Loading...
HomeMy WebLinkAbout64-09 OrdinanceRECORD OF ORDINANCES Ordinar2ce No. 64-09 Form No. 30043 Passed . 20 AN ORDINANCE AMENDING CHAPTERS 51 AND 52 OF THE DUBLIN CODIFIED ORDINANCES 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 ensure the Water and Sewer Funds (Enterprise Funds) are self-supporting, including the costs of operations, maintenance and repair of the systems (OM&R), debt service obligations and necessary capital replacements; and WHEREAS, based on the financial analysis completed as part of the 2010 - 2014 Capital Improvements Program update, it is necessary to amend the fees for the water and sanitary sewer user fees and capacity charges. NOW, T EREFORE, BE IT ORDAINED by the Council of the City of Dublin, State of Ohio, members of the elected members concurring that: Section 1. Section 51.64 of the Codified Ordinances be amended as follows: (A) The following rate is the charge for sewer service and use and is based on metered consumption of water: Rate Per 1,000 Cubic Feet Effective Date OM&R Debt Service Total January 1, 2010 $5.52 $4.33 $9.85 January 1, 2011 $5.65 $4.45 $10.10 (B) These rates are 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 OM&R Debt Service Total January 1, 2010 $6.08 $4.77 $10.85 January 1, 2011 $6.22 $4.88 $11.10 (D) These rates are 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 be amended to read as follows: (A) The following rates are charges for water service and use and are based on metered consumption of water: Rate Per 1,000 Cubic Feet Effective Date January 1, 2010 $3.80 RECORD OF ORDINANCES Ordinance No. 64-09 Form No. 30043 Passed Page 2 , 20 Section 3. This ordinance shall take effect and be in force on the earliest date permitted by law. Passed this ~~ day of ~~, 2009 Mayor -Presiding Officer ATTEST: Clerk of Council CITY OF DUBLIN., Office of the City Manager 5200 Emerald Parkway • Dublin, OH 43017-1090 Phone: 614-410-4400 • Fax: 614-410-4490 To: Members of Dublin City Council From: Terry Foegler, City Manager-r ~/ Date: October 29, 2009 Initiated By: Marsha Grigsby, Deputy City Manager/Director of Finance Memo Re: Ordinance 64-09, 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 2014 for operating costs, capital improvement projects, and existing and projected debt service obligations. Based on the review and analysis of the operations for both funds, it was determined that adjustments to the user fees were warranted. As discussed during the presentation of the overview information at the CIP workshop, the City has established, for both the Water and Sewer Funds, a target year-end fund balance of 25% of the historical value for each system's capital assets. The Water Fund year-end balance has continued to exceed the target fund balance and is projected to be at or near the target through 2014. The Sewer Fund has not met the target fund balance because of the amount of its annual debt service obligations. The Sewer Fund has significant annual debt service obligations as a result of the construction of the Upper Scioto West Branch Interceptor (USWBI). The debt payment for the USWBI is $1,350,725 per year through 2018. Additional debt is being issued in 2009 in the amount of $2.2 million, and $2 million is programmed to be issued in 2013 to finance the lining of existing sanitary sewer lines. Based on the projected fund balances and the future infrastructure needs of each system, the following adjustments were recommended as part of the CIP workshop discussion and are reflected in Ordinance 64- 09: Reallocate or decrease 25 cents per thousand cubic feet (MCF) in user fees from the water system to the sanitary sewer system effective 1/1/2010. Increase the sanitary sewer user fee by 25 cents per MCF effective 1/1/2010 and 25 cents per MCF effective 1 / 1 /2011. Implementation of the recommended user fees will result in the following rates per MCF: Water Sewer Total Current rate $4.05 $9.35 $13.40 2010 re-allocation (.25) .25 - $3.80 $9.60 $13.40 2010 adjustment - .25 .25 $3.80 $9.85 $13.65 2011 adjustment - .25 .25 $3.80 $10.10 $13.90 Memo re. Ordinance 64-09- Establishing User Fees/Capacity Charges -Water & Sewer October 29, 2009 Page 2 of 2 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 $13.36 $30.85 $44.21 January 1, 2010 $12.54 $32.50 $45.04 January 1, 2011 $12.54 $33.33 $45.87 The overall annual increase of 25 cents per MCF of water used results in an estimated increase per ERU of approximately $3.30 per year in 2010 and 2011. The recommended 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 rate 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 - Monthl Sewer - Quarterl January 1, 2010 $10.85 $32.55 January 1, 2011 $11.10 $33.30 The rate structures for both the water and sanitary sewer systems will continue to be reviewed as part of the annual CII' updates. Based on the need to continue lining the sanitary sewer lines, it is highly likely that additional modifications and/or increases will be needed in the future. Recommendation It is recommended that Ordinance 64-09 be scheduled for a second reading and public hearing on November 16, 2009.