The Case for Shared Water Billing in Greenleaf Community

The Greenleaf Townhome community, with its 39 units, currently operates under a single water meter system, with the HOA paying an average water bill of $1,700 per month. Some homeowners have proposed separating the water connections and implementing individual meters to enable direct billing by the city. This blog evaluates the financial and practical implications of such a transition.

Current Costs

• Average HOA Water Bill: $1,700/month

• Per Unit Share of Water Bill:

This amount is currently included as part of the HOA dues and shared among all homeowners.

Proposed Transition to Individual Water Meters

The transition involves two major costs:

1. Separating the Connections:

• Total Cost: $6,000

• Per Unit Share:

2. Installing Individual Meters:

• Cost per Unit: $1,404

• Total Cost for 39 Units:

3. City Direct Billing:

• Estimated Average Monthly Bill per Unit (including admin fees): $75

Financial Comparison

Current System (Shared Water Billing):

• Monthly Per Unit Cost: $43.59

Proposed System (Individual Billing):

• One-Time Costs:

• Separation of Connections: $153.85

• Meter Installation: $1,404

• Total One-Time Cost per Unit:

• Monthly Costs:

• Direct Water Bill: $75

Cost Over One Year:

• Current System:

• Proposed System:

• First-Year Total (including one-time costs):

Cost Over Five Years:

• Current System:

• Proposed System:

Analysis

The proposed transition to individual meters would still result in a significantly higher financial burden on homeowners. Here’s why:

1. Higher Monthly Costs: The current system costs $43.59 per unit per month, while individual billing would cost $75 per month—a 72% increase.

2. Substantial One-Time Costs: Each homeowner would need to pay $1,557.85 upfront for the transition, a significant financial commitment.

3. Long-Term Expenses: Over five years, homeowners would pay nearly 90% more with individual billing compared to the current shared system.

Conclusion

Switching to individual water meters may offer a sense of control for homeowners, but it comes at a steep financial cost. Homeowners would face increased monthly bills, upfront fees for the transition, and the burden of handling separate billing.

Under the current shared billing system, costs are lower and distributed equitably, making it a more practical and affordable option for the Greenleaf Townhome community. Maintaining the shared system avoids unnecessary expenses and ensures continued financial stability for homeowners.