2015 RATE NOTIFICATION
March 12, 2015
Dear Ratepayers:
The District held public hearings on February 23rd and March 2nd, 2015, regarding the proposed rate adjustments that will be in
effect starting with the March 15, 2015 billing.
Although the wholesale rate change from 2014 to 2015 is very slight, since 2011 Seattle Public Utilities (SPU) has increased its
wholesale water rates to the District by 13.6%. During the same timeframe, the District has raised its water rates only 5.9%. In
addition, from 2010 through 2014, King County has raised its sewage treatment and disposal charges to the District by 24.7%.
For 2015, the County increased these charges by another 5.6%. During the 2010-2014 timeframe, the District has raised its
rates only 16.1%.
A Comparison of Wholesale and Retail Rate Increases Over Recent Years
2011
2014 Percent
Sewer
2010
King County (single-family
SPU (annual costs in $000)
$4,743 $5,386 13.6%
$63.80
rate)
NUD (discounted singleNUD (discounted single-family
*$69.11 *$73.15
5.9%
$83.60
family bill)
bill)
Water
2014
Percent
$79.58
24.7%
$97.09
16.1%
Using the Consumer Price Index-Urban Users (CPI-U) indices (specific to water and sewer utilities) to calculate the impact of
inflation on rates, the District’s rates have not kept up with inflation from 2002 through 2014:
A Comparison of Retail Water and Sewer Rates with Inflation Adjusted Rates Using CPI-U Indices
Water
2002
2014 Percent
Sewer
2002
2015
NUD: CPI-U Adjusted
*$43.75 $79.95 82.7%
NUD: CPI-U Adjusted
$62.23 $113.72
NUD: Actual
*$43.75 *$73.15 67.2%
NUD: Actual
$62.23
$97.09
Percent
82.7%
56.0%
*All NUD water charges are calculated based on the average bimonthly consumption of 1,500 cubic-feet.
Since the recession started in the late 2000s, through conservative fiscal policies and continuing to draw on reserves, the District
has been able to absorb some of these wholesale rate increases and inflationary impacts rather than pass them all along to its
ratepayers. For example, in 2014 SPU raised its rates to the District by 8.4% and the District did not change its rates at all. In
2010, King County raised its sewer rates by 13.2% and the District absorbed 8.4% of that increase. Economic indicators suggest
that the recession is over, and the District must now raise its rates in 2015.
After considering public input and the District’s funding needs, the District’s Board of Commissioners voted to pass a Rate
Resolution for 2015 which includes the following increases:

Water base rate charges will increase from $27 to $30 per bimonthly billing cycle. In addition, all step rates for water
will increase by $0.25. The discounted rate at the historical average single family usage of 1,500 cubic-feet would be
$79.56.

