Lake Havasu City is a community of about 55,000 residents living on the Arizona shore of the Colorado River. The city encompasses 42 square miles, with a planning area of 56 square miles. Future growth within the city is projected to increase the population of the city to 96,000 at build-out.
In response to rising concerns over the need to preserve the quality of the groundwater of Lake Havasu, a comprehensive wastewater master plan was authorized by the city. When the wastewater master plan was prepared, 16% of the land within the city limits, and 12% of the planning area was served by a central sewer system. The remainder utilized onsite (septic) systems to treat and dispose of the waste generated from each property. The Comprehensive Wastewater Master Plan was completed in 1998 and recommended the elimination of septic systems and the construction of a community sewer system. A bond election was held in 2001 to authorize the borrowing necessary to proceed with the Wastewater System Expansion Program (WWSE). This bond election passed by a margin of 3 to 1.
The $463 million bond issue will fund the system including over 400 miles of sewer lines, 9,700 manholes, and 75 pump stations. In addition, one new treatment plant will be added and modifications will be made to two others. As a result, over the 11-year WWSE Program, approximately 25,000 septic tanks will be decommissioned.
Lake Havasu City also helped found and has continued to be the driving force behind the Colorado River Regional Sewer Coalition (CRRSCo), a non-profit organization with the goal to preserve and improve the quality of the Colorado River through elimination of septic systems and the progressive sewering of communities along the Colorado River.
Treatment Capacity Fees
A treatment capacity fee (TCF) will be assessed to all new connections to the sewer system. This fee is based upon the projected cost of wastewater treatment facilities, the capacity associated with these facilities and the number of equivalent residential units (ERUs) to be served by the facilities. The TCF is $2,000 per ERU. An ERU is defined based on water meter/service line size, i.e., all ¾ inch services are considered to be a single ERU. Customers would be allowed to pay the TCF in accordance with one of the following options.
One time payment
- One time payment of $2,000 per ERU. This payment will be billed separate from the water bill. The customers will be billed the week following connection and will be given 30 days to pay.
Treatment Capacity Fee Loan Program
- The Treatment Capacity Fee loan program is paid over a 10-year period at 4% interest. The monthly installment will be billed on the 1st of each month following connection.
Community Development Block Grant (CDBG)
- CDBG funding assistance is available to those meeting the income qualification requirements.
MONTHLY BILLING
The most significant revenue source for repayment of the $463 Million sewer bond is a monthly user charge for service assessed to each connection account. Currently, user charge revenues are being collected from approximately 2,750 accounts. User charge revenue is expected to increase rapidly as the capital improvement program is undertaken and existing and new homes and businesses are connected to the sewer system. The typical bill for residential accounts is projected to be approximately $40 per month for years 2001-2005. After year 2005, the rate gradually increases every year until it reaches approximately $53 per month in year 2013.
The minimum monthly user charge of $37 will be assessed for those with a winter average of 714 c.f. of water consumption or less. The average is based on water consumption for three of the four winter months - Jan, Feb, Mar, April. The month with the highest consumption is discarded in the calculation of the average. The resulting winter average is the basis for the monthly charge between the months of May of that year and April of the following year. The average is recalculated annually. If a new home without a winter average is connected to sewer, it will be billed based on actual water consumption until a winter average is established. The minimum of $37 will also apply to these customers.
For those property owners who do not wish to sign the license agreement for property access, the responsibility becomes their own to provide a sewer lateral and close their septic tank. This connection must be made within 14 days after receiving notice that the sewer is available for connection. It will also be the property owner's responsibility to obtain proper inspection records of the lateral installation and tank closure. Property owners that chose to install their own lateral will still be required to pay the $2,000 capacity fee.