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File #: 19-0607    Version: 1 Name: 4/15/19 - Sewer Rates - FY20 Proposed
Type: Ordinance Status: Passed
File created: 4/15/2019 In control: City Council
On agenda: 5/6/2019 Final action: 5/6/2019
Enactment date: 4/15/2019 Enactment #: ORD-19-12
Title: An Ordinance to Amend Section 2:64 of Chapter 29 (Sewer Rates) of Title II of the Code of the City of Ann Arbor (ORD-19-12)
Attachments: 1. ORD-19-12 Briefed and Approved.pdf, 2. ORD-19-12 Briefed.pdf, 3. Sewer Rate Ordinance.pdf

Title

An Ordinance to Amend Section 2:64 of Chapter 29 (Sewer Rates) of Title II of the Code of the City of Ann Arbor (ORD-19-12)

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 increase sewer rates due to the continuing need to recover revenues required for the purposes of debt coverage and increasing operational costs of the sewage disposal system.  In addition, revenue from this rate increase will be utilized for capital expenditures required to maintain and rehabilitate the sewer collection system.

 

The revenue requirement increase of 7% is projected to increase revenues to the Sewage Disposal System by $1,751,566.00.

 

City Customers are billed in conjunction with the water and stormwater utility.  The increase for the sewer portion of a customer’s bill is an estimated $8.00 per quarter, or $32.00 annually.  For the purposes of this comparison, the bill is calculated as a residential customer, with a 5/8 meter, using 18 CCF per quarter.  The early payment discount (10%) is not included in this calculation.

 

This ordinance is recommended to take effect ten (10) days after legal publication or on July 1, 2019, whichever is later.

Staff

Prepared by:                       Marti Praschan, Chief of Staff, Public Services

Reviewed by:  Craig Hupy, Public Services Area Administrator

Approved by:                       Howard S. Lazarus, City Administrator.

Body

(See Attached Ordinance)