Explanation
Background: This ordinance authorizes an increase in sewer rates effective January 1, 2009 for the Division of Sewerage and Drainage.
The proposed rate configuration for 2009 recognizes that water and sewer charges disproportionately effect lower income groups and increases the Low Income Discount program that discounts participant's sewer commodity portion of their sewer bill from 15% to 20%. This increase in the discount rate will result in an overall rate reduction of -1.88% for a typical inside city customer. This legislation also eliminates receipt of the Homestead Exemption as a qualifier for receiving the Low Income Discount. Qualifying for Homestead Exemption is currently based on age and/or disability. Income was dropped as a qualifier by the State of Ohio and Franklin County in 2007.
Requested adjustments in rates result in a typical inside city residential sanitary sewer rate increase of 6%. When a water increase of 8.5% and a Stormwater increase of 9% are considered the overall impact on a typical residential customer in the City of Columbus is 7.11% and for an outside city residential customer 7.13%.
The proposed rate structure also continues a charge related to each customer's contribution to wastewater flow during periods of wet weather. Since wastewater flow during wet weather directly corresponds to water runoff from impervious area, rates include a charge 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 is assessed based on each property's measured impervious surface area. Each Equivalent Residential Unit (ERU) is based on 2000 sq ft of impervious area. Residents are charged at one ERU per residence. All other customers are charged based on measured impervious area divided by 2000 sq ft to determine an ERU equivalent. This charge is calculated to recover the debt service costs and other expense of all projects related to correcting wet weather overflows. It is also established that no customer will be charged for more than 1000 ERUs. This charge for 2009 is $2.73 per ERU inside city and $1.62 per ERU for outside city customers.
Fiscal Impact: These rate increases will generate approximately $11.5 million in additional revenue in 2009.
Title
To amend Chapter 1147 of the Columbus City Codes 1959, to enact new sanitary sewer service rates for the year beginning January 1, 2009, and to repeal the existing Sections being amended.
Body
WHEREAS, it is necessary to establish new sewer sanitary services rates, effective January 1, 2009, 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 six percent (6%) increase in sanitary sewer rates for 2009 to pay for necessary ongoing operations and needed improvements; and
WHEREAS, in addition to the commodity rates, City Council finds it necessary to continue a sewer surcharge 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 wet weather improvements 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, City of Columbus customers should participate in funding for all of the wet weather projects. Outside customers should not be assessed for combined sewer or priority area projects; 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; delinquencies 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 increasing the discount rate for low income users from 15% to 20% is appropriate to assist those least able to manage the impacts of increased sewer and water rates; 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 discount established are equitable to all of the City's customers; now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That effective January 1, 2009, Section 1147.11 and 1147.19 of the Columbus City Codes, 1959, be and is hereby amended to read as follows:
1147.11 Rate Schedules.
(a) Charges Within Corporate Limits. For the purpose stated in Sections 1147.02 and 147.12 there is hereby charged to each user situated within the corporate limits of the city, having any active sewer connection with the sewerage system of such city or otherwise discharging sewerage, industrial wastes, water or other liquids, either directly or indirectly into the city's sewerage system, sewer charges as hereinbefore provided, and in the amount determinable as follows:
(1) For any such lot, parcel of land, building or premises having any connection with the city's sewerage system or otherwise discharging sanitary sewerage, industrial wastes, water or other liquids, either directly or indirectly into the city's sewerage system, such charge shall be based upon the quantity of water used therein as the same is measured by a water meter or meters there in use, as hereinafter described, and there shall be charged:
The charges as prescribed in the rate schedule as follows: SEE SPREADSHEET ATTACHED
(b) Charges Outside Corporate Limits. For the purpose stated in Sections 1147.02 and 1147.12, there is hereby charged to each user situated outside the corporate limits of the city, having any active sewer connection with the sewerage system of such city or otherwise discharging sewage, industrial wastes, other liquids, either directly or indirectly into the city's sewerage system, sewer charges as hereinbefore provided, and in the amount determinable as follows:
(1) For any such lot, parcel of land, building or premises having any connection with the city's sewerage system or otherwise discharging sanitary sewage, industrial wastes, water or other liquids, either directly or indirectly into the city's sewerage system, such charge shall be based upon the quantity of water used thereon or therein as the same is measured by a water meter or meters there in use, as hereinafter described, and there shall be charged:
The charges as prescribed in the rate schedule as follows: SEE SPREADSHEET ATTACHED
1147.19 Low income discount for commodity charges.
(A) For purposes of this section, "low income residential customer " is defined as a direct residential customer of the city (whether inside the city or outside the city) who is eligible for food stamp benefits, Ohio Medicaid, Low Income Home Energy Assistance (LIHEAP), Home Energy Assistance (HEAP), Ohio Works First, social security disability, public housing benefits, Homestead Exemption or any other state or federal low income assistance program acceptable to the Director.
(B) All low income residential customers may receive a fifteen (15) twenty (20) percent discount on the commodity portion of their sewer bill. This discount will be available to the low residential customer upon application to and approval of the department of public utilities.
(D) Master metered properties are eligible to receive a fifteen (15) twenty (20) percent discount on the commodity portion of their sewer bill if the property owner proves to the satisfaction of the Director that eighty (80) percent or more of the rental units are participants in qualifying programs outlined in 1105.21, (A). If the eighty (80) percent threshold is met, the entire building or complex will be eligible to receive the fifteen (15) twenty (20) percent commodity rate discount. The discount shall be applied to the master meter bill. Property owners must transmit the full benefit of the discount to residents through the resident's utility billing from the property owner or agent.
SECTION 2. That effective January 1, 2009, existing Section 1147.11, (a) and (b) and Section 1147.19, (A), (B) and (D) of Chapter 1147 of the Columbus City Codes, 1959, be and are hereby repealed.
SECTION 3. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.