Information on Rate Increase
June 30, 2021
CBB Water System, Inc. will be increasing water rates effective on our August 31, 2021 billing.
Rates will change as follows:
Monthly Minimum 0 to 2,000 Gallons will go from $23.00 to $25.00.
Each 1,000 Gallons (or portion thereof) 2,000 to 5,000 will go from $6.80 to $7.50.
Each 1,000 Gallons (or portion thereof) over 5,000 will go from $7.50 to $8.20.
Above amounts do not include the $1.00 Safe Drinking Water Fee charged by the State and collected by the System which will remain unchanged.
Factors that lead to the Board of Directors determining the need to increase rates:
The System has been in a break-even situation financially for the past several years; some years posting a slight gain and others a slight loss.
Under a cooperative agreement with the Bossier Parish Policy Jury (BPPJ) the System was loaned the funds necessary to relocate the waterline that was attached to the Linton Road Bridge over Black Bayou. This was accomplished last year by boring a new line under the lake bed. We now must repay this loan to the Parish.
There are outstanding infrastructure projects that must be addressed in the near future to make sure the System can continue to supply safe, high quality drinking water in a reliable manner. The interruption of service we encountered during the past winter’s freeze highlights the need to move forward on these projects. The Board would like to self-fund these projects and not have to borrow any additional money if possible.
Based on the above factors the Board determined there was a need to raise water usage rates to address these issues. The Board contacted the Louisiana Rural Water Association (LRWA) to do a rate study to help determine the best course of action for the System and our members.
The LRWA did perform such a study and their representative met with the Board twice to review the results of the study and look at rate options. The study found that the System was operating at a sustainability rate of only 1%. It was recommended that the Board look at operating at a sustainability rate of between 5% and 10%, which would put the System in line with other rural water systems. The Board unanimously approved a rate increase that would put our sustainability rate in this range.
Other notable information about the System and this Rate Increase.
Requirements contained in Act 444 passed by the Louisiana Legislature during the 2016 Regular Session (House Bill 729) were followed by the System in working through the rate increase process.
The System is a member owned, non-profit organization that has outstanding loans with the USDA in addition to the BPPJ. The USDA has concurred with the need for this increase.
The System has not increased rates in over a decade even in the face of raising costs each year. The System purchases water from Bossier City; the last increase occurred when Bossier City raised their water rates. The current increase assumes no increase in Bossier City's rates in the foreseeable future; however if Bossier City does increase their rates we would have to institute an immediate rate increase to cover the additional cost of water from Bossier.
We are experiencing fairly large price increases in materials, services and supplies spurred by increased inflationary pressure brought about by events related Covid 19 and the shutdowns and other supply chain issues that followed. The Board recognizes that future increases not related to the cost of water from Bossier might also be necessary to remain financially stable. We are hopefully the current increase will hold us for several years.
We are thankful for our members support over the years. We have had challenges in the past, and as a member-owned organization, led by your elected Board members, we have always met those challenges. If you have any questions or concerns about the rate increase or any information contained in this announcement please call our office at (318) 965-0015 and we would be happy to chat with you.
Posted June 30, 2021