Loading...
HomeMy WebLinkAboutOrdinance 44-24RECORD OF ORDINANCES BARRETT BROTHERS - DAYTON, OHIO Form 6220S 44-24 Ordinance No. Passed ; 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 current revenues and future expenditures of the water and sewer funds, 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, “L_ 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, 2025 $16.08 (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, 2025 $17.72 (D) The rate 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, 2025 $3.31 RECORD OF ORDINANCES BARRETT BROTHERS - DAYTON, OHIO Form 6220S 44-24 Page 2 Ordinance No. Passed , Section 3. EFFECTIVE DATE This ordinance adopting the schedule of fees and service charges shall take effect on January 1, 2025. Passed this day of Movencbur , 2024 MAS, Mayor - Presiding Officer ATTEST: (Sasa (Aut Clef of Coyncil To: Members of Dublin City Council From: Megan O’Callaghan, City Manager Date: October 29, 2024 Initiated By: Matthew L. Stiffler, Chief Financial Officer/Director of Finance Paul Hammersmith, Director of Engineering/City Engineer Jaime Hoffman, Director of Finance Operations Meghan Murray, Budget Manager Doug Urbancsik, Financial Analyst Re: Ordinance 44-24 Amending Chapters 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 2029 for revenues and costs, capital improvement projects and existing and projected debt service obligations. The fee recommendations necessary to support the proposed water and sanitary sewer capital projects programmed in the 2025-2029 CIP resulted in fees that were significantly higher than those adopted as part of the 2024-2028 CIP. These projects include the following construction and improvements of six relief sewers planned in the next five-year period: • Deer Run Sanitary Sewer System Improvements – o Riverview Street Relief Sewer o Avery Road Relief Sewer o Glick Road Relief Sewer • Muirfield Village Golf Club Relief Sewer • North Fork Indian Run Sanitary Sewer System Improvements - Brand Road Relief Sewer • Sanitary Sewer Extensions - Areas 6A, 6B, 6C and 21 • South Fork Indian Run Sanitary Sewer System Improvements - Post Road Relief Sewer • Sanitary Sewer Extensions - Area 7 The combined total of those projects (programmed over the next five-year CIP period) is $60.0 million. To proceed with the 2025-2029 CIP, a final determination on the resolution of funding for these water and sewer projects will occur in 2025 and be included in the 2026-2030 CIP. Consistent with those discussions during the CIP, a 1% increase in water user fees and a 6% increase in sewer user fees would be recommended to support each fund's obligations in future years, which is consistent with the fees adopted as part of the 2024-2028 CIP. 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. 44-24 Amending Chapter 51 and 52 User Fees and Capacity Charges for the Sanitary Sewer and Water Systems October 29, 2024 Page 2 of 3 The following table displays water and sewer rates since 2013. 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 – 2024 $3.28 $15.17 $18.45 2025 change $0.03 (1%) $0.91 (6%) $0.94 New rate – 2025 $3.31 $16.08 $19.39 *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 – 2024 $10.77 $50.06 $60.83 2025 change $0.11 (1%) $3.00 (6%) $3.11 New rate – 2025 $10.88 $53.06 $63.94 The recommended water and sanitary sewer system user fee adjustments also apply to Delaware County's service area (Wedgewood Hills, Campden Lakes, and Wedgewood Glen). Delaware County charges a flat user fee, 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 – 2024 $16.72 $50.14 2025 change $1.00 (6%) $3.01 (6%) New rate – 2025 $17.72 $53.15 *These rates are in addition to rates charged by Delaware County. The rate structures for 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 Memo re. Ordinance No. 44-24 Amending Chapter 51 and 52 User Fees and Capacity Charges for the Sanitary Sewer and Water Systems October 29, 2024 Page 3 of 3 potential service expansions, future user fees and capacity charges will continue to be evaluated to determine whether rates should be adjusted. Sewer Fund The Sewer Fund currently has debt outstanding for multiple projects in the total principal amount of $17.0 million. Long-term bonds are currently planned for issuance in the total amount of approximately $3.7 million (and $55.8 million currently unfunded) over the next five-year period in conjunction with the approved 2025-2029 Capital Improvements Program. The proposed debt service for capital projects associated with the sanitary sewer system is much more intense than the water system over the next five years. It is currently anticipated that $600,000 in the annual sanitary sewer maintenance program will be expended over the next five- year period, with sanitary sewer lining and repair costing approximately $1.5 million in that same period. Additionally, improvements such as those necessary for the four Deer Run Relief Sewers will incur costs of more than $16.5 million, as well as $41.5 million currently unfunded for the North Fork and South Fork Indian Run sanitary sewer system improvements. During the August CIP work session, alternative funding sources for outstanding sanitary sewer projects were discussed, which currently total $55.8 million. The recommended 6% sewer fee increase stems from the approved 2024-2028 Capital Improvements Program. Enterprise funds are intended to be self-supporting and further in-depth policy discussions will be scheduled in 2025 to discuss additional potential funding sources. Water Fund The Water Fund currently has debt outstanding for multiple projects in the total principal amount of $4.7 million. Long-term bonds are currently planned for issuance in the total amount of approximately $1.9 million over the next five-year period in conjunction with the approved 2025- 2029 Capital Improvements Program. It is currently anticipated that $1.9 million in water line replacement will be expended over the next five-year period, with water tank improvements costing approximately $125,000 in that same period. 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 November 18, 2024. 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): _________________________________________