The URL can be used to link to this page

Home My WebLink About94-07 OrdinanceRECORD OF ORDINANCES Dayton Legal Blank, Inc. Form No 30043 Ordinance No. 94 -07 Passed . 20 1 AN ORDINANCE AMENDING CHAPTERS 51 AND 52 OF THE CODIFIED ORDINANCES ESTABLISHING USER FEES AND CAPACITY CHARGES FOR THE WATER AND SANITARY SEWER AND WATER SYSTEMS AND DECLARING AN EMERGENCY 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 2008 — 2012 Capital Improvements Program update, it is necessary to amend the fees for the water and sanitary sewer user fees and capacity charges. NOW, XWREFORE, BE IT ORDAINED by the Council of the City of Dublin, State of Ohio, of the elected members concurring that: Section 1 . Section 51.64 of the Codified Ordinances 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: Rate Per 1,000 Cubic Feet Effective Date OM &R Debt Service I Total 01/01/08 $4.993 $3.8571 $8.85 01/01/09 5.275 4.075 1 9.35 (B) The 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: (1) Delaware County's current residential rate, which at January 1, 2008 is a flat fee of $28.72 per month, plus a fifty percent (50 %) Delaware County surcharge. (2) A flat fee of $9.75 per month as a City of Dublin surcharge effective 01/01/08. (3) A flat fee of $10.25 per month as a City of Dublin surcharge effective 01/01/09. 1 (D) 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 51.66 (B) of the Codified Ordinances be amended as follows: Sanitary Sewer Capacity Charges Diameter of Water Tap Effective Date 01/01/08 01/01/09 3 /4" $2,000 $2,100 The capacity charges (tap fees) for the remaining tap sizes are not changed. RECORD OF ORDINANCES Dayton Legal Blank, Inc Form No 30043 1 Ordinance No. 94 -07 Passed Page 2 20. 1 Section 3 . Section 52.06 (A) of the Codified Ordinances be amended as follows: Effective Date Rate er 1 Cubic Feet 01/01/08 $4.30 01/01/09 4.05 Section 4 . Section 52.07 (B) of the Codified Ordinances be amended as follows: Diameter of Water Tap Effective Date 01/01/08 01/01/09 3 /a" $1,700 $1,800 The capacity charges (tap fees) for the remaining tap sizes are not changed. 1 Section 5 . This Ordinance is hereby declared to be an emergency necessary for the immediate preservation of the public peace, health, safety or welfare of the City and for the further reason that the rate structures are recommended to be effective January 1, 2008. Passed this day of t ` rl 'e , 2007. Mayor - Presiding Officer ATTEST: Clerk of Council Office of the City Manager 5200 Emerald Parkway • Dublin, OH 43017 CITY OF DUBLIN Phone: 614- 410 -4400 •Fax: 614 - 410 -4490 Memo To: Members of Dublin City Council (( _ From: Jane S. Brautigam, City ManageLTCa - 6 ►�.tieu�� Date: December 6, 2007 Initiated By: Marsha I. Grigsby, Deputy City Manager /Director of Finance Re: Ordinance No. 94 -07, An Ordinance Amending Chapters 51 and 52 Establishing User Fees and Capacity Charges for the Sanitary Sewer and Water Systems Summary As part of the annual update of the City's Capital Improvements Program (CIP), a financial analysis of the City's Water and Sewer Funds is completed. The Water Fund and Sewer Fund are Enterprise Funds and by definition should be primarily self- supporting. Based on current operations, programmed capital improvements and existing debt service obligations, staff has recommended the user fees and capacity charges for the water and sanitary sewer systems be modified. The recommended modifications were also included in Ordinance No. 90 -07, Revising the Schedule of Fees and Service Charges for City of Dublin Services. As discussed at the CIP workshop, there have been no increases or modifications to the user fees since January 1, 1996 and limited increases for capacity charges (tap fees) since 1996. Since 1996, there have been two increases of $200 each for a 3 /4 " sanitary sewer tap and one increase of $100 for a %" water tap. The Water Fund is currently exceeding our target fund balance of 25% of the historical system value and the Sewer Fund has not reached the target fund balance. Based on the projected systems needs, the Sewer Fund balance is projected to decline significantly over the next five (5) years while the Water Fund is projected to maintain a fund balance between 21% and 28% depending on the amount of debt that is issued for the water tower that is programmed to be constructed in 2008. The Sewer Fund has significant annual debt service payments. The annual debt payment in the amount of $1,350,720 is for the construction of the Upper Scioto West Branch Interceptor and will be made through 2018. In addition to the debt service obligation, annual allocations for the lining and repair of the main sanitary sewer lines in the amount of $850,000 have been programmed for 2007-2012. Based on the projected fund balances, the following adjustments were recommended as part of the CIP update: ■ Reallocate 25 cents per thousand cubic feet (MCF) in user fees from the water system to the sanitary sewer system effective 1/1/08 and 1/1/09. ■ Increase the sanitary sewer system user fees by 25 cents per MCF effective 1/1/08 and 1/1/09. • Increase capacity charges by $100 for a 3 /4 " water tap effective 1/1/08 and 1/1/09. • Increase capacity charges by $100 for a %" sewer tap effective 1/1/09. Memo to City Council re Ord. 94 -07 - User Fees, Capacity Charges Sanitary Sewer and Water Services December 3, 2007 Page Two Implementation of the recommended user fees will result in the following rates per MCF: Based on the average Equivalent Residential Unit (ERU) of 1,100 MCF per month, the average quarterly costs are as follows: Current rate 1/1/08 1/1/09 Water Water Sewer Total Current rate $4.55 $8.35 $12.90 2008 reallocation (.25) .25 - $4.30 $8.60 $12.90 2008 adjustment - .25 .25 $4.30 $8.85 $13.15 2009 reallocation (.25) .25 - $4.05 $9.10 $13.15 2009 adjustment - .25 .25 $4.05 $9.35 $13.40 Based on the average Equivalent Residential Unit (ERU) of 1,100 MCF per month, the average quarterly costs are as follows: Current rate 1/1/08 1/1/09 Water Sewer Total $15.02 $27.55 $42.57 14.19 29.20 43.39 13.36 30.85 44.21 The overall annual increase of 25 cents per MCF results in an average increase per ERU of approximately $3.30 per year in 2008 and 2009. Implementation of the recommended capacity charges will results in the following charges for a 3 /4 tap: Current rate 1/1/08 1/1/09 Water Sewer $1,600 $2,000 1,700 2,000 1,800 2,100 Over the period of 2008 through 2012, these modifications will result in the Water Fund projected 2012 year -end fund balance being approximately $350,000 less than the projections based on the current rate structures and the Sewer Fund projected 2012 year -end fund balance increasing by approximately $1,435,000. The system rate structures will continue to be reviewed as part of the annual CIP updates. It is highly likely that additional modifications and /or increases will be needed in the future. The recommended sewer system user fee adjustments will also apply to the area that is served by Delaware County ( Wedgewood Hill, Campden Lakes and Wedgewood Glen). The slides from the CIP workshop from this past summer are attached for reference. Recommendation It is recommended that Ordinance No. 94 -07 be passed as an emergency at the December 10, 2007 City Council meeting in order for the new rates to be effective on 1/1/08.