Single-family residential sewer charges will increase from $102.20 to $113.40 per bimonthly billing cycle. The
discounted rate would be $107.73.
Bimonthly single-family water and sewer rates for 2015 are as follows:
Water Service
Bimonthly Base Charge
Usage Charge per 100 Cubic Feet (CCF):
0 through 10 CCF
11 through 20 CCF
21st CCF and above
Bill for Bimonthly Average Use of 15 CCF
Bill Amount After 5% Early Payment
Discount
$30.00
$3.25
$4.25
$5.25
$83.75
$79.56
Sewer Service
Bimonthly Base Charge
$113.40
Usage Charge per CCF (See Note)
$3.75
Typical Bimonthly Bill
$113.40
Bill After 5% Early Payment Discount
$107.73
Note: The typical single-family home uses 10 CCF in the
winter. The sewer usage charge is assessed based on
bimonthly winter consumption in excess of 15 CCF. For
2014, only 8% of the sewer bills contained a usage
charge.
Accountable Management - Responsible Usage
In addition to retaining its “AAA” credit rating, the District strives to continue its efficient operation. Water and/or sewer districts use
“connections per employee count” to gauge the effectiveness of their operation, and our District has one of the highest such counts
in the state. Charts comparing our rates to neighboring King County water and sewer utilities are included below for your reference.
The sample water and sewer bills below do not include franchise fees charged by, and paid to, the respective cities that impose
such fees on the District. They also do not include the utility tax that some city utilities impose on their own direct service
ratepayers. If you are a City of Kirkland resident, the City’s franchise fee is added as a multiplier to your water and sewer service
rates. Residents of Bothell, Kenmore, and Lake Forest Park will see their respective franchise fees listed as a separate line item on
their water and sewer bills.
Below is a bimonthly water bill comparison, of neighboring providers within King County, at the national industry
benchmark consumption level of 20 CCF for two months. Utility taxes charged by Kirkland and Bothell are not
included, nor are any franchise fees charged by cities. The NUD bill amount is net of the 5% early payment
discount (NUD is the only utility offering such a discount).
Woodinville Woodinville Lake Forest
Water District Water District Park Water
Summer Rate Winter Rate
District
NUD
2015
$99.75
$145.48
$124.42
$113.00
City of
City of
Seattle
Kirkland Summer
Rate
$111.22 $142.20
City of
Bothell
Seattle
Inside
Winter Rate
City
$127.30
$82.32
Bothell
North City
Outside Water District
City
(Shoreline)
$102.90
$116.49
Below is a bimonthly sewer bill comparison, of neighboring providers within King County, using King County’s
standard Equivalent Residential Unit conversion consumption level of 15 CCF for two months. Utility taxes
charged by Kirkland and Bothell are not included, nor are any franchise fees charged by cities. The NUD bill
amount is net of the 5% early payment discount.
Woodinville
NUD
Water
2015
District
$107.73
$138.36
City of
Lake
Forest
Park
$117.24
City of City of
Bothell
Bothell
Kirkland Seattle Inside City Outside City
$149.16 $177.60 $154.88
$193.60
Ronald
Wastewater
District
(Shoreline)
$107.00
As discussed above, NUD has franchise agreements with all cities within its service area; the most notable of which is with the City
of Kirkland. To get a true rate comparison between NUD and the City of Kirkland, you have to consider several factors:

In addition to published rates, the city of Kirkland charges its own direct water and sewer customers a utility tax (water at
13.38%, sewer at 10.5%).

In 2015, NUD is required to pay the city of Kirkland a franchise fee of $2.33 million. In order to recover these costs, NUD
has to charge its Kirkland ratepayers an additional 12.5% on top of its published rates.
The tables below show a comparison of NUD’s vs. Kirkland’s water and sewer rates at different consumption levels:

The average single-family levels of consumption (15 CCF water and 10 CCF sewer).

Both water and sewer at 20 CCF, which is the industry benchmark consumption level.
The Kirkland rates include the respective city utility taxes discussed above. The NUD rates include the effect of the additional
Kirkland franchise fee percentage added to its Kirkland ratepayers, as well as the 5% early payment discount. As you can see,
even with the 12.5% added franchise fee charge to its Kirkland ratepayers, NUD’s rates are still significantly lower than
those which the city of Kirkland charges its own direct water and sewer customers.
Water at 15 CCF of usage
Sewer at 10 CCF of usage
Annualized (6 bimonthly billing periods)
$89.51 $100.19
$121.20 $140.84
$1,264.26 $1,446.18
$10.68
$19.64
$181.92
Kirkland >
NUD
Percentage
11.9%
16.2%
14.4%
Water at 20 CCF of usage
Sewer at 20 CCF of usage
Annualized (6 bimonthly billing periods)
$112.22 $126.10
$141.24 $188.80
$1,520.76 $1,889.40
$13.88
$47.56
$368.64
12.4%
33.7%
24.2%
Bimonthly Bills
NUD
Kirkland
Difference
If you have any question regarding the new rates, please feel free to call us at (425) 398-4400 or email us at [email protected]. Your
elected Commissioners welcome the opportunity to discuss policy or the future directions of the District with you. Please feel free to
contact any of them by phone or email. Contact information is listed on our website: http://www.nud.net.