Bloomfield Township purchases water from the Southeast Oakland County Water Authority (SOCWA) and is a community member of Oakland County's Evergreen-Farmington Sewage Disposal System for sewage services.
Following are new rates, as approved by the Township Board of Trustees, in effect as of June 1, 2020.
||Reduced $0.31 per 1,000 gals
|Ready to Serve Water
||Increased $1.50 per customer (REU), Quarterly
||Increased $0.89 per 1000 gals
|Sewer Ready to Serve
||Increased $2.00 per customer (REU), Quarterly
|Sewer Only Flat Rate
||Increased $29.48, Quarterly
Should you have any questions about these rates, please contact the Department of Public Works at 248-594-2800.
The Township’s water and sewer system began with the construction of the County’s sewer system in 1958 and water was extended later by DWSD in 1964. The Township originally had 3,300 water customers in 1965. By 1995, there were over 14,000 customers and as of 2015, over 15,600 customers. In the early years, the system expanded rapidly with new developments and was supported largely by connection fees for new customers being added to the system. Development and system expansion has greatly decreased in the past twenty years and the system now largely is being funded by the customer charges. These charges have historically relied heavily on the customers with high water usages to generate the revenue needed for the system. In addition to a decline in development, water volumes have also shown historic declines. Water volumes are dependent on customer usage and seasonal precipitation. Over the past 10 years Bloomfield Township's consumption has steadily declined by nearly 25%. This decline mirrors the water use trends of all the customers on the GLWA regional system.
The water and sewer usage rates are billed per 1000 gallons based on the water volumes read on the customer’s water meters. These rates consist of four components: 1) commodity charges, 2) operating expenses, 3) depreciation, and 4) capital projects.
The commodity charges are the largest component, making up approximately 81% of the usage rates. These are the pass through costs from SOCWA for water and from the OCWRC for the sewage treatment. Both agencies are wholesale customers of GLWA and their costs consist largely on what GLWA charges them.
The Township DPW – Water Division is responsible for operating and maintaining the water and sewer system which includes a one million gallon storage reservoir, ten pumping facilities, over 500 miles of pipes along with the attached manholes, hydrants and valves. In addition over 15,000 water meters are read, billed and serviced. Approximately 6% of the usage rates go towards covering part of the Township operating expenses with the remaining expenses covered by Ready to Serve fees (explained below)
The average age of the water and sewer pipes within the Township’s system is 50 years old with some pipes nearly 90 years old. Much of the system is nearing or is beyond half of their useful service life. Depreciation makes up approximately 13% of the usage rates.
The capital component of the rate is used for major repairs and replacements needed for both the water and sewer systems. This allows for capital improvements to be done without selling bonds and increasing the bond debt. This line item was removed from the FY21 rate calculations as revenue for the 2022 water and sewer capital improvement programs will come from the depreciation line item in the variable rate for both water and sewer.
In addition to the usage rate components, there are flat charges, billed per customer, per quarter. These are the Ready To Serve (RTS) and Debt Charges.
Ready To Serve
In 2009, GLWA (formerly DWSD) began applying a monthly flat rate to their water and sewer charges regardless of what water volumes were used. They had determined that 90% of their overall costs do not vary with the water usage. This is known as the “Ready To Serve” (RTS) charge which is widely used in the utility industry for charging customers for the stationary cost of being connected to the system. Township Ready to Serve charges are set to cover 80% of the Township's operation and maintenance costs. The other 20% is collected as a component in the variable rate. This helps to cover some of the costs of the Township’s operating expenses that do not vary with water usage. This includes services such as service appointments, utility staking, meter replacements, engineering, system repairs (water main breaks) and after hour emergency calls. It is a fair way to spread the costs to provide service to all of our customers in an equitable manner.
Debt charges have been in place by Township Ordinances for over 50 years and it is a mechanism for the Township to collect sufficient revenue to cover the bond debt for the water and sewer system.