In July of this year, the University of Virginia’s water and sewer rates increased and will continue to increase until 2021 when the University will pay full city water and sewer rates instead of the reduced rates they have paid since 1981. The bargain rate was the outcome of the U.Va.-City 1981 Water and Sewer Agreement, which “established that water delivered to the University’s water distribution system instead of directly to a University building would only be paid for with 25 percent of the normal retail rate over the wholesale rate of water.”[1] City of Charlottesville Director of Utilities, Lauren Hildebrand, reported to the Cavalier Daily that there was no record as to why the discounted rate was originally initiated.
The rate will rise over the next three years with an increase of 25 percent this year, which equates to $800,000 for the University. Next year, the rates will increase by 50 percent, which will mean an additional $1.5 million, and finally, a 25 percent increase in 2021 will bring the school’s rates to the full rates charged for city water and sewer services. Jason McIlwee, City Utilities Engineering Manager, said that, “In total, the University will pay an additional $3.1 million for both water and sewage services provided by the City of Charlottesville by 2021, based on the University’s past consumption.”[2]
The Cavalier Daily reported that UVA’s annual water use is approximately 60 million cubic feet (450 million gallons). If the University had been charged the current City rate, it would have meant a rate of $64.66 per thousand cubic feet; however, last year, UVA paid only $27.02 with the reduced rate.[3]
In May, the city of Charlottesville had the Municipal and Financial Group Services based in Annapolis, Maryland review its water and waste services, and it was determined that the University was being charged less for water supply and purification than it cost to supply it by the Albemarle County Service Authority. Additionally, efforts to be more conservative in water usage throughout the University has led to an overall decrease in water usage, which Hildebrand and Chris Cullinan, the City’s Director of Finance, referenced as another reason that the rate needed to be adjusted. Less water used means less being charged and, consequently, less revenue for the Albemarle County Service Authority. Cullinan stated, “While that’s great for the environment, it creates some financial issues for the facility.”[4]
According to the Cavalier Daily, when asked if this rate increase would necessitate an increase in tuition or housing, the University did not respond.
[1] Bradford, Emma. “U.Va. Begins Transition to Paying Full-Price Rates for City Water.” The Cavalier Daily, 3 Oct. 2018, www.cavalierdaily.com/article/2018/10/uva-begins-transition-to-paying-full-price-rates-for-city-water.
[2] Bradford, Emma. “U.Va. Begins Transition to Paying Full-Price Rates for City Water.” The Cavalier Daily, 3 Oct. 2018, www.cavalierdaily.com/article/2018/10/uva-begins-transition-to-paying-full-price-rates-for-city-water.
[3] Bradford, Emma. “U.Va. Begins Transition to Paying Full-Price Rates for City Water.” The Cavalier Daily, 3 Oct. 2018, www.cavalierdaily.com/article/2018/10/uva-begins-transition-to-paying-full-price-rates-for-city-water.
[4] Bradford, Emma. “U.Va. Begins Transition to Paying Full-Price Rates for City Water.” The Cavalier Daily, 3 Oct. 2018, www.cavalierdaily.com/article/2018/10/uva-begins-transition-to-paying-full-price-rates-for-city-water.
Photo Credit: Bill Chesney, Flickr