2011 SERVICE CHARGE INDEX
Page 1
Residential Service Charge Increases Outpace Rate of Inflation for Past Decade
The results of NACWA’s 2011
Service Charge Index
Survey
suggest that utilities continue to fund needed
infrastructure repairs to maintain current levels of
service despite the current economic conditions. In
fact, the 2011
NACWA Index Survey
shows that for the
past ten years in a row, the increase in the average cost
of wastewater services for a single-family residence
has outpaced the rate of inflation as measured by the
Consumer Price Index (CPI) (see
Service Charge Index
vs. Inflation
chart below).
In 2011, the average service charge increased by 5.8
percent, while inflation increased by only 3.2 percent
over the survey period (measured as an average of
inflation for the period 2010-2011). The 5.8 percent
increase was slightly lower than the 6.5 percent
increase predicted in last year’s
Index
, but is still
significant, with the average single family’s annual
cost for wastewater services topping $389.
Customers pay for sewer services in a variety of ways.
Charges may be based on property values, gallons of
water used, on a flat rate, or include some combination
of these values. Because of this variability, the
NACWA Index Survey
uses what the average single-
family residence pays annually as a more consistent
measure for tracking the cost of sewer services over the
years. Sewer service charges (in dollars) are “indexed”
to allow for better comparison. The chart below and
table that follows provide a national snapshot of index
values and sewer service charges since 1985, the base
year for the
Index Survey
. The values for 2011 are
based on the responses from over 178 NACWA
members serving over 105 million people. These
national numbers do not provide the complete story, so
additional information on average service charges by
region can be found on NACWA’s website.
Service Charge Index vs. Inflation
Disclaimer: “The
NACWA Index
strives to use the best available data each year when determining current and historical household charges and trends. These data are intended for comparison purposes only, and are subject to change from one year to the next. While this
document presents the most up-to-date data available, if better data become available in the future, the data presented here may be modified.”
Additional data and information on the NACWA Index, past year’s surveys, and regional summaries of the data from the 2011 NACWA Index are available on NACWA’s website at
www.nacwa.org/utilitymanagement.