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Ordinance 76-21 To: Members of Dublin City Council From: Dana L. McDaniel, City Manager Date: November 2, 2021 Initiated By: Matthew L. Stiffler, Director of Finance Re: Ordinance 76-21 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 2026 for operating revenues and costs, capital improvement projects, and existing and projected debt service obligations. Consistent with the discussion during the CIP, it was determined that a 3% increase to water user fees and 4% increase to sewer user fees would be recommended to support each fund’s obligations in future years. Ordinance No. 76-21 increases water and sanitary sewer fees by the recommended amounts in 2022. The following table displays water and sewer rates since 1992. $3.25 $13.25 $16.50 $- $2 $4 $6 $8 $10 $12 $14 $16 $18 $20 1992199419961998200020022004200620082010201220142016201820202022Water Sewer Combined Implementation of the recommended user fees for the Columbus Service Area will result in the following rates per 1,000 cubic feet: 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. 76-21 Amending Chapter 51 and 52 Establishing User Fees and Capacity Charges for the Sanitary Sewer and Water Systems November 2, 2021 Page 2 of 2 Water * Sewer * Total Current rate – 2021 $3.15 $12.75 $15.90 2022 change $0.10 (3%) $0.50 (4%) $0.60 New rate – 2022 $3.25 $13.25 $16.50 *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 – 2021 $10.40 $42.08 $52.48 New rate – 2022 $10.66 $43.73 $54.39 The recommended water and 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. Sewer – Monthly * Sewer – Quarterly * Current rate – 2021 $14.00 $42.00 2022 change $0.60 $1.80 New rate – 2022 $14.60 $43.80 *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 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 approval of Ordinance No. 76-21 at the second reading/public hearing on November 15, 2021.