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
ORDINANCE NO. ORD-19-12
First Reading: April 15, 2019 Approved: May 6, 2019
Public Hearing: May 6, 2019 Published: May 9, 2019
Effective: July 1, 2019
AN ORDINANCE TO AMEND SECTION 2:64 OF CHAPTER 29 (Water, Sewer and Stormwater Rates) OF TITLE II OF THE CODE OF THE CITY OF ANN ARBOR
The City of Ann Arbor ordains:
Section 1. That Section 2:64 of Chapter 29 of Title II of the Code of the City of Ann Arbor be amended to read as follows:
2:64. - Sewer rates.
(1) The commodity charge for customers in Ann Arbor is $5.55 $5.94per 100 cubic feet (CCF) of water flow, of which $1.611.32 is a user charge for wastewater plant operation, maintenance and replacement, 4826 cents is a user charge for field operation and maintenance of the sewer system, 57 cents is a user charge for system planning and administration, and $3.283.40 is applied toward a portion of capital expenditures and debt on prior capital expenditures. Charges for sewer service provided to Ann Arbor Township, Pittsfield Township and Scio Township shall be as provided per the provisions of their respective wastewater treatment or sewer agreements with the City of Ann Arbor.
(2) Customer charges per quarter are as follows.
|
 ” meter
|
$14.0114.99 |
|
 ” meter
|
14.4115.42 |
|
1" meter |
14.96 16.01 |
|
1 " meter |
17.13 18.33 |
|
2" meter |
19.09 20.43 |
|
3" meter |
49.07 52.50 |
|
4" meter |
55.62 59.51 |
|
6" meter |
59.09 63.23 |
|
8" meter |
70.69 75.64 |
|
10" meter |
75.69 80.99 |
Section 2. That this ordinance shall take effect on January 22, 2019 July 1, 2019 or ten days after the passing of this ordinance.
CERTIFICATION
I hereby certify that the foregoing ordinance was adopted by the Council of the City of Ann Arbor, Michigan at its regular session of May 6, 2019.
(Date)
Jacqueline Beaudry, Ann Arbor City Clerk
Christopher Taylor, Mayor
I hereby certify that the foregoing ordinance received legal publication on the City Clerk’s website on May 9, 2019.
Jacqueline Beaudry, Ann Arbor City Clerk