![]() ![]() Here’s how capital costs are broken down in terms of responsibility:Īccording to House, the operational costs are calculated at the end of each fiscal year and they vary, because they’re based on the corresponding flow to the WRRF from each entity. ![]() “WRRF capital costs are a fixed percentage that do not change with flow and or population,” House explained in an email. Capital costs include things like the purchase of new equipment, replacing roofs on plant buildings, and paying off debt, as when the system borrows from the state’s revolving fund. ![]() Operating costs also include some maintenance costs. Operating costs are the cost of taking care of the material that comes in, needs treatment, and goes out. ![]() To run the WRRF, the system requires revenue (money coming in) for capital and operating costs. There are two main types of cost in providing these services. When we checked with Meridian Township Director of Public Works and Engineering Derek Perry, Perry agreed with House, explaining that the rates on the chart were incorrect, and from two budget cycles ago. The main reason, as explained more below, is that East Lansing is dealing with older infrastructure.īut in his response to us, House noted that the Meridian Township chart did not match the actual rates. According to an analysis by East Lansing Director of Public Works Scott House, in Fiscal Year 2020, for a monthly usage of 5000 gallons of water and sewer flow, Meridian Township residents paid $53.33 while East Lansing residents paid $86.91. And the difference in rates between East Lansing and Meridian is real. Meridian Township, East Lansing and Michigan State University all use the East Lansing Water Resource Recovery Facility (WRRF). In mid-November, an ELi reader shared a chart distributed by Meridian Township in a recent newsletter suggesting that property owners there pay significantly less in rates for sewer and water service than East Lansing property owners. ![]()
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