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HomeMy WebLinkAboutOrdinance 56-11RECORD OF ORDINANCES Dayton Leal Blank. Inc. — i Ordinance No. 56 -11 Passed AN ORDINANCE AMENDING CHAPTER 51 AND 52 ESTABLISHING USER FEES AND CAPACITY CHARGES FOR THE SANITARY SEWER AND WATER SYSTEMS 20 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 2012 — 2016 Capital Improvements Program update, it is necessary to amend the fees for the water and sanitary sewer user fees and capacity charges. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Dublin, State of Ohio, __q_ members of the elected members concurring, that: 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 OM &R Debt Service Total January 1, 2011 $5.65 $4.45 $10.10 January 1, 2012 $5.80 $4.55 $10.35 January 1, 2013 $5.95 $4.65 $10.60 (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, 2011 $6.22 $4.88 $11.10 January 1, 2012 $6.36 $4.99 $11.35 January 1, 2013 $6.50 $5.10 $11.60 (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. RECORD OF ORDINANCES Dxnnn Lceal Blank. N. 56 -11 Parsed Page 2 of 2 I. No. 30043 Ordinam e No. 20 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 January 1, 2012 $3.55 January 1, 2013 $3.30 Sect ion 3. EFFECTIVE DATE This ordinance adopting the schedule of fees and service charges shall take effect on January 1, 2012 except where noted. Therefore, this ordinance shall be in effect on January 1, 2012. Passed this day of l /2- -toh 2011 Mayor - P es,#ing Officer ATTEST: C �s C Clerk of Council Office of the City Manager 5200 Emerald Parkway •Dublin, OH 43017 -1090 Memo CrrY OF DUBLIN- Phone: 614 - 410 -4400 • Fax: 614 - 410 -4490 To: Members of Dublin City Council From: Marsha I. Grigsby, City Manager�� — Date: October 10, 2011 Initiated By: Bryan Thurman, Deputy Director of Finance Melody Kennedy, Financial Analyst Re: Ordinance No. 56 -11, 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 2020 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 it is projected to be at or near the target through 2020. 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 2017 and a final payment of $675,560 in 2018. Additional debt was issued in 2009 in the amount of $2.2 million and $2 million is programmed to be issued in both 2012 and 2015 to finance the lining of existing sanitary sewer lines, improvements to the Deer Run wet well, and manhole rehabilitation. 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 reflected in Ordinance 56 -11: • Effective 1/1/2012 and on 1/1/2013, a reallocation of .25 per thousand cubic feet (MCF) in user charges from water to sewer. Implementation of the recommended user fees for the Columbus Service Area will result in the following rates per MCF: Memo re. Ordinance 56 -11 - Amending Chapter 51 and 52 Establishing User Fees October 10, 2011 Page 2 of 2 * - these rates are in addition to rates charged by the City of Columbus. This re- allocation will result in the water and sewer user in this service area seeing no net increase or decrease. 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 - 2011 $3.80 $10.10 $13.90 2012 re- allocation .25 .25 $45.87 January 1, 2012 Surcharge $3.55 $10.35 $13.90 2013 re- allocation .25 .25 January 1, 2013 Surcharge $3.30 $10.60 $13.90 * - these rates are in addition to rates charged by the City of Columbus. This re- allocation will result in the water and sewer user in this service area seeing no net increase or decrease. 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: 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 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. Water Sewer Total Current rate - 2011 $12.54 $33.33 $45.87 January 1, 2012 $11.72 $34.15 $45.87 January 1, 2013 $10.89 $34.98 $45.87 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 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. * - 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 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 Staff recommends that Ordinance 56 -11 be scheduled for a second reading and public hearing on October 24, 2011. Sewer — Monthly * Sewer — Quarterly January 1, 2011 $11.10 $33.30 January 1, 2012 $11.35 $34.05 January 1, 2013 $11.60 $34.80 * - 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 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 Staff recommends that Ordinance 56 -11 be scheduled for a second reading and public hearing on October 24, 2011.