Title
An Ordinance to Amend Section 2:64 of Chapter 29 (Change Sewer Rates) of Title II of the Code of the City of Ann Arbor (Ordinance No. ORD-18-33)
Memorandum
Your approval is requested to amend Section 2:64 of Chapter 29 of Title II of the Code of the City of Ann Arbor to adjust sewer rates and charges. The rate adjustments for sewer are needed to maintain the fund's financial health given the recent completion of major capital work in the sanitary sewer fund.
In July 1, 2018, a new rate structure was put into place based on a Cost of Service Study to align rates with the cost to serve each customer class. To give customers an opportunity to adjust to the new structure, rate increases were postponed until January 2019 in both the water and sewer fund. Subsequently, the Legislation, R-18-499, "Resolution Directing the City Administrator to Develop and Present to Council by March 31, 2019 a List of Feasible Alternatives to Revise the Recently-Adopted Water Rate Re-structuring Ordinance to Mitigate the Adverse Impacts of the Ordinance on Single-Family Residential Customers" has been passed. Given the timing and review resolved in R-18-499, the Water Supply System Fund revenue requirement has been postponed, and Staff will propose capital and operating expenditure reductions until a review of the water rate structure has been completed.
The sewer rate changes represent an overall revenue requirement rate increase of 7% in the sanitary sewer system to all customer classifications.
The impact of these increases on an average single-family residential customer's utility bill is $6.66 per quarter or $26.64 per year, an effective rate increase of 3.41%, if consumption remains the same. For the purpose of this comparison, the single-family bill is calculated with 18 units per quarter and receives the 10% discount for payment on or before the due date.
Other changes include the numbering of subsections and edits for consistent sentence structure for the ope...
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