Sedona’s sewer rates are going up but not as fast as they could have.

On Sept. 28, the Sedona City Council unanimously approved the new rate increase schedule.

Council also approved a measure aimed at those who own septic systems and undeveloped lots not yet connected to sewer lines.

Council first reviewed a wastewater rate study Jan. 27, Assistant City Manager Alison Zelms said. The final study was accepted and the increases were approved on April 13.

Council’s most recent vote gives property owners some wiggle room after they are notified connection is available.

Capacity Fee

The sewage capacity fee — or the one-time cost to hook up to the city’s system — was earlier recommended for a large increase, but council chose to incrementally increase the fees over five years, Zelms said.

Once the city notifies a real property owner a sewer connection is available, they have 180 days to connect.

Through Jan. 31, 2011, the fee is $5,150. It then raises by 10 to 15 percent at the end of every fiscal year before reaching $8,631 at the end of fiscal year 2013-14.

Afterward, the fee will increase in line with the Construction Cost Index, a rate published in the May edition of the Engineering News Record.

Deferment

When a property owner receives notice of connection availability to a developed parcel, council has created a deferment option for those with a working septic system.

Property owners can defer connection for up to 10 years. A septic system must be inspected by a licensed engineer or septic system installer and written proof must show the system is in working order and not in danger of failure. Septic systems must be inspected at least every five years.

Deferments give property owners who have fully functional septic systems the option of staying with their system rather than having to connect within the 180-day time frame.

“It gives people several options that make the most sense to them right now,” Zelms said.

Property owners can opt to pay the connection fee immediately or wait until the connection is actually made. The financial upside of paying immediately, at least before the end of that fiscal year, is the rate is locked in.

That may be a good fiscal option especially if property owners have to connect soon anyway, Zelms said. Construction rates are also low now.

For example, if a property owner is notified of a connection in fiscal year 2011-12, he or she can pay that year’s hookup fee rate of $5,325. If the property is not physically hooked up until early 2014 — when the rate is $8,631 — the owner does not need to make up the difference, thus saving $3,306.

If the deferred septic system fails, needs major repair or fails inspection, the property owner must connect to the city sewer line within 30 days.

Undeveloped parcels do not require inspection nor deferment.

Sewer Rates

For residential areas, sewer rates are calculated per Equivalent Residential Unit. A single-family home is the base measurement of 1.0 ERUs and is currently charged $37.42 per month.

A home with low-flow toilets and equipment is charged at 0.907 ERUs.

Accessory dwelling units, aka mother-in-law units — are charged at 0.5 ERUs. Multifamily homes are charged 0.855 ERUs per unit.

Rates are scheduled to increase 15 percent per year for fiscal years 2010-11 and 2011-12 and 10 percent for fiscal years 2012-13 through 2014-15.

The 1.0 baseline ERU for fiscal year 2014-15 is expected to be $57.28 per month.

Standby and Non-User Fees

Properties which have deferred connection on septic are charged a Non-User Service Fee of 50 percent the standard rate for a single family home.

Undeveloped parcels are charged a Capacity Standby Fee also 50 percent the standard rate for a single family home.

The current rate at 50 percent is $18.71, which will rise to $28.64 by fiscal year 2014-15.