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 (Ordinance No. ORD-20-14)
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, such as televising of 20% of the collection system. In addition, revenue from this rate increase will be utilized for capital expenditures required to maintain and rehabilitate the sewer collection system, including significant efforts to line sewer collection pipes as well as the Meter/MTU replacement project.
The revenue requirement increase of 6.5% is projected to increase revenues to the Sewage Disposal System by $1,964,736.00.
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.
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
ORDINANCE NO. ORD-20-14
First Reading: May 4, 2020 Approved: May 18, 2020
Public Hearing: May 18, 2020 Published: May 21, 2020
Effective: July 1, 2020
WATER, SEWER AND STORMWATER RATES
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) T...
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