Kennebunk Sewer District rules and regulations

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Town of Kennebunk

Sewer service charges

Sewer service charges for customers of the Kennebunk Sewer District are generally set following a Rate Hearing held in February or March of each year. The total user fee charge is comprised of three parts for residential and commercial full service accounts. The first portion is collected for debt retirement of bonds issued from time to time by the District to finance capital projects. The second is named Support Systems and pays for the fixed operation and maintenance items in each yearly budget. Items such as insurance, building maintenance and repair, and vehicle expenses to name a few. The final part of the user fee bill is entitled Variable Operation and Maintenance Charges. Expenses such as chemicals, a portion of electrical usage and manpower as well as biosolid disposal are some budget items financed by variable O&M charges.

Below is a brief explanation of how the District's Sewer Service Charges are assessed for Residential and Commercial accounts.

Residential Customers
For each residential user those charges will be $112.08 per residential user for Debt Retirement charges, $274.95 per residential user for Support System charges and $.02553 per cubic foot of water used for Variable Operation and Maintenance charges. The number of "users" for each residential account is determined by the number of living units served by that account. Thus, a duplex apartment is counted as two users. Vacant lots will be charged $1.30 per foot of frontage. Ready to serve customers will be charged $112.08 for Debt Retirement charges.

Commercial Customers
For each commercial unit (one unit for each 12,000 cubic feet of water used - with a minimum of 1 unit) those charges will be $112.08 per commercial unit for Debt Retirement charges, $274.95 per commercial unit for Support System charges and $0.02553 per cubic foot of water used for Variable Operation and Maintenance charges.

Impact fees
The Board of Trustees has established an impact fee. Impact Fees are one time charges for new construction or changes of use that result in more wastewater discharged to the public sewer. Funds collected will be used to help defray the costs of a future upgrade to the wastewater treatment facility. On an annual basis, or more often if necessary, the Board of Trustees of the Kennebunk Sewer District reviews and sets the District’s impact fee charges. In the past the Board has calculated its adjustment based on the construction cost index as published by the Engineering News Record. Using that reference there was a 1.3 % increase in construction costs this year. A 1.3% increase to the existing base impact fee charge of $2,635.00 would result in an adjusted base impact fee charge of $2,669.00. From the base impact fee charge all other impact fees for various classifications are determined. Based on the foregoing the Board proposes to adopt a base impact fee of $2,669.00 until they are phased out after March 31, 2010 (see Equity Buy In Fee section below).

COLLECTION SYSTEM IMPACT FEES

Over the years Kennebunk has seen a great deal of growth within the service area of the Kennebunk Sewer District. In anticipation of the growth, the Board of Trustees has commissioned engineering firms to complete studies of three different drainage areas within the District’s service area to determine existing capacities and future shortfalls of system capacities. The intent of the studies is to identify sewer lines and pumping stations that will need to be enlarged as a result of development. An estimate of construction costs for the improvements is part of the studies as well as the 20 year growth in equivalent dwelling units. The information contained in the reports will be used as a basis for a “Collection System Impact Fee” for specific areas within the District’s service area.

In 2006, the Board established the first “Collection System Impact Fee” for the Turnpike Industrial Zone. This followed a study by the Staff of the Kennebunk Sewer District which identified several sewer lines in the Turnpike Industrial Zone as having capacity issues. Subsequent to this discovery, the Board hired an engineering firm to undertake a study of the effected collection system to check the capacity of the lines, estimate the 20 year growth in equivalent units and the construction expense for the collection system improvements. In 2009 the Board set the Collection System Impact Fee at $1960.00 per equivalent dwelling unit in the Turnpike Industrial Zone. In 2010, the Board is proposing that the Turnpike Industrial Zone Impact Fee be adjusted by the 2009 construction cost index as published by the Engineering News Record. A 1.3% increase to the base of the Turnpike Industrial Zone Collection System Impact Fee would increase the fee from $1960.00 to $1985.00 per equivalent unit.

In 2007, the Board also established two additional Collection System Impact Fees for the Route 1 North and Route 1 South using the same approach or format as was used for the Turnpike Industrial Zone. The Route 1 North and Route 1 South Collection System Impact fees were set at $71.00 per equivalent dwelling unit and $108.00 per equivalent dwelling unit respectively in 2009. In 2010, the Board is proposing that the Route 1 North and Route 1 South Collection System Impact Fees be adjusted by the 2009 construction cost index as published by the Engineering News Record. A 1.3% increase to the base of the Route 1 North and Route 1 South Collection System Impact fee would increase the fees from $71.00 and $108.00 to $72.00 and $109.00 per equivalent unit respectively. Based on this information, the Board is proposing to set the Route 1 North and Route 1 South Collection System Impact Fee at $72.00 per equivalent dwelling unit and $109.00 per equivalent dwelling unit respectively.

EQUITY BUY IN FEE
Beginning in the fall of 2008, the Board hired Wright Pierce Engineers to review the existing rate structure of the Treatment Facility Impact Fee and to explore alternative approaches to help provide for the District’s future capital needs. As discussions developed the Equity Buy In Fee method was chosen to replace the existing Facility Impact Fee. The idea behind the fee is based on the fact that the District’s customers have been paying for the capital cost of unused capacity in the system for many years, and that new users should “buy into” the equity that has been developed in the District’s system and paid for by existing users.
Like Impact Fees, Equity Buy In Fees are one time charges for new construction or changes of use that result in more wastewater discharged to the public sewer. Funds collected will be used to help defray the costs of a future upgrade to the wastewater treatment facility and collection systems. The Board of Trustees is proposing to set the base rate of the Equity Buy In Fee at $2,816 for 2010. From the base Equity Buy In Fee charge all other Equity Buy In Fees for various classifications are determined. Beginning on April 1, 2010 Equity Buy In Fees will go into effect and Facility Impact Fees will no longer be charged.

For more information on the Rate Hearing please call the District offices at (207) 985-4741.

You can find more information about rates and fees on our Rules & Regulations page.