Title
An Ordinance to Amend Sections 2:63, 2:64, 2:65 and 2:69 of Chapter 29 (Increase Water, Sewer, and Stormwater Rates and Amend Residential Summer Service Billings) of Title II of the Code of the City of Ann Arbor (Ordinance No. ORD-11-08)
Memorandum
Your approval is requested to amend Sections 2:63, 2:64, 2:65 and 2:69 of Chapter 29 of Title II of the Code of the City of Ann Arbor to adjust water, sewer and stormwater rates due to debt service coverage and capital improvement requirements in all three systems. The amendments will provide revenue increases of 3.36% in water, 4% in sewer and 3.35% in stormwater. In addition, we are recommending changing the base period that is used for setting the summer sanitary sewer calculation to the same period for the entire city. This change in the calculation will make the discount more equitable to the users of the system.
The recommended rate changes in water, sewer and stormwater are projected to increase revenues in water, sewer, and stormwater by $664,993.00, $829,481.00 and $176,915.00 respectively. These rate increases are needed to maintain debt service coverage and to maintain funding for required capital improvements.
The impact of these increases on the single family customer with typical usage is $4.73 per quarter or $18.92 per year, a net increase of 3.2%. The typical single family bill represents 21 units of water usage per quarter, is in the second tier for stormwater and receives the 10% discount for payment on or before the due date.
This ordinance is recommended to take effect ten (10) days after legal publication or on July 1, 2011, whichever is later.
Staff
Prepared by: Marti Praschan, Financial Manager, Public Services
Reviewed by: Sue F McCormick, Public Services Administrator
Body
ORDINANCE NO. ORD-11-08
First Reading : June 6, 2011 Approved: June 20, 2011
Public Hearing : June 20, 2011 Published: June 23, 2011
Effective: July 3, 2011
INCREASE WATER, SEWER AND ST...
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