1. WQD FEES – FY 2012 The cost of protecting public health and the environment

2. Why Increase Fees? General Revenue (GR) has been cut in recent years and WQD’s share is projected to be reduced to zero by 2016.

3. Why Increase Fees? Cost of employee benefits mandated by legislature (health insurance, retirement, etc.) continues to increase which adds to overall expenditures

4. The Numbers General Revenue has been reduced and WQD’s allocation will be reduced to zero by 2016 DWSRF ARRA funding will be exhausted after 2012 Employee benefit costs continue to rise Federal mandates continue to increase with minimal increase in funding

5. Basis for Increasing Wastewater Workload Clean Water Act Action Plan Data Rule Electronic Report Rule SSO/Wet Weather Rule 316(b) Cooling Water Rule ELGs for Storm Water WET Testing

6. Basis for Increasing Drinking Water Workload Administered by EPA today but transferring to DEQ by 2012: – Stage 2 Disinfection By-Products – Long Term 2 Enhanced Surface Water Treatment Rule – Groundwater Rule Administered by DEQ – Radiological Contaminant Rule – Revised Total Coliform Rule

7. What’s to Come… FEESFEES

8. Eliminating the Funding Gap Wastewater – Added application fees – Revised the pollutant loading portion of the rating sheet – Increased $/point – Pay based on “units” not one highest fee Drinking Water – Fees will be based not only on complexity but population Plan Review – Increases for all permits Operator Certification – Increase certification costs across the board

9. “Leveling the Playing Field” Existing PWS Fee Structure SystemSystem TypePopulation2011 PWS FeeCost per Capita Town AGround Water17112$1,286.57$0.08 Town BSurface Water17783 $5,319.70 $0.30 Town CSurface Water59800060911.04$0.10

10. “Leveling the Playing Field” Proposed Fee Structure SystemSystem TypePopulation2012 PWS FeeCost per Capita Town AGround Water17112$7,758.60$0.45 Town BSurface Water17783$10,209.90$0.57 Town CSurface Water598000$159,375.00$0.27

11. Fee Structure Previous fees based on type of system and source of raw water. Proposed fees are based on type of system, type of treatment and population served. A declining block rate is proposed as follows: Population0-500500-20002000-1000010000-100000>100,000 Cost per Capita$0.750. 600.450.300.25

12. Fee Structure

13. Industrial NPDES Fee Increases Currently the Industrial Permitting Program is subsidized by GR and other revenue. Over time we will reduce the subsidy and therefore a fee increase will be needed to make up the deficit.

14. Industrial NPDES Fee Increases Industry Name FY11FY12FY13FY14FY15FY16 Large Paper Industry 12,374.0015,843.0022,215.0028,233.0028,966.0029,700.00 Power Plant 6,130.007,660.0010,468.0013,120.0013,443.0013,766.00 Agriculture Related Activity 1,465.001,596.002,388.323,136.323,227.003,318.00

16. Municipal NPDES Fee Increases Example City Name FY11FY12FY13FY14FY15FY16 Population > 100,000 39,209.0048,955.0057,228.0060,515.0083,066.00106,207.00 Population > 10,000 5,608.006,320.007,384.007,777.0010,704.0013,678.00 Population < 10,000 1,203.001,450.001,752.001,845.002,540.003,246.00 GR along with other revenue was directed towards keeping fees down However, by 2016 the fee will have to cover all costs due to zero GR

17. Questions