the utility’s operations and maintenance. The other is the new account fees paid by builders and developers for the capacity needed for new customers.
How are new account fees used?
-New account fees are solely used to support projects that increase the capacity of the wastewater system. ReWa’s day-to-day operations, replacement and rehabilitation capital projects are not supported by new account fees.
What’s changing with the new account fee?
-ReWa’s new account fee is being combined with its capital contribution fees and will be billed at a rate of $4,110 which will need to be paid by developers and homebuilders. The fee must be collected by ReWa before the issuance of flow acceptance letters.
When will the fee change?
-ReWa’s new account fee will be updated to $4,110 beginning July 1, 2024. The current $2,500 new account fee remains in effect until June 30, 2024. The new fee combines the existing new account, and the capital contribution fees that developers and homebuilders pay. During the transition period, developers and homebuilders can prepay at the current rate. Those who have paid capital contribution fees before July 1, 2024, will be able to keep the current new account fee of $2,500 until December 31, 2025.
Why is this change necessary?
-New account fees support the philosophy that growth pays for growth, which limits ReWa’s existing customers from having to pay for system expansions entirely through increased user rates.
When was the last new account fee increase?
-ReWa’s new account fee was established in 1995. It has not been adjusted since 2004.
How was the new account fee calculated?
-The new account fee is calculated by determining a projected cost for the addition of new or expanded wastewater collection and transportation lines, new or expanded wastewater pump stations and expanded wastewater treatment facilities needed to support growth in the ReWa service area. The projected cost is then divided by the total new wastewater capacity provided by the new infrastructure to then determine a cost for new wastewater service provided by the new account.