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HomeMy WebLinkAboutOrdinance 43-23RECORD OF ORDINANCES Dayton Legal Blank, Inc. Form No. 30043 Ordinance No. 43-23 Passed _, 20 AMENDING CHAPTER 51 AND 52 ESTABLISHING USER FEES AND CAPACITY CHARGES FOR THE SANITARY SEWER AND WATER SYSTEMS WHEREAS, a financial analysis of the City’s Water and Sewer Funds is conducted annually as part of the Capital Improvements Program update; and WHEREAS, the financial analysis is completed to evaluate the water and sewer system rate structure and projected fund balance in the Water and Sewer Funds; and WHEREAS, the City’s goal is to maintain water and sewer rate structures which are adequate to insure the Water and Sewer Funds (Enterprise Funds) are self-supporting, including the costs of operations, maintenance of the systems, debt service obligations and necessary capital replacements; and WHEREAS, based on the financial analysis completed as part of the 2024 — 2028 Capital Improvements Program update, it is necessary to amend the fees for the water systems and sanitary sewer user fees and capacity charges. NOW, THEREFORE BE IT ORDAINED by the Council of the City of Dublin, State of Ohio, __(~ — members of the elected officials concurring: Section 1. Section 51.64 of the Codified Ordinances to be amended to read as follows: (A) — The following rate is the charge for sewer service and use and is based on metered consumption of water for the area of the City served by the City of Columbus: Rate Per 1,000 Cubic Feet Effective Date January 1, 2024 15.17 (B) The rate above is in addition to the sewer rates charged by the City of Columbus. (C) The following rate is the charge for sewer service and use for the area of the City serviced by Delaware County: Flat Rate Per Month Effective Date January 1, 2024 $16.72 (D) Therate above is in addition to the sewer rates charged by the Delaware County. (E) Fees received from use of the sewer system shall be deposited in the Sewer Fund and used for the operation and maintenance of the system, including capital improvements and any related debt service. Section 2. Section 52.06(A) of the Codified Ordinances to be amended to read as follows: (A) — The following rate is the charge for water service and use and is based on metered consumption of water: Rate Per 1,000 Cubic Feet Effective Date January 1, 2024 $3.28 Section 3. EFFECTIVE DATE This ordinance adopting the schedule of fees and service charges shall take effect on January 1, 2024. RECORD OF ORDINANCES Dayton Legal Blank, Inc. Form No. 30043 43-23 Page 2 Ordinance No. Passed , 20 Passed this 23c day of October , 2023 Mayor - Presiding Officer” V Tee Counfil | jo ATTEST: To: Members of Dublin City Council From: Megan O’Callaghan, City Manager Date: October 3, 2023 Initiated By: Matthew L. Stiffler, Chief Financial Officer/Director of Finance Re: Ordinance 43-23 Amending Chapter 51 and 52 Establishing User Fees and Capacity Charges for the Sanitary Sewer and Water Systems Summary A financial review of the City’s Water and Sewer Funds was completed as part of the annual update of the City’s Capital Improvements Program (CIP). The review included financial projections through 2028 for operating revenue and costs, capital improvement projects and existing and projected debt service obligations. Consistent with discussions during the CIP, it was determined that a 1% increase to water user fees and 6% increase to sewer user fees would be recommended to support each fund’s obligations in future years. This includes the construction of three relief sewers planned in the next five-year period: Deer Run Sanitary Sewer System Improvements – Riverview Street Relief Sewer; Avery Road Relief Sewer, and Glick Road Relief Sewer. Currently, the combined total of those projects (programmed over the next five-year CIP period) is $10.675 million. This Ordinance increases water and sanitary sewer fees by the recommended amounts for 2024. Funds will be monitored and future fee increases will be brought forward to City Council on an annual basis. The following table displays water and sewer rates since 2012. Office of the City Manager 5555 Perimeter Center • Dublin, OH 43017-1090 Phone: 614-410-4400 • Fax: 614-410-4490 Memo Memo re. Ordinance No. 43-23 Amending Chapter 51 and 52 User Fees and Capacity Charges for the Sanitary Sewer and Water Systems October 3, 2023 Page 2 of 3 Implementation of the recommended user fees for the Columbus Service Area will result in the following rates per 1,000 cubic feet: Water * Sewer * Total Current rate – 2023 $3.25 $14.31 $17.56 2024 change $0.03 (1%) $0.86 (6%) $0.89 New rate – 2024 $3.28 $15.17 $18.45 *These rates are in addition to rates charged by the City of Columbus. Based on the average Equivalent Residential Unit (ERU) of 1,100 cubic feet of water usage per month, the average quarterly Dublin surcharge costs are estimated as follows: Water Sewer Total Current rate – 2023 $10.66 $47.23 $57.89 2024 change $0.11 (1%) $2.83 (6%) $2.94 New rate – 2024 $10.77 $50.06 $60.83 The recommended water and sanitary sewer system user fee adjustments also apply to the area that is served by Delaware County (Wedgewood Hills, Campden Lakes, and Wedgewood Glen). Delaware County charges a flat rate user charge and the monthly Dublin user charge reflected in the ordinance is based on an ERU of 1,100 cubic feet of water usage per month and the user fee rates per MCF. Sewer – Monthly * Sewer – Quarterly * Current rate – 2023 $15.77 $47.30 2024 change $0.95 (6%) $2.84 (6%) New rate – 2024 $16.72 $50.14 *These rates are in addition to rates charged by Delaware County. The rate structures for both the water and sanitary sewer systems will continue to be reviewed as part of the annual CIP process. Based on the need to continually maintain the sanitary sewer lines and potential service expansions, future user fees and capacity charges will continue to be evaluated to determine the need to adjust rates in the future. Sewer Fund The Sewer Fund currently has debt outstanding for multiple projects in the total principal amount of $16.8 million. Long-term bonds are currently planned for issuance in the total amount of approximately $15.975 million over the next five-year period in conjunction with the approved 2024-2028 Capital Improvements Program. The proposed debt service for capital projects associated with the sanitary sewer system is much more intense than that of the water system over the next five