Explanation
This ordinance authorizes an increase in sewer rates effective January 1, 2025 for the Division of Sewerage and Drainage and to amend Chapter 1147 of the Columbus City Codes, 1959.
Requested adjustments in rates result in a typical inside city residential sewer rate increase of 6%. When a water rate increase of 7% and a 1% increase in stormwater rates are considered, the overall impact on a typical residential customer's bill in the City of Columbus is 6.06% and for a typical outside city residential customer, the overall bill impact is 6.49%. Low Income Discount participant's overall bill impact is 6.0%. Outside city customers are not charged stormwater fees. Considering the 2025 rates increases for water, sewer, and storm combined -- based on an average residential customer with water use of 17 ccf's per quarter, City of Columbus residents are estimated to see their total bill increase $13.67 per quarter, or $54.67 per year. City of Columbus residents with a household of four or more with water use of 30 ccf's per quarter are estimated to see their total bill increase $21.41 per quarter, or $85.65 per year.
In 2005, in accordance with Ordinance No.1904-2005, passed November 28, 2005, Council created a Clean River Fee to recover costs of construction of projects necessary to meet the requirements of the two consent orders that mandate elimination of wet weather flow from Combined Sewer Overflows and Sanitary Sewer Overflows. This charge was assessed based on each property's measured impervious surface area. Since 2005, Council has approved across-the-board rate increases, including the Clean River Fee. The Department of Public Utilities, with approval of the Sewer and Water Advisory Board (SWAB), recommends that the Clean River Fee again be increased with an across-the-board rate increase of 6% to continue to allow wet weather construction projects to be paid for by a blend of the Clean River Fee and Commodity Charges.
The proposed rate structure is necessary to continue to address projects related to the two (2) consent orders entered into in 2002 and 2004 mandating the City of Columbus to mitigate wet weather flow from Combined Sewer Overflows (CSO) and Sanitary Sewer Overflows (SSO) and other operating costs and infrastructure improvements.
The Division of Sewerage and Drainage charges some industrial customers an extra strength charge. Extra strength charges are for the treatment of high strength wastewater generated by various industries that require additional treatment processes within the wastewater treatment plants. To stay economically competitive, the Department of Public Utilities is recommending an increase of extra strength charges for inside-city and outside-city BOD (Biochemical Oxygen Demand) by 6% beginning January 1, 2025; an increase of extra strength charges for inside-city and outside-city TKN (Total Kjeldal Nitrogen) by 6% beginning January 1, 2025; an increase of extra strength charges for inside-city and outside-city TSS (Total Suspended Solids) by 6% beginning January 1, 2025.
The ordinance also makes adjustments to the Wastehauler Section rates per Section 1147.11 (f). The rate adjustments include a 6.8% increase for Septic Tank Waste, 4.5% increase for Septic Holding Tank Waste; a 2.1% decrease for Portable Toilet Waste; and a 3.5% decrease for Grid Laden waste.
The Sewer and Water Advisory Board (SWAB) met on October 9, 2024, and after reviewing the Department of Public Utilities' projected expenditures for Fiscal Year 2025, recommends to City Council a 6% increase in sewer rates and extra strength increases for inside-city and outside-city BOD (Biological Oxygen Demand), inside-city and outside-city TKN (Total Kjeldal Nitrogen), and inside-city and outside-city TSS (Total Suspended Solids), starting January 1, 2025.
The proposed rate configuration for 2025 recognizes that water and sewer charges disproportionately affect lower income groups. The Department of Public Utilities will continue the Low Income Discount Programs that discounts participant's sewer commodity portion of their quarterly bill. The Board recommends an increase to the percentage of the discount from 20% to 25% and an increase in the qualifying federal poverty limit from 150% to 200%. The Department of Public Utilities will also continue the Eligible Senior Customer Discount that waives the monthly sewer service billing charges. The Board recommends an increase in the qualifying federal poverty limit from 150% to 200% for this program as well.
In addition to the rate changes, the Division of Sewerage and Drainage is making several other changes to Chapters 1139, 1145, and 1147 of the Columbus City Codes. The Division of Sewerage and Drainage is updating the naming convention of its treatment plants throughout Chapters 1145 and 1147 of the Columbus City Codes. The change from “wastewater treatment” to “water reclamation” more accurately describes the sustainable function of the plants and reflects the evolution across the industry regarding treatment of sanitary and stormwater as an essential resource. In Chapter 1139 of the Columbus City Codes, the Division of Sewerage and Drainage is providing flexibility regarding sewer lateral slopes in Section 1139.01 and is providing clarification regarding separate sewer connections in Section 1139.04.
FISCAL IMPACT: These rate increases will generate approximately $14 million in additional revenue in the Sewer Operating Fund in Fiscal Year 2025.
