Cost of this major project is $90 million, partially funded by low-cost state loans. Other funding would come from an increase in sewer rates.

The District Board of Directors approved a phased-in rate proposal that raised the typical annual residential to $302 for the 2005-06 tax year, with increases to $342 in 2006-07, $382 in 2007-08, $422 in 2008-09, and $462 in 2009-10.

Non-residential customers pay a proportionate charge based on their water use and the strength (cost to treat) of the wastewater. The percentage non-residential increases each year are, respectively, 15.3 percent, 13.2 percent, 11.7 percent, 10.5 percent and 9.5 percent. The minimum non-residential charge is one service unit, or 1 EDU, the same as for residential service.

The new rates first appeared on county property tax bills in November 2005 and are updated annually.

The District has carefully evaluated alternative projects to control both the initial project cost and long-term operating cost and has considered a number of financing options to minimize the need for rate increases. It has obtained a low-cost state loan to pay a portion of the costs and is pursuing other possible low-cost financial, including long-term revenue bonds, general obligation bonds or certificates of participation. The loans or bonds will be repaid both from connection charges collected from new development and from service charges.