Title
AN ORDINANCE AMENDING SECTION 1040.01(a) OF THE STREETS, UTILITIES AND PUBLIC SERVICES CODE REVISING WATER RATES FOR THE MUNICIPALITY.
Executive Summary: This ordinance will amend the City's water rates.
Body
Legislative History
Water rates were last adjusted by Ordinance 12-53 and sewer rates were last adjusted by Ordinance No. 11-54. The effective date of the last increase was the July 10, 2012 due date.
Purpose & Explanation
The 2013 Five-Year Plan projected the need for a 5% water rate increase and a $5 monthly capital repairs and replacement fee for water customers. The Water Fund's 2012 customer sales and ending fund balance were better than projected therefore, we are recommending implementing the $5 per month fee but eliminating the 5% rate increase.
The 2013 Five-Year Plan projected the need for a 10% sewer rate increase and a $5 monthly capital repairs and replacement fee for sewer customers. The Sewer Fund's 2012 customer sales and ending fund balance were also better than projected. Council could consider reducing the rate increase to 5% or leave the rate increase at 10% and reduce the amount of the General Fund subsidy to the Sewer Fund.
A 5% increase will raise the base sewer rate from $7.67 to $8.05 per 100 cubic feet and the availability charge will increase from $8.21 to $8.62. The average monthly residential sewer bill for 2012 was $58.68 so the increase would average $2.93 per month. A 10% increase will raise the base rate from $7.67 to $8.44 per 100 cubic feet and the availability charge will increase from $8.21 to $9.93. The average monthly residential sewer bill for 2012 was $58.68 so the increase would average $5.87 per month.
Timing Considerations
At the April 17, 2013 meeting, Council will need to set a public hearing for May 15, 2013 with passage of the ordinance to follow. The increases would not be effective until the July 10, 2013 due date.
Fiscal Impact
X Appropriation Not Required.
Recommendation
Suggested Action
Staff recommends approval of the $5 monthly fee for water and sewer and consideration of a 5% or 10% rate increase in sewer.
Submitted by,
Jeff Knoblauch, Finance Director