Here are the answers to the questions that were asked at the Prince Frederick, Industrial Park, Chesapeake Heights, and Dares Beach Water and/or Sewer public information meeting held at Calvert Pines Senior Center on February 8, 2005.

1) Question: Why are the minimum amounts established at 10,000 gallons, why not less? Why not more?

Answer: The minimum represents the base consumption billed for service. We have a minimum charge to cover base operational and maintenance costs which must be paid regardless of the amount of water used. That way, all customers equally support the infrastructure that keeps the system functional. Currently, there is a range of 10,000 to 15,000 gallon minimums across the systems. The 10,000 minimum proposal would establish a standard minimum for all systems. Usage above the minimum is charged on a per 1,000 gallon basis. We purposefully set the minimum at the lower end of the range, which equates to a lower base bill and encourages conservation. Setting a higher minimum consumption would require a higher base rate, which means that single people, senior citizens, and those working to keep water use down could be charged for water they don’t use.

2) Question: Is the state flush tax included in the proposed rates you have presented to the customers?

Answer: Maryland is requiring that all community water and sewer system collect the new Bay Restoration Fee, also known as the Flush Tax, from their water and sewer customers. Residential water and sewer customers will see a $7.50 increase each quarter, and commercial customers will see a consumption-based increase on their March 31, 2005 water & sewer bill.   This fee is not included in the water and sewer rate adjustments being proposed by the County.

3) Question: How can I keep from paying for every gallon used as sewage as well as water, since the consumption from my water meter is used to calculate both charges? I use water to irrigate my lawn and/or fill my pool.

Answer: A “sub-meter” can be installed to monitor irrigation/pool water. Water only would be on this portion of the bill. The cost of installing such a meter would be borne by the homeowner, but might result in an overall savings if there is a large amount of water that is not going into sewage treatment. Customers with this meter setup would receive two bills, one for water only and one for water and sewer.

4) Question: Why does my water [from Chesapeake Heights] taste and smell so strongly of chlorine?

Answer: We are having staff look into this problem.

5) Question: The Prince Frederick slides showing financial information from 2003-2004-2005 don’t make sense. What is the difference between the accrual numbers and the cash basis number?

Answer: On our presentation, the audited amounts were presented for FY 2003 and FY 2004. Our audits are done in conformity with generally accepted accounting principles, which requires the use of full accrual accounting. In the schedules below, those years (FY2003 and FY2004) are presented on the cash basis, consistent with our budget and rate analysis presentation.

6) Question: Why doesn’t my consumption amount print on my bill?

Answer: When you get your bill, it should show your beginning and ending meter readings and the number of gallons you have used for that three month period. If your meter is broken, there will not be a consumption number on your bill and you will be charged based on the minimum rate for your system. Please call the Office of Finance & Budget and we will check your account. You may reach us at 410-535-1600 ext 2651 or 2211.

7) Question: Have you looked at extending the term on the debt [for the Prince Frederick system] to make the EDU charge more affordable for the customers?

Answer: We cannot change the term of any loan already finalized. Maryland Department of the Environment (MDE) loans on existing projects for the Prince Frederick system have 20 year terms. For MDE-funded drinking water projects the maximum length is 30 years if certain criteria are met, but are usually 20 years. For clean water (wastewater) projects, the maximum term is 20 years. Some of our debt is from the sale of bonds, which are generally have 15 year terms.