What Does My Utility Bill Pay For?

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Your utility bill includes all the cost components necessary to provide service from the source to your home. The cost components include the following:

Wholesale purchases = The City purchases its drinking water and sends its wastewater for treatment to
the Rivanna Water and Sewer Authority (RWSA). The City purchases natural gas from British Petroleum
(BP). These purchases include the natural resources as well as the operations and infrastructure costs of
providing these resources.

City Operations and Maintenance = These costs include the operating expenses of the City’s utility
divisions. Examples of these costs include salaries and benefits, supplies, materials, and services.

City Infrastructure = Annual debt service cost for bonds issued to build utility infrastructure.

Billing and Meter Reading = City’s cost for reading water and gas meters and producing and collecting
utility bills.

Payment In Lieu Of Taxes (PILOT) = The PILOT is a payment from the utilities to the City’s General Fund. The payment represents the taxes the utilities would pay the City if they were a private company. The PILOT is an expense of the utilities and included in the rates you pay. The PILOT formula for water and wastewater is 6% of prior year budgeted revenues from sales. The PILOT formula for gas is 23% of prior year budgeted expenses less cost of purchasing gas.

Monthly Fee = Fixed costs associated with maintaining utility meters.

For a detailed breakdown of your utility bill, please select which type of utility service you receive from the City: