Budget and Rates
LOTT's Budget is comprised of two main components: Capital Budget and Operating Budget. The Operating Budget contains all costs necessary to operate LOTT's various facilities and administrative functions. It is funded primarily by monthly service rates. The Capital Budget includes costs necessary to construct new facilities and upgrade, replace, and rehabilitate existing facilities. These projects are developed and scheduled on LOTT's Capital Improvements Plan (CIP). Projects related to existing facilities are funded through monthly service rates and projects related to new capacity are funded through connection fees. The Budget and Capital Improvements Plan are reviewed and updated annually. The monthly service rates and connection fees are evaluated and adjusted annually as part of the budget process.
Comment on the Proposed Budget
The proposed 2015 Operating Budget includes $11.2 million for operations and $8.9 million for debt service. LOTT’s Capital Improvements Plan (CIP) identifies $88 million in projects anticipated through 2020. The 2015 Capital Budget is about 21% of that total, at $18.4 million.
2014 Budget and Capital Improvements Plan
The current Budget and Capital Improvements Plan was approved by the LOTT Board of Directors at the November 13 Board Meeting. The Operating Budget includes $10.8 million for operations and $8.8 million for debt service. LOTT’s Capital Improvements Plan (CIP) identifies $91 million in projects anticipated through 2019. The 2014 Capital Budget is about 24% of that total, at $21.3 million.
Rates and Fees
Wastewater rates consist of monthly service rates and connection fees. Each of these fees is made up of two parts, city fees and LOTT fees, because parts of the wastewater system are owned and maintained by LOTT and parts are owned by the cities of Lacey, Olympia, or Tumwater. LOTT owns the facilities needed for wastewater treatment and production of reclaimed water, as well as the main sewer interceptor pipelines and pump stations that carry wastewater to treatment facilities. The three cities each own the sewer systems in their respective service areas. These systems consist of pipelines and pump stations needed to collect wastewater from individual properties and carry it to LOTT’s main interceptors. More information about current year's fees, and their purpose, is available in the sewer charges fact sheet.
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