Explanation
This ordinance authorizes an increase in sewer rates effective January 1, 2026 for the Division of Sewerage and Drainage and to amend Chapter 1147 of the Columbus City Codes, 1959.
With the 2026 rates increases for water, sewer, and storm combined -- based on an average residential customer with water use of 20 ccf's per quarter, City of Columbus residents are estimated to see their total bill increase $10.48 per month, or $125.80 per year, which equates to a combined bill increase of 11.72%. Low Income Discount participant's overall bill impact is 11.65%. Outside city customers overall bill impact is 12.88%. Customer's bill impact will vary with usage.
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 Utility Advisory Board, recommends that the Clean River Fee again be increased with an across-the-board rate increase of 8% to continue to allow wet weather construction projects to be paid for by a blend of the Clean River Fee and Commodity Charges. The Department studied the wet weather charge and capital expenditures by planning area from 2010 through 2023 to determine which Blueprint projects only benefit inside-city customers compared to those that benefit both inside-city and outside-city customers. Projects that only impacted water in basements (“WIB”) were considered inside-only. Projects that improved WIBs and addressed designated sanitary relief or sanitary sewer overflows benefit both inside-city and outside-city customers. The analysis showed that 4.5% of Blueprint projects only benefit inside-city customers, and the balance of costs should be shared, which results in an increase to the wet weather charge for outside-city customers in 2026.
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 3% beginning January 1, 2026; an increase of extra strength charges for inside-city and outside-city TKN (Total Kjeldal Nitrogen) by 3% beginning January 1, 2026; an increase of extra strength charges for inside-city and outside-city TSS (Total Suspended Solids) by 13% beginning January 1, 2026.
This ordinance also makes an adjustment to the components of the current sewer fixed charge and revises the charge based on meter size. This revision adjusts the charge to recommended industry standards. The charge will continue to recover billing costs and capital costs. The billing cost portion of the charge is based on cost of service and the capital recovery charge is scaled using standard meter flow capacities.
The proposed rate configuration for 2026 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 Department is also renaming the program the income-qualified discount program. The Board recommends an increase to the percentage of the discount from 25% to 30%. The Department of Public Utilities will also continue the Eligible Senior Customer Discount that waives the monthly sewer service billing charges.
Columbus Water & Power is beginning the process of switching residential water and sewer customers from quarterly billing to monthly billing. This change has been a long-time objective but was recently made possible by our enhanced meter project and state-of-the-art billing platform. The transition will be rolled out by zones over the next two years as the advanced meters are installed. Customers will benefit from this change due to receiving smaller, more manageable water and sewer bills. Smaller, more frequent bills allow customers to better understand their usage patterns and budget easier. This ordinance updates the rate schedules to clarify that residential water and sewer customers pay the same applicable rate whether they are billed monthly or quarterly.
FISCAL IMPACT: These rate increases will generate approximately $20 million in additional revenue in the Sewer Operating Fund in Fiscal Year 2026.
Title
To amend various sections of Chapter 1147 of the Columbus City Codes, to enact new sanitary sewer service rates for the year beginning January 1, 2026; to expand eligibility for low income and eligible senior customer discount programs, to modify the name of the low income discount program, to update wet weather fees, to update the rates schedules to reflect monthly billing, to update meter service charges, to update sewer capacity fees, and to repeal the existing sections being amended.
Body
WHEREAS, it is necessary to establish new sewer sanitary services rates, effective January 1, 2026, 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 an eight percent increase in sewer rates for 2026 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 3% for inside-city and outside-city BOD (Biological Oxygen Demand), 3% for inside-city and outside-city TKN (Total Kjeldal Nitrogen), and 13% for inside-city and outside-city TSS (Total Suspended Solids), starting January 1, 2026; 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 Water Reclamation, requests that sewer system capacity charges be increased to reflect the current cost of service; 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, as well as renaming the program, to assist those least able to manage the impacts of increased sewer and water rates and recognizes that an increase from 25% to 30% will help reduce this financial impact to low income customers; and
WHEREAS, the Utility 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, historically most residential water and sewer customers were billed quarterly based on meter reading and billing process efficiency; and
WHEREAS, with the implementation of widescale installation of advanced meters, Columbus Water & Power can now begin to bill residential water and sewer customers monthly; and
WHEREAS, monthly billing provides customers with a smaller, more frequent and manageable utility bill, which allows them to better manage their household budget and monitor their water usage; and
WHEREAS, it is appropriate to update the residential rate schedules for water and sewer customers to reflect that those customers will pay the same applicable rate whether they are billed monthly or quarterly,
WHEREAS, it has become necessary in the usual daily operation of the Department of Public Utilities to amend Sections 1147.11, 1147.14, 1147.17, and 1147.19 for the public health, safety and welfare; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. City Council finds that the requested changes in sewer rates and charges are equitable and in accordance with cost of service.
SECTION 2. That effective January 1, 2026, Section 1147.11 of the Columbus City Code is hereby amended to read as follows:
SEE ATTACHMENT 1 - Section 1147.11.
SECTION 3. That effective January 1, 2026, Section 1147.14 of the Columbus City Code is hereby amended to read as follows:
SEE ATTACHMENT 1 - Section 1147.14.
SECTION 4. That effective January 1, 2026, Section 1147.17 of the Columbus City Code is hereby amended to read as follows:
SEE ATTACHMENT 1 - Section 1147.17.
SECTION 5. That effective January 1, 2026, Section 1147.19 of the Columbus City Code is hereby amended to read as follows:
SEE ATTACHMENT 1 - Section 1147.19.
SECTION 6. That the sewer rates herein established shall be applicable to all sewer used on or after January 1, 2026.
SECTION 7. That sewer system capacity charges herein established shall be effective on or after April 1, 2026.
SECTION 8. That effective January 1, 2026, existing Sections 1147.11, 1147.14, and 1147.19 of the Columbus City Codes are hereby repealed.
SECTION 9. That effective January 1, 2026, existing Section 1147.17 of the Columbus City Code is hereby repealed.
SECTION 10. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.