Ordinance 075-15Dayton Legal Blank, Inc.
Ordinance No.
75 -15
RECORD OF ORDINANCES
Form No. 30043
Passed 20
AN ORDINANCE 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 ensure 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 2016 — 2020
Capital Improvements Program update, it is necessary to amend the fees for the
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, 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, 2015 $7.54
$3.56
$11.10
January 1, 2016 $6.81
$4.79
$11.60
January 1, 2017 $6.94
$4.91
$11.85
(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, 2015
$8.28
$3.92
$12.20
January 1, 2016
$7.48
$5.27
$12.75
January 1, 2017
$7.62
$5.38
$13.00
(D) These rates are in addition to the sewer rates charged by 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:
Dayton Legal Blank, Inc.
Ordinance No.
75 -15
RECORD OF ORDINANCES
Rate Per 1,000 Cubic Feet
Effective Date
January 1, 2015 $3.30
January 1, 2016 $3.05
January 1, 2017 $3.05
Form No. 30043
Page 2of2
Passed . 20
Section 3.
This ordinance shall take effect on January 1, 2016 except as otherwise noted for the
portions effective January 1, 2017.
Passed this K,. day of A)o 2015
ayor — 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: Dana L. McDaniel, City Mana r
Date: October 22, 2015
Initiated By: Angel L. Mumma, Director of Finance
Summary
Memo
Re: Ordinance 75 -15 - Amending Chapter 51 and 52 Establishing User Fees and
Capacity Charges for the Sanitary Sewer and Water Systems
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 in the
sewer fund 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. While the Water Fund year-
end balance did not meet the target fund balance, it remains close and is projected to
remain between 20% and 22% 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, with a final payment of
$675,560 in 2018. Additional debt was issued in 2009 in the amount of $2.2 million, $2.5
million in 2012, and $2.5 million in 2015 to finance the lining of existing sanitary sewer
lines and manhole rehabilitation. Additionally, as part of the 2016 — 2020 CIP, $7.9 million
is anticipated to be issued for additional lining of sanitary sewer lines and other sanitary
sewer improvements, as well as extensions to unserved areas. While the debt service on
the extensions will be funded primarily though transfers from the Capital Improvement
Tax Fund and General Fund, the debt service on the maintenance of our existing lines is
funded through the user fees generated from the sewer system.
As part of the CIP workshop, an increase in the sewer surcharge was briefly discussed. At
that time, the projected fund balance took into account the following:
• Effective 1/1/2016, an increase of $0.25 per 1,000 cubic feet in sewer charges;
reallocation of $0.25 per 1,000 cubic feet from water to sewer.
Ordinance 75 -15 - Amending Chapter 51 Establishing User Fees and Capacity Charges for the
Sanitary Sewer System
October 22, 2015
Page 2 of 3
Effective 1/1/2017, an increase of $0.25 per 1,000 cubic feet in sewer charges;
water surcharge is unchanged.
These adjustments are reflected in Ordinance 75 -15, scheduled for first reading on October
26, 2015.
Implementation of the recommended user fees for the Columbus Service Area will result in
the following rates per 1,000 cubic feet:
*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 - 2015
$3.30
$11.10
$14.40
2016 change
0.25
0.50
0.25
January 1, 2016 Surcharge
$3.05
$11.60
$14.65
2017 change
0.00
.25
0.25
January 1, 2017 Surcharge
$3.05
$11.85
$14.90
*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:
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.
W ter
Sewer
T I
Current rate - 2015
$10.89
$36.63
$47.52
January 1 2016
$10.07
$38.28
$48.35
January 1 2017
$10.07
$39.11
$49.18
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.
Sewer - M nthl *
Sewer - QUarterly
Current rate - 2015
$12.20
$36.60
January 1 2016
$12.75
$38.25
January 1 2017
$13.00
$39.00
*These rates are in addition to rates charged by Delaware County.
Ordinance 75 -15 — Amending Chapter 51 Establishing User Fees and Capacity Charges for the
Sanitary Sewer System
October 22, 2015
Page 3of3
The following table displays the estimated fund balance and percentage of system value
over the next five years, based on the recommended increase in sewer fees being
adopted.
Year - ending December 31
Fund Balance
Percentage of System Value
2015
4,672,585
7.6%
2016
3,501,957
6.0%
2017
2 180,844
4.2%
2018
1,761,387
4.2%
2019
1,927,225
5.1%
2020
2,057f 704
6.0%
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.
Recommendation
Staff recommends adoption of Ordinance 75 -15 at the second reading /public hearing on November
2, 2015.