Hist and Proj Operating Receipts FY 2011 2 17 2010 - DC Water

. lncrease the rate of main replacement to one percent per year, an engineering best practice that will strengthen our
underground infrastructure.
. Gain long-term cost efficiencies through increased in-house design
The approved FY 2011 budget assumes increases of water and sewer rates from $6.12 per 100 cubic feet (Ccfs) to $6.89 (or $0.77
per 100 cubic feet). This is still less than a penny for a gallon of water! ln addition, the monthly impervious area charge is proposed
to increase from $2.20 per equivalent residential unit (ERU) to $3.45 per ERU and the average residential customer's metering fee
would increase from $2.01 to $3.86 per month under the current proposed rate adjustments. For the average residential customer,
the charges on the monthly bill will increase by $8.00 per month. For low-income customers in the District, the Board has proposed
expansion of the Customer Assistance Program to include a discount on the DC volumetric PILOT and ROW charges appearing on
the bill. lf approved, the total impact to the monthly bill of the average low-income customer using 6.69 Ccfs would be $3.06.
A Budget to Build for the Future
The economic climate has provided both opportunities and challenges. As rates have fallen and cost estimates have decreased, DC
WASA has positioned itself to take advantage and secure real savings for our customers. However, the economy has also had a
significant impact on our ratepayers and the surrounding jurisdictions that form our customer base. As such, we must continue to
make choices that provide exceptional service, but are of good value as well. This includes continuing to assess our internal costs
and processes and make adjustments where possible, choosing projects that offer a positive return on investment, and proactively
maintaining those assets that are most critical to the services that we provide.
ln addition, this budget lays the foundation for strategies that will enhance our region for decades to come. ln committing to the
Long-Term Control Plan and aggressively moving fonruard, we will take a crucial step in restoring the Anacostia and meeting water
quality standards. By funding the digester project, DC WASA will be at the forefront of alternative energy solutions, part of our longterm
climate change reduction strategy. The increase in the pace of main replacements will help curb main breaks and improve the
reliability of the distribution system for millions of customers and end-users. Finally, the implementation of Total Nitrogen Removal
project brings DC WASA to the very limits of technology in treating our water and taking further steps to heal the Chesapeake Bay, a
regional and national treasure.
I look fonryard to leading DC WASA as we continue to improve performance and provide services that benefit residents and the
environment. Since my arrival almost five months ago, it's become apparent that our greatest asset is "WASA Blue", the men and
women who carry out our daily work, under all conditions and in response to whatever challenges may arise. ln approving this
budget, the Board has provided the resources they need to continue carrying out that work to the highest standards. I would like to
thank the Board for its support and able stewardship throughout this long process. I would also like to offer tremendous gratitude to
the Finance and Budget staff, which developed innovative and fonrvard-thinking solutions in response to the challenges that were