Ordinance 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.