Budget and Rates

LOTT's Budget is comprised of two main components: Capital Budget and Operating Budget. The Operating Budget contains all costs necessary to operate LOTT's various facilities and administrative functions. It is funded primarily by monthly service rates. The Capital Budget includes costs necessary to construct new facilities and upgrade, replace, and rehabilitate existing facilities. These projects are developed and scheduled on LOTT's Capital Improvements Plan (CIP). Projects related to existing facilities are funded through monthly service rates and projects related to new capacity are funded through connection fees. The Budget and Capital Improvements Plan are reviewed and updated annually. The monthly service rates and connection fees are evaluated and adjusted annually as part of the budget process.

2013 Budget and Capital Improvements Plan

The 2013 Budget and Capital Improvements Plan was approved by the LOTT Board of Directors at the November 14, 2012, business meeting. The 2013 Operating Budget includes $16.3 million for expenses associated with LOTT’s operations and debt service. LOTT’s Capital Improvements Plan (CIP) identifies $108 million in projects anticipated through 2018. The 2013 Capital Budget is about 35% of that total, at $38.3 million.

The 2013 Budget and Capital Improvements Plan includes an increase in both the monthly service rate and the connection fee, referred to as the Capacity Development Charge. The monthly rate will be increased from the current rate of $33.00 per month to $33.99 per month. This increase is less than the $1.50 increase anticipated as part of a 5-year rate plan that was originally approved by the Board of Directors in 2007. The connection fee, or CDC, will increase from the current rate of $4,519.20 to $4,718.88, to support large-scale capital projects needed to expand treatment capacity.

2013 Rates and Fees

Wastewater rates consist of monthly service rates and connection fees. Each of these fees is made up of two parts – city fees and LOTT fees, because parts of the wastewater system are owned and maintained by LOTT and parts are owned by the cities of Lacey, Olympia, or Tumwater. LOTT owns the facilities needed for wastewater treatment and production of reclaimed water, as well as the main sewer interceptor pipelines and pump stations that carry wastewater to treatment facilities. The three cities each own the sewer systems in their respective service areas. These systems consist of pipelines and pump stations needed to collect wastewater from individual properties and carry it to LOTT’s main interceptors. More information about fees and their purpose is available in the sewer charges fact sheet.