Title
An Ordinance to Amend Section 2:63 of Chapter 29 (Water Rates) of Title II of the Code of the City of Ann Arbor (Ordinance No. ORD-20-15)
Memorandum
Your approval is requested to amend Section 2:63 of Chapter 29 of Title II of the Code of the City of Ann Arbor to increase water rates for upcoming operating and capital infrastructure investment needs. Rates will help finance the increasing operational costs and increased costs associated with regulation of the water supply system, such as on-going carbon change outs associated with per- and polyfluoroalkyl substances (PFAS). In addition, the revenue requirements driving this increase will be used for capital expenditures required to maintain and rehabilitate the water infrastructure, both in at the water treatment facility and in the distribution system. The financial plan also implores the water fund to begin accumulating fund balance for the impending major rehabilitation at the water treatment plant.
The revenue requirement increase of 6.5% is projected to increase revenues to the Water Supply System by $753,362.00.
City Customers are billed in conjunction with the sewer and stormwater utility. The increase for the water portion of a customer’s bill is an estimated $4.32 per quarter, or $17.28 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.
Staff
Prepared by: Marti Praschan, Chief of Staff, Public Services
Reviewed by: Craig Hupy, Public Services Area Administrator
Approved by: Tom Crawford, Interim City Administrator.
Body
(See Attached Ordinance)