After recent discussions on utility fees and billing, a more detailed conversation about the breakout of the Osceola utility bill was encouraged. In this update, we hope to further clarify the sections of your customer utility bill and help all Osceola water customers understand the breakout of their utility payments each month.
Rates for city utilities (Sewer and Garbage – highlighted in yellow on the provided sample) are set by the Osceola City Council. Water Works collects sewer and garbage fees for the City of Osceola. This keeps all local utility services on one, convenient and comprehensive monthly statement and reduces cost of postage by not sending out multiple billings. Fees collected for sewer and garbage are returned to the City.
Rates for water use (water and water excise tax – highlighted in blue on the provided sample) are set by the Osceola Water Works Board of Trustees. Each month, Osceola Water Works staff reads customer water meters to determine the amount of water usage at that location. That reading then, is compared to the previous month’s readings and the difference is calculated using the current water rate table. The Osceola water rate table can be found on the Osceola Water Works Web site at: https://osceolawaterworks.com/rates/.
One line item on the utility bill that’s raised questions is the Water Excise Tax. The Water Excise Tax is a tax the State of Iowa requires water works to collect on the sale of water. Osceola Water Works does not retain this tax as it is paid directly back to the State.
More about the Water Excise Tax (WET) can be found on the Iowa Department of revenue web site at https://tax.iowa.gov/WET.