RUBS
Ratio Utility Billing System
RUBS, the R atio U tility B illing S ystem,
is a method of allocating water and sewer costs to residents of master-metered
multifamily communities. Each resident receives a monthly bill, based
on their pro-rata share of the community's water bill for the previous
month. There are several formulas that can be used to allocate water
costs: 100% on occupancy, 2/3 on occupancy and 1/3 on square footage,
50% on occupancy and 50% on square footage, 100% on square footage,
or flat fee. Following, are examples of how a resident's bill is
calculated using each formula, as well as a description of the pros
and cons of each formula.
For our example, we will calculate John Doe's bill. John Doe's apartment is 1,250 sq ft and has an occupancy factor of 3.4 (1 for the 1 st adult, 0.9 for the 2 nd adult, and 0.75 each for 2 children). The 62-unit community has a total square footage of 72,326 and a total occupancy factor of 87.55. The community's master meter bill was $466.94 for water and $771.95 for sewer. The community will take a 10% management deduction, for the pool and clubhouse, before allocating the costs to the residents.
| 100% on occupancy |
Water$466.94 x 0.9 = $420.25 to be allocated to residents $420.25/87.55 = $4.80011 /occupancy factor John Doe's water bill = 3.4 x $4.80011 = $16.32 |
Sewer$771.95 x 0.9 = $694.76 to be allocated to residents $694.76/87.55 = $7.93558 /occupancy factor John Doe's sewer bill = 3.4 x $7.93558 = $26.98 |
| Pros: ? This is the fairest method of calculating a RUBS billing – the more people in an apartment the more water they use. ? Management recoups the majority of their master meter bill. |
| Cons: ? Management must keep track of how many people are in every apartment. ? Apartments with very high occupancy may have very high bills. |
| 2/3 on occupancy, 1/3 on square footage |
Water$466.94 x 0.9 = $420.25 to be allocated to residents ($420.25 x 0.67)/87.55 = $3.21608 /occupancy factor ($420.25 x 0.33)/72,326 = $0.00192 /sq ft John Doe's water bill = (3.4 x $3.21608) + (1,250 x $0.00192) = $13.33 |
Sewer$771.95 x 0.9 = $694.76 to be allocated to residents ($694.76 x 0.67)/87.55 = $5.31684 /occupancy factor ($694.76 x 0.33)/72,326 = $0.00317 /sq ft John Doe's sewer bill = (3.4 x $5.31684) + (1,250 x $0.00317) = $22.04 |
| Pros: ? Apartments with high occupancy will get a lower bill, because a portion of the master meter bill is distributed to vacant apartments. |
| Cons: ? Management must keep track of how many people are in every apartment. ? Single residents living in a large apartment will get a higher bill than they would with the 100% occupancy formula. ? Management recoups less of the master meter bill, because a portion of it is distributed to vacant apartments. |
| 50% on occupancy, 50% on square footage |
Water$466.94 x 0.9 = $420.25 to be allocated to residents ($420.25 x 0.5)/87.55 = $2.40006 /occupancy factor ($420.25 x 0.5)/72,326 = $0.00291 /sq ft John Doe's water bill = (3.4 x $2.40006) + (1,250 x $0.00291) = $11.80 |
Sewer$771.95 x 0.9 = $694.76 to be allocated to residents ($694.76 x 0.5)/87.55 = $3.96779 /occupancy factor ($694.76 x 0.5)/72,326 = $0.00480 /sq ft John Doe's sewer bill = (3.4 x $3.96779) + (1,250 x $0.00480) = $19.49 |
| Pros: ? Apartments with high occupancy will get an even lower bill, because a greater portion of the master meter bill is distributed to vacant apartments. |
| Cons: ? Management must keep track of how many people are in every apartment. ? Single residents living in a large apartment will get a higher bill than they would with the 2/3 occupancy, 1/3 sq ft formula. ? Management recoups even less of the master meter bill, because a greater portion of it is distributed to vacant apartments. |
| 100% on square footage |
Water$466.94 x 0.9 = $420.25 to be allocated to residents $420.25/72,326 = $0.00581 /sq ft John Doe's water bill = 1,250 x $0.00581 = $7.26 |
Sewer$771.95 x 0.9 = $694.76 to be allocated to residents $694.76/72,326 = $0.00961 /sq ft John Doe's sewer bill = 1,250 x $0.00961 = $12.01 |
| Pros: ? Management doesn't need to keep track of how many people are in every apartment. ? Apartments with high occupancy will get an even lower bill, because a greater portion of the master meter bill is distributed to vacant apartments and calculations are not based on occupancy. |
| Cons: ? This is a less fair method – an apartment with 1 occupant will get the same bill as an apartment with 5 occupants if the apartments are the same size. ? Management recoups even less of the master meter bill, because a greater portion of it is distributed to vacant apartments. |
| Flat Fee |
WaterJohn Doe's water bill = $12.00 |
SewerJohn Doe's sewer bill = $20.00 |
| Pros: ? Management doesn't need to keep track of how many people are in every apartment. ? Management doesn't need to forward a copy of the master meter bill to us. ? Residents know exactly how much their bills will be each month. |
| Cons: ? This is a less fair method – an apartment with 1 occupant will get the same bill as an apartment with 5 occupants. ? If the utility rates increase or the community starts using more water, management may not recoup as much of the master meter bill as they would with a RUBS formula. |
For this example, the utility company bases both water and sewer costs on water consumption. Energy Billing Systems, Inc. will audit your bills and study your local utility's rate schedule to determine the best method to allocate your bills (breaking base fees out separately from usage charges, equally dividing sewer charges amongst all apartments, etc.). EBS can perform studies to determine which RUBS formula will work best for your community or how much to charge for a flat fee, to recoup the most of your master meter bill. Other charges, such as trash or cable TV, may be added to a RUBS billing. EBS complies with all state laws pertaining to RUBS billings.