years. It is currently anticipated that $700,000 in sanitary manhole rehabilitation will be expended over the next five-year period, with sanitary sewer lining and repair costing approximately $4.6 million in that same time period. Additionally, improvements such as those necessary for the three Deer Run Relief Sewers will incur costs of more than $10.675 million. The proposed increase in fees is a direct result of the programmed increase in expenditures associated with the debt service costs outlined above. Memo re. Ordinance No. 43-23 Amending Chapter 51 and 52 User Fees and Capacity Charges for the Sanitary Sewer and Water Systems October 3, 2023 Page 3 of 3 Water Fund The Water Fund currently has debt outstanding for multiple projects in the total principal amount of $4.785 million. Long-term bonds are currently planned for issuance in the total amount of approximately $1.505 million over the next five-year period in conjunction with the approved 2024- 2028 Capital Improvements Program. It is currently anticipated that $1.845 million in water line replacement will be expended over the next five-year period, with water line extensions costing approximately $580 thousand in that same time period. The proposed increase in fees is a direct result of the programmed increase in expenditures associated with the debt service costs outlined above. Low Income Water and Sewer Discount Programs The City of Columbus Department of Public Utilities offers a 20% discount on water and sewer consumption charges for qualifying low-income customers. Income requirements are based on federal poverty standards. The attached documents provide program details and the application for the low-income program that must be completed by a customer seeking assistance. Additional information regarding this program can be found at the following link: https://www.columbus.gov/utilities/customers/Utility-Discount-Programs/ RECOMMENDATION: Staff recommends approval of this Ordinance at the second reading/public hearing on October 23, 2023. A 20% discount is available on water and sewer consumption charges for qualifying low-income customers. Income requirements are based on federal poverty stan- dards; please see details inside. To apply, please complete and re- turn the enclosed application with the proper documentation, or apply online at columbus.gov/payassist/. To be eligible for the discount, applicants must have an active City of Columbus water or sewer account for their residence in their name (or spouse's name) and meet at least one of the following requirements: 1) Household income must be less than 150% of the current U.S. Bureau of Cen- sus federal poverty level. You must provide proof of current household income with the following for all household members over 18: • Income tax return • W-2 forms • Benefit letter from Social Security • Pension award statement -OR- 2) Applicant must be currently enrolled in a qualifing low income program. A current letter of participation from one of the follow- ing programs is required: • Food stamp benefits • Ohio Medicaid • Low Income Energy Assistance • Home Energy Assistance (HEAP) • Ohio Works First • Public housing benefits 1) Customers approved for the program will receive a 20% discount on water and sewer usage charges. 2) Discount will not include: meter read- ing, late charges, interest or other asso- ciated fees. 3) Eligibility must be established annual- ly. To maintain eligibility, customer must sign a new application on or before the date of the previous year’s application. 4) If customer becomes ineligible for the discount, Customer Service must be notified as soon as possible, but no later than 30 days after the ineligibility. 5) Falsifying information or failing to notify a change in eligibility status may lead to: • Termination of water service • Recovery of past discounts • Civil and/or criminal sanctions 6) For questions, please contact Cus- tomer Service at 614-645-8276 Monday - Friday 7AM - 6PM, email UtilityLead- Rep@columbus.gov or visit columbus. gov/utilities/. Eligibility Requirements General Information The federal poverty level may be adjusted annually. Call or check out website for current requirements. 1 $21,146 2 $28,016 3 $32,747 4 $41,363 5 $47,765 6 $53,294 7 $58,437 8 $66,311 9 or more $78,579 Household Size 2022 Maximum Income Low Income Water and Sewer Discount Program 2022 ARE YOU 60 OR OLDER? If yes, you may qualify for an additional Senior Discount so please also apply for it.For questions, please contact Customer Service Monday through Friday 7:00 a.m. - 6:00 p.m. at 614-645-8276, emailUtilityLeadRep@columbus.gov or visit www.columbus.gov/utilities/. 2022 WATER AND SEWER DISCOUNT APPLICATION Name:LastFirstMiddleAddress:NumberStreet / RoadApartment #CityStateZip CodePhone: Email Address: ______________________________________________________________Number of people in household: _________Account number (from water bill):_______________________________To be eligible for the low income discount program, applicants must have an active City of Columbus water or sewer account for their residence in their name (or spouse’s name) and must meet at least one of the following requirements:1. You must have a total income of less than 150% of the U.S. Bureau of Census poverty level (see incomelevels on opposite side). You must provide current proof of household income with the following forall household members over 18 (must be dated and include name):• Income Tax Return• W-2 Forms•Benefit Letter from Social Security• Pension Award Statement or2. You must be currently enrolled in a qualifying low income program and provide current letter ofparticipation from one of the following programs (must be dated and include name):•Food Stamp Benefits• Ohio Medicaid• Low Income Energy Assistant (LIHEAP)• Home Energy Assistance (HEAP)• Ohio Works First•Public Housing BenefitsPlease send copies only of the above and this application to: (copies will not be returned)Columbus Department of Public UtilitiesCustomer Service Center910 Dublin RoadColumbus OH 43215Or apply online at columbus.gov/payassist/The information associated with this application has been examined by me, and is, to the best of my knowledge and belief, true, correct and complete.Applicant's signature: _________________________________________________________Date: __________________________Prepared by signature (if different from applicant): _________________________________________