No rate increase this year for BSU member-customers
BONITA SPRINGS, Fla. (Aug. 16, 2011) – The Bonita Springs Utilities board of directors voted to maintain current rates for the utility’s member-customers.
“The steps we have taken to reduce expenses and increase efficiencies are working, and the lack of rain during the first half of the year triggered an increase in water consumption,” said BSU Executive Director Fred Partin. “As a result, the board felt we can maintain service without a rate increase.”
The board could have raised rates by 3.4 percent without the approval of the Bonita Springs City Council. The not-for-profit utility is permitted to raise rates annually based on the U.S. Consumer Price Index. The Bureau of Labor Statistics publishes the Consumer Price Index, a measure of the average change in prices over time of goods and services purchased by households.
During the past year, the utility has taken several steps to strengthen its financial position, including the successful refinancing of utility-system revenue bonds last fall at lower interest rates. BSU also eliminated staff positions, used reserves to decrease bond debt and save interest, capped the utility’s contribution toward employee health insurance and skipped the printing of the annual water conservation calendar.
Bonita Springs Utilities is a not-for-profit water and wastewater utility founded by local citizens in 1971. Today, the member-owned utility serves more than 40,000 homes and businesses in a 60-square-mile area. For more information, visit the BSU website at www.BSU.us.
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