Are you determining the correct full cost pricing of water in your system? Ideally, water rates reflect the full cost of providing water service today and into the future. That includes covering the full suite of operating and maintenance costs such as salaries, taxes, insurance, utilities, chemicals, lab fees, contracted services, repairs, and depreciation. The full cost also includes debt service payments, capital improvements, and contributions to reserve funds. The full cost of providing water service today and into the future is unique to each system. There is not a standard, per-gallon price across the country. Watch this video to learn more about the full-cost pricing of water.
Source: EFC at UNC Chapel Hill