Title
To amend Chapters 1139, 1145, and 1147 of the Columbus City Codes to enact new sanitary sewer service rates for the year beginning January 1, 2025; to expand eligibility for low income and eligible senior customer discount programs; to update the naming convention of the Division of Sewerage and Drainage plants; to provide flexibility regarding sewer lateral slopes; to provide clarification regarding separate sewer connections; and to repeal the existing sections being amended.
Body
WHEREAS, it is necessary to establish new sewer sanitary services rates, effective January 1, 2025, for sewerage services to properties discharging into the sanitary sewerage system of the City of Columbus in order to recover the cost of rendering said sewerage services for the calendar year; and
WHEREAS, the City of Columbus, Department of Public Utilities, Division of Sewerage and Drainage requests a 6% increase in sewer rates for 2025 to pay for necessary ongoing operations and needed improvements; and
WHEREAS, the City of Columbus, Department of Public Utilities, Division of Sewerage and Drainage recommends extra strength increases of 6% for inside-city and outside-city BOD (Biological Oxygen Demand), inside-city and outside-city TKN (Total Kjeldal Nitrogen), and inside-city and outside-city TSS (Total Suspended Solids), starting January 1, 2025; and
WHEREAS, in addition to the commodity rates, City Council finds it necessary to continue a Clean River Fee to fund the wet weather capital improvement projects required by the Consent Orders with the State of Ohio; and
WHEREAS, City Council finds that the most appropriate way to assess the Clean River surcharge is by correlating the surcharge to the amount of impervious surface, as the factor most closely associated with increased inflow and infiltration is impervious cover from urban development; and
WHEREAS, the City of Columbus, Department of Public Utilities, Division of Sewerage and Drainage recommends wastehauler rate increases of 6.8% increase for Septic Tank Waste, 4.5% increase for Septic Holding Tank Waste; a 2.1% decrease for Portable Toilet Waste; and a 3.5% decrease for Grid Laden waste, starting January 1, 2025; and
WHEREAS, City Council recognizes that increased sewer rates disproportionately impact low income residents. Low income residents already pay a higher percentage of their household income in utility bills, and this percentage would increase with higher rates; and
WHEREAS, City Council further recognizes that past rate increases in the City have demonstrated that increasing rates leads to increased delinquencies among the City's customers; delinquency rates are higher among low income residents. It is well recognized that increased delinquencies are expensive for the City and its customers; and
WHEREAS, City Council finds that continuing the discount rate for low income users is appropriate to assist those least able to manage the impacts of increased sewer and water rates and recognizes that an increase from 20% to 25% will help reduce this financial impact to low income customers; and
WHEREAS, City Council finds that it is appropriate to expand the low income and eligible senior customer discount program from 150% of the poverty level to include customers that have a total income of less than 200% of the poverty level as published by the U.S. Department of Commerce, Bureau of Census; and
WHEREAS, the Sewer and Water Advisory Board has adopted recommendations that are consistent with the rates established in this legislation; and
WHEREAS, City Council finds that the rates and the low income and eligible senior discounts established are equitable to all of the City's customers; and
WHEREAS, City Council finds that it is appropriate to update the references of "wastewater treatment" to "water reclamation" to more accurately describe the sustainable function of the plants and reflect the evolution across the industry regarding treatment of sanitary and stormwater as an essential resource; and
WHEREAS, City Council finds that it is appropriate for the Division of Sewerage and Drainage to provide flexibility in allowing the flattening of lateral slope or installing a single lateral for a multi-unit building; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the existing Sections 1139.01 and 1139.04 of the Columbus City Codes shall be amended effective January 1, 2025 to read as follows:
SEE ATTACHED FILE
SECTION 2.. That the existing Sections 1145.01, 1145.02, 1145.04, 1145.06, 1145.20, 1145.23, 1145.33, 1145.42, 1145.44, 1145.60, 1145.77, and 1145.102 of the Columbus City Codes shall be amended effective January 1, 2025 to read as follows:
SEE ATTACHED FILE
SECTION 3. That the existing Sections 1147.01, 1147.11, 1147.17, and 1147.19 of the Columbus City Codes shall be amended effective January 1, 2025 to read as follows:
SEE ATTACHED FILE
SECTION 4. That the sewer rates herein established shall be applicable to all sewer usage on or after January 1, 2025.
SECTION 5. That effective January 1, 2025, existing Sections 1139.01, 1139.04, 1145.01, 1145.02, 1145.04, 1145.06, 1145.20, 1145.23, 1145.33, 1145.42, 1145.44, 1145.60, 1145.77, 1145.102, 1147.01, 1147.11, and 1147.19, of the Columbus City Codes are hereby repealed.
SECTION 6. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.